Document:

Exhibit 4.21

 

Execution
Version

 

 

 

MBIA INSURANCE CORPORATION,

as Policy Provider,

 

JETBLUE AIRWAYS CORPORATION

 

WILMINGTON TRUST COMPANY, 

not in its individual capacity but solely as Subordination Agent 

and

 

WILMINGTON TRUST COMPANY, as Trustee 

under the 

JETBLUE AIRWAYS PASS THROUGH TRUST 2004-2G-1

and

JETBLUE AIRWAYS PASS THROUGH TRUST 2004-2G-2

 

 

INSURANCE AND INDEMNITY AGREEMENT

 

 

JETBLUE AIRWAYS CORPORATION

 

JETBLUE AIRWAYS PASS THROUGH CERTIFICATES, SERIES 2004-2G-1

and

JETBLUE AIRWAYS PASS THROUGH CERTIFICATES, SERIES 2004-2G-2

 

Dated as of November 15, 2004

 

 

 

 

(This
Table of Contents is for convenience of reference only and shall not be deemed
to be part of this Insurance Agreement. 
All capitalized terms used in this Insurance Agreement and not otherwise
defined shall have the meanings set forth in Article I of this Insurance
Agreement.)

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Defined Terms

  	
   

  
	
  Section 1.02

  	
  Other Definitional
  Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS, WARRANTIES
  AND COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Representations and
  Warranties of JetBlue

  	
   

  
	
  Section 2.02

  	
  Covenants of JetBlue

  	
   

  
	
  Section 2.03

  	
  Covenants of the Class
  G Trustees and Subordination Agent

  	
   

  
	
  Section 2.04

  	
  Representations,
  Warranties and Covenants of the Policy Provider

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  THE POLICIES; REIMBURSEMENT;
  INDEMNIFICATION

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Issuance of the
  Policies

  	
   

  
	
  Section 3.02

  	
  Payment of Fees and
  Premium

  	
   

  
	
  Section 3.03

  	
  Reimbursement
  Obligation

  	
   

  
	
  Section 3.04

  	
  Indemnification

  	
   

  
	
  Section 3.05

  	
  Procedure for Payment
  of Fees and Premium

  	
   

  
	
  Section 3.06

  	
  Policy Endorsement

  	
   

  
	
  Section 3.07

  	
  Payment by
  Subordination Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  FURTHER AGREEMENTS

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Effective Date; Term
  of the Insurance Agreement

  	
   

  
	
  Section 4.02

  	
  Further Assurances and
  Corrective Instruments

  	
   

  
	
  Section 4.03

  	
  Obligations Absolute

  	
   

  
	
  Section 4.04

  	
  Assignments;
  Reinsurance; Third-Party Rights

  	
   

  
	
  Section 4.05

  	
  Liability of the
  Policy Provider

  	
   

  

 

i

 

	
  ARTICLE V

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Amendments, Etc

  	
   

  
	
  Section 5.02

  	
  Notices

  	
   

  
	
  Section 5.03

  	
  Severability

  	
   

  
	
  Section 5.04

  	
  Governing Law

  	
   

  
	
  Section 5.05

  	
  Consent to
  Jurisdiction

  	
   

  
	
  Section 5.06

  	
  Consent of the Policy
  Provider

  	
   

  
	
  Section 5.07

  	
  Counterparts

  	
   

  
	
  Section 5.08

  	
  Headings

  	
   

  
	
  Section 5.09

  	
  Trial by Jury Waived

  	
   

  
	
  Section 5.10

  	
  Limited Liability

  	
   

  
	
  Section 5.11

  	
  Entire Agreement

  	
   

  
	
  Section 5.12

  	
  Independent Agreements

  	
   

  
	
  Section 5.13

  	
  Successors and Assigns

  	
   

  

 

ii

 

INSURANCE AND INDEMNITY
AGREEMENT (as may be amended, modified or supplemented from time to time, this “Insurance
Agreement”), dated as of November 15, 2004 (the “Closing Date”), by and among
MBIA INSURANCE CORPORATION, as Policy Provider, JETBLUE AIRWAYS CORPORATION (“JetBlue”),
WILMINGTON TRUST COMPANY, not in its individual capacity but solely as
Subordination Agent (the “Subordination Agent”), and WILMINGTON TRUST COMPANY,
as Class G-1 Trustee (the “Class G-1 Trustee”) and Class G-2 Trustee
(the “Class G-2 Trustee” and, collectively with the Class G-1 Trustee, the
“Class G Trustees” and each a “Class G Trustee”).

 

W I T N E S S E T H:

 

WHEREAS, JetBlue intends
to finance (or refinance) the acquisition of fifteen Aircraft through separate
secured loan Transactions in which JetBlue will own the Aircraft;

 

WHEREAS, on the date of
the financing or refinancing of an Aircraft, JetBlue will issue pursuant to an
Indenture, on a recourse basis, three series of Equipment Notes to finance or
refinance a portion of the purchase price of such Aircraft;

 

WHEREAS, each Trustee
under each of the Trust Agreements, will create the Trusts, which will acquire
the Equipment Notes;

 

WHEREAS,
(i) Landesbank Baden-Württemberg, as Primary Liquidity Provider, has
entered into three Primary Liquidity Facilities, one for the benefit of the
Class G-1 Certificateholders, one for the benefit of the Class G-2
Certificateholders and one for the benefit of the Class C Certificateholders,
with the Subordination Agent, as agent for each Trustee on behalf of each
Trust, (ii) Citibank, N.A., as Above-Cap Liquidity Provider, has entered into
three separate confirmations to the ISDA Master Agreement, one for the benefit
of the Class G-1 Certificateholders, one for the Benefit of the Class G-2
Certificateholders, and one for the benefit of the Class C Certificateholders,
with the Subordination Agent, as agent for each Trustee on behalf of each
Trust, and (iii) the Trustee of each Trust, the Primary Liquidity
Provider, the Above-Cap Liquidity Provider, the Policy Provider and the
Subordination Agent have entered into the Intercreditor Agreement;

 

WHEREAS, pursuant to each
Trust Agreement, a separate Trust has been created to facilitate the sale of
the Certificates;

 

WHEREAS, the Policy
Provider has issued two separate Policies, one in respect of the Class G-1
Certificates and one in respect of the Class G-2 Certificates, pursuant to
which it has agreed to guarantee the payment of interest to the Subordination
Agent for the benefit of the applicable Class G Trustee and the applicable
Class G Certificateholders and the payment of principal of the applicable
Class G Certificates on the Final Distribution Date for each Class of
Class G Certificates and as otherwise provided therein; and

 

WHEREAS, each of JetBlue,
the Class G Trustees and the Subordination Agent has agreed to undertake
certain obligations in consideration for the Policy Provider’s issuance of the
Policies;

 

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein contained, the
parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01     Defined
Terms.  Unless the context clearly
requires otherwise, all capitalized terms used but not defined herein shall have
the respective meanings assigned to them in the Intercreditor Agreement or, if
not defined therein, in the Policies described below.  For purposes of this Insurance Agreement, the
following terms shall have the following meanings:

 

“Act” means Part A
of subtitle VII of title 49, United States Code.

 

“Aircraft” means
any aircraft which is or will be part of the Collateral.

 

“Airframe” means
any airframe which is or will be part of the Collateral.

 

“Bankruptcy Code”
means the United States Bankruptcy Code, 11 U.S.C. Section 101 et  seq.

 

“Base Rate” means
the fluctuating rate of interest as published from time to time in the New
York, New York edition of The Wall Street Journal,
under the caption “Money Rates” as the “prime rate,” the Base Rate to change
when and as such published prime rate changes.

 

“Citizen of the United
States” is defined in Section 40102(a)(15) of the Act and in the FAA
Regulations.

 

“Class G
Certificateholders” means either of the Class G-1 Certificateholders or
Class G-2 Certificateholders, as applicable.

 

“Class G
Certificates” means either of the Class G-1 Certificates or Class G-2
Certificates, as applicable.

 

“Class G Trust”
means either of the Class G-1 Trust or Class G-2 Trust, as applicable.

 

“Class G Trust
Agreement” means either of the Class G-1 Trust Agreement or the
Class G-2 Trust Agreement, as applicable.

 

“Class G-1
Certificates” has the meaning given such term in the related Policy.

 

“Class G-1
Certificateholder” has the meaning given such term in the related Policy.

 

“Class G-1 Trust”
has the meaning given such term in the related Policy.

 

2

 

“Class G-2
Certificates” has the meaning given such term in the related Policy.

 

“Class G-2
Certificateholder” has the meaning given such term in the related Policy.

 

“Class G-2 Trust”
has the meaning given such term in the related Policy.

 

“Collateral” means
the “Collateral” as defined in any Indenture with respect to an Aircraft.

 

“Delivery Date”
means with respect to each Participation Agreement, the “Closing Date” as
defined or to be defined in such Participation Agreement.

 

“Engine” means any
engine which is or will be part of the Collateral.

 

“Expenses” means
any and all liabilities, obligations, losses (other than losses from non-reimbursement
of amounts paid by the Policy Provider under each Policy), damages,
settlements, penalties, claims, actions, suits, costs, out of pocket expenses
and disbursements (including, without limitation, reasonable fees and
disbursements of legal counsel, accountants, appraisers, inspectors or other
professionals, and costs of investigation).

 

“Event of Loss”
means, with respect to an Aircraft, any Event of Loss defined or to be defined
in the Indenture related to such Aircraft.

 

“FAA” means the
Federal Aviation Administration of the United States of America or any
Government Entity succeeding to the functions of such Federal Aviation
Administration.

 

“FAA Filed Documents”
with respect to each Aircraft, has the meaning given such term in the related Participation
Agreement.

 

“Final Dissolution
Date” means following the occurrence of a Triggering Event, the
Distribution Date next succeeding the date of receipt by the Subordination
Agent of the proceeds of the sale of the last Aircraft (or the related Equipment
Notes) then subject to the Lien of any Indenture.

 

“Final Distribution
Date” means the date which is the earlier of the (i) Final Legal
Distribution Date or (ii) Final Dissolution Date.

 

“Final Legal
Distribution Date” means (i) for the Class G-1 Certificates, the Regular
Distribution Date in February 2018 and (ii) for the Class G-2 Certificates, the
Regular Distribution Date in May 2018.

 

“Financing Statements”
means collectively, UCC-1 (and, where appropriate, UCC-3) financing statements
covering in respect of each Aircraft, the related Collateral, executed (or
otherwise authorized) by JetBlue, as debtor, showing Mortgagee as secured
party, for filing in Delaware and each other jurisdiction in which such filing
is made.

 

3

 

“GAAP” means
generally accepted accounting principles as set forth in the statements of
financial accounting standards issued by the Financial Accounting Standards
Board of the American Institute of Certified Public Accountants, as such
principles may at any time or from time to time be varied by any applicable
financial accounting rules or regulations issued by the SEC and, with respect
to any Person, shall mean such principles applied on a basis consistent with
prior periods except as may be disclosed in such Person’s financial statements.

 

“Government Entity”
means (a) any federal, state, provincial or similar government, and any
body, board, department, commission, court, tribunal, authority, agency or
other instrumentality of any such government or otherwise exercising any
executive, legislative, judicial, administrative or regulatory functions of
such government or (b) any other government entity having jurisdiction
over any matter contemplated by the Operative Agreements or relating to the
observance or performance of the obligations of any of the parties to the
Operative Agreements.

 

“Indemnification
Agreement” means the Indemnification Agreement, dated as of November 9,
2004 among the Policy Provider, JetBlue and the Underwriters.

 

“Insurance Agreement”
has the meaning given such term in the initial paragraph hereof.

 

“Intercreditor
Agreement” means the Intercreditor Agreement, dated as the date hereof by
and among Wilmington Trust Company, as Trustee under each Trust, the Primary
Liquidity Provider, the Above-Cap Liquidity Provider, the Subordination Agent
and the Policy Provider.

 

“Investment Company
Act” means the Investment Company Act of 1940, including, unless the
context otherwise requires, the rules and regulations thereunder, as amended
from time to time.

 

“Lien” means any
mortgage, pledge, lien, charge, encumbrance or security interest affecting the
title to or any interest in property.

 

“Material Adverse
Change” means, in respect of any Person as at any date, a material adverse
change in the ability of such Person to perform its obligations under any of
the Operative Agreements to which it is a party as of such date, including any
material adverse change in the business, financial condition, results of
operations or properties of such Person on a consolidated basis with its
subsidiaries which might have such effect.

 

“Moody’s” means
Moody’s Investors Service, Inc., and any successor thereto.

 

“Mortgagee” with
respect to each Aircraft means Wilmington Trust Company in its capacity as Loan
Trustee under the related Indentures.

 

“Offering Document”
means the Prospectus Supplement dated November 9, 2004 together with the
Prospectus dated November 4, 2004.

 

4

 

“Operative Agreements”
means this Insurance Agreement, each Policy, the Indemnification Agreement, the
Intercreditor Agreement, each Participation Agreement, each Indenture, the Note
Purchase Agreement, the Series G-1 Equipment Notes, the Series G-2 Equipment
Notes, the Class G-1 Certificates, the Class G-2 Certificates, the
Primary Liquidity Facilities for the Class G Certificates, the Above-Cap
Liquidity Facilities for the Class G Certificates, the Escrow and Paying Agent
Agreements relating to the Class G-1 Certificates and the Class G-2
Certificates, respectively, the Deposit Agreements relating to the Class G-1
Certificates and the Class G-2 Certificates, respectively, the Class G-1
Trust Agreement, the Class G-2 Trust Agreement and the Policy Fee Letter,
together with all exhibits and schedules included with any of the foregoing.

 

“Permitted Liens”
has the meaning given to such term in the Indenture.

 

“Person” means an
individual, joint stock company, trust, unincorporated association, joint
venture, corporation, business or owner trust, partnership or other
organization or entity (whether governmental or private).

 

“Policy” means (i)
for the Class G-1 Certificates, the Financial Guaranty Insurance Policy
No. 45243, together with all endorsements thereto, issued by the Policy
Provider in favor of the Subordination Agent, for the benefit of the
Class G-1 Certificateholders as each of the same may be amended from time
to time in accordance with the terms of the Intercreditor Agreement and (ii)
for the Class G-2 Certificates, the Financial Guaranty Insurance Policy
No. 45256, together with all endorsements thereto, issued by the Policy
Provider in favor of the Subordination Agent, for the benefit of the
Class G-2 Certificateholders as each of the same may be amended from time
to time in accordance with the terms of the Intercreditor Agreement.

 

“Policy Fee Letter”
means the fee letter, dated as of November 15, 2004 from the Policy Provider to
JetBlue and the Subordination Agent setting forth the Premium (as defined
therein) and certain other amounts payable in respect of the Policies.

 

“Policy Provider”
means MBIA Insurance Corporation, or any successor thereto, as issuer of each
Policy.

 

“Policy Provider
Information” means the information set forth under the caption “Description
of the Policy Provider” in the Offering Document including information set
forth in the documents incorporated by reference therein.

 

“S&P” means
Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and any successor thereto.

 

“SEC” means the
Securities and Exchange Commission of the United States of America, or any
successor thereto.

 

“Section 1110”
means 11 U.S.C. § 1110 of the Bankruptcy Code or any successor or
analogous section of the federal bankruptcy law in effect from time to time.

 

5

 

“Securities Act”
means the Securities Act of 1933, including, unless the context otherwise
requires, the rules and regulations thereunder, as amended from time to time.

 

“Security” means a
“Security” as defined in Section 2(1) of the Securities Act.

 

“Series G-1 Equipment
Notes” means the floating rate Series G-1 Equipment Notes issued pursuant
to any Indenture by JetBlue and authenticated by the Loan Trustee thereunder,
and any Equipment Notes issued in exchange therefor or replacement thereof
pursuant to the terms of such Indenture.

 

“Series G-2 Equipment
Notes” means the floating rate Series G-2 Equipment Notes issued pursuant
to any Indenture by JetBlue and authenticated by the Loan Trustee thereunder,
and any Equipment Notes issued in exchange therefor or replacement thereof
pursuant to the terms of such Indenture.

 

“Transactions”
means the transactions contemplated by the Operative Agreements, including the
transactions described in the Offering Document.

 

“Trust Property”
with respect to any Trust, has the meaning given in the Trust Agreement for
such Trust.

 

“UCC” means the
Uniform Commercial Code as in effect in any applicable jurisdiction.

 

“Underwriting
Agreement” means the Underwriting Agreement, dated November 9, 2004 among
the Underwriters and JetBlue, relating to the purchase of the Certificates by
the Underwriters, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

“U.S. Air Carrier”
means any United States air carrier that is a Citizen of the United States
holding an air carrier operating certificate issued by the Secretary of
Transportation pursuant to the Act for aircraft capable of carrying 10 or more
individuals or 6,000 pounds or more of cargo, and as to which there is in
force an air carrier operating certificate issued pursuant to Part 121 of the
FAA Regulations, or which may operate as an air carrier by certification or
otherwise under any successor or substitute provisions therefor or in the
absence thereof.

 

Section 1.02     Other
Definitional Provisions.  The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this
Insurance Agreement shall refer to this Insurance Agreement as a whole and not
to any particular provision of this Insurance Agreement, and Section,
subsection, Schedule and Exhibit references are to this Insurance Agreement
unless otherwise specified.  The meanings
given to terms defined herein shall be equally applicable to both the singular
and plural forms of such terms.  The
words “include” and “including” shall be deemed to be followed by the phrase “without
limitation.”

 

6

 

ARTICLE II

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

Section 2.01     Representations
and Warranties of JetBlue.  JetBlue
represents and warrants as of the Closing Date and as of each Delivery Date as
follows:

 

(a)                                  Organization;
Qualification.  JetBlue is a
corporation duly incorporated, validly existing, in good standing under the
laws of the State of Delaware and has the corporate power and authority to
conduct its business in which it is currently engaged and to own or hold under
lease its properties and to enter into and perform its obligations under the
Operative Agreements to which it is a party as of such date.  JetBlue is duly qualified to do business as a
foreign corporation in good standing in each jurisdiction in which the nature
and extent of the business conducted by it, or the ownership of its properties,
requires such qualification, except where the failure to be so qualified would
not give rise to a Material Adverse Change to JetBlue.

 

(b)                                 Corporate
Authorization.  JetBlue has taken, or
caused to be taken, all necessary corporate action (including, without
limitation, the obtaining of any consent or approval of stockholders required
by its certificate of incorporation or by-laws) to authorize the execution and
delivery of each of the Operative Agreements to which it is a party as of such
date, and the performance of its obligations thereunder.

 

(c)                                  No
Violation.  The execution and
delivery by JetBlue of the Operative Agreements to which it is a party as of
such date, the performance by JetBlue of its obligations thereunder and the
consummation by JetBlue of the Transactions contemplated thereby, do not and
will not (a) violate any provision of the certificate of incorporation or
by-laws of JetBlue, (b) violate any law, regulation, rule or order
applicable to or binding on JetBlue or (c) violate or constitute any
default under (other than any violation or default that would not result in a
Material Adverse Change to JetBlue), or result in the creation of any Lien
(other than Permitted Liens) upon the Aircraft under, any indenture, mortgage, chattel
mortgage, deed of trust, conditional sales contract, lease, loan or other
material agreement, instrument or document to which JetBlue is a party or by
which it or any of its properties is bound.

 

(d)                                 Approvals.  The execution and delivery by JetBlue of the
Operative Agreements to which it is a party as of such date, the performance by
JetBlue of its obligations thereunder and the consummation on such date by
JetBlue of the Transactions contemplated thereby do not and will not require
the consent or approval of, or the giving of notice to, or the registration
with, or the recording or filing of any documents with, or the taking of any
other action in respect of, (a) any trustee or other creditor of JetBlue
and (b) any Government Entity, other than the filing of (w) the FAA
Filed Documents and the Financing Statements (and continuation statements
periodically), (x) filings, recordings, notices or other ministerial
actions pursuant to any routine recording, contractual or regulatory requirements
applicable to it, (y) filings, recordings, notices or other actions
contemplated by the Operative Agreements in connection with the leasing,
subleasing or re-registration of the Aircraft and (z) filings, recordings,
notices or other actions all of which have either been, or will be, completed
on or prior to such date and will be in full force and effect on such date.

 

7

 

(e)                                  Valid
and Binding Agreements.  The
Operative Agreements executed and delivered by JetBlue on or prior to such date
have been duly executed and delivered by JetBlue and, assuming the due
authorization, execution and delivery thereof by the other party or parties
thereto, constitute the legal, valid and binding obligations of JetBlue and are
enforceable against JetBlue in accordance with the respective terms thereof,
except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, receivership, moratorium and other similar laws affecting the
rights of creditors generally and general principles of equity, whether
considered in a proceeding at law or in equity and subject to principles of
public policy limiting the right to enforce the indemnification provisions
contained herein, insofar as such provisions relate to indemnification for
liabilities arising under federal securities laws.

 

(f)                                    Litigation.  Except as set forth in JetBlue’s most recent
Annual Report on Form 10-K, as amended, filed by JetBlue with the SEC on
or prior to the Closing Date or such Delivery Date, as the case may be, or in
any Quarterly Report on Form 10-Q or Current Report on Form 8-K filed by
JetBlue with the SEC subsequent to such Form 10-K, no action, claim or
proceeding is now pending or, to the actual knowledge of JetBlue, threatened,
against JetBlue, before any court, governmental body, arbitration board,
tribunal or administrative agency, which is reasonably likely to be determined
adversely to JetBlue and, if determined adversely to JetBlue, is reasonably
likely to result in a Material Adverse Change.

 

(g)                                 Financial
Condition.  The audited consolidated
balance sheet of JetBlue with respect to JetBlue’s most recent fiscal year
included in JetBlue’s most recent Annual Report on Form 10-K, as amended,
filed by JetBlue with the SEC, and the related consolidated statements of
operations and cash flows for the period then ended have been prepared in
conformity with GAAP and present fairly in all material respects the financial
condition of JetBlue and its consolidated subsidiaries as of such date and the
results of its operations and cash flows for such period, and since the date of
such balance sheet, there has been no Material Adverse Change in such financial
condition or operations of JetBlue, except for matters disclosed in
(a) the financial statements referred to above or (b) any subsequent
Quarterly Report on Form 10-Q, Current Report on Form 8-K or any press
release issued by JetBlue filed by JetBlue with the SEC on or prior to the
Closing Date or such Delivery Date, as the case may be.

 

(h)                                 Registration
and Recordation.  In respect of each
Aircraft, except for (a) the registration of the Aircraft with the FAA
pursuant to the Act in the name of JetBlue, (b) the filing for recordation
(and recordation) of the FAA Filed Documents relating to such Aircraft, (c) the
filing of the Financing Statements relating to such Aircraft (and continuation
statements relating thereto at periodic intervals), and (d) the affixation
of the nameplates referred to in Section 4.02(e) of the related Indenture
with respect to such Aircraft, on the Delivery Date with respect to such
Aircraft, no further action, including any filing or recording of any document
(including any financing statement in respect thereof under Article 9 of
the UCC) is necessary in order to establish and perfect in respect of such
Aircraft, the Mortgagee’s first priority perfected security interest in such
Aircraft (subject only to Permitted Liens as defined in the related Indenture),
as against JetBlue and any other Person, in each case, in any applicable jurisdictions
in the United States.

 

(i)                                     Location.  The “location” (as such term is used in
Section 9-307 of Article 9 of the UCC) of JetBlue is the State of
Delaware.

 

8

 

(j)                                     No
Default.  On such Delivery Date, in
respect of each Aircraft delivered on such date, no event which would
constitute an Event of Default (as defined in the Indenture for such Aircraft)
and no event or condition that with the giving of notice or the lapse of time
or both would become an Event of Default has occurred and is continuing.

 

(k)                                  No
Event of Loss.  With respect to such
Delivery Date, no Event of Loss has occurred with respect to the Airframe or
any Engine which is Collateral under each Indenture executed as of such
Delivery Date, and to the actual knowledge of JetBlue, no circumstance,
condition, act or event has occurred that, with the giving of notice or lapse
of time or both gives rise to or constitutes an Event of Loss with respect to
such Airframe or any such Engine.

 

(l)                                     Compliance
with Laws.

 

(i)                                     JetBlue
is a Citizen of the United States and a U.S. Air Carrier.

 

(ii)                                  JetBlue
holds all licenses, permits and franchises from the appropriate Government
Entities necessary to authorize JetBlue to lawfully engage in air transportation
and to carry on scheduled commercial passenger service as currently conducted,
except where the failure to so hold any such license, permit or franchise would
not give rise to a Material Adverse Change to JetBlue.

 

(iii)                               JetBlue is not an “investment
company” or a company controlled by an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

 

(m)                               Securities
Laws.  Neither JetBlue nor any person
authorized to act on its behalf has directly or indirectly offered any beneficial
interest or Security relating to the ownership of the Aircraft or any interest
in any Trust Property and Trust Agreement, or any of the Equipment Notes or any
other interest in or security under any Indenture, for sale, to, or solicited
any offer to acquire any such interest or security from, or has sold any such
interest or security to, any Person in violation of the Securities Act.

 

(n)                                 Section 1110.  With respect to each Aircraft delivered on
such Delivery Date, the related Mortgagee is entitled to the benefits of
Section 1110 (as in effect on such date) in the event of a case under
Chapter 11 of the Bankruptcy Code in which JetBlue is a debtor.

 

(o)                                 Accuracy
of Information.  Neither the
Operative Agreements to which it is a party as of such date nor other material
information relating to the Aircraft or the operations or financial condition
of JetBlue furnished to the Policy Provider contain any statement of a material
fact which was untrue or misleading in any material respect when made.  JetBlue has no knowledge of any circumstances
that could reasonably be expected to cause a Material Adverse Change with
respect to JetBlue except for matters disclosed in (i) the financial
statements referred to above or (ii) any subsequent Quarterly Report on Form
10-Q, Current Report on Form 8-K or any press release issued by JetBlue
filed by JetBlue with the SEC on or prior to the Closing Date or such Delivery
Date, as the case may be.

 

9

 

Section 2.02     Covenants
of JetBlue.  JetBlue covenants and
agrees with the Policy Provider as follows:

 

(a)                                  Without
the prior written consent of the Policy Provider (which may be granted or
withheld in its sole discretion), it will not vary any of the terms in any
Operative Agreements in any material respect as regards to the interests,
rights and remedies of the Policy Provider from those in the forms attached to
the Note Purchase Agreement.

 

(b)                                 Notwithstanding
that the related Aircraft is in the possession of a lessee or sublessee, in all
circumstances the Aircraft shall be maintained in accordance with the
maintenance standards required by, or substantially equivalent to those
required by, the FAA or any other applicable civil aviation authority.

 

(c)                                  It
shall not, and shall not suffer any of its Affiliates to, purchase or otherwise
acquire any of the Class G-1 Certificates or Class G-2 Certificates.

 

(d)                                 Documentation.  In connection with any Financing Agreement
(as defined in the Note Purchase Agreement), the Policy Provider shall receive
(a) a copy, delivered on or promptly (but in no event more than 10 days)
after the applicable Delivery Date, of each opinion of counsel addressed to
S&P and the Indenture Trustee, in respect of JetBlue and the Subordination
Agent or any of the other parties to the Operative Agreements and the
Transactions, dated such Delivery Date and in form and substance reasonably
satisfactory to the Policy Provider, addressed to the Policy Provider (or
accompanied by a letter from the counsel rendering such opinion to the effect
that the Policy Provider is entitled to rely on such opinion as of its date as
if it were addressed to the Policy Provider) and addressing such matters as the
Policy Provider may reasonably request, and the counsel providing each such
opinion shall have been instructed by its client to deliver such opinion to the
addressees thereof and (b) a copy, delivered upon or promptly (but in no
event more than 10 days) after receipt following recordation, of each Financing
Statement and each document recorded with the FAA.  For the purposes of this Section 2.02(d),
delivery of the Policy by the Policy Provider shall be deemed to be consent by
the Policy Provider to the forms of opinions of counsel provided as Exhibits
A-E to the Participation Agreement.

 

(e)                                  JetBlue
shall comply with the provisions of the Operative Documents relating to
maintenance, operation, leasing, subleasing and country of reregistration of
the Aircraft.

 

(f)                                    With
respect to any individual Aircraft financed under an Indenture, JetBlue shall
not use debt represented by Class G Certificates in such financing that would
create a loan to Aircraft value ratio (as described under the “Summary — Loan
to Aircraft Value Ratios” in the Offering Document) in excess of 51.5%.

 

(g)                                 Insurance.  JetBlue shall comply with, or cause to be
complied with, the insurance provisions set forth in Section 4.06 of each
Indenture, including Annex B thereto, and the provisions of Annex A
hereto, which provisions are hereby incorporated by this reference as if set
forth in full herein; provided that to the extent that Annex A conflicts with
either Section 4.06 of any Indenture or Annex B thereto, the provisions of
Annex A shall control; provided

 

10

 

further that the Policy Provider agrees to accept, in
lieu of insurance against any risk with respect to which insurance is required
under this Section 2.02(g), indemnification from, or insurance provided by, the
U.S. Government (as defined in each Indenture) or, upon the written consent of
the Mortgagee (as defined in each Indenture), other Government Entity (as
defined in each Indenture), against such risk in an amount that, when added to
the amount of insurance (including permitted self-insurance), if any, against
such risk that JetBlue (or any Permitted Lessee (as defined in each Indenture))
may continue to maintain, in accordance with this Section 2.02(g), shall be at
least equal to the amount of insurance against such risk otherwise required by
this Section 2.02(g).

 

Section 2.03     Covenants
of the Class G Trustees and Subordination Agent.  The Class G Trustees and Subordination Agent
shall perform and observe, in all material respects, all of its covenants,
obligations and agreements in any Operative Agreement to which it is a party to
be observed or performed by it.

 

Section 2.04     Representations,
Warranties and Covenants of the Policy Provider.  The Policy Provider represents, warrants and
covenants to JetBlue and the Subordination Agent as follows:

 

(a)                                  Organization
and Licensing.  The Policy Provider
is duly organized, validly existing and in good standing as a New
York-domiciled stock insurance company duly qualified to conduct an insurance
business in every jurisdiction where qualification may be necessary to
accomplish the Transactions.

 

(b)                                 Corporate
Power.  The Policy Provider has the
corporate power and authority to issue each Policy, to execute and deliver this
Insurance Agreement and the other Operative Agreements to which it is a party
and to perform all of its obligations hereunder and thereunder.

 

(c)                                  Authorization;
Approvals.  Except as have already
been obtained, no authorization, consent, approval, license, formal exemption
or declaration from, nor any registration or filing with, any court or
governmental agency or body of the United States of America or the State of New
York, which if not obtained would affect or impair the validity or
enforceability of either Policy against the Policy Provider, is required in
connection with the execution and delivery by the Policy Provider of the
Policies or this Insurance Agreement or in connection with the Policy Provider’s
performance of its obligations thereunder or hereunder.

 

(d)                                 Enforceability.  This Insurance Agreement constitutes, and
each Policy, when issued, will constitute, a legal, valid and binding
obligation of the Policy Provider, enforceable in accordance with its terms,
subject to bankruptcy, insolvency, reorganization, moratorium, receivership and
other similar laws affecting creditors’ rights generally as they would apply in
the event of the bankruptcy, receivership, insolvency or similar proceeding of
the Policy Provider and to general principles of equity and subject to
principles of public policy limiting the right to enforce the indemnification
provisions contained herein, insofar as such provisions relate to
indemnification for liabilities arising under federal securities laws.

 

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(e)                                  Exemption
from Registration.  The Policies are exempt
from registration under the Securities Act.

 

(f)                                    No
Conflicts.  Neither the execution or
delivery by the Policy Provider of the Policies and the Operative Agreements to
which it is a party, nor the performance by the Policy Provider of its
obligations thereunder, will conflict with any provision of the certificate of
incorporation or the bylaws of the Policy Provider nor result in a breach of,
or constitute a default under, any material agreement or other instrument to
which the Policy Provider is a party or by which any of its property is bound
nor violate any judgment, order or decree applicable to the Policy Provider of
any governmental or regulatory body, administrative agency, court or arbitrator
having jurisdiction over the Policy Provider to the extent any such conflict,
breach, default or violation would result in a Material Adverse Change in the
financial results or operations of the Policy Provider or impairs the Policy
Provider’s ability to perform its obligations under each  Policy or any of the Operative Agreements.

 

(g)                                 Financial
Information.  The consolidated
financial statements of the Policy Provider and its subsidiaries as of
December 31, 2003 and December 31, 2002 and for each of the three
years in the period ended December 31, 2003, and the accompanying
footnotes, together with a report thereon of PricewaterhouseCoopers,
independent certified public accountants, included in the Annual Report on
Form 10-K of MBIA Inc. for the year ended December 31, 2003 and the
consolidated financial statements of MBIA and its subsidiaries as of September
30, 2004 and for the nine month periods ended September 30, 2004 and September
30, 2003 included in the Quarterly Report on Form 10-Q of MBIA Inc. for the
period ended September 30, 2004, incorporated by reference into the Offering
Document, fairly present in all material respects the financial condition of
the Policy Provider and its subsidiaries as of such dates and for the periods
covered by such statements in accordance with generally accepted accounting
principles consistently applied.  Since
September 30, 2004, there has been no change in the financial condition of the
Policy Provider and its subsidiaries that would materially and adversely affect
the Policy Provider’s ability to perform its obligations under the Policies.

 

(h)                                 Policy
Provider Information.  The
information with respect to the Policy Provider set forth or incorporated by
reference in the section of the Offering Document contained therein captioned “Description
of the Policy Provider” does not purport to provide the scope of disclosure
required to be included by the Securities Act with respect to a registrant in
connection with the offer and sale of securities of such registrant.  However, the information in such section does
not contain any untrue statement of a material fact and did not omit to state
any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

 

(i)                                     No
Litigation.  There are no actions,
suits, proceedings or investigations pending or, to the best of the Policy
Provider’s knowledge, threatened against it at law or in equity or before or by
any court, governmental agency, board or commission or any arbitrator which, if
decided adversely, would materially and adversely affect its ability to perform
its obligations under the Policies or this Insurance Agreement.

 

(j)                                     Compliance
with Law, Etc.  No practice,
procedure or policy employed, or proposed to be employed, by the Policy
Provider in the conduct of its business violates any law,

 

12

 

regulation, judgment, agreement, order or decree
applicable to the Policy Provider that, if enforced, could result in a Material
Adverse Change with respect to the Policy Provider.

 

ARTICLE III

THE POLICIES;
REIMBURSEMENT; INDEMNIFICATION

 

Section 3.01     Issuance
of the Policies.  The Policy Provider
agrees to issue each Policy on the Closing Date subject to satisfaction of the
conditions precedent set forth below on or prior to the Closing Date:

 

(a)                                  Operative
Agreements.  The Policy Provider
shall have received a copy of (i) each of the Operative Agreements to be
executed and delivered on or prior to the Closing Date, in form and substance
reasonably satisfactory to the Policy Provider, duly authorized, executed and
delivered by each party thereto and (ii) a copy of the Offering Document;

 

(b)                                 Certified
Documents and Resolutions.  The
Policy Provider shall have received (i) a copy of the applicable
organizational documents of JetBlue and (ii) a certificate of the
Secretary or Assistant Secretary of JetBlue dated the Closing Date stating that
attached thereto is a true, complete and correct copy of resolutions duly
adopted by the Board of Directors of JetBlue authorizing the execution,
delivery and performance by JetBlue of the Operative Agreements to which it is
a party and the consummation of the Transactions and that such applicable
organizational documents and resolutions are in full force and effect without
amendment or modification on the Closing Date;

 

(c)                                  Incumbency
Certificate.  The Policy Provider
shall have received a certificate of the Secretary or an Assistant Secretary of
each of JetBlue and the Subordination Agent certifying the names and signatures
of the officers of JetBlue and the Subordination Agent authorized to execute
and deliver the Operative Agreements to which it is a party on or prior to
Closing Date and that, with respect to JetBlue, shareholder consent to the execution
and delivery of such documents by JetBlue, is not necessary or has been
obtained;

 

(d)                                 Representations
and Warranties.  The representations
and warranties of JetBlue and the Subordination Agent dated the Closing Date
set forth or incorporated by reference in this Insurance Agreement shall be
true and correct on and as of the Closing Date;

 

(e)                                  Documentation.  The Policy Provider shall have received a
copy of each document, instrument, certificate and opinion delivered on or
before the Closing Date pursuant to the Operative Agreements and the
Underwriting Agreement (except for the 10b-5 opinion, the comfort letters of
Ernst & Young LLP and the opinion of Shearman & Sterling LLP  as counsel to the Underwriters), including
each opinion of counsel addressed to any of Moody’s, S&P, the Class G
Trustees, JetBlue and the Subordination Agent, in respect of JetBlue and the
Subordination Agent or any of the other parties to the Operative Agreements and
the Transactions dated the Closing Date in form and substance reasonably
satisfactory to the Policy Provider, addressed to the Policy Provider (or
accompanied by a letter from the counsel rendering such opinion to the effect
that the Policy Provider is entitled to rely on such opinion as of its date as
if it were addressed to the Policy Provider) and addressing such matters as the

 

13

 

Policy Provider may reasonably request, and the
counsel providing each such opinion shall have been instructed by its client to
deliver such opinion to the addressees thereof;

 

(f)                                    Approvals,
Etc.  The Policy Provider shall have
received true and correct copies of all approvals, licenses and consents, if
any, including any required approval of the shareholders of JetBlue, required
in connection with the Transactions;

 

(g)                                 No
Litigation, Etc.  No suit, action or
other proceeding, investigation or injunction, or final judgment relating
thereto, shall be pending or threatened before any court, governmental or
administrative agency or arbitrator in which it is sought to restrain or
prohibit or to obtain damages or other relief in connection with any of the
Operative Agreements or the consummation of the Transactions;

 

(h)                                 Legality.  No statute, rule, regulation or order shall
have been enacted, entered or deemed applicable by any government or
governmental or administrative agency or court that would make the Transactions
illegal or otherwise prevent the consummation thereof;

 

(i)                                     Issuance
of Ratings.  The Policy Provider
shall have received confirmation that the risk secured by the applicable Policy
is rated no lower than “BBB+” by S&P and “Baa2” by Moody’s, the
Class G-1 Certificates and Class G-2 Certificates, when issued, will each
be rated “AAA” by S&P and “Aaa” by Moody’s, and that the Class C
Certificates, when issued, will be rated “BB+” by S&P and “Ba1” by Moody’s,
and shall have received the confirmation from S&P of a capital charge
acceptable to the Policy Provider;

 

(j)                                     Satisfactory
Documentation.  The Policy Provider
and its counsel shall have reasonably determined that all documents,
certificates and opinions to be delivered in connection with the Certificates
conform to the terms of the related Trust Agreement, the Offering Document,
this Insurance Agreement and the Intercreditor Agreement;

 

(k)                                  Filings.  The Policy Provider shall have received
evidence that there shall have been made and shall be in full force and effect,
all filings, recordings and registrations, and there shall have been given or
taken any notice or similar action as is necessary in order to establish,
perfect, protect and preserve the right, title and interest of the Policy
Provider created by the Operative Agreements executed and delivered on or prior
to the Closing Date;

 

(l)                                     Conditions
Precedent.  All conditions precedent
to the issuance of the Certificates under the Trust Agreements shall have been
satisfied or waived (with the consent of the Policy Provider).  All conditions precedent to the effectiveness
of the Liquidity Facilities shall have been satisfied or waived; and

 

(m)                               Expenses.  The Policy Provider shall have received
payment in full of all amounts required to be paid to or for account of the
Policy Provider on or prior to the Closing Date.

 

Section 3.02     Payment
of Fees and Premium.  (a)  Legal Fees.  The
Policy Provider shall be entitled to payment of the Policy Provider’s attorneys’
fees and all other reasonable and actual fees expenses and disbursements
(including without limitation accountants’ fees) incurred by the Policy
Provider in connection with the negotiation,

 

14

 

preparation, execution
and delivery of the Offering Documents, the Operative Agreements and all other
documents delivered with respect thereto, as provided in the Policy Fee
Letter.  Such attorney’s fees and
expenses shall be payable by JetBlue on the Closing Date upon the presentation
of an invoice for any such fees, costs and expenses.

 

(b)                                 Rating
Agency Fees.  The Policy Provider
shall be entitled to reimbursement for all periodic rating agency fees,
expenses and disbursements incurred by the Policy Provider, and not invoiced by
a rating agency directly to JetBlue, in connection with the transactions
described herein and in the Operative Agreements, such reimbursement to be made
by JetBlue within 30 days of presentation of an invoice therefor; provided that JetBlue shall only be liable for
such fees, expenses and disbursements incurred by the Policy Provider as a
result of a request from a rating agency or reasonable requests by the Policy
Provider for rating agency review of the transactions described herein
and in the Operative Documents.

 

(c)                                  [Reserved]

 

(d)                                 Premium.

 

(i)                                     In
consideration of the issuance by the Policy Provider of each Policy, JetBlue
shall pay or cause to be paid to the Policy Provider, the Premium and such
additional amounts, in each case, as and when due, in accordance with the
Policy Fee Letter.

 

(ii)                                  No
portion of the Premium paid shall be refundable without regard to whether the
Policy Provider makes any payment under either Policy or any other
circumstances relating to the Class G Certificates or provision being made
for payment of the Class G Certificates prior to maturity.

 

Section 3.03     Reimbursement
Obligation.  (a)  As and when due in accordance with
and from the funds specified in Sections 2.4(a) and 3.2 of the
Intercreditor Agreement, the Policy Provider shall be entitled to reimbursement
for any payment made by the Policy Provider under either Policy or to the
Primary Liquidity Provider under Section 2.6(c) and 3.7(c) of the
Intercreditor Agreement, which reimbursement shall be due and payable on the
date provided in such Sections, in an amount equal to the sum of the amount to
be so paid and all amounts previously paid that remain unreimbursed, plus accrued
and unpaid interest thereon from the date such amounts became due until paid in
full (as well as before judgment), at a rate of interest equal to the greater
of (i) the Base Rate plus 1% and (ii) the applicable interest rate on the
Series G-1 Equipment Notes (in the case of a drawing under the Policy in
respect of the Class G-1 Certificates) or on the Series G-2 Equipment Notes (in
the case of a drawing under the Policy in respect of the Class G-2
Certificates), plus, in each case, 1%; provided that, for the avoidance of
doubt, any obligation to pay interest that is created by this Section 3.03(a)
shall be a non-recourse obligation of JetBlue and such accrued interest shall
be payable solely from amounts distributed pursuant to Sections 2.4(a) and 3.2 of
the Intercreditor Agreement and JetBlue shall not be liable for any shortfall
that may arise as a result thereof.  In
addition, to the extent that any such payment by the Policy Provider shall have
been made as a result of a default by a Primary Liquidity Provider in its
obligation to make an Advance, as provided in the Intercreditor Agreement, the
Policy Provider shall be entitled to the payment of interest on such amounts to

 

15

 

the extent, at the time and
in the priority that the Primary Liquidity Provider would have been paid
pursuant to the Intercreditor Agreement had the Primary Liquidity Provider made
such Advance up to a maximum of six such payments by the Policy Provider.

 

(b)                                 [Reserved]

 

(c)                                  JetBlue
agrees to pay to the Policy Provider any and all charges, fees, costs and
expenses and disbursements that the Policy Provider may reasonably pay or
incur, including reasonable attorneys’ and accountants’ fees and expenses
(without duplication of amounts paid to the Policy Provider in respect of the
Operative Agreements), in connection with (i) the enforcement, defense or
preservation of any rights in respect of any of the Operative Agreements,
including defending, monitoring or participating in any litigation or
proceeding and (ii) any amendment, waiver or other action requested by
JetBlue with respect to, or related to, any Operative Agreements or to any form
document attached to any Operative Agreement as exhibit, schedule or annex
thereto, whether or not executed or completed. 
Such reimbursement shall be due on the dates on which such charges,
fees, costs, expenses and disbursements are paid or incurred by the Policy
Provider.

 

Section 3.04     Indemnification.  JetBlue agrees (i) that the Policy Provider,
upon execution and delivery thereof, will be entitled to the full benefit of
the General Indemnity contained in Section 7 of each Participation Agreement as
if such provisions were set forth in full herein, the Policy Provider were an
Indemnitee (as defined in the related Participation Agreement) thereunder and
the Operative Agreements referred to therein include this Insurance Agreement
and (ii) that it shall name the Policy Provider as an Indemnitee in each
Participation Agreement and that the Policy Provider shall be entitled to the
full benefit of the General Indemnity provisions set forth in or incorporated
by reference in each Participation Agreement; provided, however, any exclusion
contained in any Participation Agreement or form thereof related to any
representation or warranty by any Indemnitee other than the Policy Provider,
the failure by any Indemnitee other than the Policy Provider to perform or
observe any agreement, covenant or condition in any of the Operative
Agreements, the acts or omissions involving the willful misconduct or gross
negligence of any Indemnitee other than the Policy Provider or any other action
or omission of any other Person other than the Policy Provider shall not apply
to the indemnification obligations of JetBlue to the Policy Provider and to the
extent not paid, all money due under this 3.04 shall constitute Policy Provider
Obligations (as defined in the Intercreditor Agreement).

 

Section 3.05     Procedure
for Payment of Fees and Premium.  (a)  All payments to
the Policy Provider hereunder shall be made in lawful currency of the United
States and in immediately available funds and shall be made prior to 2:00 p.m.
(New York City time) on the date such payment is due by wire transfer to
JPMorgan Chase Bank, ABA #021 000 021 for credit to MBIA Insurance
Corporation Premium Account, Account No. 910-2-721728
Re:  JetBlue Airways Pass Through Trust 2004-2, or to such other
office or account as the Policy Provider may direct.  Payments received by the Policy Provider at
or after 2:00 p.m. (New York City time) shall be deemed to have been received
on the next succeeding Business Day, and such extension of time shall be
included in computing interest, commissions or fees, if any, in connection with
such payment.

 

16

 

(b)                                 Unless
otherwise specified herein, the Policy Provider shall be entitled to interest
on all amounts owed to the Policy Provider under this Insurance Agreement, from
the date such amounts become due and payable until paid in full, at a rate of
interest equal to the Base Rate from time to time in effect plus 1%.

 

(c)                                  Unless
otherwise specified herein, interest payable to the Policy Provider under this
Insurance Agreement shall be calculated on the basis of a 365 day year and the
actual number of days elapsed and shall be payable on demand.

 

Section 3.06     Policy
Endorsement.  Regardless of whether
or not the Policy Provider makes a Policy Provider Election, the Policy
Provider shall, on the first Business Day (which shall be a Special
Distribution Date) that is 21 months after the last date on which full payment
was made on the first Series G-1 Equipment Note or Series G-2 Equipment Note,
as applicable, as to which there has subsequently been a failure to pay principal
or that has been accelerated, endorse the applicable Policy, if not already
endorsed, to so provide for the payment to the Liquidity Provider of interest
accruing on the outstanding drawings in respect of the Class G-1 and Class
G-2 Liquidity Facilities from and after the end of such 21-month period as and
when such interest becomes due in accordance with such Liquidity Facilities.

 

Section 3.07     Payment
by Subordination Agent.  (a)  All of the fees, expenses
and disbursements set forth in Sections 3.02 and 3.03(c) shall be payable
by JetBlue as provided in such Sections. 
To the extent of JetBlue’s failure to pay any such fees, expenses and
disbursements, the Subordination Agent shall pay such amounts pursuant to the
Operative Documents.

 

(b)                                 Notwithstanding
anything herein to the contrary, all payments to be made by the Subordination
Agent under this Section 3.07 shall be made only from the amounts that
constitute Scheduled Payments, Special Payments or payments under
Section 7 of the Participation Agreements and only to the extent that the
Subordination Agent shall have sufficient income or proceeds therefrom to
enable the Subordination Agent to make payments in accordance with the terms of
the Intercreditor Agreement.  The Policy
Provider agrees that with respect to payments to be made by the Subordination
Agent (i) it will look solely to such amount to the extent available for
distribution to it as provided in the Intercreditor Agreement, and
(ii) the Subordination Agent, in its individual capacity, is not
personally liable to it for any amounts payable or liability under this letter
except as expressly provided in the Intercreditor Agreement.

 

ARTICLE IV

FURTHER AGREEMENTS

 

Section 4.01     Effective
Date; Term of the Insurance Agreement. 
This Insurance Agreement shall take effect on the Closing Date and shall
remain in effect until the later of (a) such time as the Policy Provider
is no longer subject to a claim under either Policy and each Policy shall have
been surrendered to the Policy Provider for cancellation and (b) all
amounts payable to the Policy Provider by JetBlue or the Subordination Agent
hereunder or from any other source hereunder or under the Operative Agreements
and all amounts payable under the

 

17

 

Class G-1
Certificates and the Class G-2 Certificates have been paid in full;
provided, however, that the provisions of Section 3.04 hereof shall
survive any termination of this Insurance Agreement.

 

Section 4.02     Further
Assurances and Corrective Instruments.  (a)  Neither
JetBlue nor the Subordination Agent shall grant any waiver of rights or agree
to any amendment or modification to any of the Operative Agreements to which
either of them is a party which waiver, amendment, or modification would have
an adverse effect on the rights or remedies of the Policy Provider without the
prior written consent of the Policy Provider so long as the Policy Provider
shall be the Controlling Party, and any such waiver without prior written
consent of the Policy Provider shall be null and void and of no force or
effect.

 

(b)                                 To
the extent permitted by law, each of JetBlue and the Subordination Agent agrees
that it will, from time to time, execute, acknowledge and deliver, or cause to
be executed, acknowledged and delivered, such supplements hereto and such
further instruments as the Policy Provider may reasonably request and as may be
required in the Policy Provider’s reasonable judgment to effectuate the
intention of or facilitate the performance of this Insurance Agreement.

 

Section 4.03     Obligations
Absolute.  (a)  The obligations of JetBlue, the
Subordination Agent and the Class G Trustees hereunder and under the Operative
Agreements shall be absolute and unconditional and shall be paid or performed
strictly in accordance with this Insurance Agreement and the other Operative
Agreements under all circumstances irrespective of:

 

(i)                                     any
lack of validity or enforceability of, or any amendment or other modifications
of, or waiver, with respect to any of the Operative Agreements or the
Certificates;

 

(ii)                                  any
exchange or release of any other obligations hereunder;

 

(iii)                               the existence of any
claim, setoff, defense, reduction, abatement or other right that any Person may
have at any time against the Policy Provider or any other Person;

 

(iv)                              any
document presented in connection with either Policy proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect;

 

(v)                                 any
payment by the Policy Provider under either Policy against presentation of a
certificate or other document that does not strictly comply with terms of such
Policy;

 

(vi)                              any
failure of JetBlue to receive the proceeds from the sale of the Certificates;
and

 

18

 

(vii)                           any other circumstances,
other than payment in full, that might otherwise constitute a defense available
to, or discharge of, any Person in respect of any Operative Agreements.

 

(b)                                 Each
of the parties hereto renounces the right to assert as a defense to the
performance of their respective obligations herein each of the following:  (i) to the extent permitted by law, any
and all redemption and exemption rights and the benefit of all valuation and
appraisement privileges against the indebtedness and obligations evidenced by
any Operative Agreements or by any extension or renewal thereof;
(ii) presentment and demand for payment, notices of nonpayment and of
dishonor, protest of dishonor and notice of protest; (iii) all notices in
connection with the delivery and acceptance hereof and all other notices in
connection with the performance, default or enforcement of any payment
hereunder, except as required by the Operative Agreements; and (iv) all
rights of abatement, diminution, postponement or deduction, or to any defense,
or to any right of setoff or recoupment arising out of any breach under any of
the Operative Agreements, by any party thereto or any beneficiary thereof, or
out of any obligation at any time owing to JetBlue.

 

(c)                                  JetBlue
(i) agrees that any consent, waiver or forbearance hereunder or in the
Operative Agreements with respect to an event shall operate only for such event
and not for any subsequent event; (ii) consents to any and all extensions
of time that may be granted by the Policy Provider with respect to any payment
hereunder or other provisions hereof and to the release of any security at any
time given for any payment hereunder, or any part thereof, with or without
substitution, and to the release of any Person or entity liable for any such
payment; and (iii) consents to the addition of any and all other makers,
endorsers, guarantors and other obligors for any payment hereunder, and to the
acceptance of any and all other security for any payment hereunder, and agree
that the addition of any such obligors or security shall not affect the
liability of JetBlue for any payment hereunder.

 

(d)                                 No
failure by the Policy Provider to exercise, and no delay by the Policy Provider
in exercising, any right hereunder or in the Operative Agreements shall operate
as a waiver thereof.  The exercise by the
Policy Provider of any right hereunder shall not preclude the exercise of any
other right, and the remedies provided herein to the Policy Provider are
declared in every case to be cumulative and not exclusive of any remedies
provided by law or equity.

 

(e)                                  Nothing
herein shall be construed as prohibiting any party hereto from pursuing any
rights or remedies it may have against any Person in a separate legal proceeding.

 

Section 4.04     Assignments;
Reinsurance; Third-Party Rights.  (a)  This Insurance
Agreement shall be a continuing obligation of the parties hereto and shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. 
The Subordination Agent, and except for any transaction expressly
permitted by Section 5.02 of the applicable Class G Trust Agreement,
JetBlue, may not assign their respective rights under this Insurance Agreement,
or delegate any of their duties hereunder, without the prior written consent of
the other parties hereto.  Any
assignments made in violation of this Insurance Agreement shall be null and
void.

 

19

 

(b)                                 The
Policy Provider shall have the right to grant participation in its rights under
this Insurance Agreement and to enter into contracts of reinsurance with
respect to the Policies upon such terms and conditions as the Policy Provider
may in its discretion determine; provided, however, that no such participation or reinsurance agreement
or arrangement shall relieve the Policy Provider of any of its obligations
hereunder or under either Policy or grant to any participant or reinsurer any
rights hereunder or under any Operative Agreement.

 

(c)                                  Except
as provided herein with respect to participants and reinsurers, nothing in this
Insurance Agreement shall confer any right, remedy or claim, express or
implied, upon any Person, including, particularly, any Class G
Certificateholder, other than the Policy Provider against JetBlue, or JetBlue
against the Policy Provider, and all the terms, covenants, conditions, promises
and agreements contained herein shall be for the sole and exclusive benefit of
the parties hereto and their successors and permitted assigns.  Neither the Class G Trustees nor any
Class G Certificateholder shall have any right to payment from the Premium
paid or payable hereunder or from any amounts paid by JetBlue pursuant to
Sections 3.02 or 3.03.

 

Section 4.05     Liability
of the Policy Provider.  Neither the Policy Provider nor any of
its officers, directors or employees shall be liable or responsible for:  (a) the use that may be made of either
Policy by the applicable Class G Trustee or for any acts or omissions of such
Class G Trustee in connection therewith; or (b) the validity, sufficiency,
accuracy or genuineness of documents delivered to the Policy Provider in
connection with any claim under either Policy, or of any signatures thereon,
even if such documents or signatures should in fact prove to be in any or all
respects invalid, insufficient, fraudulent or forged (unless the Policy
Provider shall have actual knowledge thereof). 
In furtherance and not in limitation of the foregoing, the Policy
Provider may accept documents that appear on their face to be in order, without
responsibility for further investigation.

 

ARTICLE V

MISCELLANEOUS

 

Section 5.01     Amendments,
Etc.  This Insurance Agreement may be
amended, modified, supplemented or terminated only by written instrument or
written instruments signed by the parties hereto; provided that if such
amendment, modification, supplement or termination would have a material
adverse affect on the interests of the Subordination Agent, a Trustee or any
Class G Certificateholder, Ratings Confirmation shall also be obtained
prior to such amendment, modification, supplement or termination being
effective.  JetBlue agrees to provide a
copy of any amendment to this Insurance Agreement promptly to the Subordination
Agent and the rating agencies maintaining a rating on the Class G-1
Certificates and the Class G-2 Certificates. 
No act or course of dealing shall be deemed to constitute an amendment,
modification, supplement or termination hereof.

 

Section 5.02     Notices.  All demands, notices and other communications
to be given hereunder shall be in writing (except as otherwise specifically
provided herein) and shall be mailed by registered mall or personally delivered
and telecopied to the recipient as follows:

 

20

 

(a)                                  To
the Policy Provider:

 

MBIA Insurance Corporation 

113 King Street 

Armonk, New York 10504 

Attention:  Insured Portfolio Management,
Structured Finance 

Facsimile:  (914) 765-3810

Confirmation:  (914) 273-4545

 

(in each case in which notice or other communication
to the Policy Provider refers to an event of default under any Operative
Agreement or a claim on either Policy shall be deemed to constitute consent or
acceptance, then a copy of such notice or other communication should also be
sent to the attention of the general counsel of each of JetBlue and the Class G
Trustees and, in all cases, both any original and all copies shall be marked to
indicate “URGENT MATERIAL ENCLOSED.”)

 

(b)                                 To
JetBlue:

 

JetBlue Airways Corporation

118-29 Queens Boulevard

Forest Hills, New York 11375

Attention:  Vice President – Corporate
Finance

Facsimile:       (718) 709-3639

 

with a copy to:

 

JetBlue Airways Corporation

118-29 Queens Boulevard

Forest Hills, New York 11375

Attention:  General Counsel

Facsimile:       (718) 709-3631

 

(c)                                  To
the Subordination Agent:

 

Wilmington
Trust Company

Rodney Square North

1100 North Market Street

Wilmington,
Delaware 19890-0001

Attention:       Corporate Trust
Administration

Facsimile:       (302) 636-4140

 

A party may specify an
additional or different address or addresses by writing mailed or delivered to
the other parties as aforesaid.  All such
notices and other communications shall be effective upon receipt unless received
after business hours on any day, in which case on the opening of business on
the next Business Day.

 

21

 

Section 5.03     Severability.  In the event that any provision of this
Insurance Agreement shall be held invalid or unenforceable by any court of
competent jurisdiction, the parties hereto agree that such holding shall not
invalidate or render unenforceable any other provision hereof.  The parties hereto further agree that the
holding by any court of competent jurisdiction that any remedy pursued by any
party hereto is unavailable or unenforceable shall not affect in any way the
ability of such party to pursue any other remedy available to it.

 

Section 5.04     Governing
Law.  This Insurance Agreement shall
be governed by and construed in accordance with the laws of the State of New
York, including all matters of construction, validity and performance.  This Insurance Agreement is being delivered
in New York.

 

Section 5.05     Consent
to Jurisdiction.  (a)  The parties hereto hereby
irrevocably submit to the non-exclusive jurisdiction of the United States
District Court for the Southern District of New York and any court in the State
of New York located in the City and County of New York, and any appellate court
from any thereof, in any action, suit or proceeding brought against it and to
or in connection with any of the Operative Agreements or the Transactions or
for recognition or enforcement of any judgment, and the parties hereto hereby
irrevocably and unconditionally agree that all claims in respect of any such
action or proceeding may be heard or determined in such New York state court
or, to the extent permitted by law, in such federal court.  The parties hereto agree that a final unappealable
judgment in any such action, suit or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  To the extent permitted
by applicable law, the parties hereto hereby waive and agree not to assert by
way of motion, as a defense or otherwise in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
such courts, that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that the
related documents or the subject matter thereof may not be litigated in or by
such courts.

 

(b)                                 To
the extent permitted by applicable law, the parties hereto shall not seek and
hereby waive the right to any review of the judgment of any such court by any
court of any other nation or jurisdiction which may be called upon to grant an
enforcement of such judgment.

 

(c)                                  Nothing
contained in this Insurance Agreement shall limit or affect any party’s right
to serve process in any other manner permitted by law or to start legal
proceedings relating to any of the Operative Agreements against any other party
or its properties in the courts of any jurisdiction.

 

Section 5.06     Consent
of the Policy Provider.  No disclosure
relating to the Policy Provider contained in any Offering Document, which
disclosure modifies, alters, changes, amends or supplements the disclosure
relating to the Policy Provider provided by the Policy Provider for use in the
Offering Document, shall be made without the Policy Provider’s prior written
consent.  In the event that the consent
of the Policy Provider is required under any of the Operative Agreements, the
determination whether to grant or withhold such consent shall be made by the
Policy Provider in its sole discretion without any implied duty towards any
other Person, except as otherwise expressly provided therein.

 

22

 

Section 5.07     Counterparts.  This Insurance Agreement may be executed in
counterparts by the parties hereto, and all such counterparts shall constitute
one and the same instrument.

 

Section 5.08     Headings.  The headings of Articles and
Sections and the Table of Contents contained in this Insurance Agreement
are provided for convenience only.  They
form no part of this Insurance Agreement and shall not affect its construction
or interpretation.

 

Section 5.09     Trial
by Jury Waived.  Each party hereby
waives, to the fullest extent permitted by law, any right to a trial by jury in
respect of any litigation arising directly or indirectly out of, under or in
connection with this Insurance Agreement or any of the other Operative
Agreements or any of the Transactions contemplated hereunder or thereunder.  Each party hereto (A) certifies that no
representative, agent or attorney of any party hereto has represented,
expressly or otherwise, that it would not, in the event of litigation, seek to
enforce the foregoing waiver and (B) acknowledges that it has been induced
to enter into the Operative Agreements to which it is a party by, among other
things, this waiver.

 

Section 5.10     Limited
Liability.  No recourse under any
Operative Agreement shall be had against, and no personal liability shall
attach to, any officer, employee, director, affiliate or shareholder of any
party hereto, as such, by the enforcement of any assessment or by any legal or
equitable proceeding, by virtue of any statute or otherwise in respect of any
of the Operative Agreements, the Certificates or either Policy, it being
expressly agreed and understood that each Operative Agreement is solely a
corporate obligation of each party hereto, and that any and all personal
liability, either at common law or in equity, or by statute or constitution, of
every such officer, employee, director, affiliate or shareholder for breaches
of any party hereto of any obligations under any Operative Agreement is hereby
expressly waived as a condition of and in consideration for the execution and
delivery of this Insurance Agreement.

 

Section 5.11     Entire
Agreement.  This Insurance Agreement,
each Policy, the Policy Fee Letter and the other Operative Agreements set forth
the entire agreement between the parties with respect to the subject matter
hereof and thereof, and supersede and replace any agreement or understanding
that may have existed between the parties prior to the date hereof in respect
of such subject matter.

 

Section 5.12     Independent
Agreements.  This Insurance Agreement
and each Policy are separate and independent agreements.  No breach by any party hereto of any
representation, warranty, covenant, agreement or undertaking contained herein
shall in any way affect the obligations of the Policy Provider under either
Policy.

 

Section 5.13     Successors
and Assigns.  This Insurance
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

23

 

IN WITNESS WHEREOF, the
parties hereto have executed this Insurance Agreement, all as of the day and
year first above mentioned.

 

	
   

  	
  MBIA INSURANCE
  CORPORATION,

  as Policy Provider

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam M. Carta

  	
   

  
	
   

  	
   

  	
  Name:  Adam M. Carta

  
	
   

  	
   

  	
  Title:    Assistant Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY,

  not in its individual capacity but solely as

  Subordination Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Chris Sponenberg

  	
   

  
	
   

  	
   

  	
  Name:  W. Chris Sponenberg

  
	
   

  	
   

  	
  Title:     Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST
  COMPANY, as Class

  G-1 Trustee and Class G-2 Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Chris Sponenberg

  	
   

  
	
   

  	
   

  	
  Name:  W. Chris Sponenberg

  
	
   

  	
   

  	
  Title:     Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JETBLUE AIRWAYS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Harvey

  	
   

  
	
   

  	
   

  	
  Name:  John Harvey

  
	
   

  	
   

  	
  Title:    VP Corporate Finance & Treasurer

  
					

 

[Insurance Agreement
signature page]

 

 

 

ANNEX A TO INSURANCE AGREEMENT

 

INSURANCE

 

A.                                   Bodily
Injury Liability and Property Damage Liability Insurance.

 

1.                                       Except
as provided in paragraph 2 of this Section A, and subject to the self
insurance to the extent permitted by Section B hereof, JetBlue will at all
times carry and maintain or cause to be carried and maintained, at no expense
to any Additional Insured (as defined in the Indenture), on a
non-discriminatory basis, comprehensive airline liability insurance, including
passenger legal liability, bodily injury liability, property damage liability
and contractual liability (exclusive of manufacturer’s product liability
insurance and including, without limitation, aircraft liability war risk and
allied perils insurance, if and to the extent the same is maintained by JetBlue
(or Permitted Lessee (as defined in the Indenture)) with respect to other
Similar Aircraft (as defined in the Indenture) owned or leased, and operated by
JetBlue (or Permitted Lessee) on the same routes) with respect to the Aircraft
(a) in an amount per occurrence not less than the greatest of (x) the
amount of comprehensive airline legal liability insurance from time to time
applicable to aircraft owned or leased and operated by JetBlue of the same type
and operating on similar routes as the Aircraft (y) the amount of comprehensive
legal liability insurance from time to time applicable to aircraft owned or
leased and operated by air carriers with comparable route structures flying
similar aircraft on similar routes and (z) the Minimum Liability Insurance
Amount (as defined in the Indenture), (b) of the type and covering the
same risks as from time to time applicable to aircraft operated by JetBlue (or
any Permitted Lessee) of the same type which comprise JetBlue’s (or such
Permitted Lessee’s) fleet or owned or leased by air carriers with comparable
route structures flying similar aircraft on similar routes and (c) which
is maintained in effect with insurers or reinsurers of recognized
responsibility.  JetBlue shall maintain
cargo liability insurance in an amount not less than the amount of cargo
liability insurance maintained for other Similar Aircraft operated by JetBlue.

 

2.                                       During
any period that the Aircraft or an Engine is on the ground and not in operation,
JetBlue may carry or cause to be carried as to such non-operating property, in
lieu of the insurance required by paragraph 1 above, and subject to the
self-insurance to the extent permitted by Section B hereof, insurance otherwise
conforming to the provisions of said paragraph 1 except that (a) the
amounts of coverage shall not be required to exceed the amounts of bodily
injury liability and property damage liability insurance from time to time
applicable to aircraft or engines, as the case may be, owned or leased by
JetBlue (or any Permitted Lessee) of the same or similar type as the Aircraft
or Engine, as the case may be, which comprise JetBlue’s (or such Permitted
Lessee’s) fleet or owned or leased by air carriers with comparable route
structures flying similar aircraft on similar routes and which are on the
ground and not in operation and (b) the scope of the risks covered and the
type of insurance shall be the same as from time to time shall be applicable to
aircraft or engines, as the case may be, owned or leased by JetBlue (or any
Permitted Lessee) of the same or similar type which comprise JetBlue’s (or such
Permitted Lessee’s) fleet or owned or leased by air carriers with comparable
route structures flying similar aircraft on similar routes and which are on the
ground and not in operation.

 

1

 

B.                                     Self-Insurance.  JetBlue may self-insure, by way of
deductible, premium adjustment provisions in insurance policies, or otherwise,
under a program applicable to all aircraft in JetBlue’s fleet, the risks
required to be insured against pursuant to Section A hereof and Section B
of Annex B to each Indenture but in no case shall the self-insurance with
respect to the Aircraft exceed the lesser of (x) 50% of the largest
replacement value of any single aircraft in JetBlue’s fleet or (y) 1.5% of
the average aggregate insurable value (during the preceding calendar year) of
all aircraft on which JetBlue carries insurance, unless the Insurance Broker
shall certify that the standard among air carriers with comparable route
structures flying similar aircraft on similar routes is a higher level of
self-insurance, in which case JetBlue may self-insure the Aircraft to such
higher level; provided, however, that nothing contained in this Section B
limiting JetBlue’s right to self-insure shall be deemed to apply to any
mandatory minimum per aircraft (or, if applicable, per policy period or per
annum), hull or liability insurance deductible imposed by hull or liability
insurers that do not exceed industry standards for air carriers with comparable
route structures flying similar aircraft on similar routes.

 

2Exhibit 4.22

 

MBIA INSURANCE CORPORATION

 

FINANCIAL GUARANTY INSURANCE POLICY

 

November 15,
2004

 

Policy No. 45243

 

	
  Re:

  	
  JetBlue Airways Pass Through
  Trust 2004-2G-1 (the “Class G-1 Trust”) $176,753,000 Floating Rate
  JetBlue Airways Pass Through Certificates, Series 2004-2G-1 (the “Class
  G-1 Certificates”)

  
	
   

  	
   

  
	
  Insured Obligation:

  	
  Payment of interest at the
  Stated Interest Rate for the Class G-1 Certificates and, without duplication,
  any Deposit relating to the Escrow Receipts referred to below and principal on
  the Class G-1 Certificates.

  
	
   

  	
   

  
	
  Beneficiary:

  	
  Wilmington Trust Company, as
  subordination agent (together with any successor subordination agent duly
  appointed and qualified under the Agreement (as defined below), the “Subordination
  Agent”)

  

 

MBIA INSURANCE CORPORATION (“MBIA”), for
consideration received, hereby unconditionally, absolutely and irrevocably and
without the assertion of any defenses to payment, including fraud in the
inducement or fact or any other circumstances (other than payment in full) that
would have the effect of discharging a surety in law or in equity guarantees to
the Subordination Agent, subject only to the terms of this Policy (the “Policy”), payment of
the Insured Obligation.  MBIA agrees to
pay to the Subordination Agent, in respect of each Distribution Date, an amount
equal to (each a “Deficiency Amount”):

 

(i)       with
respect to any Regular Distribution Date other than the Final Legal
Distribution Date, any shortfall in amounts available to the Subordination
Agent (or, in the case of Escrow Receipts, the Paying Agent (as defined in the
Escrow and Paying Agent Agreement for the Class G-1 Trust)), after giving
effect to the subordination provisions of the Agreement and the application of
any amounts available to the Paying Agent in the Class G-1 Paying Agent
Account in respect of accrued interest at the Stated Interest Rate on the
Class G-1 Deposits, any drawing paid under the Class G-1 Primary Liquidity
Facility in respect of interest due on the Class G-1 Certificates on such
Distribution Date and any withdrawal from the Class G-1 Primary Cash Collateral
Account and the Class G-1 Above-Cap Account in respect of interest due on the
Class G-1 Certificates on such Distribution Date in accordance with the
Agreement, for the payment of accrued and unpaid interest on the Class G-1
Certificates and, without duplication, accrued and unpaid interest on any
Deposit relating to the Escrow Receipts (as defined in and issued under the
Escrow and Paying Agent Agreement for the Class G-1 Trust), in each case at the
Stated Interest Rate for the Class G-1 Certificates on the Pool Balance of the
Class G-1 Certificates on such Distribution Date;

 

 

(ii)      with
respect to any Special Distribution Date (other than an Election Distribution
Date or a Special Distribution Date established pursuant to the succeeding
clause (iv) below) established by reason of receipt of a Special Payment (other
than a Special Payment arising from the purchase of any Series G-1 Equipment
Notes by any or all of the Class C Certificateholders pursuant to Section 2.7
of the Agreement) constituting the proceeds of any Series G-1 Equipment Notes
(as to which there has been a default in the payment of principal thereof or
that has been accelerated) or the related Collateral, as the case may be, any
shortfall in the amounts available to the Subordination Agent after giving
effect to the subordination provisions of the Agreement, the application of any
amounts available to the Paying Agent in the Class G-1 Paying Agent
Account in respect of accrued interest at the Stated Interest Rate on the
Class G-1 Deposits and, if such Special Payment is received prior to a
Policy Provider Election with respect to such Series G-1 Equipment Note, any
drawing paid under the Class G-1 Primary Liquidity Facility in respect of
interest due on the Class G-1 Certificates on such Distribution Date and any
withdrawal from the Class G-1 Primary Cash Collateral Account and the Class G-1
Above-Cap Account in respect of interest due on the Class G-1 Certificates on such
Distribution Date in accordance with the Agreement, required to reduce the Pool
Balance of the Class G-1 Certificates by an amount equal to the outstanding
principal amount of such Series G-1 Equipment Note (determined immediately
prior to the receipt of such proceeds and less the amount of any drawings
previously paid by MBIA in respect of principal on such Series G-1 Equipment
Note) plus accrued and unpaid interest on the amount of such reduction at the
Stated Interest Rate for the Class G-1 Certificates for the period from the
immediately preceding Regular Distribution Date to such Special Distribution
Date; provided, however, that, notwithstanding anything to the
contrary herein, the purchase of any Series G-1 Equipment Notes by any or all
of the Class C Certificateholders pursuant to Section 2.7 of the Agreement
shall not result in a “Deficiency Amount” under this clause (ii) that is
payable by MBIA under this paragraph regardless of whether or not the proceeds
of such purchase, together with any other available funds, are sufficient to
reduce the Pool Balance of the Class G-1 Certificates by an amount equal to the
outstanding principal amount of such Series G-1 Equipment Notes (determined
immediately prior to the receipt of such proceeds and less the amount of any
drawings previously paid by MBIA in respect of principal on such Series G-1
Equipment Notes) plus accrued and unpaid interest on the amount of such
reduction at the Stated Interest Rate for the Class G-1 Certificates from the
period from the immediately preceding Regular Distribution Date to such Special
Distribution Date;

 

(iii)     with
respect to the Special Distribution Date established by reason of the failure
of the Subordination Agent or the Class G-1 Trustee, as the case may be, to
have received a Special Payment constituting the proceeds of any Series G-1
Equipment Note or the related Collateral (including, without limitation,
proceeds received in connection with the purchase by any or all of the Class C
Certificateholders of any Series G-1 Equipment Note pursuant to Section 2.7 of
the Agreement) during the twenty-one (21) month period beginning on the last
date on which full payment was made on such Series G-1 Equipment Note (the date
of such payment in full, the “Last Payment Date”) as to which there has
been a failure to pay principal or that has been accelerated subsequent to the
Last Payment Date, the amount equal to the outstanding principal amount of such

 

2

 

Series G-1 Equipment Note
plus accrued and unpaid interest thereon at the Stated Interest Rate for the
Class G-1 Certificates from the immediately preceding Regular Distribution Date
to such Special Distribution Date; provided, however, if MBIA
shall have duly given a Policy Provider Election (as defined below) with
respect to such Series G-1 Equipment Note at the end of such twenty-one (21)
month period and at least five (5) days prior to such Special Distribution
Date, the Deficiency Amount shall be an amount equal to (A) with respect to
such Special Distribution Date, the scheduled principal and interest payable
but not paid on such Series G-1 Equipment Note (without regard to the
acceleration thereof) during such twenty-one (21) month period (after giving
effect to the application of any drawing paid under the Class G-1 Primary
Liquidity Facility and any withdrawal from the Class G-1 Primary Cash
Collateral Account and the Class G-1 Above-Cap Account attributable to such
interest on such Series G-1 Equipment Note) and (B) thereafter, on each Regular
Distribution Date following such Special Distribution Date as to which a Policy
Provider Election has been given in respect of such Series G-1 Equipment Note,
and prior to the establishment of an Election Distribution Date or a Special
Distribution Date pursuant to the immediately succeeding clause (iv) with
respect to such Series G-1 Equipment Note, an amount equal to the scheduled
principal (without regard to the acceleration thereof) and interest payable on
such Series G-1 Equipment Note on the related payment date;

 

(iv)    following
the giving of any Policy Provider Election, with respect to any Business Day
elected by MBIA upon twenty (20) days prior notice (which shall be a Special
Distribution Date) and upon request by MBIA to the Subordination Agent to make
a drawing under this Policy, an amount equal to the then outstanding principal
balance of the Series G-1 Equipment Note as to which the Policy Provider
Election was given (less any drawings previously paid by MBIA in respect of principal
on such Series G-1 Equipment Note) and accrued and unpaid interest thereon at
the Stated Interest Rate for the Class G-1 Certificates from the immediately
preceding Regular Distribution Date to such Special Distribution Date;

 

(v)     with
respect to any Special Distribution Date which is an Election Distribution
Date, an amount equal to the then outstanding principal balance of the Series
G-1 Equipment Note as to which such Election Distribution Date relates (less
any drawing previously paid by MBIA in respect of principal of such Series G-1
Equipment Note) and accrued and unpaid interest thereon at the Stated Interest
Rate for the Class G-1 Certificates from the immediately preceding Regular
Distribution Date to such Election Distribution Date; and

 

(vi)    with
respect to the Final Legal Distribution Date, any shortfalls in amounts
available to the Subordination Agent after giving effect to the subordination
provisions of the Agreement and to the application of any amounts available to
the Escrow Agent in the Class G-1 Paying Agent Account in respect of accrued
interest on the Class G-1 Deposits, any drawing paid under the Class G-1
Primary Liquidity Facility in respect of interest included in the Final
Distribution and any withdrawal from the Class G-1 Primary Cash Collateral
Account and the Class G-1 Above-Cap Account in respect of interest included in
the Final Distribution in accordance with the Agreement, for the payment in
full of the Final Distribution (calculated as of such date but excluding any

 

3

 

accrued and unpaid
Additional Payments or other premium) on the Class G-1 Certificates or, in the
case that the full principal amount of the Class G-1 Deposit relating to the
Escrow Receipts is not used to purchase the Class G-1 Equipment Notes, then
with respect to the Final Withdrawal Date (as defined in the Escrow and Paying
Agent Agreement for the Class G-1 Trust), any shortfall in amounts available to
the Paying Agent for the payment in full of unpaid principal amount of the
Escrow Receipts.

 

For the avoidance of doubt, no Deficiency Amount described in clauses
(i)-(vi) above or payment to be made in respect of an Avoided Payment described
below shall constitute an accelerated or acceleration payment.

 

If any amount paid or required to be paid in respect of the Insured
Obligation is voided (a “Preference Event”) under any applicable
bankruptcy, insolvency, receivership or similar law in an Insolvency
Proceeding, and, as a result of such a Preference Event, the Beneficiary, the
Class G-1 Trustee or any Class G-1 Certificateholder is required to return such
voided payment, or any portion of such voided payment made or to be made in
respect of the Class G-1 Certificates (including any disgorgement from the Class
G-1 Certificateholders resulting from any such Insolvency Proceeding, whether
such disgorgement is determined on a theory of preferential conveyance or
otherwise) (an “Avoided Payment”), MBIA will pay an amount
equal to each such Avoided Payment, irrevocably, absolutely and unconditionally
and without the assertion of any defenses to payment, including fraud in
inducement or fact or any other circumstances that would have the effect of
discharging a surety in law or in equity, upon receipt by MBIA from the
Beneficiary, the Class G-1 Trustee or such Class G-1 Certificateholder of (x) a
certified copy of a final (non-appealable) order of a court exercising
jurisdiction in such Insolvency Proceeding to the effect that the Beneficiary,
the Class G-1 Trustee or such Class G-1 Certificateholder is required to return
any such payment or portion thereof because such payment was voided under
applicable law, with respect to which order the appeal period has expired
without an appeal having been filed (the “Final Order”), (y) an
assignment, in the form of Exhibit D hereto, irrevocably assigning to
MBIA all rights and claims of such Beneficiary, the Class G-1 Trustee or such
Class G-1 Certificateholder relating to or arising under such Avoided Payment
and (z) a Notice of Avoided Payment in the form of Exhibit B hereto
appropriately completed and executed by the Beneficiary, the Class G-1 Trustee
or such Class G-1 Certificateholder. 
Such payment shall be disbursed to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Final Order and not
to the Beneficiary, the Class G-1 Trustee or such Class G-1 Certificateholder
directly unless such Beneficiary, Class G-1 Trustee or Class G-1
Certificateholder has returned such payment to such receiver, conservator,
debtor-in-possession or trustee in bankruptcy, in which case such payment shall
be disbursed to such Class G-1 Certificateholder, the Class G-1 Trustee or the
Beneficiary, as the case may be.

 

Notwithstanding the foregoing, in no event shall MBIA be obligated to
make any payment in respect of any Avoided Payment, which payment represents a
payment of the principal amount of the Class G-1 Certificates, prior to the
time MBIA would have been required to make a payment in respect of such principal
pursuant to sub-paragraphs (ii)-(vi) of the definition of Deficiency Amount in
this Policy; provided, further, that no payment of principal
under this Policy on any Distribution Date, other than with respect to an
Avoided Payment, shall exceed the Net Principal Policy Amount (as defined
below) for such Distribution Date; provided,

 

4

 

further, that no
payment, other than with respect to an Avoided Payment, of a Deficiency Amount
shall be in excess of the then outstanding Pool Balance of the Class G-1
Certificates and accrued and unpaid interest thereon at the Stated Interest
Rate on the Class G-1 Certificates.  This
Policy does not cover (i) any premium, prepayment penalty or other accelerated
payment, which at any time may become due on or with respect to any Class G-1
Certificate, (ii) shortfalls, if any, attributable to the liability of the
Subordination Agent, the Class G-1 Trust or the Class G-1 Trustee for
withholding taxes, if any (including interest and penalties in respect of any
such liability) or (iii) any failure of the Subordination Agent or the Class
G-1 Trustee to make any payment due to the Class G-1 Certificateholders or, if
applicable, the holders of the Escrow Receipts from funds received.

 

Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in the Intercreditor Agreement (the “Agreement”), dated as of
November 15, 2004, among MBIA,
as Policy Provider, Wilmington Trust Company, as Trustee of the Trusts and
Subordination Agent, Landesbank Baden-Württemberg, as Primary Liquidity
Provider, and Citibank, N.A., as Above-Cap Liquidity Provider, without regard
to any amendment or supplement thereto unless such amendment or supplement has
been executed, or otherwise approved in writing, by MBIA.

 

“Business Day” shall mean any day other
than a Saturday, a Sunday or other day on which insurance companies in New
York, New York or commercial banking institutions in the cities in which the
corporate trust office of the Subordination Agent, the Fiscal Agent (as defined
herein) or the office of MBIA specified in this Policy are located are
authorized or obligated by law or executive order to close.

 

“Class G-1 Certificateholder” shall mean
any person who is the registered owner or beneficial owner of any of the Class
G-1 Certificates and who, on the applicable Distribution Date, is entitled
under the terms of the Class G-1 Certificates to payment thereunder.

 

“Election Distribution Date” shall mean
any Special Distribution Date established by the Subordination Agent upon 20
days’ notice to the Class G-1 Trustee and the Policy Provider by reason of the
occurrence and continuation of a Policy Provider Default occurring after a
Policy Provider Election.

 

“Final Legal Distribution Date” shall mean
February 15, 2018.

 

“Insolvency Proceeding” means the
commencement, after the date hereof, of any bankruptcy, insolvency,
readjustment of debt, reorganization, marshalling of assets and liabilities or
similar proceedings by or against JetBlue Airways Corporation or any Liquidity
Provider and the commencement, after the date hereof, of any proceedings by
JetBlue Airways Corporation or any Liquidity Provider, for the winding up or
liquidation of its affairs or the consent, after the date hereof, to the
appointment of a trustee, conservator, receiver, or liquidator in any
bankruptcy, insolvency, readjustment of debt, reorganization, marshalling of
assets and liabilities or similar proceedings of or relating to JetBlue Airways
Corporation or any Liquidity Provider.

 

“Insurance Agreement” shall mean
the Insurance and Indemnity Agreement (as may be amended, modified or
supplemented from time to time), dated as November 15, 2004, by

 

5

 

and among MBIA, JetBlue
Airways Corporation, the Class G-1 Trustee, the Class G-2 Trustee and the
Subordination Agent.

 

“Insured Amounts” shall mean, with respect
to any Distribution Date, the Deficiency Amount for such Distribution Date.

 

“Net Principal Policy Amount” shall mean
the Pool Balance of the Class G-1 Certificates as of the Closing Date minus
all amounts previously drawn on this Policy with respect to principal.

 

“Nonpayment” shall mean, with respect
to any Distribution Date, a Deficiency Amount owing to the Subordination Agent
for distribution to the Class G-1 Certificateholders or, if applicable, the
holders of the Escrow Receipts in respect of such Distribution Date.

 

“Notice of Avoided Payment” shall mean
the notice, substantially in the form of Exhibit B hereto, delivered
pursuant to this Policy and sent to the contact person at the address and/or
fax number set forth in this Policy, and specifying the Avoidance Payment which
shall be due and owing on the applicable Distribution Date.

 

“Notice of Nonpayment” shall mean
the notice, substantially in the form of Exhibit A hereto, delivered
pursuant to this Policy and sent to the contact person at the address and/or
fax numbers set forth in this Policy specifying the Insured Amount which shall
be due and owing to the Class G-1 Trustee (or the Paying Agent) for
distribution to the Class G-1 Certificateholders or, if applicable, the holders
of the Escrow Receipts on the applicable Distribution Date.

 

“Policy Provider Election” shall mean a
notice given by MBIA when no Policy Provider Default shall have occurred and be
continuing, stating that MBIA elects to make payments of Deficiency Amounts as
defined under the proviso to clause (iii) of the definition of Deficiency
Amount in respect of any Series G-1 Equipment Note in lieu of applying clause
(iii) (without the proviso) of the definition of Deficiency Amount, which
notice shall be given to the Subordination Agent not less than five (5) days
prior to the Special Distribution Date established for payment of a Deficiency
Amount under clause (iii) of the definition thereof.

 

“Trust Agreement” shall mean the Pass
Through Trust Agreement, Series 2004-2G-1, dated as of November 15, 2004, by and among JetBlue Airways
Corporation, and Wilmington Trust Company, as Trustee, pursuant to which the
Class G-1 Certificates have been issued.

 

Payment of amounts hereunder shall be made in immediately available
funds (x) with respect to Deficiency Amounts no later than 3:00 p.m., New York
City time, on the later of (a) the relevant Distribution Date and (b) the
Business Day of presentation to U.S. Bank Trust National Association, as fiscal
agent for MBIA or any successor fiscal agent appointed by MBIA (the “Fiscal Agent”), of a Notice
of Nonpayment, appropriately completed and executed by the Beneficiary (if such
Notice of Nonpayment is received by 1:00 p.m. on such day), and (y) with
respect to Avoided Payments, prior to 3:00 p.m. New York City time, on the
third Business Day following MBIA’s receipt of the documents required under
clauses (x) through (z) of the third paragraph of this Policy.  Any such documents received by MBIA after
1:00 p.m. New York

 

6

 

City time on any Business
Day or on any day that is not a Business Day shall be deemed to have been
received by MBIA prior to 1:00 p.m. on the next succeeding Business Day.  All payments made by MBIA hereunder in
respect of Avoided Payments will be made with MBIA’s own funds.  A Notice of Nonpayment or Notice of Avoided
Payment under this Policy may be presented to the Fiscal Agent on any Business
Day by (a) delivery of the original Notice of Nonpayment or Notice of Avoided
Payment to the Fiscal Agent at its address set forth below, or (b) facsimile
transmission of the original Notice of Nonpayment or Notice of Avoided Payment
to the Fiscal Agent at its facsimile number set forth below.  If presentation is made by facsimile
transmission, the Beneficiary shall (i) simultaneously confirm transmission by
telephone to the Fiscal Agent at its telephone number set forth below, and (ii)
as soon as reasonably practicable, deliver the original Notice of Nonpayment or
Notice of Avoided Payment to the Fiscal Agent at its address set forth
below.  Each Notice of Nonpayment or
Notice of Avoided Payment shall be delivered by facsimile and mail to MBIA
simultaneously with its delivery to the Fiscal Agent.

 

If any Notice of Nonpayment or Notice of Avoided Payment received by
the Fiscal Agent is not in proper form or is otherwise insufficient for the
purpose of making a claim hereunder, it shall be deemed not to have been
received by the Fiscal Agent, and MBIA or the Fiscal Agent, as the case may be,
shall promptly so advise the Beneficiary, and the Beneficiary may submit an
amended Notice of Nonpayment or Notice of Avoided Payment, as the case may be.

 

Payments due hereunder unless otherwise stated herein will be disbursed
by the Fiscal Agent to the Subordination Agent for the benefit of the Class G-1
Certificateholders or, if applicable, the holders of the Escrow Receipts by
wire transfer of immediately available funds in the amount of such
payment.  Other than amounts payable in
respect of Avoided Payments, MBIA’s obligations under this Policy shall be
discharged to the extent funds to be applied to pay the Insured Obligations
under and in accordance with the Agreement are received by the Subordination
Agent (including funds disbursed by MBIA as provided in this Policy and
received by the Subordination Agent) or the Paying Agent in accordance with the
Escrow and Paying Agent Agreement for the Class G-1 Trust whether or not such
funds are properly applied by the Subordination Agent, the Paying Agent or the
Class G-1 Trustee.  MBIA’s obligations to
make payments in respect of any Avoided Payments shall be discharged to the
extent such payments are made by MBIA hereunder and are received by the
Subordination Agent, the Class G-1 Trustee, the applicable Class G-1
Certificateholder or the receiver, conservator, debtor-in-possession or trustee
in bankruptcy as applicable, whether or not such payments are properly applied
by the Subordination Agent or the Class G-1 Trustee.

 

The Fiscal Agent is the agent of MBIA only, and the Fiscal Agent shall
in no event be liable to Class G-1 Certificateholders for any acts of the
Fiscal Agent or any failure of MBIA to deposit or cause to be deposited
sufficient funds to make payments due under this Policy.

 

Any notice hereunder delivered to the Fiscal Agent of MBIA may be made
at the address listed below for the Fiscal Agent of MBIA or such other address
as MBIA shall specify in writing to the Subordination Agent.

 

7

 

The notice address of the Fiscal Agent is 100 Wall Street, Suite 1600,
New York, New York 10005, Attention: Corporate Trust Services, Facsimile: (212)
361-6159, Telephone: (212) 361-6153.

 

All notices, presentations, transmissions, deliveries and
communications made by the Beneficiary to MBIA with respect to this Policy
shall specifically refer to the number of this Policy and shall be made to MBIA
at:

 

MBIA Insurance Corporation

113 King Street

Armonk, NY  10504

Attention:      Insured Portfolio
Management,

Structured Finance

Telephone:    (914) 273-4545

Facsimile:      (914) 765-3810

 

or such other address, telephone number or facsimile number as MBIA may
designate to the Beneficiary in writing from time to time.  Each such notice, presentation, transmission,
delivery and communication shall be effective only upon actual receipt by MBIA.

 

To the extent and in the manner specified in the Agreement or the
Escrow and Paying Agent Agreement for the Class G-1 Trust, MBIA shall be
subrogated to the rights of each Class G-1 Certificateholder to receive
payments under the Class G-1 Certificates and the Escrow Receipts to the extent
of any payment made by it hereunder.

 

This Policy is neither transferable nor assignable, in whole or in
part, except to a successor Subordination Agent duly appointed and qualified
under the Agreement.  Such transfer and
assignment shall be effective upon receipt by MBIA of a copy of the instrument
effecting such transfer and assignment signed by the transferor and by the
transferee, and a certificate, properly completed and signed by the transferor
and the transferee, in the form of Exhibit C hereto (which shall be
conclusive evidence of such transfer and assignment), and, in such case, the
transferee instead of the transferor shall, without the necessity of further
action, be entitled to all the benefits of and rights under this Policy in the
transferor’s place, provided  that, in such case, the Notice of
Nonpayment presented hereunder shall be a certificate of the transferee and
shall be signed by one who states therein that he is a duly authorized officer
of the transferee.

 

There shall be no acceleration payment due under this Policy unless
such acceleration is at the sole option of MBIA.

 

This Policy shall terminate and the obligations of MBIA hereunder shall
be discharged on the day (the “Termination Date”) which is one
year and one day following the Distribution Date upon which the Final
Distribution on the Class G-1 Certificates is made.  The foregoing notwithstanding, if an
Insolvency Proceeding is existing during the one year and one day period set
forth above, then this Policy and MBIA’s obligations hereunder shall terminate
on the later of (i) the date of the conclusion or dismissal of such Insolvency
Proceeding without continuing jurisdiction by the court in such Insolvency
Proceeding, and (ii) the date on which

 

8

 

MBIA has made all payments
required to be made under the terms of this Policy in respect of Avoided
Payments.

 

This Policy is not covered by the property/casualty insurance fund
specified in Article Seventy-Six of the New York State insurance law.

 

This Policy sets forth in full the undertaking of MBIA, and, except as
expressly provided in the Insurance Agreement and the Agreement, shall not be
modified, altered or affected by any other agreement or instrument, including
any modification or amendment to any other agreement or instrument, or by the
merger, consolidation or dissolution of JetBlue Airways Corporation or any
other Person and may not be canceled or revoked by MBIA prior to the time it is
terminated in accordance with the express terms hereof.  The Premium on this Policy is not refundable
for any reason.

 

This Policy shall be returned to MBIA upon termination.

 

THIS POLICY SHALL BE CONSTRUED, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED, IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OR
THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

 

9

 

IN WITNESS WHEREOF, MBIA has caused this Policy to be duly executed on
the date first written above.

 

	
   

  	
  MBIA
  INSURANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Neil G.
  Budnick

  	
   

  
	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Adam M. Carta

  	
   

  
	
   

  	
  Assistant
  Secretary

  
	
   

  	
   

  

 

 

Exhibit A to Policy Number 45243

 

NOTICE OF NONPAYMENT AND DEMAND

FOR PAYMENT OF INSURED AMOUNTS

 

Date:       [                  ]

 

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention:      Insured Portfolio
Management,

Structured
Finance

 

U.S.
Bank Trust National Association

100 Wall Street, Suite 1600

New York, New York 10005

Attention: Corporate Trust Services

 

Reference is made to Policy No. 45243, dated November 15, 2004 (the “Policy”), issued by
MBIA Insurance Corporation (“MBIA”) with respect
to the JetBlue Airways Pass Through Certificates, Series 2004-2G-1.  Terms capitalized herein and not otherwise
defined shall have the meanings ascribed to such terms in or pursuant to the
Policy unless the context otherwise requires.

 

The Subordination Agent hereby certifies as follows:

 

1.             The
Subordination Agent is the trustee for the Class G-1 Trust under the Class G-1
Trust Agreement.

 

2.             The
relevant Distribution Date is                  .  Such Distribution Date is a [Regular
Distribution Date, a Special Distribution Date, an Election Distribution Date
or the Final Legal Distribution Date].

 

[3.            Payment of accrued
and unpaid interest on the Class G-1 Certificates and, without duplication,
accrued and unpaid interest on any Deposit relating to the Escrow Receipts, in
each case at the Stated Interest Rate on the outstanding Pool Balance of the
Class G-1 Certificates accrued to the Distribution Date which is a Regular
Distribution Date as determined pursuant to paragraph (i) of the definition of “Deficiency
Amount” in the Policy is an amount equal to $                    .]

 

[3.            The amount
determined for payment to the Class G-1 Certificateholders pursuant to
paragraph (ii) of the definition of “Deficiency Amount” in the Policy on the
Distribution Date which is a Special Distribution Date in respect of a
reduction in the outstanding Pool Balance of such Class G-1 Certificates and
accrued and unpaid interest on the amount of such reduction at the Stated
Interest Rate for the Class G-1 Certificates is $                     .]

 

A-1

 

[3.            The Subordination
Agent has not received a timely Policy Provider Election pursuant to the Policy
and the amount determined for payment to the Class G-1 Certificateholders
pursuant to paragraph (iii) of the definition of “Deficiency Amount” in the
Policy on the Distribution Date which is a Special Distribution Date in respect
of the outstanding principal amount of the relevant Series G-1 Equipment
Note(s) and accrued and unpaid interest accrued thereon at the Stated Interest
Rate for the Class G-1 Certificates is $                 .]

 

[3.            The Subordination
Agent has received a timely Policy Provider Election pursuant to the Policy and
the amount determined for payment to the Class G-1 Certificateholders pursuant
to the provision in paragraph (iii)(A) of the definition of “Deficiency Amount”
in the Policy on the Distribution Date which is a Special Distribution Date in
respect of scheduled principal (without regard to acceleration thereof) and
interest at the Stated Interest Rate for the Class G-1 Certificates payable but
not paid on the relevant Series G-1 Equipment Note during the twenty-one (21)
month period referred to in such paragraph (iii) is $                 .]

 

[3.            The Subordination
Agent has received a timely Policy Provider Election pursuant to the Policy, no
Election Distribution Date has been established pursuant to the Policy or
Special Distribution Date established pursuant to clause (iv) of the definition
of “Deficiency Amount” and the amount determined for payment to the Class G-1 Certificateholders
pursuant to paragraph (iii)(B) of the definition of “Deficiency Amount” in the
Policy on the Distribution Date which is a Regular Distribution Date in respect
of scheduled principal (without regard to acceleration thereof) and interest payable
at the Stated Interest Rate for the Class G-1 Certificates due on the Regular
Distribution Date on the relevant Series G-1 Equipment Note is $                 .]

 

[3.            The Subordination
Agent has received a timely Policy Provider Election pursuant to the Policy,
the Special Distribution Date related hereto is a Business Day elected by MBIA
upon 20 days prior notice and the amount determined for payment to the Class
G-1 Certificateholders pursuant to paragraph (iv) of the definition of “Deficiency
Amount” in the Policy in respect of outstanding principal on such Series G-1
Equipment Note (less any drawings previously paid by MBIA in respect of
principal on such Series G-1 Equipment Note) and accrued and unpaid interest
thereon at the Stated Interest Rate for the Class G-1 Certificates from the
immediately preceding Regular Distribution Date to such Special Distribution
Date is $                 .]

 

[3.            The amount
determined for payment to the Class G-1 Certificateholders pursuant to
paragraph (v) of the definition of “Deficiency Amount” in the Policy on the
Distribution Date which is an Election Distribution Date in respect of the
outstanding principal balance of the relevant Series G-1 Equipment Note (less
any drawings previously paid by MBIA in respect of principal on such Series G-1
Equipment Note) and accrued and unpaid interest thereon at the Stated Interest
Rate for the Class G-1 Certificates from the immediately preceding Regular
Distribution Date to such Election Distribution Date is $                 .]

 

[3.            The amount
determined for payment to the Class G-1 Certificateholders pursuant to
paragraph (vi) of the definition of “Deficiency Amount” in the Policy on the
Distribution Date which is the Final Legal Distribution Date in respect of
payment in full of the

 

A-2

 

Final Distribution (other
than any Additional Payments or other premium) on the Class G-1 Certificates is
$                 .]

 

[3.            The amount
determined for payment to the holders of the Escrow Receipts pursuant to
paragraph (vi) of the definition of “Deficiency Amount” in the Policy on the
Final Withdrawal Date is $                     .]

 

4.             The sum of $                         
is the Insured Amount that is due.

 

5.             The Subordination
Agent has not heretofore made a demand for the Insured Amount in respect of
such Distribution Date.

 

6.             The Subordination
Agent hereby requests payment of such Insured Amount that is due for payment be
made by MBIA under the Policy and directs that payment under the Policy be made
to the following account by bank wire transfer of federal or other immediately
available funds in accordance with the terms of the Policy to:

 

[       ]

ABA #:  [           ]

Acct #:  [        ]

FBO:  [        ]

[Class G-1 Policy Account number]

 

7.             The Subordination
Agent hereby agrees that, following receipt of the Insured Amount from MBIA, it
shall (a) cause such funds to be deposited in the Class G-1 Policy Account and
not permit such funds to be held in any other account, (b) either
(i) cause such funds to be paid to the Class G-1 Trustee for distribution
to the Class G-1 Certificateholders in reduction of the Pool Balance of, or
interest on, the Class G-1 Certificates (as applicable) and not apply such
funds for any other purpose or (ii) cause such funds to be paid to the Class
G-1 Paying Agent for distribution to the holders of the Escrow Receipts in
payment of accrued and unpaid interest on any Deposit related to the Escrow
Receipts, or principal of the Escrow Receipts in each case in accordance with
the terms of the Agreement and (c) maintain an accurate record of such payments
with respect to the Class G-1 Certificates and Escrow Receipts the
corresponding claim on the Policy and proceeds thereof.

 

	
   

  	
  WILMINGTON TRUST COMPANY,  as

  Subordination Agent

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

Exhibit B to Policy Number 45243

 

NOTICE OF AVOIDED PAYMENT AND DEMAND

FOR PAYMENT OF AVOIDED PAYMENTS

 

Date:       [                        ]

 

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention:      Insured Portfolio
Management,

Structured
Finance

 

U.S.
Bank Trust National Association

100 Wall Street, Suite 1600

New York, New York 10005

Attention: Corporate Trust Services

 

Reference is made to Policy No. 45243, dated November 15, 2004 (the “Policy”), issued by
MBIA Insurance Corporation (“MBIA”) with respect
to the JetBlue Airways Pass Through Certificates, Series 2004-2G-1.  Terms capitalized herein and not otherwise
defined shall have the meanings ascribed to such terms in or pursuant to the
Policy unless the context otherwise requires.

 

The Subordination Agent hereby certifies as follows:

 

1.             The
Subordination Agent is the trustee for the Class G-1 Trustee under the Trust
Agreement.

 

2.             The
Subordination Agent has established                        
as a Special Distribution Date pursuant to the Agreement for amounts claimed
hereunder.

 

3.             A
Final Order providing for the recovery of an Avoided Payment of $                         
has been issued.

 

4.             $                       
of the amount set forth in item No. 3 above has been paid by the [Class G-1
Certificateholder/Class G-1 Trustee/Subordination Agent] and $                       
is required to be paid to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy named in the Final Order.

 

5.             The
[Class G-1 Certificateholder/Class G-1 Trustee/Subordination Agent] has not
heretofore made a demand for such Avoided Payment.

 

6.             The
[Class G-1 Certificateholder/Class G-1 Trustee/Subordination Agent] has
delivered to MBIA or has attached hereto all documents required by the Policy
to be delivered in connection with such Avoided Payment.

 

B-1

 

7.             The
[Class G-1 Certificateholder/Class G-1 Trustee/Subordination Agent] hereby
requests that payment of $                       
of such Avoided Payment be made to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Final Order and $                       
of such Avoided Payment be paid to the [Class G-1 Certificateholder] [Class G-1
Trustee] [Subordination Agent [for payment over to the Class G-1 Trustee] for
distribution to the Class G-1 Certificateholder], in each case, by MBIA under
the Policy and directs that payment under the Policy be made to the following
account by bank wire transfer of federal or other immediately available funds
in accordance with the terms of the Policy to:

 

For the portion to be paid to the receiver, conservator, debtor-in-possession
or trustee, to                                  :

 

ABA #:  [          ]

Acct #:  [         ]

FBO:  [          ]

 

[relevant account number]

 

For the portion to be paid to the Subordination Agent:

 

ABA #:  [           ]

Acct #:  [         ]

FBO:  [         ]

 

[Class G-1 Policy Account Number]

 

	
   

  	
  [Name
  of Subordination Agent]

  
	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
  (Officer)

  	
   

  
					

 

B-2

 

Exhibit C to Policy Number 45243

 

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention:      Insured Portfolio
Management, Structured Finance

 

Dear Sirs:

 

Reference is made to that certain Policy, Number 45243, dated November 15, 2004 (the “Policy”), which has
been issued by MBIA Insurance Corporation in favor of the Subordination Agent
with respect to the JetBlue Airways Pass Through Certificates, Series
2004-2G-1.

 

The undersigned [Name of Transferor] has transferred and assigned (and
hereby confirms to you said transfer and assignment) all of its rights in and
under said Policy to [Name of Transferee] and confirms that [Name of
Transferor] no longer has any rights under or interest in said Policy.

 

Transferor and Transferee have indicated on the face of said Policy
that it has been transferred and assigned to Transferee.

 

Transferee hereby certifies that it is a duly authorized transferee
under the terms of said Policy and is accordingly entitled, upon presentation
of the document(s) called for therein, to receive payment thereunder.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  [Name
  of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  [Name and Title of Authorized Officer of

  Transferor]

  
						

 

C-1

 

Exhibit D to Policy Number 45243

 

Form of Assignment

 

Reference is made to that certain Policy No. 45243, dated November 15,
2004 (the “Policy”), issued by MBIA Insurance
Corporation (“MBIA”) relating to the JetBlue
Airways Pass Through Certificates, Series 2004-2G-1.  Unless otherwise defined herein, capitalized
terms used in this Assignment shall have the meanings assigned thereto in the
Policy as incorporated by reference therein. 
In connection with the Avoided Payment of [$              ]
paid by the undersigned (the “[Class G-1 Certificateholder/Class G-1
Trustee/Beneficiary]”) on [            ]
and the payment by MBIA in respect of such Avoided Payment pursuant to the
Policy, the [Class G-1 Certificateholder/Class G-1 Trustee/Beneficiary] hereby
irrevocably and unconditionally, without recourse, representation or warranty
(except as provided below), sells, assigns, transfers, conveys and delivers to
MBIA all of such [Class G-1 Certificateholder’s/Class G-1 Trustee’s/Beneficiary’s]
rights, title and interest in and to any rights or claims, whether accrued,
contingent or otherwise, which the [Class G-1 Certificateholder/Class G-1 Trustee/Beneficiary]
now has or may hereafter acquire, against any person relating to, arising out
of or in connection with such Avoided Payment. 
The [Class G-1 Certificateholder/Class G-1 Trustee/Beneficiary] represents
and warrants that such claims and rights are free and clear of any lien or
encumbrance created or incurred by such [Class G-1 Certificateholder/Class G-1
Trustee/Beneficiary].(1)

 

	
   

  	
  [Class G-1
  Certificateholder/Class G-1

  Trustee/Beneficiary]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  [Name and Title of Authorized Officer of

  Transferor]

  

 

(1)           In the event that the terms of this
form of assignment are reasonably determined to be insufficient solely as a
result of a change of law or applicable rules after the date of the Policy to
fully vest all of the [Class G-2 Certificateholder’s/Class G-2
Trustee’s/Beneficiary’s] right, title and interest in such rights and claims,
the [Class G-2 Certificateholder/Class G-2 Trustee/Beneficiary] and MBIA shall
agree on such other form as is reasonably necessary to effect such assignment,
which assignment shall be without recourse, representation or warranty except
as provided above.

 

D-1

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