Document:

clcs_ex1059.htm

EXHIBIT 10.59
   
 WARRANT
  
 	 NO. ________
	  
	 ______ Shares

   
 WARRANT TO PURCHASE COMMON STOCK
  
 VOID AFTER 5:30 P.M., EASTERN
  
 TIME, ON THE EXPIRATION DATE
  
 THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
  
 FOR VALUE RECEIVED, Cell Source, Inc. a Nevada corporation (the “Company”), hereby agrees to sell upon the terms and on the conditions hereinafter set forth, but no later than 5:30 p.m., Eastern Time, on the Expiration Date (as hereinafter defined) to _____________ or registered assigns (the “Holder”), under the terms as hereinafter set forth, _________________ (___________) fully paid and non-assessable shares of the Company’s common stock (the “Common Stock”), par value $0.001 per share (the “Warrant Stock”), at a purchase price of $1.25 per share (the “Warrant Price”), pursuant to this warrant (this “Warrant”). The number of shares of Warrant Stock to be so issued and the Warrant Price are subject to adjustment in certain events as hereinafter set forth. The term “Common Stock” shall mean, when used herein, unless the context otherwise requires, the stock and other securities and property at the time receivable upon the exercise of this Warrant.
  
 	 
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 1. Exercise of Warrant and Redemption of Warrant.
  
 a. The Holder may exercise this Warrant according to its terms by surrendering this Warrant to the Company at the address set forth in Section 10, the Notice of Exercise attached hereto having then been duly executed by the Holder, accompanied by cash, certified check or bank draft in payment of the purchase price, in lawful money of the United States of America, for the number of shares of the Warrant Stock specified in the Notice of Exercise, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern Time, on October __, 2025 (the “ Expiration Date “). 
  
 This Warrant may be exercised in whole or in part so long as any exercise in part hereof would not involve the issuance of fractional shares of Warrant Stock. If exercised in part, the Company shall deliver to the Holder a new Warrant, identical in form, in the name of the Holder, evidencing the right to purchase the number of shares of Warrant Stock as to which this Warrant has not been exercised, which new Warrant shall be signed by the Chairman, Chief Executive Officer or President and the Secretary or Assistant Secretary of the Company. The term Warrant as used herein shall include any subsequent Warrant issued as provided herein.
  
 b. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. The Company shall pay cash in lieu of fractions with respect to the Warrants based upon the fair market value of such fractional shares of Common Stock (which shall be the closing price of such shares on the exchange or market on which the Common Stock is then traded) at the time of exercise of this Warrant.
  
 c. In the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Stock so purchased, registered in the name of the Holder, shall be delivered to the Holder within three (3) trading days after such rights shall have been so exercised (the “Warrant Stock Delivery Date”). The person or entity in whose name any certificate for the Warrant Stock is issued upon exercise of the rights represented by this Warrant shall for all purposes be deemed to have become the holder of record of such shares immediately prior to the close of business on the date on which the Warrant was surrendered and payment of the Warrant Price and any applicable taxes was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the opening of business on the next succeeding date on which the stock transfer books are open. The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Common Stock on exercise of this Warrant.
  
 	 
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 d. In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates representing the Warrant Stock pursuant to an exercise on or prior to the Warrant Stock Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Stock which the Holder anticipated receiving upon such exercise (a “ Buy-In “), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of shares of Warrant Stock that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of shares of Warrant Stock for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.
  
 e. Redemption of Warrant
  
 (i) General. Prior to the Expiration Date, the Company shall have the option, subject to the conditions set forth herein, to redeem all of the Warrants then outstanding upon not less than thirty (30) days nor more than sixty (60) days prior written notice to the Warrant Holders at any time provided that, at the time of delivery of such notice (i) there is an effective registration statement covering the resale of the Warrant Shares, and (ii) the average trading price of the Company’s Common Stock , or shares into which the Common Stock have been exchanged, for each of the twenty (20) consecutive trading days prior to the date of the notice of redemption is at least $2.50, as proportionately adjusted to reflect any stock splits, stock dividends, combination of shares or like events, with an average daily trading volume during such period of 100,000 shares.
  
 (ii) Notice. Notice of redemption will be effective upon mailing in accordance with this Section and such date may be referred to below as the “Notice Date.” Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than 30 days prior to the date fixed for redemption to the Holders of the Warrants to be redeemed at their last addresses as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder received such notice.
  
 	 
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 (iii) Redemption Date and Redemption Price. The notice of redemption shall state the date set for redemption, which date shall be not less than thirty (30) days, or more than sixty (60) days, from the Notice Date (the “Redemption Date”). The Company shall not mail the notice of redemption unless all funds necessary to pay for redemption of the Warrants to be redeemed shall have first been set aside by the Company for the benefit of the Warrant Holders so as to be and continue to be available therefor. The redemption price to be paid to the Warrant Holders will be $0.01 for each share of Common Stock of the Company to which the Warrant Holder would then be entitled upon exercise of the Warrant being redeemed, as adjusted from time to time as provided herein (the “Redemption Price”).
  
 (iv) Exercise. Following the Notice Date, the Warrant Holders may exercise their Warrants in accordance with Section 1 of this Warrant between the Notice Date and 5:00 p.m. Eastern Time on the Redemption Date and such exercise shall be timely if the form of election to purchase duly executed and the Warrant Exercise Price for the shares of Common Stock to be purchased are actually received by the Company at its principal offices prior to 5:00 p.m. Eastern Time on the Redemption Date.
  
 (v) Mailing. If any Warrant Holder does not wish to exercise any Warrant being redeemed, he should mail such Warrant to the Company at its principal offices after receiving the notice of redemption. On and after 5:00 p.m. Eastern Time on the Redemption Date, notwithstanding that any Warrant subject to redemption shall not have been surrendered for redemption, the obligation evidenced by all Warrants not surrendered for redemption or effectively exercised shall be deemed no longer outstanding, and all rights with respect thereto shall forthwith cease and terminate, except only the right of the holder of each Warrant subject to redemption to receive the Redemption Price for each share of Common Stock to which he would be entitled if he exercised the Warrant upon receiving notice of redemption of the Warrant subject to redemption held by him.
  
 2. Disposition of Warrant Stock and Warrant.
  
 a. The Holder hereby acknowledges that this Warrant and any Warrant Stock purchased pursuant hereto are, as of the date hereof, not registered: (i) under the Securities Act of 1933, as amended (the “Securities Act”), on the ground that the issuance of this Warrant is exempt from registration under Section 4(2) of the Securities Act as not involving any public offering or (ii) under any applicable state securities law because the issuance of this Warrant does not involve any public offering; and that the Company’s reliance on the Section 4(2) exemption of the Act, as the case may be, and under applicable state securities laws is predicated in part on the representations hereby made to the Company by the Holder that it is acquiring this Warrant and will acquire the Warrant Stock for investment for its own account, with no present intention of dividing its participation with others or reselling or otherwise distributing the same, subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be within its control.
  
 	 
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 The Holder hereby agrees that it will not sell or transfer all or any part of this Warrant and/or Warrant Stock unless and until it shall first have given notice to the Company describing such sale or transfer and furnished to the Company either (i) an opinion, reasonably satisfactory to counsel for the Company, of counsel (skilled in securities matters, selected by the Holder) to the effect that the proposed sale or transfer may be made without registration under the Act and without registration or qualification under any state law, or (ii) an interpretative letter from the Securities and Exchange Commission to the effect that no enforcement action will be recommended if the proposed sale or transfer is made without registration under the Act.
  
 b. If, at the time of issuance of the shares issuable upon exercise of this Warrant, no registration statement is in effect with respect to such shares under applicable provisions of the Act, the Company may at its election require that the Holder provide the Company with written reconfirmation of the Holder’s investment intent and that any stock certificate delivered to the Holder of a surrendered Warrant shall bear legends reading substantially as follows:
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.”
  
 In addition, so long as the foregoing legend may remain on any stock certificate delivered to the Holder, the Company may maintain appropriate “stop transfer” orders with respect to such certificates and the shares represented thereby on its books and records and with those to whom it may delegate registrar and transfer functions.
  
 3. Reservation of Shares. The Company hereby agrees that at all times there shall be reserved for issuance upon the exercise of this Warrant such number of shares of its Common Stock as shall be required for issuance upon exercise of this Warrant. The Company further agrees that all shares which may be issued upon the exercise of the rights represented by this Warrant will be duly authorized and will, upon issuance and against payment of the exercise price, be validly issued, fully paid and non-assessable, free from all taxes, liens, charges and preemptive rights with respect to the issuance thereof, other than taxes, if any, in respect of any transfer occurring contemporaneously with such issuance and other than transfer restrictions imposed by federal and state securities laws.
  
 	 
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 4. Exchange, Transfer or Assignment of Warrant. This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants of different denominations, entitling the Holder or Holders thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder. Upon surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall promptly be canceled. This Warrant may be divided or combined with other Warrants that carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by the Holder hereof.
  
 5. Capital Adjustments. This Warrant is subject to the following further provisions:
  
 a. Subdivision or Combination of Shares. If the Company at any time while this Warrant remains outstanding and unexpired shall subdivide or combine its Common Stock, the number of shares of Warrant Stock purchasable upon exercise of this Warrant and the Warrant Price shall be proportionately adjusted.
  
 b. Stock Dividends and Distributions. If the Company at any time while this Warrant is outstanding and unexpired shall issue or pay the holders of its Common Stock, or take a record of the holders of its Common Stock for the purpose of entitling them to receive, a dividend payable in, or other distribution of, Common Stock, then (i) the Warrant Price shall be adjusted in accordance with Section 5(f) and (ii) the number of shares of Warrant Stock purchasable upon exercise of this Warrant shall be adjusted to the number of shares of Common Stock that the Holder would have owned immediately following such action had this Warrant been exercised immediately prior thereto.
  
 c. Stock and Rights Offering to Shareholders. If the Company shall at any time after the date of issuance of this Warrant distribute to all holders of its Common Stock any shares of capital stock of the Company (other than Common Stock) or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year’s or prior year’s earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to in the immediately preceding paragraph) (any of the foregoing being hereinafter in this paragraph called the “Securities”), then in each such case, the Company shall reserve shares or other units of such Securities for distribution to the Holder upon exercise of this Warrant so that, in addition to the shares of the Common Stock to which such Holder is entitled, such Holder will receive upon such exercise the amount and kind of such Securities which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant.
  
 	 
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 d. Warrant Price Adjustment. Except as otherwise provided herein, whenever the number of shares of Warrant Stock purchasable upon exercise of this Warrant is adjusted, as herein provided, the Warrant Price payable upon the exercise of this Warrant shall be adjusted to that price determined by multiplying the Warrant Price immediately prior to such adjustment by a fraction (i) the numerator of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately prior to such adjustment, and (ii) the denominator of which shall be the number of shares of Warrant Stock purchasable upon exercise of this Warrant immediately thereafter.
  
 e. Certain Shares Excluded. The number of shares of Common Stock outstanding at any given time for purposes of the adjustments set forth in this Section 5 shall exclude any shares then directly or indirectly held in the treasury of the Company.
  
 f. Deferral and Cumulation of De Minimis Adjustments. The Company shall not be required to make any adjustment pursuant to this Section 5 if the amount of such adjustment would be less than one percent (1%) of the Warrant Price in effect immediately before the event that would otherwise have given rise to such adjustment. In such case, however, any adjustment that would otherwise have been required to be made shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to not less than one (1%) percent of the Warrant Price in effect immediately before the event giving rise to such next subsequent adjustment.
  
 g. Duration of Adjustment. Following each computation or readjustment as provided in this Section 5, the new adjusted Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant shall remain in effect until a further computation or readjustment thereof is required.
  
 6. Limitation on Exercises.
  
 a. Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion of the Warrant be exercised if the number of shares of Common Stock to be issued pursuant to such exercise would exceed, when aggregated with all other shares of Common Stock owned by the Holder at such time, the number of shares of Common Stock which would result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules thereunder) more than 4.99% of all of the Common Stock outstanding at such time; provided , however , that upon the Holder providing the Corporation with sixty-one (61) days’ advance notice (the “4.99% Waiver Notice”) that the Holder would like to waive this Section 6 (a) with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this Section 6 (a) will be of no force or effect with regard to all or a portion of this Warrant referenced in the 4.99% Waiver Notice.
  
 	 
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 b. Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion of this Warrant be exercised if the number of shares of Common Stock to be issued pursuant to such exercise, when aggregated with all other shares of Common Stock owned by the Holder at such time, would result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.99% of the then issued and outstanding shares of Common Stock outstanding at such time (the “ 9.99% Beneficial Ownership Limitation “ and the lower of the 9.99% Beneficial Ownership Limitation and the 4.99% Beneficial Ownership Limitation then in effect, the “ Maximum Percentage “).
  
 c. By written notice to the Company, the Holder may from time to time decrease the Maximum Percentage to any other percentage specified in such notice
  
 d. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) business day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 6 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.
  
 7. Notice to Holders.
  
 a. Notice of Record Date. In case:
  
 (i) the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the exercise of this Warrant) for the purpose of entitling them to receive any dividend (other than a cash dividend payable out of earned surplus of the Company) or other distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right;
  
 (ii) of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation with or merger of the Company into another corporation, or any conveyance of all or substantially all of the assets of the Company to another corporation; or
  
 	 
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 (iii) of any voluntary dissolution, liquidation or winding-up of the Company;
  
 then, and in each such case, the Company will mail or cause to be mailed to the Holder hereof at the time outstanding a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any, is to be fixed, as of which the holders of record of Common Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution or winding-up. Such notice shall be mailed at least thirty (30) days prior to the record date therein specified, or if no record date shall have been specified therein, at least thirty (30) days prior to such specified date, provided, however, failure to provide any such notice shall not affect the validity of such transaction.
  
 b. Certificate of Adjustment. Whenever any adjustment shall be made pursuant to Section 5 hereof, the Company shall promptly make a certificate signed by its Chairman, Chief Executive Officer, President, Vice President, Chief Financial Officer or Treasurer, setting forth in reasonable detail the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated and the Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant after giving effect to such adjustment, and shall promptly cause copies of such certificates to be mailed (by first class mail, postage prepaid) to the Holder of this Warrant.
  
 8. Loss, Theft, Destruction or Mutilation. Upon receipt by the Company of evidence satisfactory to it, in the exercise of its reasonable discretion, of the ownership and the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, of indemnity reasonably satisfactory to the Company and, in the case of mutilation, upon surrender and cancellation thereof, the Company will execute and deliver in lieu thereof, without expense to the Holder, a new Warrant of like tenor dated the date hereof.
  
 9. Warrant Holder Not a Stockholder. The Holder of this Warrant, as such, shall not be entitled by reason of this Warrant to any rights whatsoever as a stockholder of the Company.
  
 10. Notices. Any notice required or contemplated by this Warrant shall be deemed to have been duly given if transmitted by registered or certified mail, return receipt requested, or nationally recognized overnight delivery service, to the Company at its principal executive offices, Attn: Chief Executive Officer, or to the Holder at the name and address set forth in the Warrant Register maintained by the Company.
  
 11. Choice of Law. THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.
  
 12. Jurisdiction and Venue. The Company and Holder hereby agree that any dispute which may arise between them arising out of or in connection with this Warrant shall be adjudicated before a court located in New York County, New York and they hereby submit to the exclusive jurisdiction of the federal and state courts of the State of York located in New York County with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum, relating to or arising out of this Warrant or any acts or omissions relating to the sale of the securities hereunder, and consent to the service of process in any such action or legal proceeding by means of registered or certified mail, return receipt requested, in care of the address set forth herein or such other address as either party shall furnish in writing to the other.
  
 13. Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent signed by both (a) the Company and (b) holders of Warrants representing a majority of the Warrant Stock then outstanding and not exercised
    
 [Signature Page Follows]
   
 	 
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 IN WITNESS WHEREOF, the Company has duly caused this Warrant to be signed on its behalf, in its corporate name and by its duly authorized officers, as of this ____ day of October, 2020 .
  
 	 	 	 	 
		By:		
	  
	 Name: 
	Itamar Shimrat	 
	 	Title: 	CEO 	 

  
 	 
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 NOTICE OF EXERCISE
  
 TO: 
    
 Tel: (___) ___-____
  
 Fax: (___) ___-____
  
 (1) The undersigned hereby elects to purchase ______________ shares of Warrant Stock of the Company pursuant to the terms of the attached Warrant to Purchase Common Stock, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
  
 (2) Payment shall be in the form of lawful money of the United States.
  
 Please issue a certificate or certificates representing said shares of Warrant Stock in the name of the undersigned or in such other name as is specified below:
  
 The shares of Warrant Stock shall be delivered to the following DWAC Account Number, if permitted, or by physical delivery of a certificate to:
  
 (3) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.
  
 [SIGNATURE OF HOLDER]
  
 Name of Investing Entity:_________________
  
 Signature of Authorized Signatory of Investing Entity: ___________________________
  
 Name and Title of Authorized Signatory: _________________________
  
 Date:
   
 	 
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 ASSIGNMENT FORM
  
 (To assign the foregoing warrant, execute
  
 this form and supply required information.
  
 Do not use this form to exercise the warrant.)
  
 FOR VALUE RECEIVED, all of or _________ shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to
  
 ________________________________whose address is
  
 _____________________________________________
  
 _____________________________________________
  
 Dated: _________, 
 Holder’s Name: ____________
  
 Holder’s Signature: _________________
  
 Name and Title of Signatory:__________
  
 Holder’s Address:
  
 Signature Guaranteed:
  
 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.
   
 	 
	12Exhibit 4.1

         

        

        EXECUTION VERSION

         

        

      

      Dated as of  October 15, 2020

       

      FLY WILLOW FUNDING LIMITED,

       

      FLY LEASING LIMITED,

       

      FLY WILLOW AIRCRAFT HOLDINGS DAC,

       

      and

       

      THE ADDITIONAL GRANTORS REFERRED TO HEREIN

      as the Grantors

       

      and

       

      BANK OF UTAH,

      as the Collateral Agent

       

      
        
AIRCRAFT MORTGAGE AND SECURITY 

      AGREEMENT
        

       

        

      
        
          

      

      
      TABLE OF CONTENTS

       

      	 	 	
              Page

            
	 	 
	
              Article I DEFINITIONS

            	
              1

            
	 	 
	
              Section 1.01.

            	
              Definitions

            	
              1

            
	
              Section 1.02.

            	
              Construction and Usage

            	
              7

            
	 	 	 
	
              Article II SECURITY

            	
              8

            
	 	 
	
              Section 2.01.

            	
              Grant of Security

            	
              8

            
	
              Section 2.02.

            	
              Security for Obligations

            	
              11

            
	
              Section 2.03.

            	
              Representations and Warranties of the Grantors

            	
              11

            
	
              Section 2.04.

            	
              Grantors Remain Liable

            	
              13

            
	
              Section 2.05.

            	
              Delivery of Collateral

            	
              13

            
	
              Section 2.06.

            	
              As to the Assigned Documents

            	
              14

            
	
              Section 2.07.

            	
              As to Beneficial Interest Collateral

            	
              15

            
	
              Section 2.08.

            	
              Further Assurances

            	
              16

            
	
              Section 2.09.

            	
              Place of Perfection; Records

            	
              18

            
	
              Section 2.10.

            	
              Voting Rights; Dividends; Etc

            	
              18

            
	
              Section 2.11.

            	
              Transfers and Other Liens; Additional Shares or Interests

            	
              19

            
	
              Section 2.12.

            	
              Collateral Agent Appointed Attorney-in-Fact

            	
              19

            
	
              Section 2.13.

            	
              Collateral Agent May Perform

            	
              20

            
	
              Section 2.14.

            	
              Covenant to Pay

            	
              20

            
	
              Section 2.15.

            	
              Delivery of Collateral Supplements

            	
              20

            
	
              Section 2.16.

            	
              Operational Covenants

            	
              21

            
	
              Section 2.17.

            	
              Insurance

            	
              23

            
	
              Section 2.18.

            	
              As to Irish Law

            	
              23

            
	
              Section 2.19.

            	
              Irish Charge Over Shares

            	
              24

            
	
              Section 2.20.

            	
              [Reserved]

            	
              24

            
	
              Section 2.21.

            	
              [Reserved].

            	
              24

            
	
              Section 2.22.

            	
              Other Jurisdiction Share Charge

            	
              24

            
	
              Section 2.23.

            	
              Investment of Security Funds

            	
              24

            
	
              Section 2.24.

            	
              Covenant Regarding Control

            	
              24

            
	
              Section 2.25.

            	
              Security Documents

            	
              24

            

      

      

      
        - i -

        
          

      

      
      	
              Article III REMEDIES

            	
              25

            
	 	 
	
              Section 3.01.

            	
              Remedies

            	
              25

            
	
              Section 3.02.

            	
              Priority of Payments

            	
              26

            
	 	 	 
	
              Article IV SECURITY INTEREST ABSOLUTE

            	
              26

            
	 	 
	
              Section 4.01.

            	
              Security Interest Absolute

            	
              26

            
	 	 	 
	
              Article V THE COLLATERAL AGENT

            	
              27

            
	 	 
	
              Section 5.01.

            	
              Authorization and Action

            	
              27

            
	
              Section 5.02.

            	
              Absence of Duties

            	
              27

            
	
              Section 5.03.

            	
              Representations or Warranties

            	
              28

            
	
              Section 5.04.

            	
              Reliance; Agents; Advice of Counsel

            	
              28

            
	
              Section 5.05.

            	
              Cape Town Convention

            	
              29

            
	
              Section 5.06.

            	
              No Individual Liability

            	
              29

            
	 	 	 
	
              Article VI SUCCESSOR COLLATERAL AGENT

            	
              29

            
	 	 
	
              Section 6.01.

            	
              Resignation and Removal of the Collateral Agent

            	
              29

            
	
              Section 6.02.

            	
              Appointment of Successor

            	
              30

            
	 	 	 
	
              Article VII INDEMNITY AND EXPENSES

            	
              31

            
	 	 
	
              Section 7.01.

            	
              Indemnity

            	
              31

            
	
              Section 7.02.

            	
              Secured Parties' Indemnity

            	
              31

            
	
              Section 7.03.

            	
              No Compensation from Secured Parties

            	
              32

            
	
              Section 7.04.

            	
              Collateral Agent Fees

            	
              32

            
	 	 	 
	
              Article VIII MISCELLANEOUS

            	
              32

            
	 	 
	
              Section 8.01.

            	
              Amendments; Waivers; Etc

            	
              32

            
	
              Section 8.02.

            	
              Addresses for Notices

            	
              33

            
	
              Section 8.03.

            	
              No Waiver; Remedies

            	
              35

            
	
              Section 8.04.

            	
              Severability

            	
              35

            
	
              Section 8.05.

            	
              Continuing Security Interest; Assignments

            	
              35

            
	
              Section 8.06.

            	
              Release and Termination

            	
              35

            
	
              Section 8.07.

            	
              Currency Conversion

            	
              36

            
	
              Section 8.08.

            	
              Governing Law

            	
              36

            
	
              Section 8.09.

            	
              Jurisdiction; Consent to Service of Process

            	
              37

            
	
              Section 8.10.

            	
              Counterparts

            	
              37

            
	
              Section 8.11.

            	
              Table of Contents, Headings, Etc

            	
              37

            
	
              Section 8.12.

            	
              Non-Invasive Provisions

            	
              37

            
	
              Section 8.13.

            	
              Limited Recourse

            	39

      

      

      
        - ii -

        
          

      

      
      
        SCHEDULES

      

       

      

      	
              Schedule I

            	
              Aircraft, Airframes and Engines

            	 
	
              Schedule II

            	
              Pledged Stock, Pledged Beneficial Interest and Pledged Membership Interests

            	 
	
              Schedule III

            	
              Trade Names

            	 
	
              Schedule IV

            	
              Chief Place of Business and Chief Executive or Registered Office

            	 
	
              Schedule V

            	
              Insurance

            	 

      

      

      
        EXHIBITS

         

        

      

      	
              Exhibit A-1

            	
              Form of Collateral Supplement

            
	
              Exhibit A-2

            	
              Form of Grantor Supplement

            
	
              Exhibit B

            	
              Form of Consent and Agreement

            
	
              Exhibit C

            	
              Form of FAA Aircraft Mortgage

            
	
              Exhibit D

            	
              Form of FAA Aircraft Mortgage and Lease Security Assignment

            
	
              Exhibit E

            	
              Form of FAA Lease Security Assignment

            
	
              Exhibit F-1

            	
              Form of Notice of Assignment

            
	
              Exhibit F-2

            	
              Form of Lessee Acknowledgment

            
	
              Exhibit G

            	
              Form of Irish Charge Over Shares

            
	
              Exhibit H

            	
              Form of Cayman Islands Charge Over Shares

            

       

      

      
        - iii -

        
          

      

      
      This AIRCRAFT MORTGAGE AND SECURITY AGREEMENT (this "Agreement"), dated as of October 15, 2020, is made among (i) FLY WILLOW FUNDING LIMITED, an exempted
        company incorporated with limited liability under the laws of the Cayman Islands (the "Borrower"), (ii) FLY LEASING LIMITED, a company incorporated under the laws of Bermuda ("FLL"),

        (iii) FLY WILLOW AIRCRAFT HOLDINGS DAC, a designated activity company incorporated under the laws of Ireland ("FWAH"), (iv) the ADDITIONAL GRANTORS who from time to time become
        grantors under this Agreement (together with the Borrower, FLL, FWAH, the "Grantors"), and (v) BANK OF UTAH, a Utah corporation ("Bank of Utah"), not in its individual
        capacity except as expressly provided herein, as the collateral agent (in such capacity, and together with any permitted successor or assign thereto or any permitted replacement thereof, the "Collateral Agent").

       

      PRELIMINARY STATEMENTS:

       

      (1)          The Borrower, FLL, FWAH, the lenders from time to time party thereto (the "Lenders"), Royal Bank of Canada, as the administrative agent (in such
        capacity, the "Administrative Agent") and the Collateral Agent have entered into the Term Loan Credit Agreement, dated as of the date hereof (the "Credit Agreement"),
        pursuant to which the Lenders have made the Loans to the Borrower;

       

      (2)          the Grantors may from time to time grant additional security for the benefit of the Secured Parties, all in accordance with, and subject to the terms and conditions of this Agreement;

       

      (3)          the Grantors have agreed pursuant to the Credit Agreement, and it is a condition precedent to the making of the Loans by the Lenders to the Borrower under the Credit Agreement, that
        the Grantors grant the security interests required by this Agreement;

       

      (4)          each Grantor will derive substantial direct and indirect benefit from the transactions described above; and

       

      (5)          Bank of Utah is willing to act as the Collateral Agent under this Agreement.

       

      NOW, THEREFORE, in consideration of the premises, each Grantor hereby agrees with the Collateral Agent for its respective benefit and the benefit of the other Secured Parties as follows:

       

      ARTICLE I

       

      DEFINITIONS

       

      Section 1.01.  Definitions.  (a) Certain Defined Terms.  For the purposes of this
        Agreement, the following terms have the meanings indicated below:

       

      "2009 Act" has the meaning set forth in Section 2.18.

       

      "Account Collateral" has the meaning specified in Section 2.01(i).

       

      
        - 1 -

        
          

      

      "Acquisition Agreement" means any agreement to provide warranties in connection with any agreement pursuant to which a Pool Aircraft has been or will be
        acquired by a Lessor Subsidiary to the extent permitted to be assigned without third party consent.

       

      "Additional Grantor" has the meaning specified in Section 8.01(b).

       

      "Agreed Currency" has the meaning specified in Section 8.07.

       

      "Agreement" has the meaning specified in the recital of parties to this Agreement.

       

      "Aircraft Documents" means all technical data, manuals and log books, and all inspection, modification and overhaul records and other service, repair,
        maintenance and technical records that are required pursuant to applicable law to be maintained with respect to the relevant Pool Aircraft, and such term shall include all additions, renewals, revisions and replacements of any such materials from
        time to time made, or required to be made, pursuant to applicable law, and in each case in whatever form and by whatever means or medium (including, without limitation, microfiche, microfilm, paper or computer disk) such materials may be maintained
        or retained by the relevant Lessee.

       

      "Aircraft Objects" means, collectively, the Aircraft Objects (as defined in the Protocol) described on Schedule I hereto and in any Collateral Supplement or
        Grantor Supplement.

       

      "Aircraft Purchase Collateral" has the meaning specified in Section 2.01(d).

       

      "Airframe" means, individually, each of the airframes described on Schedule I hereto and in any Collateral Supplement or Grantor Supplement.

       

      "Assigned Agreement Collateral" has the meaning specified in Section 2.01(c).

       

      "Assigned Agreements" has the meaning specified in Section 2.01(c)(i).

       

      "Assigned Documents" means, collectively, the Assigned Agreements, the Assigned Leases and the Acquisition Agreements included in the Aircraft Purchase
        Collateral.

       

      "Assigned Leases" has the meaning specified in Section 2.01(b).

       

      "Bank of Utah" has the meaning specified in the preliminary statements of this Agreement.

       

      "Beneficial Interest Collateral" has the meaning specified in Section 2.01(e).

       

      "Borrower" has the meaning specified in the preliminary statements of this Agreement.

       

      "Cape Town Lease" means any Lease (including any Lease between Grantors) that has been entered into, extended, assigned or novated after March 1, 2006 (or
        such later date as the Cape Town Convention may be given effect under the law of any applicable jurisdiction) (A) with a Cape Town Lessee or (B) where the related Aircraft Object is registered in a "Contracting State".

       

      "Cape Town Lessee" means a lessee under a Lease that is "situated in" a "Contracting State".

       

      
        - 2 -

        
          

      

      "Certificated Security" means a certificated security (as defined in Section 8-102(a)(4) of the UCC) other than a Government Security.

       

      "Chattel Paper Original" has the meaning specified in Section 2.05.

       

      "Collateral" has the meaning specified in Section 2.01.

       

      "Collateral Agent" has the meaning specified in the recital of parties to this Agreement.

       

      "Collateral Supplement" means a supplement to this Agreement in substantially the form attached as Exhibit A-1 executed and delivered by a Grantor.

       

      "Credit Agreement" has the meaning specified in the preliminary statements to this Agreement.

       

      "Eligible Institution" means (a) Bank of Utah in its capacity as the Collateral Agent under this Agreement; (b) any bank not organized under the laws of the
        United States of America so long as it has either (i) a long-term unsecured debt rating of A or better by Standard & Poor's and A2 or better by Moody's or (ii) a short-term unsecured debt rating of A-1+ by Standard & Poor's and P-1 or
        better by Moody's; or (c) any bank organized under the laws of the United States of America or any state thereof, or the District of Columbia (or any branch of a foreign bank licensed under any such laws), so long as it (i) has either (A) a
        long-term unsecured debt rating of AA (or the equivalent) or better by each of Standard & Poor's and Moody's or (B) a short-term unsecured debt rating of A-1+ by Standard & Poor's and P-1 by Moody's and (ii) can act as a securities
        intermediary under the New York Uniform Commercial Code.

       

      "Engine" means, individually, each of the aircraft engines described on Schedule I hereto or in any Collateral Supplement or Grantor Supplement.

       

      "Equity Collateral" has the meaning specified in Section 2.07(a).

       

      "Event of Default" means any Event of Default (as defined in the Credit Agreement).

       

      "Excluded Property" shall mean (a) proceeds of public liability insurance (or government or other Person (including the Manufacturer, the Lessee and any
        sublessee of the Lessee) indemnities in lieu thereof) paid or payable as a result of insurance claims made, or losses suffered, by any Grantor or their Affiliates, (b) proceeds of insurance maintained by any Grantor, the Servicers or their
        respective Affiliates for its or their own account or benefit (whether directly or through a Grantor) and not required by the Loan Documents, (c) the proceeds of any requisition for hire not required to be paid to the Collateral Agent, (d) any
        general, Tax or other indemnity payments, expenses, reimbursements and similar payments and interest in respect thereof paid or payable in favor of any Grantor or their Affiliates or their respective successors or assigns, officers, directors,
        employees, agents, managers and servants, including any such payments pursuant to any Lease, except to the extent such Grantor or Affiliate owes such amounts in respect of the same claim to a Secured Party, (e) any security interest held by a
        Grantor or any of its Affiliates in any assets of a Lessee or any sublessee thereof or of any of their Affiliates, other than the Security Deposit under a Lease, or a letter of credit in lieu thereof, which secures obligations owed by such Lessee,
        sublessee or Affiliate pursuant to a grant of collateral not under the applicable Lease, (f) any interest that pursuant to a Lease may from time to time accrue in respect of any of the amounts described in clauses (a) through (d) above, (g) the
        proceeds from the enforcement of any right to enforce the payment of any amount described in clauses (a) to (f) above, and (h) any right to exercise any election or option or make any decision or determination, or to give or receive any notice,
        consent, waiver or approval, or to take any other action in respect of, but in each case, only to the extent relating to, any Excluded Property.

       

      
        - 3 -

        
          

      

      "FAA" means the Federal Aviation Administration of the United States of America.

       

      "FAA Aircraft Mortgage" means an FAA Aircraft Mortgage substantially in the form attached as Exhibit C.

       

      "FAA Aircraft Mortgage and Lease Security Assignment" means an FAA Aircraft Mortgage and Lease Security Assignment substantially in the form attached as
        Exhibit D.

       

      "FAA Lease Security Assignment" means the Lease Security Assignment in substantially the form attached as Exhibit E hereto.

       

      "Government Security" means any security issued or guaranteed by the United States of America or an agency or instrumentality thereof that is maintained in
        book-entry on the records of the Federal Reserve Bank of New York and is subject to Revised Book-Entry Rules.

       

      "Grantor Supplement" means a supplement to this Agreement in substantially the form attached as Exhibit A-2 executed and delivered by a Grantor.

       

      "Grantors" has the meaning specified in the recital of parties to this Agreement.

       

      "Instrument" means any "instrument" as defined in Section 9-102(a)(47) of the UCC.

       

      "Insurances" means, in relation to each Pool Aircraft, any and all contracts or policies of insurance and reinsurance complying with the provisions of
        Schedule V hereto or an indemnity from a Governmental Authority as indemnitor, as appropriate, and required to be effected and maintained in accordance with this Agreement.

       

      "International Registry" means the International Registry under the Cape Town Convention.

       

      "Investment Collateral" has the meaning specified in Section 2.01(h).

       

      "Lease Assignment Documents" means, in respect of any Assigned Lease, (a) any agreement providing for the novation thereof to substitute, or the assignment
        thereof to, a Grantor as the lessor, (b) any agreement or instrument supplemental to this Agreement for the purpose of effecting and/or perfecting the assignment of, and the grant of a lien upon, such Assigned Lease in favor of the Collateral Agent
        under any applicable law (other than the law of the State of New York), (c) any notice provided to the applicable Lessee of the assignment thereof pursuant to this Agreement and/or such supplement, (d) any acknowledgment of such assignment by such
        Lessee and (e) any undertaking of quiet enjoyment given by the Collateral Agent in respect thereof.

       

      
        - 4 -

        
          

      

      "Lease Collateral" has the meaning specified in Section 2.01(b).

       

      "Lenders" has the meaning specified in the preliminary statements to this Agreement.

       

      "Lessee Acknowledgment" has the meaning set forth in Section 2.16(e)(ii).

       

      "Lessee Notice" has the meaning set forth in Section 2.16(e)(ii).

       

      "Membership Interest Collateral" has the meaning specified in Section 2.01(g).

       

      "Moody's" means Moody's Investors Service, Inc.

       

      "Parts" means all appliances, parts, components, instruments, appurtenances, accessories, furnishings, seats and other equipment of whatever nature (other
        than (a) Engines or engines, and (b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other equipment that would qualify as a removable part and is leased by a Lessee from a third party or is subject to a
        security interest granted to a third party), that may from time to time be installed or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom.

       

      "Pledged Beneficial Interest" means all of the beneficial interest in certain Grantors (other than the Borrower) described in the attached Schedule II or in
        any Collateral Supplement or Grantor Supplement.

       

      "Pledged Equity Interests" means the Pledged Beneficial Interest, the Pledged Membership Interest and the Pledged Stock.

       

      "Pledged Equity Party" means each Lessor Subsidiary, and each Intermediate Lessee.

       

      "Pledged Membership Interest" means all of the membership interest in certain Grantors (other than the Borrower) described in the attached Schedule II or in
        any Collateral Supplement or Grantor Supplement.

       

      "Pledged Stock" means all of the outstanding shares of capital stock and/or issued share capital in certain Grantors (other than the Borrower) described in
        the attached Schedule II or in any Collateral Supplement or Grantor Supplement.

       

      "Protocol" means the Protocol to the Convention on Matters Specific to Aircraft Equipment, as in effect in any applicable jurisdiction from time to time.

       

      "Received Currency" has the meaning specified in Section 8.07.

       

      "Related Collateral Documents" means a letter of credit, third-party or bank guarantee or cash collateral provided by or on behalf of a Lessee to secure such
        Lessee's obligations under a Lease, in each case to the extent assignable without the consent of a third party.

       

      "Relevant Collateral" has the meaning specified in Section 2.07(a).

       

      "Relevant FAA Aircraft Mortgages" means, collectively, the FAA Aircraft Mortgages.

       

      
        - 5 -

        
          

      

      "Relevant FAA Aircraft Mortgages and Lease Security Assignments" means, collectively, the FAA Aircraft Mortgage and Lease Security Assignments.

       

      "Relevant FAA Lease Security Assignments" means, collectively, the FAA Lease Security Assignments.

       

      "Required Cape Town Registrations" has the meaning set forth in Section 2.08(e).

       

      "Revised Book-Entry Rules" means 31 C.F.R. § 357 (Treasury bills, notes and bonds); 12 C.F.R. § 615 (book-entry securities of the Farm Credit
        Administration); 12 C.F.R. §§ 987 (book-entry securities of the Federal Home Loan Banks); 24 C.F.R. § 81 (book-entry securities of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation); 12 C.F.R. § 1511
        (book-entry securities of the Resolution Funding Corporation); 31 C.F.R. § 354 (book-entry securities of the Student Loan Marketing Association); and any substantially comparable book-entry rules of any other Federal agency or instrumentality of
        the United States.

       

      "Secured Obligations" has the meaning assigned to the term "Obligations" in the Credit Agreement.

       

      "Secured Party" means any of or, in the plural form, all of the Collateral Agent, the Lenders, the Administrative Agent  and the Hedge Counterparties.

       

      "Securities Account" means a securities account as defined in Section 8-501(a) of the UCC maintained in the name of the Collateral Agent as "entitlement
        holder" (as defined in Section 8-102(a)(7) of the UCC) on the books and records of a Securities Intermediary whose "securities intermediary's jurisdiction" (within the meaning of Section 8-110(e) of the UCC) is the State of New York. For all
        purposes under this Agreement and the other Loan Documents, the LTV Securities Account shall be a Securities Account.

       

      "Standard & Poor's" means Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc.

       

      "Stock Collateral" has the meaning specified in Section 2.01(f).

       

      "Third Party Event" has the meaning specified in Section 2.16(a).

       

      "UCC" means the Uniform Commercial Code as in effect on the date of determination in the State of New York; provided that
        if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, "UCC" means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions of this Agreement relating to such perfection or effect of perfection or non-perfection.

       

      "Uncertificated Security" means an uncertificated security (as defined in Section 8‐102(a)(18) of the UCC) other than a Government Security.

       

      (b)          Terms Defined in the Cape Town Convention.  The following terms shall have the respective meanings ascribed thereto in the Cape Town Convention:
        "Administrator", "Contracting State", "Contract of Sale", "International Interest", "Professional User Entity", "Prospective International Interest", "situated in" and "Transacting User Entity".

       

      
        - 6 -

        
          

      

      (c)          Terms Defined in the Credit Agreement.  For all purposes of this Agreement, all capitalized terms used but not defined in this Agreement shall
        have the respective meanings assigned to such terms in the Credit Agreement.

       

      Section 1.02.          Construction and Usage.  Unless the context otherwise requires:

       

      (a)          A term has the meaning assigned to it and an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP or IFRS.

       

      (b)          The terms "herein", "hereof" and other words of similar import refer to this Agreement as a whole and
        not to any particular Article, Section or other subdivision.

       

      (c)          Unless otherwise indicated in context, all references to Articles, Sections, Schedules or Exhibits refer to an Article or Section of, or a Schedule or Exhibit to, this Agreement.

       

      (d)          To the extent that they refer to or concern the Borrower, any references in this Agreement to "director" or "directors"
        shall be read as to mean "manager" or "managers" respectively.

       

      (e)          Words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders, and words in the singular shall include the plural, and vice versa.

       

      (f)          The terms "include", "including" and similar terms shall be construed as if followed by the phrase
        "without limitation".

       

      (g)        References in this Agreement to an agreement or other document (including this Agreement) include references to such agreement or document as amended, replaced or otherwise modified
        (without, however, limiting the effect of the provisions of this Agreement with regard to any such amendment, replacement or modification), and the provisions of this Agreement apply to successive events and transactions. References to any Person
        shall include such Person's successors in interest and permitted assigns.

       

      (h)      References in this Agreement to any statute or other legislative provision shall include any statutory or legislative modification or re-enactment thereof, or any substitution therefor,
        and references to any governmental Person shall include reference to any governmental Person succeeding to the relevant functions of such Person.

       

      (i)          References in this Agreement to the Loans include the conditions applicable to the Loans and any reference to any amount of money due or payable by reference to the Loans shall include
        any sum covenanted to be paid by any Grantor under this Agreement in respect thereof.

       

      
        - 7 -

        
          

      

      (j)         References in this Agreement to any action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security shall be deemed to include, in respect
        of any jurisdiction other than the State of New York, references to such action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security available or appropriate in such jurisdiction as shall most
        nearly approximate such action, remedy or method of judicial proceeding described or referred to in this Agreement.

       

      (k)         Where any payment is to be made, funds applied or any calculation is to be made hereunder on a day which is not a Business Day, unless any Loan Document otherwise provides, such payment
        shall be made, funds applied and calculation made on the next succeeding Business Day, and payments shall be adjusted accordingly; provided, however, that no additional interest shall be due in respect of such delay.

       

      ARTICLE II

       

      SECURITY

       

      Section 2.01.  Grant of Security.  To secure the Secured Obligations, each Grantor hereby assigns and pledges to the Collateral
        Agent, for its benefit and the benefit of the other Secured Parties, and hereby grants to the Collateral Agent for its benefit and the benefit of the other Secured Parties a security interest in, all of such Grantor's right, title and interest in
        and to the following, whether now owned or hereafter acquired (collectively, the "Collateral"):

       

      (a)        with respect to each Grantor, all of such Grantor's right, title and interest in and to (i) each Pool Aircraft, including the Airframe and Engines as the same is now and will hereafter
        be constituted, and in the case of such Engines, whether or not any such Engine shall be installed in or attached to the Airframe or any other airframe, together with (ii) all Parts of whatever nature, which are from time to time included within
        the definitions of "Airframe" or "Engines", including all substitutions, renewals and replacements of and additions, improvements, accessions and accumulations to the Airframe and Engines (other than additions, improvements, accessions and
        accumulations which constitute appliances, parts, instruments, appurtenances, accessories, furnishings or other equipment excluded from the definition of Parts), (iii) all Aircraft Documents and (iv) any money or non-money proceeds of an Airframe
        or Engine arising from the total or partial loss or destruction of such Airframe or its Engine or its total or partial confiscation, condemnation or requisition;

       

      (b)         with respect to each Grantor, all of such Grantor's right, title and interest in and to all Leases to which such Grantor is or may from time to time be party with respect to the Pool
        Aircraft and any leasing arrangements (including, without limitation, all Intermediate Leases) among Grantors with respect to such Leases together with all Related Collateral Documents (all such Leases and Related Collateral Documents, the "Assigned Leases"), including, without limitation, (i) all rights of such Grantor to receive moneys due and to become due under or pursuant to such Assigned Leases, (ii) all rights of such Grantor to receive
        proceeds of any insurance, indemnity, warranty or guaranty with respect to such Assigned Leases, (iii) claims of such Grantor for damages arising out of or for breach or default under such Assigned Leases, (iv) all rights under any such Assigned
        Lease with respect to any subleases of the Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor to terminate such Assigned Leases and to compel performance of, and otherwise to exercise all remedies under, any Assigned
        Lease, whether arising under such Assigned Leases or by statute or at law or in equity (the "Lease Collateral");

       

      
        - 8 -

        
          

      

      (c)           with respect to each Grantor, all of the following (the "Assigned Agreement Collateral"):

       

       (i)          all of such Grantor's right, title and interest in and to all security assignments, cash deposit agreements and other security agreements executed in its favor in respect of any Pool
        Aircraft (including any Airframe and any Engine) or in respect of or pursuant to any Assigned Lease, and in the Servicing Agreement, in each case as such agreements may be amended or otherwise modified from time to time (collectively, the "Assigned Agreements"); and

       

      (ii)          all of such Grantor's right, title and interest in and to all property of whatever nature, in each case pledged, assigned or transferred to it or mortgaged or charged in its favor
        pursuant to any Assigned Agreement;

       

      (d)         with respect to each Grantor, all of such Grantor's right, title and interest in and to the Acquisition Agreements (the "Aircraft Purchase Collateral");

       

      (e)          with respect to each Grantor, all of the following (the "Beneficial Interest Collateral"):

       

      (i)          the Pledged Beneficial Interest, all certificates, if any, from time to time representing all of such Grantor's right, title and interest in the Pledged Beneficial Interest, any
        contracts and instruments pursuant to which any such Pledged Beneficial Interest are created or issued and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in
        exchange for any or all of the Pledged Beneficial Interest; and

       

      (ii)          all of such Grantor's right, title and interest in all additional beneficial interests in any Pledged Equity Party from time to time acquired by such Grantor in any manner, including
        the beneficial interests in any Pledged Equity Party that may be formed from time to time, the trust agreements and any other contracts and instruments pursuant to which any such Pledged Equity Party is created or issued, and all certificates, if
        any, from time to time representing such additional beneficial interests and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such
        additional beneficial interests;

       

      (f)          with respect to each Grantor, all of the following (the "Stock Collateral"):

       

      (i)          the Pledged Stock and the certificates representing such Pledged Stock, and all dividends, cash, instruments and other property from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of the Pledged Stock; and

       

      (ii)          all additional shares of the capital stock of any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the capital stock of any other
        Pledged Equity Party that may be formed from time to time, and all certificates, if any, representing such additional shares of the capital stock and all dividends, cash, instruments and other property from time to time received, receivable or
        otherwise distributed in respect of or in exchange for any or all such additional shares;

       

      
        - 9 -

        
          

      

      (g)          with respect to each Grantor, all of the following (the "Membership Interest Collateral"):

       

      (i)          the Pledged Membership Interests, all certificates, if any, from time to time representing all of such Grantor's right, title and interest in the Pledged Membership Interests, any
        contracts and instruments pursuant to which any such Pledged Membership Interests are created or issued and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in
        exchange for any or all of the Pledged Membership Interests; and

       

      (ii)          all of such Grantor's right, title and interest in all additional membership interests in any other Pledged Equity Party from time to time acquired by such Grantor in any manner,
        including the membership interests in any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, from time to time representing such additional membership interests and all distributions, cash, instruments
        and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional membership interests;

       

      (h)         all other "investment property" (as defined in Section 9-102(a)(49) of the UCC) of such Grantor (but not, for the avoidance of doubt, shares in the Borrower) in respect of any Lessor
        Subsidiary or any Intermediate Lessee (the "Investment Collateral") including written notification of all interest, dividends, instruments and other property from time to time received, receivable or
        otherwise distributed in respect of or in exchange for any or all of the then existing Investment Collateral, but excluding any loans or advances made, or dividends or other amounts paid, by any Grantor to any Borrower Party;

       

      (i)          with respect to each Grantor, all of the following (the "Account Collateral"):

       

      (i)          all monies and securities from time to time deposited or credited, or required to be deposited or credited, into any Securities Account pursuant to the terms of this Agreement or any
        other Loan Document, including all Eligible Accounts;

       

      (ii)          all cash, Investment Securities and other financial assets held in any Eligible Account by the Collateral Agent or an Eligible Institution; all Cash Collateral; and all security
        entitlements with respect thereto; and

       

      (iii)          each Securities Account (including the LTV Securities Account);

       

      (j)         with respect to each Grantor, all of such Grantor's right, title and interest in and to the personal property identified in a Grantor Supplement or a Collateral Supplement executed and
        delivered by such Grantor to the Collateral Agent; and

       

      
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      (k)         all proceeds of any and all of the foregoing Collateral (including proceeds that constitute property of the types described in subsections (a), (b), (c), (d), (e), (f), (g), (h), (i)
        and (j) of this Section 2.01);

       

      provided that the Collateral shall not include any Excluded Property; provided,
          further, that notwithstanding any of the foregoing provisions, so long as no Event of Default shall have occurred and be continuing, each Grantor shall have the
          right, to the exclusion of the Collateral Agent, to (i) all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Equity Collateral
          and (ii) the Investment Collateral, and once paid by a Grantor to a non-Grantor shall be free and clear of the Lien hereof and shall not constitute Collateral.  The foregoing proviso shall in no event give rise to any right on behalf of any
          Borrower Party to cause the release of Cash Collateral from the LTV Securities Account other than pursuant to a Release Request or Section 2.12 of the Credit Agreement, and subject to all related terms and conditions in the Loan Documents.

       

      Section 2.02. Security for Obligations.  This Agreement secures the payment and performance of all Secured Obligations of the
        Borrower Parties to each Secured Party (subject to the subordination provisions of this Agreement) and shall be held by the Collateral Agent in trust for the Secured Parties.  Without limiting the generality of the foregoing, this Agreement secures
        the payment of all amounts that constitute part of the Secured Obligations and would be owed by any Grantor to any Secured Party but for the fact that Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy,
        reorganization or similar proceeding involving such Grantor.

       

      Section 2.03. Representations and Warranties of the Grantors.  Each Grantor represents and warrants as of the date of this
        Agreement, each Release Date and as of each date on which such Grantor subjects a new Pool Aircraft to this Agreement solely with respect to such Pool Aircraft and such Grantor, as follows:

       

      (a)         Each Pool Aircraft is either legally and beneficially owned by a Lessor Subsidiary or legally owned by a Lessor Subsidiary and beneficially owned by a Borrower Party, in each case,
        except to the extent of the Local Requirements Exception.  The Grantors are the legal and beneficial owners of the other Collateral.  None of the Collateral has been pledged, assigned, sold or otherwise encumbered other than pursuant to the terms
        of the Loan Documents and except for Permitted Liens, and no Collateral is described in (i) any UCC Financing Statements filed against any Borrower Party other than UCC Financing Statements which have been terminated and the UCC Financing
        Statements filed in connection with Permitted Liens or (ii) any other mortgage registries, including the International Registry (which for the avoidance of doubt, shall not include any Contract of Sale in favor of any Grantor), or filing records
        that may be applicable to the Collateral in any other relevant jurisdiction, other than such filings or registrations that have been terminated or that have been made in connection with Permitted Liens, this Agreement or any other security document
        in favor of the Collateral Agent for the benefit of the Secured Parties, or, with respect to the Leases, in favor of the Borrower Parties or the Lessee thereunder.

       

      (b)         This Agreement creates a valid and (upon the taking of the actions required hereby) perfected security interest in favor of the Collateral Agent in the Collateral as security for the
        Secured Obligations, subject in priority to no other Liens (other than Permitted Liens (other than, in the case of priority, the Permitted Lien described in clause (p) of the definition of Permitted Liens)), and all filings and other actions
        necessary to perfect and protect such security interest as a first priority security interest of the Collateral Agent have been (or in the case of future Collateral will be) duly taken (except that only the Express Perfection Requirements shall be
        required to be satisfied), enforceable against the applicable Borrower Parties and creditors of and purchasers from such Borrower Parties.

       

      
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      (c)          No Grantor has any trade names except as set forth on Schedule III hereto.

       

      (d)       No consent of any other Person and no authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or other third party
        (including, for the avoidance of doubt, the International Registry) is required under the laws of the United States, Ireland and the Cayman Islands, or any Other Relevant Jurisdiction  either (i) for the grant by such Grantor of the assignment and
        security interest granted hereby, (ii) for the execution, delivery or performance of this Agreement by such Grantor or (iii) for the perfection or maintenance of the pledge, assignment and security interest created hereby, except for (subject to
        the last sentence of the definition of Express Perfection Requirements) of (A) with respect to each Pool Aircraft whose country of registration is the United States of America, the filing with the FAA, in due form, for recordation where applicable,
        pursuant to Section 40102 and Section 44101 through Section 44112 of Title 49, United States Code, "Transportation," of any and all title, registration and financing documentation necessary to accomplish the purposes of this Agreement, including,
        without limitation, each of the Relevant FAA Aircraft Mortgages, each of the Relevant FAA Aircraft Mortgages and Lease Assignments and/or each of the Relevant FAA Lease Security Assignments, as applicable, with respect to such Pool Aircraft and/or
        the related Assigned Lease, (B) the Required Cape Town Registrations, (C) the filing of financing and continuation statements under the UCC and (D) the applicable Irish filings pursuant to Section 2.08(f).

       

      (e)         The chief place of business, organizational identification number or company registration number (if applicable) and chief executive or registered office of such Grantor and the office
        where such Grantor keeps records of the Collateral are located at the address specified opposite the name of such Grantor on the attached Schedule IV.  If such Grantor is the lessor under a Cape Town Lease, it has the right to assign the
        International Interest provided for in such Cape Town Lease and all associated rights in respect of such Cape Town Lease that form part of the Collateral.

       

      (f)        The Pledged Stock constitutes the percentage of the issued and outstanding shares of capital stock of the issuers thereof indicated on the attached Schedule II.  The Pledged Membership
        Interests constitute the percentage of the membership interest of the issuer thereof, as indicated on Schedule II hereto.  The Pledged Beneficial Interests constitute the percentage of the beneficial interest of the issuer thereof indicated on
        Schedule II hereto.

       

      (g)         The Pledged Stock, the Pledged Membership Interests and the Pledged Beneficial Interests have been duly authorized and validly issued and are fully paid up and nonassessable.

       

      (h)          The Pledged Stock and the Pledged Membership Interests constitute "certificated securities" within the meaning of Section 8-102(4) of the UCC.  Any Certificated Security or Instrument
        evidencing the Pledged Stock, the Pledged Beneficial Interests, the Pledged Membership Interests and any Investment Collateral have been delivered to the Collateral Agent in accordance with Section 2.05 and 2.07.  The Pledged Stock and the Pledged
        Membership Interest either (i) are in bearer form, (ii) have been indorsed by an effective indorsement to the Collateral Agent or in blank or (iii) have been registered in the name of the Collateral Agent.  None of the Pledged Stock, the Pledged
        Beneficial Interests and the Pledged Membership Interest that constitute or evidence the Collateral have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any person other than the Collateral Agent. 
        Any Pledged Beneficial Interests either (i) constitute "certificated securities" within the meaning of Section 8‐102(a)(4) of the UCC, have been delivered to the Collateral Agent and are either (1) are in bearer form, (2) have been indorsed, by an
        effective indorsement, to the Collateral Agent or in blank or (3) have been registered in the name of the Collateral Agent or (ii) a fully executed "control agreement" has been delivered to the Collateral Agent with respect to such Pledged
        Beneficial Interests.

       

      
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      (i)          A true and complete copy of each Assigned Agreement in effect on the date hereof has been delivered (or will be delivered within no more than ten (10) Business Days) to the Collateral
        Agent.  Each Assigned Document upon its inclusion in the Collateral will have been duly authorized, executed and delivered by the relevant Grantors, will be in full force and effect and will be binding upon and enforceable against all parties
        thereto in accordance with their terms.

       

      Section 2.04 .Grantors Remain Liable.  Anything contained herein to the contrary notwithstanding, (a) each Grantor shall remain
        liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the
        Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) in each case, unless the Collateral Agent or any other Secured
        Party, expressly in writing or by operation of law, assumes or succeeds to the interests of any Grantor hereunder, no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of
        this Agreement, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor under the contracts and agreements included in the Collateral or to take any action to collect or enforce any claim for payment
        assigned under this Agreement.

       

      Section 2.05. Delivery of Collateral.  Subject to the last sentence of this Section 2.05, all certificates or instruments
        representing or evidencing any Collateral, if deliverable, shall be delivered to and held by or on behalf of the Collateral Agent and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of
        transfer or assignment in blank, all in form and substance satisfactory to evidence the security interests granted thereby.  The Collateral Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, to
        transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Equity Interests, subject only to the revocable rights specified in Section 2.10(a).  In addition, the Collateral Agent shall have the
        right at any time, upon the occurrence and during the continuance of an Event of Default, to exchange certificates or instruments representing or evidencing any Collateral for certificates or instruments of smaller or larger denominations.  To the
        extent that any Assigned Lease constitutes "tangible chattel paper" (as defined in Section 9-102(a)(78) of the UCC), the Grantors shall, if it has an original of such Assigned Lease in its possession, cause the original of such Assigned Lease (the
        "Chattel Paper Original") to be delivered to the Collateral Agent promptly (and in any case no later than ten (10) Business Days) after the execution and delivery of such Assigned Lease by all its parties. 
        Notwithstanding anything else to the contrary in any Loan Document, no Grantor shall be required to deliver to the Collateral Agent any letter of credit issued pursuant to an Assigned Lease.

       

      
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      Section 2.06. As to the Assigned Documents.  (a) Upon the inclusion of any Assigned Document (other than an Assigned Lease) in the Collateral, the relevant
        Grantor will deliver to the Collateral Agent a consent, in substantially the form of Exhibit B and executed by each party to such Assigned Document (other than any other Grantor) or (where the terms of such Assigned Document expressly provide for a
        consent to its assignment for security purposes to substantially the same effect as Exhibit B) will give due notice to each such other party to such Assigned Document of its assignment pursuant to this Agreement.  Upon the inclusion of any Assigned
        Lease in the Collateral, promptly after its receipt thereof from the relevant Lessee party thereto, the relevant Grantor will deliver to the Collateral Agent (to the extent required in accordance with the Express Perfection Requirements) (i) such
        consents, acknowledgments and/or notices as are provided for in the related Lease Assignment Documents and (ii) such consents, acknowledgments and/or notices as are necessary or customary under the terms of such Assigned Lease and under the
        applicable law of the jurisdiction governing such Assigned Lease and the jurisdiction in which the relevant lessee is principally located or the applicable Pool Aircraft is registered in order to effect and perfect the assignment of, and grant of a
        lien upon, such Assigned Lease pursuant to this Agreement (including, with respect to each Assigned Lease which constitutes an International Interest (A) where the applicable Lessee is situated for purposes of the Cape Town Convention in a
        jurisdiction that is a Contracting State or (B) the related Aircraft Object is registered in a Contracting State, registration of such International Interest and the assignment thereof at the International Registry) and/or to assure the payment of
        all amounts under such Assigned Lease to the appropriate Securities Account in accordance with the terms of the Credit Agreement.  Upon the written request of any Grantor, the Collateral Agent (solely in its capacity as such) will execute such
        undertakings of quiet enjoyment in favor of the Lessee under any Assigned Lease as are provided for in the Lease Assignment Documents or as are substantially to the same effect as the undertakings of quiet enjoyment provided for in such Assigned
        Lease.

       

      (b)          Upon (i) the inclusion of any Assigned Document in the Collateral or (ii) the amendment or replacement of any Assigned Document or the entering into of any new Assigned Document, the
        relevant Grantor will deliver within ten (10) Business Days of such inclusion a copy thereof to the Collateral Agent and will take such other action as may be necessary to perfect the lien of this Agreement as to such Assigned Document such that
        the security interest therein granted to the Collateral Agent is senior to that of any other creditor of the Borrower or as otherwise reasonably requested by the Collateral Agent (provided that only the
        Express Perfection Requirements shall be required to be satisfied).

       

      (c)          Each Grantor shall, at its expense:

       

      (i)          use reasonable commercial efforts, in accordance with Leasing Company Practice to (A) perform and observe all the terms and provisions of the Assigned Documents to be performed or
        observed by it, (B) enforce the Assigned Documents in accordance with their terms and (C) after an Event of Default has occurred and is continuing take all such action to such end as may be from time to time reasonably requested by the Collateral
        Agent; and

       

      (ii)          furnish to the Collateral Agent promptly upon receipt copies of each amendment, supplement or waiver to a Lease received by such Grantor under or pursuant to the Assigned Documents,
        and from time to time, subject to the provisions of the applicable Assigned Document, relating to the Lessee's obligation to furnish such information and subject to any confidentiality provisions therein, (A) furnish to the Collateral Agent such
        information and reports regarding the Collateral as the Collateral Agent may reasonably request and (B) upon reasonable request of the Collateral Agent make to each other party to any Assigned Document such demands and requests for information and
        reports or for action as such Grantor is entitled to make thereunder.

       

      
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      (d)          So long as no Event of Default shall have occurred and be continuing, and notwithstanding any provision to the contrary in this Agreement, each Grantor shall be entitled, to the
        exclusion of the Collateral Agent but subject always to the terms of the Loan Documents (x) to exercise and receive, directly or indirectly through one or more agents, any of the claims, rights, powers, privileges, remedies and other benefits
        under, pursuant to, with respect to or arising out of the Assigned Documents and (y) to take any action or to not take any action, directly or indirectly through one or more agents, related to the Assigned Documents and the lessees or
        counterparties thereunder, including entering into, amending, supplementing, terminating, granting waivers, performing, enforcing, compelling performance of, exercising all remedies (whether arising under any Assigned Document or by statute or at
        law or in equity or otherwise) under, exercising rights, elections or options or taking any other action under or in respect of, granting or withholding notices, waivers, approvals and consents in respect of, receiving all payments under, dealing
        with any credit support or collateral security in respect of, or taking any other action in respect of, the Assigned Documents and contacting or otherwise having any dealings with any lessee or counterparty thereunder; provided, however, (i) so long as any Assigned Lease remains in effect, no Grantor will abrogate any right, power or privilege granted expressly in favor of the Collateral Agent or any other
        Secured Party under any Lease Assignment Document and (ii) during the continuance of an Event of Default, all such rights of each Grantor shall cease, and all such rights shall become vested in the Collateral Agent, which shall thereupon have the
        sole right to exercise or refrain from exercising such rights.

       

      Section 2.07.As to Beneficial Interest Collateral.  (a) All Stock Collateral, Membership Interest Collateral and Beneficial
        Interest Collateral (collectively, the "Equity Collateral") and all Investment Collateral (together with the Equity Collateral, the "Relevant Collateral") shall be
        delivered to the Collateral Agent as follows:

       

      (i)          in the case of each Certificated Security or Instrument, by (A) causing the delivery of such Certificated Security or Instrument to the Collateral Agent, registered in the name of the
        Collateral Agent or duly endorsed by an appropriate person to the Collateral Agent or in blank and, in each case, held by the Collateral Agent, or (B) if such Certificated Security or Instrument is registered in the name of any Securities
        Intermediary on the books of the issuer thereof or on the books of any Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such Certificated Security or Instrument to a Securities Account maintained
        by such Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that it has been so credited;

       

      
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      (ii)          in the case of each Uncertificated Security, by (A) causing such Uncertificated Security to be continuously registered on the books of the issuer thereof in the name of the
        Collateral Agent or (B) if such Uncertificated Security is registered in the name of a Securities Intermediary on the books of the issuer thereof or on the books of any securities intermediary of a Securities Intermediary, by causing such
        Securities Intermediary to continuously credit by book entry such Uncertificated Security to a Securities Account maintained by such Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that
        it has been so credited; and

       

      (iii)          in the case of each Government Security registered in the name of any Securities Intermediary on the books of the Federal Reserve Bank of New York or on the books of any securities
        intermediary of such Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such security to the Securities Account maintained by such Securities Intermediary in the name of the Collateral Agent and
        confirming in writing to the Collateral Agent that it has been so credited.

       

      (b)          Each Grantor and the Collateral Agent hereby represents, with respect to the Relevant Collateral, that it has not entered into, and hereby agrees that it will not enter into, any
        agreement (i) with any of the other parties hereto or any Securities Intermediary specifying any jurisdiction other than the State of New York as the "securities intermediary's jurisdiction" within the meaning of Section 8-110(e) of the UCC in
        connection with any Securities Account with any Securities Intermediary referred to in Section 2.07(a) for purposes of 31 C.F.R. Section 357.11(b), Section 8-110(e) of the UCC or any similar state or Federal law, or (ii) with any other person
        relating to such account pursuant to which it has agreed that any Securities Intermediary may comply with entitlement orders made by such person.  The Collateral Agent represents that it will, by express agreement with each Securities Intermediary,
        provide for each item of property constituting Relevant Collateral held in and credited to the Securities Account, including cash, to be treated as a "financial asset" within the meaning of Section 8-102(a)(9)(iii) of the UCC for the purposes of
        Article 8 of the UCC.

       

      (c)          Without limiting the foregoing, each Grantor and the Collateral Agent agree, and the Collateral Agent shall cause each Securities Intermediary, to take such different or additional
        action as may be required in order to maintain the perfection and priority of the security interest of the Collateral Agent in the Relevant Collateral in the event of any change in applicable law or regulation, including Articles 8 and 9 of the UCC
        and regulations of the U.S. Department of the Treasury governing transfers of interests in Government Securities.

       

      Section 2.08. Further Assurances.  (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor
        shall promptly execute and deliver all further instruments and documents, and take all further action (including under the laws of any foreign jurisdiction), that may be necessary, or that the Collateral Agent may reasonably request, in order to
        perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral (except that only
        the Express Perfection Requirements shall be required to be satisfied).  Without limiting the generality of the foregoing, each Grantor shall: (i) mark conspicuously its applicable records pertaining to the Collateral with a legend, indicating that
        such Collateral is subject to the security interest granted hereby; (ii) if any Collateral shall be evidenced by an instrument or "tangible chattel paper" (as defined in Section 9-102(a)(78) of the UCC) (other than a promissory note, unless an
        Event of Default shall have occurred and be continuing), deliver and pledge to the Collateral Agent hereunder such note or instrument or tangible chattel paper duly indorsed and accompanied by duly executed instruments of transfer or assignment in
        blank; (iii) execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, that may be necessary, or as the Collateral Agent may reasonably request, in order to perfect and preserve the
        pledge, assignment and security interest granted or purported to be granted hereby and (iv) execute, file, record, or register such additional documents and supplements to this Agreement, including any further assignments, security agreements,
        pledges, grants and transfers, as may be required under the laws of any foreign jurisdiction or as the Collateral Agent may reasonably request, to create, attach, perfect, validate, render enforceable, protect or establish the priority of the
        security interest and lien of this Agreement (except that only the Express Perfection Requirements shall be required to be satisfied).

       

      
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      (b)       Each Grantor hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, relating to all or any part of the Collateral without
        the signature of such Grantor where permitted by law.  A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

       

      (c)         Each Grantor shall furnish or cause to be furnished to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other
        reports in connection with the Collateral as the Collateral Agent may reasonably request, all in reasonable detail.

       

      (d)          Each Grantor shall, prior to or simultaneously with any Person becoming a lessor of any Pool Aircraft, cause such Person to enter into a Grantor Supplement.

       

      (e)          Each Grantor shall ensure that at all times an individual shall be appointed as administrator with respect to such Grantor for purposes of the International Registry and shall register
        or cause to be registered (or if the Collateral Agent is making such registration, without relieving each Grantor of such obligation, consent to such registration) with the International Registry (collectively, the "Required

          Cape Town Registrations"): (i) the International Interest provided for hereunder with respect to each Aircraft Object in respect of Pool Aircraft where the relevant Grantor is situated in a Contracting State or if such Aircraft Object is
        registered in a Contracting State; (ii) the International Interest provided for in any Cape Town Lease to which such Grantor is a lessor or lessee; (iii) the assignment to the Collateral Agent of each International Interest described in clause (ii)
        and assigned to the Collateral Agent hereunder; and (iv) the Contract of Sale with respect to any Pool Aircraft by which title to such Pool Aircraft is conveyed by or to such Grantor, but only if the seller under such Contract of Sale is situated
        in a Contracting State or if such Aircraft Object is registered in a Contracting State and if such seller agrees to such registration.  To the extent that (A) the Collateral Agent's consent is required for any such registration, or (B) the
        Collateral Agent is required to initiate any such registration, the Collateral Agent shall ensure that such consent or such initiation of such registration is effected, and no Grantor shall be in breach of this Section should the Collateral Agent
        fail to do so in a proper fashion (it being understood and agreed that in no event shall the Collateral Agent be liable for any failure to so register as a result of such Grantor's failure to provide any necessary information required for such
        registration in a timely manner or if such information is inaccurate or incomplete).  It is understood and agreed that International Interests provided for hereunder shall be registered in the name of the Collateral Agent in the order of priority
        provided for in clauses (a) and (b) of Section 3.02.  The parties hereto agree that for the purposes of the definition of Prospective International Interest in the Cape Town Convention, the making of the Loans by the Lenders shall constitute the
        stated event upon which the Borrower has created or provided for an International Interest in the Aircraft Objects and Assigned Leases.

       

      
        - 17 -

        
          

      

      (f)          With respect to each Pool Aircraft that is registered in the United States of America, each Grantor shall, so long as such Pool Aircraft is so registered, and (i) in the case of a Pool
        Aircraft that is not subject to an Assigned Lease, register and record with the FAA the Relevant FAA Aircraft Mortgages with respect to such Pool Aircraft and (ii) in the case of a Pool Aircraft that is subject to an Assigned Lease, register and
        record with the FAA the Relevant FAA Aircraft Mortgages and Lease Security Assignments with respect to such Pool Aircraft.  Each Grantor shall, if at any time after the filing with the FAA of a Relevant FAA Aircraft Mortgage with respect to a Pool
        Aircraft such Pool Aircraft becomes subject to an Assigned Lease, register and record with the FAA the Relevant FAA Lease Security Assignments with respect to such Aircraft.  With respect to each Grantor incorporated under the laws of Ireland, such
        Grantor shall cause each Security Document executed in respect of its Equity Interest or the relevant particulars to be filed in the Irish Companies Registration Office and, where applicable, the Irish Revenue Commissioners within 21 days of
        execution thereof.  With respect to each Grantor incorporated under the laws of the Cayman Islands, such Grantor shall ensure its register of mortgages and charges is updated to reflect the particulars of the security interests granted by it
        created pursuant to this Agreement.  With respect to each Grantor incorporated under the laws of any other acceptable jurisdiction (permitted in accordance with the Credit Agreement), such Grantor shall take all steps required under the laws of
        such jurisdiction in order to ensure the validity, perfection, priority and enforceability of the security interests created thereby.

       

      Section 2.09. Place of Perfection; Records.  Each Grantor shall keep its chief place of business, registered office and chief
        executive office and the office where it keeps its records concerning the Collateral at the location therefor specified in Schedule IV or, upon thirty (30) days' prior written notice to the Collateral Agent, at such other locations in a
        jurisdiction where all actions required by Section 2.03(e) shall have been taken with respect to the Collateral.  Subject to applicable confidentiality restrictions, each Grantor shall hold and preserve such records and shall permit representatives
        of the Collateral Agent upon reasonable prior notice at any time during normal business hours reasonably to inspect and make abstracts from such records, all at the sole cost and expense of such Grantor.

       

      Section 2.10. Voting Rights; Dividends; Etc.  (a) So long as no Event of Default shall have occurred and be continuing:

       

      (i)          Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to all or any part of the Relevant Collateral pledged by such Grantor for any
        purpose not inconsistent with the terms of this Agreement, the charter documents of such Grantor or the Loan Documents; provided that such Grantor shall not exercise or shall refrain from exercising any such
        right if such action would constitute a breach of its obligations under the Loan Documents; and

       

      
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      (ii)          The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to such Grantor all such proxies and other instruments as such Grantor may reasonably request
        in writing and provide for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to Section 2.10(a)(i).

       

      (b)          After an Event of Default shall have occurred and be continuing, any and all distributions, dividends and interest paid in respect of the Relevant Collateral pledged by such Grantor,
        including any and all (i) distributions, dividends and interest paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, such Relevant
        Collateral; (ii) distributions, dividends and other distributions paid or payable in cash in respect of such Relevant Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital
        surplus or paid-in surplus; and (iii) cash paid, payable or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, such Relevant Collateral shall be forthwith delivered to the Collateral Agent and, if received by
        such Grantor, shall be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor and be forthwith delivered to the Collateral Agent in the same form as so received (with any necessary
        endorsement).

       

      (c)         During the continuance of an Event of Default, all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be
        entitled to exercise pursuant to Section 2.10(a)(i) and 2.10(a)(ii) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting
        and other consensual rights.

       

      Section 2.11. Transfers and Other Liens; Additional Shares or Interests.  (a) No Grantor shall (i) sell, assign (by operation of
        law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the Collateral or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor, in the case of clause (i) or (ii) other
        than (x) the pledge, assignment and security interest created by this Agreement, (y) as otherwise provided or permitted herein or in any other Loan Document and (z) any Junior Lien in respect of the Junior Lien Collateral.

       

      (b)       Except as otherwise provided pursuant to the Loan Documents, the Grantors shall not issue, deliver or sell any shares, interests, participations or other equivalents except those pledged
        hereunder and except to the extent of the Local Requirements Exception.  Any beneficial interests, membership interests or capital stock or other securities or interests issued in respect of or in substitution for the Pledged Beneficial Interests,
        the Pledged Membership Interests or the Pledged Stock shall be issued or delivered (with any necessary endorsement) to the Collateral Agent in accordance with Section 2.07.

       

      Section 2.12. Collateral Agent Appointed Attorney-in-Fact.  Each Grantor hereby irrevocably appoints, as security for the Secured
        Obligations, the Collateral Agent as such Grantor's attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent's discretion during the
        occurrence and continuance of an Event of Default, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including:

       

      
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      (a)         to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

       

      (b)          to receive, indorse and collect any drafts or other instruments and documents in connection included in the Collateral;

       

      (c)        to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary for the collection of any of the Collateral or otherwise to enforce the
        rights of the Collateral Agent with respect to any of the Collateral; and

       

      (d)          to execute and file any financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary, in order to perfect (except in the case
        of the Beneficial Interest Collateral provided pursuant to Section 2.01(e)) and preserve the pledge, assignment and security interest granted hereby;

       

      provided that the Collateral Agent's exercise of any such power shall be subject to Section 2.06(d).

       

      Section 2.13. Collateral Agent May Perform.  If any Grantor fails to perform any agreement contained in this Agreement, the
        Collateral Agent may (but shall not be obligated to) after such prior notice as may be reasonable under the circumstances, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection with
        doing so shall be payable by the Grantors.

       

      Section 2.14. Covenant to Pay.  Each Grantor covenants with the Collateral Agent (for the benefit of the Secured Parties) that
        it will pay or discharge any monies and liabilities whatsoever that are now, or at any time hereafter may be, due, owing or payable by such Grantor in any currency, actually or contingently, solely and/or jointly, and/or severally with another or
        others, as principal or surety on any account whatsoever pursuant to the Loan Documents in accordance with their terms.  Each Grantor agrees that no payment or distribution by such Grantor pursuant to the preceding sentence shall entitle such
        Grantor to exercise any rights of subrogation in respect thereof until the related Secured Obligations shall have been paid in full.  All such payments shall be made in accordance with Section 3.02.

       

      Section 2.15. Delivery of Collateral Supplements.  Upon the addition of any Pool Aircraft or the acquisition by any Grantor of
        any Equity Collateral, each relevant Grantor shall concurrently execute and deliver to the Collateral Agent a Collateral Supplement duly completed with respect to such Collateral and shall take such steps with respect to the perfection of such
        Collateral as are called for by this Agreement for Collateral of the same type; provided that the foregoing shall not be construed to impair or otherwise derogate from any restriction on any such action in
        any Loan Document; and provided further that the failure of any Grantor to deliver any Collateral Supplement as to any such Collateral shall not impair the lien of this Agreement as to such Collateral.

       

      
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      Section 2.16. Operational Covenants.  (a) Operation and Use.  Each Grantor agrees that no Pool Aircraft will be
        maintained, used or operated in violation of any law, rule or regulation (including airworthiness directives) of any government or Governmental Authority having jurisdiction over such Pool Aircraft or in violation of any airworthiness certificate,
        license or registration relating to such Pool Aircraft issued by any such government, except for minor violations, and except to the extent any Grantor (or, if a Lease is then in effect with respect to such Pool Aircraft, any Lessee of such Pool
        Aircraft) is contesting in good faith the validity or application of any such law, rule or regulation in any manner that does not involve any material risk of sale, forfeiture or loss of such Pool Aircraft or any material risk of subjecting any
        Secured Party to criminal liability or materially impair the Liens created by this Agreement or any other Security Document; provided that the Borrower Parties shall only be entitled to contest mandatory
        grounding orders if they (or the applicable Lessee) do not operate such Pool Aircraft during such contest.  The Grantors will not operate any Pool Aircraft, or permit any Pool Aircraft to be operated or located, (i) in any area excluded from
        coverage by any insurance required by the terms of Section 2.17 and Schedule V of this Agreement or (ii) in any war zone or recognized or threatened areas of hostilities unless covered by war risk insurance in accordance with Section 2.17 and
        Schedule V of this Agreement, in either case unless indemnified by a government authority as provided therein or unless located there due to an emergency or an event outside the Lessee's control, but only for so long as such emergency or event
        continues.

       

      Notwithstanding the other provisions of this Section 2.16, no breach of Section 2.16 shall be deemed to have occurred by virtue of any act or omission of a Lessee or sub-lessee, or of any Person
        claiming by or through a Lessee or a sub-lessee, or of any Person which has possession of the Pool Aircraft or any Engine for the purpose of repairs, maintenance, modification or storage, or by virtue of any requisition, seizure, or confiscation of
        the Pool Aircraft (other than seizure or confiscation arising from a breach by the Grantors of this Section 2.16(a)) (each, a "Third Party Event"); provided that (i)
        no Borrower Party consents or has consented to such Third Party Event; and (ii) the Grantor which is the lessor or owner of such Pool Aircraft promptly and diligently takes such commercially reasonable actions in accordance with Leasing Company
        Practice in respect of such Third Party Event, including, as deemed appropriate (taking into account, inter alia, the laws of the jurisdictions in which the Pool Aircraft are located), seeking to compel
        such Lessee or other relevant Person to remedy such Third Party Event or seeking to repossess the relevant Pool Aircraft or Engine.

       

      (b)         Identification of Collateral Agent's Interest.  The Grantors agree to use commercially reasonable efforts to affix or cause the relevant Lessee
        to affix, as applicable and to the extent permitted under the relevant Lease, as promptly as practicable after the Effective Date or relevant Release Date, as applicable, and thereafter to maintain in the cockpit of each Pool Aircraft, in a clearly
        visible location, and on each Engine, a nameplate bearing the additional inscription "SUBJECT TO A SECURITY INTEREST IN FAVOR OF BANK OF UTAH, AS COLLATERAL AGENT" (such nameplate to be replaced, if necessary, with a nameplate reflecting the name
        of any successor Collateral Agent).

       

      (c)       Registration.  Each Grantor shall cause each Pool Aircraft to remain duly registered, under the laws of a country or jurisdiction that is not a
        Prohibited Country or that is the country in which such Pool Aircraft is registered as of the date hereof, in the name of the relevant Grantor and reflecting the applicable Grantor (and, if applicable, the applicable Intermediate Lessee) as lessor,
        in each case, if so permitted under the applicable registry; provided that a Pool Aircraft may be unregistered for a temporary period in connection with modification or maintenance of such Pool Aircraft. 
        The Collateral Agent agrees that it will cooperate with the relevant Grantor in changing the state of registration of any Pool Aircraft at the cost of the relevant Grantor and as the relevant Grantor may request, provided

          that such request does not conflict with the relevant Grantor's obligations under the Loan Documents.

       

      
        - 21 -

        
          

      

      (d)          Extension or Amendment of Leases.  Upon execution of any amendment or extension of a Lease, the relevant Grantor shall comply with the
        provisions of Sections 2.06 and 2.08 of this Agreement, as applicable, and shall deliver to the Collateral Agent:

       

      (i)          the Chattel Paper Original, if any, of such amendment or extension of the Lease (and any related Intermediate Lease); and

       

      (ii)          to the extent that such extension or amendment under applicable laws of the relevant jurisidiction requires amendments to the registration of the aircraft, copies of such legal
        opinions with regard to compliance with the registration requirements of the relevant jurisdiction, to the extent that receiving such legal opinions is consistent with Leasing Company Practice.

       

      (e)          Replacement of Leases.  Upon execution of any replacement Lease, the relevant Grantor shall comply with the provisions of Sections 2.06 and 2.08
        of this Agreement, as applicable, and shall deliver the following to the Collateral Agent:

       

      (i)          the Chattel Paper Original, if any, of such replacement Lease (and any related Intermediate Lease);

       

      (ii)          a notice of assignment substantially in the form attached hereto as Exhibit F-1 (a "Lessee Notice") and (to the extent required under the
        Express Perfection Requirements) an acknowledgment from the Lessee substantially in the form attached hereto as Exhibit F-2 (a "Lessee Acknowledgment"), or such forms of such notices as may be pre-agreed in
        the relevant Lease (or are otherwise acceptable to the Collateral Agent), addressed to, or for the benefit of, the Collateral Agent with respect to such replacement Lease;

       

      (iii)          certificates of insurance from qualified brokers of aircraft insurance (or other evidence satisfactory to the Collateral Agent), evidencing all insurance required to be maintained
        by the applicable Lessee, together with the endorsements required pursuant to Section 2.17 and Schedule V of this Agreement with respect to such replacement Lease;

       

      (iv)          promptly and in any case within 15 Business Days of the effectiveness of the leasing of such Pool Aircraft, a copy of such Lease (and any related Intermediate Lease), and an amended
        and restated Schedule 3.17(b) to the Credit Agreement incorporating all information required under such schedule with respect to such replacement Lease (and any related Intermediate Lease); and

       

      (v)          with respect to any replacement Lease, copies of such legal opinions with regard to compliance with the registration requirements of the relevant jurisdiction, enforceability of such
        Lease and such other matters customary for such transactions, in each case to the extent that receiving such legal opinions is consistent with Leasing Company Practice.

       

      
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      Section 2.17. Insurance.  The relevant Grantor shall maintain, or procure that the relevant Lessee maintains, hull and third party liability insurance
        policies, maintained with insurers or reinsured with reinsurers of recognized responsibility or pursuant to governmental indemnities, in respect of each Pool Aircraft in accordance with the terms of Schedule V hereto.

       

      Section 2.18. As to Irish Law.  (a) Notwithstanding anything to the contrary contained in this Agreement and in addition to and
        without prejudice to any other rights or power of the Collateral Agent under this Agreement or under general law in any relevant jurisdiction, at any time that the Collateral Agent's remedies with respect to the Collateral shall become exercisable,
        the Collateral Agent shall be entitled to appoint a receiver under this Agreement or under the Land and Conveyancing Law Reform Act 2009 of Ireland (as amended and as the same may be amended, modified or replaced from time to time, the "2009 Act") and such receiver shall have all such powers, rights and authority conferred under the 2009 Act, this Agreement and otherwise under the laws of Ireland without any limitation or restriction imposed by
        the 2009 Act, including, without limitation, the restrictions contained in sections 108(1), 108(4) and 108(7) (Appointment of a Receiver) of the 2009 Act, or otherwise under the laws of Ireland which may be excluded or removed.

       

      (b)          Without prejudice to the foregoing above:

       

      (i)          The provisions of section 109 (Application of money received) of the 2009 Act shall not apply to a receiver appointed under the 2009 Act.

       

      (ii)          The provisions of section 97 of the 2009 Act (Taking possession), section 98 (Abandoned property), section 99(1) (Mortgagee in possession) and section 101 (Applications under
        sections 97 and 100) shall not apply to a receiver appointed under the 2009 Act.

       

      (iii)          At any time after the security constituted by this Agreement has become enforceable and a receiver has been appointed under the 2009 Act:

       

      (A)          the statutory power of sale conferred by section 100 (Power of sale) of the 2009 Act shall apply free from restrictions contained in section 100(1), (2), (3) and (4) and without the
        requirement to serve notice (as provided for in section 100(1)); and

       

      (B)          the incidental powers of sale conferred by section 102 (Incidental powers) will immediately arise and be exercisable by the Collateral Agent and/or any receiver appointed under the
        2009 Act (as appropriate).

       

      (c)          The foregoing powers of appointment of a receiver are in addition to and not to the prejudice of all statutory and other powers of the Collateral Agent under the 2009 Act (as varied or
        disapplied herein) or otherwise, and such powers will be and remain exercisable by the Collateral Agent in respect of any part of the Collateral in respect of which no appointment of a receiver by the Collateral Agent is for the time being
        subsisting, notwithstanding that an appointment shall have subsisted and been withdrawn in respect of that part of the Collateral or shall be subsisting in respect of any other part of the Collateral.

       

      
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      (d)          No purchaser or other Person will be bound or concerned to see or enquire whether the right of the Collateral Agent or any receiver appointed by the Collateral Agent to exercise any of
        the powers conferred by this Agreement has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

       

      Section 2.19. Irish Charge Over Shares.  Each Grantor undertakes with the Collateral Agent to enter into an Irish Charge Over
        Shares in respect of, inter alia, the Equity Interests held by it of any Lessor Subsidiary and any Intermediate Lessee which is incorporated under the laws of Ireland.

       

      Section 2.20. [Reserved].

       

      Section 2.21. [Reserved].

       

      Section 2.22.Other Jurisdiction Share Charge.  Each Grantor undertakes with the Collateral Agent to enter into an a charge,
        pledge or equivalent security agreement, in respect of, inter alia, the Equity Interest held by it of any Lessor Subsidiary and any Intermediate Lessee which is incorporated or organized under the laws of
        any other acceptable jurisdiction (permitted in accordance with the Credit Agreement).

       

      Section 2.23. Investment of Security Funds.  Any monies deposited in the LTV Securities Account shall, until released to the
        Borrower pursuant to Sections 2.03(c) or 2.12 of the Credit Agreement or applied as provided herein, be invested by the Collateral Agent at the written authorization and direction of the Borrower (except when an Event of Default has occurred and is
        continuing or when the Borrower fails to give the Collateral Agent such written authorization and direction, during which time the Collateral Agent shall invest such funds in accordance with its automated cash investment system) from time to time
        at the sole expense and risk of the Borrower in Investment Securities.  All Investment Securities held by the Securities Intermediary shall either be (a) registered in the name of, payable to the order of, or specially endorsed to, the Securities
        Intermediary or (b) held in an Eligible Account.  Neither the Collateral Agent nor the Securities Intermediary shall be liable for any loss relating to any Investment Security made pursuant to this Section 2.23.  The Borrower will promptly pay to
        the Collateral Agent, on demand, the amount of any loss (net of any gains, including interest received) realized as the result of any such investment (together with any fees, commissions and other expenses, if any, incurred in connection with such
        investment).

       

      Section 2.24. Covenant Regarding Control.  No Grantor shall cause nor permit any Person other than the Collateral Agent to have
        "control" (as defined in Section 8-106 of the UCC) of any Securities Account, including, without limitation, the LTV Securities Account.

       

      Section 2.25. Security Documents.  Inconsistencies between this Agreement and any other Security Document shall be reconciled so
        that terms and conditions in one agreement but not in the other are deemed to be supplementary, and not inconsistent, terms and conditions; provided, however, that in the event of a direct irreconcilable conflict between this Agreement and any other Security Document, this Agreement shall control unless the term creating such conflict is a term that is mandatorily
        required by the laws of the applicable jurisdiction of the governing law of the relevant other Security Document in order for the Collateral Agent or any other Secured Party to enforce the term of such other Security Document, in which case such
        term shall prevail in connection with enforcement of remedies thereunder in such jurisdiction; provided, further, however, that in any case, proceeds from the enforcement of remedies against Collateral under any Loan Document, including any Security Document, shall be applied and distributed as set forth herein.

       

      
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      ARTICLE III

       

      REMEDIES

       

      Section 3.01. Remedies.  Notwithstanding anything herein or in any other Loan Document to the contrary, if any Event of Default
        shall have occurred and be continuing, and in each case subject to the quiet enjoyment rights of the applicable Lessee of any Pool Aircraft:

       

      (a)         The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein (including, for the avoidance of doubt, the rights and
        remedies of the Collateral Agent provided for in Section 2.10), all of the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and all of the rights and remedies under
        applicable law and also may (i) require any Grantor to, and such Grantor hereby agrees that it shall at its expense and upon request of the Collateral Agent forthwith, assemble all or any part of the Collateral as directed by the Collateral Agent
        and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is reasonably convenient to both parties and (ii) without notice except as specified below, sell or cause the sale of the Collateral or any part
        thereof in one or more parcels at public or private sale, at any of the Collateral Agent's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable.  Each
        Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days' prior notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute
        reasonable notification.  The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Collateral Agent may adjourn any public or private sale from time to time by announcement at
        the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

       

      

      (b)        The Collateral Agent may, in addition to or in connection with any other remedies available hereunder or under any other applicable law, exercise any and all remedies granted under the
        Cape Town Convention as it shall determine in its sole discretion.  In connection therewith, the parties hereby agree to the extent permitted by the UCC that (i) Article 9(1) and Article 9(2) of the Convention, wherein the parties may agree or the
        court may order that any Collateral shall vest in the Collateral Agent in or towards satisfaction of the Secured Obligations, shall not preclude the Collateral Agent from obtaining title to any Collateral pursuant to any other remedies available
        under applicable law (including but not limited to Article 9-620 of the UCC); (ii) any surplus of cash or cash proceeds held by the Collateral Agent and remaining after payment in full of all the Secured Obligations owed to it shall be paid over to
        the Grantors in accordance with Section 3.02 hereof; and (iii) the Collateral Agent may obtain from any applicable court, pending final determination of any claim resulting from an Event of Default, speedy relief in the form of any of the orders
        specified in Article 13 of the Convention and Article X of the Protocol as the Collateral Agent shall determine in its sole and absolute discretion, subject to any procedural requirements prescribed by applicable laws.

       

      
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      (c)          All cash proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in
        accordance with Section 3.02.  Any sale or sales conducted in accordance with the terms of this Section 3.01 shall be deemed conclusive and binding on each Grantor and the Secured Parties.

       

      Section 3.02. Priority of Payments.  The Collateral Agent hereby agrees that all cash proceeds received by the Collateral Agent
        in respect of any Collateral pursuant to Section 3.01 hereof and any payments by any Grantor to the Collateral Agent following an Event of Default shall be paid by the Collateral Agent in the order of priority set forth below:

       

      (a)          first, to the Collateral Agent for the benefit of the Secured Parties, until payment in full in cash of the Secured Obligations then
        outstanding; and

       

      (b)          second, all remaining amounts to the relevant Grantors or whomsoever may be lawfully entitled to receive such amounts.

       

      ARTICLE IV

       

      SECURITY INTEREST ABSOLUTE

       

      Section 4.01. Security Interest Absolute.  A separate action or actions may be brought and prosecuted against each Grantor to
        enforce this Agreement, irrespective of whether any action is brought against any other Grantor or whether any other Grantor is joined in any such action or actions.  Except as otherwise provided in the Loan Documents, all rights of the Collateral
        Agent and the security interests and Liens granted under, and all obligations of each Grantor under, until the Secured Obligations then outstanding are paid in full, this Agreement and each other Loan Document shall be absolute and unconditional,
        irrespective of:

       

      (a)        any lack of validity or enforceability of any Loan Document, Assigned Document or any other agreement or instrument relating thereto;

       

      (b)        any change in the time, manner or place of payment of, the security for, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any
        consent to any departure from any Loan Document or Assigned Document or any other agreement or instrument relating thereto;

       

      (c)         any taking, exchange, release or non-perfection of the Collateral or any other collateral or taking, release or amendment or waiver of or consent to departure from any guaranty, for all
        or any of the Secured Obligations;

       

      (d)         any manner of application of Collateral, or proceeds thereof, to all or any of the Secured Obligations, or any manner of sale or other disposition of any Collateral for all or any of
        the Secured Obligations or any other assets of the Grantors;

       

      
        - 26 -

        
          

      

      (e)          any change, restructuring or termination of the corporate structure or existence of any Grantor; or

       

      (f)          any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor or a third-party grantor of a security interest or a Person deemed to be a
        surety.

       

      ARTICLE V

       

      THE COLLATERAL AGENT

       

      The Collateral Agent and the Secured Parties agree among themselves as follows:

       

      Section 5.01. Authorization and Action.  (a) Each Secured Party by its acceptance of the benefits of this Agreement hereby
        appoints and authorizes Bank of Utah as the initial Collateral Agent to take such action as trustee on behalf of the Secured Parties and to exercise such powers and discretion under this Agreement and the other Loan Documents as are specifically
        delegated to the Collateral Agent by the terms of this Agreement and of the Loan Documents, and no implied duties and covenants shall be deemed to arise against the Collateral Agent.  For the avoidance of doubt, each Secured Party by its acceptance
        of the benefits of this Agreement hereby requests and instructs the Collateral Agent to enter into all Assigned Lease-related documents and instruments on this date and as may arise from time to time for the purpose of establishing and maintaining
        its security interest for itself and for the benefit of the other Secured Parties in respect of any Assigned Lease.

       

      (b)         The Collateral Agent accepts such appointment and agrees to perform the same but only upon the terms of this Agreement (including any quiet enjoyment covenants given to the Lessees) and
        agrees to receive and disburse all moneys received by it in accordance with the terms of this Agreement.  The Collateral Agent in its individual capacity shall not be answerable or accountable under any circumstances, except for its own willful
        misconduct or gross negligence (or simple negligence in the handling of funds or breach of any of its representations or warranties set forth in this Agreement) and the Collateral Agent shall not be liable for any action or inaction of any Grantor
        or any other parties to any of the Loan Documents.

       

      Section 5.02. Absence of Duties.  The powers conferred on the Collateral Agent under this Agreement with respect to the
        Collateral are solely to protect its interests in this Agreement and shall not impose any duty upon it, except as explicitly set forth herein, to exercise any such powers. Except for the safe custody of any Collateral in its possession and the
        accounting for moneys actually received by it under this Agreement, the Collateral Agent shall not have any duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other
        matters relative to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve or perfect rights against any parties or any other rights pertaining to
        any Collateral.  The Collateral Agent shall not have any duty to ascertain or inquire as to the performance or observance of any covenants, conditions or agreements on the part of any Grantor or Lessee.

       

      
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      Section 5.03. Representations or Warranties.  The Collateral Agent shall not make nor shall it be deemed to have made any representations or warranties as to
        the validity, legality or enforceability of this Agreement, any other Loan Document or any other document or instrument or as to the correctness of any statement contained in any thereof, or as to the validity or sufficiency of any of the pledge
        and security interests granted hereby, except that the Collateral Agent in its individual capacity hereby represents and warrants (a) that each such specified document to which it is a party has been or will be duly executed and delivered by one of
        its officers who is and will at such time be duly authorized to execute and deliver such document on its behalf, and (b) this Agreement is or will be the legal, valid and binding obligation of the Collateral Agent in its individual capacity,
        enforceable against the Collateral Agent in its individual capacity in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally.

       

      Section 5.04. Reliance; Agents; Advice of Counsel.  (a) The Collateral Agent shall not incur any liability to anyone as a result
        of acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties.  The
        Collateral Agent may accept a copy of a resolution of the board or other governing body of any party to this Agreement or any Loan Document, certified by the Secretary or an Assistant Secretary thereof or other duly authorized Person of such party
        as duly adopted and in full force and effect, as conclusive evidence that such resolution has been duly adopted by said board or other governing body and that the same is in full force and effect.  As to any fact or matter the manner of
        ascertainment of which is not specifically described in this Agreement, the Collateral Agent shall be entitled to receive and may for all purposes hereof conclusively rely, and shall be fully protected in acting or refraining from acting, on a
        certificate, signed by an officer of any duly authorized Person, as to such fact or matter, and such certificate shall constitute full protection to the Collateral Agent for any action taken or omitted to be taken by them in good faith in reliance
        thereon.  The Collateral Agent shall assume, and shall be fully protected in assuming, that each other party to this Agreement is authorized by its constitutional documents to enter into this Agreement and to take all action permitted to be taken
        by it pursuant to the provisions of this Agreement, and shall not inquire into the authorization of such party with respect thereto.

       

      (b)          The Collateral Agent may execute any of its powers hereunder or perform any duties under this Agreement either directly or by or through agents, including financial advisors, or
        attorneys or a custodian or nominee, provided, however, that the appointment of any agent shall not relieve the Collateral
        Agent of its responsibilities or liabilities hereunder.

       

      (c)         The Collateral Agent may consult with counsel and any opinion of counsel or any advice of such counsel shall be full and complete authorization and protection in respect of any action
        taken or suffered or omitted by it under this Agreement in good faith and in accordance with such advice or opinion of counsel.

       

      (d)         The Collateral Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this
        Agreement or in relation hereto, at the request, order or direction of any of the Secured Parties, pursuant to the provisions of this Agreement, unless such Secured Party shall have offered to the Collateral Agent reasonable security or indemnity
        reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby.

       

      
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      (e)        The Collateral Agent shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the
        exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability is not reasonably assured to it, and none of the
        provisions contained in this Agreement shall in any event require the Collateral Agent to perform, or be responsible or liable for the manner of performance of, any obligations of any Grantor under any of the Loan Documents.

       

      (f)         If the Collateral Agent incurs expenses or renders services in connection with an exercise of remedies specified in Section 3.01, such expenses (including the fees and expenses of its
        counsel) and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors' rights generally.

       

      (g)         The Collateral Agent shall not be charged with knowledge of an Event of Default unless the Collateral Agent obtains actual knowledge of such event or the Collateral Agent receives
        written notice of such event from any of the Secured Parties.

       

      (h)        The Collateral Agent shall not have any duty to monitor the performance of any Grantor or any other party to the Loan Documents, nor shall the Collateral Agent have any liability in
        connection with the malfeasance or nonfeasance by such parties.  The Collateral Agent shall not have any liability in connection with compliance by any Grantor or any Lessee under a Lease with statutory or regulatory requirements related to the
        Collateral, any Pool Aircraft or any Lease.  The Collateral Agent shall not make or be deemed to have made any representations or warranties with respect to the Collateral, any Pool Aircraft or any Lease or the validity or sufficiency of any
        assignment or other disposition of the Collateral, any Pool Aircraft or any Lease.

       

      Section 5.05. Cape Town Convention.  The Collateral Agent, during the term of this Agreement, shall establish and maintain a
        valid and existing account as a Transacting User Entity with the International Registry and appoint an Administrator and/or a Professional User Entity to make registrations in regard to the Collateral as required by this Agreement.

       

      Section 5.06. No Individual Liability.  The Collateral Agent shall not have any individual liability in respect of all or any
        part of the Secured Obligations, and all shall look, subject to the lien and priorities of payment provided herein and in the Loan Documents, only to the property of the Grantors (to the extent provided in the Loan Documents) for payment or
        satisfaction of the Secured Obligations pursuant to this Agreement and the other Loan Documents.

       

      ARTICLE VI

       

      SUCCESSOR COLLATERAL AGENT

       

      Section 6.01. Resignation and Removal of the Collateral Agent.  The Collateral Agent may resign at any time without cause by
        giving at least thirty (30) days' prior written notice to FLL and the Lenders.  The Required Lenders may at any time remove the Collateral Agent without cause by an instrument in writing delivered to FLL, the Lenders and the Collateral Agent.  No
        resignation by or removal of the Collateral Agent pursuant to this Section 6.01 shall become effective prior to the date of appointment by the Required Lenders of a successor Collateral Agent and the acceptance of such appointment by such successor
        Collateral Agent.

       

      
        - 29 -

        
          

      

      Section 6.02. Appointment of Successor.  (a) In the case of the resignation or removal of the Collateral Agent, the Required Lenders shall promptly appoint
        a successor Collateral Agent.  So long as no Event of Default shall have occurred and be continuing, any such successor Collateral Agent shall as a condition to its appointment be reasonably acceptable to FLL.  If a successor Collateral Agent shall
        not have been appointed and accepted its appointment hereunder within sixty (60) days after the Collateral Agent gives notice of resignation, the retiring Collateral Agent, the Administrative Agent or the Required Lenders may petition any court of
        competent jurisdiction for the appointment of a successor Collateral Agent.  Any successor Collateral Agent so appointed by such court shall immediately and without further act be superseded by any successor Collateral Agent appointed as provided
        in the first sentence of this paragraph within one year from the date of the appointment by such court.

       

      (b)        Any successor Collateral Agent shall execute and deliver to the relevant Secured Parties and the Borrower an instrument accepting such appointment.  Upon the acceptance of any
        appointment as Collateral Agent hereunder, a successor Collateral Agent, upon the execution and filing or recording of such financing statements, or amendments thereto, and such amendments or supplements to this Agreement, and such other
        instruments or notices, as may be necessary, or as the Administrative Agent may reasonably request in order to continue the perfection (if any) of the Liens granted or purported to be granted hereby, shall succeed to and become vested with all the
        rights, powers, discretion, privileges and duties of the retiring Collateral Agent, and the retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents.  The retiring Collateral
        Agent shall take all steps necessary to transfer all Collateral in its possession and all its control over the Collateral to the successor Collateral Agent within ten (10) Business Days of the successor Collateral Agent accepting its appointment. 
        All actions under this paragraph (b) shall be at the expense of FLL; provided that if a successor Collateral Agent has been appointed as a result of the circumstances described in Section 6.02(d), any
        actions under this paragraph (b) as relating to such appointment shall be at the expense of the successor Collateral Agent.

       

      (c)        The Collateral Agent shall be an Eligible Institution, if there be such an institution willing, able and legally qualified to perform the duties of the Collateral Agent hereunder and
        unless such institution is an Affiliate of a Secured Party or an Event of Default has occurred and is continuing, reasonably acceptable to FLL.

       

      (d)         Any corporation into which the Collateral Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or
        consolidation to which the Collateral Agent shall be a party, or any corporation to which substantially all the business of the Collateral Agent may be transferred, shall be the Collateral Agent under this Agreement without further act.

       

      
        - 30 -

        
          

      

      ARTICLE VII

       

      INDEMNITY AND EXPENSES

       

      Section 7.01. Indemnity.  (a) Each of the Grantors shall indemnify, defend and hold harmless the Collateral Agent (and its
        officers, directors, employees, representatives and agents) from and against, any loss, liability or expense (including reasonable legal fees and expenses) incurred by it without negligence or bad faith on its part in connection with the acceptance
        or administration of this Agreement and its duties hereunder, including the costs and expenses of defending itself against any claim or liability and of complying with any process served upon it or any of its officers in connection with the
        exercise or performance of any of its powers or duties hereunder and hold it harmless against, any loss, liability or reasonable expense incurred without negligence or bad faith on its part.  The Collateral Agent (i) must provide reasonably prompt
        notice to the applicable Grantor of any claim for which indemnification is sought, provided that the failure to provide notice shall only limit the indemnification provided hereby to the extent of any
        incremental expense or actual prejudice as a result of such failure; and (ii) must not make any admissions of liability or incur any significant expenses after receiving actual notice of the claim or agree to any settlement without the written
        consent of the applicable Grantor, which consent shall not be unreasonably withheld.  No Grantor shall be required to reimburse any expense or indemnity against any loss or liability incurred by the Collateral Agent through negligence or bad faith.

       

      Each Grantor, as applicable, may, in its sole discretion, and at its expense, control the defense of the claim including, without limitation, designating counsel for the Collateral Agent and
        controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of any claim; provided that (i) the applicable Grantor may not agree to any settlement involving any indemnified
        person that contains any element other than the payment of money and complete indemnification of the indemnified person without the prior written consent of the affected indemnified person, (ii) the applicable Grantor shall engage and pay the
        expenses of separate counsel for the indemnified person to the extent that the interests of the Collateral Agent are in conflict with those of such Grantor and (iii) the indemnified person shall have the right to approve the counsel designated by
        such Grantor which consent shall not be unreasonably withheld.

       

      (b)       Each Grantor shall within ten (10) Business Days after demand pay to the Collateral Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its
        counsel and of any experts and agents, that the Collateral Agent may incur in connection with (i) the administration of this Agreement (in accordance with fee arrangements agreed between the Collateral Agent and FLL), (ii) the custody,
        preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or any other Secured Party against such Grantor
        hereunder or (iv) the failure by any Grantor to perform or observe any of the provisions hereof.

       

      Section 7.02. Secured Parties' Indemnity.  (a) The Collateral Agent shall be entitled to be indemnified (subject to the
        limitations and requirements described in Section 7.01 mutatis mutandis) by the Lenders to the sole satisfaction of the Collateral Agent before proceeding to exercise any right or power under this Agreement
        at the request or direction of the Administrative Agent.

       

      
        - 31 -

        
          

      

      (b)      In order to recover under clause (a) above, the Collateral Agent: (i) must provide reasonably prompt notice to the Administrative Agent of any claim for which indemnification is sought, provided that the failure to provide notice shall only limit the indemnification provided hereby to the extent of any incremental expense or actual prejudice as a result of such failure; and (ii) must not make
        any admissions of liability or incur any significant expenses after receiving actual notice of the claim or agree to any settlement without the written consent of the Administrative Agent which consent shall not be unreasonably withheld.

       

      (c)          The Administrative Agent may, in its sole discretion, and at its expense, control the defense of the claim including, without limitation, designating counsel for the Collateral Agent
        and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of any claim; provided that (i) the Administrative Agent may not agree to any settlement involving any
        indemnified person that contains any element other than the payment of money and complete indemnification of the indemnified person without the prior written consent of the affected indemnified person, (ii) the Administrative Agent shall engage and
        pay the expenses of separate counsel for the indemnified person to the extent that the interests of the Collateral Agent are in conflict with those of the Administrative Agent and (iii) the indemnified person shall have the right to approve the
        counsel designated by the Administrative Agent which consent shall not be unreasonably withheld.

       

      (d)         The provisions of Section 7.01 and this Section 7.02 shall survive the termination of this Agreement or the earlier resignation or removal of the Collateral Agent.

       

      Section 7.03. No Compensation from Secured Parties.  The Collateral Agent agrees that it shall have no right against the Secured
        Parties for any fee as compensation for its services in such capacity.

       

      Section 7.04. Collateral Agent Fees.  In consideration of the Collateral Agent's performance of the services provided for under
        this Agreement, the Grantors shall pay to the Collateral Agent an annual fee set forth under a separate agreement between FLL and the Collateral Agent and shall reimburse the Collateral Agent for reasonable expenses incurred including those
        associated with the International Registry.

       

      ARTICLE VIII

       

      MISCELLANEOUS

       

      Section 8.01. Amendments; Waivers; Etc.  (a) No amendment or waiver of any provision of this Agreement, and no consent to any
        departure by any party from the provisions of this Agreement, shall in any event be effective unless the same shall be in writing and signed by the Administrative Agent and each party hereto. No failure on the part of the Collateral Agent to
        exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The
        Collateral Agent may, but shall have no obligation to, execute and deliver any amendment or modification which would affect its duties, powers, rights, immunities or indemnities hereunder.

       

      
        - 32 -

        
          

      

      (b)          Upon the execution and delivery by any Person of a Grantor Supplement, (i) such Person shall be referred to as an "Additional Grantor" and shall be and become a Grantor hereunder, and
        each reference in this Agreement to "Grantor" shall also mean and be a reference to such Additional Grantor, (ii) Annexes I, II, III and IV attached to each Grantor Supplement shall be incorporated into, become a part of and supplement Schedules I,
        II, III and IV, respectively, and the Collateral Agent may attach such Annexes as supplements to such Schedules; and each reference to such Schedules shall be a reference to such Schedules as so supplemented and (iii) such Additional Grantor shall
        be a Grantor for all purposes under this Agreement and shall be bound by the obligations of the Grantors hereunder.

       

      (c)          Upon the execution and delivery by a Grantor of a Collateral Supplement, Annexes I and II to each Collateral Supplement shall be incorporated into, become a part of and supplement
        Schedules I and II, respectively, and the Collateral Agent may attach such Annexes as supplements to such Schedules; and each reference to such Schedules shall be a reference to such Schedules as so supplemented.

       

      Section 8.02. Addresses for Notices.  All notices and other communications provided for hereunder shall be in writing (including
        telecopier) and telecopied or delivered to the intended recipient at its address specified, as follows:

       

      For each Grantor for whom Wells Fargo Trust Company, National Association acts as Owner Trustee:

       

      Wells Fargo Trust Company, National Association

      299 South Main Street

      5th Floor

      MAC: U1228-051

      Salt Lake City, Utah 84111

      USA

      Tel: +1 (801) 246-6000

      Fax: +1 (801) 246-7142

      Attention: Corporate Trust Lease Group

       

      with a copy to:

       

      BBAM US LP

      50 California Street, 14th Floor

      San Francisco, CA 94111

      Attention: General Counsel

      Fax: +1 (415) 618-3337

       

      
        - 33 -

        
          

      

      For each Grantor for whom Wilmington Trust SP Services (Dublin) Limited acts as Owner Trustee:

       

      Wilmington Trust SP Services (Dublin) Limited

      Fourth Floor

      3 George's Dock

      IFSC

      Dublin 1

      Ireland

      Fax: +1 353 1 612 5550

      Attention: Managing Director

      Email: Ireland@Wilmingtontrust.com

       

      with a copy to:

       

      BBAM Aviation Services Limited

      West Pier Business Campus

      Dun Laoghaire

      Co. Dublin A96 N6T7, Ireland

      Attention: General Counsel

      Fax: +353 1 231 1901

       

      For each other Grantor:

       

      c/o Fly Leasing Limited

      West Pier Business Campus

      Dun Laoghaire

      Co. Dublin A96 N6T7, Ireland

      Attention: General Counsel

      Fax: +353 1 231 1901

       

      with a copy to:

       

      BBAM US LP

      50 California Street, 14th Floor

      San Francisco, CA 94111

      USA

      Attention: General Counsel

      Email: legal@bbam.com

      Fax: +1 415 618 3337

      Telephone: +1 415 267 1600

       

      
        - 34 -

        
          

      

      For the Collateral Agent:

       

      Bank of Utah

      50 South 200 East, Suite 110

      Salt Lake City, Utah 84111

      USA

      Tel: +1 801 924 3690

      Fax: +1 801 924 3630

      Attention: Corporate Trust Services

       

      or, as to each party, at such other address as shall be designated by such party in a written notice to each other party complying as to delivery with the terms of this Section 8.02.  Each such notice shall be
        effective (a) on the date personally delivered to an authorized officer of the party to which sent, or (b) on the date transmitted by legible telecopier transmission with a confirmation of receipt.

       

      Section 8.03. No Waiver; Remedies.  No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any
        right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and
        not exclusive of any remedies provided by law.

       

      Section 8.04. Severability.  If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity,
        legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

       

      Section 8.05. Continuing Security Interest; Assignments.  Subject to Section 8.06, this Agreement shall create a continuing
        security interest in the Collateral and shall (a) remain in full force and effect until the earlier of the payment in full in cash of the Secured Obligations then outstanding to the Secured Parties, (b) be binding upon each Grantor, its successors
        and assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Secured Parties and their respective successors, permitted transferees and permitted assigns.  Without limiting the generality
        of the foregoing subsection (c), any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under any Loan Document to which it is a party in accordance with the terms thereof to any other permitted Person
        or entity, and such other permitted Person or entity shall thereupon become vested with all the rights in respect thereof granted to such Secured Party herein or otherwise.

       

      Section 8.06. Release and Termination.  (a) Upon any sale, lease, transfer or other disposition or removal from the Designated
        Pool of any item of Collateral in accordance with the terms of the Loan Documents, such item of Collateral will be deemed irrevocably and unconditionally released from the Lien hereof, and the Collateral Agent will, at such Grantor's expense,
        execute and deliver to the Grantor of such item of Collateral such documents as such Grantor shall reasonably request and provide to the Collateral Agent to evidence the release of such item of Collateral from the assignment and security interest
        granted hereby, and to the extent that (A) the Collateral Agent's consent is required for any deregistration of the interests in such released Collateral from the International Registry or other registry or (B) the Collateral Agent is required to
        initiate any such deregistration, the Collateral Agent shall ensure that such consent or such initiation of such deregistration is effected.  Any amounts released from the LTV Securities Account by the Collateral Agent pursuant to a Release Request
        or Section 2.12 of the Credit Agreement, in each case in accordance with the terms and conditions of the Loan Documents, without further act, shall be deemed irrevocably and unconditionally released from the Lien hereof.

       

      
        - 35 -

        
          

      

      (b)          Upon the payment in full in cash of the Secured Obligations then outstanding, the pledge, assignment and security interest granted by Section 2.01 hereof shall terminate, the
        Collateral Agent shall cease to be a party to this agreement, and all provisions of this Agreement (except for this Section 8.06(b)) relating to the Secured Obligations, the Secured Parties or the Collateral Agent shall cease to be of any effect
        insofar as they relate to the Secured Obligations, the Secured Parties or the Collateral Agent.  Upon any such termination, the Collateral Agent will, at the relevant Grantor's expense, execute and deliver to each relevant Grantor such documents as
        such Grantor shall prepare and reasonably request to evidence such termination.

       

      (c)          If, prior to the termination of this Agreement, the Collateral Agent ceases to be the Collateral Agent in accordance with the definition of "Collateral Agent" in Section 1.01, all
        certificates, instruments or other documents being held by the Collateral Agent at such time shall, within five (5) Business Days from the date on which it ceases to be the Collateral Agent, be delivered to the successor Collateral Agent.

       

      Section 8.07. Currency Conversion.  If any amount is received or recovered by the Collateral Agent in a currency (the "Received Currency") other than the currency in which such amount was expressed to be payable (the "Agreed Currency"), then the amount in the Received Currency actually
        received or recovered by the Collateral Agent, to the extent permitted by law, shall only constitute a discharge of the relevant Grantor to the extent of the amount of the Agreed Currency which the Collateral Agent was or would have been able in
        accordance with its or his normal procedures to purchase on the date of actual receipt or recovery (or, if that is not practicable, on the next date on which it is so practicable), and, if the amount of the Agreed Currency which the Collateral
        Agent is or would have been so able to purchase is less than the amount of the Agreed Currency which was originally payable by the relevant Grantor, such Grantor shall pay to the Collateral Agent for the benefit of the Secured Parties such amount
        as it shall determine to be necessary to indemnify the Collateral Agent and the Secured Parties against any loss sustained by it as a result (including the cost of making any such purchase and any premiums, commissions or other charges paid or
        incurred in connection therewith) and so that, to the extent permitted by law, (i) such indemnity shall constitute a separate and independent obligation of each Grantor distinct from its obligation to discharge the amount which was originally
        payable by such Grantor and (ii) shall give rise to a separate and independent cause of action and apply irrespective of any indulgence granted by the Collateral Agent and continue in full force and effect notwithstanding any judgment, order, claim
        or proof for a liquidated amount in respect of the amount originally payable by any Grantor or any judgment or order and no proof or evidence of any actual loss shall be required.

       

      Section 8.08. Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
        YORK.

       

      
        - 36 -

        
          

      

      Section 8.09. Jurisdiction; Consent to Service of Process.  (a) To the extent permitted by applicable law, each party hereby irrevocably and unconditionally
        submits, for itself and its property, to the exclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding
        arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action
        or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action 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.  Nothing in this Agreement shall affect any right that any Secured Party may otherwise have to bring any action or proceeding relating to this Agreement
        or the other Loan Documents against any Borrower Party or its properties in the courts of any jurisdiction.

       

      (b)          Each party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of
        venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any New York State or federal court.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law,
        the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

       

      (c)          Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 8.02.  Nothing in this Agreement will affect the right of any
        party to this Agreement to serve process in any other manner permitted by law.

       

      Section 8.10. Counterparts.  This Agreement may be executed in counterparts (and by different parties hereto on different
        counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the
        subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This Agreement (i) will become effective when the Lenders shall have received counterparts hereof that,
        when taken together, bear the signatures of each of the other parties hereto and (ii) thereafter will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart
        of a signature page of this Agreement by telecopy or e-mail will be effective as delivery of a manually executed counterpart of this Agreement.

       

      Section 8.11.  Table of Contents, Headings, Etc.  The Table of Contents and headings of the Articles and Sections of this
        Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms and provisions hereof.

       

      Section 8.12.  Non-Invasive Provisions.  (a) Notwithstanding any other provision of the Loan Documents, the Collateral Agent
        agrees that, so long as no Event of Default shall have occurred and be continuing, not to take any action or cause to be taken any action, or permit any person claiming by, through or on behalf of it to take any action or cause any action, that
        would interfere with the possession, use, operation and quiet enjoyment of and other rights with respect to any Pool Aircraft or Collateral related thereto and all rents, revenues, profits and income therefrom, including, the right to enforce
        manufacturers' warranties, the right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair of the Pool Aircraft and the right to engage in pooling, leasing and similar actions, in each case in accordance with the terms
        of this Agreement.

       

      
        - 37 -

        
          

      

      (b)          Notwithstanding any other provision of the Loan Documents, the Collateral Agent agrees that, so long as no "Event of Default" (or similar term) under a Lease (as defined in such Lease)
        shall have occurred and be continuing, not to take any action or cause to be taken any action, or permit any person claiming by, through or on behalf of it to take any action or cause any action, that would interfere with the possession, use,
        operation and quiet enjoyment of and other rights of the Lessee with respect to any Pool Aircraft or Collateral related thereto and all rents, revenues, profits and income therefrom, including, the right to enforce manufacturers' warranties, the
        right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair of the Pool Aircraft and the right to engage in pooling, leasing and similar actions, in each case in accordance with the terms of such Lease.

       

      (c)          The Collateral Agent agrees to release any Lien the Collateral Agent may have upon any Engine upon (i) a Grantor providing the Collateral Agent with written notice of a transfer
        thereof promptly after receipt of a notice thereof from the relevant Lessee and with a copy of the bill of sale or other instrument evidencing the transfer of title of such replacement Engine to a Grantor, (ii) in the case of the transfer of title
        to an Engine initiated by a Grantor, the Grantor providing the Collateral Agent with a certificate of such transfer and a copy of the bill of sale or other instrument evidencing the transfer of title of a replacement Engine to a Grantor, or (iii)
        upon the total loss payment or Loan repayment being received (or replacement aircraft being provided) in a case where the Airframe, but not such Engine, was the subject of a total loss; provided that, for
        the avoidance of doubt, the Collateral Agent shall not release any Lien upon an Engine that is not replaced by a Grantor or a Lessee, unless such Engine is associated with an aircraft that was subject to a total loss or otherwise removed from the
        Designated Pool.  The Borrower shall at the request of the Collateral Agent execute a supplement to this Agreement to evidence that any such replacement Engine has become subject to the Lien of this Agreement and the Collateral Agent shall, at the
        request of the Borrower, execute a supplement to this Agreement to evidence the release of the applicable Engine from the Lien of the Collateral Agent.

       

      (d)          The Lenders and the Collateral Agent agree that they will not claim, and upon the request of the relevant Grantor, the Collateral Agent will confirm in writing that it does not claim,
        any right, title or interest in any engine or part (including any audio visual, telephonic, entertainment or similar equipment) that is installed on a Pool Aircraft which does not constitute an "engine" or "part" as defined in the applicable Lease.

       

      (e)          For the avoidance of doubt, the Collateral Agent agrees that the relevant Grantor may from time to time lease out an engine that is part of a Pool Aircraft or lease in an engine that
        is not part of a Pool Aircraft as it determines in accordance with Leasing Company Practice.

      

      

      
        - 38 -

        
          

      

      
      Section 8.13. Limited Recourse.  To the extent permitted by applicable law, no recourse under any obligation, covenant or
        agreement of any party contained in this Agreement shall be had against any shareholder (not including any Grantor as a shareholder of any other Grantor hereunder), officer or director of the relevant party as such, by the enforcement of any
        assessment or by any proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is a corporate obligation of the relevant party and no personal liability shall attach to or be incurred by the
        shareholders (not including any Grantor as a shareholder of any other Grantor hereunder), officers or directors of the relevant party as such, or any of them under or by reason of any of the obligations, covenants or agreements of such relevant
        party contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by such party of any of such obligations, covenants or agreements, either at law or by statute or constitution, of every such shareholder
        (not including any Grantor as a shareholder of any other Grantor hereunder), officer or director is hereby expressly waived by the other parties as a condition of and consideration for the execution of this Agreement.

       

      [The Remainder of this Page is Intentionally Left Blank]

       

      
        - 39 -

        
          

      

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by its representative or officer thereunto duly authorized as of the date first above written. 
        In the case of Fly Willow Aircraft Holdings DAC, such party intends that this Agreement be executed and delivered as a Deed and have caused this Agreement to be so executed and delivered.

       

      	 	
              FLY WILLOW FUNDING LIMITED

            
	 	 	 
	 	
              By:

            	
              /s/ Vincent Cannon

            
	 	 	
              Name:  Vincent Cannon

            
	 	 	
              Title:  Director

            

       

      

      
        - 40 -

        
          

      

      	 	
              FLY LEASING LIMITED

            
	 	 
	 	
              By:

            	
              /s/ Colm Barrington

            
	 	 	
              Name:  Colm Barrington

            
	 	 	
              Title:  Chief Executive Officer

            

       

      

      
        - 41 -

        
          

      

      	 	
              SIGNED AND DELIVERED AS A DEED)

            
	 	
              by:

            
	 	
              /s/ Declan Cotter

            
	 	
              Declan Cotter

            
	 	 
	 	
              as the duly authorised attorney of FLY WILLOW AIRCRAFT HOLDINGS DAC

            
	 	 
	 	
              in the presence of:

            
	 	 
	 	
              Signature of Witness:

            	
              /s/ Kerrie Coghlan

            
	 	
              Name of Witness:

            	
              Kerrie Coghlan

            
	 	
              Address of Witness:

            	
              Dublin

            
	 	 	
              Ireland

            
	 	
              Occupation of Witness:

            	
              E.A.

            

      

      

      
        - 42 -

        
          

      

      	 	
              BANK OF UTAH, as the Collateral Agent

            
	 	 
	 	
              By:

            	
              /s/ Jon Croasmun

            
	 	 	
              Name:  Jon Croasmun

            
	 	 	
              Title:  Senior Vice President

            

       

      

      

      - 43 -

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