Document:

e62075683ex4_13.htm

Exhibit 4.13

EXECUTION VERSION

________________________________________________________________

NOTE PURCHASE AGREEMENT

Dated as of October 3, 2012

Among

CONTINENTAL AIRLINES, INC.,

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Pass Through Trustee under each of the

Pass Through Trust Agreements

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Subordination Agent

U.S. BANK NATIONAL ASSOCIATION,

as Escrow Agent

and

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Paying Agent

________________________________________________________________

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INDEX TO NOTE PURCHASE AGREEMENT

 

Page

 

	
SECTION 1.  Financing of Aircraft

	
3

	
SECTION 2.  Conditions Precedent

	
7

	
SECTION 3.  Representations and Warranties

	
7

	
SECTION 4.  Covenants

	
12

	
SECTION 5.  Notices

	
16

	
SECTION 6.  Expenses

	
16

	
SECTION 7.  Further Assurances

	
17

	
SECTION 8.  Miscellaneous

	
18

	
SECTION 9.  Governing Law

	
19

 

Schedules

 

Schedule I          Eligible Aircraft and Scheduled Delivery Months

Schedule II        Trust Supplements

Schedule III       Required Terms

 

Annex

 

Annex A             Definitions

 

Exhibits

 

	
Exhibit A

	
Form of Closing Notice

	
Exhibit B

	
Form of Participation Agreement

	
Exhibit C

	
Form of Indenture

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NOTE PURCHASE AGREEMENT

 

This NOTE PURCHASE AGREEMENT, dated as of October 3, 2012, among (i)CONTINENTAL AIRLINES, INC., a Delaware corporation (the "Company"), (ii)WILMINGTON TRUST, NATIONAL ASSOCIATION ("WTNA"), a national banking association, not in its individual capacity except as otherwise expressly provided herein, but solely as trustee (in such capacity together with its successors in such capacity, the "Pass Through Trustee") under each of the two separate Pass Through Trust Agreements (as defined below), (iii) WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as subordination agent and trustee (in such capacity together with its successors in such capacity, the "Subordination Agent") under the Intercreditor Agreement (as defined below), (iv) U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Escrow Agent (in such capacity together with its successors in such capacity, the "Escrow Agent"), under each of the Escrow and Paying Agent Agreements (as defined below) and (v) WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as Paying Agent (in such capacity together with its successors in such capacity, the "Paying Agent") under each of the Escrow and Paying Agent Agreements.

 

W I T N E S S E T H:

 

WHEREAS, capitalized terms used but not defined herein shall have the meanings ascribed to such terms in Annex A hereto;

 

WHEREAS, the Company has obtained commitments from the Manufacturer pursuant to the applicable Aircraft Purchase Agreement for the delivery of 18 Boeing 737-924ER aircraft and four Boeing 787-8 aircraft listed in Schedule I hereto (together with any aircraft substituted therefor in accordance with the applicable Aircraft Purchase Agreement prior to the delivery thereof, the "Eligible Aircraft");

 

WHEREAS, pursuant to this Agreement the Company wishes to finance each Boeing 737-924ER aircraft and three Boeing 787-8 aircraft included in the Eligible Aircraft (such Eligible Aircraft to be financed hereunder, the "Aircraft");

 

WHEREAS, pursuant to the Basic Pass Through Trust Agreement and each of the Trust Supplements set forth in Schedule II hereto, and concurrently with the execution and delivery of this Agreement, separate grantor trusts (collectively, the "Pass Through Trusts" and, individually, a "Pass Through Trust") have been created to facilitate certain of

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the transactions contemplated hereby, including, without limitation, the issuance and sale of pass through certificates pursuant thereto (collectively, the "Certificates") to provide for a portion of the financing of the Aircraft contemplated hereby;

 

WHEREAS, the Company has entered into the Underwriting Agreement, dated as of September 19, 2012 (the "Underwriting Agreement") with the Underwriters named therein (the "Underwriters"), which provides that the Company will cause the Pass Through Trustee under the Class A Pass Through Trust (the "Class A Pass Through Trustee") and the Pass Through Trustee under the Class B Pass Through Trust (the “Class B Pass Through Trustee”) to issue and sell the Class A Certificates and the Class B Certificates, respectively, to the Underwriters on the Issuance Date;

 

WHEREAS, concurrently with the execution and delivery of this Agreement, (i) the Escrow Agent and the Depositary have entered into two Deposit Agreements, dated as of the Issuance Date, one each relating to the Class A and Class B Pass Through Trust (together, the "Deposit Agreements") whereby the Escrow Agent agreed to direct the Underwriters to make certain deposits referred to therein on the Issuance Date (the "Initial Deposits") and to permit the applicable Pass Through Trustees to make additional deposits from time to time thereafter (the Initial Deposits together with such additional deposits are collectively referred to as the "Deposits") and (ii) the applicable Pass Through Trustees, Underwriters, Paying Agents and Escrow Agents have entered into two Escrow and Paying Agent Agreements, dated as of the Issuance Date, one each relating to the Class A and Class B Pass Through Trust (together, the "Escrow and Paying Agent Agreements"), whereby, among other things, (a) the Underwriters agreed to deliver an amount equal to the amount of the Initial Deposits to the Depositary on behalf of the applicable Escrow Agent and (b) the applicable Escrow Agent, upon the Depositary receiving such amount, agreed to deliver escrow receipts to be affixed to each Certificate;

 

WHEREAS, upon receipt of a Closing Notice with respect to an Aircraft, subject to the terms and conditions of this Agreement, the applicable Pass Through Trustees will enter into the applicable Financing Agreements relating to such Aircraft;

 

WHEREAS, upon the financing of each Aircraft, the Class A and Class B Pass Through Trustees each will fund its purchase of Equipment Notes with the proceeds of one or more Deposits withdrawn by the applicable Escrow Agent under the

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related Deposit Agreement bearing the same interest rate as the Certificates issued by the applicable Pass Through Trust (or, if financed on the Issuance Date, with a portion of the proceeds from the offering of the Certificates); and

 

WHEREAS, concurrently with the execution and delivery of this Agreement, (i) Natixis S.A., acting through its New York Branch(the "Liquidity Provider"), has entered into two revolving credit agreements, one each for the benefit of the Certificateholders of the Class A and Class B Pass Through Trusts, in each case, with the Subordination Agent, as agent for the Pass Through Trustee on behalf of each such Pass Through Trust (each such revolving credit agreement with the Liquidity Provider, a "Liquidity Facility") and (ii) the Pass Through Trustees, the Liquidity Provider and the Subordination Agent have entered into the Intercreditor Agreement, dated as of the date hereof (the "Intercreditor Agreement").

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual agreements herein contained and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.  Financing of Aircraft.  (a)  The Company confirms that it has entered into each Aircraft Purchase Agreement with the Manufacturer pursuant to which the Company has agreed to purchase, and the Manufacturer has agreed to deliver, the Eligible Aircraft subject thereto in the months specified in Schedule I hereto, all on and subject to terms and conditions specified in such Aircraft Purchase Agreement.  The Company agrees to finance the Aircraft in the manner provided herein, all on and subject to the terms and conditions hereof and of the relevant Financing Agreements.

 

(b)           In furtherance of the foregoing, the Company agrees to give the parties hereto, the Depositary and each of the Rating Agencies not less than two Business Days' prior notice substantially in the form of Exhibit A hereto (a "Closing Notice") of the scheduled closing date (the "Scheduled Closing Date") (or, in the case of a substitute Closing Notice under Section 1(e) or (f) hereof, one Business Day's prior notice) in respect of the financing of each Aircraft under this Agreement, which notice shall:

 

(i)  specify the Scheduled Closing Date of such Aircraft (which shall be a Business Day before the Cut-off Date and, except as provided in Section 1(f) hereof, the date (the

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"Funding Date") on which the financing therefor in the manner provided herein shall be consummated);

 

(ii)  instruct each Pass Through Trustee being requested to purchase Equipment Notes pursuant to such Closing Notice (the "Applicable Pass Through Trustees")to enter into the Participation Agreement included in the Financing Agreements with respect to such Aircraft in such form and at such a time on or before the Funding Date specified in such Closing Notice and to perform its obligations thereunder;

 

(iii) instruct each of the Class A and Class B Pass Through Trustees to instruct the relevant Escrow Agent to provide a Notice of Purchase Withdrawal to the Depositary with respect to the Equipment Notes to be issued to such Pass Through Trustee in connection with the financing of such Aircraft (except in the case of any such financing on the Issuance Date); and

 

(iv)  specify the aggregate principal amount of each series of Equipment Notes, if any, to be issued, and purchased by the Applicable Pass Through Trustees, in connection with the financing of such Aircraft scheduled on such Funding Date (which shall in all respects comply with the Required Terms).

 

Notwithstanding the foregoing, in the case of any Aircraft to be financed hereunder on the Issuance Date, the Closing Notice therefor may be delivered to the parties hereto on the Issuance Date.

 

(c)           Upon receipt of a Closing Notice, the Applicable Pass Through Trustees shall, and shall cause the Subordination Agent to, enter into and perform their respective obligations under the Participation Agreement specified in such Closing Notice, provided that such Participation Agreement and the Indenture to be entered into pursuant to such Participation Agreement shall be in the forms thereof annexed hereto in all material respects and, if modified in any material respect, as to which Rating Agency Confirmation shall have been obtained from each Rating Agency by the Company (to be delivered by the Company to the Applicable Pass Through Trustees on or before the relevant Funding Date, it being understood that if Rating Agency Confirmation shall have been received with respect to any Financing Agreements and such Financing Agreements are utilized for subsequent Aircraft (or Substitute Aircraft) without material modifications, no additional Rating Agency Confirmation shall be required); provided, however, that the relevant Financing Agreements as executed and delivered shall not vary

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the Required Terms.  Notwithstanding the foregoing, an Indenture may be modified to the extent required for the issuance of Equipment Notes pursuant to Section 4(a)(vi) of this Agreement, subject to the terms of such Section and Section 9.1(c) or 9.1(d) of the Intercreditor Agreement, whichever may be applicable.  The Company shall pay the reasonable costs and expenses of the Rating Agencies in connection with obtaining any such Rating Agency Confirmation.  With respect to each Aircraft, the Company shall cause WTNA (or such other person that meets the eligibility requirements to act as loan trustee under the Indenture) to execute as Loan Trustee the Financing Agreements relating to such Aircraft to which such Loan Trustee is intended to be a party, and shall concurrently therewith execute such Financing Agreements to which the Company is intended to be a party and perform its respective obligations thereunder.  Upon the request of any Rating Agency, the Company shall deliver or cause to be delivered to such Rating Agency a true and complete copy of each Financing Agreement relating to the financing of each Aircraft together with a true and complete set of the closing documentation (including legal opinions) delivered to the related Loan Trustee, Subordination Agent and Pass Through Trustee under the related Participation Agreement.

 

(d)           The Company agrees that all Equipment Notes issued pursuant to any Indenture shall initially be registered in the name of the Subordination Agent on behalf of the Applicable Pass Through Trustee (or, in the case of any Additional Series Equipment Notes, on behalf of the Additional Pass Through Trustee with respect to the corresponding Additional Certificates).

 

(e)           If after giving any Closing Notice, there shall be a delay in the delivery of the Eligible Aircraft referred to therein, or if on the Scheduled Closing Date of the Eligible Aircraft referred to therein the financing thereof in the manner contemplated hereby shall not be consummated for whatever reason, the Company shall give the parties hereto and the Depositary prompt notice thereof.  Concurrently with the giving of such notice of postponement or subsequently, the Company shall give the parties hereto and the Depositary a substitute Closing Notice specifying the date to which the financing of such Eligible Aircraft (or of another Eligible Aircraft of the same model in lieu thereof) shall have been re-scheduled (which shall be a Business Day before the Cut-off Date on which the Escrow Agents shall be entitled to withdraw one or more Deposits under each of the applicable Deposit Agreements to enable each of the Class A and Class B Pass Through Trustees to fund its

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purchase of the related Equipment Notes).  Upon receipt of any such notice of postponement, each Applicable Pass Through Trustee shall comply with its obligations under Section 5.01 of each of the Trust Supplements and thereafter the financing of such Eligible Aircraft, as specified in such substitute Closing Notice, shall take place on the re-scheduled Closing Date therefor (all on and subject to the terms and conditions of the relevant Financing Agreements) unless further postponed as provided herein.

 

(f)           Anything in this Section 1 to the contrary notwithstanding, the Company shall have the right to accept delivery of an Aircraft under the applicable Aircraft Purchase Agreement on the Delivery Date thereof by utilization of bridge financing of such Aircraft (including cash provided by the Company) and thereafter give the parties hereto and the Depositary a Closing Notice specifying a Funding Date not later than 90 days after the Delivery Date of such Aircraft and no later than the Cut-off Date and otherwise complying with the provisions of Section 1(b) hereof.  All other terms and conditions of this Note Purchase Agreement shall apply to the financing of any such Aircraft on the re-scheduled Funding Date therefor except the related Financing Agreements shall be amended to reflect the original delivery of such Aircraft to the Company.

 

(g)           If the scheduled delivery date from the Manufacturer for any Eligible Aircraft is delayed more than 30 days beyond the last day of the month set forth opposite such Eligible Aircraft under the heading "Scheduled Delivery Month" in Schedule I hereto, the Company may identify for delivery a substitute aircraft therefor meeting the following conditions (a "Substitute Aircraft"):  (i) a Substitute Aircraft must be of the same model as the Eligible Aircraft being replaced and (ii) the Company shall be obligated to obtain Rating Agency Confirmation in respect of the replacement of any Eligible Aircraft by Substitute Aircraft.  Upon the satisfaction of the conditions set forth above with respect to a Substitute Aircraft, the Eligible Aircraft to be replaced shall cease to be subject to this Agreement and all rights and obligations of the parties hereto concerning such Eligible Aircraft shall cease, and such Substitute Aircraft shall become and thereafter be subject to the terms and conditions of this Agreement to the same extent as such Eligible Aircraft.

 

(h)           The Company shall have no liability for the failure of the Pass Through Trustees to purchase Equipment Notes with respect to any Aircraft or Substitute Aircraft.

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(i)           Anything herein to the contrary notwithstanding, the Company shall not have the right, and shall not be entitled, at any time to request the issuance of Equipment Notes of any series to the Class A or Class B Pass Through Trustee in an aggregate principal amount in excess of the amount of the Deposits then available for withdrawal by the Escrow Agent under and in accordance with the provisions of the related Deposit Agreement.

 

SECTION 2.  Conditions Precedent.  The obligation of the Applicable Pass Through Trustees to enter into, and to cause the Subordination Agent to enter into, any Participation Agreement as directed pursuant to a Closing Notice and to perform its obligations thereunder is subject to satisfaction of the following conditions:

 

(a)           no Triggering Event shall have occurred; and

 

(b)           the Company shall have delivered a certificate to each such Pass Through Trustee and the Liquidity Provider stating (i) that such Participation Agreement and the other Financing Agreements to be entered into pursuant to such Participation Agreement do not vary the Required Terms and (ii) that any substantive modification of such Financing Agreements from the forms of Financing Agreements attached to this Agreement do not materially and adversely affect the Certificateholders or the Liquidity Provider, and such certification shall be true and correct.

 

Anything herein to the contrary notwithstanding, the obligation of each Pass Through Trustee to purchase Equipment Notes shall terminate on the Cut-off Date.

 

SECTION 3.  Representations and Warranties.  (a)  The Company represents and warrants that:

 

(i)  the Company is duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is a "citizen of the United States" as defined in Section 40102(a)(15) of the Act, and has the full corporate power, authority and legal right under the laws of the State of Delaware to execute and deliver this Agreement and each Financing Agreement to which it will be a party and to carry out the obligations of the Company under this Agreement and each Financing Agreement to which it will be a party;

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(ii)  the execution and delivery by the Company of this Agreement and the performance by the Company of its obligations under this Agreement have been duly authorized by the Company and will not violate its Certificate of Incorporation or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  this Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

(b)           WTNA represents and warrants that:

 

(i)  WTNA is a national banking association duly incorporated, validly existing and in good standing under the laws of the United States and is a "citizen of the United States" as defined in Section 40102(a)(15) of the Act, and has the full corporate power, authority and legal right under the laws of the United States and of the state of the United States in which it is located pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each Financing Agreement to which it will be a party and to carry out the obligations of WTNA, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, under this Agreement and each Financing Agreement to which it will be a party;

 

(ii)  the execution and delivery by WTNA, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, of this Agreement and the performance by WTNA, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, of its obligations under this Agreement have been duly authorized by WTNA, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, and will not violate its articles of association or by-laws or the provisions of any indenture, mortgage, contract or

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other agreement to which it is a party or by which it is bound; and

 

(iii)  this Agreement constitutes the legal, valid and binding obligations of WTNA, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

(c)           The Pass Through Trustee hereby confirms to each of the other parties hereto that its representations and warranties set forth in Section 7.15 of the Basic Pass Through Trust Agreement and Section 5.04 of each Trust Supplement are true and correct as of the date hereof.

 

(d)           The Subordination Agent represents and warrants that:

 

(i)  the Subordination Agent is a national banking association duly incorporated, validly existing and in good standing under the laws of the United States, and has the full corporate power, authority and legal right under the laws of the United States and of the state of the United States in which it is located pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each Financing Agreement to which it is or will be a party and to perform its obligations under this Agreement and each Financing Agreement to which it is or will be a party;

 

(ii)  this Agreement has been duly authorized, executed and delivered by the Subordination Agent; this Agreement constitutes the legal, valid and binding obligations of the Subordination Agent enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity;

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(iii)  none of the execution, delivery and performance by the Subordination Agent of this Agreement contravenes any law, rule or regulation of the state of the United States in which it is located or any United States governmental authority or agency regulating the Subordination Agent's banking, trust or fiduciary powers or any judgment or order applicable to or binding on the Subordination Agent and do not contravene the Subordination Agent's articles of association or by-laws or result in any breach of, or constitute a default under, any agreement or instrument to which the Subordination Agent is a party or by which it or any of its properties may be bound;

 

(iv)  neither the execution and delivery by the Subordination Agent of this Agreement nor the consummation by the Subordination Agent of any of the transactions contemplated hereby requires the consent or approval of, the giving of notice to, the registration with, or the taking of any other action with respect to, any governmental authority or agency of the state of the United States in which it is located or any federal governmental authority or agency regulating the Subordination Agent's banking, trust or fiduciary powers;

 

(v)  there are no Taxes payable by the Subordination Agent imposed by any state of the United States in which it is located or any political subdivision or taxing authority thereof in connection with the execution, delivery and performance by the Subordination Agent of this Agreement (other than franchise or other taxes based on or measured by any fees or compensation received by the Subordination Agent for services rendered in connection with the transactions contemplated by the Intercreditor Agreement or any of the Liquidity Facilities), and there are no Taxes payable by the Subordination Agent imposed by any state of the United States in which it is located or any political subdivision thereof in connection with the acquisition, possession or ownership by the Subordination Agent of any of the Equipment Notes (other than franchise or other taxes based on or measured by any fees or compensation received by the Subordination Agent for services rendered in connection with the transactions

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contemplated by the Intercreditor Agreement or any of the Liquidity Facilities); and

 

(vi)  there are no pending or threatened actions or proceedings against the Subordination Agent before any court or administrative agency which individually or in the aggregate, if determined adversely to it, would materially adversely affect the ability of the Subordination Agent to perform its obligations under this Agreement.

 

(e)           The Escrow Agent represents and warrants that:

 

(i)  the Escrow Agent is a national banking association duly incorporated, validly existing and in good standing under the laws of the United States and has the full corporate power, authority and legal right under the laws of the United States and the state of the United States in which it is located pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement, each Deposit Agreement and each Escrow and Paying Agent Agreement (collectively, the "Escrow Agent Agreements") and to carry out the obligations of the Escrow Agent under each of the Escrow Agent Agreements;

 

(ii)  the execution and delivery by the Escrow Agent of each of the Escrow Agent Agreements and the performance by the Escrow Agent of its obligations hereunder and thereunder have been duly authorized by the Escrow Agent and will not violate its articles of association or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  each of the Escrow Agent Agreements constitutes the legal, valid and binding obligations of the Escrow Agent enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

(f)           The Paying Agent represents and warrants that:

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(i)  the Paying Agent is a national banking association duly incorporated, validly existing and in good standing under the laws of the United States of America and has the full corporate power, authority and legal right under the laws of the United States and the state of the United States in which it is located pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each Escrow and Paying Agent Agreement (collectively, the "Paying Agent Agreements") and to carry out the obligations of the Paying Agent under each of the Paying Agent Agreements;

 

(ii)  the execution and delivery by the Paying Agent of each of the Paying Agent Agreements and the performance by the Paying Agent of its obligations hereunder and thereunder have been duly authorized by the Paying Agent and will not violate its articles of association or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  each of the Paying Agent Agreements constitutes the legal, valid and binding obligations of the Paying Agent enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

SECTION 4.  Covenants.  (a)  The Company covenants with each of the other parties hereto that:

 

(i)  [Intentionally Omitted];

 

(ii)  subject to Section 4(a)(iv) of this Agreement, the Company shall at all times maintain its corporate existence and shall not wind up, liquidate or dissolve or take any action, or fail to take any action, that would have the effect of any of the foregoing;

 

(iii)  the Company shall at all times remain a U.S. Air Carrier (as defined in the Financing Agreements) and shall at all times be otherwise certificated and registered to the extent necessary to entitle the Loan Trustee to the rights

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afforded to secured parties of aircraft equipment under Section 1110;

 

(iv)  Section 4.07 of each Indenture is hereby incorporated by reference herein;

 

(v)  the Company agrees to provide written notice to each of the parties hereto of the occurrence of the Cut-off Date no later than one Business Day after the date thereof, such notice to refer specifically to the Pass Through Trustee's obligation to assign, transfer and deliver all of its right, title and interest to the Trust Property (as defined in each Pass Through Trust Agreement) to the trustee of the Related Trust (as defined in each Pass Through Trust Agreement) in accordance with Section 7.01 of each of the Trust Supplements;

 

(vi)  the Company shall not redeem and re-issue any Series B Equipment Notes or issue (or redeem and reissue) any Additional Series Equipment Notes pursuant to any Indenture, unless it shall have obtained written confirmation from each Rating Agency that the reissuance or issuance of such Equipment Notes, as the case may be, will not result in (1) a reduction of the rating for any Class of Certificates then rated by any Rating Agency that will remain outstanding below the then current rating for such Class of Certificates or (2) a withdrawal or suspension of the rating of any Class of Certificates then rated by any Rating Agency that will remain outstanding.  Any reissuance of the Series B Equipment Notes and issuance (or redemption and reissuance) of Additional Series Equipment Notes shall be subject to the terms of Section 9.1(c) and 9.1(d), respectively, of the Intercreditor Agreement; and

 

(vii)  If (x) the Depositary’s short-term unsecured debt rating by Moody’s Investors Service, Inc. shall at any time fall below P-1 or its long-term issuer credit rating by either Standard & Poor’s Ratings Services or Fitch Ratings Ltd. shall at any time fall below A- (such minimum ratings, the "Depositary Threshold Ratings") or any such rating has been withdrawn or suspended or (y) the Company or the Depositary, in its sole discretion, gives written notice to the other of its election that the Depositary be replaced, the Company shall, within 30 days after such event occurring, cause the Depositary to be replaced with a depositary bank (a "Replacement Depositary") on the following terms and preconditions:

 

(A)           the Replacement Depositary must meet the Depositary Threshold Ratings and the Company shall have obtained written confirmation from each Rating Agency that such

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replacement will not cause a reduction of any rating then in effect for any Class of Certificates by such Rating Agency (without regard to any downgrading of any rating of the Depositary being replaced);

 

(B)           the Company shall pay all fees, expenses and other amounts then owing to the replaced Depositary and, except as expressly provided in clause (C) below, the Company shall pay any up-front fee of the Replacement Depositary and (without limitation of the foregoing) all out-of-pocket expenses (including reasonable fees and expenses of legal counsel) of the parties hereto (including without limitation all amounts payable to the Rating Agencies) incurred in connection with such replacement;

 

(C)           solely in the case of the Depositary making an election in its discretion that it be replaced (and without limitation of clause (A) above), (x) the notice given by the Depositary to the Company shall nominate a Replacement Depositary, which shall satisfy all of terms and preconditions of this Section 4(a)(vii) (and the Company shall have the right to utilize such nominee as the Replacement Depositary or to select another Replacement Depositary), (y) the fees, expenses, indemnities and other amounts payable to the Replacement Depositary upon its execution of the Replacement Deposit Agreement or thereafter shall not to any extent exceed those which would have been payable to the Depositary had such replacement not occurred (it being specifically understood and agreed that any up-front fee of the Replacement Depositary shall be paid by the replaced Depositary, provided that, if the Company selects a Replacement Depositary other than the nominee of the replaced Depositary and the upfront fee of such selection exceeds that of such nominee, the Company shall pay such excess), and (without limitation of the foregoing) the Depositary shall pay all out-of-pocket expenses (including reasonable fees and expenses of legal counsel) of the parties hereto (including without limitation all amounts payable to the Rating Agencies) incurred in connection with such replacement, and (z) the Replacement Depositary shall be willing to enter into a Replacement Deposit Agreement for each of the Class A and Class B Certificates with the Escrow Agent having the same terms and conditions (including without limitation as to the interest to be paid on the Deposits) as the Deposit Agreements to which the Depositary is a party; and

 

(D)           the Company or, in the case of the Depositary making an election that it be replaced (unless the Company shall have selected such Replacement Depositary), the Depositary,

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shall cause the Replacement Depositary to enter into a Replacement Deposit Agreement for each of the Class A and Class B Certificates with the Escrow Agent (and, upon request of the Company the Escrow Agent agrees to enter into any such Replacement Deposit Agreement) and shall cause the Replacement Depositary to deliver to the Company and each Rating Agency legal opinions and other closing documentation substantially similar in scope and substance as those that were delivered by the Depositary being replaced in connection with the execution and delivery of the Deposit Agreement being replaced.

 

Upon satisfaction of the foregoing conditions, the Company shall instruct the Class A Pass Through Trustee and the Class B Pass Through Trustee, and each such Pass Through Trustee agrees, to execute and deliver to the Escrow Agent a duly completed Withdrawal Certificate (as defined in the Escrow and Paying Agent Agreements) together with a Notice of Replacement Withdrawal (as defined in the Escrow and Paying Agent Agreements).

 

Each of the parties hereto agrees, at the Company’s request, to enter into any amendments to this Agreement, the Escrow and Paying Agent Agreements and any other Operative Agreements as may be necessary or desirable to give effect to the replacement of the Depositary with the Replacement Depositary and the replacement of the Deposit Agreements with the Replacement Deposit Agreements.

 

Upon the execution and delivery of the Replacement Deposit Agreements, the Replacement Depositary shall be deemed to be the Depositary with all of the rights and obligations of the Depositary hereunder and under the other Operative Agreements and the Replacement Deposit Agreements shall be deemed to be the Deposit Agreements hereunder and under the other Operative Agreements, except that the obligations of the replaced Depositary under its Deposit Agreements resulting from the delivery of any Withdrawal Notice delivered thereunder shall remain in full force and effect notwithstanding the execution and delivery of the Replacement Deposit Agreements.

 

(viii)             Promptly after the occurrence of a Triggering Event or an Indenture Default resulting from the failure of the Company to make payments on any Equipment Note and on every Regular Distribution Date while the Triggering Event or such Indenture Default shall be continuing, the Company will, at the Subordination Agent’s request from time to time but in any event no more frequently than once every three months, provide to the Subordination Agent a statement setting forth the

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following information with respect to each Aircraft then subject to the lien of an Indenture:  (A) whether the Aircraft are currently in service or parked in storage, (B) the maintenance status of the Aircraft and (C) the location of the Engines (as defined in the respective Indentures to which such Aircraft are subject).  As used in this sentence, the terms "Triggering Event", "Indenture Default", "Regular Distribution Date" shall have the respective meanings set forth in the Intercreditor Agreement as originally executed.

 

(b)           WTNA, in its individual capacity, covenants with each of the other parties to this Agreement that it will, immediately upon obtaining knowledge of any facts that would cast doubt upon its continuing status as a "citizen of the United States" as defined in Section 40102(a)(15) of the Act and promptly upon public disclosure of negotiations in respect of any transaction which would or might adversely affect such status, notify in writing all parties hereto of all relevant matters in connection therewith.  Upon WTNA giving any such notice, WTNA shall, subject to Section 9.01 of any Indenture then entered into, resign as Loan Trustee in respect of such Indenture.

 

SECTION 5.  Notices.  Unless otherwise specifically provided herein, all notices required or permitted by the terms of this Agreement shall be in English and in writing, and any such notice shall become effective upon being delivered personally or, if promptly confirmed by mail, when dispatched by facsimile or other written telecommunication, addressed to such party hereto at its address or facsimile number set forth below the signature of such party at the foot of this Agreement or to such other address or facsimile number as such party may hereafter specify by notice to the other parties.

 

SECTION 6.  Expenses.  (a)  The Company agrees to pay to the Subordination Agent when due an amount or amounts equal to the fees payable to the Liquidity Provider under Section 2.03 of each Liquidity Facility and the related Fee Letter (as defined in the Intercreditor Agreement) multiplied by a fraction the numerator of which shall be the then outstanding aggregate amount of the Deposits under the Deposit Agreements pertaining to the Class A and Class B Pass Through Trusts and the denominator of which shall be the sum of (x) the then outstanding aggregate principal amount of the Series A Equipment Notes and Series B Equipment Notes under all of the Indentures and (y) the then outstanding aggregate amount of the Deposits under the Deposit Agreements pertaining to the Class A and Class B Pass Through Trusts.

Note Purchase Agreement 12-2

  

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(b)           So long as no Equipment Notes have been issued in respect of any Aircraft, the Company agrees to pay (i) to the Subordination Agent when due (A) the amount equal to interest on any Downgrade Advance (other than any Applied Downgrade Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings while such Downgrade Advance shall be outstanding, (B) the amount equal to interest on any Non-Extension Advance (other than any Applied Non-Extension Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings while such Non-Extension Advance shall be outstanding, (C) the amount equal to interest on any Special Termination Advance (other than any Applied Special Termination Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings from such Special Termination Advance while such Special Termination Advance shall be outstanding, and (D) any other amounts owed to the Liquidity Provider by the Subordination Agent as borrower under each Liquidity Facility (other than amounts due as repayment of advances thereunder or as interest on such advances, except to the extent payable pursuant to clause (A), (B) or (C)), (ii) all compensation and reimbursement of expenses, disbursements and advances payable by the Company under the Pass Through Trust Agreements, (iii) all compensation and reimbursement of expenses and disbursements payable to the Subordination Agent under the Intercreditor Agreement except with respect to any income or franchise taxes incurred by the Subordination Agent in connection with the transactions contemplated by the Intercreditor Agreement and (iv) in the event the Company requests any amendment to any Operative Agreement, all reasonable fees and expenses (including, without limitation, fees and disbursements of counsel) of the Escrow Agent and/or the Paying Agent in connection therewith.  For purposes of this Section 6(b), the terms "Applied Downgrade Advance", "Applied Non-Extension Advance", "Applied Special Termination Advance", "Downgrade Advance", "Investment Earnings", "Non-Extension Advance" and "Special Termination Advance" shall have the meanings specified in each Liquidity Facility.

 

SECTION 7.  Further Assurances.  Each party hereto shall duly execute, acknowledge and deliver, or shall cause to be executed, acknowledged and delivered, all such further agreements, instruments, certificates or documents, and shall do and cause to be done such further acts and things, in any case, as any other party hereto shall reasonably request in connection with its administration of, or to carry out more effectually the purposes of, or to better assure and confirm unto it the rights and benefits to be provided under, this Agreement.

Note Purchase Agreement 12-2

  

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SECTION 8.  Miscellaneous.  (a)  Provided that the transactions contemplated hereby have been consummated, in whole or in part, and except as otherwise provided for herein, the representations, warranties and agreements herein of the Company, the Subordination Agent, the Escrow Agent, the Paying Agent and the Pass Through Trustee, and the Company's, the Subordination Agent's, the Escrow Agent's, the Paying Agent's and the Pass Through Trustee's obligations under any and all thereof, shall survive the expiration or other termination of this Agreement and the other agreements referred to herein.

 

(b)           This Agreement may be executed in any number of counterparts (and each of the parties hereto shall not be required to execute the same counterpart).  Each counterpart of this Agreement, including a signature page executed by each of the parties hereto, shall be an original counterpart of this Agreement, but all of such counterparts together shall constitute one instrument.  Neither this Agreement nor any of the terms hereof may be terminated, amended, supplemented, waived or modified orally, but only by an instrument in writing signed by the party against which the enforcement of the termination, amendment, supplement, waiver or modification is sought.  The index preceding this Agreement and the headings of the various Sections of this Agreement are for convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions hereof.  The terms of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and permitted assigns, the Pass Through Trustee and its successors as Pass Through Trustee (and any additional trustee appointed) under any of the Pass Through Trust Agreements, the Escrow Agent and its successors as Escrow Agent under the Escrow and Paying Agent Agreements, the Paying Agent and its successors as Paying Agent under the Escrow and Paying Agent Agreement and the Subordination Agent and its successors as Subordination Agent under the Intercreditor Agreement.

 

(c)           This Agreement is not intended to, and shall not, provide any person not a party hereto (other than the Underwriters, each of the beneficiaries of Section 6 hereof and the Depositary as a beneficiary of Section 4(a)(vii)) with any rights of any nature whatsoever against any of the parties hereto, and no person not a party hereto (other than the Underwriters, each of the beneficiaries of Section 6 hereof and the Depositary as a beneficiary of Section 4(a)(vii)) shall have any right, power or privilege in respect of, or have any benefit or interest arising out of, this Agreement.  To the extent that

Note Purchase Agreement 12-2

  

18

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this Agreement expressly confers upon, gives or grants any right, power, privilege, benefit, interest, remedy or claim to any of the beneficiaries of Section 6 hereof (including, but not limited to rights, powers, privileges, benefits, interests, remedies and claims under Section 6) or to the Depositary with respect to Section 4(a)(vii), each such party is hereby recognized as a third party beneficiary hereunder and may enforce any such right, power, privilege, benefit, interest, remedy or claim.

 

SECTION 9.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.

Note Purchase Agreement 12-2

  

19

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.

	  	
CONTINENTAL AIRLINES, INC.

	  
	  	
 

	  
	  	  	  
	  	
By:

	/s/ Gerald Laderman	  
	  	
Name:

	Gerald Laderman	  
	  	
Title:

	Senior Vice President

Finance and Treasurer	  
	  	  	  	  
	  	
Address:

	
77 W. Wacker Drive

Chicago, IL 60601

Attention:  Treasurer

Facsimile:  (312) 997-8333

	  

	  	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

not in its individual capacity, except as otherwise provided herein, but solely as Pass Through Trustee

	  
	  	
 

	  
	  	  	  
	  	
By:

	/s/ Chad May	  
	  	
Name:

	Chad May	  
	  	
Title:

	Assistant Vice President	  
	  	  	  	  
	  	
Address:

	
1100 North Market Street

Wilmington, Delaware 19890-1605

Attention: Corporate Trust

Administration

Facsimile:  (302) 636-4140

	  

Note Purchase Agreement 12-2

  

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WILMINGTON TRUST, NATIONAL ASSOCIATION,

not in its individual capacity, except as otherwise provided herein, but solely as Subordination Agent

	  
	  	
 

	  
	  	  	  
	  	
By:

	/s/ Chad May	  
	  	
Name:

	Chad May	  
	  	
Title:

	Assistant Vice President	  
	  	  	  	  
	  	
Address:

	
1100 North Market Street

Wilmington, Delaware 19890-1605

Attention: Corporate Trust

Administration

Facsimile:  (302) 636-4140

	  

	  	
U.S. BANK NATIONAL ASSOCIATION,

as Escrow Agent

	  
	  	
 

	  
	  	  	  
	  	
By:

	/s/ David W. Doucette	  
	  	
Name:

	David W. Doucette	  
	  	
Title:

	Vice President	  
	  	  	  	  
	  	
Address:

	
Boston, MA Office

One Federal Street, 3rd Floor

EX-MA-FED

Boston, MA 02110

Attention: David W. Doucette

Facsimile:  (617) 603-6672

	  

Note Purchase Agreement 12-2

  

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WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Paying Agent

	  
	  	
 

	  
	  	  	  
	  	
By:

	/s/ Chad May	  
	  	
Name:

	Chad May	  
	  	
Title:

	Assistant Vice President	  
	  	  	  	  
	  	
Address:

	
1100 North Market Street

Wilmington, Delaware 19890-1605

Attention: Corporate Trust

Administration

Facsimile:  (302) 636-4140

	  

Note Purchase Agreement 12-2

  

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SCHEDULE I to

Note Purchase Agreement

ELIGIBLE AIRCRAFT AND SCHEDULED DELIVERY MONTHS

	

Aircraft Type

	

Expected

Registration

Number

	

Expected Manufacturer’s

Serial Number

	

Scheduled Delivery

Month

	
Boeing 737-924ER

	
N39461

	
37207

	
November 2012

	
Boeing 737-924ER

	
N37462

	
37201

	
November 2012

	
Boeing 737-924ER

	
N39463

	
37208

	
December 2012

	
Boeing 737-924ER

	
N37464

	
41745

	
December 2012

	
Boeing 737-924ER

	
N37465

	
36599

	
January 2013

	
Boeing 737-924ER

	
N37466

	
31644

	
January 2013

	
Boeing 737-924ER

	
N38467

	
33537

	
February 2013

	
Boeing 737-924ER

	
N37468

	
32836

	
February 2013

	
Boeing 737-924ER

	
N36469

	
36600

	
March 2013

	
Boeing 737-924ER

	
N37470

	
37099

	
March 2013

	
Boeing 737-924ER

	
N37471

	
37102

	
April 2013

	
Boeing 737-924ER

	
N36472

	
31653

	
April 2013

	
Boeing 737-924ER

	
N38473

	
38702

	
May 2013

	
Boeing 737-924ER

	
N37474

	
31648

	
May 2013

	
Boeing 737-924ER

	
N39475

	
38703

	
June 2013

	
Boeing 737-924ER

	
N36476

	
37100

	
June 2013

	
Boeing 737-924ER

	
N27477

	
31647

	
July 2013

	
Boeing 737-924ER

	
N38479

	
31649

	
July 2013

	
Boeing 787-8

	
N27901

	
34821

	
December 2012

	
Boeing 787-8

	
N27903

	
34823

	
December 2012

	
Boeing 787-8

	
N29907

	
34830

	
July 2013

	
Boeing 787-8

	
N27908

	
36400

	
September 2013

Note Purchase Agreement 12-2

  

  

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SCHEDULE II to

Note Purchase Agreement

 

TRUST SUPPLEMENTS

 

Trust Supplement dated as of the Issuance Date between the Company and the Pass Through Trustee in respect of Continental Airlines Pass Through Trust, Series 2012-2A-O.

Trust Supplement dated as of the Issuance Date between the Company and the Pass Through Trustee in respect of Continental Airlines Pass Through Trust, Series 2012-2B-O.

Note Purchase Agreement 12-2

  

  

BACK

 

SCHEDULE III to

Note Purchase Agreement

 

REQUIRED TERMS

 

 

Equipment Notes

 

Obligor:     Continental

 

Maximum Principal Amount:

 

The initial principal amount and amortization schedule of the Series A and B Equipment Notes issued with respect to an Aircraft shall be as set forth in the following table for that Aircraft or, in the case of the last  scheduled delivery of the Boeing 787-8 Eligible Aircraft, as set forth in the applicable table below for an Eligible Aircraft of the same model that has not been and will not be financed under the Note Purchase Agreement:

 

Boeing 737-924ER

 

	  	

N39461

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$28,112,000.00

	
$5,225,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,112,000.00

	
5,225,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,112,000.00

	
5,225,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,070,583.74

	
4,925,140.76

	
1,041,416.26

	
299,859.24

	
October 29, 2014                                        

	
26,373,363.54

	
4,690,825.37

	
697,220.20

	
234,315.39

	
April 29, 2015                                        

	
25,676,257.59

	
4,456,575.91

	
697,105.95

	
234,249.46

	
October 29, 2015                                        

	
24,979,271.56

	
4,222,395.60

	
696,986.03

	
234,180.31

	
April 29, 2016                                        

	
24,282,411.26

	
3,988,287.86

	
696,860.30

	
234,107.74

	
October 29, 2016                                        

	
23,585,683.36

	
3,754,256.37

	
696,727.90

	
234,031.49

	
April 29, 2017                                        

	
22,889,094.10

	
3,520,305.03

	
696,589.26

	
233,951.34

	
October 29, 2017                                        

	
22,192,651.31

	
3,286,438.01

	
696,442.79

	
233,867.02

	
April 29, 2018                                        

	
21,496,362.24

	
3,052,659.80

	
696,289.07

	
233,778.21

	
October 29, 2018                                        

	
20,821,659.27

	
2,818,975.21

	
674,702.97

	
233,684.59

	
April 29, 2019                                        

	
20,125,311.99

	
2,585,389.36

	
696,347.28

	
233,585.85

	
October 29, 2019                                        

	
19,449,785.24

	
2,351,907.82

	
675,526.75

	
233,481.54

	
April 29, 2020                                        

	
18,753,417.82

	
2,118,536.54

	
696,367.42

	
233,371.28

	
October 29, 2020                                        

	
18,077,108.89

	
0.00

	
676,308.93

	
2,118,536.54

	
April 29, 2021                                        

	
17,380,766.13

	
0.00

	
696,342.76

	
0.00

	
October 29, 2021                                        

	
16,703,723.05

	
0.00

	
677,043.08

	
0.00

	
April 29, 2022                                        

	
16,007,456.85

	
0.00

	
696,266.20

	
0.00

	
October 29, 2022                                        

	
15,329,735.98

	
0.00

	
677,720.87

	
0.00

	
April 29, 2023                                        

	
14,633,607.78

	
0.00

	
696,128.20

	
0.00

	
October 29, 2023                                        

	
13,955,275.42

	
0.00

	
678,332.36

	
0.00

	
April 29, 2024                                        

	
13,259,357.21

	
0.00

	
695,918.21

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,259,357.21

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

 

2

	  	

N37462

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,112,000.00

	
$5,225,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,112,000.00

	
5,225,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,112,000.00

	
5,225,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,070,583.74

	
4,925,140.76

	
1,041,416.26

	
299,859.24

	
October 29, 2014                                        

	
26,373,363.54

	
4,690,825.37

	
697,220.20

	
234,315.39

	
April 29, 2015                                        

	
25,676,257.59

	
4,456,575.91

	
697,105.95

	
234,249.46

	
October 29, 2015                                        

	
24,979,271.56

	
4,222,395.60

	
696,986.03

	
234,180.31

	
April 29, 2016                                        

	
24,282,411.26

	
3,988,287.86

	
696,860.30

	
234,107.74

	
October 29, 2016                                        

	
23,585,683.36

	
3,754,256.37

	
696,727.90

	
234,031.49

	
April 29, 2017                                        

	
22,889,094.10

	
3,520,305.03

	
696,589.26

	
233,951.34

	
October 29, 2017                                        

	
22,192,651.31

	
3,286,438.01

	
696,442.79

	
233,867.02

	
April 29, 2018                                        

	
21,496,362.24

	
3,052,659.80

	
696,289.07

	
233,778.21

	
October 29, 2018                                        

	
20,821,659.27

	
2,818,975.21

	
674,702.97

	
233,684.59

	
April 29, 2019                                        

	
20,125,311.99

	
2,585,389.36

	
696,347.28

	
233,585.85

	
October 29, 2019                                        

	
19,449,785.24

	
2,351,907.82

	
675,526.75

	
233,481.54

	
April 29, 2020                                        

	
18,753,417.82

	
2,118,536.54

	
696,367.42

	
233,371.28

	
October 29, 2020                                        

	
18,077,108.89

	
0.00

	
676,308.93

	
2,118,536.54

	
April 29, 2021                                        

	
17,380,766.13

	
0.00

	
696,342.76

	
0.00

	
October 29, 2021                                        

	
16,703,723.05

	
0.00

	
677,043.08

	
0.00

	
April 29, 2022                                        

	
16,007,456.85

	
0.00

	
696,266.20

	
0.00

	
October 29, 2022                                        

	
15,329,735.98

	
0.00

	
677,720.87

	
0.00

	
April 29, 2023                                        

	
14,633,607.78

	
0.00

	
696,128.20

	
0.00

	
October 29, 2023                                        

	
13,955,275.42

	
0.00

	
678,332.36

	
0.00

	
April 29, 2024                                        

	
13,259,357.21

	
0.00

	
695,918.21

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,259,357.21

	
0.00

	  	

N39463

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,143,000.00

	
$5,231,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,143,000.00

	
5,231,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,143,000.00

	
5,231,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,100,948.38

	
4,930,665.22

	
1,042,051.62

	
300,334.78

	
October 29, 2014                                        

	
26,402,946.12

	
4,696,086.99

	
698,002.26

	
234,578.23

	
April 29, 2015                                        

	
25,705,058.24

	
4,461,574.78

	
697,887.88

	
234,512.21

	
October 29, 2015                                        

	
25,007,290.41

	
4,227,131.79

	
697,767.83

	
234,442.99

	
April 29, 2016                                        

	
24,309,648.45

	
3,992,761.46

	
697,641.96

	
234,370.33

	
October 29, 2016                                        

	
23,612,139.04

	
3,758,467.46

	
697,509.41

	
234,294.00

	
April 29, 2017                                        

	
22,914,768.43

	
3,524,253.70

	
697,370.61

	
234,213.76

	
October 29, 2017                                        

	
22,217,544.46

	
3,290,124.36

	
697,223.97

	
234,129.34

	
April 29, 2018                                        

	
21,520,474.37

	
3,056,083.92

	
697,070.09

	
234,040.44

	
October 29, 2018                                        

	
20,845,014.60

	
2,822,137.21

	
675,459.77

	
233,946.71

	
April 29, 2019                                        

	
20,147,886.24

	
2,588,289.35

	
697,128.36

	
233,847.86

	
October 29, 2019                                        

	
19,471,601.75

	
2,354,545.92

	
676,284.49

	
233,743.43

	
April 29, 2020                                        

	
18,774,453.23

	
2,120,912.86

	
697,148.52

	
233,633.06

	
October 29, 2020                                        

	
18,097,385.69

	
0.00

	
677,067.54

	
2,120,912.86

	
April 29, 2021                                        

	
17,400,261.86

	
0.00

	
697,123.83

	
0.00

	
October 29, 2021                                        

	
16,722,459.35

	
0.00

	
677,802.51

	
0.00

	
April 29, 2022                                        

	
16,025,412.16

	
0.00

	
697,047.19

	
0.00

	
October 29, 2022                                        

	
15,346,931.11

	
0.00

	
678,481.05

	
0.00

	
April 29, 2023                                        

	
14,650,022.06

	
0.00

	
696,909.05

	
0.00

	
October 29, 2023                                        

	
13,970,928.83

	
0.00

	
679,093.23

	
0.00

	
April 29, 2024                                        

	
13,274,230.02

	
0.00

	
696,698.81

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,274,230.02

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

3

	  	

N37464

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,143,000.00

	
$5,231,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,143,000.00

	
5,231,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,143,000.00

	
5,231,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,100,948.38

	
4,930,665.22

	
1,042,051.62

	
300,334.78

	
October 29, 2014                                        

	
26,402,946.12

	
4,696,086.99

	
698,002.26

	
234,578.23

	
April 29, 2015                                        

	
25,705,058.24

	
4,461,574.78

	
697,887.88

	
234,512.21

	
October 29, 2015                                        

	
25,007,290.41

	
4,227,131.79

	
697,767.83

	
234,442.99

	
April 29, 2016                                        

	
24,309,648.45

	
3,992,761.46

	
697,641.96

	
234,370.33

	
October 29, 2016                                        

	
23,612,139.04

	
3,758,467.46

	
697,509.41

	
234,294.00

	
April 29, 2017                                        

	
22,914,768.43

	
3,524,253.70

	
697,370.61

	
234,213.76

	
October 29, 2017                                        

	
22,217,544.46

	
3,290,124.36

	
697,223.97

	
234,129.34

	
April 29, 2018                                        

	
21,520,474.37

	
3,056,083.92

	
697,070.09

	
234,040.44

	
October 29, 2018                                        

	
20,845,014.60

	
2,822,137.21

	
675,459.77

	
233,946.71

	
April 29, 2019                                        

	
20,147,886.24

	
2,588,289.35

	
697,128.36

	
233,847.86

	
October 29, 2019                                        

	
19,471,601.75

	
2,354,545.92

	
676,284.49

	
233,743.43

	
April 29, 2020                                        

	
18,774,453.23

	
2,120,912.86

	
697,148.52

	
233,633.06

	
October 29, 2020                                        

	
18,097,385.69

	
0.00

	
677,067.54

	
2,120,912.86

	
April 29, 2021                                        

	
17,400,261.86

	
0.00

	
697,123.83

	
0.00

	
October 29, 2021                                        

	
16,722,459.35

	
0.00

	
677,802.51

	
0.00

	
April 29, 2022                                        

	
16,025,412.16

	
0.00

	
697,047.19

	
0.00

	
October 29, 2022                                        

	
15,346,931.11

	
0.00

	
678,481.05

	
0.00

	
April 29, 2023                                        

	
14,650,022.06

	
0.00

	
696,909.05

	
0.00

	
October 29, 2023                                        

	
13,970,928.83

	
0.00

	
679,093.23

	
0.00

	
April 29, 2024                                        

	
13,274,230.02

	
0.00

	
696,698.81

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,274,230.02

	
0.00

	  	

N37465

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,220,000.00

	
$5,245,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,220,000.00

	
5,245,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,220,000.00

	
5,245,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,174,485.50

	
4,944,044.34

	
1,045,514.50

	
300,955.66

	
October 29, 2014                                        

	
26,474,589.25

	
4,708,829.60

	
699,896.25

	
235,214.74

	
April 29, 2015                                        

	
25,774,807.69

	
4,473,681.05

	
699,781.56

	
235,148.55

	
October 29, 2015                                        

	
25,075,146.50

	
4,238,601.91

	
699,661.19

	
235,079.14

	
April 29, 2016                                        

	
24,375,611.52

	
4,003,595.63

	
699,534.98

	
235,006.28

	
October 29, 2016                                        

	
23,676,209.45

	
3,768,665.88

	
699,402.07

	
234,929.75

	
April 29, 2017                                        

	
22,976,946.56

	
3,533,816.59

	
699,262.89

	
234,849.29

	
October 29, 2017                                        

	
22,277,830.70

	
3,299,051.95

	
699,115.86

	
234,764.64

	
April 29, 2018                                        

	
21,578,869.15

	
3,064,376.46

	
698,961.55

	
234,675.49

	
October 29, 2018                                        

	
20,901,576.55

	
2,829,794.94

	
677,292.60

	
234,581.52

	
April 29, 2019                                        

	
20,202,556.56

	
2,595,312.55

	
699,019.99

	
234,482.39

	
October 29, 2019                                        

	
19,524,437.01

	
2,360,934.87

	
678,119.55

	
234,377.68

	
April 29, 2020                                        

	
18,825,396.81

	
2,126,667.86

	
699,040.20

	
234,267.01

	
October 29, 2020                                        

	
18,146,492.08

	
0.00

	
678,904.73

	
2,126,667.86

	
April 29, 2021                                        

	
17,447,476.63

	
0.00

	
699,015.45

	
0.00

	
October 29, 2021                                        

	
16,767,834.94

	
0.00

	
679,641.69

	
0.00

	
April 29, 2022                                        

	
16,068,896.34

	
0.00

	
698,938.60

	
0.00

	
October 29, 2022                                        

	
15,388,574.27

	
0.00

	
680,322.07

	
0.00

	
April 29, 2023                                        

	
14,689,774.20

	
0.00

	
698,800.07

	
0.00

	
October 29, 2023                                        

	
14,008,838.28

	
0.00

	
680,935.92

	
0.00

	
April 29, 2024                                        

	
13,310,249.00

	
0.00

	
698,589.28

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,310,249.00

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

4

	  	

N37466

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,220,000.00

	
$5,245,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,220,000.00

	
5,245,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,220,000.00

	
5,245,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,174,485.50

	
4,944,044.34

	
1,045,514.50

	
300,955.66

	
October 29, 2014                                        

	
26,474,589.25

	
4,708,829.60

	
699,896.25

	
235,214.74

	
April 29, 2015                                        

	
25,774,807.69

	
4,473,681.05

	
699,781.56

	
235,148.55

	
October 29, 2015                                        

	
25,075,146.50

	
4,238,601.91

	
699,661.19

	
235,079.14

	
April 29, 2016                                        

	
24,375,611.52

	
4,003,595.63

	
699,534.98

	
235,006.28

	
October 29, 2016                                        

	
23,676,209.45

	
3,768,665.88

	
699,402.07

	
234,929.75

	
April 29, 2017                                        

	
22,976,946.56

	
3,533,816.59

	
699,262.89

	
234,849.29

	
October 29, 2017                                        

	
22,277,830.70

	
3,299,051.95

	
699,115.86

	
234,764.64

	
April 29, 2018                                        

	
21,578,869.15

	
3,064,376.46

	
698,961.55

	
234,675.49

	
October 29, 2018                                        

	
20,901,576.55

	
2,829,794.94

	
677,292.60

	
234,581.52

	
April 29, 2019                                        

	
20,202,556.56

	
2,595,312.55

	
699,019.99

	
234,482.39

	
October 29, 2019                                        

	
19,524,437.01

	
2,360,934.87

	
678,119.55

	
234,377.68

	
April 29, 2020                                        

	
18,825,396.81

	
2,126,667.86

	
699,040.20

	
234,267.01

	
October 29, 2020                                        

	
18,146,492.08

	
0.00

	
678,904.73

	
2,126,667.86

	
April 29, 2021                                        

	
17,447,476.63

	
0.00

	
699,015.45

	
0.00

	
October 29, 2021                                        

	
16,767,834.94

	
0.00

	
679,641.69

	
0.00

	
April 29, 2022                                        

	
16,068,896.34

	
0.00

	
698,938.60

	
0.00

	
October 29, 2022                                        

	
15,388,574.27

	
0.00

	
680,322.07

	
0.00

	
April 29, 2023                                        

	
14,689,774.20

	
0.00

	
698,800.07

	
0.00

	
October 29, 2023                                        

	
14,008,838.28

	
0.00

	
680,935.92

	
0.00

	
April 29, 2024                                        

	
13,310,249.00

	
0.00

	
698,589.28

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,310,249.00

	
0.00

	  	

N38467

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,250,000.00

	
$5,251,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,250,000.00

	
5,251,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,250,000.00

	
5,251,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,630,689.77

	
5,027,044.77

	
619,310.23

	
223,955.23

	
October 29, 2014                                        

	
26,925,686.36

	
4,789,062.74

	
705,003.41

	
237,982.03

	
April 29, 2015                                        

	
26,220,658.14

	
4,551,066.40

	
705,028.22

	
237,996.34

	
October 29, 2015                                        

	
25,515,603.99

	
4,313,055.07

	
705,054.15

	
238,011.33

	
April 29, 2016                                        

	
24,810,522.51

	
4,075,028.00

	
705,081.48

	
238,027.07

	
October 29, 2016                                        

	
24,105,412.64

	
3,836,984.40

	
705,109.87

	
238,043.60

	
April 29, 2017                                        

	
23,400,272.38

	
3,598,923.41

	
705,140.26

	
238,060.99

	
October 29, 2017                                        

	
22,695,100.73

	
3,360,844.12

	
705,171.65

	
238,079.29

	
April 29, 2018                                        

	
21,989,895.50

	
3,122,745.58

	
705,205.23

	
238,098.54

	
October 29, 2018                                        

	
21,306,577.88

	
2,884,626.72

	
683,317.62

	
238,118.86

	
April 29, 2019                                        

	
20,600,906.79

	
2,646,486.44

	
705,671.09

	
238,140.28

	
October 29, 2019                                        

	
19,916,331.33

	
2,408,323.53

	
684,575.46

	
238,162.91

	
April 29, 2020                                        

	
19,210,185.64

	
2,170,136.69

	
706,145.69

	
238,186.84

	
October 29, 2020                                        

	
18,524,343.58

	
0.00

	
685,842.06

	
2,170,136.69

	
April 29, 2021                                        

	
17,817,713.80

	
0.00

	
706,629.78

	
0.00

	
October 29, 2021                                        

	
17,130,594.57

	
0.00

	
687,119.23

	
0.00

	
April 29, 2022                                        

	
16,423,469.24

	
0.00

	
707,125.33

	
0.00

	
October 29, 2022                                        

	
15,735,060.62

	
0.00

	
688,408.62

	
0.00

	
April 29, 2023                                        

	
15,027,426.84

	
0.00

	
707,633.78

	
0.00

	
October 29, 2023                                        

	
14,337,714.37

	
0.00

	
689,712.47

	
0.00

	
April 29, 2024                                        

	
13,629,556.26

	
0.00

	
708,158.11

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,629,556.26

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

5

	  	

N37468

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,250,000.00

	
$5,251,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,250,000.00

	
5,251,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,250,000.00

	
5,251,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,630,689.77

	
5,027,044.77

	
619,310.23

	
223,955.23

	
October 29, 2014                                        

	
26,925,686.36

	
4,789,062.74

	
705,003.41

	
237,982.03

	
April 29, 2015                                        

	
26,220,658.14

	
4,551,066.40

	
705,028.22

	
237,996.34

	
October 29, 2015                                        

	
25,515,603.99

	
4,313,055.07

	
705,054.15

	
238,011.33

	
April 29, 2016                                        

	
24,810,522.51

	
4,075,028.00

	
705,081.48

	
238,027.07

	
October 29, 2016                                        

	
24,105,412.64

	
3,836,984.40

	
705,109.87

	
238,043.60

	
April 29, 2017                                        

	
23,400,272.38

	
3,598,923.41

	
705,140.26

	
238,060.99

	
October 29, 2017                                        

	
22,695,100.73

	
3,360,844.12

	
705,171.65

	
238,079.29

	
April 29, 2018                                        

	
21,989,895.50

	
3,122,745.58

	
705,205.23

	
238,098.54

	
October 29, 2018                                        

	
21,306,577.88

	
2,884,626.72

	
683,317.62

	
238,118.86

	
April 29, 2019                                        

	
20,600,906.79

	
2,646,486.44

	
705,671.09

	
238,140.28

	
October 29, 2019                                        

	
19,916,331.33

	
2,408,323.53

	
684,575.46

	
238,162.91

	
April 29, 2020                                        

	
19,210,185.64

	
2,170,136.69

	
706,145.69

	
238,186.84

	
October 29, 2020                                        

	
18,524,343.58

	
0.00

	
685,842.06

	
2,170,136.69

	
April 29, 2021                                        

	
17,817,713.80

	
0.00

	
706,629.78

	
0.00

	
October 29, 2021                                        

	
17,130,594.57

	
0.00

	
687,119.23

	
0.00

	
April 29, 2022                                        

	
16,423,469.24

	
0.00

	
707,125.33

	
0.00

	
October 29, 2022                                        

	
15,735,060.62

	
0.00

	
688,408.62

	
0.00

	
April 29, 2023                                        

	
15,027,426.84

	
0.00

	
707,633.78

	
0.00

	
October 29, 2023                                        

	
14,337,714.37

	
0.00

	
689,712.47

	
0.00

	
April 29, 2024                                        

	
13,629,556.26

	
0.00

	
708,158.11

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,629,556.26

	
0.00

	  	

N36469

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,282,000.00

	
$5,256,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,282,000.00

	
5,256,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,282,000.00

	
5,256,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,661,823.69

	
5,032,709.18

	
620,176.31

	
223,290.82

	
October 29, 2014                                        

	
26,956,025.88

	
4,794,458.99

	
705,797.81

	
238,250.19

	
April 29, 2015                                        

	
26,250,203.24

	
4,556,194.49

	
705,822.64

	
238,264.50

	
October 29, 2015                                        

	
25,544,354.65

	
4,317,914.97

	
705,848.59

	
238,279.52

	
April 29, 2016                                        

	
24,838,478.69

	
4,079,619.69

	
705,875.96

	
238,295.28

	
October 29, 2016                                        

	
24,132,574.32

	
3,841,307.86

	
705,904.37

	
238,311.83

	
April 29, 2017                                        

	
23,426,639.51

	
3,602,978.63

	
705,934.81

	
238,329.23

	
October 29, 2017                                        

	
22,720,673.28

	
3,364,631.08

	
705,966.23

	
238,347.55

	
April 29, 2018                                        

	
22,014,673.44

	
3,126,264.25

	
705,999.84

	
238,366.83

	
October 29, 2018                                        

	
21,330,585.86

	
2,887,877.09

	
684,087.58

	
238,387.16

	
April 29, 2019                                        

	
20,624,119.63

	
2,649,468.47

	
706,466.23

	
238,408.62

	
October 29, 2019                                        

	
19,938,772.80

	
2,411,037.20

	
685,346.83

	
238,431.27

	
April 29, 2020                                        

	
19,231,831.44

	
2,172,581.98

	
706,941.36

	
238,455.22

	
October 29, 2020                                        

	
18,545,216.58

	
0.00

	
686,614.86

	
2,172,581.98

	
April 29, 2021                                        

	
17,837,790.57

	
0.00

	
707,426.01

	
0.00

	
October 29, 2021                                        

	
17,149,897.10

	
0.00

	
687,893.47

	
0.00

	
April 29, 2022                                        

	
16,441,975.00

	
0.00

	
707,922.10

	
0.00

	
October 29, 2022                                        

	
15,752,790.69

	
0.00

	
689,184.31

	
0.00

	
April 29, 2023                                        

	
15,044,359.56

	
0.00

	
708,431.13

	
0.00

	
October 29, 2023                                        

	
14,353,869.92

	
0.00

	
690,489.64

	
0.00

	
April 29, 2024                                        

	
13,644,913.87

	
0.00

	
708,956.05

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,644,913.87

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

6

	  	

N37470

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,282,000.00

	
$5,256,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,282,000.00

	
5,256,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,282,000.00

	
5,256,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,661,823.69

	
5,032,709.18

	
620,176.31

	
223,290.82

	
October 29, 2014                                        

	
26,956,025.88

	
4,794,458.99

	
705,797.81

	
238,250.19

	
April 29, 2015                                        

	
26,250,203.24

	
4,556,194.49

	
705,822.64

	
238,264.50

	
October 29, 2015                                        

	
25,544,354.65

	
4,317,914.97

	
705,848.59

	
238,279.52

	
April 29, 2016                                        

	
24,838,478.69

	
4,079,619.69

	
705,875.96

	
238,295.28

	
October 29, 2016                                        

	
24,132,574.32

	
3,841,307.86

	
705,904.37

	
238,311.83

	
April 29, 2017                                        

	
23,426,639.51

	
3,602,978.63

	
705,934.81

	
238,329.23

	
October 29, 2017                                        

	
22,720,673.28

	
3,364,631.08

	
705,966.23

	
238,347.55

	
April 29, 2018                                        

	
22,014,673.44

	
3,126,264.25

	
705,999.84

	
238,366.83

	
October 29, 2018                                        

	
21,330,585.86

	
2,887,877.09

	
684,087.58

	
238,387.16

	
April 29, 2019                                        

	
20,624,119.63

	
2,649,468.47

	
706,466.23

	
238,408.62

	
October 29, 2019                                        

	
19,938,772.80

	
2,411,037.20

	
685,346.83

	
238,431.27

	
April 29, 2020                                        

	
19,231,831.44

	
2,172,581.98

	
706,941.36

	
238,455.22

	
October 29, 2020                                        

	
18,545,216.58

	
0.00

	
686,614.86

	
2,172,581.98

	
April 29, 2021                                        

	
17,837,790.57

	
0.00

	
707,426.01

	
0.00

	
October 29, 2021                                        

	
17,149,897.10

	
0.00

	
687,893.47

	
0.00

	
April 29, 2022                                        

	
16,441,975.00

	
0.00

	
707,922.10

	
0.00

	
October 29, 2022                                        

	
15,752,790.69

	
0.00

	
689,184.31

	
0.00

	
April 29, 2023                                        

	
15,044,359.56

	
0.00

	
708,431.13

	
0.00

	
October 29, 2023                                        

	
14,353,869.92

	
0.00

	
690,489.64

	
0.00

	
April 29, 2024                                        

	
13,644,913.87

	
0.00

	
708,956.05

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,644,913.87

	
0.00

	  	

N37471

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,358,000.00

	
$5,271,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,358,000.00

	
5,271,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,358,000.00

	
5,271,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,736,808.18

	
5,046,351.64

	
621,191.82

	
224,648.36

	
October 29, 2014                                        

	
27,029,097.13

	
4,807,455.61

	
707,711.05

	
238,896.03

	
April 29, 2015                                        

	
26,321,361.18

	
4,568,545.23

	
707,735.95

	
238,910.38

	
October 29, 2015                                        

	
25,613,599.20

	
4,329,619.79

	
707,761.98

	
238,925.44

	
April 29, 2016                                        

	
24,905,809.78

	
4,090,678.55

	
707,789.42

	
238,941.24

	
October 29, 2016                                        

	
24,197,991.87

	
3,851,720.72

	
707,817.91

	
238,957.83

	
April 29, 2017                                        

	
23,490,143.45

	
3,612,745.43

	
707,848.42

	
238,975.29

	
October 29, 2017                                        

	
22,782,263.52

	
3,373,751.78

	
707,879.93

	
238,993.65

	
April 29, 2018                                        

	
22,074,349.88

	
3,134,738.79

	
707,913.64

	
239,012.99

	
October 29, 2018                                        

	
21,388,407.91

	
2,895,705.42

	
685,941.97

	
239,033.37

	
April 29, 2019                                        

	
20,680,026.61

	
2,656,650.53

	
708,381.30

	
239,054.89

	
October 29, 2019                                        

	
19,992,821.98

	
2,417,572.94

	
687,204.63

	
239,077.59

	
April 29, 2020                                        

	
19,283,964.27

	
2,178,471.32

	
708,857.71

	
239,101.62

	
October 29, 2020                                        

	
18,595,488.16

	
0.00

	
688,476.11

	
2,178,471.32

	
April 29, 2021                                        

	
17,886,144.50

	
0.00

	
709,343.66

	
0.00

	
October 29, 2021                                        

	
17,196,386.32

	
0.00

	
689,758.18

	
0.00

	
April 29, 2022                                        

	
16,486,545.20

	
0.00

	
709,841.12

	
0.00

	
October 29, 2022                                        

	
15,795,492.68

	
0.00

	
691,052.52

	
0.00

	
April 29, 2023                                        

	
15,085,141.17

	
0.00

	
710,351.51

	
0.00

	
October 29, 2023                                        

	
14,392,779.78

	
0.00

	
692,361.39

	
0.00

	
April 29, 2024                                        

	
13,681,901.93

	
0.00

	
710,877.85

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,681,901.93

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

7

	  	

N36472

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,358,000.00

	
$5,271,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,358,000.00

	
5,271,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,358,000.00

	
5,271,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,736,808.18

	
5,046,351.64

	
621,191.82

	
224,648.36

	
October 29, 2014                                        

	
27,029,097.13

	
4,807,455.61

	
707,711.05

	
238,896.03

	
April 29, 2015                                        

	
26,321,361.18

	
4,568,545.23

	
707,735.95

	
238,910.38

	
October 29, 2015                                        

	
25,613,599.20

	
4,329,619.79

	
707,761.98

	
238,925.44

	
April 29, 2016                                        

	
24,905,809.78

	
4,090,678.55

	
707,789.42

	
238,941.24

	
October 29, 2016                                        

	
24,197,991.87

	
3,851,720.72

	
707,817.91

	
238,957.83

	
April 29, 2017                                        

	
23,490,143.45

	
3,612,745.43

	
707,848.42

	
238,975.29

	
October 29, 2017                                        

	
22,782,263.52

	
3,373,751.78

	
707,879.93

	
238,993.65

	
April 29, 2018                                        

	
22,074,349.88

	
3,134,738.79

	
707,913.64

	
239,012.99

	
October 29, 2018                                        

	
21,388,407.91

	
2,895,705.42

	
685,941.97

	
239,033.37

	
April 29, 2019                                        

	
20,680,026.61

	
2,656,650.53

	
708,381.30

	
239,054.89

	
October 29, 2019                                        

	
19,992,821.98

	
2,417,572.94

	
687,204.63

	
239,077.59

	
April 29, 2020                                        

	
19,283,964.27

	
2,178,471.32

	
708,857.71

	
239,101.62

	
October 29, 2020                                        

	
18,595,488.16

	
0.00

	
688,476.11

	
2,178,471.32

	
April 29, 2021                                        

	
17,886,144.50

	
0.00

	
709,343.66

	
0.00

	
October 29, 2021                                        

	
17,196,386.32

	
0.00

	
689,758.18

	
0.00

	
April 29, 2022                                        

	
16,486,545.20

	
0.00

	
709,841.12

	
0.00

	
October 29, 2022                                        

	
15,795,492.68

	
0.00

	
691,052.52

	
0.00

	
April 29, 2023                                        

	
15,085,141.17

	
0.00

	
710,351.51

	
0.00

	
October 29, 2023                                        

	
14,392,779.78

	
0.00

	
692,361.39

	
0.00

	
April 29, 2024                                        

	
13,681,901.93

	
0.00

	
710,877.85

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,681,901.93

	
0.00

	  	

N38473

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,390,000.00

	
$5,277,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,390,000.00

	
5,277,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,390,000.00

	
5,277,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,767,942.09

	
5,052,016.05

	
622,057.91

	
224,983.95

	
October 29, 2014                                        

	
27,059,436.65

	
4,812,851.86

	
708,505.44

	
239,164.19

	
April 29, 2015                                        

	
26,350,906.28

	
4,573,673.31

	
708,530.37

	
239,178.55

	
October 29, 2015                                        

	
25,642,349.86

	
4,334,479.69

	
708,556.42

	
239,193.62

	
April 29, 2016                                        

	
24,933,765.97

	
4,095,270.24

	
708,583.89

	
239,209.45

	
October 29, 2016                                        

	
24,225,153.55

	
3,856,044.18

	
708,612.42

	
239,226.06

	
April 29, 2017                                        

	
23,516,510.58

	
3,616,800.65

	
708,642.97

	
239,243.53

	
October 29, 2017                                        

	
22,807,836.07

	
3,377,538.73

	
708,674.51

	
239,261.92

	
April 29, 2018                                        

	
22,099,127.81

	
3,138,257.46

	
708,708.26

	
239,281.27

	
October 29, 2018                                        

	
21,412,415.89

	
2,898,955.78

	
686,711.92

	
239,301.68

	
April 29, 2019                                        

	
20,703,239.46

	
2,659,632.56

	
709,176.43

	
239,323.22

	
October 29, 2019                                        

	
20,015,263.45

	
2,420,286.61

	
687,976.01

	
239,345.95

	
April 29, 2020                                        

	
19,305,610.06

	
2,180,916.60

	
709,653.39

	
239,370.01

	
October 29, 2020                                        

	
18,616,361.16

	
0.00

	
689,248.90

	
2,180,916.60

	
April 29, 2021                                        

	
17,906,221.27

	
0.00

	
710,139.89

	
0.00

	
October 29, 2021                                        

	
17,215,688.85

	
0.00

	
690,532.42

	
0.00

	
April 29, 2022                                        

	
16,505,050.96

	
0.00

	
710,637.89

	
0.00

	
October 29, 2022                                        

	
15,813,222.75

	
0.00

	
691,828.21

	
0.00

	
April 29, 2023                                        

	
15,102,073.88

	
0.00

	
711,148.87

	
0.00

	
October 29, 2023                                        

	
14,408,935.34

	
0.00

	
693,138.54

	
0.00

	
April 29, 2024                                        

	
13,697,259.54

	
0.00

	
711,675.80

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,697,259.54

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

8

	  	

N37474

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,390,000.00

	
$5,277,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,390,000.00

	
5,277,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,390,000.00

	
5,277,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,767,942.09

	
5,052,016.05

	
622,057.91

	
224,983.95

	
October 29, 2014                                        

	
27,059,436.65

	
4,812,851.86

	
708,505.44

	
239,164.19

	
April 29, 2015                                        

	
26,350,906.28

	
4,573,673.31

	
708,530.37

	
239,178.55

	
October 29, 2015                                        

	
25,642,349.86

	
4,334,479.69

	
708,556.42

	
239,193.62

	
April 29, 2016                                        

	
24,933,765.97

	
4,095,270.24

	
708,583.89

	
239,209.45

	
October 29, 2016                                        

	
24,225,153.55

	
3,856,044.18

	
708,612.42

	
239,226.06

	
April 29, 2017                                        

	
23,516,510.58

	
3,616,800.65

	
708,642.97

	
239,243.53

	
October 29, 2017                                        

	
22,807,836.07

	
3,377,538.73

	
708,674.51

	
239,261.92

	
April 29, 2018                                        

	
22,099,127.81

	
3,138,257.46

	
708,708.26

	
239,281.27

	
October 29, 2018                                        

	
21,412,415.89

	
2,898,955.78

	
686,711.92

	
239,301.68

	
April 29, 2019                                        

	
20,703,239.46

	
2,659,632.56

	
709,176.43

	
239,323.22

	
October 29, 2019                                        

	
20,015,263.45

	
2,420,286.61

	
687,976.01

	
239,345.95

	
April 29, 2020                                        

	
19,305,610.06

	
2,180,916.60

	
709,653.39

	
239,370.01

	
October 29, 2020                                        

	
18,616,361.16

	
0.00

	
689,248.90

	
2,180,916.60

	
April 29, 2021                                        

	
17,906,221.27

	
0.00

	
710,139.89

	
0.00

	
October 29, 2021                                        

	
17,215,688.85

	
0.00

	
690,532.42

	
0.00

	
April 29, 2022                                        

	
16,505,050.96

	
0.00

	
710,637.89

	
0.00

	
October 29, 2022                                        

	
15,813,222.75

	
0.00

	
691,828.21

	
0.00

	
April 29, 2023                                        

	
15,102,073.88

	
0.00

	
711,148.87

	
0.00

	
October 29, 2023                                        

	
14,408,935.34

	
0.00

	
693,138.54

	
0.00

	
April 29, 2024                                        

	
13,697,259.54

	
0.00

	
711,675.80

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,697,259.54

	
0.00

	  	

N39475

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,422,000.00

	
$5,283,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,422,000.00

	
5,283,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,422,000.00

	
5,283,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,799,076.00

	
5,057,680.46

	
622,924.00

	
225,319.54

	
October 29, 2014                                        

	
27,089,776.17

	
4,818,248.12

	
709,299.83

	
239,432.34

	
April 29, 2015                                        

	
26,380,451.39

	
4,578,801.39

	
709,324.78

	
239,446.73

	
October 29, 2015                                        

	
25,671,100.52

	
4,339,339.58

	
709,350.87

	
239,461.81

	
April 29, 2016                                        

	
24,961,722.15

	
4,099,861.93

	
709,378.37

	
239,477.65

	
October 29, 2016                                        

	
24,252,315.22

	
3,860,367.65

	
709,406.93

	
239,494.28

	
April 29, 2017                                        

	
23,542,877.71

	
3,620,855.87

	
709,437.51

	
239,511.78

	
October 29, 2017                                        

	
22,833,408.62

	
3,381,325.69

	
709,469.09

	
239,530.18

	
April 29, 2018                                        

	
22,123,905.75

	
3,141,776.13

	
709,502.87

	
239,549.56

	
October 29, 2018                                        

	
21,436,423.87

	
2,902,206.14

	
687,481.88

	
239,569.99

	
April 29, 2019                                        

	
20,726,452.30

	
2,662,614.59

	
709,971.57

	
239,591.55

	
October 29, 2019                                        

	
20,037,704.92

	
2,423,000.27

	
688,747.38

	
239,614.32

	
April 29, 2020                                        

	
19,327,255.86

	
2,183,361.88

	
710,449.06

	
239,638.39

	
October 29, 2020                                        

	
18,637,234.16

	
0.00

	
690,021.70

	
2,183,361.88

	
April 29, 2021                                        

	
17,926,298.05

	
0.00

	
710,936.11

	
0.00

	
October 29, 2021                                        

	
17,234,991.39

	
0.00

	
691,306.66

	
0.00

	
April 29, 2022                                        

	
16,523,556.72

	
0.00

	
711,434.67

	
0.00

	
October 29, 2022                                        

	
15,830,952.82

	
0.00

	
692,603.90

	
0.00

	
April 29, 2023                                        

	
15,119,006.60

	
0.00

	
711,946.22

	
0.00

	
October 29, 2023                                        

	
14,425,090.90

	
0.00

	
693,915.70

	
0.00

	
April 29, 2024                                        

	
13,712,617.15

	
0.00

	
712,473.75

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,712,617.15

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

9

	  	

N36476

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,422,000.00

	
$5,283,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,422,000.00

	
5,283,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,422,000.00

	
5,283,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,799,076.00

	
5,057,680.46

	
622,924.00

	
225,319.54

	
October 29, 2014                                        

	
27,089,776.17

	
4,818,248.12

	
709,299.83

	
239,432.34

	
April 29, 2015                                        

	
26,380,451.39

	
4,578,801.39

	
709,324.78

	
239,446.73

	
October 29, 2015                                        

	
25,671,100.52

	
4,339,339.58

	
709,350.87

	
239,461.81

	
April 29, 2016                                        

	
24,961,722.15

	
4,099,861.93

	
709,378.37

	
239,477.65

	
October 29, 2016                                        

	
24,252,315.22

	
3,860,367.65

	
709,406.93

	
239,494.28

	
April 29, 2017                                        

	
23,542,877.71

	
3,620,855.87

	
709,437.51

	
239,511.78

	
October 29, 2017                                        

	
22,833,408.62

	
3,381,325.69

	
709,469.09

	
239,530.18

	
April 29, 2018                                        

	
22,123,905.75

	
3,141,776.13

	
709,502.87

	
239,549.56

	
October 29, 2018                                        

	
21,436,423.87

	
2,902,206.14

	
687,481.88

	
239,569.99

	
April 29, 2019                                        

	
20,726,452.30

	
2,662,614.59

	
709,971.57

	
239,591.55

	
October 29, 2019                                        

	
20,037,704.92

	
2,423,000.27

	
688,747.38

	
239,614.32

	
April 29, 2020                                        

	
19,327,255.86

	
2,183,361.88

	
710,449.06

	
239,638.39

	
October 29, 2020                                        

	
18,637,234.16

	
0.00

	
690,021.70

	
2,183,361.88

	
April 29, 2021                                        

	
17,926,298.05

	
0.00

	
710,936.11

	
0.00

	
October 29, 2021                                        

	
17,234,991.39

	
0.00

	
691,306.66

	
0.00

	
April 29, 2022                                        

	
16,523,556.72

	
0.00

	
711,434.67

	
0.00

	
October 29, 2022                                        

	
15,830,952.82

	
0.00

	
692,603.90

	
0.00

	
April 29, 2023                                        

	
15,119,006.60

	
0.00

	
711,946.22

	
0.00

	
October 29, 2023                                        

	
14,425,090.90

	
0.00

	
693,915.70

	
0.00

	
April 29, 2024                                        

	
13,712,617.15

	
0.00

	
712,473.75

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,712,617.15

	
0.00

	  	

N27477

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,499,000.00

	
$5,297,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,499,000.00

	
5,297,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,499,000.00

	
5,297,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,874,060.50

	
5,071,322.91

	
624,939.50

	
225,677.09

	
October 29, 2014                                        

	
27,162,847.42

	
4,831,244.73

	
711,213.08

	
240,078.18

	
April 29, 2015                                        

	
26,451,609.32

	
4,591,152.13

	
711,238.10

	
240,092.60

	
October 29, 2015                                        

	
25,740,345.07

	
4,351,044.40

	
711,264.25

	
240,107.73

	
April 29, 2016                                        

	
25,029,053.24

	
4,110,920.79

	
711,291.83

	
240,123.61

	
October 29, 2016                                        

	
24,317,732.78

	
3,870,780.50

	
711,320.46

	
240,140.29

	
April 29, 2017                                        

	
23,606,381.65

	
3,630,622.67

	
711,351.13

	
240,157.83

	
October 29, 2017                                        

	
22,894,998.86

	
3,390,446.39

	
711,382.79

	
240,176.28

	
April 29, 2018                                        

	
22,183,582.19

	
3,150,250.67

	
711,416.67

	
240,195.72

	
October 29, 2018                                        

	
21,494,245.92

	
2,910,034.48

	
689,336.27

	
240,216.19

	
April 29, 2019                                        

	
20,782,359.28

	
2,669,796.66

	
711,886.64

	
240,237.82

	
October 29, 2019                                        

	
20,091,754.10

	
2,429,536.01

	
690,605.18

	
240,260.65

	
April 29, 2020                                        

	
19,379,388.69

	
2,189,251.23

	
712,365.41

	
240,284.78

	
October 29, 2020                                        

	
18,687,505.74

	
0.00

	
691,882.95

	
2,189,251.23

	
April 29, 2021                                        

	
17,974,651.97

	
0.00

	
712,853.77

	
0.00

	
October 29, 2021                                        

	
17,281,480.60

	
0.00

	
693,171.37

	
0.00

	
April 29, 2022                                        

	
16,568,126.92

	
0.00

	
713,353.68

	
0.00

	
October 29, 2022                                        

	
15,873,654.81

	
0.00

	
694,472.11

	
0.00

	
April 29, 2023                                        

	
15,159,788.21

	
0.00

	
713,866.60

	
0.00

	
October 29, 2023                                        

	
14,464,000.75

	
0.00

	
695,787.46

	
0.00

	
April 29, 2024                                        

	
13,749,605.20

	
0.00

	
714,395.55

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,749,605.20

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

10

	  	

N38479

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$28,499,000.00

	
$5,297,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
28,499,000.00

	
5,297,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
28,499,000.00

	
5,297,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
27,874,060.50

	
5,071,322.91

	
624,939.50

	
225,677.09

	
October 29, 2014                                        

	
27,162,847.42

	
4,831,244.73

	
711,213.08

	
240,078.18

	
April 29, 2015                                        

	
26,451,609.32

	
4,591,152.13

	
711,238.10

	
240,092.60

	
October 29, 2015                                        

	
25,740,345.07

	
4,351,044.40

	
711,264.25

	
240,107.73

	
April 29, 2016                                        

	
25,029,053.24

	
4,110,920.79

	
711,291.83

	
240,123.61

	
October 29, 2016                                        

	
24,317,732.78

	
3,870,780.50

	
711,320.46

	
240,140.29

	
April 29, 2017                                        

	
23,606,381.65

	
3,630,622.67

	
711,351.13

	
240,157.83

	
October 29, 2017                                        

	
22,894,998.86

	
3,390,446.39

	
711,382.79

	
240,176.28

	
April 29, 2018                                        

	
22,183,582.19

	
3,150,250.67

	
711,416.67

	
240,195.72

	
October 29, 2018                                        

	
21,494,245.92

	
2,910,034.48

	
689,336.27

	
240,216.19

	
April 29, 2019                                        

	
20,782,359.28

	
2,669,796.66

	
711,886.64

	
240,237.82

	
October 29, 2019                                        

	
20,091,754.10

	
2,429,536.01

	
690,605.18

	
240,260.65

	
April 29, 2020                                        

	
19,379,388.69

	
2,189,251.23

	
712,365.41

	
240,284.78

	
October 29, 2020                                        

	
18,687,505.74

	
0.00

	
691,882.95

	
2,189,251.23

	
April 29, 2021                                        

	
17,974,651.97

	
0.00

	
712,853.77

	
0.00

	
October 29, 2021                                        

	
17,281,480.60

	
0.00

	
693,171.37

	
0.00

	
April 29, 2022                                        

	
16,568,126.92

	
0.00

	
713,353.68

	
0.00

	
October 29, 2022                                        

	
15,873,654.81

	
0.00

	
694,472.11

	
0.00

	
April 29, 2023                                        

	
15,159,788.21

	
0.00

	
713,866.60

	
0.00

	
October 29, 2023                                        

	
14,464,000.75

	
0.00

	
695,787.46

	
0.00

	
April 29, 2024                                        

	
13,749,605.20

	
0.00

	
714,395.55

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
13,749,605.20

	
0.00

 

Boeing 787-8

 

	  	

N27901

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$67,163,000.00

	
$12,483,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
67,163,000.00

	
12,483,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
67,163,000.00

	
12,483,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
64,675,828.11

	
11,766,926.07

	
2,487,171.89

	
716,073.93

	
October 29, 2014                                        

	
63,010,060.79

	
11,207,110.20

	
1,665,767.32

	
559,815.87

	
April 29, 2015                                        

	
61,344,566.44

	
10,647,451.86

	
1,665,494.35

	
559,658.34

	
October 29, 2015                                        

	
59,679,358.58

	
10,087,958.74

	
1,665,207.86

	
559,493.12

	
April 29, 2016                                        

	
58,014,451.10

	
9,528,639.01

	
1,664,907.48

	
559,319.73

	
October 29, 2016                                        

	
56,349,859.96

	
8,969,501.44

	
1,664,591.14

	
559,137.57

	
April 29, 2017                                        

	
54,685,600.06

	
8,410,555.35

	
1,664,259.90

	
558,946.09

	
October 29, 2017                                        

	
53,021,690.09

	
7,851,810.73

	
1,663,909.97

	
558,744.62

	
April 29, 2018                                        

	
51,358,147.39

	
7,293,278.29

	
1,663,542.70

	
558,532.44

	
October 29, 2018                                        

	
49,746,177.22

	
6,734,969.50

	
1,611,970.17

	
558,308.79

	
April 29, 2019                                        

	
48,082,495.44

	
6,176,896.65

	
1,663,681.78

	
558,072.85

	
October 29, 2019                                        

	
46,468,557.13

	
5,619,073.00

	
1,613,938.31

	
557,823.65

	
April 29, 2020                                        

	
44,804,827.23

	
5,061,512.75

	
1,663,729.90

	
557,560.25

	
October 29, 2020                                        

	
43,189,020.17

	
0.00

	
1,615,807.06

	
5,061,512.75

	
April 29, 2021                                        

	
41,525,349.19

	
0.00

	
1,663,670.98

	
0.00

	
October 29, 2021                                        

	
39,907,788.15

	
0.00

	
1,617,561.04

	
0.00

	
April 29, 2022                                        

	
38,244,300.07

	
0.00

	
1,663,488.08

	
0.00

	
October 29, 2022                                        

	
36,625,119.69

	
0.00

	
1,619,180.38

	
0.00

	
April 29, 2023                                        

	
34,961,961.31

	
0.00

	
1,663,158.38

	
0.00

	
October 29, 2023                                        

	
33,341,319.98

	
0.00

	
1,620,641.33

	
0.00

	
April 29, 2024                                        

	
31,678,663.30

	
0.00

	
1,662,656.68

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
31,678,663.30

	
0.00

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

11

	  	

N27903

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$67,163,000.00

	
$12,483,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
67,163,000.00

	
12,483,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
67,163,000.00

	
12,483,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
64,675,828.11

	
11,766,926.07

	
2,487,171.89

	
716,073.93

	
October 29, 2014                                        

	
63,010,060.79

	
11,207,110.20

	
1,665,767.32

	
559,815.87

	
April 29, 2015                                        

	
61,344,566.44

	
10,647,451.86

	
1,665,494.35

	
559,658.34

	
October 29, 2015                                        

	
59,679,358.58

	
10,087,958.74

	
1,665,207.86

	
559,493.12

	
April 29, 2016                                        

	
58,014,451.10

	
9,528,639.01

	
1,664,907.48

	
559,319.73

	
October 29, 2016                                        

	
56,349,859.96

	
8,969,501.44

	
1,664,591.14

	
559,137.57

	
April 29, 2017                                        

	
54,685,600.06

	
8,410,555.35

	
1,664,259.90

	
558,946.09

	
October 29, 2017                                        

	
53,021,690.09

	
7,851,810.73

	
1,663,909.97

	
558,744.62

	
April 29, 2018                                        

	
51,358,147.39

	
7,293,278.29

	
1,663,542.70

	
558,532.44

	
October 29, 2018                                        

	
49,746,177.22

	
6,734,969.50

	
1,611,970.17

	
558,308.79

	
April 29, 2019                                        

	
48,082,495.44

	
6,176,896.65

	
1,663,681.78

	
558,072.85

	
October 29, 2019                                        

	
46,468,557.13

	
5,619,073.00

	
1,613,938.31

	
557,823.65

	
April 29, 2020                                        

	
44,804,827.23

	
5,061,512.75

	
1,663,729.90

	
557,560.25

	
October 29, 2020                                        

	
43,189,020.17

	
0.00

	
1,615,807.06

	
5,061,512.75

	
April 29, 2021                                        

	
41,525,349.19

	
0.00

	
1,663,670.98

	
0.00

	
October 29, 2021                                        

	
39,907,788.15

	
0.00

	
1,617,561.04

	
0.00

	
April 29, 2022                                        

	
38,244,300.07

	
0.00

	
1,663,488.08

	
0.00

	
October 29, 2022                                        

	
36,625,119.69

	
0.00

	
1,619,180.38

	
0.00

	
April 29, 2023                                        

	
34,961,961.31

	
0.00

	
1,663,158.38

	
0.00

	
October 29, 2023                                        

	
33,341,319.98

	
0.00

	
1,620,641.33

	
0.00

	
April 29, 2024                                        

	
31,678,663.30

	
0.00

	
1,662,656.68

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
31,678,663.30

	
0.00

	  	

N29907

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance                                        

	
$67,944,000.00

	
$12,628,000.00

	
$           0.00

	
$           0.00

	
April 29, 2013                                        

	
67,944,000.00

	
12,628,000.00

	
0.00

	
0.00

	
October 29, 2013                                        

	
67,944,000.00

	
12,628,000.00

	
0.00

	
0.00

	
April 29, 2014                                        

	
66,454,678.92

	
12,090,564.85

	
1,489,321.08

	
537,435.15

	
October 29, 2014                                        

	
64,759,072.48

	
11,518,193.33

	
1,695,606.44

	
572,371.52

	
April 29, 2015                                        

	
63,063,406.38

	
10,945,787.42

	
1,695,666.10

	
572,405.91

	
October 29, 2015                                        

	
61,367,677.92

	
10,373,345.45

	
1,695,728.46

	
572,441.97

	
April 29, 2016                                        

	
59,671,883.72

	
9,800,865.61

	
1,695,794.20

	
572,479.84

	
October 29, 2016                                        

	
57,976,021.25

	
9,228,346.02

	
1,695,862.47

	
572,519.59

	
April 29, 2017                                        

	
56,280,085.68

	
8,655,784.62

	
1,695,935.57

	
572,561.40

	
October 29, 2017                                        

	
54,584,074.62

	
8,083,179.20

	
1,696,011.06

	
572,605.42

	
April 29, 2018                                        

	
52,887,982.78

	
7,510,527.47

	
1,696,091.84

	
572,651.73

	
October 29, 2018                                        

	
51,244,532.93

	
6,937,826.90

	
1,643,449.85

	
572,700.57

	
April 29, 2019                                        

	
49,547,320.66

	
6,365,074.78

	
1,697,212.27

	
572,752.12

	
October 29, 2019                                        

	
47,900,845.58

	
5,792,268.25

	
1,646,475.08

	
572,806.53

	
April 29, 2020                                        

	
46,202,491.84

	
5,219,404.16

	
1,698,353.74

	
572,864.09

	
October 29, 2020                                        

	
44,552,970.45

	
0.00

	
1,649,521.39

	
5,219,404.16

	
April 29, 2021                                        

	
42,853,452.43

	
0.00

	
1,699,518.02

	
0.00

	
October 29, 2021                                        

	
41,200,859.30

	
0.00

	
1,652,593.13

	
0.00

	
April 29, 2022                                        

	
39,500,149.43

	
0.00

	
1,700,709.87

	
0.00

	
October 29, 2022                                        

	
37,844,455.21

	
0.00

	
1,655,694.22

	
0.00

	
April 29, 2023                                        

	
36,142,522.47

	
0.00

	
1,701,932.74

	
0.00

	
October 29, 2023                                        

	
34,483,692.33

	
0.00

	
1,658,830.14

	
0.00

	
April 29, 2024                                        

	
32,780,498.52

	
0.00

	
1,703,193.81

	
0.00

	
October 29, 2024                                        

	
0.00

	
0.00

	
32,780,498.52

	
0.00

 

Indenture

 

Debt Rate (as such term is defined in Annex A of the form of Indenture marked as Exhibit C of the Note Purchase Agreement (the "Indenture Form"))

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

12

 

for Series A (computed on the basis of a 360-day year consisting of twelve 30-day months, payable semi-annually in arrears):  4.00%

 

Debt Rate (as such term is defined in Annex A of the Indenture Form) for Series B (computed on the basis of a 360-day year consisting of twelve 30 day months, payable semi-annually in arrears):  5.50%

 

	
Payment Due Rate:

	
Debt Rate plus 2% per annum

 

	
Payment Dates:

	
April 29 and October 29 (after October 29, 2012)

 

	
Make-Whole Premiums:

	
As provided in Article II of the Indenture Form

 

	
Redemption:

	
As provided in Article II of the Indenture Form

 

	
All-risk hull insurance:

	
Not less than the unpaid principal amount of the Equipment Notes relating to an Aircraft, together with six months of interest accrued thereon, subject to Continental’s right to self-insure on terms no more favorable to Continental in any material respect than those set forth in Section G of Annex B to the Indenture Form.

 

Participation Agreement

 

Mortgagee, Subordination Agent, Liquidity Providers, Pass Through Trustees, Escrow Agents and Note Holders indemnified against Expenses and Taxes to the extent set forth in Section 8 of the form of the Participation Agreement marked as Exhibit B to the Note Purchase Agreement.

 

Prohibited Modifications

 

	
1.

	
May not modify in any material adverse respect the Granting Clause of the Indenture so as to deprive the Note Holders or the Related Note Holders (as defined in the Indenture) of a first priority security interest in and mortgage lien on the Aircraft or, to the extent assigned thereunder, Continental’s rights under the Purchase Agreement (as defined in the Indenture) or to eliminate any of the obligations intended to be secured thereby or otherwise modify in any material adverse respect as regards the interests of the Note Holders, the Related Note Holder of a Related Series A Equipment Note, the Related Note Holder of a Related Series B Equipment Note, the Subordination Agent, the Liquidity Providers or the Mortgagee the provisions of Article II or III or Section 4.05(c), 5.01, 5.02, 6.02, 10.01(a), 10.01(b)(vii), 11.01, 11.04, 11.11, 11.12 or 11.13 of the Indenture or the definition of “Make-Whole Amount” in Annex A to the Indenture.

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

13

 

	
2.  

	
May not modify in any material adverse respect as regards the interests of the Note Holders, the Subordination Agent, the Liquidity Providers or the Mortgagee the provisions of Section 4.1.3, 4.1.8, 4.1.9, 4.1.10, 4.1.11, 6.1.3(b), 6.3, 10, 12.8(a) or 12.9 of the Participation Agreement, of the provisions of Section 4.1.2(x) of the Participation Agreement so as to eliminate the requirement to deliver to the Subordination Agent or the Mortgagee, as the case may be, the legal opinions to be provided to such Persons thereunder (recognizing that the lawyers rendering such opinions may be changed) or of the provisions of Section 6.4.5(a)(ii) of the Participation Agreement as regards the rights of the Mortgagee thereunder or otherwise modify the terms of the Participation Agreement to deprive the Trustees, the Subordination Agent, the Liquidity Providers or the Mortgagee of any indemnity or right of reimbursement in its favor for Expenses or Taxes.

 

Notwithstanding the foregoing, any form of Financing Agreement may be modified to correct or supplement any such provision which may be defective or to cure any ambiguity or correct any mistake, provided that any such action shall not materially adversely affect the interests of the Note Holders, the Related Note Holder of a Related Series A Equipment Note, the Related Note Holder of a Related Series B Equipment Note, the Subordination Agent, the Liquidity Providers, the Mortgagee or the Certificateholders.

Schedule III: Required Terms [NPA 2012-2 EETC]

  

  

BACK

 

ANNEX A to

Note Purchase Agreement

 

DEFINITIONS

 

"Act" means 49 U.S.C. §§ 40101-46507.

 

"Additional Series Equipment Notes" means Equipment Notes of a single series issued under an Indenture and designated other than as "Series A" or "Series B" issued thereunder, if any.

 

"Additional Series Pass Through Certificates" means the pass through certificates issued pursuant to any Additional Series Pass Through Trust Agreement.

 

"Additional Series Pass Through Trust" means a grantor trust created to facilitate the issuance and sale of pass through certificates in connection with the issuance of any Additional Series Equipment Notes.

 

"Additional Series Pass Through Trust Agreement" means a Trust Supplement entered into in connection with the creation of an Additional Series Pass Through Trust, together with the Basic Pass Through Trust Agreement.

 

"Additional Series Pass Through Trustee" means WTNA, in its capacity as trustee under an Additional Series Pass Through Trust Agreement.

 

"Aircraft" has the meaning set forth in the third recital to the Note Purchase Agreement.

 

"Aircraft Purchase Agreement" means, with respect to any Boeing 787-8 aircraft, the Purchase Agreement No. 2484, dated as of December 29, 2004, and with respect to any Boeing 737-924ER aircraft, the Purchase Agreement No. 1951, dated as of July 23, 1996, each as amended, between the Company and the Manufacturer (in each case including all exhibits thereto, together with all letter agreements entered into that by their terms constitute part of such Purchase Agreement).

 

"Applicable Pass Through Trustee" has the meaning provided in Section 1(b)(ii) of the Note Purchase Agreement.

 

"Bankruptcy Code" means the United States Bankruptcy Code, 11 U.S.C. §§ 101 et seq.

Annex A (NPA 12-2)

  

  

BACK

2

 

"Basic Pass Through Trust Agreement" means the Pass Through Trust Agreement, dated October 3, 2012, between the Company and Pass Through Trustee, as such agreement may be supplemented, amended or modified, but does not include any Trust Supplement.

 

"Business Day" means any day, other than a Saturday, Sunday or other day on which commercial banks are authorized or required by law to close in New York, New York, Chicago, Illinois, Wilmington, Delaware or Boston, Massachusetts.

 

"Certificates" has the meaning set forth in the fourth recital to the Note Purchase Agreement.

 

"Certificateholder" means the Person in whose name a Certificate is registered in the Register.

 

"Class" means the class of Certificates issued by each Pass Through Trust.

 

"Class A Certificates" means Certificates issued by the Class A Pass Through Trust.

 

"Class B Certificates" means Certificates issued by the Class B Pass Through Trust.

 

"Class A Pass Through Trustee" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"Class B Pass Through Trustee" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"Closing Notice" has the meaning set forth in Section 1(b) of the Note Purchase Agreement.

 

"Company" means Continental Airlines, Inc., a Delaware corporation.

 

"Cut-off Date" means the earlier of (a) the day after the Delivery Period Termination Date and (b) the date on which a Triggering Event occurs.

 

"Delivery Date" means the Business Day on which an Aircraft is delivered to and accepted by the Company.

 

"Delivery Period Termination Date" means the earlier of (a) December 31, 2013 (provided that, if a labor strike occurs or continues at the Manufacturer after the Issuance Date and on or prior to such date referred to in this clause (a), such date on or following the Issuance Date shall be extended by adding

Annex A (NPA 12-2)

  

  

BACK

3

 

thereto the number of days that such strike continued in effect after the Issuance Date, but not more than 60 days), and (b) the date on which Equipment Notes issued with respect to all of the Aircraft (including any Substitute Aircraft in lieu of any Eligible Aircraft) have been purchased by the Pass Through Trustees in accordance with the Note Purchase Agreement.

 

"Deposits" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

 

"Deposit Agreements" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

 

"Depositary" means Natixis S.A., acting through its New York Branch.

 

"Depositary Threshold Ratings" has the meaning set forth in Section 4(a)(vii) of the Note Purchase Agreement.

 

"Eligible Aircraft" has the meaning set forth in the second recital to the Note Purchase Agreement.

 

"Equipment Notes" means and includes any equipment notes issued under any Indenture in the form specified in Section 2.01 thereof (as such form may be varied pursuant to the terms of such Indenture) and any Equipment Note issued under any Indenture in exchange for or replacement of any other Equipment Note.

 

"Escrow Agent" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Escrow Agent Agreements" has the meaning set forth in Section 3(e)(i) of the Note Purchase Agreement.

 

"Escrow and Paying Agent Agreements" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

 

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

 

"Financing Agreements" means, collectively, the Participation Agreement, the Indenture and the Equipment Notes issued thereunder.

 

"Funding Date" has the meaning set forth in Section 1(b)(i) of the Note Purchase Agreement.

Annex A (NPA 12-2)

  

  

BACK

4

 

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

 

"Indenture" means the Trust Indenture and Mortgage substantially in the form of Exhibit C to the Note Purchase Agreement.

 

"Initial Deposits" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

 

"Intercreditor Agreement" has the meaning set forth in the ninth recital to the Note Purchase Agreement.

 

"Issuance Date" means the date of the original issuance of the Certificates.

 

"Law" means (a) any constitution, treaty, statute, law, decree, regulation, order, rule or directive of any Government Entity, and (b) any judicial or administrative interpretation or application of, or decision under, any of the foregoing.

 

"Liquidity Facility" has the meaning set forth in the ninth recital to the Note Purchase Agreement.

 

"Liquidity Provider" has the meaning set forth in the ninth recital to the Note Purchase Agreement.

 

"Loan Trustee" means the "Mortgagee" as defined in the Financing Agreements.

 

"Manufacturer" means The Boeing Company, a Delaware corporation, solely in its capacity as manufacturer or seller of New Aircraft.

 

"Note Purchase Agreement" means the Note Purchase Agreement to which this Annex A is attached.

 

"Notice of Purchase Withdrawal" with respect to each Deposit Agreement, has the meaning set forth in Section 2.3 thereof.

 

"Operative Agreements" means, collectively, the Pass Through Trust Agreements, the Escrow and Paying Agent Agreements, the Deposit Agreements, the Liquidity Facilities, the Intercreditor

Annex A (NPA 12-2)

  

  

BACK

5

 

Agreement, the Equipment Notes, the Certificates and the Financing Agreements.

 

"Participation Agreement" means the Participation Agreement substantially in the form of Exhibit B to the Note Purchase Agreement.

 

"Paying Agent Agreements" has the meaning set forth in Section 3(f)(i) of the Note Purchase Agreement.

 

"Pass Through Trust" has the meaning set forth in the fourth recital to the Note Purchase Agreement.

 

"Pass Through Trust Agreement" means each of the two separate Trust Supplements referred to in the fourth recital to the Note Purchase Agreement, together in each case with the Basic Pass Through Trust Agreement, each dated as of the Issuance Date, by and between the Company and Pass Through Trustee.

 

"Pass Through Trustee" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Paying Agent" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Person" means any individual, firm, partnership, joint venture, trust, trustee, Government Entity, organization, association, corporation, limited liability company, government agency, committee, department, authority and other body, corporate or incorporate, whether having distinct legal status or not, or any member of any of the same.

 

"Rating Agencies" means, collectively, at any time, each nationally recognized rating agency which shall have been requested to rate the Certificates and which shall then be rating the Certificates.  The initial Rating Agencies will be Fitch Ratings Ltd., Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business.

 

"Rating Agency Confirmation" means, with respect to (1) any Financing Agreement that has been modified in any material respect from the forms thereof attached to the Note Purchase Agreement or (2) a Substitute Aircraft, a written confirmation from each of the Rating Agencies that (1) the use of such Financing Agreement with such modifications or (2) the substituting of such Substitute Aircraft for an Eligible Aircraft, whichever of the foregoing shall in a particular case

Annex A (NPA 12-2)

  

  

BACK

6

 

require Rating Agency Confirmation, would not result in (i) a reduction of the rating for any Class of Certificates then rated by the Rating Agencies below the then current rating for such Class of Certificates or (ii) a withdrawal or suspension of the rating of any Class of Certificates then rated by the Rating Agencies.

 

"Register" means the register maintained pursuant to Sections 3.04 and 7.12 of the Basic Pass Through Trust Agreement with respect to each Pass Through Trust.

"Replacement Deposit Agreement" means, for each Class of Certificates, a deposit agreement substantially in the form of the replaced Deposit Agreement for such Class of Certificates as shall permit the Rating Agencies to confirm in writing their respective ratings then in effect for such Class of Certificates (before the downgrading of such ratings, if any, as a result of the downgrading of the Depositary, if applicable).

"Replacement Depositary" has the meaning set forth in Section 4(a)(vii) of the Note Purchase Agreement.

 

"Required Terms" means the terms set forth on Schedule III to the Note Purchase Agreement.

 

"Scheduled Closing Date" has the meaning set forth in Section 1(b) of the Note Purchase Agreement.

 

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

 

"Series A Equipment Notes" means the "Series A Equipment Notes" as defined in each Indenture entered into pursuant to the Note Purchase Agreement.

 

"Series B Equipment Notes" means the "Series B Equipment Notes" as defined in each Indenture entered into pursuant to the Note Purchase Agreement.

 

"Subordination Agent" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Substitute Aircraft" has the meaning set forth in Section 1(g) of the Note Purchase Agreement.

 

"Taxes" means all license, recording, documentary, registration and other similar fees and all taxes, levies, imposts, duties,

Annex A (NPA 12-2)

  

  

BACK

7

 

charges, assessments or withholdings of any nature whatsoever imposed by any Taxing Authority, together with any penalties, additions to tax, fines or interest thereon or additions thereto.

 

"Taxing Authority" means any federal, state or local government or other taxing authority in the United States, any foreign government or any political subdivision or taxing authority thereof, any international taxing authority or any territory or possession of the United States or any taxing authority thereof.

 

"Triggering Event" has the meaning assigned to such term in the Intercreditor Agreement.

 

"Trust Supplement" means an agreement supplemental to the Basic Pass Through Trust Agreement pursuant to which (i) a separate trust is created for the benefit of the holders of the pass through certificates of a class, (ii) the issuance of the pass through certificates of such class representing fractional undivided interests in such trust is authorized and (iii) the terms of the pass through certificates of such class are established.

 

"Underwriters" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"Underwriting Agreement" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"WTNA" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

Annex A (NPA 12-2)

  

  

BACK

 

EXHIBIT A

TO

NOTE PURCHASE AGREEMENT

 

CLOSING NOTICE

 

Dated as of [_________]

 

 

 

 

To each of the addressees listed

in Schedule A hereto

 

	
  

	
Re:

	
Closing Notice in accordance with Note Purchase Agreement referred to below

 

Ladies and Gentlemen:

 

Reference is made to the Note Purchase Agreement, dated as of October 3, 2012, among Continental Airlines, Inc. (the “Company”), Wilmington Trust, National Association, as Pass Through Trustee under each of the  Pass Through Trust Agreements (as defined therein) (the “Pass Through Trustee”), Wilmington Trust, National Association, as Subordination Agent (the “Subordination Agent”), U.S. Bank National Association, as Escrow Agent (the “Escrow Agent”), and Wilmington Trust, National Association, as Paying Agent (the “Paying Agent”) (as in effect from time to time, the “Note Purchase Agreement”).  Unless otherwise defined herein, capitalized terms used herein shall have the meanings set forth in the Note Purchase Agreement or, to the extent not defined therein, the Intercreditor Agreement.

 

Pursuant to Section 1(b) of the Note Purchase Agreement, the undersigned hereby notifies you, in respect of the Boeing Model [_______] aircraft with manufacturer’s serial number [______] (the “Aircraft”), of the following:

 

	
(1)

	
The Scheduled Closing Date of the Aircraft is [_________];

 

	
(2)

	
The Funding Date for the Aircraft shall be [__________]; and

 

	
(3)

	
The aggregate amount of each series of Equipment Notes to be issued, and purchased by the respective Pass Through Trustees referred to below (each, an “Applicable Pass Through Trustee”), on the Funding Date, in connection with the financing of such Aircraft is as follows:

 

	
  

	
(a)

	
the Class A Pass Through Trustee shall purchase Series A Equipment Notes in the amount of $[__________]; and

	
  

	
(b)

	
the Class B Pass Through Trustee shall purchase Series B Equipment Notes in the amount of $[__________].

Closing Notice 12-2

  

  

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-2-

 

The Company hereby instructs the Class A Pass Through Trustee to (i) execute a Withdrawal Certificate in the form of Annex A hereto dated as of [__________] and attach thereto a Notice of Purchase Withdrawal dated such date completed as set forth on Exhibit A hereto and (ii) deliver such Withdrawal Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

 

 

The Company hereby instructs the Class B Pass Through Trustee to (i) execute a Withdrawal Certificate in the form of Annex A hereto dated as of [__________] and attach thereto a Notice of Purchase Withdrawal dated such date completed as set forth on Exhibit B hereto and (ii) deliver such Withdrawal Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

 

The Company hereby instructs each Applicable Pass Through Trustee to (i) purchase Equipment Notes of a series and in an amount set forth opposite such Pass Through Trustee in clause (3) above with a portion of the proceeds of the withdrawals of Deposits referred to in the applicable Notice of Purchase Withdrawal referred to above and (ii) re-deposit with the Depositary the excess, if any, of the amount so withdrawn over the purchase price of such Equipment Notes.

 

The Company hereby instructs each Applicable Pass Through Trustee to (a) enter into the Participation Agreement [____] dated as of [___________] among the Company, as Owner, and Wilmington Trust, National Association, as Mortgagee, Subordination Agent and Pass Through Trustee, (b) perform its obligations thereunder and (c) deliver such certificates, documents and legal opinions relating to such Pass Through Trustee as required thereby.

 

	
Yours faithfully,

 

Continental Airlines, Inc.

	  	  
	  	  
	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

Closing Notice 12-2

  

  

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SCHEDULE A

 

Wilmington Trust, National Association, as

   Pass Through Trustee, Subordination

   Agent and Paying Agent

1100 North Market Street

Wilmington, Delaware  19890-1605

Attention:  Corporate Trust Administration

Facsimile:  (302) 636-4140

 

U.S. Bank National Association,

   as Escrow Agent

Boston, MA Office

One Federal Street , 3rd Floor

EX-MA-FED

Boston, MA 02110]

Attention:  David W. Doucette

Facsimile:  (617) 603-6672

Natixis S.A., acting through its New York Branch,

   as Depositary

1251 Avenue of the Americas

New York, NY 10020

Attention: Jocelyn Noel

Facsimile: (646) 282-2339

 

Standard & Poor’s Ratings Services

55 Water Street, 39th Floor

New York, New York  10041-0003

Attention:  Philip A. Baggaley, CFA

Facsimile:  (212) 438-7820

 

Moody’s Investors Service, Inc.

7 World Trade Center at 250 Greenwich Street

New York, New York  10007

Attention:  Jonathan Root

Facsimile: (212) 553-4661

 

Fitch Ratings Ltd.

1 State Street

New York, New York 10004

Attention:  Sara Rouf

Facsimile:  (212) 908-0775

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Annex A

 

WITHDRAWAL CERTIFICATE

(Class ___)

 

U.S. Bank National Association,

as Escrow Agent

 

Ladies and Gentlemen:

 

Reference is made to the Escrow and Paying Agent Agreement, dated as of October 3, 2012 (the “Agreement”).  We hereby certify to you that the conditions to the obligations of the undersigned to execute a Participation Agreement pursuant to the Note Purchase Agreement have been satisfied.  Pursuant to Section 1.02(c) of the Agreement, please execute the attached Notice of Purchase Withdrawal and immediately transmit by facsimile to the Depositary, at [_______] (Attention:  [______]).

 

Capitalized terms used herein but not defined herein shall have the meanings set forth in the Agreement.

 

	  	
Very truly yours,

	  
	  	  	  
	  	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

not in its individual capacity but solely as Pass Through Trustee

	  
	  	  	  
	  	  	  
	  	
By:

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  

 

Dated: As of [____________]

Closing Notice 12-2

  

  

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Exhibit A

 

NOTICE OF PURCHASE WITHDRAWAL

Natixis S.A., acting through its New York Branch,

   as Depositary

1251 Avenue of the Americas

New York, NY 10020

Attention: Jocelyn Noel

Facsimile: (646) 282-2339

 

Ladies and Gentlemen:

 

Reference is made to the Deposit Agreement (Class A) dated as of October 3, 2012 (the “Deposit Agreement”) between U.S. Bank National Association, as Escrow Agent, and Natixis S.A., acting through its New York Branch, as Depositary (the “Depositary”).

 

In accordance with Section 2.3(a) of the Deposit Agreement, the undersigned hereby requests the withdrawal of the entire amount of the Deposit, $[_______], Account No. [____].

 

The undersigned hereby directs the Depositary to pay the entire amount of the Deposit to [___________________], Account No. [____], Reference: [_________] on [__________].

 

	  	
U.S. BANK NATIONAL ASSOCIATION,

     as Escrow Agent

	  
	  	  	  
	  	  	  
	  	
By:

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  

 

Dated: As of [____________]

Closing Notice 12-2

  

  

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Exhibit B

 

NOTICE OF PURCHASE WITHDRAWAL

Natixis S.A., acting through its New York Branch,

   as Depositary

1251 Avenue of the Americas

New York, NY 10020

Attention: Jocelyn Noel

Facsimile: (646) 282-2339

 

Ladies and Gentlemen:

 

Reference is made to the Deposit Agreement (Class B) dated as of October 3, 2012 (the “Deposit Agreement”) between U.S. Bank National Association, as Escrow Agent, and Natixis S.A., acting through its New York Branch, as Depositary (the “Depositary”).

 

In accordance with Section 2.3(a) of the Deposit Agreement, the undersigned hereby requests the withdrawal of the entire amount of the Deposit, $[_______], Account No. [____].

 

The undersigned hereby directs the Depositary to pay the entire amount of the Deposit to [___________________], Account No. [____], Reference: [__________] on [__________].

 

	  	
U.S. BANK NATIONAL ASSOCIATION,

     as Escrow Agent

	  
	  	  	  
	  	  	  
	  	
By:

	  	  
	  	  	
Name:

	  	  
	  	  	
Title:

	  	  

 

Dated: As of [____________]

 

 

Closing Notice 12-2e62075683ex4_14.htm

 

EXHIBIT B TO NOTE PURCHASE AGREEMENT

	
CONFIDENTIAL:  Subject to Restrictions on Dissemination

Set Forth in Section 7 of this Agreement

 

______________________________________________________________

 

 

 

PARTICIPATION AGREEMENT [___]

 

Dated as of [_____________]

 

Among

 

CONTINENTAL AIRLINES, INC.,

Owner,

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

Not in its individual capacity

except as expressly provided herein,

but solely as Mortgagee, Subordination Agent 

under the Intercreditor Agreement and Pass Through Trustee

under each of the Applicable Pass Through Trust Agreements

 

____________________________

 

One Boeing Model [_________] Aircraft

Bearing Manufacturer's Serial No.[______]

and U.S. Registration No. N[_______]

 

 

 

______________________________________________________________

PARTICIPATION AGREEMENT 12-2 

  

  

  

 

CONTENTS

	
 

SECTION 1.  DEFINITIONS AND CONSTRUCTION

	
2

	
 

SECTION 2.  SECURED LOANS; CLOSING

	
2

	
2.1  Making of Loans and Issuance of Equipment Notes

	
2

	
2.2  Closing

	
3

	
 

SECTION 3.  [Intentionally omitted]

	
3

	
 

SECTION 4.  CONDITIONS PRECEDENT

	
3

	
4.1  Conditions Precedent to the Obligations of the Pass Through Trustees

	
3

	
4.2  Conditions Precedent to Obligations of Mortgagee

	
7

	
4.3  Conditions Precedent to Obligations of Owner

	
8

	
4.4  Post-Registration Opinion

	
9

	
 

SECTION 5.  REPRESENTATIONS AND WARRANTIES

	
9

	
5.1  Owner's Representations and Warranties

	
9

	
5.2  WTNA's Representations and Warranties

	
13

	
 

SECTION 6.  COVENANTS, UNDERTAKINGS AND AGREEMENTS

	
17

	
6.1  Covenants of Owner

	
17

	
6.2  Covenants of WTNA

	
19

	
6.3  Covenants of Note Holders

	
20

	
6.4  Agreements

	
21

	
 

SECTION 7.  CONFIDENTIALITY

	
25

	
 

SECTION 8.  INDEMNIFICATION AND EXPENSES

	
26

	
8.1  General Indemnity

	
26

	
8.2  Expenses

	
32

	
8.3  General Tax Indemnity

	
33

	
8.4  Payments

	
43

	
8.5  Interest

	
43

	
8.6  Benefit of Indemnities

	
44

	
 

SECTION 9.  ASSIGNMENT OR TRANSFER OF INTEREST

	
44

	
9.1  Note Holders

	
44

	
9.2  Effect of Transfer

	
44

PARTICIPATION AGREEMENT 12-2 

  

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SECTION 10.  SECTION 1110

	
45

	
 

SECTION 11.  CHANGE OF CITIZENSHIP

	
45

	
11.1  Generally

	
45

	
11.2  Mortgagee

	
45

	
 

SECTION 12.  MISCELLANEOUS

	
45

	
12.1  Amendments

	
45

	
12.2  Severability

	
46

	
12.3  Survival

	
46

	
12.4  Reproduction of Documents

	
46

	
12.5  Counterparts

	
47

	
12.6  No Waiver

	
47

	
12.7  Notices

	
47

	
12.8  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE

	
48

	
12.9  Third-Party Beneficiary

	
49

	
12.10  Entire Agreement

	
49

	
12.11  Further Assurances

	
49

 

SCHEDULES AND EXHIBITS

 

	
SCHEDULE 1 -

	
Accounts; Addresses

	
SCHEDULE 2 -

	
Commitments

	
SCHEDULE 3 -

	
Certain Terms

	
SCHEDULE 4 -

	
Permitted Countries

 

	
EXHIBIT A -

	
Opinion of special counsel to Owner

	
EXHIBIT B -

	
Opinion of corporate counsel to Owner

	
EXHIBIT C -

	
Opinion of special counsel to Mortgagee

	
  

	
and to the Applicable Pass Through Trustees

	
EXHIBIT D -

	
Opinion of special counsel in Oklahoma City, Oklahoma

PARTICIPATION AGREEMENT 12-2 

  

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PARTICIPATION AGREEMENT [___]

 

PARTICIPATION AGREEMENT [____], dated as of [____________] (this "Agreement"), among (a) CONTINENTAL AIRLINES, INC., a Delaware corporation ("Owner"), (b) WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, not in its individual capacity, except as expressly provided herein, but solely as Mortgagee (in its capacity as Mortgagee, "Mortgagee" and in its individual capacity, "WTNA"), (c) WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity, except as expressly provided herein, but solely as Pass Through Trustee under each of the Applicable Pass Through Trust Agreements (each, an "Applicable Pass Through Trustee") and (d) WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity, except as expressly provided herein, but solely as Subordination Agent under the Intercreditor Agreement ("Subordination Agent").

 

RECITALS

 

A.           Owner and Airframe Manufacturer have entered into the Purchase Agreement, pursuant to which, among other things, Airframe Manufacturer has agreed to manufacture and sell to Owner and Owner has agreed to purchase from Airframe Manufacturer, certain aircraft, including the Aircraft.

 

B.           Pursuant to each of the Pass Through Trust Agreements, the Pass Through Trusts were created and the Pass Through Certificates were issued and sold.

 

C.           Each Applicable Pass Through Trustee has agreed to use a portion of the proceeds from the issuance and sale of the Pass Through Certificates issued by each Applicable Pass Through Trust to purchase from Owner, on behalf of the related Applicable Pass Through Trust, the Equipment Note bearing the same interest rate as the Pass Through Certificates issued by such Pass Through Trust.

 

D.           Owner and Mortgagee, concurrently with the execution and delivery hereof, have entered into the Trust Indenture for the benefit of the Note Holders, pursuant to which, among other things, Owner agrees (1) to issue Equipment Notes, in the amounts and otherwise as provided in the Trust Indenture, and (2) to mortgage, pledge and assign to Mortgagee all of Owner's right, title and interest in the Collateral to secure the Secured Obligations, including, without limitation, Owner's obligations under the Equipment Notes.

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E.           The parties hereto wish to set forth in this Agreement the terms and conditions upon and subject to which the aforesaid transactions shall be effected.

 

NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

	
SECTION 1.

	
DEFINITIONS AND CONSTRUCTION

 

Capitalized terms used but not defined herein (including in the initial paragraph and Recitals above) shall have the respective meanings set forth or incorporated by reference, and shall be construed and interpreted in the manner described, in Annex A to the Trust Indenture.

 

	
SECTION 2.

	
SECURED LOANS; CLOSING

 

	
  

	
2.1

	
Making of Loans and Issuance of Equipment Notes

 

Subject to the terms and conditions of this Agreement, on the date hereof or on such other date agreed to by the parties hereto (the "Closing Date"):

 

	
  

	
(a)

	
Each Applicable Pass Through Trustee listed on Schedule 2 shall make a secured loan to the Owner in the amount in Dollars opposite such Trustee's name on Schedule 2; and

 

	
  

	
(b)

	
The Owner shall issue, pursuant to and in accordance with the provisions of Article II of the Trust Indenture, to the Subordination Agent as the registered holder on behalf of each such Applicable Pass Through Trustee, one or more Equipment Notes, dated the Closing Date, of the Series set forth opposite such Trustee's name on Schedule 2, in an aggregate principal amount equal to the amount of the secured loan made by each such Applicable Pass Through Trustee.

 

In addition, the Owner shall have the option after the Closing Date to redeem and reissue Series B Equipment Notes and to issue (and redeem and reissue) from time to time Additional Series Equipment Notes, subject to the terms of the Note Purchase Agreement and the Intercreditor Agreement.  If Series B or Additional Series Equipment Notes are so reissued or issued after the Closing Date, the Note Holder of such Equipment Notes

PARTICIPATION AGREEMENT 12-2 

  

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shall be entitled to execute a counterpart to this Agreement and become a party hereto.

 

	
  

	
2.2

	
Closing

 

(a)           The Closing of the transactions contemplated hereby shall take place at the offices of Hughes Hubbard & Reed LLP, One Battery Park Plaza, New York, New York 10004, or at such other place as the parties shall agree.

 

(b)           All payments pursuant to this Section 2 shall be made in immediately available funds to such accounts set forth in Schedule 1 hereto.

 

	
SECTION 3.

	
[Intentionally omitted]

 

	
SECTION 4.

	
CONDITIONS PRECEDENT

 

	
  

	
4.1

	
Conditions Precedent to the Obligations of the Pass Through Trustees

 

The obligation of each Applicable Pass Through Trustee listed on Schedule 2 to make the secured loan described in Section 2.1(a) and to participate in the transactions contemplated by this Agreement on the Closing Date is subject to the fulfillment, prior to or on the Closing Date, of the following conditions precedent:

 

	
  

	
4.1.1

	
Equipment Notes

 

The Owner shall have tendered the Equipment Notes to be issued to such Applicable Pass Through Trustees to the Mortgagee for authentication and the Mortgagee shall have authenticated such Equipment Notes to be issued to such Applicable Pass Through Trustees and shall have tendered the Equipment Notes to the Subordination Agent on behalf of such Pass Through Trustee, against receipt of the loan proceeds, in accordance with Section 2.1.

 

	
  

	
4.1.2

	
Delivery of Documents

 

The Subordination Agent on behalf of each such Applicable Pass Through Trustee shall have received executed counterparts or conformed copies of the following documents:

 

                 (i)this Agreement;

 

                 (ii)the Trust Indenture;

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                 (iii)the initial Trust Indenture Supplement;

 

                 (iv)the broker's report and insurance certificates required by Section 4.06 of the Trust Indenture;

 

                 (v)the Consent and Agreement and the Engine Consent and Agreement;

 

                 (vi)the Bills of Sale;

 

                 (vii)(A) a copy of the Certificate of Incorporation and By-Laws of Owner and resolutions of the board of directors of Owner and/or the executive committee thereof, in each case certified as of the Closing Date, by the Secretary or an Assistant Secretary of Owner, duly authorizing the execution, delivery and performance by Owner of the Operative Agreements to which it is party required to be executed and delivered by Owner on or prior to the Closing Date in accordance with the provisions hereof and thereof; and (B) an incumbency certificate of Owner as to the person or persons authorized to execute and deliver the Operative Agreements on behalf of Owner;

 

                 (viii)an Officer's Certificate of Owner, dated as of the Closing Date, stating that its representations and warranties set forth in this Agreement are true and correct as of the Closing Date (or, to the extent that any such representation and warranty expressly relates to an earlier date, true and correct as of such earlier date);

 

                 (ix)the Financing Statements;

 

                 (x)the following opinions of counsel, in each case dated the Closing Date:

 

(A)an opinion of Hughes Hubbard & Reed LLP, special counsel to Owner, substantially in the form of Exhibit A;

 

(B)an opinion of Owner's Legal Department, substantially in the form of Exhibit B;

 

(C)an opinion of Morris James LLP, special counsel to Mortgagee and to the Applicable Pass Through Trustees, substantially in the form of Exhibit C;

PARTICIPATION AGREEMENT 12-2 

  

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(D)an opinion of Lytle Soulé & Curlee, special counsel in Oklahoma City, Oklahoma, substantially in the form of Exhibit D; and

 

                 (xi)a copy of a current, valid Standard Certificate of Airworthiness for the Aircraft duly issued by the FAA, together with a copy of a duly executed application for registration of the Aircraft with the FAA in the name of the Owner.

 

	
  

	
4.1.3

	
Perfected Security Interest

 

On the Closing Date, after giving effect to the filing of the FAA Filed Documents, the filing of the Financing Statements and the registration of the International Interest (or Prospective International Interest) of the Mortgagee in the Airframe and each Engine with the International Registry, Mortgagee shall have received a duly perfected first priority security interest in all of Owner's right, title and interest in the Aircraft, subject only to Permitted Liens.

 

	
  

	
4.1.4

	
Violation of Law

 

No change shall have occurred after the date of this Agreement in any applicable Law that makes it a violation of Law for (a) Owner, any Applicable Pass Through Trustee, Subordination Agent or Mortgagee to execute, deliver and perform the Operative Agreements to which any of them is a party or (b) any Applicable Pass Through Trustee to make the loan contemplated by Section 2.1, to acquire an Equipment Note or to realize the benefits of the security afforded by the Trust Indenture.

 

	
  

	
4.1.5

	
Representations, Warranties and Covenants

 

The representations and warranties of each other party to this Agreement made, in each case, in this Agreement and in any other Operative Agreement to which it is a party, shall be true and accurate in all material respects as of the Closing Date (unless any such representation and warranty shall have been made with reference to a specified date, in which case such representation and warranty shall be true and accurate as of such specified date) and each other party to this Agreement shall have performed and observed, in all material respects, all of its covenants, obligations and agreements in this Agreement and in any other Operative Agreement to which it is a party to be observed or performed by it as of the Closing Date.

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4.1.6

	
No Event of Default

 

On the Closing Date, no event shall have occurred and be continuing, or would result from the mortgage of the Aircraft, which constitutes a Default or an Event of Default.

 

	
  

	
4.1.7

	
No Event of Loss

 

No Event of Loss with respect to the Airframe or any Engine shall have occurred and no circumstance, condition, act or event that, with the giving of notice or lapse of time or both, would give rise to or constitute an Event of Loss with respect to the Airframe or any Engine shall have occurred.

 

	
  

	
4.1.8

	
Title

 

Owner shall have good title (subject to filing and recordation of the FAA Bill of Sale with the FAA) to the Aircraft, free and clear of all Liens, except Permitted Liens.

 

	
  

	
4.1.9

	
Certification

 

The Aircraft shall have been duly certificated by the FAA as to type and airworthiness in accordance with the terms of the Purchase Agreement.

 

	
  

	
4.1.10

	
Section 1110

 

Mortgagee shall be entitled to the benefits of Section 1110 (as currently in effect) with respect to the right to take possession of the Airframe and Engines and to enforce any of its other rights or remedies as provided in the Trust Indenture in the event of a case under Chapter 11 of the Bankruptcy Code in which Owner is a debtor.

 

	
  

	
4.1.11

	
Filing

 

On the Closing Date (a) the FAA Filed Documents shall have been duly filed for recordation (or shall be in the process of being so duly filed for recordation) with the FAA in accordance with the Act, (b) the sale of the Airframe and Engines to the Owner and the International Interest (or Prospective International Interest) of the Mortgagee in the Airframe and Engines granted (or to be granted) under the Trust Indenture shall have been registered with the International Registry and there shall exist no registered International Interest with respect to the Airframe or either Engine on the International Registry with a priority over the International Interest of the

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Mortgagee therein, (c) each Financing Statement shall have been duly filed (or shall be in the process of being so duly filed) in the appropriate jurisdiction and (d) the Subordination Agent, on behalf of each Applicable Pass Through Trustee, shall have received a printout of the "priority search certificate" from the International Registry relating to the Airframe and each Engine showing no International Interest with a priority over the International Interest of the Mortgagee therein.

 

	
  

	
4.1.12

	
No Proceedings

 

No action or proceeding shall have been instituted, nor shall any action be threatened in writing, before any Government Entity, nor shall any order, judgment or decree have been issued or proposed to be issued by any Government Entity, to set aside, restrain, enjoin or prevent the completion and consummation of this Agreement or any other Operative Agreement or the transactions contemplated hereby or thereby.

 

	
  

	
4.1.13

	
Governmental Action

 

All appropriate action required to have been taken prior to the Closing Date by the FAA, or any governmental or political agency, subdivision or instrumentality of the United States, in connection with the transactions contemplated by this Agreement shall have been taken, and all orders, permits, waivers, authorizations, exemptions and approvals of such entities required to be in effect on the Closing Date in connection with the transactions contemplated by this Agreement shall have been issued.

 

	
  

	
4.1.14

	
Note Purchase Agreement

 

The conditions precedent to the obligations of the Applicable Pass Through Trustees and the other requirements relating to the Aircraft and the Equipment Notes set forth in the Note Purchase Agreement shall have been satisfied.

 

	
  

	
4.2

	
Conditions Precedent to Obligations of Mortgagee

 

The obligation of Mortgagee to authenticate the Equipment Notes on the Closing Date is subject to the satisfaction or waiver by Mortgagee, on or prior to the Closing Date, of the conditions precedent set forth below in this Section 4.2.

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4.2.1

	
Documents

 

Executed originals of the agreements, instruments, certificates or documents described in Section 4.1.2 shall have been received by Mortgagee, except as specifically provided therein, unless the failure to receive any such agreement, instrument, certificate or document is the result of any action or inaction by Mortgagee.

 

	
  

	
4.2.2

	
Other Conditions Precedent

 

Each of the conditions set forth in Sections 4.1.4, 4.1.5, 4.1.6 and 4.1.10 shall have been satisfied unless the failure of any such condition to be satisfied is the result of any action or inaction by Mortgagee.

 

	
  

	
4.3

	
Conditions Precedent to Obligations of Owner

 

The obligation of Owner to participate in the transaction contemplated hereby on the Closing Date is subject to the satisfaction or waiver by Owner, on or prior to the Closing Date, of the conditions precedent set forth below in this Section 4.3.

 

	
  

	
4.3.1

	
Documents

 

Executed originals of the agreements, instruments, certificates or documents described in Section 4.1.2 shall have been received by Owner, except as specifically provided therein, and shall be satisfactory to Owner, unless the failure to receive any such agreement, instrument, certificate or document is the result of any action or inaction by Owner.  In addition, the Owner shall have received the following:

 

                 (i)(A) an incumbency certificate of WTNA as to the person or persons authorized to execute and deliver the Operative Agreements on behalf of WTNA and (B) a copy of the Certificate of Incorporation and By-Laws and general authorizing resolution of the board of directors (or executive committee) or other satisfactory evidence of authorization of WTNA, certified as of the Closing Date by the Secretary or Assistant or Attesting Secretary of WTNA, which authorize the execution, delivery and performance by WTNA of the Operative Agreements to which it is a party; and

 

                 (ii)an Officer's Certificate of WTNA, dated as of the Closing Date, stating that its representations and

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warranties in its individual capacity or as Mortgagee, an Applicable Pass Through Trustee or Subordination Agent, as the case may be, set forth in this Agreement are true and correct as of the Closing Date (or, to the extent that any such representation and warranty expressly relates to an earlier date, true and correct as of such earlier date).

 

	
  

	
4.3.2

	
Other Conditions Precedent

 

Each of the conditions set forth in Sections 4.1.4, 4.1.5, 4.1.6, 4.1.7, 4.1.8, 4.1.9, 4.1.10, 4.1.11, 4.1.12 and 4.1.13 shall have been satisfied or waived by Owner, unless the failure of any such condition to be satisfied is the result of any action or inaction by Owner.

 

	
  

	
4.4

	
Post-Registration Opinion

 

Promptly upon the registration of the Aircraft and the recordation of the FAA Filed Documents pursuant to the Act, Owner will cause Lytle Soulé & Curlee, special counsel in Oklahoma City, Oklahoma, to deliver to Owner, each Pass Through Trustee and Mortgagee a favorable opinion or opinions addressed to each of them with respect to such registration and recordation.

 

	
SECTION 5.

	
REPRESENTATIONS AND WARRANTIES

 

	
  

	
5.1

	
Owner's Representations and Warranties

 

Owner represents and warrants to each Pass Through Trustee, Subordination Agent and Mortgagee that:

 

	
  

	
5.1.1

	
Organization; Qualification

 

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

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5.1.2

	
Corporate Authorization

 

Owner has taken, or caused to be taken, all necessary corporate action (including, without limitation, the obtaining of any consent or approval of stockholders required by its Certificate of Incorporation or By-Laws) to authorize the execution and delivery of each of the Operative Agreements to which it is party, and the performance of its obligations thereunder.

 

	
  

	
5.1.3

	
No Violation

 

The execution and delivery by Owner of the Operative Agreements to which it is party, the performance by Owner of its obligations thereunder and the consummation by Owner on the Closing Date of the transactions contemplated thereby, do not and will not (a) violate any provision of the Certificate of Incorporation or By-Laws of Owner, (b) violate any Law applicable to or binding on Owner or (c) violate or constitute any default under (other than any violation or default that would not result in a Material Adverse Change to Owner), or result in the creation of any Lien (other than as permitted under the Trust Indenture) upon the Aircraft under, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Owner is a party or by which Owner or any of its properties is bound.

 

	
  

	
5.1.4

	
Approvals

 

The execution and delivery by Owner of the Operative Agreements to which Owner is a party, the performance by Owner of its obligations thereunder and the consummation by Owner on the Closing Date of the transactions contemplated thereby do not and will not require the consent or approval of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (a) any trustee or other holder of any Debt of Owner and (b) any Government Entity, other than (x) the filings, registrations and recordations referred to in Section 5.1.6 and (y) filings, recordings, notices or other ministerial actions pursuant to any routine recording, contractual or regulatory requirements applicable to it.

 

	
  

	
5.1.5

	
Valid and Binding Agreements

 

The Operative Agreements to which Owner is a party have been duly authorized, executed and delivered by Owner and,

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assuming the due authorization, execution and delivery thereof by the other party or parties thereto, constitute the legal, valid and binding obligations of Owner and are enforceable against Owner in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium and other similar Laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.

 

	
  

	
5.1.6

	
Registration and Recordation

 

Except for (a) the registration of the Aircraft with the FAA pursuant to the Act in the name of Owner (and the periodic renewal of such registration with the FAA prior to its expiration), (b) the filing with the FAA of the AC Forms 8050-135 with respect to the sale of the Airframe and Engines to Owner and the International Interests (or Prospective International Interests) granted under the Trust Indenture thereon and the filing with the FAA for recordation (and recordation) of the FAA Filed Documents, (c) the registration of the International Interest (or Prospective International Interest) in, and the sale to the Owner of, the Airframe and Engines with the International Registry, (d) the filing of the Financing Statements (and continuation statements relating thereto at periodic intervals), and (e) the affixation of the nameplates referred to in Section 4.02(f) of the Trust Indenture, no further action, including any filing or recording of any document (including any financing statement in respect thereof under Article 9 of the UCC) is necessary in order to establish and perfect Mortgagee's security interest in the Aircraft as against Owner and any other Person, in each case, in any applicable jurisdictions in the United States.

 

	
  

	
5.1.7

	
Owner's Location

 

The Owner's location (as such term is used in Section 9-307 of the UCC) is Delaware.  The full and correct legal name and mailing address of Owner are correctly set forth in Schedule 1 hereto in the column "Address for Notices".

 

	
  

	
5.1.8

	
No Event of Loss

 

No Event of Loss has occurred with respect to the Airframe or any Engine, and, to the Actual Knowledge of Owner, no circumstance, condition, act or event has occurred that, with the giving of notice or lapse of time or both gives rise to or

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constitutes an Event of Loss with respect to the Airframe or any Engine.

 

	
  

	
5.1.9

	
Compliance With Laws

 

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

 

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

 

(c)           Owner is not an "investment company" or a company controlled by an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

 

	
  

	
5.1.10

	
Securities Laws

 

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

 

	
  

	
5.1.11

	
Broker's Fees

 

No Person acting on behalf of Owner is or will be entitled to any broker's fee, commission or finder's fee in connection with the Transactions, other than the fees and expenses payable by Owner in connection with the sale of the Pass Through Certificates.

 

	
  

	
5.1.12

	
Section 1110

 

Mortgagee is entitled to the benefits of Section 1110 (as currently in effect) with respect to the right to take possession of the Airframe and Engines and to enforce any of its other rights or remedies as provided in the Trust Indenture in the event of a case under Chapter 11 of the Bankruptcy Code in which Owner is a debtor.

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5.1.13  

	
Cape Town

 

The Owner is a Transacting User Entity (as defined in the regulations of the International Registry); is "situated", for the purposes of the Cape Town Treaty, in the United States; and has the power to "dispose" (as such term is used in the Cape Town Treaty) of the Airframe and each Engine.  The Bills of Sale for the Airframe and Engines constitute a "contract of sale" (as defined in the Cape Town Treaty), and the Trust Indenture, as supplemented by the Trust Indenture Supplement in which such Airframe and Engines are listed, creates an International Interest in such Airframe and Engines.  The Airframe and each Engine are "aircraft objects" (as defined in the Cape Town Treaty); and the United States is a Contracting State under the Cape Town Treaty.

 

	
  

	
5.2

	
WTNA's Representations and Warranties

 

WTNA represents and warrants (with respect to Section 5.2.10, solely in its capacity as Subordination Agent) to Owner that:

 

	
  

	
5.2.1

	
Organization, Etc.

 

WTNA is a national banking association duly organized, validly existing and in good standing under the Laws of the United States of America, holding a valid certificate to do business as a national banking association with corporate and banking authority to execute and deliver, and perform its obligations under, the Applicable Pass Through Trustee Agreements and the Operative Agreements to which it is a party.

 

	
  

	
5.2.2

	
Corporate Authorization

 

WTNA has taken, or caused to be taken, all necessary corporate action (including, without limitation, the obtaining of any consent or approval of stockholders required by Law or by its Certificate of Incorporation or By-Laws) to authorize the execution and delivery by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the Pass Through Trustee Agreements and the Operative Agreements to which it is a party and the performance of its obligations thereunder.

 

	
  

	
5.2.3

	
No Violation

 

The execution and delivery by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or

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Subordination Agent, as the case may be, of the Pass Through Trustee Agreements and the Operative Agreements to which it is a party, the performance by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of its obligations thereunder and the consummation on the Closing Date of the transactions contemplated thereby, do not and will not (a) violate any provision of the Certificate of Incorporation or By-Laws of WTNA, (b) violate any Law applicable to or binding on WTNA, in its individual capacity or (except in the case of any Law relating to any Plan) as Mortgagee, a Pass Through Trustee or Subordination Agent, or (c) violate or constitute any default under (other than any violation or default that would not result in a Material Adverse Change to WTNA, in its individual capacity or Mortgagee, a Pass Through Trustee or Subordination Agent), or result in the creation of any Lien (other than the Lien of the Trust Indenture) upon any property of WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, or any of WTNA's subsidiaries under, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other agreement, instrument or document to which WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, is a party or by which WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, or any of their respective properties is bound.

 

	
  

	
5.2.4

	
Approvals

 

The execution and delivery by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the Pass Through Trustee Agreements and the Operative Agreements to which it is a party, the performance by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of its obligations thereunder and the consummation on the Closing Date by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the transactions contemplated thereby do not and will not require the consent, approval or authorization of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (a) any trustee or other holder of any Debt of WTNA or (b) any Government Entity, other than the filing of the FAA Filed Documents and the Financing Statements.

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5.2.5

	
Valid and Binding Agreements

 

The Pass Through Trustee Agreements and the Operative Agreements to which it is a party have been duly authorized, executed and delivered by WTNA and, assuming the due authorization, execution and delivery by the other party or parties thereto, constitute the legal, valid and binding obligations of WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, and are enforceable against WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other similar Laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.

 

	
  

	
5.2.6

	
Citizenship

 

WTNA is a Citizen of the United States.

 

	
  

	
5.2.7

	
No Liens

 

On the Closing Date, there are no Liens attributable to WTNA in respect of all or any part of the Collateral.

 

	
  

	
5.2.8

	
Litigation

 

There are no pending or, to the Actual Knowledge of WTNA, threatened actions or proceedings against WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, before any court, administrative agency or tribunal which, if determined adversely to WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, would materially adversely affect the ability of WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, to perform its obligations under any of the Mortgagee Agreements, the Pass Through Trustee Agreements or the Subordination Agent Agreements.

 

	
  

	
5.2.9

	
Securities Laws

 

Neither WTNA nor any person authorized to act on its behalf has directly or indirectly offered any beneficial interest or Security relating to the ownership of the Aircraft or any interest in the Collateral or any of the Equipment Notes or any

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other interest in or security under the Collateral for sale to, or solicited any offer to acquire any such interest or security from, or has sold any such interest or security to, any Person other than the Subordination Agent and the Pass Through Trustees, except for the offering and sale of the Pass Through Certificates.

 

	
  

	
5.2.10

	
Investment

 

The Equipment Notes to be acquired by the Subordination Agent are being acquired by it for the account of the Applicable Pass Through Trustees, for investment and not with a view to any resale or distribution thereof, except that, subject to the restrictions on transfer set forth in Section 9, the disposition by it of its Equipment Notes shall at all times be within its control.

 

	
  

	
5.2.11

	
Taxes

 

There are no Taxes payable by any Applicable Pass Through Trustee or WTNA, as the case may be, imposed by the State of Delaware or any political subdivision or taxing authority thereof in connection with the execution, delivery and performance by such Pass Through Trustee or WTNA, as the case may be, of this Agreement or any of the Pass Through Trustee Agreements (other than franchise or other taxes based on or measured by any fees or compensation received by any such Pass Through Trustee or WTNA, as the case may be, for services rendered in connection with the transactions contemplated by any of the Pass Through Trust Agreements), and there are no Taxes payable by any Applicable Pass Through Trustee or WTNA, as the case may be, imposed by the State of Delaware or any political subdivision thereof in connection with the acquisition, possession or ownership by any such Pass Through Trustee of any of the Equipment Notes (other than franchise or other taxes based on or measured by any fees or compensation received by any such Pass Through Trustee or WTNA, as the case may be, for services rendered in connection with the transactions contemplated by any of the Pass Through Trust Agreements), and, assuming that the trusts created by the Pass Through Trust Agreements will not be taxable as corporations, but, rather, each will be characterized as a grantor trust under subpart E, Part I of Subchapter J of the Code or as a partnership under Subchapter K of the Code, such trusts will not be subject to any Taxes imposed by the State of Delaware or any political subdivision thereof.

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5.2.12

	
Broker's Fees

 

No Person acting on behalf of WTNA, in its individual capacity or as Mortgagee, any Applicable Pass Through Trustee or Subordination Agent, is or will be entitled to any broker's fee, commission or finder's fee in connection with the Transactions.

 

	
SECTION 6.

	
COVENANTS, UNDERTAKINGS AND AGREEMENTS

 

	
  

	
6.1

	
Covenants of Owner

 

Owner covenants and agrees, at its own cost and expense, with Note Holder and Mortgagee as follows:

 

	
  

	
6.1.1

	
Corporate Existence; U.S. Air Carrier

 

Owner shall at all times maintain its corporate existence, except as permitted by Section 4.07 of the Trust Indenture, and shall at all times remain a U.S. Air Carrier.

 

	
  

	
6.1.2

	
Notice of Change of Location

 

Owner will give Mortgagee timely written notice (but in any event within 30 days prior to the expiration of the period of time specified under applicable Law to prevent lapse of perfection) of any change in its location (as such term is used in Section 9-307 of the UCC) or legal name and will promptly take any action required by Section 6.1.3(c) as a result of such relocation.

 

	
  

	
6.1.3

	
Certain Assurances

 

(a)           Owner shall duly execute, acknowledge and deliver, or shall cause to be executed, acknowledged and delivered, all such further agreements, instruments, certificates or documents, and shall do and cause to be done such further acts and things, in any case, as Mortgagee shall reasonably request for accomplishing the purposes of this Agreement and the other Operative Agreements, provided that any instrument or other document so executed by Owner will not expand any obligations or limit any rights of Owner in respect of the transactions contemplated by any Operative Agreement.

 

(b)           Owner shall promptly take such action with respect to the recording, filing, re-recording and refiling of the Trust Indenture and any supplements thereto, including, without limitation, the initial Trust Indenture Supplement, as shall be

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necessary to continue the perfection and priority of the Lien created by the Trust Indenture.

 

(c)           Owner, at its sole cost and expense, will cause the FAA Filed Documents, the Financing Statements and all continuation statements (and any amendments necessitated by any combination, consolidation or merger of the Owner, or any relocation of its chief executive office) in respect of the Financing Statements to be prepared and, subject only to the execution and delivery thereof by Mortgagee, duly and timely filed and recorded, or filed for recordation, to the extent permitted under the Act (with respect to the FAA Filed Documents) or the UCC or similar law of any other applicable jurisdiction (with respect to such other documents).  Mortgagee, and not Owner, shall be responsible for any amendments to the foregoing documents and filings, recordings and registrations thereof necessitated in any such case by any combination, consolidation or merger of Mortgagee or change in the Mortgagee's name, status, jurisdiction of organization or address.

 

(d)           If the Aircraft has been registered in a country other than the United States pursuant to Section 4.02(e) of the Trust Indenture, Owner will furnish to Mortgagee annually after such registration, commencing with the calendar year after such registration is effected, an opinion of special counsel reasonably satisfactory to Mortgagee stating that, in the opinion of such counsel, either that (i) such action has been taken with respect to the recording, filing, rerecording and refiling of the Operative Agreements and any supplements and amendments thereto as is necessary to establish, perfect and protect the Lien created by the Trust Indenture, reciting the details of such actions, or (ii) no such action is necessary to maintain the perfection of such Lien.

 

	
  

	
6.1.4

	
Securities Laws

 

Neither Owner nor any person authorized to act on its behalf will directly or indirectly offer any beneficial interest or Security relating to the ownership of the Aircraft or any interest in any of the Equipment Notes or any other interest in or security under the Trust Indenture, for sale to, or solicit any offer to acquire any such interest or security from, or sell any such interest or security to, any person in violation of the Securities Act or applicable state or foreign securities Laws.

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6.1.5.

	
Notice of Lease

 

Owner shall give to Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business, a copy of any notice regarding a lease of the Aircraft required to be given to the Mortgagee pursuant to clause (w) of the first sentence of the penultimate paragraph of Section 4.02(b) of the Trust Indenture, at the time such notice is given to Mortgagee, if at such time Standard & Poor's is then rating the Pass Through Certificates.

 

	
  

	
6.2

	
Covenants of WTNA

 

WTNA in its individual capacity or as Mortgagee, each Applicable Pass Through Trustee or Subordination Agent, as the case may be, covenants and agrees with Owner as follows:

 

	
  

	
6.2.1

	
Liens

 

WTNA (a) will not directly or indirectly create, incur, assume or suffer to exist any Lien attributable to it on or with respect to all or any part of the Collateral or the Aircraft, (b) will, at its own cost and expense, promptly take such action as may be necessary to discharge any Lien attributable to WTNA on all or any part of the Collateral or the Aircraft and (c) will personally hold harmless and indemnify Owner, each Note Holder, each of their respective Affiliates, successors and permitted assigns, and the Collateral from and against (i) any and all Expenses, (ii) any reduction in the amount payable out of the Collateral, and (iii) any interference with the possession, operation or other use of all or any part of the Aircraft, imposed on, incurred by or asserted against any of the foregoing as a consequence of any such Lien.

 

	
  

	
6.2.2

	
Securities Act

 

WTNA in its individual capacity or as Mortgagee, an Applicable Pass Through Trustee or Subordination Agent, will not offer any beneficial interest or Security relating to the ownership of the Aircraft or any interest in the Collateral, or any of the Equipment Notes or any other interest in or security under the Trust Indenture for sale to, or solicit any offer to acquire any such interest or security from, or sell any such interest or security to, any Person in violation of the Securities Act or applicable state or foreign securities Laws, provided that the foregoing shall not be deemed to impose on WTNA any responsibility with respect to any such offer, sale or solicitation by any other party hereto.

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6.2.3

	
Performance of Agreements

 

WTNA, in its individual capacity and as Mortgagee, an Applicable Pass Through Trustee or Subordination Agent, as the case may be, shall perform its obligations under the Pass Through Trustee Agreements and the Operative Agreements in accordance with the terms thereof.

 

	
  

	
6.2.4

	
Withholding Taxes

 

WTNA shall indemnify (on an after-tax basis) and hold harmless Owner against any United States withholding taxes (and related interest, penalties and additions to tax) as a result of the failure by WTNA to withhold on payments to any Note Holder if such Note Holder failed to provide to Mortgagee necessary certificates or forms to substantiate the right to exemption from such withholding tax.

 

	
  

	
6.3

	
Covenants of Note Holders

 

Each Note Holder (including Subordination Agent) as to itself only covenants and agrees with Owner and Mortgagee as follows:

 

	
  

	
6.3.1

	
Withholding Taxes

 

Such Note Holder (if it is a Non-U.S. Person) agrees to indemnify (on an after-tax basis) and hold harmless Owner and Mortgagee against any United States withholding taxes (and related interest, penalties and additions to tax) as a result of the inaccuracy or invalidity of any certificate or form provided by such Note Holder to Mortgagee in connection with such withholding taxes.  Any amount payable hereunder shall be paid within 30 days after receipt by a Note Holder of a written demand therefor.

 

	
  

	
6.3.2

	
Transfer; Compliance

 

(a)           Such Note Holder will (i) not transfer any Equipment Note or interest therein in violation of the Securities Act or applicable state or foreign securities Law; provided, that the foregoing provisions of this section shall not be deemed to impose on such Note Holder any responsibility with respect to any such offer, sale or solicitation by any other party hereto, and (ii) perform and comply with the obligations specified to be imposed on it (as a Note Holder) under each of the Trust Indenture and the form of Equipment Note set forth in the Trust Indenture.

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(b)           Except for the transfer of the interests of each Applicable Pass Through Trustee in the Equipment Notes to the trustee of the Related Trust (as defined in each Applicable Pass Through Trust Agreement) in accordance with the related Applicable Pass Through Trust Agreement, each Note Holder will not sell, assign, convey, exchange or otherwise transfer any Equipment Note or any interest in, or represented by, any Equipment Note (it being understood that this provision is not applicable to the Pass Through Certificates) unless the proposed transferee thereof first provides Owner with both of the following:

 

                 (i)a written representation and covenant that either (a) no portion of the funds it uses to purchase, acquire and hold such Equipment Note or interest directly or indirectly constitutes, or may be deemed under the Code or ERISA or any rulings, regulations or court decisions thereunder to constitute, the assets of any Plan or (b) the transfer, and subsequent holding, of such Equipment Note or interest shall not involve or give rise to a transaction that constitutes a prohibited transaction within the meaning of Section 406 of ERISA or Section 4975(c)(1) of the Code involving Owner, a Pass Through Trustee, the Subordination Agent or the proposed transferee (other than a transaction that is exempted from the prohibitions of such sections by applicable provisions of ERISA or the Code or administrative exemptions or regulations issued thereunder); and

 

                 (ii)a written covenant that it will not transfer any Equipment Note or any interest in, or represented by, any Equipment Note unless the subsequent transferee also makes the representation described in clause (i) above and agrees to comply with this clause (ii).

 

	
  

	
6.4

	
Agreements

 

	
  

	
6.4.1

	
Quiet Enjoyment

 

Each Applicable Pass Through Trustee, Subordination Agent, each Note Holder and Mortgagee each agrees as to itself with Owner that, so long as no Event of Default shall have occurred and be continuing, such Person shall not (and shall not permit any Affiliate or other Person claiming by, through or under it to) interfere with Owner's rights in accordance with the Indenture to the quiet enjoyment, possession and use of the Aircraft.

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6.4.2

	
Consents

 

Each Pass Through Trustee, Subordination Agent and Mortgagee each covenants and agrees, for the benefit of Owner, that it shall not unreasonably withhold its consent to any consent or approval requested of it under the terms of any of the Operative Agreements which by its terms is not to be unreasonably withheld.

 

	
  

	
6.4.3

	
Insurance

 

Each Pass Through Trustee, Subordination Agent, Mortgagee and each Note Holder each agrees not to obtain or maintain insurance for its own account as permitted by Section 4.06 of the Trust Indenture if such insurance would limit or otherwise adversely affect the coverage of any insurance required to be obtained or maintained by Owner pursuant to Section 4.06 of the Trust Indenture.

 

	
  

	
6.4.4

	
Extent of Interest of Note Holders

 

A Note Holder shall not, as such, have any further interest in, or other right with respect to, the Collateral when and if the principal and Make-Whole Amount, if any, of and interest on the Equipment Note held by such Holder, and all other sums, then due and payable to such Holder hereunder and under any other Operative Agreement, shall have been paid in full.  The preceding sentence shall not limit the rights of the Related Note Holders with respect to Related Secured Obligations under the Trust Indenture, provided that a Related Note Holder shall not, as such, have any further interest in, or other right with respect to, the Collateral when and if the Related Secured Obligations attributable to the Related Equipment Note held by such Holder shall have been paid in full.

 

	
  

	
6.4.5

	
Foreign Registration

 

Each Note Holder and Mortgagee hereby agree, for the benefit of Owner but subject to the provisions of Section 4.02(b) of the Trust Indenture:

 

(a)           that Owner shall be entitled to register the Aircraft or cause the Aircraft to be registered in a country other than the United States subject to compliance with the following:

 

                 (i)each of the following requirements is satisfied:

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(A)

	
no Special Default or Event of Default shall have occurred and be continuing at the time of such registration;

 

	
  

	
(B)

	
such proposed change of registration is made in connection with a Permitted Lease to a Permitted Air Carrier; and

 

	
  

	
(C)

	
such country is a country with which the United States then maintains normal diplomatic relations or, if such country is Taiwan, the United States then maintains diplomatic relations at least as good as those in effect on the Closing Date; and

 

                 (ii)the Mortgagee shall have received an opinion of counsel (subject to customary exceptions) reasonably satisfactory to the Mortgagee addressed to Mortgagee to the effect that:

 

(A)such country would recognize the Owner's ownership interest in the Aircraft;

 

(B)after giving effect to such change in registration, the Lien of the Trust Indenture on the Owner's right, title and interest in and to the Aircraft shall continue as a valid and duly perfected first priority security interest and International Interest and all filing, recording or other action necessary to protect the same shall have been accomplished (or, if such opinion cannot be given at the time of such proposed change in registration because such change in registration is not yet effective, (1) the opinion shall detail what filing, recording or other action is necessary and (2) the Mortgagee shall have received a certificate from Owner that all possible preparations to accomplish such filing, recording and other action shall have been done, and such filing, recording and other action shall be accomplished and a supplemental opinion to that effect shall be delivered to the Mortgagee on or prior to the effective date of such change in registration);

 

(C)unless Owner or the Permitted Air Carrier shall have agreed to provide insurance covering the risk of requisition of use of the Aircraft by the 

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government of such country (so long as the Aircraft is registered under the laws of such country), the laws of such country require fair compensation by the government of such country payable in currency freely convertible into Dollars and freely removable from such country (without license or permit, unless Owner prior to such proposed reregistration has obtained such license or permit) for the taking or requisition by such government of such use; and

 

(D)it is not necessary, solely as a consequence of such change in registration and without giving effect to any other activity of the Mortgagee (or any Affiliate of the Mortgagee), for the Mortgagee to qualify to do business in such jurisdiction as a result of such reregistration in order to exercise any rights or remedies with respect to the Aircraft.

 

(b)           In addition, as a condition precedent to any change in registration Owner shall have given to  Mortgagee assurances reasonably satisfactory to Mortgagee:

 

	
  

	
(i)

	
to the effect that the provisions of Section 4.06 of the Trust Indenture have been complied with after giving effect to such change of registration;

 

	
  

	
(ii)

	
of the payment by Owner of all reasonable out-of-pocket expenses of each Note Holder and Mortgagee in connection with such change of registry, including, without limitation (1) the reasonable fees and disbursements of counsel to Mortgagee, (2) any filing or recording fees, Taxes or similar payments incurred in connection with the change of registration of the Aircraft and the creation and perfection of the security interest therein in favor of Mortgagee for the benefit of Note Holders, and (3) all costs and expenses incurred in connection with any filings necessary to continue in the United States the perfection of the security interest in the Aircraft in favor of Mortgagee for the benefit of Note Holders; and

 

	
  

	
(iii)

	
to the effect that the tax and other indemnities in favor of each person named as an indemnitee under any other Operative Agreement afford each such person substantially the same protection as

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provided prior to such change of registration (or Owner shall have agreed upon additional indemnities that, together with such original indemnities, in the reasonable judgment of Mortgagee, afford such protection).

 

	
  

	
6.4.6

	
Interest in Certain Engines

 

Each Note Holder and Mortgagee agree, for the benefit of each of the lessor, conditional seller, mortgagee or secured party of any airframe or engine leased to, or purchased by, Owner or any Permitted Lessee subject to a lease, conditional sale, trust indenture or other security agreement that it will not acquire or claim, as against such lessor, conditional seller, mortgagee or secured party, any right, title or interest in any engine as the result of such engine being installed on the Airframe at any time while such engine is subject to such lease, conditional sale, trust indenture or other security agreement and owned by such lessor or conditional seller or subject to a trust indenture or security interest in favor of such mortgagee or secured party.

 

	
SECTION 7.

	
CONFIDENTIALITY

 

Owner, Note Holders and Mortgagee shall keep the Participation Agreement and Annex B to the Trust Indenture confidential and shall not disclose, or cause to be disclosed, the same to any Person, except (A) to prospective and permitted transferees of Owner's, a Note Holder's, the Liquidity Provider's, Mortgagee's or other Indenture Indemnitee's interest or their respective counsel or special counsel, independent insurance brokers, auditors, or other agents who agree to hold such information confidential, (B) to Owner's, a Note Holder's, the Liquidity Provider's, a Pass Through Trustee's, Mortgagee's or other Indenture Indemnitee's counsel or special counsel, independent insurance brokers, auditors, or other agents, Affiliates or investors who agree to hold such information confidential, (C) as may be required by any statute, court or administrative order or decree, legal process or governmental ruling or regulation, including those of any applicable insurance regulatory bodies (including, without limitation, the National Association of Insurance Commissioners), federal or state banking examiners, Internal Revenue Service auditors or any stock exchange, (D) with respect to a Note Holder or any Pass Through Trustee, to a nationally recognized rating agency for the purpose of obtaining a rating on the Equipment Notes or the Pass Through Certificates or to support an NAIC rating for the Equipment Notes or (E) such other Persons as are reasonably

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deemed necessary by the disclosing party in order to protect the interests of such party or for the purposes of enforcing such documents by such party; provided, that any and all disclosures permitted by clauses (C), (D), or (E) above shall be made only to the extent necessary to meet the specific requirements or needs of the Persons making such disclosures.

 

	
SECTION 8.

	
INDEMNIFICATION AND EXPENSES

 

	
  

	
8.1

	
General Indemnity

 

	
  

	
8.1.1

	
Indemnity

 

Whether or not any of the transactions contemplated hereby are consummated, Owner shall indemnify, protect, defend and hold harmless each Indemnitee from, against and in respect of, and shall pay on a net after-tax basis, any and all Expenses of any kind or nature whatsoever that may be imposed on, incurred by or asserted against any Indemnitee, relating to, resulting from, or arising out of or in connection with, any one or more of the following:

 

(a)           The Operative Agreements, the Pass Through Agreements, or the enforcement of any of the terms of any of the Operative Agreements or the Pass Through Agreements;

 

(b)           The Aircraft, the Airframe, any Engine or any Part, including, without limitation, with respect thereto, (i) the manufacture, design, purchase, acceptance, nonacceptance or rejection, ownership, registration, reregistration, deregistration, delivery, nondelivery, lease, sublease, assignment, possession, use or non-use, operation, maintenance, testing, repair, overhaul, condition, alteration, modification, addition, improvement, storage, airworthiness, replacement, repair, sale, substitution, return, abandonment, redelivery or other disposition of the Aircraft, any Engine or any Part, (ii) any claim or penalty arising out of violations of applicable Laws by Owner (or any Permitted Lessee), (iii) tort liability, whether or not arising out of the negligence of any Indemnitee (whether active, passive or imputed), (iv) death or property damage of passengers, shippers or others, (v) environmental control, noise or pollution and (vi) any Liens in respect of the Aircraft, any Engine or any Part;

 

(c)           The offer, sale, or delivery of any Equipment Notes, Pass Through Certificates or any interest therein or represented thereby; and

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(d)           Any breach of or failure to perform or observe, or any other noncompliance with, any covenant or agreement or other obligation to be performed by Owner under any Operative Agreement to which it is party or any Pass Through Agreement or the falsity of any representation or warranty of Owner in any Operative Agreement to which it is party or any Pass Through Agreement.

 

	
  

	
8.1.2

	
Exceptions

 

Notwithstanding anything contained in Section 8.1.1, Owner shall not be required to indemnify, protect, defend and hold harmless any Indemnitee pursuant to Section 8.1.1 in respect of any Expense of such Indemnitee:

 

(a)           For any Taxes or a loss of Tax benefit, whether or not Owner is required to indemnify therefor pursuant to Section 8.3;

 

(b)           Except to the extent attributable to acts or events occurring prior thereto, acts or events (other than acts or events related to the performance by Owner of its obligations pursuant to the terms of the Operative Agreements) that occur after the Trust Indenture is required to be terminated in accordance with Section 11.01 of the Trust Indenture; provided, that nothing in this clause (b) shall be deemed to exclude or limit any claim that any Indemnitee may have under applicable Law by reason of an Event of Default or for damages from Owner for breach of Owner's covenants contained in the Operative Agreements or to release Owner from any of its obligations under the Operative Agreements that expressly provide for performance after termination of the Trust Indenture;

 

(c)           To the extent attributable to any Transfer (voluntary or involuntary) by or on behalf of such Indemnitee of any Equipment Note or interest therein, except for out-of-pocket costs and expenses incurred as a result of any such Transfer pursuant to the exercise of remedies under any Operative Agreement;

 

(d)           [Intentionally Omitted]

 

(e)           To the extent attributable to the gross negligence or willful misconduct of such Indemnitee or any related Indemnitee (as defined below) (other than gross negligence or willful misconduct imputed to such person by reason of its interest in the Aircraft or any Operative Agreement);

 

(f)           [Intentionally Omitted]

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(g)           To the extent attributable to the incorrectness or breach of any representation or warranty of such Indemnitee or any related Indemnitee contained in or made pursuant to any Operative Agreement or any Pass Through Agreement;

 

(h)           To the extent attributable to the failure by such Indemnitee or any related Indemnitee to perform or observe any agreement, covenant or condition on its part to be performed or observed in any Operative Agreement or any Pass Through Agreement;

 

(i)           To the extent attributable to the offer or sale by such Indemnitee or any related Indemnitee of any interest in the Aircraft, the Equipment Notes, the Pass Through Certificates, or any similar interest, in violation of the Securities Act or other applicable federal, state or foreign securities Laws (other than any thereof caused by acts or omissions of Owner);

 

(j)           (i) With respect to any Indemnitee (other than Mortgagee), to the extent attributable to the failure of the Mortgagee to distribute funds received and distributable by it in accordance with the Trust Indenture, (ii) with respect to any Indemnitee (other than the Subordination Agent), to the extent attributable to the failure of the Subordination Agent to distribute funds received and distributable by it in accordance with the Intercreditor Agreement, (iii) with respect to any Indemnitee (other than the Pass Through Trustees), to the extent attributable to the failure of a Pass Through Trustee to distribute funds received and distributable by it in accordance with the Pass Through Trust Agreements, (iv) with respect to any Indemnitee (other than the Escrow Agent), to the extent attributable to the failure of the Escrow Agent to pay funds received and payable by it in accordance with any Escrow Agreement, (v) with respect to any Indemnitee (other than the Paying Agent), to the extent attributable to the failure of the Paying Agent to distribute funds received and distributable by it in accordance with any Escrow Agreement, (vi) to the extent attributable to the failure of the Depositary to pay funds payable by it in accordance with any Deposit Agreement, (vii) with respect to Mortgagee, to the extent attributable to the negligence or willful misconduct of Mortgagee in the distribution of funds received and distributable by it in accordance with the Trust Indenture, (viii) with respect to the Subordination Agent, to the extent attributable to the negligence or willful misconduct of the Subordination Agent in the distribution of funds received and distributable by it in accordance with the Intercreditor Agreement, (ix) with respect to the Pass Through Trustees, to the extent attributable to the negligence or willful misconduct of a Pass Through Trustee in the distribution of funds received and distributable by it in accordance with the Pass Through Trust Agreements, (x) with respect to the Escrow Agent, to the extent attributable to the

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negligence or willful misconduct of the Escrow Agent in the payment of funds received and payable by it in accordance with any Escrow Agreement and (xi) with respect to the Paying Agent, to the extent attributable to the negligence or willful misconduct of the Paying Agent in the distribution of funds received and distributable by it in accordance with any Escrow Agreement.

 

(k)           Other than during the continuation of an Event of Default, to the extent attributable to the authorization or giving or withholding of any future amendments, supplements, waivers or consents with respect to any Operative Agreement or Pass Through Agreement other than such as have been requested by Owner or as are required by or made pursuant to the terms of the Operative Agreements or Pass Through Agreements (unless such requirement results from the actions of an Indemnitee not required by or made pursuant to the Operative Agreements or the Pass Through Agreements);

 

(l)           To the extent attributable to any amount which any Indemnitee expressly agrees to pay or such Indemnitee expressly agrees shall not be paid by or be reimbursed by Owner;

 

(m)           To the extent that it is an ordinary and usual operating or overhead expense;

 

(n)           [Intentionally Omitted]

 

(o)           For any Lien attributable to such Indemnitee or any related Indemnitee;

 

(p)           If another provision of an Operative Agreement or a Pass Through Agreement specifies the extent of Owner's responsibility or obligation with respect to such Expense, to the extent arising from other than failure of Owner to comply with such specified responsibility or obligation; or

 

(q)           To the extent incurred by or asserted against an Indemnitee as a result of any "prohibited transaction", within the meaning of Section 406 of ERISA or Section 4975(c)(1) of the Code.

 

For purposes of this Section 8.1, a Person shall be considered a "related" Indemnitee with respect to an Indemnitee

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if such Person is an Affiliate or employer of such Indemnitee, a director, officer, employee, agent, or servant of such Indemnitee or any such Affiliate or a successor or permitted assignee of any of the foregoing.

 

	
  

	
8.1.3

	
Separate Agreement

 

This Agreement constitutes a separate agreement with respect to each Indemnitee and is enforceable directly by each such Indemnitee.

 

	
  

	
8.1.4

	
Notice

 

If a claim for any Expense that an Indemnitee shall be indemnified against under this Section 8.1 is made, such Indemnitee shall give prompt written notice thereof to Owner.  Notwithstanding the foregoing, the failure of any Indemnitee to notify Owner as provided in this Section 8.1.4, or in Section 8.1.5, shall not release Owner from any of its obligations to indemnify such Indemnitee hereunder, except to the extent that such failure results in an additional Expense to Owner (in which event Owner shall not be responsible for such additional expense) or materially impairs Owner's ability to contest such claim.

 

	
  

	
8.1.5

	
Notice of Proceedings; Defense of Claims; Limitations

 

(a)           In case any action, suit or proceeding shall be brought against any Indemnitee for which Owner is responsible under this Section 8.1, such Indemnitee shall notify Owner of the commencement thereof and Owner may, at its expense, participate in and to the extent that it shall wish (subject to the provisions of the following paragraph), assume and control the defense thereof and, subject to Section 8.1.5(c), settle or compromise the same.

 

(b)           Owner or its insurer(s) shall have the right, at its or their expense, to investigate or, if Owner or its insurer(s) shall agree not to dispute liability to the Indemnitee giving notice of such action, suit or proceeding under this Section 8.1.5 for indemnification hereunder or under any insurance policies pursuant to which coverage is sought, control the defense of, any action, suit or proceeding, relating to any Expense for which indemnification is sought pursuant to this Section 8.1, and each Indemnitee shall cooperate with Owner or its insurer(s) with respect thereto; provided, that Owner shall not be entitled to control the defense of any such action, suit,

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proceeding or compromise any such Expense during the continuance of any Event of Default.  In connection with any such action, suit or proceeding being controlled by Owner, such Indemnitee shall have the right to participate therein, at its sole cost and expense, with counsel reasonably satisfactory to Owner; provided, that such Indemnitee's participation does not, in the reasonable opinion of the independent counsel appointed by the Owner or its insurers to conduct such proceedings, interfere with the defense of such case.

 

(c)           In no event shall any Indemnitee enter into a settlement or other compromise with respect to any Expense without the prior written consent of Owner, which consent shall not be unreasonably withheld or delayed, unless such Indemnitee waives its right to be indemnified with respect to such Expense under this Section 8.1.

 

(d)           In the case of any Expense indemnified by the Owner hereunder which is covered by a policy of insurance maintained by Owner pursuant to Section 4.06 of the Indenture, at Owner's expense, each Indemnitee agrees to cooperate with the insurers in the exercise of their rights to investigate, defend or compromise such Expense as may be required to retain the benefits of such insurance with respect to such Expense.

 

(e)           If an Indemnitee is not a party to this Agreement, Owner may require such Indemnitee to agree in writing to the terms of this Section 8 and Section 12.8 prior to making any payment to such Indemnitee under this Section 8.

 

(f)           Nothing contained in this Section 8.1.5 shall be deemed to require an Indemnitee to contest any Expense or to assume responsibility for or control of any judicial proceeding with respect thereto.

 

	
  

	
8.1.6

	
Information

 

Owner will provide the relevant Indemnitee with such information not within the control of such Indemnitee, as is in Owner's control or is reasonably available to Owner, which such Indemnitee may reasonably request and will otherwise cooperate with such Indemnitee so as to enable such Indemnitee to fulfill its obligations under Section 8.1.5.  The Indemnitee shall supply Owner with such information not within the control of Owner, as is in such Indemnitee's control or is reasonably available to such Indemnitee, which Owner may reasonably request to control or participate in any proceeding to the extent permitted by Section 8.1.5.

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8.1.7

	
Effect of Other Indemnities; Subrogation; Further Assurances

 

Upon the payment in full by Owner of any indemnity provided for under this Agreement, Owner, without any further action and to the full extent permitted by Law, will be subrogated to all rights and remedies of the person indemnified (other than with respect to any of such Indemnitee's insurance policies or in connection with any indemnity claim such Indemnitee may have under Section 6.03 or 8.01 of the Trust Indenture) in respect of the matter as to which such indemnity was paid.  Each Indemnitee will give such further assurances or agreements and cooperate with Owner to permit Owner to pursue such claims, if any, to the extent reasonably requested by Owner and at Owner's expense.

 

	
  

	
8.1.8

	
Refunds

 

If an Indemnitee receives any refund, in whole or in part, with respect to any Expense paid by Owner hereunder, it will promptly pay the amount refunded (but not an amount in excess of the amount Owner or any of its insurers has paid in respect of such Expense) over to Owner unless an Event of Default shall have occurred and be continuing, in which case such amounts shall be paid over to Mortgagee to hold as security for Owner's obligations under the Operative Agreements or, if requested by Owner, applied to satisfy such obligations.

 

	
  

	
8.2

	
Expenses

 

	
  

	
8.2.1

	
Invoices and Payment

 

The Mortgagee, the Applicable Pass Through Trustees and the Subordination Agent shall promptly submit to Owner for its prompt approval (which shall not be unreasonably withheld) copies of invoices in reasonable detail of the Transaction Expenses for which it is responsible for providing information as they are received (but in no event later than the 90th day after the Closing Date). If so submitted and approved, the Owner agrees promptly, but in any event no later than the 105th day after the Closing Date, to pay Transaction Expenses.

 

	
  

	
8.2.2

	
Payment of Other Expenses

 

Owner shall pay (i) the ongoing fees and expenses of Mortgagee, and (ii) all reasonable out-of-pocket costs and expenses (including the reasonable fees and disbursements of counsel) incurred by Mortgagee or any Note Holder attributable

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to any waiver, amendment or modification of any Operative Agreement to the extent requested by Owner.

 

	
  

	
8.3

	
General Tax Indemnity

 

	
  

	
8.3.1

	
General

 

Except as provided in Section 8.3.2, Owner agrees that each payment paid by Owner under the Equipment Notes, and any other payment or indemnity paid by Owner to a Tax Indemnitee under any Operative Agreement, shall be free of all withholdings or deductions with respect to Taxes of any nature (other than U.S. federal, state or local withholding taxes on, based on or measured by gross or net income, including, without limitation, any such taxes imposed under FATCA), and in the event that Owner shall be required by applicable law to make any such withholding or deduction for any such payment (x) Owner shall make all such withholdings or deductions, (y) the amount payable by Owner shall be increased so that after making all required withholdings or deductions such Tax Indemnitee receives the same amount that it would have received had no such withholdings or deductions been made, and (z) Owner shall pay the full amount withheld or deducted to the relevant Taxing Authority in accordance with applicable law.  Except as provided in Section 8.3.2 and whether or not any of the transactions contemplated hereby are consummated, Owner shall pay, indemnify, protect, defend and hold each Tax Indemnitee harmless from all Taxes imposed by any Taxing Authority that may from time to time be imposed on or asserted against any Tax Indemnitee or the Aircraft, the Airframe, any Engine or any Part or any interest in any of the foregoing (whether or not indemnified against by any other Person), upon or with respect to the Operative Agreements or the transactions or payments contemplated thereby, including but not limited to any Tax imposed upon or with respect to (x) the Aircraft, the Airframe, any Engine, any Part, any Operative Agreement (including without limitation any Equipment Notes) or any data or any other thing delivered or to be delivered under an Operative Agreement, (y) the purchase, manufacture, acceptance, rejection, sale, transfer of title, return, ownership, mortgaging, delivery, transport, charter, rental, lease, re-lease, sublease, assignment, possession, repossession, presence, use, condition, storage, preparation, maintenance, modification, alteration, improvement, operation, registration, transfer or change of registration, reregistration, repair, replacement, overhaul, location, control, the imposition of any Lien, financing, refinancing requested by the Owner, abandonment or other disposition of the Aircraft, the Airframe, any Engine, any Part, any data or any

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other thing delivered or to be delivered under an Operative Agreement or (z) interest, fees or any other income, proceeds, receipts or earnings, whether actual or deemed, arising upon, in connection with, or in respect of, any of the Operative Agreements (including the property or income or other proceeds with respect to property held as part of the Collateral) or the transactions contemplated thereby.

 

	
  

	
8.3.2

	
Certain Exceptions

 

The provisions of Section 8.3.1 shall not apply to, and Owner shall have no liability hereunder for, Taxes:

 

(a)           imposed on a Tax Indemnitee by the federal government of the United States or any Taxing Authority or governmental subdivision of the United States or therein (including any state or local Taxing Authority) (i) on, based on, or measured by, gross or net income or gross or net receipts, including capital gains taxes, excess profits taxes, minimum taxes from tax preferences, alternative minimum taxes, branch profits taxes, accumulated earnings taxes, personal holding company taxes, succession taxes and estate taxes, and any withholding taxes on, based on or measured by gross or net income or receipts, including, without limitation, any such taxes imposed under FATCA or (ii) on, or with respect to, or measured by, capital or net worth or in the nature of a franchise tax or a tax for the privilege of doing business (other than, in the case of clause (i) or (ii), sales, use, license or property Taxes);

 

(b)           imposed on a Tax Indemnitee by any Taxing Authority or governmental subdivision thereof or therein outside of the United States (including any Taxing Authority in or of a territory, possession or commonwealth of the United States) (i) on, based on, or measured by, gross or net income or gross or net receipts, including capital gains taxes, excess profits taxes, minimum taxes from tax preferences, alternative minimum taxes, branch profits taxes, accumulated earnings taxes, personal holding company taxes, succession taxes and estate taxes, and any withholding taxes on, based on or measured by gross or net income or receipts or (ii) on, or with respect to, or measured by, capital or net worth or in the nature of a franchise tax or a tax for the privilege of doing business (other than, in the case of clause (i) or (ii), (A) sales, use, license or property Taxes, or (B) any Taxes imposed by any Taxing Authority (other than a Taxing Authority within whose jurisdiction such Tax Indemnitee is incorporated or organized or maintains its principal place of business) if such Tax Indemnitee would not have been subject to Taxes of such type by

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such jurisdiction but for (I) the location, use or operation of the Aircraft, the Airframe, any Engine or any Part thereof by an Owner Person within the jurisdiction of the Taxing Authority imposing such Tax,  or (II) the activities of any Owner Person in such jurisdiction, including, but not limited to, use of any other aircraft by Owner in such jurisdiction, (III) the status of any Owner Person as a foreign entity or as an entity owned in whole or in part by foreign persons, (IV) Owner having made (or having been deemed to have made) payments to such Tax Indemnitee from the relevant jurisdiction or (V) in the case of the Pass Through Trustees, the Note Holders or any related Tax Indemnitee, the Owner being incorporated or organized or maintaining a place of business or conducting activities in such jurisdiction);

 

(c)           on, or with respect to, or measured by, any trustee fees, commissions or compensation received by the Pass Through Trustee, Subordination Agent or Mortgagee;

 

(d)           that are being contested as provided in Section 8.3.4 hereof;

 

(e)           imposed on any Tax Indemnitee to the extent that such Taxes result from the gross negligence or willful misconduct of such Tax Indemnitee or any Affiliate thereof;

 

(f)           imposed on or with respect to a Tax Indemnitee (including the transferee in those cases in which the Tax on transfer is imposed on, or is collected from, the transferee) as a result of a transfer or other disposition (including a deemed transfer or disposition) by such Tax Indemnitee or a related Tax Indemnitee of any interest in the Aircraft, the Airframe, any Engine or any Part, any interest arising under the Operative Agreements or any Equipment Note or as a result of a transfer or disposition (including a deemed transfer or disposition) of any interest in a Tax Indemnitee (other than (A) a substitution or replacement of the Aircraft, the Airframe, any Engine or any Part by an Owner Person that is treated for Tax purposes as a transfer or disposition, or (B) a transfer pursuant to an exercise of remedies upon an Event of Default that shall have occurred and have been continuing);

 

(g)           Taxes in excess of those that would have been imposed had there not been a transfer or other disposition by or to such Tax Indemnitee or a related Tax Indemnitee described in paragraph (f) above;

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(h)           consisting of any interest, penalties or additions to tax imposed on a Tax Indemnitee as a result of (in whole or in part) failure of such Tax Indemnitee or a related Tax Indemnitee to file any return properly and timely, unless such failure shall be caused by the failure of Owner to fulfill its obligations, if any, under Section 8.3.6 with respect to such return;

 

(i)           resulting from, or that would not have been imposed but for, any Liens arising as a result of claims against, or acts or omissions of, or otherwise attributable to such Tax Indemnitee or a related Tax Indemnitee that the Owner is not obligated to discharge under the Operative Agreements;

 

(j)           imposed on any Tax Indemnitee as a result of the breach by such Tax Indemnitee or a related Tax Indemnitee of any covenant of such Tax Indemnitee or any Affiliate thereof contained in any Operative Agreement or the inaccuracy of any representation or warranty by such Tax Indemnitee or any Affiliate thereof in any Operative Agreement;

 

(k)           in the nature of an intangible or similar Tax (i) upon or with respect to the value or principal amount of the interest of any Note Holder in any Equipment Note or the loan evidenced thereby but only if such Taxes are in the nature of franchise Taxes or result from the Tax Indemnitee doing business in the taxing jurisdiction and are imposed because of the place of incorporation or the activities unrelated to the transactions contemplated by the Operative Agreements in the taxing jurisdiction of such Tax Indemnitee;

 

(l)           imposed on a Tax Indemnitee by a Taxing Authority of a jurisdiction outside the United States to the extent that such Taxes would not have been imposed but for a connection between the Tax Indemnitee or a related Tax Indemnitee and such jurisdiction imposing such Tax unrelated to the transactions contemplated by the Operative Agreements; or

 

(m)           Taxes relating to ERISA or Section 4975 of the Code.

 

For purposes hereof, a Tax Indemnitee and any other Tax Indemnitees that are successors, assigns, agents, servants or Affiliates of such Tax Indemnitee shall be related Tax Indemnitees.

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8.3.3

	
Payment

 

(a)           Owner's indemnity obligation to a Tax Indemnitee under this Section 8.3 shall equal the amount which, after taking into account any Tax imposed upon the receipt or accrual of the amounts payable under this Section 8.3 and any tax benefits actually recognized by such Tax Indemnitee as a result of the indemnifiable Tax (including, without limitation, any benefits recognized as a result of an indemnifiable Tax being utilized by such Tax Indemnitee as a credit against Taxes not indemnifiable under this Section 8.3), shall equal the amount of the Tax indemnifiable under this Section 8.3.

 

(b)           At Owner's request, the computation of the amount of any indemnity payment owed by Owner or any amount owed by a Tax Indemnitee to Owner pursuant to this Section 8.3 shall be verified and certified by an independent public accounting firm selected by such Tax Indemnitee and reasonably satisfactory to Owner.  Such verification shall be binding.  The costs of such verification (including the fee of such public accounting firm) shall be borne by Owner unless such verification shall result in an adjustment in Owner's favor of 5% or more of the net present value of the payment as computed by such Tax Indemnitee, in which case the costs shall be paid by such Tax Indemnitee.

 

(c)           Each Tax Indemnitee shall provide Owner with such certifications, information and documentation as shall be in such Tax Indemnitee's possession and as shall be reasonably requested by Owner to minimize any indemnity payment pursuant to this Section 8.3; provided, that notwithstanding anything to the contrary contained herein, no Tax Indemnitee shall be required to provide Owner with any Tax returns.

 

(d)           Each Tax Indemnitee shall promptly forward to Owner any written notice, bill or advice received by it from any Taxing Authority concerning any Tax for which it seeks indemnification under this Section 8.3.  Owner shall pay any amount for which it is liable pursuant to this Section 8.3 directly to the appropriate Taxing Authority if legally permissible or upon demand of a Tax Indemnitee, to such Tax Indemnitee within 30 days of such demand (or, if a contest occurs in accordance with Section 8.3.4, within 30 days after a Final Determination (as defined below)), but in no event more than one Business Day prior to the date the Tax to which such amount payable hereunder relates is due.  If requested by a Tax Indemnitee in writing, Owner shall furnish to the appropriate Tax Indemnitee the original or a certified copy of a receipt for Owner's payment of any Tax paid by Owner or such other evidence

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of payment of such Tax as is acceptable to such Tax Indemnitee.  Owner shall also furnish promptly upon written request such data as any Tax Indemnitee may reasonably require to enable such Tax Indemnitee to comply with the requirements of any taxing jurisdiction unless such data is not reasonably available to Owner or, unless such data is specifically requested by a Taxing Authority, is not customarily furnished by domestic air carriers under similar circumstances.  For purposes of this Section 8.3, a "Final Determination" shall mean (i) a decision, judgment, decree or other order by any court of competent jurisdiction that occurs pursuant to the provisions of Section 8.3.4, which decision, judgment, decree or other order has become final and unappealable, (ii) a closing agreement or  settlement agreement entered into in accordance with Section 8.3.4 that has become binding and is not subject to further review or appeal (absent fraud, misrepresentation, etc.), or (iii) the termination of administrative proceedings and the expiration of the time for instituting a claim in a court proceeding.

 

(e)           If any Tax Indemnitee shall actually realize a tax savings by reason of any Tax paid or indemnified by Owner pursuant to this Section 8.3 (whether such tax savings shall be by means of a foreign tax credit, depreciation or cost recovery deduction or otherwise) and such savings is not otherwise taken into account in computing such payment or indemnity such Tax Indemnitee shall pay to Owner an amount equal to the lesser of (i) the amount of such tax savings, plus any additional tax savings recognized as the result of any payment made pursuant to this sentence, when, as, if, and to the extent, realized or (ii) the amount of all payments pursuant to this Section 8.3 by Owner to such Tax Indemnitee (less any payments previously made by such Tax Indemnitee to Owner pursuant to this Section 8.3.3 (e)) (and the excess, if any, of the amount described in clause (i) over the amount described in clause (ii) shall be carried forward and applied to reduce pro tanto any subsequent obligations of Owner to make payments to such Tax Indemnitee pursuant to this Section 8.3); provided, that such Tax Indemnitee shall not be required to make any payment pursuant to this sentence so long as a Lease Event of Default of a monetary nature has occurred and is continuing.  If a tax benefit is later disallowed or denied, the disallowance or denial shall be treated as a Tax indemnifiable under Section 8.3.1 without regard to the provisions of Section 8.3.2 (other than Section 8.3.2 (f)).  Each such Tax Indemnitee shall in good faith use reasonable efforts in filing its tax returns and in dealing with Taxing Authorities to seek and claim any such tax benefit.

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8.3.4

	
Contest

 

(a)           If a written claim is made against a Tax Indemnitee for Taxes with respect to which Owner could be liable for payment or indemnity hereunder, or if a Tax Indemnitee makes a determination that a Tax is due for which Owner could have an indemnity obligation hereunder, such Tax Indemnitee shall promptly give Owner notice in writing of such claim (provided, that failure to so notify Owner shall not relieve Owner of its indemnity obligations hereunder unless such failure to notify effectively forecloses Owner's rights to require a contest of such claim) and shall take no action with respect to such claim without the prior written consent of Owner for 30 days following the receipt of such notice by Owner; provided, that, in the case of a claim made against a Tax Indemnitee, if such Tax Indemnitee shall be required by law to take action prior to the end of such 30-day period, such Tax Indemnitee shall, in such notice to Owner, so inform Owner, and such Tax Indemnitee shall take no action for as long as it is legally able to do so (it being understood that a Tax Indemnitee shall be entitled to pay the Tax claimed and sue for a refund prior to the end of such 30-day period if (i)(A) the failure to so pay the Tax would result in substantial penalties (unless immediately reimbursed by Owner) and the act of paying the Tax would not materially prejudice the right to contest or (B) the failure to so pay would result in criminal penalties and (ii) such Tax Indemnitee shall take any action so required in connection with so paying the Tax in a manner that is the least prejudicial to the pursuit of the contest).  In addition, such Tax Indemnitee shall (provided, that Owner shall have agreed to keep such information confidential other than to the extent necessary in order to contest the claim) furnish Owner with copies of any requests for information from any Taxing Authority relating to such Taxes with respect to which Owner may be required to indemnify hereunder.  If requested by Owner in writing within 30 days after its receipt of such notice, such Tax Indemnitee shall, at the expense of Owner (including, without limitation, all reasonable costs, expenses and reasonable attorneys' and accountants' fees and disbursements), in good faith contest (or, if permitted by applicable law, allow Owner to contest) through appropriate administrative and judicial proceedings the validity, applicability or amount of such Taxes by (I) resisting payment thereof, (II) not paying the same except under protest if protest is necessary and proper or (III) if the payment is made, using reasonable efforts to obtain a refund thereof in an appropriate administrative and/or judicial proceeding.  If requested to do so by Owner, the Tax Indemnitee shall appeal any

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adverse administrative or judicial decision, except that the Tax Indemnitee shall not be required to pursue any appeals to the United States Supreme Court.  If and to the extent the Tax Indemnitee is able to separate the contested issue or issues from other issues arising in the same administrative or judicial proceeding that are unrelated to the transactions contemplated by the Operative Agreements without, in the good faith judgment of such Tax Indemnitee, adversely affecting such Tax Indemnitee, such Tax Indemnitee shall permit Owner to control the conduct of any such proceeding and shall provide to Owner (at Owner's cost and expense) with such information or data that is in such Tax Indemnitee's control or possession that is reasonably necessary to conduct such contest. In the case of a contest controlled by a Tax Indemnitee, such Tax Indemnitee shall consult with Owner in good faith regarding the manner of contesting such claim and shall keep Owner reasonably informed regarding the progress of such contest. A Tax Indemnitee shall not fail to take any action expressly required by this Section 8.3.4 (including, without limitation, any action regarding any appeal of an adverse determination with respect to any claim) or settle or compromise any claim without the prior written consent of the Owner (except as contemplated by Section 8.3.4(b) or (c)).

 

(b)           Notwithstanding the foregoing, in no event shall a Tax Indemnitee be required to pursue any contest (or to permit Owner to pursue any contest) unless (i) Owner shall have agreed to pay such Tax Indemnitee on demand all reasonable costs and expenses incurred by such Tax Indemnitee in connection with contesting such Taxes, including, without limitation, all reasonable out of pocket costs and expenses and reasonable attorneys' and accountants' fees and disbursements, (ii) if such contest shall involve the payment of the claim, Owner shall advance the amount thereof (to the extent indemnified hereunder) plus interest, penalties and additions to tax with respect thereto that are required to be paid prior to the commencement of such contest on an interest-free after-Tax basis to such Tax Indemnitee (and such Tax Indemnitee shall promptly pay to the Owner any net realized tax benefits resulting from such advance including any tax benefits resulting from making such payment), (iii) such Tax Indemnitee shall have reasonably determined that the action to be taken will not result in any material risk of forfeiture, sale or loss of the Aircraft (unless Owner shall have made provisions to protect the interests of any such Tax Indemnitee in a manner reasonably satisfactory to such Tax Indemnitee) (provided, that such Tax Indemnitee agrees to notify Owner in writing promptly after it becomes aware of any such risk), (iv) no Lease Event of Default shall have occurred and be continuing

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unless Owner has provided security for its obligations hereunder by advancing to such Tax Indemnitee before proceeding or continuing with such contest, the amount of the Tax being contested, plus any interest and penalties and an amount estimated in good faith by such Tax Indemnitee for expenses, and (v) prior to commencing any judicial action controlled by Owner, Owner shall have acknowledged its liability for such claim hereunder, provided that Owner shall not be bound by its acknowledgment if the Final Determination articulates conclusions of law and fact that demonstrate that Owner has no liability for the contested amounts hereunder.  Notwithstanding the foregoing, if any Tax Indemnitee shall release, waive, compromise or settle any claim which may be indemnifiable by Owner pursuant to this Section 8.3 without the written permission of Owner, Owner's obligation to indemnify such Tax Indemnitee with respect to such claim (and all directly related claims and claims based on the outcome of such claim) shall terminate, subject to Section 8.3.4(c), and subject to Section 8.3.4(c), such Tax Indemnitee shall repay to Owner any amount previously paid or advanced to such Tax Indemnitee with respect to such claim, plus interest at the rate that would have been payable by the relevant Taxing Authority with respect to a refund of such Tax.

 

(c)           Notwithstanding anything contained in this Section 8.3, a Tax Indemnitee will not be required to contest the imposition of any Tax and shall be permitted to settle or compromise any claim without Owner's consent if such Tax Indemnitee (i) shall waive its right to indemnity under this Section 8.3 with respect to such Tax (and any directly related claim and any claim the outcome of which is determined based upon the outcome of such claim), (ii) shall pay to Owner any amount previously paid or advanced by Owner pursuant to this Section 8.3 with respect to such Tax, plus interest at the rate that would have been payable by the relevant Taxing Authority with respect to a refund of such Tax, and (iii) shall agree to discuss with Owner the views or positions of any relevant Taxing Authority with respect to the imposition of such Tax.

 

	
  

	
8.3.5

	
Refund

 

If any Tax Indemnitee shall receive a refund of, or be entitled to a credit against other liability for, all or any part of any Taxes paid, reimbursed or advanced by Owner, such Tax Indemnitee shall pay to Owner within 30 days of such receipt  an amount equal to the lesser of (a) the amount of such refund or credit plus any net tax benefit (taking into account any Taxes incurred by such Tax Indemnitee by reason of the receipt

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of such refund or realization of such credit) actually realized by such Tax Indemnitee as a result of any payment by such Tax Indemnitee made pursuant to this sentence (including this clause (a)) and (b) such tax payment, reimbursement or advance by Owner to such Tax Indemnitee theretofore made pursuant to this Section 8.3 (and the excess, if any, of the amount described in clause (a) over the amount described in clause (b) shall be carried forward and applied to reduce pro tanto any subsequent obligation of Owner to make payments to such Tax Indemnitee pursuant to this Section 8.3).  If, in addition to such refund or credit, such Tax Indemnitee shall receive (or be credited with) an amount representing interest on the amount of such refund or credit, such Tax Indemnitee shall pay to Owner within 30 days of such receipt or realization of such credit that proportion of such interest that shall be fairly attributable to Taxes paid, reimbursed or advanced by Owner prior to the receipt of such refund or realization of such credit.

 

	
  

	
8.3.6

	
Tax Filing

 

If any report, return or statement is required to be filed with respect to any Tax which is subject to indemnification under this Section 8.3, Owner shall timely file the same (except for any such report, return or statement which a Tax Indemnitee has timely notified the Owner in writing that such Tax Indemnitee intends to file, or for which such Tax Indemnitee is required by law to file, in its own name); provided, that the relevant Tax Indemnitee shall furnish Owner with any information in such Tax Indemnitee's possession or control that is reasonably necessary to file any such return, report or statement and is reasonably requested in writing by Owner (it being understood that the Tax Indemnitee shall not be required to furnish copies of its actual tax returns, although it may be required to furnish relevant information contained therein).  Owner shall either file such report, return or statement and send a copy of such report, return or statement to such Tax Indemnitee, or, where Owner is not permitted to file such report, return or statement, it shall notify such Tax Indemnitee of such requirement and prepare and deliver such report, return or statement to such Tax Indemnitee in a manner satisfactory to such Tax Indemnitee within a reasonable time prior to the time such report, return or statement is to be filed.

 

	
  

	
8.3.7

	
Forms

 

Each Tax Indemnitee agrees to furnish from time to time to Owner or Mortgagee or to such other person as Owner or Mortgagee may designate, at Owner's or Mortgagee's request, such duly

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executed and properly completed forms as may be necessary or appropriate in order to claim any reduction of or exemption from any withholding or other Tax imposed by any Taxing Authority, if (x) such reduction or exemption is available to such Tax Indemnitee and (y) Owner has provided such Tax Indemnitee with any information necessary to complete such form not otherwise reasonably available to such Tax Indemnitee.

 

	
  

	
8.3.8

	
Non-Parties

 

If a Tax Indemnitee is not a party to this Agreement, Owner may require the Tax Indemnitee to agree in writing, in a form reasonably acceptable to Owner, to the terms of this Section 8.3 and Section 15.8 prior to making any payment to such Tax Indemnitee under this Section 8.3.

 

	
  

	
8.3.9

	
Subrogation

 

Upon payment of any Tax by Owner pursuant to this Section 8.3 to or on behalf of a Tax Indemnitee, Owner, without any further action, shall be subrogated to any claims that such Tax Indemnitee may have relating thereto.  Such Tax Indemnitee shall cooperate with Owner (to the extent such cooperation does not result in any unreimbursed cost, expense or liability to such Tax Indemnitee) to permit Owner to pursue such claims.

 

	
  

	
8.4

	
Payments

 

Any payments made pursuant to Section 8.1 or 8.3 shall be due on the 60th day after demand therefor and shall be made directly to the relevant Indemnitee or Tax Indemnitee or to Owner, in immediately available funds at such bank or to such account as specified by such Indemnitee or Tax Indemnitee or Owner, as the case may be, in written directives to the payor, or, if no such direction shall have been given, by check of the payor payable to the order of, and mailed to, such Indemnitee or Tax Indemnitee or Owner, as the case may be, by certified mail, postage prepaid, at its address as set forth in this Agreement.

 

	
  

	
8.5

	
Interest

 

If any amount, payable by Owner, any Indemnitee or any Tax Indemnitee under Section 8.1 or 8.3 is not paid when due, the person obligated to make such payment shall pay on demand, to the extent permitted by Law, to the person entitled thereto, interest on any such amount for the period from and including the due date for such amount to but excluding the date the same is paid, at the Payment Due Rate.  Such interest shall be paid

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in the same manner as the unpaid amount in respect of which such interest is due.

 

	
  

	
8.6

	
Benefit of Indemnities

 

The obligations of Owner in respect of all indemnities, obligations, adjustments and payments in Section 8.1 or 8.3 are expressly made for the benefit of, and shall be enforceable by, the Indemnitee or Tax Indemnitee entitled thereto, notwithstanding any provision of the Trust Indenture.

 

	
SECTION 9.

	
ASSIGNMENT OR TRANSFER OF INTEREST

 

	
  

	
9.1

	
Note Holders

 

Subject to Section 6.3.2 hereof and Section 2.07 of the Trust Indenture, any Note Holder may, at any time and from time to time, Transfer or grant participations in all or any portion of the Equipment Notes and/or all or any portion of its beneficial interest in its Equipment Notes to any person (it being understood that the sale or issuance of Pass Through Certificates by a Pass Through Trustee shall not be considered a Transfer or participation); provided, that any participant in any such participations shall not have any direct rights under the Operative Agreements or any Lien on all or any part of the Aircraft or the Collateral and Owner shall not have any increased liability or obligations as a result of any such participation.  In the case of any such Transfer, the Transferee, by acceptance of Equipment Notes in connection with such Transfer, shall be deemed to be bound by (i) all of the covenants of Note Holders contained in the Operative Agreements and (ii) certain terms of the Intercreditor Agreement as specified in such Equipment Notes and/or Section 2.07 of the Trust Indenture.

 

	
  

	
9.2

	
Effect of Transfer

 

Upon any Transfer in accordance with Section 9.1 (other than any Transfer by any Note Holder, to the extent it only grants participations in Equipment Notes or in its beneficial interest therein), Transferee shall be deemed a "Note Holder," for all purposes of this Agreement and the other Operative Agreements, and the transferring Note Holder shall be released from all of its liabilities and obligations under this Agreement and any other Operative Agreements to the extent such liabilities and obligations arise after such Transfer and, in each case, to the extent such liabilities and obligations are assumed by the Transferee; provided, that such transferring Note

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Holder (and its respective Affiliates, successors, assigns, agents, servants, representatives, directors and officers) will continue to have the benefit of any rights or indemnities under any Operative Agreement vested or relating to circumstances, conditions, acts or events prior to such Transfer.

 

	
SECTION 10.

	
SECTION 1110

 

It is the intention of each of the Owner, the Note Holders (such intention being evidenced by each of their acceptance of an Equipment Note), and Mortgagee that Mortgagee shall be entitled to the benefits of Section 1110 in the event of a case under Chapter 11 of the Bankruptcy Code in which Owner is a debtor.

 

	
SECTION 11.

	
CHANGE OF CITIZENSHIP

 

	
  

	
11.1

	
Generally

 

Without prejudice to the representations, warranties or covenants regarding the status of any party hereto as a Citizen of the United States, each of Owner, WTNA and Mortgagee agrees that it will, immediately upon obtaining knowledge of any facts that would cast doubt upon its continuing status as a Citizen of the United States and promptly upon public disclosure of negotiations in respect of any transaction which would or might adversely affect such status, notify in writing all parties hereto of all relevant matters in connection therewith.

 

	
  

	
11.2

	
Mortgagee

 

Upon WTNA giving any notice in accordance with Section 11.1, Mortgagee shall (if and so long as such citizenship is necessary under the Act as in effect at such time or, if it is not necessary, if and so long as Mortgagee's citizenship could have any adverse effect on Owner, or any Note Holder), subject to Section 9.02 of the Trust Indenture, resign as Mortgagee promptly upon its ceasing to be such a citizen.

 

	
SECTION 12.

	
MISCELLANEOUS

 

	
  

	
12.1

	
Amendments

 

No provision of this Agreement may be amended, supplemented, waived, modified, discharged, terminated or otherwise varied orally, but only by an instrument in writing that specifically identifies the provision of this Agreement that it purports to amend, supplement, waive, modify, discharge,

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terminate or otherwise vary and is signed by the party against which the enforcement of the amendment, supplement, waiver, modification, discharge, termination or variance is sought.  Each such amendment, supplement, waiver, modification, discharge, termination or variance shall be effective only in the specific instance and for the specific purpose for which it is given.  No provision of this Agreement shall be varied or contradicted by oral communication, course of dealing or performance or other manner not set forth in an agreement, document or instrument in writing and signed by the party against which enforcement of the same is sought.

 

	
  

	
12.2

	
Severability

 

If any provision hereof shall be held invalid, illegal or unenforceable in any respect in any jurisdiction, then, to the extent permitted by Law, (a) all other provisions hereof shall remain in full force and effect in such jurisdiction and (b) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction.  If, however, any Law pursuant to which such provisions are held invalid, illegal or unenforceable may be waived, such Law is hereby waived by the parties hereto to the full extent permitted, to the end that this Agreement shall be deemed to be a valid and binding agreement in all respects, enforceable in accordance with its terms.

 

	
  

	
12.3

	
Survival

 

The indemnities set forth herein shall survive the delivery or return of the Aircraft, the Transfer of any interest by any Note Holder of its Equipment Note and the expiration or other termination of this Agreement or any other Operative Agreement.

 

	
  

	
12.4

	
Reproduction of Documents

 

This Agreement, all schedules and exhibits hereto and all agreements, instruments and documents relating hereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed and (b) financial statements, certificates and other information previously or hereafter furnished to any party hereto, may be reproduced by such party by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar process, and such party may destroy any original documents so reproduced.  Any such reproduction shall be as admissible in evidence as the original itself in any judicial or administrative proceeding

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(whether or not the original is in existence and whether or not such reproduction was made by such party in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction likewise is admissible in evidence.

 

	
  

	
12.5

	
Counterparts

 

This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts (or upon separate signature pages bound together into one or more counterparts), each of which when so executed shall be deemed to be an original, and all of which counterparts, taken together, shall constitute one and the same instrument.

 

	
  

	
12.6

	
No Waiver

 

No failure on the part of any party hereto to exercise, and no delay by any party hereto in exercising, any of its respective rights, powers, remedies or privileges under this Agreement or provided at Law, in equity or otherwise shall impair, prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a waiver of any breach hereof or default hereunder or as an acquiescence therein nor shall any single or partial exercise of any such right, power, remedy or privilege preclude any other or further exercise thereof by it or the exercise of any other right, power, remedy or privilege by it.  No notice to or demand on any party hereto in any case shall, unless otherwise required under this Agreement, entitle such party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of any party hereto to any other or further action in any circumstances without notice or demand.

 

	
  

	
12.7

	
Notices

 

Unless otherwise expressly permitted by the terms hereof, all notices, requests, demands, authorizations, directions, consents, waivers and other communications required or permitted to be made, given, furnished or filed hereunder shall be in writing (it being understood that the specification of a writing in certain instances and not in others does not imply an intention that a writing is not required as to the latter), shall refer specifically to this Agreement or other applicable Operative Agreement, and shall be personally delivered, sent by facsimile or telecommunication transmission (which in either case provides written confirmation to the sender of its delivery), sent by registered mail or certified mail, return

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receipt requested, postage prepaid, or sent by overnight courier service, in each case to the respective address, or facsimile number set forth for such party in Schedule 1, or to such other address, facsimile or other number as each party hereto may hereafter specify by notice to the other parties hereto.  Each such notice, request, demand, authorization, direction, consent, waiver or other communication shall be effective when received or, if made, given, furnished or filed (a) by facsimile or telecommunication transmission, when confirmed, or (b) by registered or certified mail, three Business Days after being deposited, properly addressed, with the U.S. Postal Service.

 

	
  

	
12.8

	
GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE

 

(a)           THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.  THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.

 

(b)           EACH PARTY HERETO HEREBY IRREVOCABLY AGREES, ACCEPTS AND SUBMITS ITSELF TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN THE CITY AND COUNTY OF NEW YORK AND OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN CONNECTION WITH ANY LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTER RELATING TO OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

 

(c)           EACH PARTY HERETO HEREBY IRREVOCABLY CONSENTS AND AGREES TO THE SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING MAY BE MADE BY MAILING COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, AT THE ADDRESS SET FORTH PURSUANT TO SECTION 12.7.  EACH PARTY HERETO HEREBY AGREES THAT SERVICE UPON IT, OR ANY OF ITS AGENTS, IN EACH CASE IN ACCORDANCE WITH THIS SECTION 12.8(c), SHALL CONSTITUTE VALID AND EFFECTIVE PERSONAL SERVICE UPON SUCH PARTY, AND EACH PARTY HERETO HEREBY AGREES THAT THE FAILURE OF ANY OF ITS AGENTS TO GIVE ANY NOTICE OF SUCH SERVICE TO ANY SUCH PARTY SHALL NOT IMPAIR OR AFFECT IN ANY WAY THE VALIDITY OF SUCH SERVICE ON SUCH PARTY OR ANY JUDGMENT RENDERED IN ANY ACTION OR PROCEEDING BASED THEREON.

 

(d)           EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, AND AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY LEGAL ACTION OR PROCEEDING BROUGHT HEREUNDER IN ANY OF THE ABOVE-NAMED COURTS, THAT SUCH ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT VENUE FOR THE ACTION OR PROCEEDING IS

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IMPROPER OR THAT THIS AGREEMENT OR ANY OTHER OPERATIVE AGREEMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS.

 

(e)           EACH PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN ANY COURT IN ANY JURISDICTION BASED UPON OR ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

	
  

	
12.9

	
Third-Party Beneficiary

 

This Agreement is not intended to, and shall not, provide any person not a party hereto (other than the Indenture Indemnitees (including the Related Note Holders), each of which is an intended third party beneficiary with respect to the provisions of Section 8.1 (and, in the case of the Tax Indemnitees, Section 8.3) and the persons referred to in Section 6.4.6, which are intended third party beneficiaries with respect to such Section) with any rights of any nature whatsoever against any of the parties hereto and no person not a party hereto (other than the Indenture Indemnitees (including the Related Note Holders), with respect to the provisions of Section 8.1 (and, in the case of the Tax Indemnitees, Section 8.3), and the persons referred to in Section 6.4.6 with respect to the provisions of such Section) shall have any right, power or privilege in respect of any party hereto, or have any benefit or interest, arising out of this Agreement.

 

	
  

	
12.10

	
Entire Agreement

 

This Agreement, together with the other Operative Agreements, on and as of the date hereof, constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and all prior or contemporaneous understandings or agreements, whether written or oral, among any of the parties hereto with respect to such subject matter are hereby superseded in their entireties.

 

	
  

	
12.11

	
Further Assurances

 

Each party hereto shall execute, acknowledge and deliver or shall cause to be executed, acknowledged and delivered, all such further agreements, instruments, certificates or documents, and shall do and cause to be done such further acts and things, in any case, as any other party hereto shall reasonably request in connection with the administration of, or to carry out more effectually the purposes of, or to better assure and confirm into such other party the rights and benefits to be provided under this Agreement and the other Operative Agreements.

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[This space intentionally left blank]

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IN WITNESS WHEREOF, each of the parties has caused this Participation Agreement to be duly executed and delivered as of the day and year first above written.

	  	
CONTINENTAL AIRLINES, INC.,

    Owner

	  	  
	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

	  	
WILMINGTON TRUST, NATIONAL ASSOCIATION,  

    not in its individual capacity,

    except as expressly provided

    herein, but solely as Mortgagee

	  	  
	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

	  	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

    not in its individual capacity,

    except as expressly provided

    herein, but solely as Pass

    Through Trustee under the Pass

    Through Trust Agreement for the

    Continental Airlines Pass

    Through Trust, 2012-2A-O

	  	  
	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

PARTICIPATION AGREEMENT 12-2 

SIGNATURE PAGE

  

  

BACK

	  	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

    not in its individual capacity,

    except as expressly provided

    herein, but solely as Pass

    Through Trustee under the Pass

    Through Trust Agreement for the

    Continental Airlines Pass

    Through Trust, 2012-2B-O

	  	
 

	  	  
	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

	  	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

    not in its individual capacity,

    except as expressly provided

    herein, but solely as

    Subordination Agent

	  	
 

	  	  
	  	  
	  	
By:

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

PARTICIPATION AGREEMENT 12-2 

SIGNATURE PAGE

  

  

BACK

 

	  	
SCHEDULE 1 - ACCOUNTS; ADDRESSES

PARTICIPATION AGREEMENT [___]

 

ACCOUNTS; ADDRESSES

	 	  

Account for Payments

	  

Address for Notices

	  

Continental Airlines, Inc.

	  

JPMorgan Chase Bank

New York, New York 10081

Account No.: 910-2-499291

ABA#: 021-000021

Attention: Alice Free

Voice: 318-362-8612

Facsimile: 318-362-8613

Reference: Continental [___]

	  

Continental Airlines, Inc.

77 W. Wacker Drive

Chicago, Illinois 60601

Attention: Treasurer

Facsimile: (312) 997-8333

	
 

Wilmington Trust, National Association, Mortgagee

	
 

Wilmington Trust, National Association

Wilmington, Delaware 19890-1605

Account No.: [___]

ABA#: 031-100092

Attention: Corporate Trust

 Administration

Reference: Continental [___]

	
 

Wilmington Trust, National Association

1100 North Market Street

Wilmington, Delaware  19890-1605

Attention: Corporate Trust

 Administration

Facsimile: (302) 636-4140

	
 

Wilmington Trust, National Association, as Subordination Agent

	
 

Wilmington Trust, National Association

Wilmington, Delaware 19890-1605

Account No.: 102725-000

ABA#: 031-100092

Attention: Corporate Trust

 Administration

Reference: Continental [__]

	
 

Wilmington Trust, National Association

1100 North Market Street

Wilmington, Delaware  19890-1605

Attention: Corporate Trust

 Administration

Facsimile:  (302) 636-4140

	
 

Wilmington Trust, National Association, as Pass Through Trustee for the 2012-2A Pass Through Trust

	
 

Wilmington Trust, National Association

Wilmington, Delaware 19890-1605

Account No.: 102719-000

ABA#: 031-100092

Attention: Corporate Trust

 Administration

 Reference: Continental [__]

	
 

Wilmington Trust, National Association

1100 North Market Street

Wilmington, Delaware  19890-1605

Attention:  Corporate Trust

 Administration

Facsimile:  (302) 636-4140

 

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SCHEDULE 1 - ACCOUNTS; ADDRESSES

PARTICIPATION AGREEMENT [___]

	 	  

Account for Payments

	  

Address for Notices

	
 

Wilmington Trust, National Association, as Pass Through Trustee for the 2012-2B Pass Through Trust

	
 

Wilmington Trust, National Association

Wilmington, Delaware 19890-1605

Account No.: 102720-000

ABA#: 031-100092

Attention: Corporate Trust

 Administration

 Reference: Continental [__]

	
 

Wilmington Trust, National Association

1100 North Market Street

Wilmington, Delaware  19890-1605

Attention:  Corporate Trust

 Administration

Facsimile:  (302) 636-4140

 

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SCHEDULE 2 - COMMITMENTS

PARTICIPATION AGREEMENT [___]

	  	
SCHEDULE 2 - COMMITMENTS

PARTICIPATION AGREEMENT [___]

 

COMMITMENTS

	

 

Pass Through Trustee

	

 

Series of

Equipment Notes

	

 

Dollar Amount

of Loan

	
 

2012-2A

	
 

Series A

	  
	
 

2012-2B

	
 

Series B

	  
	  	  	  
	  	  	  
	  	  	  

 

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SCHEDULE 3 - CERTAIN TERMS

PARTICIPATION AGREEMENT [___]

 

CERTAIN TERMS

 

	
Defined Term

	
Definition

	
 

Minimum Liability Insurance Amount

	
 

$[____________]1

	
 

Threshold Amount

	
 

$[________]2

_______________________________

  

1. Insert $350,000,000 for 737-924ER and $500,000,000 for 787-8.

  

2. Insert $8,000,000 for 737-924ER and $15,000,000 for 787-8.

 

PARTICIPATION AGREEMENT 12-2 

  

PAGE 1

BACK

	  	
SCHEDULE 4 - PERMITTED COUNTRIES

PARTICIPATION AGREEMENT [___]

 

PERMITTED COUNTRIES

	
Argentina

	
Luxembourg

	
Australia

	
Malaysia

	
Austria

	
Malta

	
Bahamas

	
Mexico

	
Belgium

	
Morocco

	
Bolivia

	
Netherlands

	
Brazil

	
Netherlands Antilles

	
Canada

	
New Zealand

	
Chile

	
Norway

	
Colombia

	
Panama

	
Czech Republic

	
People's Republic of China

	
Denmark

	
Peru

	
Egypt

	
Philippines

	
Ecuador

	
Poland

	
Finland

	
Portugal

	
France

	
Republic of China (Taiwan)

	
Germany

	
Russia

	
Greece

	
Singapore

	
Guatemala

	
South Africa

	
Hungary

	
South Korea

	
Iceland

	
Spain

	
India

	
Sweden

	
Indonesia

	
Switzerland

	
Ireland

	
Thailand

	
Italy

	
Trinidad and Tobago

	
Jamaica

	
Turkey

	
Japan

	
United Kingdom

	
Jordan

	
Uruguay

	
Kuwait

	
Venezuela

 

 

 

 

 

 

PAGE 1

PARTICIPATION AGREEMENT 12-2

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