Document:

EX-10.1

 

Exhibit 10.1

SECOND AMENDED AND RESTATED

FAIRSHARE VACATION PLAN USE

MANAGEMENT TRUST AGREEMENT

 

 

TABLE OF CONTENTS

FOR

SECOND AMENDED AND RESTATED

FAIRSHARE VACATION PLAN USE MANAGEMENT TRUST AGREEMENT

	 	 	 	 	 	 	 	 	 
	ARTICLE	 	PAGE
	 
	 	 	 	 	 	 	 	 
	I	 	DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	II	 	DECLARATION AND TITLE, PURPOSE AND EFFECTIVE DATE OF TRUST	 	 	6	 
	 
	 	2.01	 	Declaration and Title of the Trust	 	 	6	 
	 
	 	2.02	 	Purpose of the Trust	 	 	6	 
	 
	 	2.03	 	Governing Law	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	III	 	BENEFICIARIES	 	 	7	 
	 
	 	3.01	 	Interest of Beneficiaries	 	 	7	 
	 
	 	3.02	 	Beneficiary Acts	 	 	7	 
	 
	 	3.03	 	Assignment	 	 	7	 
	 
	 	3.04	 	Wyndham	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	IV	 	ASSETS	 	 	8	 
	 
	 	4.01	 	Trust Properties	 	 	8	 
	 
	 	4.02	 	Allocation of Points	 	 	8	 
	 
	 	4.03	 	Adjustment of Point Allocation	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	V	 	TERMINATION OF THE TRUST, WITHDRAWALS, ADDITIONS, SUBSTITUTIONS, AND TERMINATION OF POINTS	 	 	9	 
	 
	 	5.01	 	Termination	 	 	9	 
	 
	 	5.02	 	Withdrawal of Property Interests	 	 	9	 
	 
	 	5.03	 	Addition of Accommodations	 	 	11	 
	 
	 	5.04	 	Substitutions	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	VI	 	DUTIES AND OBLIGATIONS OF THE TRUSTEE	 	 	12	 
	 
	 	6.01	 	Duties and Obligations	 	 	12	 
	 
	 	6.02	 	Delegation of Duties	 	 	14	 
	 
	 	6.03	 	Plan Manager	 	 	14	 
	 
	 	6.04	 	Expenses	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	VII	 	RIGHTS AND POWERS OF THE TRUSTEE	 	 	15	 
	 
	 	7.01	 	Resignation of the Trustee	 	 	15	 
	 
	 	7.02	 	Insurance by Trustee	 	 	15	 
	 
	 	7.03	 	Compensation and Reimbursement of Trustee	 	 	15	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	Article	 	Page
	 
	 	 	 	 	 	 	 	 
	 
	 	7.04	 	General and Permissive Acts	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	VIII	 	TRUSTEE MAY NOT ENCUMBER PROPERTY	 	 	16	 
	 
	 	8.01	 	Restrictions on Encumbrances	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	IX	 	TRUSTEE LIABILITY	 	 	17	 
	 
	 	9.01	 	Reliance on Opinion of Counsel	 	 	17	 
	 
	 	9.02	 	Protection of Trustee and the Board	 	 	17	 
	 
	 	9.03	 	Payment by Trustee	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	X	 	FAIRSHARE PLUS ASSESSMENT; PROGRAM FUND	 	 	18	 
	 
	 	10.01	 	FairShare Plus Assessment	 	 	18	 
	 
	 	10.02	 	Program Fee	 	 	18	 
	 
	 	10.03	 	OA Fees	 	 	18	 
	 
	 	10.04	 	Method of Payment	 	 	19	 
	 
	 	10.05	 	Escrow Account	 	 	19	 
	 
	 	10.06	 	Special Assessments	 	 	19	 
	 
	 	10.07	 	Delinquent Payment of FairShare Plus Assessment	 	 	19	 
	 
	 	10.08	 	Withdrawal from Trust	 	 	20	 
	 
	 	10.09	 	Payment History	 	 	20	 
	 
	 	10.10	 	Member Directions Regarding OA Fees	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	XI	 	TRUST PROPERTY RESERVATIONS	 	 	20	 
	 
	 	11.01	 	Directory	 	 	20	 
	 
	 	11.02	 	Use Year	 	 	21	 
	 
	 	11.03	 	Reservations	 	 	21	 
	 
	 	11.04	 	Wait List	 	 	21	 
	 
	 	11.05	 	Rotating Priority List	 	 	21	 
	 
	 	11.06	 	The Points Credit Pool	 	 	21	 
	 
	 	11.07	 	Delinquent Assessments	 	 	21	 
	 
	 	11.08	 	Wyndham Use	 	 	21	 
	 
	 	11.09	 	Presales	 	 	22	 
	 
	 	11.10	 	Additional Exchange and Other Programs	 	 	22	 
	 
	 	11.11	 	Priority Reservation Rights	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	XII	 	OTHER RIGHTS AND RESPONSIBILITIES OF MEMBERS	 	 	23	 
	 
	 	12.01	 	Sale or Transfer	 	 	23	 
	 
	 	12.02	 	No Sale Assistance	 	 	24	 
	 
	 	 	 	 	 	 	 	 
	XIII	 	MEMBERSHIP IN THE FAIRSHARE VACATION OWNERS ASSOCIATION AND OTHER OWNERS ASSOCIATIONS	 	 	24	 
	 
	 	13.01	 	Fairshare Vacation Owners Association	 	 	24	 
	 
	 	13.02	 	OA	 	 	24	 
	 
	 	13.03	 	Payment of Delinquent FairShare Plus Assessments	 	 	25	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	Article	 	Page
	 
	 	 	 	 	 	 	 	 
	XIV	 	MISCELLANEOUS	 	 	25	 
	 
	 	14.01	 	Construction of Trust Agreement	 	 	25	 
	 
	 	14.02	 	Arbitration	 	 	25	 
	 
	 	14.03	 	Severability	 	 	25	 
	 
	 	14.04	 	Notice to the Parties	 	 	25	 
	 
	 	14.05	 	Amendments	 	 	26	 
	 
	 	14.06	 	Further Assurances	 	 	26	 
	 
	 	14.07	 	Acceptance and Ratification by Members	 	 	26	 
	 
	 	14.08	 	Exchange Programs	 	 	26	 
	 
	 	14.09	 	Extensions	 	 	26	 
	 
	 	14.10	 	Successors and Assigns	 	 	26	 
	 
	 	14.11	 	Miscellaneous	 	 	26	 

-iii-

 

SECOND AMENDED AND RESTATED

FAIRSHARE VACATION PLAN USE

MANAGEMENT TRUST AGREEMENT

     THIS SECOND AMENDED AND RESTATED FAIRSHARE VACATION PLAN USE MANAGEMENT TRUST AGREEMENT (this
"Trust Agreement”) is effective as of the 14th day of March, 2008, by and among Fairshare Vacation
Owners Association, an Arkansas nonprofit corporation; Wyndham Vacation Resorts, Inc., a Delaware
corporation, Fairfield Myrtle Beach, Inc., a Delaware corporation, and such other subsidiaries and
affiliates of Wyndham Vacation Resorts, Inc. as may from time to time subject Property Interests
(or the Use Rights therein) to this Trust Agreement; and such other unrelated third parties as may
from time to time desire to subject Property Interests (or the Use Rights therein) to this Trust
Agreement, all in accordance with the terms and conditions set forth herein, and amends and
restates the “Amended and Restated Trust Agreement” (as hereinafter defined) which, in turn,
amended and restated the “Original Trust Agreement” (as hereinafter defined).

     WHEREAS, Wyndham is the developer of certain resort communities and Vacation Plans with
respect to which Wyndham sells timeshare and other interests; and

     WHEREAS, Wyndham desires to establish a trust to permit the Beneficiaries to use and exchange
the Use Rights available through the Trust; and

     WHEREAS, Persons that (i) subject one or more Property Interest(s) to this Trust Agreement by
an assignment to the Trust of the Use Rights attributable to such Property Interest(s), or (ii)
purchase one or more Property Interests which have previously been subjected to this Trust
Agreement, shall be allocated Points symbolic of the Use Rights and other attributes of their
respective Property Interest(s) and shall be permitted to use their symbolic Points as described
herein; and

     WHEREAS, the Points allocated to a Member may be used to reserve Trust Properties pursuant to
the procedures described in this Trust Agreement and the FairShare Plus Member’s Directory; and

     WHEREAS, the Trustee has agreed to develop, or contract with a third party to provide, a
reservation system to enable Members to reserve the use of the Trust Properties; and

     WHEREAS, the parties have agreed that the Trustee, as an administrative convenience to the
Members, will (i) collect fees due from each Member to the owner’s association or associations
established with respect to such Member’s Property Interest or if there is no such association,
then the fees due to the operator or manager of the Vacation Plan creating such Property Interest,
(ii) hold such fee in escrow on behalf of each such Member and (iii) remit such fee to the
appropriate owners association or associations or operator(s)/manager(s), as the case may be, when
such Member would be obligated to make payment thereof; and

     WHEREAS, the Trust may, from time to time or at some future time, hold legal or equitable
title to, or the Use Rights associated with, some or all of the Trust Properties; and

 

 

     WHEREAS, from time to time, other subsidiaries of Wyndham and/or third parties may, with the
written consent of Wyndham and Trustee, subject Property Interests or the Use Rights therein to
this Trust Agreement; and

     WHEREAS, Wyndham shall have the right (but not the obligation) to cause this Trust Agreement
to be recorded in the various states and counties in which the Property Interests may be located or
if recording is not appropriate based upon the nature of the Property Interest, then Wyndham shall
have the right (but not the obligation) to cause this Trust Agreement to be filed, lodged or
published in such other appropriate office or with any other appropriate governmental or
quasi-governmental office or agency (hereinafter collectively called “Filing Offices”) applicable
to the Property Interests which are being subjected to this Trust Agreement by an assignment to the
Trust of the Use Rights in such Property Interest(s).

     NOW, THEREFORE, Wyndham and the Trustee hereby enter into this Trust Agreement and each Member
and/or third party shall be deemed to have accepted and agreed to be bound by this Trust Agreement
at the time their respective Property Interests or the Use Rights therein are subjected to the
terms and conditions of this Trust Agreement by an assignment of Use Rights, or upon execution of a
contract for the purchase of a Property Interest which has been previously subjected to this Trust
Agreement or upon execution of such other documents as may be acceptable to the Trustee.

ARTICLE I

DEFINITIONS

     As used herein, the following terms shall have the following meanings:

     “Accommodation” means a Vacation Unit that has been, or the Use Rights with respect to
which have been, subjected to this Trust Agreement. If a Property Interest (or the Use Rights
therein) that has been subjected to this Trust Agreement (either directly or through an assignment
to the Trust of the Use Rights therein), constitutes something other than a Vacation Unit (or the
Use Rights therein) (such as, for example, a Property Interest that is a membership in a multi-site
Vacation Plan), then “Accommodation” shall mean a Vacation Unit available through the Property
Interest or Use Rights therein that has been so subjected to this Trust Agreement.

     “Amended and Restated Trust Agreement” means that certain Amended and Restated
Fairshare Vacation Plan Use Management Trust Agreement dated as of January 1, 1996 by and among
Wyndham, the Association and Third Parties, as amended by a First Amendment to the Amended and
Restated Fairshare Vacation Plan Use Management Trust Agreement dated as of February 29, 2000 and a
Second Amendment to the Amended and Restated Fairshare Vacation Plan Use Management Trust Agreement
dated as of February 19, 2003.

     “Annual Lodging Point Value” means the sum of the Points required for occupancy of an
Accommodation for an entire year.

2

 

     “Assignment Agreement” shall mean that provision in a Member’s Purchase Agreement, the
FairShare Vacation Ownership Assignment Agreement or other document whereby a Property Interest
is, or the Use Rights in a Property Interest are, subjected to the conditions and restrictions of
this Trust Agreement (by an assignment or other conveyance to the Trust of the Use Rights in such
Property Interest) and assigned a number of Points.

     “Association” means the Fairshare Vacation Owners Association, an Arkansas non-profit
corporation.

     “Beneficiaries” means the beneficiaries of this Trust Agreement, which beneficiaries
shall include the Members, the Association, the Plan Manager, Wyndham and the Third Parties.

     “Board” or “Board of Directors” shall mean the Board of Directors of the
Association.

     “Directory” means the FairShare Plus Member’s Directory which describes the Trust
Properties and the terms and conditions of the FairShare Vacation Plan, as may be amended,
supplemented, updated and/or replaced from time to time. Subject to the right of Wyndham under
Section 11.01 below, the Plan Manager, with the consent of the Trustee, will, from time to time,
issue the Directory and revisions thereof and supplements thereto.

     “Escrow Account” means the account established by the Trustee into which the OA Fees
paid by the Members are deposited.

     “FairShare Plus Assessment” means the annual fee paid to the Trustee by a Member. The
FairShare Plus Assessment consists of the Program Fee and the OA Fee.

     “Governing Instruments” means the documents and instruments that create a Vacation
Plan and the Property Interests therein and govern the use of Property Interests and the occupancy
of Accommodations pursuant to said Vacation Plan and may include, without limitation, articles of
incorporation for any OA; by-laws for the OA; rules and regulations concerning operation of the
Vacation Plan, the use of Property Interests therein and/or the occupancy of Accommodations
thereunder; any declaration of covenants, conditions and restrictions and grant of easements
encumbering the Property Interests in the Vacation Plan and any master trust agreement to which any
Property Interest (or the Use Rights therein) subject to this Trust Agreement is also subject.

     “Member” means Wyndham and the holder of a right to occupy an Accommodation as a
consequence of such holder having his Property Interests (or the Use Rights therein) subjected to
this Trust Agreement, and such holder’s heirs, and permitted successors and assigns. Wyndham may
also be a Member to the extent it has subjected Property Interests (or the Use Rights therein) to
this Trust Agreement which have not yet been sold; provided, however, Wyndham is not required to
pay any OA Fees or Program Fees except as provided by Section 11.08 of this Trust Agreement. Each
Member of the FairShare Vacation Plan shall also be a “Member” of the Association with the voting
and other rights in the Association as are established and governed by the Articles of
Incorporation and By-Laws of the Association.

3

 

     “Membership” means the relationship of a Member to the FairShare Vacation Plan and the
bundle of rights, duties and benefits, including, without limitation, the Points, a Member receives
by reason of his Property Interest (or the Use Rights therein) having being subjected to this Trust
Agreement. It also means the relationship of a Member to the Association and the bundle of rights,
duties and benefits a Member receives by reason of being a “Member” in the Association.

     “OA” means an underlying condominium, townhouse or timeshare homeowners association,
master association or community club/association in which the owners of Property Interest therein
become members, as well as any other type of association (whether or not incorporated) of owners of
Property Interests and includes, without limitation, the owners association for a multi-site real
or personal property based Vacation Plan. If the Governing Instrument(s) for a Vacation Plan do
not require the establishment of an association or similar owners organization for the owners of
Property Interests therein, then “OA” shall mean the operator and/or manager of that Vacation Plan.

     “OA Fees” means the annual fee or fees due from each Member in respect of his Property
Interest which fees shall be paid by the Member to, and held in escrow in accordance with the terms
of this Trust Agreement by, the Trustee and which fees include all recreation, maintenance and
reserve fees and assessments that a Member is obligated to pay on an annual basis in respect of his
Property Interest that was subjected (either directly or by reason of the assignment to the Trust
of the Use Rights in such Property Interest) to this Trust Agreement. “OA Fees” also mean all
amounts due to the operator or manager of a Vacation Plan where no association of owners therein
has been or is intended to be established representing fees and assessments that are imposed on an
annual basis to cover the cost of operation of such Vacation Plan, including maintenance, repair
and/or replacement of the Vacation Units in that Vacation Plan.

     “Plan” means the FairShare Vacation Plan established by this Trust Agreement. The
Plan is also known as the FairShare Plus Program.

     “Plan Manager” means the manager of the FairShare Vacation Plan, its successors and
permitted assigns.

     “Points” means the symbolic value allocated to a Member in connection with such
Member’s Membership in the Plan and is based upon the Property Interest (or Use Rights in such
Property Interest) which such Member caused to be subjected to this Trust Agreement. “Points” also
means the symbolic value assigned to the right to occupy an Accommodation.

     “Program Fee(s)” shall mean the fees payable to the Trustee under Article X below by
the Members for the expenses incurred in connection with the operation and administration of the
Plan which includes, among other things, operation and administration of the Trust and the
Association and operation, maintenance, repair and replacement of the Trust Properties.

     “Program Fund” means the account or accounts in which the Program Fee is deposited to
pay the expenses incurred in connection with the operation and administration of the Plan.

4

 

     “Property Interest” means an interest in a Vacation Unit or in a Vacation Plan or an
undivided interest in one or more Vacation Units, each of which interests or the Use Rights therein
is/are subjected to this Trust Agreement and such interest is (i) a fixed or floating timeshare
interval, as defined in the applicable Governing Instrument(s), (ii) an estate for years, with or
without a remainder over with other owners, (iii) a leasehold “right to use” interest, (iv) an
interest in a multi-site Vacation Plan, or (v) such other type of interest as Trustee may elect to
accept from time to time, in Trustee’s sole discretion. A “Property Interest” may be an interest
in any type of property, including real, personal, mixed or otherwise.

     “Purchase Agreement” means any documents evidencing the purchase of a Property
Interest by a Member.

     “Recording Office” means the appropriate local clerk’s office in any county in which
any of the Property Interests which constitute real property are located.

     “Third Party” or “Third Parties” means all individuals or entities not affiliated with
Wyndham who develop Property Interests for sale to the public and who subject such Property
Interests (or the Use Rights in such Property Interests) to this Trust Agreement.

     “Trust” means the trust established by this Trust Agreement, as amended from time to
time.

     “Trust Properties” means all Property Interests subjected to this Trust Agreement and
all Use Rights in Property Interests conveyed, assigned or subjected to this Trust Agreement in
accordance with the terms of this Trust Agreement, which conveyance/assignment includes all rights
and privileges appurtenant to each such Property Interest. Trust Properties may further include
personal property and/or services used in connection with the Property Interests or the Use Rights
therein or otherwise made available to the Members and all substitutions, replacements and/or
proceeds therefrom. Property Interests(and/or the Use Rights in such Property Interests) may be
added to the Trust Properties from time to time by Wyndham, the Plan Manager or the Trustee. Among
other things, the Trust Properties shall not include the Program Fees, the OA Fees or the Plan
Manager’s reservation system.

     “Trustee” means Fairshare Vacation Owners Association, any substitute trustee, or its
successors and assigns.

     “Use Rights” shall mean those rights a Member has to use, occupy and/or possess a
Vacation Unit as a consequence of the ownership of a Property Interest in a Vacation Plan which
includes that Vacation Unit.

     “Vacation Plan” means any arrangement, plan, or similar device, other than an exchange
program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement,
license, right to use agreement, shareholders agreement, partnership or joint venture agreement, or
limited liability company/operating agreement or by any other means, whereby a purchaser, for
consideration, receives ownership rights in or a right to use a Vacation Unit or a group of
Vacation Units (which may be located in one site or at a number of sites) and in any

5

 

event, the facilities, if any, that are appurtenant to each such Vacation Unit, for a period
of time less than a full year during any given year, but not necessarily for consecutive years.

     “Vacation Unit” means (i) an apartment, condominium or cooperative unit, townhouse
unit, house, cabin, lodge, hotel or motel room, mobile home, recreational vehicle, houseboat, cabin
of a ship, pleasure yacht or other private or commercial vessel, vehicle or structure designed and
available for use and suitable for overnight lodging for one or more individuals or (ii) a campsite
designed and suitable for providing overnight parking and utility services for a recreational
vehicle.

     “Voting Designee” means the person or entity, its successors or assigns, who has been
designated by a Member, to exercise such Member’s voting privileges in his OA.

     “Voting Member” is the person or entity designated on behalf of multiple owners of a
Membership to exercise the vote of such multiple owners in the Association.

     “Wyndham” means Wyndham Vacation Resorts, Inc., a Delaware corporation, formerly known
as Fairfield Resorts, Inc. and before that, as Fairfield Communities, Inc.; Fairfield Myrtle Beach,
Inc., a Delaware corporation, and such other subsidiaries and affiliates of Wyndham Vacation
Resorts, Inc. that may from time to time desire to subject Property Interests or the Use Rights
therein to this Trust Agreement in accordance with the terms and conditions set forth herein.
Wyndham Vacation Resorts, Inc., f/k/a Fairfield Resorts, Inc., is the successor by merger to
Fairfield Harbor, Inc., Fairfield in the Carolina’s, Inc., Fairfield Ocean Ridge, Inc., Fairfield
Pagosa, Inc., Fairfield Plantation, Inc., Fairfield Williamsburg, Inc., and Fairfield Ventura, Inc.

ARTICLE II

DECLARATION AND TITLE, PURPOSE

AND EFFECTIVE DATE OF TRUST

     2.01 Declaration and Title of the Trust. Effective as of the 26th day of June, 1991,
there was established a Trust, which Trust is irrevocable during the time any Member has a right to
occupy an Accommodation as a consequence of his Property Interest or the Use Rights in his Property
Interest being subjected to the terms of this Trust Agreement and which Trust shall be known as the
“FairShare Vacation Plan Use Management Trust”. The Trust shall hold the Trust Properties on
behalf of the Beneficiaries, all for the use and purposes as set forth in this Trust Agreement.

     2.02 Purpose of the Trust. The purpose of the Trust shall be to secure for the
Beneficiaries their respective rights and interests as set forth in this Trust Agreement and in the
Purchase Agreements and/or Assignment Agreements executed by the Members.

     2.03 Governing Law. This Trust Agreement shall be deemed an Arkansas Trust and shall
be governed by the laws of the State of Arkansas.

6

 

ARTICLE III

BENEFICIARIES

     3.01 Interest of Beneficiaries. The interest of a Beneficiary under this Trust
Agreement shall consist of the rights set forth in this Trust Agreement. No Beneficiary shall have
any right of partition as to any real or personal property held in Trust hereunder except for the
right of each Member to have his respective Property Interest (or the Use Rights therein)
reconveyed (a) upon termination of the Trust, if applicable, and (b) with respect to each Member
who subjected his Property Interest (or the Use Rights therein) to this Trust pursuant to an
Assignment Agreement, upon any termination of his Membership in the Plan in accordance with the
terms of his Assignment Agreement. The death of a Beneficiary shall not terminate this Trust nor
in any manner affect the powers of the Trustee.

     3.02 Beneficiary Acts. No Beneficiary, in his/her/its capacity as a beneficiary of
the Trust, shall have the authority to contract for or in the name of the Trust or any other
Beneficiary or to bind the Trust or any Beneficiary.

     3.03 Assignment. Until the Trustee receives written notice of an assignment or
transfer, by operation of law or otherwise, to the Trust from a Member of his Property Interest or
the Use Rights therein, or of any other event upon which such Property Interest hereunder may
depend, the Trust shall not be liable for any assignments or transfers with respect to such
Property Interest or Use Rights or other action which would have been proper prior to such
assignment or other transfer, or other event, unless such action is done in bad faith.

     3.04 Wyndham. Wyndham, in its capacity as the developer of resort communities and
Vacation Plans, shall have the right to sell Property Interests to purchasers who, after such
purchase, voluntarily elect to subject such Property Interests (or the Use Rights therein) to this
Trust Agreement or to sell Property Interests which have been subjected to this Trust Agreement
prior to such sale, in either case for cash or other terms acceptable to Wyndham. With respect to
the Property Interests subjected to this Trust Agreement which it owns (and therefore prior to the
sale thereof by Wyndham), Wyndham, as such developer, may finance, with one or more lenders, such
Property Interests, and may deliver to any such lender, deeds of trust, mortgages or other security
instruments or liens against such Property Interests. Wyndham, as such developer, may also pledge
to one or more lenders the Purchase Agreements or promissory notes given by Members secured by
UCC-1 Financing Statements, mortgages, deeds of trust, or other security instruments. Any such
liens or security interests shall contain subordination language which subordinates the lenders’
interest in the Property Interest encumbered by such lien or security interest to that of the
Member so long as such Member is not in default of the contractual obligations under the Member’s
Purchase Agreement or promissory note.

7

 

ARTICLE IV

ASSETS

     4.01 Trust Properties. The assets of the Trust shall be the Trust Properties.
Neither the OA Fees held in escrow pursuant to Article X, the Program Fees nor the reservation
system owned by the Plan Manager shall be part of the Trust Properties.

     4.02 Allocation of Points. For administrative convenience in operation of the Plan,
the Plan Manager, on behalf of the Trustee, has established or will establish Point values for use
of the Trust Properties. The Points assigned to a Property Interest or the Use Rights therein are
based on the location, size, season, capacity, furnishings, demand, cost to acquire, build and
maintain and other features of the Accommodation or Accommodations available as a part of such
Property Interest, as well as other factors that may affect the experience of occupancy of such
Accommodation or Accommodations (such as, holidays, ski seasons and local events). When a Property
Interest or the Use Rights therein is/are subjected to this Trust Agreement, it will be allocated
Points by the Plan Manager, on behalf of the Trustee. The total number of Points required to
reserve all Accommodations available in respect of all of the Property Interests (or Use Rights
therein) that have been subjected to this Trust Agreement during all use days shall always equal or
exceed the total number of Points allocated to all of the Members.

     4.03 Adjustment of Point Allocation. The ownership interest of a Member in a Property
Interest subjected to this Trust Agreement (by assignment of the Use Rights therein or otherwise)
as stated in such Member’s Purchase Agreement or FairShare Vacation Ownership Assignment Agreement
may not be changed. However, from time to time the Plan Manager, on behalf of the Trustee, may
adjust the number of Points required to reserve an Accommodation available through a Property
Interest in order to respond to actual use patterns and changes in use demand. Any increase or
decrease in the total number of Points required to reserve such Accommodations shall also result in
a pro-rata increase or decrease in the number of Points allocated to all Members that own the
Property Interests through which such Accommodations are available (including Wyndham or such other
applicable Third Party if all Property Interests in the applicable Vacation Plan which have been
subjected to this Trust Agreement have not yet been sold). However, any such adjustments made by
the Plan Manager, on behalf of the Trustee, shall not result in an increase or decrease in the
number of the Points assigned to an Accommodation in one season of a year by more than twenty
percent (20%), unless those Members entitled to cast a majority of the votes of all Members
present, in person or by proxy, at an annual or special meeting of the Members of the Association
held in accordance with the terms and provisions of the By-Laws of the Association vote for such
increase or decrease in the number of Points assigned to such Accommodation.

8

 

ARTICLE V

TERMINATION OF THE TRUST, WITHDRAWALS,

ADDITIONS, SUBSTITUTIONS, AND TERMINATION OF POINTS

     5.01 Termination. Unless terminated in accordance with the terms hereof or not
extended as provided for in Section 14.09 below, the Trust and this Trust Agreement shall terminate
on December 31, 2025. Upon any termination of the Trust, the Association shall be dissolved and
the following shall occur:

     (a) The Trustee shall cause all Use Rights to be reconveyed to the assigning Member or
his successors or assigns, if such Use Rights were assigned to the Trust after the Member
acquired the corresponding Property Interest;

     (b) The Trustee shall take all steps necessary to release from the encumbrance of this
Trust Agreement all Property Interests whose Use Rights were subjected to this Trust
Agreement by Wyndham prior to being sold by Wyndham;

     (c) The Board of Directors of the Association shall convert all non-cash assets of the
Association and the Trust (other than the individual Members’ Use Rights and Property
Interests) to cash and that cash, together with all amounts then in the Program Fund, shall
be used to pay the outstanding costs and expenses of the Trust and the Association,
including all costs and expenses incurred in connection with the termination of the Trust
and the dissolution of the Association, and to establish any reserves which the Board deems
appropriate to cover any additional costs and expenses to be incurred with the balance to be
distributed to the Members on a pro-rata basis based upon the number of Points owned by each
Member; and

     (d) The Board shall cause any surplus then held in the Escrow Account (representing
amounts collected as OA Fees from the Members) to be returned to the depositing Member(s)
thereof and shall advise each of the OAs that it will no longer be collecting and remitting
to it OA fees paid by Members who are also members of that OA.

     5.02 Withdrawal of Property Interests. The Trustee may withdraw a Property Interest
or the Use Rights therein from this Trust Agreement and cancel the Points allocated to any Member
owning such Property Interest by executing an appropriate withdrawal document and if necessary,
recording it in the Recording Office or, if appropriate, filing it in the Filing Office, under any
one of the following conditions:

     (a) Default Under Purchase Agreement. If a Purchase Agreement for a Property
Interest is cancelled due to default or if a mortgage, deed of trust or other security
interest encumbering a Property Interest is foreclosed as a result of the Member owning such
Property Interest defaulting thereunder, the Trustee, upon the direction of Wyndham or the
Third Party who completed such foreclosure, shall execute the documents necessary to (i)
cancel the Assignment Agreement and withdraw the Property

9

 

Interest/Use Rights from this Trust Agreement, where the Property Interest/Use Rights
was/were subjected to this Trust Agreement after being acquired by the Member or (ii)
terminate the Membership of the defaulting Member where such Member’s Property Interest/Use
Rights was/were subjected to this Trust Agreement prior to being acquired by the Member. In
the event of a cancellation or termination due to default, the defaulting Member (A) shall
forfeit all previously paid FairShare Plus Assessments (with all OA fees not theretofore
paid to the applicable OA to be forwarded to such OA), (B) shall no longer have any right to
participate in the Plan and (C) shall no longer be a Member of the Plan or of the
Association.

     (b) Changed Circumstances. If the Trustee, in its discretion, has determined
that a Property Interest (or Use Rights therein) should be withdrawn due to circumstances
that render the Accommodation(s) applicable to such Property Interest unsuitable for
continued use in the Plan, the Trustee shall have the authority to cause such Property
Interest/Use Rights to be withdrawn from this Trust Agreement and to cause all Points
attributable to the withdrawn Property Interest/Use Rights to be canceled and the Members
owning such withdrawn Property Interest/Use Rights shall no longer have the right to
participate in the Plan and shall no longer be Members of the Association. The Trustee
shall execute any and all documents necessary to reconvey the Use Rights and/or transfer
title to the withdrawn Property Interest to the appropriate Member or Wyndham, if necessary.

     (c) Destruction, Condemnation or Temporary Loss of Use. If the Use Rights in
one or more Property Interests are, in the Trustee’s discretion, (i) permanently no longer
suitable for use in the Plan as the result of one or more Accommodations available through
that or those Property Interests having been condemned or such Accommodations are destroyed
or damaged and the OA, pursuant to the Governing Instruments establishing said Property
Interests, elects not to rebuild or restore the affected Accommodations, then (A) the
Trustee shall withdraw the applicable Property Interest(s)/Use Rights from this Trust
Agreement (and if applicable, reconvey said Property Interests(s)/Use Rights to the
corresponding Members) and cancel, by written notice to such Members, the Points
attributable to such Property Interest(s)/Use Rights; (B) such Members shall no longer have
any right to participate in the Plan and shall no longer be Members in the Association; (C)
the Trustee shall cause any surplus then held in the Escrow Account which represents amounts
collected from such Members to be returned to them, but such Members shall have no right to
any Program Fees that they have previously paid; and (D) if the Trustee receives any funds
on account of such condemnation or damage/destruction, the Trustee shall, to the extent such
funds exceed the Trustee’s costs in achieving the withdrawal of the Property Interest(s)/Use
Rights from the Plan and cancellation of the Membership(s), distribute the excess to such
Members on a pro-rata basis; or (ii) temporarily not suitable for use in the Plan as a
result of one or more Accommodations available through that or those Property Interests
having been rendered unoccupiable as a result of damage or destruction where the OA,
pursuant to the Governing Instruments establishing said Property Interests, has elected to
re-build, restore or repair, as applicable, the affected Accommodations or as a result of
the OA undertaking a significant renovation of the Accommodations which results in such

10

 

Accommodations not being available for use by all of the owners of Property Interests
in such affected Accommodations and in any such case, the applicable OA is not providing
alternative Accommodations to the owners of Property Interests therein during the period of
unavailability, then the Trustee shall use commercially reasonable efforts to obtain the
right to occupy substitute Accommodations in the area where the affected Accommodations are
located which substitute Accommodations may become Trust Properties on either a temporary or
permanent basis and shall have Annual Lodging Point Values equal to or greater than the
Annual Lodging Point Values of the affected Accommodations.

     (d) Termination or Partition. If a Vacation Plan is terminated or one or more
Property Interests in a Vacation Plan are partitioned pursuant to the Governing Instruments
establishing said Vacation Plan, the Points in the Plan attributable to the Property
Interests in such terminated Vacation Plan or the Property Interests (or Use Rights therein)
affected by such partition shall be removed from the Plan and the Members owning such
terminated or partitioned Property Interests shall no longer have the right to participate
in the Plan and shall no longer be Members of the Association.

     (e) Expiration. If a Property Interest which is a leasehold interest or “right
to use” interest expires, the Members owning Points associated with such expired Property
Interests shall have no further right to participate in the Plan and shall no longer be
Members of the Association and the Points associated with such expired Property Interests
shall be cancelled.

     (f) Wyndham Withdrawal. Wyndham may withdraw Accommodations applicable to
Property Interests subjected by Wyndham to this Trust Agreement if no such Property
Interests have been sold or Wyndham has reacquired all previously sold Property Interests.

     5.03 Addition of Accommodations. Wyndham, in its capacity as the developer of resort
communities and Vacation Plans, may, from time to time, in its sole and absolute discretion, (a)
cause the Property Interests in additional Accommodations, interests or rights in other real or
personal property and/or rights in or to services to be transferred or otherwise made available to
the Members through the Plan and (b) as noted in Section 3.04 above, cause such resort communities
and Vacation Plans to enter into affiliation arrangements with the intention that either (i) the
purchaser of a Property Interest therein would have the right, on a voluntary basis, to assign the
Use Rights therein to the Trust after such purchase or (ii) the Property Interests therein would
have been previously subjected to this Trust Agreement and therefore, the purchaser thereof would
automatically become a Member, all of such actions to occur without the consent of any of the other
Members or the Trustee; but under no circumstances shall Wyndham be required to make any such
transfers. The addition to the Plan of Property Interests (or the Use Rights therein) in
Accommodations, interests or rights in other real and personal property and/or rights in or to
services may result in the addition of new Members who will compete with existing Members in making
reservations for the use of the Trust Properties, and may also result in an increase in the Program
Fee.

11

 

     5.04 Substitutions. Wyndham, in its capacity as the developer of resort communities
and Vacation Plans, and the Trustee may, from time to time, in their sole and absolute discretion,
substitute Property Interests in Vacation Units, rights or interests in other real or personal
property and/or rights in or to other services for Property Interests in Accommodations, rights or
interests in real or personal property available through the Plan and/or rights in or to services
available through the Plan, so long as the Property Interests in the Accommodations, the rights or
interests in other real or personal property and/or the rights in or to services which are being
withdrawn are not owned by any Member (other than Wyndham). The determination of whether to
substitute will be based on the use by the Members of the Accommodations, the other real or
personal property and/or the services to be withdrawn, the availability of similar property in the
same general vicinity or of the same general quality or utility as the property being withdrawn,
the availability of services substantially the same or better than the services being withdrawn,
the age of the Accommodations, the other real or personal property and/or the services being
withdrawn, the expenses incurred in connection with maintaining the Accommodations, the other real
or personal property and/or services being withdrawn and such other factors as may be determined by
Wyndham and/or the Trustee from time to time. The Members have no right to consent to the
substitution of Property Interests in other Vacation Units, interests in other real or personal
property and/or rights in or to other services for Property Interests relating to existing
Accommodations, interests in real or personal property then available through the Plan and/or
rights in or to existing services. The replacement Trust Properties shall provide Members with an
opportunity to enjoy a substantially similar experience as was available with the replaced Trust
Properties. In determining whether the replacement Trust Properties will provide a substantially
similar experience, all relevant factors will be considered, including, but not limited to, some or
all of the following: size, capacity, furnishings, maintenance, location (geographic,
topographic, and scenic), demand and availability for Member use, quality and availability of a
service, and recreational capabilities.

ARTICLE VI

DUTIES AND OBLIGATIONS

OF THE TRUSTEE

     6.01 Duties and Obligations. The Trustee shall, without limiting the other duties and
obligations set forth in other provisions of this Trust Agreement, provide the following services
with respect to the Trust:

     (a) Ownership. The Trustee shall, on behalf of the Trust, accept and hold
ownership of the Trust Properties for the beneficial use of each Member. In the event
ownership to any Property Interest is transferred to the Trust, said Property Interest shall
be subject in all respects to the provisions of this Trust Agreement. The Trustee shall
have no equitable rights in any of the Property Interests or Use Rights subjected to this
Trust Agreement nor any right to the income or profits to be derived from the sale of any
Property Interests owned by the Trust. The Trustee will not, without the consent of
Wyndham, accept on behalf of the Trust, Property Interests or Use Rights from any person or
entity other than Wyndham.

12

 

     (b) Liens. The Trustee shall use reasonable efforts to ascertain that at the
time a Property Interest or the Use Rights therein is/are subjected to this Trust Agreement
that either (i) no liens affect such Property Interest which would prevent the use by the
Members of the Accommodation(s) available in respect of that Property Interest, or (ii) in
the case there is such a lien, (A) the holder of any lien has agreed that such lien is
subordinated to the rights of a Member that satisfies the terms of his Purchase Agreement,
mortgage, deed of trust and/or other security instrument, and (B) the holder of any blanket
lien has entered into a non-disturbance instrument pursuant to which such holder agrees that
a Member that satisfies the terms of his Purchase Agreement, mortgage, deed of trust and/or
other security agreement shall be entitled to exercise the Use Rights attributable to such
Property Interest pursuant to the terms of this Trust Agreement; provided, however, the
Trustee may, on behalf of the Trust, accept Property Interests or the Use Rights therein
that do not satisfy such conditions if, in the Trustee’s sole discretion, the failure to
satisfy such conditions with respect to such Property Interests does not materially
adversely affect the total availability of Accommodations to the Members.

     (c) Recording of Trust Agreement. The Trustee shall have the right, but not
the obligation, to record or cause to be recorded in the Recording Office and to file or
cause to be filed, as appropriate, in any Filing Office a copy of this Trust Agreement and
the appropriate amendments or addendums thereto and shall take such steps as are required by
law to assure that notice of the terms and provisions of this Trust Agreement, as amended
from time to time, is given in all jurisdictions where any Trust Properties held by the
Trust are located and where the giving of such notice is necessary to protect the interests
of the Beneficiaries in such Trust Properties.

     (d) Accounting. The Trustee shall cause the Plan Manager to maintain the
information necessary to enable reports covering the following information to be prepared
from time to time: (1) the inventory of the Trust Properties and the cumulative number of
Points represented by the Trust Properties; (2) the cumulative number of Points allocated to
Property Interests/Use Rights; and (3) all financial transactions, if any, of the Trust.
The Trustee has the right (but not the obligation) to employ, from time to time, at the
expense of the Association, an independent accounting firm for such purposes related to the
administration or operation of the Plan (including the administration and operation of the
Trust and the Association) as the Trustee deems appropriate.

     (e) Property Maintenance. Trustee shall provide for the maintenance, repair,
and replacement of all Accommodations, including, without limitation all personal property
located in the Accommodations, available in respect of all Property Interests (or the Use
Rights therein) that have been subjected to this Trust Agreement from time to time, if the
applicable OA, if any, is not obligated to provide such maintenance, repair and replacement.

     (f) Tax Returns. Trustee shall cause to be prepared and filed on behalf of the
Trust all state and federal income tax returns.

13

 

     (g) Member List. Trustee shall maintain a record of the names and addresses
of, and the number of Points held by, all Members and the cumulative number of Points
allocated to the Trust Properties.

     (h) Insurance. The Trustee shall cause to be maintained adequate insurance on
the Trust Properties against fire and other unavoidable casualties if the applicable OA, if
any, is not obligated to provide such insurance. The Trustee shall hold any insurance
proceeds received from such insurance pending the reconstruction of an Accommodation or the
acquisition of a replacement Accommodation. Subject to the last sentence of this Section
6.01(h), the Trustee shall be responsible for reconstruction of the Accommodation or the
acquisition of a replacement Accommodation if the applicable OA, if any, is not obligated to
so reconstruct or acquire and whether or not the Trustee is responsible for such
reconstruction or replacement, the Trustee shall assure that adequate arrangements are made
for alternate accommodations during the time an Accommodation is being reconstructed or a
replacement Accommodation is being sought. In the event a destroyed Accommodation is not
reconstructed or replaced, the Trustee shall distribute any net proceeds from insurance it
may receive to the appropriate Members whose Points were cancelled as a consequence thereof,
as provided in Section 5.02(c) above .

     (i) OA Agreements. The Trustee may enter into agreements with each OA to set
forth the delegation of duties between the Trust and the OA. If an OA for a Vacation Plan
is not a party to such an agreement or such Vacation Plan does not have an OA, then the
Trustee, on behalf of the Trust as the holder of the Use Rights in Property Interests in
such Vacation Plan, may take any action it deems necessary to enforce the rights of the
Beneficiaries with respect to those Property Interests and the Accommodations available in
respect thereof.

     6.02 Delegation of Duties. The Trustee may delegate any or all of its duties under
this Article VI or any other Article of this Trust Agreement to the Plan Manager. In performing
all of the Trustee’s duties delegated to it, the Plan Manager shall at all times insure that the
total number of Points required to reserve all Accommodations available in respect of all of the
Property Interests (or Use Rights therein) that have been subjected to this Trust Agreement during
all use days shall always equal or exceed the total number of Points allocated to all of the
Members.

     6.03 Plan Manager. The initial Plan Manager shall be Wyndham, its successors or
assigns. The Plan Manager shall operate the Plan pursuant to this Trust Agreement, the Management
Agreement between Plan Manager and the Trustee and all other agreements entered into between either
the Trustee or the Plan Manager and one or more Members or the developer or the OA for any Trust
Property or Vacation Plan. The Management Agreement is incorporated herein by reference and made a
part hereof as though set forth word for word. The Plan Manager may be removed only if those
Members entitled to cast at least seventy-five percent (75%) of the then total votes of all of the
Members vote, at an annual or special meeting of the Members of the Association held in accordance
with the terms and provisions of the By-Laws of the Association, for the removal of the Plan
Manager. In order to assure continuity, the Plan

14

 

Manager shall be prohibited from resigning prior to the appointment of a successor Plan
Manager.

     6.04 Expenses. Trustee shall have no liability for any expenses attributable to the
operation and administration of the Plan or the Trust or the operation, maintenance, repair or
replacement of any of the Trust Properties, all such expenses to be paid out of, and to the extent
of, the FairShare Plus Assessments collected from time to time.

ARTICLE VII

RIGHTS AND POWERS OF THE TRUSTEE

     7.01 Resignation of the Trustee. The Trustee may resign upon not less than 90 days
prior written notice of intent to resign delivered to Wyndham, the Plan Manager (if not then
Wyndham) and the other Beneficiaries; provided, however, that the Trustee shall continue to perform
pursuant to this Trust Agreement until a successor Trustee has been appointed. The successor
Trustee must agree to perform the functions specified in this Trust Agreement. Wyndham and the
Plan Manager (if not then Wyndham) shall agree on, or Wyndham (if it is then the Plan Manager)
shall designate, a successor Trustee. In the event Wyndham and the Plan Manager (if not then
Wyndham) fail to agree on, or Wyndham (if it is then the Plan Manager) shall fail to designate, a
successor Trustee, then the Board of Directors may appoint a successor Trustee. In the event the
Board of Directors fails to appoint a successor Trustee, any interested party may petition the
applicable State Court for Pulaski County, Arkansas or the Federal District Court for the Eastern
District of Arkansas, for the appointment of a successor Trustee. Upon appointment, a successor
Trustee shall have all the powers and duties and shall perform the functions as described in this
Trust Agreement. Nothing herein shall prohibit or preclude the appointment by the Trustee of a
co-Trustee or a substitute Trustee under such circumstances as the Trustee shall deem necessary.

     7.02 Insurance by Trustee. Trustee shall obtain and maintain errors and omissions
insurance coverage in an amount not less than the amount required by Wyndham, or as may be required
by law.

     7.03 Compensation and Reimbursement of Trustee. For its services performed in
connection with the Trust, the Trustee shall receive a reasonable fee as may be agreed upon by
Wyndham and the Trustee. In addition, the Trustee shall be reimbursed for all costs and expenses
which the Trustee incurs from time to time (a) in operating and administering the Trust and the
Plan and operating, maintaining, repairing, and replacing the Trust Properties and (b) in
connection with any escrow which may be established (including without limitation, the escrow for
the OA Fees). It is expressly understood, however, that the Trustee is not required to take any
action resulting in any expense of any kind unless there are funds on deposit in the Program Fund
to pay such expense, or unless the Trustee receives a satisfactory written guarantee that such
expenses will be promptly paid.

15

 

     7.04 General and Permissive Acts.

     (a) Actions. The Trustee may commence or defend any actions at law or in
equity relating to the Trust, this Trust Agreement, the Plan or the Trust Properties. If a
court action should be instituted in connection with the Trust, this Trust Agreement, the
Plan and/or the Trust Properties or any part thereof, and the Trustee is named and served as
a party, the Trustee shall be reimbursed out of the Program Fund for all fees, expenses,
judgments and awards incurred in connection with such action. To the extent not prohibited
by law, this Trust Agreement, the Association’s Articles of Incorporation or the
Association’s By-Laws, the Trustee may also take any action deemed necessary by the Trustee
to manage the Trust Properties, to carry out the purposes for which the Trust was
established, to administer and/or operate the Plan (including the Trust and the
Association), to implement any of the terms or provisions of this Trust Agreement, or to
enhance the benefits of the Plan available to some or all of the Beneficiaries.

     (b) Employment of Others. The Trustee may employ counsel, accountants and such
other persons as in its judgment shall be necessary to perform, or to assist the Trustee in
performing, any of its duties as Trustee. Trustee shall not be liable to any Beneficiary
and shall be indemnified and held harmless by the Beneficiaries and the Trust (i) for the
default, defalcation or wrongdoing of any such person so employed by the Trustee, if Trustee
exercised due care in the selection of such person, or (ii) for any non-negligent action
taken or suffered by Trustee in good faith in reliance upon the instructions or advice of
any person so selected.

     (c) Compliance with Laws. The Trustee may do any and all things as may be
necessary to comply with all applicable laws, ordinances and regulations promulgated by any
governmental authority concerning the Trust, this Trust Agreement, the Plan and the Trust
Properties or any portion thereof, including, but not limited to, modifying, amending or
restating this Trust Agreement to comply with such laws, ordinances and regulations.

     (d) Execution of Documents. The Trustee may join with Wyndham or other
necessary parties, upon request, in executing any necessary amendment or supplement to, or
any restatement of, this Trust Agreement or any underlying Governing Instruments, documents,
plats, or similar documents.

ARTICLE VIII

TRUSTEE MAY NOT ENCUMBER PROPERTY

     8.01 Restrictions on Encumbrances. Trustee, in its capacity as Trustee under this
Trust Agreement, shall not encumber any of the Trust Properties or other assets of the Plan
(including the escrowed OA Fees), except to the extent of the lien or security interest in favor of
the Trustee for the payment of the Program Fees (as provided in Section 10.07 below); provided,
however, the Trustee shall not be restricted from accepting on behalf of the Trust a conveyance of
a Property Interest (or the Use Rights therein) which Property Interest has encumbrances or

16

 

other interests which are or may be prior to those of any Beneficiary provided the provisions
of ARTICLE VI, Section 6.01 (b) have been met.

ARTICLE IX

TRUSTEE LIABILITY

     9.01 Reliance on Opinion of Counsel. The Trustee and the Board of Directors may, in
the performance of any of its duties hereunder or in the taking of any action with respect to the
Trust or this Trust Agreement, rely upon the advice of counsel selected and employed by the
Trustee. The opinion of any such counsel with respect to the construction of this Trust Agreement
or the rights, obligations and powers of any person affected hereby shall constitute full
protection and be a justification to the Trustee and the Board of Directors for any action taken by
the Trustee or the Board of Directors in good faith in reliance on such opinion.

     9.02 Protection of Trustee and the Board. The Trustee and its Board of Directors are
hereby relieved of any and all liability to any Beneficiary for any losses to his interest
resulting from the Trustee or its Board of Directors acting in accordance with the terms hereof.
So long as the Trustee and its Board of Directors shall undertake to carry out their
responsibilities under this Trust Agreement in good faith, neither the Trustee nor any of the Board
of Directors shall be liable in damages or otherwise to the Beneficiaries or their representatives
or to any third party who may rely on the terms of this Trust Agreement. Trustee and its Board of
Directors shall not be required to verify the validity of any Purchase Agreement or Assignment
Agreement which is valid on its face. Neither the Trustee nor its Board of Directors guarantees to
any Member that said Member will be entitled to use or occupy any Accommodation available through
his Property Interest or any other Accommodation for which the Trust holds Use Rights. If any
dispute or difference arises between any of the Beneficiaries hereof and any third person or if any
conflicting demands shall be made upon the Trustee or its Board of Directors, Trustee or the Board
of Directors, as the case may be, shall not be required to determine the same or take any action;
but Trustee or the Board of Directors, as the case may be, may await settlement of the controversy
by final, appropriate legal proceedings or otherwise as it may require, or Trustee or the Board of
Directors, as the case may be, may file suit in interpleader in the applicable State Court for
Pulaski County, Arkansas or the Federal District Court for the Eastern District of Arkansas, for
the purpose of having the respective rights of the parties adjudicated and may deposit with said
court any and all Trust Properties held hereunder and any and all documents, contracts, accounts
and/or rights of any form or character. Upon institution of any such interpleader suit and upon
giving notice thereof to the parties thereto by personal service in accordance with the order of
the court or in accordance with the requirements of the laws of Arkansas, Trustee and its Board of
Directors shall be fully released and discharged from all further obligations hereunder with
respect to the property and documents so deposited.

     9.03 Payment by Trustee. Trustee may pay on demand, from the funds on deposit in the
Program Fund, any and all costs, damages, judgments, attorney’s fees, expenses, obligations and
liabilities of every kind and nature reasonably suffered or incurred in connection with (a) the
interpretation of this Trust Agreement or any amendments or supplements to, or restatements of,
this Trust Agreement, (b) the taking of any action or acts taken pursuant to this Trust Agreement,

17

 

as it may be amended and/or restated from time to time, in order to establish the validity of
same, (c) the institution by the Trustee of any interpleader in accordance with the terms of this
Trust Agreement or (d) any other proceeding to which the Trustee is made a party and which relates
to the Trust, this Trust Agreement, the Plan or the Trust Properties.

ARTICLE X

FAIRSHARE PLUS ASSESSMENT; PROGRAM FUND

     10.01 FairShare Plus Assessment. Each Member other than Wyndham is required to pay
the FairShare Plus Assessment. The FairShare Plus Assessment consists of the sum of the Program
Fee and the OA Fee, each of which will be determined on an annual basis prior to the beginning of
each year. Upon receipt of the FairShare Plus Assessment, the OA Fee shall be deposited in the
Escrow Account and the Program Fee shall be deposited in the Program Fund.

     10.02 Program Fee.

     (a) Amount. The amount of the Program Fee shall be determined by the Trustee
as needed to cover the cost of the operation and administration of the Plan (including the
operation and administration of the Trust and the Association and, to the extent that the
Trust is responsible therefor, the operation, maintenance, repair and replacement of the
Trust Properties). The Trustee may establish varying fees among Members provided there is a
reasonable basis for such a fee structure. The Program Fee shall be determined prior to
January 1 of each year in connection with the budget process for the Plan.

     (b) Use. The Program Fee will be used by the Trustee to fund the operation and
administration of the Plan (including, the operation and administration of the Trust and the
Association and, to the extent that the Trust is responsible therefor, the operation,
maintenance, repair and replacement of the Trust Properties).

     10.03 OA Fees.

     (a) Amount. Each Member’s OA Fee shall be equal to the sum of all annual
amounts, including without limitation recreation, maintenance and reserve fees and
assessments and real estate taxes (to the extent payable through the OA), that each such
Member agreed to pay the OA which governs the Property Interest which such Member used as
the basis for his Membership. The amount of the OA Fee will be determined by each Member’s
respective OA and not by the Trustee. The amount of the OA Fee will vary from Member to
Member as determined by the board of directors or other governing or managing authority of
the OA which governs such Member’s Property Interest.

     (b) Use. The OA Fee will be collected by the Trustee in accordance with the
terms of each Member’s Purchase Agreement and/or Assignment Agreement and held in the Escrow
Account for each such Member until the OA Fee is due to each such Member’s respective OA.
This fee will be paid by the Trustee to the applicable OA on or

18

 

before the date the fee is due, on behalf of each Member that has fully deposited his
or her OA Fees in the Escrow Account. The OA Fee will be collected by the Trustee on behalf
of the Member and neither the Trustee nor the Plan Manager shall have any discretionary
power over the disposal or use of the OA Fee.

     (c) Escrow Account. All OA Fees will remain in the Escrow Account until paid
to the appropriate OA.

     10.04 Method of Payment. FairShare Plus Assessments may be paid annually or in
monthly installments. Members who elect to pay their FairShare Plus Assessments on an annual basis
must pay for an entire twelve-month period in advance of the date that their OA Fee is due to their
respective OAs.

     10.05 Escrow Account. Funds on deposit in the Escrow Account may from time to time be
invested in accordance with the Trust’s investment policy. Investment income, if any, shall be
used by the Trustee to offset the Program Fees for the year or years following the year in which
the investment income is recorded.

     10.06 Special Assessments.

     (a) Program Fees. The determination of the amount of the Program Fee will be
based upon the best available information at the time of the preparation of the budget for
the Plan. Members will be required to pay or reimburse the Trustee in the event that for
any year the total amount of Program Fees due from all Members is not sufficient to pay all
expenses of administration and operation of the Plan (including administration and operation
of the Trust and the Association and, to the extent that the Trust is responsible therefor,
operation, maintenance, repair and replacement of the Trust Properties) for that year.
Adjustments, if any, to cover such shortfalls will be allocated among Members in an
equitable fashion as determined by the Board of Directors of the Trustee in its sole
discretion.

     (b) OA Fees. To the extent not then known, the OA Fees will be estimated at
the beginning of each year based upon the best available information at the time of the
determination of the FairShare Plus Assessment. The amounts due for the OA Fees will be
adjusted at the end of each year upon receipt of the invoices for the actual amounts of the
fees due the OAs and each Member will be billed for any increase in his OA Fees on or about
January 31 of the following year. Any surplus resulting from a decrease in any Member’s OA
Fees will be held in the Escrow Account and used by the Trustee to offset the amount due
from that Member for his OA Fees for the following year. Refunds may be requested by a
Member if the amount of such Member’s “excess” OA Fees held in the Escrow Account exceeds
five percent (5%) of the anticipated OA Fee for the next year.

     10.07 Delinquent Payment of FairShare Plus Assessment. A Member shall be deemed to be
delinquent in the payment of his FairShare Plus Assessment or any installment thereof if such
Member shall fail to pay the delinquent amount within thirty (30) days of the date that the Trustee
(or the Plan Manager on behalf of the Trustee) sends written notice thereof.

19

 

Once a Member is so delinquent, as provided in Section 11.07 below, such Member shall no
longer be entitled to use his Points in the Plan unless and until such delinquency is cured. In
addition, the Trustee shall have (and each Member, by acquiring a Property Interest subject to this
Trust Agreement or by assigning to the Trust the Use Rights in his Property Interest, shall be
deemed to have granted to the Trustee) a lien or security interest in such Member’s Use Rights (or
Property Interest) to the extent of the portion of the delinquency that constitutes Program Fees,
which lien or security interest shall, in all respects, be subordinate to the lien or security of
the underlying OA to the extent of the portion of the delinquency that constitutes OA fees and to
the lien or security interest of any lender who has a previously recorded or perfected lien or
security interest on such Member’s Property Interest. Upon the occurrence of a delinquency, the
Trustee is hereby authorized to take all steps necessary to perfect its lien or security interest
and to enforce its lien or security interest in any manner permitted by applicable law, including,
but not limited to, a suit at law or a power of sale or enforcement of its lien or security
interest in the manner provided for under applicable law.

     10.08 Withdrawal from Trust. In the event a Member withdraws his Property Interest
(or the Use Rights therein) from the Trust for any reason, such Member shall be entitled to receive
a refund of the prepaid OA Fee held in the Escrow Account on his behalf. The amount of the refund
shall equal the balance of the withdrawing Member’s prepaid OA Fees less any administrative fees
charged by the Trustee and/or the Plan Manager in connection with such withdrawal. Program Fees
are not refundable.

     10.09 Payment History. Each Member may request a payment history report from the
Trustee showing receipts and disbursements related to such Member’s Membership; provided, however,
no more than two such reports may be requested in any twelve (12) month period without an
additional administrative charge.

     10.10 Member Directions Regarding OA Fees. Each Member by acquiring a Property
Interest previously subjected to this Trust Agreement or by assigning to the Trust the Use Rights
in his Property Interest is deemed to have instructed the Trustee to collect the OA Fees, deposit
such amount in the Escrow Account and remit them when due to the appropriate OA which instruction
shall be irrevocable unless and until such Member withdraws his Property Interest (or the Use
Rights therein) from the Trust.

ARTICLE XI

TRUST PROPERTY RESERVATIONS

     11.01 Directory. Set forth below in summary form are certain of the most important
features of the Plan. The rules, regulations, guidelines, policies and procedures related to the
allocation of Points to the Trust Properties and the use of Points by Members in connection with
the Trust Properties and the Plan are fully described in the Directory. In the event of a conflict
between the information described in this Article XI and the information set forth in the
Directory, the information set forth in the Directory shall be controlling. Wyndham, in its sole
discretion, reserves the right to amend the Directory and the provisions therein from time to time
as may be necessary to implement the Plan.

20

 

     11.02 Use Year. All Members shall be assigned a “Use Year” which determines the
expiration date of such Member’s Points for that particular year. Each Member shall have as the
end date of his “Use Year” one of the following four quarterly dates: March 31, June 30, September
30 or December 31.

     11.03 Reservations. The rules, regulations and guidelines concerning reservations and
exchanges shall be set forth in the Directory. Reservations canceled thirty (30) days or more
prior to the first day of intended use shall not result in a loss of Points. Reservations canceled
less than thirty (30) days prior to the first day of intended use shall affect the use of the
Member’s Points in the manner described in the Directory (and may include the loss of the Points
used by the Member for the reservation.)

     11.04 Wait List. A “wait list” system has been established by the Trustee for those
Members who desire reservation dates that are unavailable and who want to be on a list in the event
there are cancellations. The Trustee may charge a fee for the maintenance of the “wait list”,
which fee may change, without any guarantee that the reservation date requested will become
available. Use of the “wait list”, however, does not prevent a Member from making other
reservations during the time such Member might be on the “wait list”.

     11.05 Rotating Priority List. Holidays and other high demand vacation periods are a
popular vacation time at many of the Accommodations. Accordingly, a Rotating Priority List may be
established by the Trustee to provide all Members the opportunity to enjoy their choice of
Accommodations during such time periods. The rules, regulations and guidelines for the Rotating
Priority List are set forth in the Directory.

     11.06 The Points Credit Pool. The Trustee has established a “Points Credit Pool” for
the deposit of certain qualified Points that will not be used by a Member. The rules, regulations,
guidelines and restrictions for the Points Credit Pool are set forth in the Directory.

     11.07 Delinquent Assessments. The Trustee reserves the right to prohibit a Member
from utilizing his Points to reserve or use Accommodations, in the event of a delinquency in the
payment of any amounts due to Wyndham or any other seller, lender or lienholder related to such
Member’s Property Interest or Points, or in the event of a delinquency in the payment of the
FairShare Plus Assessment to the Trustee or the payment of any amounts due from such Member to a
OA.

     11.08 Wyndham Use. In addition to the right of Wyndham, as a Member and owner of
Points, to make reservations using those Points at any time, Wyndham, in its capacity as the
developer of resort communities and Vacation Plans, may reserve available Accommodations up to 60
days in advance of the first day of anticipated occupancy, for its own purposes, including renting
to the public, provided it pays or otherwise causes a third party to pay the occupancy related
expenses of such Accommodations for each night to be used. All such occupancy related expenses
shall be determined by the Trustee. As a result of Wyndham’s use there will be less space
available for Member use; however, Wyndham may not reserve the last 10% of available occupancy for
a type of Accommodation until 30 days prior to the first day of intended use. In addition, to the
extent more Points are available in the Plan than are allocated to Members other

21

 

than Wyndham, Wyndham may sell or lease Points on such terms as Wyndham and the Trustee deem
reasonable. The purchasers or lessees of such Points shall have such Membership rights as Wyndham
and the Trustee deem appropriate.

     11.09 Presales. In the event Wyndham presells Property Interests with proper
regulatory approval and the purchaser of such Property Interest has subjected such Property
Interest (or the Use Rights therein) to this Trust Agreement, such Purchaser shall be entitled to
reserve Accommodations prior to the time the Accommodation(s) in the Vacation Plan in which such
purchaser has purchased a Property Interest is/are available for occupancy, if the Trustee has
determined that Accommodations available in the Plan are sufficient to accommodate such purchaser.
Should the Trustee determine that there are insufficient Points available in the Plan to
accommodate a purchaser who has purchased and subjected to this Trust Agreement a Property Interest
(or the Use Rights therein) in a Vacation Plan, the Accommodation(s) of which is/are not available
for use, said purchaser shall not be entitled to reserve Accommodations until such time as said
Accommodation(s) is/are available for occupancy.

     11.10 Additional Exchange and Other Programs.

     (a) Internal. Wyndham may develop an internal exchange program for Members by
which the Members may reserve time in Vacation Plans outside of the Vacation Plans
applicable to the Trust Properties. Wyndham may enter into agreements with one or more
affiliated or unaffiliated resorts or resort developers at resorts whose Vacation Plan or
Vacation Plans are not a part of the Vacation Plans applicable to the Trust Properties
and/or one or more affiliated or unaffiliated owners/developers of hotel and non-timeshare
resort properties which may provide additional Vacation Units that Members would be able to
utilize. Finally, Wyndham may also enter into agreements with the developers of other types
of programs or experiences (such as motor homes, houseboats, etc.,) which Members would be
able to utilize. The number and location of available resorts and types of vacation and
travel programs and experiences will change from time to time as set forth in the Directory
and availability will be subject to the provisions of the Plan Manager’s reservation system.
Wyndham may charge a fee for each transaction it consummates on behalf of a Member, which
fee will be subject to change. Wyndham’s internal exchange system, called “FAX”, may be
made available to Members who wish to use their Points to reserve time in Vacation Units
which are included in the “FAX” exchange network but are not available through the Plan.
Wyndham may charge a fee, which will be subject to change, for each transaction which
involves an exchange into the “FAX” exchange network. Persons who have acquired Property
Interests in other Wyndham resorts and who are therefore entitled to the privileges of the
“FAX” exchange network may also be entitled to exchange the Use Rights attributable to their
Property Interests for use of Accommodations in the Plan, but such persons who are members
of the “FAX” exchange network and who wish to exchange for Accommodations in the Plan may
not submit reservations more than seven months in advance of their requested use period and
they must have banked their Property Interest with FAX in advance of making such reservation
request. All Points which Members use to avail themselves of any of the foregoing
“internal” exchanges or programs shall be deemed to belong to Wyndham for the Use Year
attributable to such

22

 

Points and Wyndham shall be entitled to use such Points in the same fashion as any
other Member, including, without limitation, making reservations for Accommodations and
renting out those Accommodations to the public.

     (b) External. An external exchange program may from time to time be available
to qualified Members. Each Member, however, must determine whether he is eligible and
desires to become a member of such external exchange program. Each participating Member
will be required to pay any fees associated with membership in or the use of any such
external exchange program. These external exchange programs are independent companies with
no affiliation or relationship to Wyndham, other than RCI, LLC (“RCI”), which is a
subsidiary of Wyndham Worldwide Corporation (“WWC”), WWC being the parent company of
Wyndham. The guidelines for exchanging through an external exchange company are subject to
change and, when available, will be set forth in the Directory.

     (c) Availability of Exchange. Wyndham does not guarantee to the Members that
any exchange as set forth in the exchange programs referenced above will be available to the
Members.

     11.11 Priority Reservation Rights. The Trustee may establish different rules and
reservation rights for Members based upon (a) levels of Points owned, or (b) the location of the
Accommodations available through the Property Interest purchased by a Member, or (c) the specific
Use Rights assigned to the Trust, or (d) any other criteria determined by Trustee. Such rules and
reservation rights, including priorities, fees, reservation periods, and other policies, guidelines
and restrictions shall be set forth in the Directory.

ARTICLE XII

OTHER RIGHTS AND RESPONSIBILITIES OF MEMBERS

     12.01 Sale or Transfer. A Member may sell or otherwise transfer his Property Interest
and Points provided such Member gives notice to the Trustee at the address specified herein and
provided further that the Points allocated to a Property Interest (or the Use Rights therein) may
not be sold separate from such Property Interest. A Member may not transfer his Property Interest
nor permit others to use the Points associated therewith unless such Member is current in the
payment of his FairShare Plus Assessment. The transfer of a Property Interest and the Points
associated therewith may not result in a Member owning less than the minimum number of Points
needed to reserve one week in an Accommodation. A Member desiring to transfer his Property
Interest must also obtain the written consent of Wyndham, which consent may be withheld if the
Member is delinquent in the payment of any obligations then due Wyndham under his Purchase
Agreement, or under a mortgage, deed of trust or other security instrument encumbering his Property
Interest, or if the terms and conditions of the Member’s Assignment Agreement prohibit the sale,
conveyance or transfer of the Membership to persons other than Wyndham. Wyndham and/or the Plan
Manager has the right, in its discretion, to charge the purchaser a reasonable transfer fee for
documenting the transfer of a Property Interest and the appurtenant Points.

23

 

     12.02 No Sale Assistance. The Trustee and Wyndham have no obligation to repurchase or
assist a Member with the sale of his Property Interest and the Points associated therewith.

ARTICLE XIII

MEMBERSHIP IN THE FAIRSHARE VACATION

OWNERS ASSOCIATION AND OTHER OWNERS ASSOCIATIONS

     13.01 Fairshare Vacation Owners Association. As noted above, all Members are also
“Members” of the Association and are entitled to one vote at all Association meetings held in
accordance with the Association’s By-Laws without regard to the number of Points allocated to such
Member. If there are multiple owners of a Membership, then the multiple owners shall designate one
owner as the Voting Member and such Members shall be required to advise the Trustee of his
selection. All Members are eligible to be members of the Board of Directors pursuant to the
provisions set forth in the Articles of Incorporation and By-Laws of the Association. Any Member
who is a member of the Board of Directors will pay his own expenses involved in traveling to and
from the location of Board meetings. In addition, Wyndham shall be a Member of the Association.

     13.02 OA. All Members shall remain or become members of the OA that governs their
respective Property Interests, if applicable, and may also be members of the site or master
association should one exist. Where allowed by law, each Member (with the exception, unless
otherwise agreed between the Trustee and the respective OA, of those Members owning Property
Interests in Vacation Plans which have not been developed by Wyndham, either as primary developer
or as a co-developer with another entity), by executing an Assignment Agreement or a contract or
accepting a deed for a Property Interest subject to this Trust Agreement, shall, if the Assignment
Agreement or the contract or deed expressly so provides, delegate to the Voting Designee the
authority to exercise any voting privileges such Member may have in the OA having jurisdiction over
his Property Interest. Each Member who has so delegated his/her voting privileges also agrees to
execute any additional documentation that may be requested from time to time by the Trustee to
further evidence or continue the effectiveness of such delegation. In exercising the voting
privilege of a Member, the Voting Designee agrees in its reasonable discretion to act at all times
in the best interest of the Member. The Voting Designee agrees that it will notify the Member and
vote as directed by the Member in writing on the following issues:

     (a) Waiver of Material Rights. Waiver of any material rights of the OA or of
the Members against the Plan Manager, Wyndham or a Third Party;

     (b) Fee Increases. Any increase in the OA’s annual maintenance fee or common
expense in excess of 115% of the previous year’s budget, excluding reserves; or

     (c) Termination. Voluntary termination of the timeshare, condominium or
townhouse regime or any proposal not to reconstruct any unit or common element after
destruction or casualty.

24

 

     The Voting Designee shall serve in such capacity until such time as the Property Interest or
the Use Rights therein is/are no longer subject to the terms of this Trust Agreement. All OA Fees
shall remain the personal obligation of Member, its heirs, successors or assigns; provided,
however, it is agreed that all OA Fees shall be paid to the Trustee and held in the Escrow Account
on behalf of the Member until such amount is due to the OA.

     13.03 Payment of Delinquent FairShare Plus Assessments. Neither the Plan Manager, the
Trustee, the Association nor Wyndham shall be responsible for paying any FairShare Plus Assessments
or any delinquencies in any FairShare Plus Assessments.

ARTICLE XIV

MISCELLANEOUS

     14.01 Construction of Trust Agreement. Nothing contained herein shall preclude the
Trustee or any Beneficiary from the right to judicial construction of any of the terms to this
Trust Agreement. This Trust Agreement shall be construed in accordance with the laws of the State
of Arkansas. This Trust Agreement shall be interpreted liberally in favor of an interpretation
which will give this Trust Agreement full force and effect. Any action brought to enforce the
terms or interpret any provision of this Trust Agreement or any other action in any manner relating
to the Trust, the Trustee, the Trust Properties or the Plan shall be brought in the State Courts in
Orange County, Florida or the Federal District Courts for the Middle District of Florida.

     14.02 Arbitration. The Trustee may, upon request by all Members involved, arbitrate
disputes arising between Members concerning the use and occupancy of Trust Properties and the
interpretation of this Trust Agreement. The parties agree to abide by the findings of the Trustee.

     14.03 Severability. In the event any one or more of the phrases, sentences, clauses
or paragraphs contained herein should be invalid, this Trust Agreement shall be construed as if
such invalid phrase or phrases, sentence or sentences, clause or clauses, and paragraph or
paragraphs had not been inserted, and the remaining provisions will therefore be valid and fully
enforceable in accordance with the terms thereof.

     14.04 Notice to the Parties. Except for notices of Association meetings, any other
notice to be given to a Beneficiary shall be given by certified mail, return receipt requested,
addressed to the post office address last shown on the records of the Trustee or the Plan Manager.
Every notice so given shall be effective from the date of the mailing of such notice and the date
of the mailing of such notice shall be the date such notice is deemed given for all purposes.
Notices of Association meetings shall be given in accordance with the requirements of the By-Laws.

25

 

     Notice to be given to the Plan Manager or the Trustee shall be given by certified mail, return
receipt requested to the following address:

	 	 	 
	Plan Manager FairShare Vacation Plan

	 	Trustee
	Wyndham Vacation Resorts, Inc.

	 	Fairshare Vacation Owners Association
	8427 SouthPark Circle

	 	8427 SouthPark Circle
	Orlando, Florida 32819

	 	Orlando, Florida 32819
	Attention: President

	 	Attention: President

     14.05 Amendments. The Trustee, with the consent of Wyndham, may amend this Trust
Agreement in writing from time to time and shall have the right, but not the obligation, to cause
any such amendment to be recorded in the Recording Offices of all counties in which Property
Interests (or the Use Rights therein) subject to this Trust Agreement are located (as well as in or
with all other Filing Offices). The Trustee, with the consent of Wyndham, may, from time-to-time,
add a Third Party or additional Wyndham subsidiary as a party to this Trust Agreement on terms and
conditions acceptable to the Trustee and Wyndham.

     14.06 Further Assurances. Any party to this Trust Agreement or any Beneficiary will
execute any additional document necessary or convenient to carry out the intent and purposes of the
parties to this Trust Agreement.

     14.07 Acceptance and Ratification by Members. All Members, by executing a Purchase
Agreement or an Assignment Agreement or by accepting a deed to a Property Interest subjected to
this Trust Agreement, shall be deemed to have accepted, and agreed to be bound by, the terms and
provisions of this Trust Agreement and the Management Agreement executed in connection herewith and
each Member, by making reservations through the Plan, paying his FairShare Plus Assessment and
otherwise using the Plan from time to time, shall be deemed to have ratified and confirmed his
prior acceptance of, and agreement to be bound by, this Trust Agreement and such Management
Agreement.

     14.08 Exchange Programs. The Trustee is authorized to enter into an agreement with
exchange programs for the exchange of occupancy rights in the Trust Properties.

     14.09 Extensions. This Trust Agreement shall be extended for successive ten (10) year
periods unless and until those Members entitled to cast at least 50% of the then total votes of all
Members vote, either at the annual meeting of the Association occurring during the last year of the
then expiring term or at a special meeting of the Association, in either event, held in accordance
with the terms of the By-Laws of the Association, to not extend the term of this Trust Agreement.

     14.10 Successors and Assigns. This Trust Agreement shall be binding upon and shall
inure to the benefit of the Beneficiaries (including the Members), their heirs, and permitted
successors and assigns, as well as the parties hereto, their successors and assigns. This Trust
Agreement may, as provided in Section 14.05 above, only be amended by the Trustee with the consent
of Wyndham.

26

 

     14.11 Miscellaneous. Unless the context of this Trust Agreement clearly requires
otherwise, references to the plural shall be deemed to include the singular and vice versa and
references to one gender shall be deemed to include all other genders. In furtherance of the
foregoing, any use of a masculine pronoun herein (such as “his”) shall be deemed to include the
feminine gender and the neuter (in the case of a corporation or other entity).

27

 

     IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Fairshare
Vacation Plan Use Management Trust Agreement as of the 14th day of March, 2008.

	 	 	 	 	 	 	 
	WYNDHAM VACATION RESORTS, INC.,
a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Gary T. Byrd
	 	 
	 	 	 	 	 
	 

	 	Its:
	 	Executive Vice President	 	 
	 

	 	 	 	 	 
	 

	 	Name (Printed)
	 	Gary T. Byrd
	 	(SEAL)
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	FAIRFIELD MYRTLE BEACH, INC.,
a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ George B. Hewes
	 	 
	 	 	 	 	 
	 

	 	Its:	 	Senior Vice President	 	 
	 

	 	 	 	 	 
	 

	 	Name (Printed)	 	George B. Hewes	 	(SEAL)
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	FAIRSHARE VACATION OWNERS ASSOCIATION,
an Arkansas nonprofit corporation, in its capacity as TRUSTEE	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Brian D. Keller
	 	 
	 	 	 	 	 
	 

	 	Its:	 	President	 	 
	 

	 	 	 	 	 
	 

	 	Name (Printed)
	 	Brian D. Keller
	 	(SEAL)
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	WYNDHAM VACATION RESORTS, INC.,
a Delaware corporation, in its capacity as PLAN MANAGER	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Gary T. Byrd
	 	 
	 	 	 	 	 
	 

	 	Its:
	 	Executive Vice President	 	 
	 

	 	 	 	 	 
	 

	 	Name (Printed)
	 	Gary T. Byrd
	 	(SEAL)
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	FAIRSHARE VACATION OWNERS ASSOCIATION,
an Arkansas nonprofit corporation	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Brian D. Keller
	 	 
	 	 	 	 	 
	 

	 	Its:
	 	President	 	 
	 

	 	 	 	 	 
	 

	 	Name (Printed)
	 	Brian D. Keller
	 	(SEAL)
	 

	 	 	 	 	 	 

28

 

ACKNOWLEDGMENT

	 	 	 
	STATE OF FLORIDA
	 	)
	 
	 	) SS. 
	COUNTY OF ORANGE
	 	)

     On February 26, 2008 before me, the undersigned, a Notary Public in and for said State,
personally appeared Gary T. Byrd personally known to me or proved to me on the basis of
satisfactory evidence to be the person who executed the within named instrument as Executive
 Vice President of Wyndham Vacation Resorts, Inc., a Delaware corporation, executed same in
accordance with a resolution of the Board of Directors of the corporation or the corporate by-laws.

     WITNESS my hand and official seal.

	 	 	 	 	 
	Signature
	 	/s/ Anna L. Walton	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Anna L. Walton
	 	 
	 	 	 
	Notary’s Name (Typed or Printed)	 	 

	 	 	 
	STATE OF FLORIDA
	 	)
	 
	 	) SS. 
	COUNTY OF ORANGE
	 	)

     On February 26, 2008 before me, the undersigned, a Notary Public in and for said State,
personally appeared George B. Hewes personally known to me or proved to me on the basis of
satisfactory evidence to be the person who executed the within named instrument as Senior Vice
President of Fairfield Myrtle Beach, Inc., a Delaware corporation, executed same in accordance with
a resolution of the Board of Directors of the corporation or the corporate by-laws.

     WITNESS my hand and official seal.

	 	 	 	 	 
	Signature
	 	/s/ Anna L. Walton	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Anna L. Walton
	 	 
	 	 	 
	Notary’s Name (Typed or Printed)	 	 

 

 

ACKNOWLEDGMENT

	 	 	 
	STATE OF FLORIDA
	 	)
	 
	 	) SS. 
	COUNTY OF ORANGE
	 	)

     On February 26, 2008 before me, the undersigned, a Notary Public in and for said State,
personally appeared Brian D. Keller personally known to me or proved to me on the basis of
satisfactory evidence to be the person who executed the within named instrument as President of
Fairshare Vacation Owners Association, an Arkansas non-profit corporation, in its capacity as
“Trustee”, executed same in accordance with a resolution of the Board of Directors of the
corporation or the corporate by-laws.

     WITNESS my hand and official seal.

	 	 	 	 	 
	Signature

	 	/s/ Anna L. Walton
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Anna L. Walton
	 	 
	 	 	 
	Notary’s Name (Typed or Printed)	 	 

	 	 	 
	STATE OF FLORIDA
	 	)
	 
	 	) SS. 
	COUNTY OF ORANGE
	 	)

     On February 26, 2008 before me, the undersigned, a Notary Public in and for said State,
personally appeared Gary T. Byrd personally known to me or proved to me on the basis of
satisfactory evidence to be the person who executed the within named instrument as Executive
Vice President of Wyndham Vacation Resorts, Inc., a Delaware corporation, in its capacity as “Plan
Manager”, executed same in accordance with a resolution of the Board of Directors of the
corporation or the corporate by-laws.

     WITNESS my hand and official seal.

	 	 	 	 	 
	Signature

	 	/s/ Anna L. Walton
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Anna L. Walton
	 	 
	 	 	 
	Notary’s Name (Typed or Printed)	 	 

 

 

ACKNOWLEDGMENT

	 	 	 
	STATE OF FLORIDA
	 	)
	 
	 	) SS. 
	COUNTY OF ORANGE
	 	)

     On February 26, 2008 before me, the undersigned, a Notary Public in and for said State,
personally appeared Brian D. Keller personally known to me or proved to me on the basis of
satisfactory evidence to be the person who executed the within named instrument as President of
Fairshare Vacation Owners Association, an Arkansas non-profit corporation, in its capacity as
“Trustee”, executed same in accordance with a resolution of the Board of Directors of the
corporation or the corporate by-laws.

     WITNESS my hand and official seal.

	 	 	 	 	 
	Signature

	 	/s/ Anna L. Walton
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Anna L. Walton
	 	 
	 	 	 
	Notary’s Name (Typed or Printed)	 	 

 

 

The following EXHIBIT A was attached to the Second Amended and Restated

FairShare Vacation Plan Use Management Trust Agreement

EXHIBIT A

Original “FairShare Vacation Plan Use Management Trust Agreement”

Recorded in the following counties:

	 	 	 	 	 	 	 	 	 
	SITE	 	STATE	 	COUNTY OFFICE	 	DATE	 	BOOK, PAGE ET SEQ.
	Bay

	 	AR
	 	Cleburne Clerk of Court
	 	07/09/91
	 	Bk. Vol. 345, pp 675
	 

	 	AR
	 	Van Buren Clerk of Court
	 	07/09/91
	 	Doc. #91-3367
	Branson

	 	MO
	 	Taney Recorder of Deeds
	 	06/18/93
	 	Bk. 320, pp 4761
	Flagstaff

	 	AZ
	 	Coconino County Recorder
	 	07/11/91
	 	Doc. 1408, pp 544
	Glade

	 	TN
	 	Cumberland Office of
Register
	 	07/09/91
	 	Bk. 401, pp 648
	Harbour

	 	NC
	 	Craven Register of Deeds
	 	07/09/91
	 	Bk. 1288, pp 534
	Mountains

	 	NC
	 	Rutherford Register of Deeds
	 	07/08/91
	 	Bk. 579, pp 102
	Myrtle Beach

	 	SC
	 	Horry RMC Office
	 	07/10/91
	 	Bk. 1480, pp 726
	Nashville

	 	TN
	 	Davidson Office of Register
	 	10/11/94
	 	Bk. 9489, pp 981
	Ocean Ridge

	 	SC
	 	Colleton RMC Office
	 	07/12/91
	 	Bk. 529, pp 135

A-1

 

	 	 	 	 	 	 	 	 	 
	SITE	 	STATE	 	COUNTY OFFICE	 	DATE	 	BOOK, PAGE ET SEQ.
	Orlando

	 	FL
	 	Orange Comptroller
	 	04/28/95
	 	Bk. 4885, pp 2488
	 

	 	FL
	 	Osceola Clerk of Circuit Ct.
	 	03/24/93
	 	Bk. 1115, pp 2135
	Pagosa

	 	CO
	 	Archuleta Office of Recorder
	 	07/09/91
	 	Receipt. 180408
	Plantation

	 	GA
	 	Carroll Office of Clerk
	 	07/17/91
	 	D. Book 706, pp 312
	Sapphire Valley

	 	NC
	 	Jackson Register of Deeds
	 	07/10/91
	 	Bk. 782, pp 15
	 

	 	NC
	 	Transylvania Register of
Deeds
	 	07/16/91
	 	Bk. 341, pp 174
	Ventura

	 	CA
	 	Ventura Office of Recorder
	 	08/02/91
	 	Doc. #91-111853
	Williamsburg

	 	VA
	 	York Office of Clerk
	 	07/12/91
	 	Bk. 620, pp 260

A-2

 

RECORDED INFORMATION FOR

AMENDED AND RESTATED FAIRSHARE VACATION PLAN USE MANAGEMENT TRUST AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	BOOK AND PAGE, ET	 	 
	SITE	 	STATE	 	COUNTY	 	DATE	 	SEQ.	 	OFFICE
	Bay

	 	Arkansas
	 	Cleburne
	 	06/17/98
	 	Book 449, Page 451
	 	Circuit Clerk
	 

	 	Arkansas
	 	Van Buren
	 	06/05/98
	 	Document #9802893
	 	Circuit Clerk
	Branson

	 	Missouri
	 	Taney
	 	06/18/98
	 	Book 352, Page 3589
	 	Recorder
	Daytona

	 	Florida
	 	Volusia
	 	06/22/99
	 	Book 4448, Page 1125
	 	Clerk of the Court
	Destin

	 	Florida
	 	Okaloosa
	 	06/22/99
	 	Book 2213, Page 4999
	 	Clerk of Court
	 

	 	Florida
	 	Walton
	 	06/23/99
	 	Book 2034, Page 214
	 	Clerk of Court
	Durango

	 	Colorado
	 	La Plata
	 	05/31/02
	 	Reception #831285
	 	City of Clerk
	Flagstaff

	 	Arizona
	 	Coconino
	 	07/06/98
	 	Docket 2122, Page 214
	 	County Recorder
	Ft. Lauderdale

	 	Florida
	 	Broward
	 	03/12/98
	 	Book 27856, Page 727
	 	Recorder
	Glade

	 	Tennessee
	 	Cumberland
	 	05/11/98
	 	Book 1015, Page 2261
	 	Register of Deeds
	Harbour

	 	North Carolina
	 	Craven
	 	06/19/98
	 	Book 1635, Page 234
	 	Register of Deeds
	Las Vegas

	 	Nevada
	 	Clark
	 	05/13/98
	 	Book 970513, Instrument 1787
	 	County Recorder
	Mountains

	 	North Carolina
	 	Rutherford
	 	06/08/98
	 	Book 712, Page 822
	 	Register of Deeds
	Myrtle Beach

	 	South Carolina
	 	Horry
	 	05/18/98
	 	Book 2037, Page 1219
	 	Register of Deeds
	Nashville

	 	Tennessee
	 	Davidson
	 	05/12/98
	 	Book 10928, Page 959
	 	Register of Deeds
	Ocean Ridge

	 	South Carolina
	 	Colleton
	 	06/12/98
	 	Book 818, Page 01
	 	Clerk of Court
	Orlando

	 	Florida
	 	Orange
	 	05/01/98
	 	Book 5472, Page 2613
	 	Recorder
	 

	 	Florida
	 	Osceola
	 	04/30/98
	 	Book 1493, Page 738
	 	Clerk of Court
	Pagosa

	 	Colorado
	 	Archuleta
	 	04/28/98
	 	Reception #98003095
	 	Clerk of Circuit Court
	Plantation

	 	Georgia
	 	Carroll
	 	05/08/98
	 	Book 1044, Page 165
	 	Clerk of Court
	Sapphire Valley

	 	North Carolina
	 	Jackson
	 	04/27/98
	 	Book 993, Page 322
	 	Register of Deeds
	 

	 	North Carolina
	 	Transylvania
	 	05/15/98
	 	Book 431, Page 782
	 	Register of Deeds
	Sedona

	 	Arizona
	 	Yavapai
	 	12/15/99
	 	Book 3717, Page 571
	 	Recorder
	Smoky Mountains

	 	Tennessee
	 	Sevier
	 	07/01/99
	 	Book M359, Page 64
	 	Register of Deeds
	Ventura

	 	California
	 	Ventura
	 	05/06/98
	 	Reception #98-070333
	 	County Recorder
	Washington DC

	 	Virginia
	 	City/Alexandria
	 	03/23/98
	 	Book 1634, Page 1995
	 	Clerk of Circuit Court
	Williamsburg

	 	Virginia
	 	York
	 	04/28/98
	 	Book 1009, Page 209
	 	Office of ClerkEX-10.1

 

EXECUTION COPY

FACILITY AGREEMENT

ATLAS AIR, INC.

as Borrower

NORDDEUTSCHE LANDESBANK GIROZENTRALE

as Original Lender and Facility Agent

BANK OF UTAH

as Security Trustee

Dated as of January 30, 2008

 

Five (5) Boeing 747-8F Aircraft

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	2	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	1.2 Construction.
	 	 	15	 
	1.3 Currency Symbols and Definitions
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II THE FACILITIES
	 	 	17	 
	 
	 	 	 	 
	2.1 The Loan Facility
	 	 	17	 
	2.2 Lenders’ Rights and Obligations
	 	 	17	 
	2.3 Purpose
	 	 	17	 
	2.4 Monitoring
	 	 	18	 
	 
	 	 	 	 
	ARTICLE III ADVANCES
	 	 	18	 
	 
	 	 	 	 
	3.1 Delivery of an Advance Request
	 	 	18	 
	3.2 Completion of an Advance Request
	 	 	18	 
	3.3 Amount
	 	 	18	 
	3.4 Lenders’ Participation
	 	 	19	 
	3.5 Evidence of Debt
	 	 	19	 
	 
	 	 	 	 
	ARTICLE IV INTEREST
	 	 	20	 
	 
	 	 	 	 
	4.1 Calculation and Payment of Interest
	 	 	20	 
	4.2 Interest Periods
	 	 	20	 
	4.3 Default Interest
	 	 	20	 
	4.4 Notification of Rates of Interest
	 	 	21	 
	4.5 Absence of Quotations
	 	 	21	 
	4.6 Market Disruption
	 	 	21	 
	4.7 Alternative Basis of Interest or Funding
	 	 	22	 
	4.8 Certificates and Determinations
	 	 	22	 
	4.9 Day Count Convention
	 	 	22	 
	 
	 	 	 	 
	ARTICLE V REPAYMENT
	 	 	22	 
	 
	 	 	 	 
	5.1 Repayment
	 	 	22	 
	5.2 Re-borrowing
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VI PREPAYMENT AND CANCELLATION
	 	 	22	 
	 
	 	 	 	 
	6.1 Partial Cancellation
	 	 	22	 
	6.2 Illegality
	 	 	22	 
	6.3 Relevant Purchase Agreement Event
	 	 	24	 
	6.4 Mandatory Prepayment
	 	 	24	 
	6.5 Voluntary Prepayment
	 	 	25	 
	6.6 Right of Repayment and Cancellation in Relation to a Single Lender
	 	 	25	 

i

 

	 	 	 	 	 
	 	 	Page	 
	6.7 Voluntary Reduction of Commitments
	 	 	25	 
	6.8 Restrictions
	 	 	25	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS PRECEDENT TO ADVANCES
	 	 	26	 
	 
	 	 	 	 
	7.1 Conditions Precedent to Initial Advance
	 	 	26	 
	7.2 Further Conditions Precedent to Each Advance
	 	 	28	 
	7.3 Benefit of Conditions and Waiver
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VIII REPRESENTATIONS AND WARRANTIES OF THE BORROWER
	 	 	29	 
	 
	 	 	 	 
	8.1 Status
	 	 	30	 
	8.2 Binding Obligations
	 	 	30	 
	8.3 Non Conflict with Other Obligations
	 	 	30	 
	8.4 Governmental Consents and Approvals
	 	 	30	 
	8.5 Financial Statements
	 	 	30	 
	8.6 Pari Passu Ranking
	 	 	31	 
	8.7 No Proceedings Pending or Threatened
	 	 	31	 
	8.8 No Relevant Event
	 	 	31	 
	8.9 Aircraft Purchase Agreement
	 	 	31	 
	 
	 	 	 	 
	ARTICLE IX REPRESENTATIONS AND WARRANTIES OF THE FINANCE PARTIES
	 	 	31	 
	 
	 	 	 	 
	ARTICLE X COVENANTS OF THE BORROWER
	 	 	32	 
	 
	 	 	 	 
	10.1 Authorizations
	 	 	32	 
	10.2 Compliance with Laws
	 	 	32	 
	10.3 Use of Advance
	 	 	32	 
	10.4 Negative Pledge
	 	 	32	 
	10.5 Recovery of Pre Delivery Payments
	 	 	32	 
	10.6 Lenders’ Purchase Price
	 	 	33	 
	10.7 Further Assurance
	 	 	33	 
	10.8 Merger
	 	 	33	 
	10.9 Aircraft Purchase Agreement
	 	 	33	 
	10.10 Financial Information
	 	 	34	 
	 
	 	 	 	 
	ARTICLE XI FEES AND EXPENSES
	 	 	35	 
	 
	 	 	 	 
	11.1 Facility Agent and Security Trustee Fees
	 	 	35	 
	11.2 Commitment Fee
	 	 	35	 
	11.3 Transaction Expenses
	 	 	36	 
	11.4 Amendment Costs
	 	 	36	 
	11.5 Enforcement Costs
	 	 	36	 
	11.6 No Double-Counting
	 	 	36	 
	 
	 	 	 	 
	ARTICLE XII GENERAL INDEMNIFICATION
	 	 	37	 
	 
	 	 	 	 
	12.1 Claims Defined
	 	 	37	 
	12.2 Claims Indemnified
	 	 	37	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	12.3 Claims Excluded
	 	 	38	 
	12.4 Insured Claims
	 	 	39	 
	12.5 Claims Procedure
	 	 	39	 
	12.6 Subrogation
	 	 	40	 
	12.7 Effect of Other Indemnities
	 	 	40	 
	12.8 Survival
	 	 	40	 
	 
	 	 	 	 
	ARTICLE XIII TAX INDEMNITIES
	 	 	41	 
	 
	 	 	 	 
	13.1 Taxes Indemnified
	 	 	41	 
	13.2 Taxes Excluded
	 	 	41	 
	13.3 Certain Agreements
	 	 	44	 
	13.4 Withholding on Payments
	 	 	48	 
	13.5 Survival
	 	 	50	 
	13.6 Non-Parties
	 	 	50	 
	 
	 	 	 	 
	ARTICLE XIV INCREASED COSTS, ETC.
	 	 	50	 
	 
	 	 	 	 
	14.1 Increased Costs
	 	 	50	 
	14.2 Certificate of Lenders
	 	 	52	 
	14.3 No Greater Obligation
	 	 	52	 
	 
	 	 	 	 
	ARTICLE XV OTHER INDEMNITIES
	 	 	52	 
	 
	 	 	 	 
	15.1 Currency Indemnity
	 	 	52	 
	15.2 Break Amounts
	 	 	53	 
	15.3 Indemnity to the Facility Agent
	 	 	54	 
	15.4 Enforcement Indemnity
	 	 	54	 
	 
	 	 	 	 
	ARTICLE XVI EVENTS OF DEFAULT
	 	 	54	 
	 
	 	 	 	 
	16.1 Events of Default
	 	 	54	 
	16.2 Exercise of Remedies
	 	 	56	 
	 
	 	 	 	 
	ARTICLE XVII THE SECURITY TRUSTEE
	 	 	57	 
	 
	 	 	 	 
	17.1 [Omitted]
	 	 	57	 
	17.2 Acceptance of Appointment
	 	 	57	 
	17.3 Duties and Responsibilities of the Security Trustee to the Finance Parties
	 	 	57	 
	17.4 Certain Rights of the Security Trustee
	 	 	59	 
	17.5 Application of Debt Service and Other Payment
	 	 	59	 
	17.6 Funds May Be Held by Security Trustee
	 	 	60	 
	17.7 Security Trustee Not Liable for Delivery Delays or Defects in the Aircraft or
Title or any Operative Document; May Perform Duties By other Finance Parties;
Reimbursement of Expenses; Holding of the Operative Documents; Monies Held in Trust
	 	 	60	 
	17.8 Persons Eligible for Appointment as Security Trustee
	 	 	61	 
	17.9 Resignation and Removal; Appointment of Successor Security Trustee
	 	 	61	 
	17.10 Acceptance of Appointment by Successor Security Trustee
	 	 	62	 
	17.11 Merger or Consolidation of Security Trustee
	 	 	63	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	17.12 Appointment of Additional and Separate Security Trustees
	 	 	63	 
	17.13 Dealing with Parties
	 	 	64	 
	 
	 	 	 	 
	ARTICLE XVIII THE FACILITY AGENT
	 	 	64	 
	 
	 	 	 	 
	18.1 Appointment of the Facility Agent
	 	 	64	 
	18.2 Duties of the Facility Agent
	 	 	65	 
	18.3 No Fiduciary Duties
	 	 	65	 
	18.4 Business with the Borrower
	 	 	65	 
	18.5 Rights and Discretions of the Facility Agent
	 	 	65	 
	18.6 Controlling Lenders’ Instructions
	 	 	66	 
	18.7 Responsibility for Documentation
	 	 	66	 
	18.8 Exclusion of Liability
	 	 	67	 
	18.9 Lenders’ Indemnity to the Facility Agent
	 	 	67	 
	18.10 Resignation of the Facility Agent
	 	 	67	 
	18.11 [Omitted]
	 	 	68	 
	18.12 Relationship with the Lenders
	 	 	68	 
	18.13 Credit Appraisal by the Lenders
	 	 	68	 
	 
	 	 	 	 
	ARTICLE XIX PAYMENT MECHANICS
	 	 	69	 
	 
	 	 	 	 
	19.1 Payments to the Security Trustee
	 	 	69	 
	19.2 Distributions by the Security Trustee
	 	 	69	 
	19.3 Distributions to the Borrower
	 	 	69	 
	19.4 Clawback
	 	 	70	 
	19.5 Partial Payments
	 	 	70	 
	19.6 Application of Security Proceeds
	 	 	70	 
	19.7 Payments to Lenders
	 	 	71	 
	19.8 Redistribution of Payments
	 	 	72	 
	19.9 Recovering Lender’s Rights
	 	 	72	 
	19.10 Reversal of Redistribution
	 	 	72	 
	19.11 Exceptions
	 	 	72	 
	19.12 No Set Off by the Borrower
	 	 	73	 
	19.13 Business Days
	 	 	73	 
	19.14 Currency of Account
	 	 	73	 
	 
	 	 	 	 
	ARTICLE XX THE FINANCE PARTIES; ASSIGNMENT BY LENDERS
	 	 	73	 
	 
	 	 	 	 
	20.1 Conduct of Business by the Finance Parties
	 	 	73	 
	20.2 Assignments and Transfers by the Lenders
	 	 	73	 
	20.3 Conditions of Assignment or Transfer
	 	 	74	 
	20.4 Limitation of Responsibility of Existing Lender
	 	 	74	 
	20.5 Procedure for Transfer
	 	 	75	 
	20.6 Disclosure of Information
	 	 	76	 
	20.7 Federal Reserve Pledge
	 	 	76	 
	20.8 Participations
	 	 	76	 

iv

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE XX INOTICES
	 	 	77	 
	 
	 	 	 	 
	21.1 Communications in Writing
	 	 	77	 
	21.2 Addresses
	 	 	77	 
	21.3 Delivery
	 	 	78	 
	21.4 Notification of Address and Fax Number
	 	 	78	 
	 
	 	 	 	 
	ARTICLE XXII MISCELLANEOUS
	 	 	78	 
	 
	 	 	 	 
	22.1 No Assignment by the Borrower
	 	 	78	 
	22.2 Set Off
	 	 	79	 
	22.3 Partial Invalidity
	 	 	79	 
	22.4 Remedies and Waivers
	 	 	79	 
	22.5 Amendments and Waivers
	 	 	79	 
	22.6 Waiver of Consequential Damages
	 	 	80	 
	22.7 Counterparts / Facsimile / PDF
	 	 	80	 
	22.8 Confidentiality
	 	 	80	 
	22.9 GOVERNING LAW; JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF
JURY TRIAL
	 	 	81	 
	22.10 USA Patriot Act
	 	 	82	 

	 	 	 
	SCHEDULE 1A

	 	Lenders
	SCHEDULE 1B

	 	Tranches
	SCHEDULE 2

	 	Aircraft Details
	SCHEDULE 3

	 	Pre Delivery Payments, Scheduled Delivery Dates and Borrower
Reimbursement Amounts
	SCHEDULE 4

	 	Anticipated Advance Dates and Amounts (No Doric Prepayment)
	SCHEDULE 5

	 	Anticipated Advance Dates and Amounts (Doric Prepayment)
	 
	 	 
	EXHIBIT A

	 	FORM OF TRANSFER CERTIFICATE
	EXHIBIT B

	 	FORM OF ADVANCE REQUEST

v

 

     THIS FACILITY AGREEMENT is dated as of January 30, 2008 and made by and among:

	(1)	 	Atlas Air, Inc., a Delaware corporation, as borrower (the “Borrower”);
	 
	(2)	 	Norddeutsche Landesbank Girozentrale, as the original lender (the “Original Lender”);
	 
	(3)	 	Norddeutsche Landesbank Girozentrale, as facility agent for and on behalf of the Lenders (the
“Facility Agent”); and
	 
	(4)	 	Bank of Utah, as security trustee for the Facility Agent and the Lenders (the “Security
Trustee”).

WITNESSETH:

     WHEREAS, the Borrower has entered into the Aircraft Purchase Agreement with the Aircraft
Manufacturer providing, inter alia, for the purchase of five (5) Boeing 747-8F, as more fully
described below;

     WHEREAS, the Borrower has previously made certain Pre Delivery Payments to the Aircraft
Manufacturer;

     WHEREAS, on the Initial Advance Date, the Borrower will borrow from the Original Lender an
amount equal to the Borrower Reimbursement Amount;

     WHEREAS, on each Advance Date thereafter, the Borrower will borrow from the Lenders an amount
necessary to finance certain Pre Delivery Payments (or portions thereof) required to be made under
the Aircraft Purchase Agreement on such date in respect of one or more Aircraft;

     WHEREAS, the Borrower and the Security Trustee will enter into the Security Documents, for the
benefit of the Finance Parties, to secure the payment and performance of the Secured Obligations;

     WHEREAS, the Guarantor will provide the Guarantee in favor of the Security Trustee, for the
benefit of the Finance Parties, of payment and performance of all obligations of the Borrower under
the Loan Documents; and

     WHEREAS, the Original Lender has agreed to provide certain pricing and other concessions
related to Aircraft 1 and Aircraft 2 in connection with the Doric Transaction;

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

 

 

ARTICLE I

DEFINITIONS AND INTERPRETATION

     1.1 Definitions. In this Agreement:

     “Advance” means each advance made by the Lenders under the Loan Facility pursuant to
and in accordance with the provisions of this Agreement or, at any time after each such advance has
been made, the principal amount thereof outstanding from time to time.

     “Advance Date” means, in relation to an Advance, the date on which such Advance is or
is to be made.

     “Advance Payment Base Price” means, in relation to an Aircraft, the Advance Payment
Base Price of such Aircraft, as set forth in Table 1 to the Assigned Aircraft Purchase Agreement as
of the date of execution thereof, as adjusted or amended from time to time.

     “Advance Request” means, in relation to a proposed Advance, a notice substantially in
the form of Exhibit B.

     “Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding
Company of that person or any other Subsidiary of that Holding Company.

     “After-Tax Basis” means, with respect to any payment to be received (actually or
constructively) by a person, the amount of such payment plus a further payment or payments so that
the net amount received (actually or constructively) by such person, after deducting from such
payments the amount of all Taxes imposed on such person by any government or taxing authority with
respect to such payments (net of any current credits, deductions or other Tax benefits arising from
the actual or constructive payment by such person of any amount, including Taxes, with respect to
the payment received or arising by reason of the receipt or accrual by such person of the payment
received) is equal to the original payment required to be received.

     “AGTA” has the meaning given to the term in the Consent and Agreement.

     “Aircraft” means any or all, as the context may require, of Aircraft 1, Aircraft 2,
Aircraft 3, Aircraft 4 and Aircraft 5.

     “Aircraft 1” means the Boeing 747-8F aircraft, which is the subject of the Aircraft
Purchase Agreement and this Agreement, identified as such and as more particularly described in
Schedule 2 (Aircraft Details), including the Airframe, Engines and Parts relating thereto, together
with, as the context permits, the aircraft and engine manuals, records and other technical
documents to be delivered therewith.

     “Aircraft 2” means the Boeing 747-8F aircraft, which is the subject of the Aircraft
Purchase Agreement and this Agreement, identified as such and as more particularly described in
Schedule 2 (Aircraft Details), including the Airframe, Engines and Parts relating thereto,
together with, as the context permits, the aircraft and engine manuals, records and other
technical documents to be delivered therewith.

2

 

     “Aircraft 3” means the Boeing 747-8F aircraft, which is the subject of the Aircraft
Purchase Agreement and this Agreement, identified as such and as more particularly described in
Schedule 2 (Aircraft Details), including the Airframe, Engines and Parts relating thereto, together
with, as the context permits, the aircraft and engine manuals, records and other technical
documents to be delivered therewith.

     “Aircraft 4” means the Boeing 747-8F aircraft, which is the subject of the Aircraft
Purchase Agreement and this Agreement, identified as such and as more particularly described in
Schedule 2 (Aircraft Details), including the Airframe, Engines and Parts relating thereto, together
with, as the context permits, the aircraft and engine manuals, records and other technical
documents to be delivered therewith.

     “Aircraft 5” means the Boeing 747-8F aircraft, which is the subject of the Aircraft
Purchase Agreement and this Agreement, identified as such and as more particularly described in
Schedule 2 (Aircraft Details), including the Airframe, Engines and Parts relating thereto, together
with, as the context permits, the aircraft and engine manuals, records and other technical
documents to be delivered therewith.

     “Aircraft Manufacturer” means The Boeing Company, a Delaware corporation.

     “Aircraft Purchase Agreement” means Purchase Agreement number 3134 dated as of
September 8, 2006 entered into between the Aircraft Manufacturer and the Borrower, including for
the avoidance of doubt all the attachments, exhibits and schedules thereto, which purchase
agreement incorporates the terms of the AGTA, but only insofar as the Aircraft Purchase Agreement
relates to the Aircraft.

     “Aircraft Purchase Agreement Security Assignment” means the Aircraft Purchase
Agreement Security Assignment entered into between the Borrower and the Security Trustee on or
about the date hereof.

     “Airframe” means, in relation to an Aircraft, such Aircraft (excluding the Engines
relating thereto), together with all Parts relating thereto.

     “Anticipated Pre Delivery Payments” means, in relation to an Aircraft, the Pre
Delivery Payments relating to such Aircraft to be made following the Initial Advance Date, each of
which payments are set forth in Schedule 3 (each, an “Anticipated Pre Delivery Payment”).

     “Applicable Margin” means:

     (i) in relation to the Doric Loans and prior to any Doric Prepayment Date, the Doric Margin;
and

     (ii) in relation to the Basic Loans, including any Doric Loans converted to Basic Loans on and
after the Doric Prepayment Date, the Basic Margin;

     provided, that if the Maturity Date for any Loan is more than six (6) months after the
Scheduled Delivery Date for the Aircraft relating to such Loan, the Applicable Margin for the

3

 

Tranche relating to such Aircraft shall be increased by 15 basis points per annum from and after
such six month period.

     “Assigned Aircraft Purchase Agreement” has the meaning given to the term “Assigned
Purchase Agreement” in the Consent and Agreement.

     “Authorization” means an authorization, consent, approval, resolution, license,
exemption, giving of notice, filing or registration.

     “Available Commitment” means, at any time and in relation to any Lender, its
Commitment at such time minus:

     (a) the amount of all Advances that have been made prior to such date and remain
outstanding; and

     (b) in relation to any Advance requested pursuant to an outstanding Advance Request,
the amount of its participation in such Advance.

     “Available Loan Facility” means, at any time, the aggregate of each Available
Commitment.

     “Availability Period” means, in relation to a Tranche, the period from and including
the date of this Agreement to and including the relevant Availability Termination Date.

     “Availability Termination Date” means, in relation to the Tranche relating to any
Aircraft: (i) in the case of Aircraft 1 and Aircraft 2, February 28, 2009, (ii) in the case of
Aircraft 3, April 30, 2009, (iii) in the case of Aircraft 4, May 31, 2009 and (iv) in the case of
Aircraft 5, July 31, 2009; provided, that the Availability Termination Date for any Tranche
will be extended by written notice of the Borrower to the Facility Agent for up to nine (9) months
if the projected Delivery Date for such Aircraft is extended beyond the Scheduled Delivery Date for
such Aircraft due to an Excusable Delivery Delay.

     “Basic Aircraft” means Aircraft 3, Aircraft 4, Aircraft 5 and, after the occurrence of
any Doric Prepayment Date, Aircraft 1 and Aircraft 2.

     “Basic Loans” means, in respect of a Basic Aircraft, the outstanding Loans relating to
such Basic Aircraft.

     “Basic Margin” means 1.35% per annum.

     “Boeing Termination Event” means (i) the casualty loss of any Aircraft prior to the
Delivery Date thereof, if such casualty loss causes the Aircraft Purchase Agreement to be
terminated with respect to such Aircraft or (ii) the beginning of any bankruptcy, insolvency or
other similar proceeding involving the Aircraft Manufacturer or the inability of the Aircraft
Manufacturer to pay its debt as it becomes due.

     “Borrower Pre Delivery Payments” means, in respect of an Aircraft, (i) the Pre
Delivery Payments for such Aircraft made prior to the Initial Advance Date by the Borrower
minus the

4

 

Borrower Reimbursement Amount for such Aircraft, as detailed in Schedule 3 and
(ii) any other amounts funded by or on behalf of the Borrower (other than Advances by a Lender
hereunder) in respect of Pre Delivery Payments, including but not limited to any other amounts
initially funded by the Lenders and later repaid by the Borrower in accordance herewith.

     “Borrower Reimbursement Amount” means, in respect of an Aircraft, the amount
identified as the “Borrower Reimbursement Amount” for such Aircraft in Schedule 3.

     “Break Amount” shall mean the amount, if any, required to be paid by the Borrower
under Section 15.2.

     “Business Day” means (i) a day (other than a Saturday or Sunday) on which banks are
open for general business in New York, Hannover and Salt Lake City, Utah and (ii) as relates to any
payment or prepayment of a Loan, any Quotation Date, LIBOR or any notice in relation to the
foregoing, a day on which banks are open for dealings in dollar deposits in the London interbank
market.

     “Change in Law” means (i) any change in, deletion from, amendment or addition to or
introduction of, any applicable law or official directive (whether or not having the force of law,
but in respect of which compliance by banks or other financial institutions in the relevant
jurisdiction is generally customary) or any change in the interpretation or administration thereof
by any court, tribunal or other competent authority in each case from that existing as at the date
of this Agreement and/or (ii) compliance with any request from or requirement of any central bank
or other fiscal, monetary or other authority (including, without limitation, a request or
requirement which affects the manner in which any Lender allocates capital resources to its
obligations hereunder), or the implementation of any risk based capital guideline or other similar
requirement (including implementation of the risk-based capital adequacy guidelines commonly known
as Basel II to the extent not reasonably foreseeable by such Lender on the Initial Advance Date),
in each case made after the date of this Agreement and whether or not any such request or
requirement has the force of law, but in respect of which compliance by banks or other financial
institutions in the relevant jurisdiction is generally customary.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Collateral” means the assets, property and rights expressed to be pledged, subjected
to security interests or assigned by, and the rights and powers given under and pursuant to, the
Security Documents.

     “Commitment” means:

     (a) at any time in relation to a Lender, the amount set forth opposite its name in
Schedule 1A (or as specified for such Lender in a Transfer Certificate);

     (b) in the case of any individual Aircraft, the “Tranche Amount” allocated to the
Tranche for such Aircraft as set out in Schedule 1B;

in each case, to the extent not cancelled or reduced under this Agreement.

5

 

     “Consent and Agreement” means the Boeing Consent and Agreement to Collateral
Assignment of Purchase Agreement entered into among the Aircraft Manufacturer, the Security Trustee
and the Borrower on or about the date hereof.

     “Controlling Lenders” means:

     (a) if no amount in respect of any Loan is then outstanding, a Lender or Lenders whose
Commitments aggregate more than fifty per cent (50%) of the Total Commitments; or

     (b) if any amount of the Loans is then outstanding, a Lender or Lenders whose Loans
then outstanding aggregate more than fifty per cent (50%) of the aggregate amount thereof.

     “Default” means any event or circumstance which would, with the expiry of any
applicable cure period, the giving of notice, the making of any relevant determination under the
Operative Documents or any combination of any of the foregoing, be an Event of Default.

     “Default Rate” means, in relation to any Unpaid Sum during any Interest Period
applicable to such Unpaid Sum, the rate, up to the maximum interest rate permitted under applicable
law, equal to the sum of (a) LIBOR for such Interest Period, plus (b) the Applicable Margin, plus
(c) two percent (2%) per annum.

     “Delivery Date” means, in relation to an Aircraft, the date on which title of such
Aircraft is actually transferred by the Aircraft Manufacturer to the Borrower or its permitted
designee pursuant to, and in accordance with, the provisions of the Aircraft Purchase Agreement.

     “Delivery Month Notice” means, in relation to an Aircraft, a written notice by the
Borrower to the Facility Agent specifying the Delivery Notice Date.

     “Delivery Notice Date” means, in relation to an Aircraft, the expected Delivery Date
for such Aircraft as specified in the Delivery Month Notice.

     “Doric” means Doric Asset Finance & Verwaltungs GmbH.

     “Doric Aircraft” means Aircraft 1 and Aircraft 2 (or either one of them as the context
requires) until such time as a Doric Prepayment Date occurs.

     “Doric Loans” means, in respect of a Doric Aircraft, the outstanding Loans relating to
such Doric Aircraft prior to the occurrence of a Doric Prepayment Date, it being understood that
from and after any Doric Prepayment Date the Doric Loans shall be converted to Basic Loans in
accordance with Section 6.4.3.

     “Doric Mandate Deed” means a deed dated December 16, 2007 between Doric and the
Original Lender.

     “Doric Margin” means 1.25% per annum.

6

 

     “Doric Prepayment Amount” means, in respect of each Doric Loan, an amount equal to
$12,805,889.00; provided, that if any of the expected Advances relating to Doric Loans as
set out on Schedule 5 have not been made prior to the Doric Prepayment Date, the Doric Prepayment
Amount shall be reduced on a pro rata basis so that after payment thereof the outstanding Doric
Loans reflect the advance rates relating to the Basic Loans.

     “Doric Prepayment Date” means, in respect of the Doric Aircraft, the first Interest
Payment Date after the first anniversary of the Closing Date if a Doric Trigger Event has occurred.

     “Doric Transaction” means the sale-leaseback transaction structured as a “German
GmbH & Co. KG” as outlined in a Purchase and Operating Lease Proposal dated November 15, 2007 to be
arranged by Doric for the Doric Aircraft.

     “Doric Trigger Event” means the occurrence of either of the following:

     (i) Doric and Borrower shall have failed to enter into a sale agreement and lease in
connection with the Doric Transaction on or prior to the first anniversary of the Initial Advance
Date; or

     (ii) Doric shall have definitively awarded the senior debt financing for the Doric Transaction
to a party other than the Original Lender, unless the Original Lender has declined to provide such
senior debt financing for any reason, including but not limited to any failure by Original Lender
to obtain credit committee approval or to exercise its matching rights under the Doric Mandate Deed
with respect to a proposal that is not regarded as being “off-market” or any change in market
conditions, other than a breach by Doric of the Doric Mandate Deed, the failure by Doric to fulfill
its conditions precedent to the obligations of Original Lender under the Doric Mandate Deed or the
occurrence and continuation of an Event of Default.

     “Engine Manufacturer” means General Electric Company.

     “Engines” means, in relation to an Aircraft, the four (4) General Electric GENX-2B67
engines installed or to be installed, as the context may require, on such Aircraft, together with
all Parts relating thereto.

     “ERISA” means the Employee Retirement Income Security Act of 1974 and the regulations
promulgated and rulings issued thereunder.

     “Event of Default” means any event or circumstance specified as such in Section 16.1
(Events of Default).

     “Excluded Taxes” shall mean, with respect to a Tax Indemnitee or any other recipient
of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) Taxes
imposed on or measured by its overall net income or capital (however denominated), franchise Taxes
imposed on it (in lieu of net income Taxes) and branch profits Taxes imposed on it, by a
jurisdiction (or any political subdivision thereof) as a result of the recipient being organized or
having its principal office or, in the case of a Lender, its Facility Office in such
jurisdiction and (b) in the case of a Non-U.S. Lender, (i) any U.S. federal withholding tax that is
imposed on

7

 

amounts payable to such Non-U.S. Lender at the time such Non-U.S. Lender becomes a party
hereto (or designates a new Facility Office), except (x) to the extent that such Non-U.S. Lender
(or its assignor, if any) was entitled, immediately prior to the time of designation of a new
Facility Office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 13.4 or (y) if such Non-U.S. Lender is an assignee
pursuant to a request by the Borrowers under Section 13.4(i), or (ii) is attributable to such
Non-U.S. Lender’s failure to comply with Section 13.4(d) or 13.4(f).

     “Excusable Delivery Delay” means any delay in the Scheduled Delivery Date for an
Aircraft that is not caused by the Borrower.

     “FAA” means the Federal Aviation Administration.

     “Facility Office” means the office or offices notified by a Lender to the Facility
Agent (and, in turn, by the Facility Agent to the Borrower) in writing on or before the date it
becomes a Lender (or, following that date, by not less than five (5) Business Days’ written notice)
as the office or offices through which it will perform its obligations under this Agreement.

     “Federal Reserve Bank” means any Federal Reserve Bank of the United States.

     “Fee Letter” means the letter agreement between the Borrower and the Original Lender,
pursuant to which the Borrower has agreed to pay Fees to the Lender.

     “Fees” means any commitment fee or other fee payable by the Borrower to any Finance
Party pursuant to or in relation to the transactions contemplated by the Loan Documents.

     “Finance Parties” means, together, the Lenders, the Facility Agent and the Security
Trustee (each, a “Finance Party”).

     “Finance Party Encumbrance” means any Security Interest created other than with the
written approval of the Borrower on the Collateral arising as a result of or in connection with
(a) claims against or affecting any Finance Party that are not related to the transactions
contemplated by the Operative Documents, (b) any act or omission of any Finance Party that is not
related to the transactions contemplated by the Operative Documents, or (c) Taxes (including claims
therefor) or other losses, costs or other expenses imposed on any Finance Party for which the
Borrower is not obligated to indemnify pursuant to this Agreement or any other Operative Document.

     “GAAP” means generally accepted accounting principles applicable in the United States
of America as in effect from time to time and as applied by the Guarantor in the preparation of its
public financial statements.

     “Governmental Body” means (a) any federal, state 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 Loan Documents or relating to the observance or
performance of the obligations of any of the parties to the Loan Documents.

8

 

     “Guarantee” means the Guarantee relating to the obligations of the Borrower under the
Loan Documents and entered into between the Guarantor and the Security Trustee on or about the date
hereof.

     “Guarantor” means Atlas Air Worldwide Holdings, Inc., a Delaware corporation.

     “Holding Company” means, in relation to a company or corporation, any other company or
corporation in respect of which it is a Subsidiary.

     “Illegality Event” means the occurrence of any of the following events or
circumstances:

     (a) it becomes unlawful or contrary to any applicable law for any party to any of the
Operative Documents to perform any of its material obligations under the Operative Documents
and/or to continue as a party to any of the Operative Documents; or

     (b) all or any material part of any Operative Document becomes void, illegal, invalid,
unenforceable or of limited force and effect.

     “Indemnitee” or “Indemnitees” means the Facility Agent, the Lenders, the
Security Trustee and each of their respective successors, permitted assigns, directors, officers,
employees and any Affiliate thereof.

     “Initial Advance” means the initial Advance under the Loan Facility equal to the
Borrower Reimbursement Amount.

     “Initial Advance Date” means the date of the Initial Advance.

     “Interest Payment Date” means, in relation to each Loan (1) prior to the Maturity Date
for the relevant Aircraft, the first day of each calendar month after the Advance Date for such
Loan and (2) the Maturity Date of such Loan; provided, that if any Interest Payment Date
falls on a day that is not a Business Day, such Interest Payment Date shall be the immediately
succeeding Business Day unless such succeeding Business Day would fall in the next calendar month
in which case such Interest Payment Date shall be the immediately preceding Business Day.

     “Interest Period” means (a) in relation to each Advance, each period determined in
accordance with Section 4.2 (Interest Periods), including any Stub Period, and (b) in relation to
an Unpaid Sum, each period determined in accordance with Section 4.3 (Default Interest).

     “Lender” means:

     (a) the Original Lender; and

     (b) any Permitted Transferee which has become a Party in accordance with Article XX
(The Finance Parties; Assignment by the Original Lender),

     which in each case has not ceased to be a Party in accordance with the terms of this
Agreement.

9

 

     “Lenders’ Purchase Price” has the meaning set forth in the Consent and Agreement.

     “LIBOR” means, for any Interest Period in relation to any Advance or any Unpaid Sum:

     (a) the Screen Rate for such Interest Period; or

     (b) if no Screen Rate is available for dollars or for such Interest Period, the
arithmetic mean of the rates (rounded up to the nearest 1/100th of one per cent) as supplied
to the Facility Agent at its request quoted by the Reference Banks to leading banks in the
London interbank market,

     as of 11.00 a.m. (London time) on the Quotation Date for the offering of deposits in dollars
and for a period comparable to the relevant Interest Period of such Advance or such Unpaid Sum, as
the case may be; provided, that, in the event that LIBOR is required to be determined in
respect of any Interest Period that has a duration of less than one month, “LIBOR” shall mean a per
annum rate equal to the Lenders’ cost of funding for such Interest Period, but only if such rate is
less than the rate calculated above for a one month period.

     “Loan” means, in relation to a Tranche, the aggregate of the Advances made or to be
made under the Loan Facility in relation to such Tranche in accordance with the provisions of this
Agreement (together, the “Loans”).

     “Loan Documents” means all of the Operative Documents other than the Assigned Aircraft
Purchase Agreement.

     “Loan Facility” has the meaning set forth in Section 2.1.1.

     “Long Stop Date” means, in respect of an Aircraft, the date that is nine (9) calendar
months following the Scheduled Delivery Date for such Aircraft.

     “Material Adverse Change” means a material adverse change in the Guarantor’s or the
Borrower’s business, operating or financial condition, that materially affects its ability to
perform its obligations under the Operative Documents.

     “Maturity Date” means, in relation to each Loan, the earlier of (i) the Delivery Date
of the Aircraft to which such Loan relates, and (ii) the last day of the month that is six (6)
months after the Scheduled Delivery Date for such Aircraft; provided, however that if an
Aircraft delivery is delayed beyond such (6) six-month period due to an Excusable Delivery Delay,
the Maturity Date for such Aircraft shall be the earlier of the Delivery Date of the Aircraft to
which such Loan relates or the Long Stop Date of such Aircraft.

     “Maximum Drawable Principal Amount” means:

     (a) in respect of each Doric Aircraft, a maximum of $61,864,200.00 for each Doric
Aircraft; and

10

 

     (b) in respect of the Basic Aircraft, a maximum of $48,439,669.00 for Aircraft 1 and
Aircraft 2 (subsequent to any Doric Prepayment Date), $48,695,240.00 for Aircraft 3,
$48,816,918.00 for Aircraft 4 and $49,072,489.00 for Aircraft 5.

     “Non-U.S. Lender” shall mean a Lender that is not a “United States person” as such
term is defined in Section 7701(a)(30) of the Code.

     “Operative Documents” means, together, this Agreement, the Fee Letter, the Assigned
Aircraft Purchase Agreement, the Security Documents and any other document designated as such by
the Facility Agent and the Borrower (each, an “Operative Document”).

     “Original Financial Statements” means the audited consolidated financial statements of
the Guarantor for the fiscal year ended December 31, 2006 and the unaudited consolidated financial
statements of the Guarantor for the fiscal quarter ended September 30, 2007.

     “Original Lender” has the meaning set forth in the Recitals of this Agreement.

     “Parts” means all appliances, parts, components, instruments, appurtenances,
accessories, furnishings and other equipment of whatever nature (other than (a) complete Engines or
engines and (b) cargo containers) which may from time to time be incorporated or installed in or
attached to or removed from (if not replaced) any Aircraft or any Engine.

     “Party” means a party to this Agreement.

     “Permitted Encumbrance” means, as relates to any Collateral:

     (a) any Security Interest expressly contemplated by the terms of any Operative Document
and/or granted in favor of one or more of the Finance Parties in connection with the
transactions expressly contemplated by the Operative Documents;

     (b) any Security Interest the creation of which has been expressly permitted in writing
by the Facility Agent (acting on the instructions of all the Lenders);

     (c) any Security Interest for Taxes either not yet due or being contested in good faith
by appropriate proceedings (and for which adequate reserves have been provided in accordance
with GAAP), so long as the continuing existence of such Security Interest during such
proceedings do not involve any material risk of the sale, forfeiture, seizure, detention or
loss of any of such Collateral or any interest therein;

     (d) any Security Interest arising out of any judgment or award against the Borrower or
Guarantor with respect to which an appeal or proceeding for review is being prosecuted
diligently and in good faith, so long as such Security Interest does not involve any
material risk of the sale, forfeiture, seizure, detention or loss of any of such Collateral
or any interest therein;

     (e) the interest of the Aircraft Manufacturer in any Aircraft;

11

 

     (f) any letter of intent or agreement (including any conditional loan, lease, purchase
or sale) entered into by Borrower in connection with the Doric Transaction or any other long
term financing of any Aircraft, which requires as a condition precedent to such financing
the satisfaction in full of all amounts owing in respect of the related Tranche; and

     (g) any Finance Party Encumbrance.

     “Permitted Investment” means each of (i) obligations of, or guaranteed by the United
States Government or agencies of either thereof entitled to the full faith and credit of the United
States Government, (ii) open market commercial paper of any corporation incorporated under the laws
of the United States of America or any member of the European Union rated at least P-1 or its
equivalent by Moody’s or at least A-1 or its equivalent by S&P, (iii) certificates of deposit
issued by commercial banks organized under the laws of the United States or any member of the
European Union or of any political subdivision thereof having a combined capital and surplus in
excess of $250,000,000.00 which banks or their holding companies have a rating of A or its
equivalent by Moody’s or S&P; provided, however, that the aggregate amount at any
one time so invested in certificates of deposit issued by any one bank shall not exceed 5% of such
bank’s capital and surplus, and (iv) repurchase agreements with any financial institution meeting
the standards set forth in clause (iii) above with any of the obligations described in clauses (i)
through (iii) as collateral; provided that any such investment shall be denominated in
Dollars and shall mature within 30 days from the date of making such investment.

     “Permitted Transferee” means a bank that (i) is or has been engaged in the aircraft
finance business, specifically in connection with pre delivery payment financing transactions and
(ii) has a Standard & Poor’s senior long term unsecured rating of not less than A- or a Moody’s
senior long term unsecured rating of not less than A3, in each case at the time of transfer.

     “Pre Delivery Payment” means, in relation to an Aircraft, each pre delivery deposit
payment (excluding for the avoidance of doubt the final installment of the purchase price payable
to the Aircraft Manufacturer in relation to such Aircraft on the Delivery Date of such Aircraft)
made or to be made pursuant to the Aircraft Purchase Agreement in relation to the Advance Payment
Base Price of such Aircraft to the Aircraft Manufacturer prior to the Delivery Date of such
Aircraft.

     “Pre Delivery Payment Dates” means, in relation to an Aircraft, the first New York
business day of the relevant months set forth in the first column of Schedule 3 (each, a “Pre
Delivery Payment Date”).

     “Purchase Agreement Termination Event” means any event or circumstance other than a
Boeing Termination Event which results in the termination of all or any part (including as to a
particular Aircraft) of the Assigned Aircraft Purchase Agreement in accordance with the provisions
thereof.

     “Quotation Date” means, in relation to any Interest Period, two (2) London Business
Days before the first day of that period.

12

 

     “Reference Banks” means the principal London offices of Norddeutsche Landesbank
Girozentrale, Citibank, N.A. and Barclays Bank plc, or such other banks as may be appointed by the
Facility Agent in consultation with the Borrower.

     “Relevant Event” means any of the following events or circumstances:

     (a) a Default; or

     (b any Purchase Agreement Termination Event with respect to an Aircraft as to which
there is an outstanding Advance.

     “Relevant Purchase Agreement Event” means a Boeing Termination Event or a Purchase
Agreement Termination Event.

     “Remarketing Expenses” means all costs, expenses (including legal fees and the fees
and costs of any technical or other advisers which either the Facility Agent or the Security
Trustee may deem necessary), losses, taxes, liabilities, obligations, fees incurred or suffered or
to be incurred or suffered, after the date hereof, by any of the Facility Agent, Security Trustee
or Lenders in relation to and including, without limitation, remarketing, reconfiguring,
repainting, insuring, storing, inspecting, transporting, maintaining, repairing, overhauling,
performing maintenance checks on, any Aircraft and/or any Engine or any part of any of them or in
relation to putting any Aircraft and/or any Engine or any part of any of them into a condition or
in the provision of goods and/or services required in relation to or to facilitate any proposed
sale or lease thereof.

     “Responsible Officer” means, with respect the Borrower or the Guarantor, any corporate
officer who, in the normal performance of his or her responsibilities, with respect to the subject
matter of any covenant, agreement or obligation of the Borrower or the Guarantor pursuant to any
Operative Document, would have responsibility for and knowledge of such matter and the requirements
of any Operative Document with respect thereto.

     “Scheduled Delivery Date” means, in relation to an Aircraft, the last day of the
Scheduled Delivery Month.

     “Scheduled Delivery Month” means, in relation to an Aircraft, the month set forth in
Schedule 3 for such Aircraft.

     “Screen Rate” means, for any Interest Period, the rate displayed on the LIBOR01 page
of the Reuters screen (rounded up to the nearest 1/100th of one per cent) on the
Quotation Date for such Interest Period. If the agreed page is replaced or service ceases to be
available, the Facility Agent may specify another page or service displaying the appropriate rate
after consultation with the Lenders and with the agreement of the Borrower (not to be unreasonably
withheld or delayed).

     “Secured Obligations” means all payment and performance obligations of the Borrower
owed to any of the Finance Parties under the Loan Documents, including, without limitation, the
principal of, and interest on, the Loans together with Break Amount and any expenses incurred in
connection with the exercise of remedies under the Security Documents.

13

 

     “Securities Act” means the Securities Act of 1933.

     “Security Documents” means the Aircraft Purchase Agreement Security Assignment, the
Consent and Agreement and the Guarantee (each, a “Security Document”).

     “Security Interest” means any encumbrance or security interest whatsoever, howsoever
created or arising including (without prejudice to the generality of the foregoing) any right of
ownership, security interest, mortgage, pledge, charge, encumbrance, lien, prior claim, assignment,
trust, statutory right in rem, title retention, attachment, levy, claim, right of possession or
detention, right of set off (but excluding any right of set off arising by way of operation of law)
or any agreement or arrangement having a similar effect to any of the foregoing.

     “Security Proceeds” means any and all amounts received by the Security Trustee in
respect of the enforcement or exercise of any claim, right or remedy in respect of or in connection
with the Collateral and all other amounts received by the Security Trustee in respect of the
enforcement or exercise of any claim, right or remedy in respect of or in connection with the
Collateral, including, but not limited to, (a) any proceeds from the disposition of all or part of
the Assigned Aircraft Purchase Agreement or the Aircraft after taking delivery thereof, whether
received in one lump sum or over a period of time (including, without limitation, under any lease
entered into by the Security Trustee pursuant to the foregoing) and (b) the proceeds of any action,
judgment or enforcement action collected by the Security Trustee under the Security Documents
(including, without limitation, any proceeds received from the Aircraft Manufacturer under the
Assigned Aircraft Purchase Agreement).

     “Stub Period” is defined in Section 4.2.2.

     “Subsidiary” means, in relation to any person, any other person:

     (a) which is controlled, directly or indirectly, by the first mentioned person;

     (b) more than half the issued share capital or other ownership interests of which is
beneficially owned, directly or indirectly by the first mentioned person; or

     (c) which is a Subsidiary of another Subsidiary of the first mentioned person,

     and for this purpose, a person shall be treated as being controlled by another if that other
person is able to direct its affairs and/or to control the composition of its board of directors or
equivalent body.

     “Tax” means all present and future fees (including, without limitation, license,
documentation and registration fees), taxes, levies, imposts, withholdings, deductions, duties or
charges of any nature whatsoever, and wheresoever imposed or withheld, including (without
limitation) value added tax or any other tax in respect of added value (including, without
limitation, goods and services, sales and harmonized sales taxes) and any franchise, transfer,
sales, use, business, occupation, excise, income, gross receipt, personal property, real property,
stamp or other tax, in each case imposed by any taxing or governmental authority or agency,

14

 

together with any penalties, additions to tax, fines or interest thereon (and “Taxes”
and “Taxation” shall be construed accordingly).

     “Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.

     “Tax Indemnitee” means the Security Trustee, the Lenders, the Facility Agent, any
Affiliate of any thereof, and the respective successors and permitted assigns of each of the
foregoing persons and shall also include any combined, consolidated or affiliated tax group of
which any such person is or shall become a member and any member of such group.

     “Total Commitments” means the aggregate of the Commitments, being $270,313,047.00 at
the date of this Agreement.

     “Tranche” has the meaning set forth in Section 2.1.1.

     “Tranche Availability” means, in relation to each Tranche, the portion of the
Available Loan Facility allocable to such Tranche as set forth in Schedule 1B (Tranches) up to the
Maximum Drawable Principal Amount for the Aircraft relating to such Tranche.

     “Transaction Costs” means the fees, costs and expenses due from the Borrower through
the Initial Advance Date pursuant to and subject to Article XI (Fees and Expenses).

     “Transfer Certificate” means a certificate substantially in the form of
Exhibit A or any other form agreed between the Facility Agent (acting on the instructions
of the Controlling Lenders) and the Borrower.

     “Transfer Date” means, in relation to a transfer, the later of:

     (a) the proposed Transfer Date specified in the Transfer Certificate; and

     (b) the date on which the Facility Agent executes the Transfer Certificate.

     “Unpaid Sum” means any sum due and payable but unpaid by the Borrower under the Loan
Documents.

     “Voluntary Prepayment” has the meaning set forth in Section 6.5.

     1.2 Construction.

     1.2.1 Unless a contrary indication appears, a reference in this Agreement to:

               (i) the “agreed form” of any Security Document means the form of such Security Document
which on the date hereof has been agreed by the Borrower and the Facility Agent (acting on
the instructions of the Lenders);

               (ii) any “applicable law” means (a) applicable laws, statutes, decrees, decree laws,
acts, codes, regulations, legislation, treaties, conventions and similar instruments and, in
respect of any of the foregoing, any instrument passed in substitution therefor or for the
purposes of consolidation thereof with any other instrument or

15

 

instruments, in each case, as amended, modified, varied or supplemented from time to
time, (b) applicable final judgments, orders, determinations or awards of any court from
which there is no right of appeal or if there is a right of appeal such appeal is not
prosecuted within the allowable time and (c) applicable orders, guidelines, notices,
guidance, rules and regulations of any state or government or any government entity, in each
case having the force of law or compliance with which is generally customary;

               (iii) any person includes its and any subsequent successors in title, permitted assigns
and permitted transferees;

               (iv) “assets” includes present and future properties, revenues and rights of every
description;

               (v) “indebtedness” includes any obligation (whether incurred as principal or as surety)
for the payment or repayment of money, whether present or future, actual or contingent;

               (vi) an “Operative Document” or any other agreement or instrument is a reference to
that Operative Document or other agreement or instrument as amended, supplemented or novated
in accordance with the terms thereof and of this Agreement or any other Operative Document,
together with all exhibits, schedules and other attachments thereto;

               (vii) a “person” includes any individual, firm, company, corporation, government, state
or agency of a state or any association, trust or partnership (whether or not having
separate legal personality) of two or more of the foregoing;

               (viii) a “regulation” includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law) of any governmental, intergovernmental or
supranational body, agency, department or regulatory, self regulatory or other authority or
organization;

               (ix) except as otherwise expressly set out hereto, a reference to “determines” or
“determined” means a determination made in the absolute discretion of the person making the
determination;

               (x) a reference to a “third party” is a reference to any person other than a Party;

               (xi) unless the context shall otherwise require, a provision of law is a reference to
that provision as amended or re enacted; and

               (xii) a time of day is, unless stated otherwise, a reference to New York time.

          1.2.2 Section and Schedule headings are for ease of reference only.

16

 

          1.2.3 Unless a contrary indication appears, a term used in any other Loan Document or in any
notice given under or in connection with any Loan Document has the same meaning in that Loan
Document or notice as in this Agreement.

     1.3 Currency Symbols and Definitions. “$” and “dollars” denote the
lawful currency of the United States of America.

ARTICLE II

THE FACILITIES

     2.1 The Loan Facility.

          2.1.1 Subject to the terms of this Agreement, the Lenders agree to make available to the
Borrower during the Availability Period a dollar loan facility in an amount equal to the Total
Commitments (the “Loan Facility”). The Loan Facility shall be divided into five (5)
tranches, each relating to one of the Aircraft, as set out in Schedule 1B (each, a
“Tranche”).

          2.1.2 The Borrower hereby irrevocably directs the Lenders, the Facility Agent and the Security
Trustee to make payment of all Advances (other than Advances in respect of the Borrower
Reimbursement Amounts) directly to the Aircraft Manufacturer in the manner contemplated by the
Consent and Agreement. The Lenders shall pay the Borrower Reimbursement Amounts directly to the
Borrower on the Initial Advance Date.

     2.2 Lenders’ Rights and Obligations.

          2.2.1 The obligations of each Lender under the Loan Documents are several. Failure by a Lender
to perform its obligations under the Loan Documents does not affect the obligations of any other
Finance Party under the Loan Documents. No Finance Party is responsible for the obligations of any
other Finance Party under the Loan Documents.

          2.2.2 The rights of each Lender under or in connection with the Loan Documents are separate
and independent rights and any debt arising under the Loan Documents to a Lender from the Borrower
shall be a separate and independent debt.

     2.3 Purpose.

          2.3.1 On the Initial Advance Date, Lenders shall pay to Borrower the Borrower Reimbursement
Amounts. Thereafter, the Borrower shall apply all amounts borrowed by it under each Tranche solely
towards the financing of Pre Delivery Payments in respect of the
Aircraft to which such Tranche relates, in each case in accordance with the terms of the Loan
Documents and the Aircraft Purchase Agreement.

          2.3.2 The Borrower shall not apply any amount borrowed by it under a Tranche towards the
financing or refinancing of Pre Delivery Payments in respect of any aircraft other than the
Aircraft to which that Tranche relates or for any other purpose except the purpose referred to in
Section 2.3.1.

17

 

          2.3.3 The Pre Delivery Payments are set out in Schedule 3 and are based on the Advance Payment
Base Price as of the date hereof. If there shall be any adjustment to the Advance Payment Base
Price for any Aircraft, subject to Section 10.6, the Borrower shall notify the Facility Agent
thereof and shall deliver to the Facility Agent a revised Schedule 3 hereto, which revised schedule
shall supersede and replace the then existing Schedule 3 hereto.

     2.4 Monitoring. No Finance Party is bound to monitor or verify the application of any
amount borrowed pursuant to this Agreement.

ARTICLE III

ADVANCES

     3.1 Delivery of an Advance Request. Subject to Article VII (Conditions of Advance),
the Borrower may utilize the Loan Facility by delivering to the Facility Agent a duly completed
Advance Request not later than 11:00 a.m. on the third (3rd) Business Day prior to the
proposed Advance Date in relation to such Advance. The Facility Agent shall, promptly upon receipt
of an Advance Request, send a copy thereof to each of the Lenders and the Security Trustee.

     3.2 Completion of an Advance Request. Each Advance Request is irrevocable and will
not be regarded as having been duly completed unless:

          3.2.1 Such Advance Request specifies each Tranche under which Advances are being requested;

          3.2.2 the proposed Advance Date is a Business Day within the Availability Period applicable to
each such Tranche and is a Pre Delivery Payment Date for the Aircraft relating to such Tranche as
specified on Schedule 3; provided, that in the event that a Pre Delivery Payment Date is
not a Business Day, the Advance Date in respect of such Pre Delivery Payment shall be the next
succeeding Business Day; and

          3.2.3 the amount of the Advance complies with Section 3.3 (Amount).

     3.3 Amount.

          3.3.1 The amount specified for each Tranche in the Advance Request for the proposed Advance
must be in an amount:

     (a) in the case of the Initial Advance, equal to the Borrower Reimbursement Amount for
such Tranche;

     (b) in respect of any Advance (other than the Initial Advance) relating to the Tranche
(i) for a Basic Aircraft (including any Doric Aircraft after a Doric Trigger Event), no
greater than 80% of the related Pre Delivery Payment and (ii) for any Doric Aircraft (prior
to a Doric Trigger Event), no greater than 100% of the related Pre Delivery Payment;

18

 

     (c) no greater than the amount specified for such Tranche for the applicable Advance
Date (i) prior to any Doric Trigger Event, Schedule 4 and (ii) on and after any Doric
Trigger Event, Schedule 5;

     (d) no greater than the Tranche Availability for such Tranche as of the relevant
Advance Date; and

     (e) that shall not, when aggregated with all previous Advances made prior to the
proposed Advance Date and all other Advances requested on the proposed Advance Date, cause
the Total Commitments to be exceeded.

     For the avoidance of doubt, an Advance shall not include any amount of interest payable by the
Borrower to the Aircraft Manufacturer on account of the Advance being made on a date adjusted by
the proviso in Section 3.2.2.

     3.4 Lenders’ Participation.

          3.4.1 If the conditions precedent in relation to an Advance have been fulfilled or waived by
the Facility Agent, each Lender shall make its participation in the relevant Advance available
through its Facility Office.

          3.4.2 The amount of each Lender’s participation in any Advance will be equal to the proportion
borne by its Available Commitment to the Available Loan Facility immediately prior to making such
Advance multiplied by the amount of such Advance. In no event shall a Lender be required to make a
disbursement in excess of its Available Commitment.

          3.4.3 The Facility Agent shall notify the Lenders and the Security Trustee of the amount of
each Advance and each Lender’s participation therein promptly following receipt of the Borrower’s
delivery to it of an Advance Request.

     3.5 Evidence of Debt.

          3.5.1 Each Lender shall maintain in accordance with its usual practice in the ordinary course
of business an account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder.

          3.5.2 The Facility Agent shall maintain accounts in the ordinary course of business in which
it shall record (i) the amount of each Loan made hereunder and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Security
Trustee hereunder for account of the Lenders and each Lender’s share thereof.

          3.5.3 The entries made in the accounts maintained pursuant to Section 3.5.1 or 3.5.2 shall,
absent gross negligence or manifest error, be prima facie evidence of the existence
and amounts of the obligations recorded therein, provided that the failure of any Lender or
the

19

 

Facility Agent to maintain such accounts or any error therein shall not in any manner affect
the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.

ARTICLE IV

INTEREST

     4.1 Calculation and Payment of Interest. The Borrower agrees to pay to the Security
Trustee, for account of the Lenders, interest on each Advance on each Interest Payment Date, which
interest shall accrue on each Advance in dollars for each Interest Period relating thereto in
arrears at a percentage rate per annum which is the aggregate of (a) LIBOR and (b) the Applicable
Margin.

     4.2 Interest Periods.

          4.2.1 Each Interest Period relating to an Advance shall start on and include (in the case of
the first such period) the Advance Date of such Advance or (in the case of each such subsequent
period referable to such Advance) the last day of the immediately preceding Interest Period
referable thereto and end on but exclude the next succeeding Interest Payment Date.

          4.2.2 The Borrower shall, in respect of the Loans relating to an Aircraft, have the option of
shortening the length of the Interest Period for such Loans during which the Scheduled Delivery
Date for such Aircraft is scheduled to occur by delivering a Delivery Month Notice to the Facility
Agent not later than three (3) Business Days prior to the end of the immediately preceding Interest
Period; provided, that if Borrower does not deliver a Delivery Month Notice to the Facility
Agent, the “Delivery Notice Date” for such Aircraft shall be its Scheduled Delivery Date. If a
Delivery Month Notice is delivered in respect of any Aircraft, the Interest Period for the related
Tranche shall end on the Delivery Notice Date for such Aircraft
specified in such Delivery Month Notice, and the Facility Agent shall notify the Borrower of
the applicable LIBOR rate for such Interest Period. If, for any reason, the Delivery Date for any
Aircraft does not take place on its Delivery Notice Date, subject in all cases to the
indemnification obligations of the Borrower hereunder (including in respect of Break Amounts, if
any), the Lenders shall rollover the Loans of the related Tranche to the new anticipated Delivery
Date identified to the Facility Agent by the Borrower (the period from Delivery Notice Date to the
Delivery Date being the “Stub Period”). In connection with any Interest Period ending on
the Delivery Notice Date or any Stub Period that has a duration of less than one month, if the
Facility Agent shall determine that the Lenders’ cost of funding for such Interest Period is higher
than the prevailing one-month LIBOR, it shall notify the Borrower of the proposed rate based on the
Lender’s cost of funding and the Borrower shall have the option of (i) accepting such proposed rate
as the applicable LIBOR for such Interest Period, or (ii) requiring the Facility Agent to use
one-month LIBOR for such Interest Period and paying all Break Amounts, if any, incurred by the
Lenders in connection therewith (provided that no “positive” Break Amount resulting from the
utilization of the option of this clause (ii) shall be payable to the Borrower by the Lenders).

20

 

     4.3 Default Interest.

          4.3.1 The Borrower agrees to pay to the Security Trustee, on demand, interest on any Unpaid
Sum at a per annum rate equal to the Default Rate from the due date of such Unpaid Sum up to the
date of actual payment, both before, on and after judgment.

          4.3.2 During an Event of Default that is continuing, the Facility Agent will divide the period
beginning on the due date for the relevant Unpaid Amount and ending on the date of payment into
successive Interest Periods of such length as it will decide in its discretion. Default interest
payable under this Section 4.3 in relation to any Interest Period shall accrue at the Default Rate
applicable to such Interest Period.

          4.3.3 Notwithstanding Section 4.3.2, if the relevant Unpaid Sum is a principal amount of a
Loan and becomes due and payable before the last day of its current Interest Period applicable to
the relevant Loan, then:

          (i) the first Interest Period for that Unpaid Sum will be the unexpired portion of the
current Interest Period applicable to the relevant Loan; and

          (ii) the Interest Period used to determine the Default Rate applicable thereto shall be
current Interest Period applicable to the relevant Loan.

     After the expiry of the first Interest Period for that Unpaid Sum, the rate on the Unpaid Sum
will be calculated in accordance with Section 4.3.2.

     4.4 Notification of Rates of Interest. The Facility Agent shall promptly notify the
Lenders, the Security Trustee and the Borrower of the determination of a rate of interest under
this Agreement on the Quotation Date;
provided that the Facility Agent’s failure to so notify the Lenders and the Borrower shall not
relieve the Borrower of its obligation to pay interest payable hereunder or any obligation under
any Loan Document nor shall it give rise to any claim against the Facility Agent or any Lender by
the Borrower.

     4.5 Absence of Quotations. Subject to Section 4.6 (Market disruption), if LIBOR is to
be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation
by noon on the Quotation Date, the applicable LIBOR shall be determined on the basis of the
quotations of the remaining Reference Banks.

     4.6 Market Disruption.

          4.6.1 Subject to Section 4.7, if a Market Disruption Event occurs on the Quotation Date in
relation to an Advance for any Interest Period, then the rate of interest on each Lender’s share of
that Advance for the Interest Period shall be the rate per annum which is the sum of:

          (i) the rate notified to the Facility Agent by that Lender as soon as practicable and
in any event before interest is due to be paid in respect of that Interest Period, to be
that which expresses as a percentage rate per annum the cost to that Lender of funding such
Advance (rounded up to the nearest 1/100th of one per cent); and

          (ii) the Applicable Margin.

21

 

          4.6.2 In this Agreement “Market Disruption Event” means the occurrence of any event
such that at or about 11:00 am (London time) on the Quotation Date for the relevant Interest Period
the Screen Rate is not available and only one or none of the Reference Banks supplies a rate to the
Facility Agent to determine LIBOR for dollars and the relevant Interest Period as contemplated in
Section 4.5.

     4.7 Alternative Basis of Interest or Funding.

          4.7.1 If a Market Disruption Event occurs and the Facility Agent or the Borrower so requires,
the Facility Agent and the Borrower shall enter into negotiations (for a period of not more than
thirty (30) days) with a view to agreeing a substitute basis for determining the rate of interest.

          4.7.2 Any alternative basis agreed pursuant to Section 4.7.1 above shall, with the prior
consent of all the Lenders and the Borrower, be binding on all Parties.

     4.8 Certificates and Determinations. Any certification or determination by a Finance Party of a rate or amount under any Loan
Document, absent gross negligence or manifest error by such Finance Party, is prima facie evidence
of the matters to which it relates.

     4.9 Day Count Convention. Any interest or commitment fee accruing under a Loan
Document will accrue from day to day and be calculated on the basis of the actual number of days
elapsed and a year of three hundred and sixty (360) days.

ARTICLE V

REPAYMENT

     5.1 Repayment. The Borrower shall repay each outstanding Loan, together with accrued
interest thereon to the date of repayment and Break Amount, if any, owing to the Lenders and all
other amounts then payable to the Finance Parties hereunder and under the Loan Documents, in full
in a single installment on the Maturity Date relating to such Loan.

     5.2 Re-borrowing. The Borrower may not re-borrow any Loans that have been cancelled
(pursuant to Section 6.1), prepaid or repaid.

ARTICLE VI

PREPAYMENT AND CANCELLATION

     6.1 Partial Cancellation. If the Borrower does not utilize a Loan that is available
for utilization within the relevant Availability Period, the Total Commitments shall be reduced and
partially cancelled by an amount equal to such unutilized Loans and the Commitment of the Lenders
shall be reduced and partially cancelled accordingly.

22

 

     6.2 Illegality.

          6.2.1 Notwithstanding any other provision in this Agreement, if any Change in Law or
Illegality Event shall make it unlawful for any Lender to maintain its Commitment or its portion of
the Loans, then the affected Lender shall deliver to Borrower and Facility Agent a written
certification describing in reasonable detail the events giving rise to such unlawfulness. Upon
receipt by Borrower of such notice, the Borrower and such Lender shall negotiate for a period of
sixty (60) days in an effort to mitigate such illegality. During such mitigation period the
affected Lender shall not be required to make any Advances to the Borrower hereunder. If
after such mitigation period, such unlawfulness cannot be resolved, then the provisions of
Section 6.2.2 shall apply.

          6.2.2 If there shall have occurred and be continuing an event with respect to a Lender of the
type described in Section 6.2.1 (an “Impaired Lender”), then the Facility Agent may and, if
so instructed by the Borrower shall:

          (i) notify the Borrower and each other Lender that such unlawfulness has occurred and
give notice that (a) if no Advance shall then have been made by such Impaired Lender, no
Advance shall be made to the Borrower by such Impaired Lender or (b) if an Advance shall
then have been made by such Impaired Lender, no further Advances shall be made to the
Borrower by such Impaired Lender, and request each other Lender to take up the relevant
portion of such Impaired Lender’s commitments, if any, in which case each such other Lender
may (but shall not be obligated to) in its sole discretion assume its pro rata share of such
Impaired Lender’s commitments by providing written notice of such assumption to the Facility
Agent within five (5) Business Days, and if such other Lender does not so elect in writing
to assume its pro rata share of the Impaired Lender’s commitments, the Facility Agent shall
send a further notice to each remaining Lender, which in turn may (but shall not be
obligated to) in its sole discretion assume the remaining available commitments of such
Impaired Lender on a pro rata basis by providing written notice of such assumption to the
Facility Agent within (5) Business Days; and

          (ii) notify the Borrower and each other Lender that such unlawfulness has occurred and,
to the extent that applicable laws do not require the immediate repayment of all or a
portion of such Impaired Lender’s Loans, request each other Lender to assume the relevant
portion of such Impaired Lender’s Loans, in which case each such other Lender may (but shall
not be obligated to) in its sole discretion assume its pro rata share of such Impaired
Lender’s Loans by providing written notice of such assumption to the Facility Agent within
five (5) Business Days and otherwise complying with the procedure set out in Section 21.5
(Procedure for transfer), and if any other Lender does not so elect in writing to assume its
pro rata share of the Impaired Lender’s Loans, the Facility Agent shall send a further
notice to each remaining Lenders, which in turn may (but shall not be obligated to) in its
sole discretion assume the remaining available Loans of such Impaired Lender on a pro rata
basis by providing written notice of such assumption to the Facility Agent within (5)
Business Days and otherwise complying with the procedure set out in Section 21.5 (Procedure
for transfer); and

          (iii) to the extent that any of such Impaired Lender’s Loans are not assumed by one or
more of the other Lenders as contemplated in 6.2.1(ii) above, or that

23

 

applicable laws
require the immediate repayment of all or a portion of such Impaired Lender’s Loans, require
the Borrower to repay the Loans advanced by such Impaired Lender in full together with
accrued interest, Break Amount, if any, and all other amounts accrued and owing to such
Impaired Lender under the Loan Documents, whereupon the Borrower shall on the date specified
in such notice (which shall be the earlier of the date on which applicable laws require the
immediate repayment of all or a portion of such
Impaired Lender’s Loans and the Interest Payment Date first occurring not earlier than
ten (10) Business Days from the date of such notice), repay in full all such amounts.

          6.2.3 For the avoidance of doubt, the failure by any Lender to provide written notice of
assumption of an Impaired Lender’s commitments or Loans within the relevant time frame contemplated
by Section 6.2.2 (i) or (ii), as applicable, shall be conclusive evidence that such Lender has
elected not to assume any such additional commitments or Loans. To the extent that any of such
Impaired Lender’s commitments or Loans are not assumed by one or more of the other Lenders as
contemplated in Section 6.2.2(i) and (ii) above, as applicable, the unassumed portion will be
cancelled and the Total Commitments will be reduced accordingly.

     6.3 Relevant Purchase Agreement Event.

          6.3.1 The Borrower shall, forthwith upon obtaining knowledge of the occurrence of a Relevant
Purchase Agreement Event, notify the Facility Agent thereof.

          6.3.2 If there shall have occurred a Relevant Purchase Agreement Event which relates to all of
the Aircraft, the Facility Agent, if so instructed by Controlling Lenders, shall notify the
Borrower that, based on such Relevant Purchase Agreement Event, (a) if no Advance shall then have
been made, no Advance shall be made to the Borrower or (b) if an Advance shall then have been made,
no further Advances shall be made to the Borrower.

          6.3.3 If there shall have occurred a Relevant Purchase Agreement Event which relates to one or
more (but not all) of the Aircraft, the Facility Agent, if so instructed by Controlling Lenders,
shall notify the Borrower that, based on such Relevant Purchase Agreement Event, (a) if no Advance
in relation to the affected Aircraft shall then have been made, no Advance in relation to such
affected Aircraft shall be made to the Borrower or (b) if an Advance in relation to such affected
Aircraft shall then have been made, no further Advances in relation to such affected Aircraft shall
be made to the Borrower.

     6.4 Mandatory Prepayment.

          6.4.1 If a Relevant Purchase Agreement Event has occurred with respect to one or more
Aircraft, the Loans relating to the affected Aircraft shall, on the fifth Business Day thereafter,
be prepaid in full, but not in part, together with accrued interest thereon to the date of
prepayment and Break Amount, if any, owing to the Lenders and all other amounts then payable to the
Finance Parties hereunder and under the Loan Documents.

          6.4.2 If a Doric Trigger Event occurs, then on the Doric Prepayment Date, each Doric Loan
shall be prepaid in part by an amount equal to the Doric Prepayment Amount for such Doric Loan. In
such event, without further act or agreement of the parties, from the Doric Prepayment Date onward
Schedule 5 shall replace Schedule 4 and the Doric Loans shall

24

 

be converted to Basic Loans for all
purposes of this Agreement. For the avoidance of doubt, except for the Doric Prepayment Amounts,
there shall be no true-up or claw-back for any of the
respective rights or obligations of the parties in respect of the Doric Loans prior to the
Doric Prepayment Date, including but not limited to any increase in Fees or interest paid or to be
paid by Borrower in connection with the Doric Loans for the period prior to the Doric Prepayment
Date.

          6.4.3 If any “Manufacturer Change” or “Operator Change” (each as defined in Section 3.2 of the
Assigned Aircraft Purchase Agreement) would in the aggregate increase the Lenders’ Purchase Price
payable in respect of such Aircraft by more the $2,000,000.00, Borrower will on the next Interest
Payment Date prepay the Loans relating to such Aircraft in the amount by which such increase
exceeds $2,000,000.00.

     6.5 Voluntary Prepayment. The Borrower may prepay on any Interest Payment Date in
whole or in part any of the outstanding Loans, together with accrued interest thereon, Break
Amount, if any, and all other amounts due and owing by the Borrower under the Loan Documents if,
(a) it gives the Facility Agent not less than four (4) Business Days prior written notice and
(b) the amount of any prepayment is not less than $2,000,000.00 or any higher integral multiple of
$1,000,000.00 (a “Voluntary Prepayment”). There shall be no early prepayment fees or penalties in
connection with any such Voluntary Prepayment.

     6.6 Right of Repayment and Cancellation in Relation to a Single Lender. If:

          (i) any sum payable to any Lender by the Borrower is required to be increased under
sub-Section 13.4(b) (Withholding on Payments); or

          (ii) any Lender claims indemnification from the Borrower under Section 14.1 (Increased
Costs),

the Borrower may, while the circumstance giving rise to the requirement or indemnification
continues, upon not less than thirty (30) days (or such shorter period as the relevant Lender may
agree) prior notice to the Facility Agent and such Lender cancel the commitment of that Lender and
repay that Lender’s Loans together with accrued interest thereon and Break Amount, if any, and such
Lender’s allocable share of all other amounts due and owing by the Borrower under the Loan
Documents.

     6.7 Voluntary Reduction of Commitments.

          6.7.1 The Borrower may, upon not less than five (5) Business Days prior notice to the Facility
Agent, cancel any part of and reduce the Available Loan Facility. Any cancellation under this
Section 6.7 shall reduce the Commitments of the Lenders ratably.

          6.7.2 Any reduction of the Available Loan Facility made pursuant to this Section 6.7 shall be
made in a minimum amount of $1,000,000.00.

25

 

     6.8 Restrictions.

          6.8.1 Any notice of cancellation or prepayment given by any Party under this Article VI shall
be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date
or dates upon which the relevant cancellation or prepayment is to be made and the amount of that
cancellation or prepayment. No cancelled or prepaid portion of the Total Commitments or the Loans
may be re-instated or re-borrowed.

          6.8.2 Any repayment or prepayment under this Agreement shall be made together with accrued
interest on the amount prepaid, Break Amount, if any, prepayment penalties, if any, and other
amounts due and owing under the Loan Documents.

          6.8.3 The Borrower shall not repay or prepay all or any part of any Loan or cancel all or any
part of the Commitments in the manner expressly provided for in this Agreement.

          6.8.4 If the Facility Agent receives a notice under this Article VI it shall promptly forward
a copy of that notice to either the Borrower or the affected Lenders, as appropriate.

ARTICLE VII

CONDITIONS PRECEDENT TO ADVANCES

     7.1 Conditions Precedent to Initial Advance. The Borrower may not draw the Initial
Advance and the Lenders shall not be required to make the initial Advances unless the following
conditions precedent have been fulfilled to the satisfaction of, or (with the exception of
Section 7.1.7, which the Facility Agent shall not be permitted to waive) waived in writing by, the
Facility Agent (acting upon instructions of the Controlling Lenders):

          7.1.1 The Facility Agent shall have received the following documentation:

     (a) An original copy of each Loan Document executed by each of the parties thereto
(other than the Finance Parties); and

     (b) the Original Financial Statements of the Guarantor, to the extent not made
available on the Guarantor’s website.

          7.1.2 The Facility Agent shall have received a certificate of the Borrower signed by a
Responsible Officer:

     (a) attaching true and complete copies of its constitutive documents, its by-laws and a
certificate of status, compliance or like certificate from the appropriate governmental
authority;

     (b) certifying that the person or persons who execute and deliver on behalf of the
Borrower the Loan Documents to which it is a party are authorized to take such action on
behalf of the Borrower; and

26

 

     (c) certifying the signatures of the person or persons referred to in
paragraph 7.1.2(b) above.

     7.1.3 The Facility Agent shall have received a certificate of the Guarantor signed by a
Responsible Officer:

     (a) attaching true and complete copies of its constitutive documents, its by-laws and a
certificate of status, compliance or like certificate from the appropriate governmental
authority;

     (b) certifying that the person or persons who execute and deliver on behalf of the
Guarantor the Loan Documents to which it is a party are authorized to take such action on
behalf of the Guarantor; and

     (c) certifying the signatures of the person or persons referred to in
paragraph 7.1.3(b) above.

          7.1.4 The Facility Agent shall have received the following legal opinions:

     (a) a legal opinion of in-house counsel of the Borrower and the Guarantor in relation
to the due authorization, execution and delivery by the Borrower of the Loan Documents to
which it is a party and by the Guarantor of the Guarantee and as to such other matters
reasonably requested by the Facility Agent, in form and substance satisfactory to the
Facility Agent;

     (b) a legal opinion of counsel of the Aircraft Manufacturer (which may be in-house
counsel) as to the due authorization, execution and delivery and the enforceability of the
Consent and Agreement against the Aircraft Manufacturer, in form and substance satisfactory
to the Facility Agent;

     (c) a legal opinion of Parr, Waddoups, Brown, Gee & Loveless P.C., legal advisers to
the Security Trustee, as to the due authorization, execution and delivery by Security
Trustee of the Loan Documents to which it is a party and the enforceability thereof against
the Security Trustee and as to such other matters reasonably requested by the Facility
Agent, in form and substance satisfactory to the Facility Agent;

     (d) a legal opinion of Pillsbury Winthrop Shaw Pittman, LLP, special New York counsel
to the Borrower and Guarantor, in relation to (i) the enforceability against the Borrower
and the Guarantor of the Loan Documents to which they are party (other than the Consent and
Agreement), (ii) the perfection of the Security Interest created or intended to be created
under the Aircraft Purchase Agreement Security Assignment by filing of a UCC-1 Financing
Statement and (iii) certain other matters, in form and substance satisfactory to the
Facility Agent; and

     (e) a legal opinion from Vedder Price P.C., special New York counsel to the Original
Lender and Facility Agent, in relation to the enforceability of the Loan Documents and (ii)
certain other matters, in form and substance satisfactory to the Facility Agent.

27

 

          7.1.5 The Facility Agent shall have received evidence that all filings and registrations which
are required to be made in connection with the perfection of the Security Trustee’s interest in the
Collateral pursuant to any Security Documents have been made, including a Uniform Commercial Code
UCC-1 financing statement filed in the office of the Secretary of State of the State of Delaware
naming the Borrower, as debtor, the Security Trustee, as secured party and the Collateral as the
property covered thereby.

          7.1.6 No material adverse change in the LIBOR markets shall have occurred since December 18,
2007, which material adverse change would materially impair the ability of the Original Lender to
obtain the funding required for it to meet its obligations under this Agreement.

          7.1.7 No change shall have occurred in applicable law and no change in circumstances shall
have otherwise occurred since December 18, 2007, no fact or condition shall exist which, in the
reasonable opinion of any Lender, would make it illegal under applicable law for such Lender to
make available its portion of the Loan and no legal action or proceeding shall have been instituted
nor shall any such action be threatened in writing, nor shall any order, judgment or decree have
been issued or proposed to be issued at the time of the Initial Advance to set aside, restrain,
enjoin or prevent the completion and consummation of this Agreement or the transactions
contemplated hereby.

          7.1.8 The Facility Agent shall have received a certificate from a Responsible Officer of each
of the Borrower and the Guarantor certifying as to the matters specified in Section 7.2.1.

          7.1.9 The Facility Agent shall have received such other documents, information or evidence as
the Facility Agent or the Lenders may reasonably request including, but not limited to, any
documents, information or evidence requested by the Facility Agent in order for the Lenders to
carry out and be satisfied they have complied with all necessary “know your customer” checks in
relation to either or both of the Borrower and the Guarantor or other similar checks under all
applicable laws and regulations pursuant to the transactions contemplated in the Loan Documents.

     7.2 Further Conditions Precedent to Each Advance. The Borrower may not draw any
Advance (including the Initial Advance) and the Lenders shall not be required to make the Advances
(including on the Initial Advance Date) unless the following conditions precedent have been
fulfilled to the satisfaction of, or waived in writing by, the Facility Agent:

          7.2.1 On the date of the relevant proposed Advance Date relating thereto:

     (a) no Default shall be continuing or would result from the proposed Advance; and

     (b) the representations and warranties made by the Borrower and the Guarantor in the
Loan Documents to which it is a party shall be true and correct in all material respects
(except to the extent such representation or warranties relates to an earlier date, in which
case such representation or warranty shall only be made as to the date on which it is
expressed to be made).

28

 

          7.2.2 On the proposed Advance Date:

     (a) no legal action or proceeding shall have been instituted nor shall any such action
be threatened in writing, nor shall any order, judgment or decree have been issued or
proposed to be issued at the time of such Advance Date to set aside, restrain, enjoin or
prevent the completion and consummation of this Agreement or the transactions contemplated
hereby;

     (b) all property forming part of the Collateral shall be free and clear of any and all
Security Interests in favor of any party other than the Security Trustee pursuant hereto, as
evidenced to the satisfaction of the Lenders by searches in Delaware and such other
jurisdictions or registries as considered necessary or advisable by the Finance Parties,
acting commercially reasonably; and

     (c) since September 30, 2007, no Material Adverse Change shall have occurred.

          7.2.3 The Facility Agent shall have received:

     (a) evidence satisfactory to the Facility Agent that the aggregate outstanding Advances
will not after the proposed Advance exceed the Total Commitments; and

     (b) written confirmation from the Borrower that all Pre Delivery Payments due under the
Aircraft Purchase Agreement in respect of the Aircraft subject to the Advance on or before
the date of the Advance but not financed hereunder have been paid on or prior to the
proposed Advance Date; which amount, for any Basic Aircraft as at any Advance Date, shall be
at least 20% of the Pre Delivery Payment due on such Advance Date.

     7.3 Benefit of Conditions and Waiver. The conditions specified in this Article VII
(Conditions Precedent to Advances) (other than the condition specified in Section 7.1.7, which is
also for the benefit of the Borrower) are inserted solely for the benefit of the Lenders and may be
waived on their behalf in whole or in part and with or without conditions by the Facility Agent
(acting on the instructions of all of the Lenders) in respect of any relevant action or
circumstance without prejudicing the rights of the Facility Agent to require fulfillment of such
conditions in whole or in part in respect of any other relevant action or circumstance.

ARTICLE VIII

REPRESENTATIONS AND WARRANTIES OF THE BORROWER

     The Borrower makes the following representations and warranties set out in this Article VIII
to each Finance Party on the date of this Agreement and as at each Advance Date (except to the
extent such representation or warranties relates to an earlier date, in which case such
representation or warranty shall only be made as to the date on which it is expressed to be made):

29

 

     8.1 Status. The Borrower is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware, is a certified air carrier and is duly
qualified to do business in, and is in good standing in, all other jurisdictions where the nature
of its business or the nature of property owned or used by it makes such qualification necessary,
except where the failure to be so qualified and in good standing does not result in a Material
Adverse Change. The Borrower has full corporate power and authority to carry on its business as
now conducted and to execute, deliver and perform its obligations under this Agreement and under
each of the other Operative Documents to which it is (or will be) a party.

     8.2 Binding Obligations. It has duly authorized, executed and delivered this
Agreement and each of the Operative Documents to which it is (or will be) a party, and each of the
Operative Documents to which it is (or will be) a party constitutes, or when entered into will
constitute, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower
in accordance with its terms, except as the same may be limited by applicable bankruptcy,
insolvency, reorganization, arrangement, moratorium or similar laws affecting the rights of
creditors generally and by general principles of equity.

     8.3 Non Conflict with Other Obligations. Neither the execution and delivery by the
Borrower of the Operative Documents to which it is or will be a party, nor the consummation by the
Borrower of any of the transactions contemplated hereby or thereby, nor the compliance by the
Borrower with any of the terms and provisions hereof and thereof, (A) requires or will require any
approval of its stockholders, or approval or consent of any trustees or holders of any indebtedness
or obligations of it except such as have been (or will be) duly obtained, (B) violates or will
violate its certificate of incorporation or by-laws, (C) contravenes or will contravene any
provision of, or constitutes or will constitute a default under, or results or will result in any
breach of, any indenture, mortgage, lease, chattel mortgage, deed of trust, conditional sale
contract, bank loan or credit agreement, license or other agreement, instrument or contractual
restriction to which it is a party or by which it is bound or (D) contravenes or will contravene
any applicable law binding on it.

     8.4 Governmental Consents and Approvals. No Authorization of, giving of notice to, or registration with, or taking of any other
action in respect of, any governmental authority or agency or any other applicable governmental
authority or agency is required for the execution and delivery of, or the carrying out by, the
Borrower of any of the transactions contemplated hereby or any other of the Operative Documents to
which the Borrower is or will be a party, other than the filing of the UCC-1 financing statement
referred to in Section 7.1.5. Upon the filing of the UCC-1 financing statement specified in the
preceding sentence, the Security Trustee will have a first priority and perfected security interest
in the Collateral.

     8.5 Financial Statements.

          8.5.1 The Original Financial Statements were prepared in accordance with GAAP consistently
applied (except as may be indicated in the notes thereto or as permitted by Form 10-Q in the case
of interim unaudited consolidated financial statements).

          8.5.2 The Original Financial Statements fairly represent in all material respects the
consolidated financial condition and operations of the Guarantor as at the respective

30

 

dates thereof
and the consolidated results of its operations and cash flows for the periods indicated therein.

          8.5.3 There has been no Material Adverse Change since September 30, 2007 except as disclosed
by it to the Facility Agent in writing prior to the date hereof.

     8.6 Pari Passu Ranking. Its payment obligations under the Loan Documents rank at
least pari passu with the claims of all its other unsecured and unsubordinated creditors.

     8.7 No Proceedings Pending or Threatened. There are no pending or, to the Borrower’s
knowledge, threatened actions or proceedings against the Borrower before any court or
administrative agency that would reasonably be expected to materially adversely affect Borrower’s
ability to perform its obligations under the Loan Documents.

     8.8 No Relevant Event. No Relevant Event has occurred and is continuing or could
reasonably be expected to result from the making of any Advance.

     8.9 Aircraft Purchase Agreement. The Borrower is not in default of any of its
obligations under the Aircraft Purchase Agreement, the Aircraft Purchase Agreement is in full force
and effect and, to the knowledge, information and belief of Borrower’s Responsible Officers, the
Aircraft Manufacturer is not in default of its obligations under the Aircraft Purchase Agreement.
The Borrower has not entered into any agreement with the Aircraft Manufacturer (including any
portion or provision of the Aircraft Purchase Agreement that is not being assigned to the Security
Trustee in accordance
with the Security Documents) that adversely affects the rights of the Security Trustee under
the Assigned Aircraft Purchase Agreement in any material respect. As at the date hereof,
Schedule 3 accurately reflects the timing and amounts of Pre Delivery Payments due under the
Aircraft Purchase Agreement, and all Pre Delivery Payments that have fallen due prior to the date
hereof have been paid in full by the Borrower (excluding, for the avoidance of doubt, any such
payments that have been deferred in a manner consistent with the terms of the Assigned Aircraft
Purchase Agreement). The Detailed Specification for the Aircraft requires the Aircraft to be
delivered in freighter configuration. The portions of the Aircraft Purchase Agreement posted on the
following website on the date hereof:
http://www.sec.gov/Archives/edgar/data/1135185/000093041306007829/c45137_ex10-1.txt, are true and
accurate. The Aircraft constitute aircraft that are the subject matter of the Assigned Purchase
Agreement.

ARTICLE IX

REPRESENTATIONS AND WARRANTIES OF THE FINANCE PARTIES

     9.1 Each Finance Party hereby represents and warrants to each of the other Parties, as of the
date hereof, that:

     (a) it is a duly organized, validly existing and (if applicable) in good standing under
the applicable laws of its jurisdiction of organization;

     (b) it has the full requisite power and authority, including trust power (if
applicable), to execute, deliver and enter into the Loan Documents to which it is or is

31

 

contemplated to become a Party, to comply with the terms hereof and thereof, and to perform
its obligations hereunder and thereunder;

     (c) it has duly authorized, executed and delivered the Loan Documents to which it is or
is contemplated to become a Party and, assuming due execution and delivery by each of the
Parties thereto, each such Loan Document constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency, receivership,
reorganization, arrangement, moratorium or other similar laws affecting creditors’ rights
generally and to general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law); and

     (d) without making any inquiries (legal, factual or otherwise), it does not have any
knowledge of any circumstances that will give rise to a claim pursuant to Section 13.1 or
Section 14.1.

ARTICLE X

COVENANTS OF THE BORROWER

     The undertakings in this Article X shall remain in force from the date of this Agreement for
so long as any amount is outstanding under the Loan Documents or any commitment is in force.

     10.1 Authorizations. The Borrower shall promptly obtain, comply with and do all that
is necessary to maintain in full force and effect any material Authorization required under any
applicable law to enable it to perform its obligations under the Operative Documents to which it is
(or will be) a party and to ensure the legality, validity or enforceability of any Operative
Document to which it is (or will be) a party, and shall supply certified copies thereof to the
Facility Agent upon reasonable request.

     10.2 Compliance with Laws. The Borrower shall comply in all respects with all laws to
which it may be subject, if failure to so comply would materially impair its ability to perform its
obligations under the Operative Documents.

     10.3 Use of Advance. The Borrower shall use the proceeds of each Advance under this
Agreement exclusively for the purpose specified in Section 2.3 (Purpose).

     10.4 Negative Pledge. The Borrower shall not directly or indirectly create, incur,
assume, suffer to exist or permit to subsist any Security Interest, other than Permitted
Encumbrances, over (a) any of the Aircraft as to which an Advance is outstanding or (b) any of the
Collateral. Further, the Borrower will promptly, at its own cost and expense, take such action as
may be necessary duly to discharge and satisfy (by bonding or otherwise) in full any such Security
Interest if the same shall arise at any time.

     10.5 Recovery of Pre Delivery Payments. For so long as any Secured Obligations for
such Aircraft remain outstanding, the Borrower shall not take any action to obtain or recover from
the Aircraft Manufacturer any Pre Delivery Payments (including any of the Borrower Pre

32

 

Delivery
Payments) without the written consent of the Facility Agent, and the Borrower agrees to provide an
irrevocable direction to the Aircraft Manufacturer to remit any refunds, rebates or other amounts
payable by the Aircraft Manufacturer in respect of the Pre Delivery Payments relating to any
Aircraft directly to the Security Trustee and not to the Borrower. The Borrower acknowledges that,
until all Secured Obligations relating to any Aircraft are satisfied in full, the Security Trustee
(to the exclusion of the Borrower) shall be entitled to any amounts payable by the Aircraft
Manufacturer to the Borrower in respect of the Pre Delivery Payments relating to such Aircraft.

     10.6 Lenders’ Purchase Price. The Borrower shall not at any time take any action to
increase the Lenders’ Purchase Price payable in respect of any Aircraft, including all Seller
Provided Equipment, Specification Change Notices, Optional Features (as each such term is defined
in the Assigned Aircraft Purchase Agreement), deferred interest and escalation to the date of
purchase in accordance with
the escalation formula calculated in accordance with the Assigned Aircraft Purchase Agreement,
by more than $500,000.00 without the prior consent of the Facility Agent unless the Borrower
immediately pays to the Aircraft Manufacturer any amount by which an increase of the Lenders’
Purchase Price for such Aircraft would exceed $500,000.00 and delivers to Facility Agent a report
evidencing such payment to the Aircraft Manufacturer.

     10.7 Further Assurance. The Borrower shall carry out all acts, do all things and
execute all documents reasonably required by any Finance Party to protect and/or perfect the
interests of any Finance Party under the Operative Documents (including, without limitation, the
filing or registration of any of the Operative Documents as may be required in relation to the
transactions contemplated by the Operative Documents).

     10.8 Merger. The Borrower may not enter into any transaction (whether by way of
reconstruction, reorganization, consolidation, amalgamation, merger, transfer, sale, lease or
otherwise, a “Merger”) whereby all or substantially all of its undertaking, property and
assets would become the property of any other person or, in the case of any such Merger, of the
continuing corporation resulting therefrom (the “Successor Corporation”) unless: (a) no
Event of Default has occurred and is continuing or would result therefrom; (b) the person acquiring
the undertaking, property or assets will become, or the Successor Corporation will be, liable for
the obligations of the Borrower under the Aircraft Purchase Agreement, and liable for the
obligations of the Borrower under the Facilities, and the Facility Agent shall have received
evidence reasonably satisfactory to it of such liability; and (c) such person or the Successor
Corporation is a corporation incorporated under the laws of any state in the United States (and, if
not Delaware, all UCC filings shall have been effected in order to ensure that the Security Trustee
continues to have a first priority and perfected lien against the Collateral) and is a certified
air carrier.

     10.9 Aircraft Purchase Agreement. The Borrower shall not, without the prior written
consent of the Security Trustee (such consent, in the case of clause (iii) or (iv) of this
Section 10.9, to be given if it would be unreasonable for the Borrower to withhold the consent to
assignment requested of it by the Aircraft Manufacturer and the Borrower is under a
“reasonableness” obligation in respect thereof):

33

 

          (i) rescind, cancel, terminate or cause the termination of the Aircraft Purchase
Agreement or enter into any agreement with the Aircraft Manufacturer which would rescind,
cancel or terminate the Aircraft Purchase Agreement, in each case insofar as it relates to
any Aircraft as to which a Loan is outstanding or the Collateral (or any part thereof);

          (ii) enter into any agreement with the Aircraft Manufacturer to amend, waive or
otherwise modify any provision of the Aircraft Purchase Agreement (insofar as it relates to
any Aircraft as to which a Loan is outstanding or the Collateral (or any part thereof))
which would adversely affect the Security Trustee’s interest in the Collateral in
any material respect, including, without limitation, (A) result in an increase of the
Lenders’ Purchase Price other than in accordance with Section 10.6 or (B) amending the Pre
Delivery Payment Dates or any Scheduled Delivery Month;

          (iii) except as permitted under the Aircraft Purchase Agreement, consent to any
assignment by the Aircraft Manufacturer of its rights under the Aircraft Purchase Agreement
(insofar as it relates to an Aircraft as to which a Loan is outstanding or any part thereof)
or under the Consent and Agreement;

          (iv) request or consent to any Pre Delivery Payment to be transferred to or applied
towards any aircraft, other than towards the Aircraft to which such Pre Delivery Payment
relates; or

          (v) amend the “Basic Specification” of the Aircraft so that the Aircraft would not be
in cargo configuration.

     10.10 Financial Information.

          10.10.1 The Borrower shall supply or procure the supply to the Facility Agent in sufficient
copies for all the Lenders, to the extent such materials are not made available on the Guarantor’s
website:

          (i) as soon as practicable and in any event within 120 days after the end of each
fiscal year of the Guarantor, consolidated statements of income and cash flows and a
consolidated statement of stockholders’ equity of the Guarantor and its Subsidiaries for
such year, and a consolidated balance sheet of the Guarantor and its Subsidiaries as at the
end of such year, setting forth in each case in comparative form corresponding consolidated
figures from the preceding annual audit, all in reasonable detail and reported on by
independent public accountants of recognized national standing selected by the Borrower
(without a “going concern” or like qualification or exception and without any qualification
or exception as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and results of
operations of the Guarantor and its Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied (except for inconsistencies required by changes to GAAP and
changes approved by such accountants in accordance with GAAP);

34

 

          (ii) as soon as practicable and in any event within 90 days after the end of each
quarterly period (other than the last quarterly period) in each fiscal year of the Guarantor
beginning after December 31, 2007, consolidated statements of income, stockholders’ equity
and cash flows of the Guarantor and its Subsidiaries for the period from the beginning of
the current fiscal year to the end of such quarterly period, and a consolidated balance
sheet of the Guarantor and its Subsidiaries as at the end of such quarterly period, setting
forth in each case in comparative form figures for the corresponding period in the preceding
fiscal year, all in reasonable detail and presenting fairly in all material respects the
financial condition and results of operations of the
Guarantor and its Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied (except for inconsistencies required by changes to GAAP and changes
approved by the accountants referred to in clause (i) above in accordance with GAAP),
subject to normal year-end audit adjustments and the absence of footnotes; and

          10.10.2 The Borrower shall supply or procure the supply to the Facility Agent in sufficient
copies for all the Lenders, to the extent such materials are not made available on the Borrower’s
website and provided that the Borrower is not prohibited or restricted by law from doing so:

          (i) promptly, any documents or information that the Guarantor files with the Securities
and Exchange Commission and that is disclosable to the Guarantor’s shareholders; and

          (ii) promptly, such further information regarding the Collateral, financial condition,
business and operations of the Borrower or the Guarantor as any Finance Party (through the
Facility Agent) may reasonably request.

ARTICLE XI

FEES AND EXPENSES

     11.1 Facility Agent and Security Trustee Fees. The Borrower shall pay the Fees
specified in the Fee Letter at the time and in the manner required by the terms thereof. The
Borrower shall pay the Fees of the Security Trustee as agreed on or prior to the date hereof.

     11.2 Commitment Fee. The Borrower shall, in respect of each Tranche, pay a commitment
fee to the Security Trustee for disbursement to the Lenders quarterly in arrears on the first
Business Day of each calendar quarter from the date hereof, which fee shall cease to accrue from
and after (i) the last day of the Availability Period for such Tranche or (ii) the termination or
cancellation of the Commitments relating to such Tranche, whichever shall occur first. Such
commitment fees shall be payable in the following amounts:

     (a) for each Tranche relating to Doric Loans (prior to any Doric Prepayment Date for
such Aircraft), the commitment fee shall be 0.325% per annum of the applicable Tranche
Availability; and

35

 

     (b) for each Tranche relating to Basic Loans, including any Doric Loans converted to
Basic Loans after the Doric Prepayment Date, the commitment fee shall be shall be 0.50% per
annum of the applicable Tranche Availability.

The Security Trustee may consult with the Facility Agent in connection with the allocation and
distribution of the commitment fees to the Lenders.

     11.3 Transaction Expenses. The Borrower will:

          11.3.1 reimburse the reasonable attorney’s fees and expenses of the Finance Parties in
connection with the negotiation and documentation of the term sheet for the transaction and the
Loan Documents and any other documents referred to herein and therein (other than in connection
with the sale, transfer or participation of any interest by a Lender in the Advances) and the
closings of the transactions contemplated thereby on the Initial Advance Date; provided,
that, if the Initial Advance Date does not occur for any reason, the Borrower shall reimburse the
Finance Parties for all such reasonable fees and expenses promptly upon request for reimbursement,
unless a Lender fails to fund the initial Advances after all Conditions Precedent to such funding
obligations have been satisfied, in which event the Borrower will not reimburse the portion of such
fees and expenses allocable to such failing Lender, with such failing Lender being responsible for
its pro rata share (determined on the basis of their Commitments) of such fees and expenses and the
Borrower continuing to be responsible for the balance of such fees and expenses;

          11.3.2 pay as and when due the reasonable fees and expenses of the Security Trustee; and

          11.3.3 pay all filing and registration costs associated with the perfection in the Collateral.

     11.4 Amendment Costs. If the Borrower requests an amendment, waiver or consent of the
terms hereof or of any other Operative Document, the Borrower shall, within ten days of demand, pay
or reimburse the Facility Agent for the amount of all appropriately evidenced and reasonable costs
and expenses (including reasonable legal fees) reasonably incurred by the Facility Agent and the
Lenders in responding to, evaluating, negotiating or complying with that request or requirement
(whether or not such amendment, waiver or consent is made or given), it being agreed that any
invoices for legal services shall reflect the hours and rates of attorneys but exclude the
narratives.

     11.5 Enforcement Costs. The Borrower shall, on demand, pay to each Finance Party the
amount of all reasonable and documented costs and expenses (including reasonable legal fees)
incurred by that Finance Party following the occurrence and during the continuation of an Event of
Default, associated with any “work out” or in connection with the enforcement of, or the
preservation of any rights under, any Operative Document.

     11.6 No Double-Counting. No Finance Party shall be entitled to an indemnity, payment
or reimbursement under any Operative Document to the extent that such Finance Party has otherwise
been indemnified, paid, compensated or reimbursed in respect of the relevant sum

36

 

in respect of
which it would otherwise be entitled to be indemnified, paid or reimbursed under any such Operative
Document.

ARTICLE XII

GENERAL INDEMNIFICATION

     12.1 Claims Defined. For the purposes of this Article XII, “Claims” shall
mean any and all liabilities, obligations, losses, damages, settlements, penalties, claims, costs,
actions, suits, expenses or judgments of whatsoever kind and nature (whether or not on the basis of
negligence, strict or absolute liability or liability in tort) which may be imposed on, incurred
by, suffered by, or asserted against an Indemnitee and shall include all reasonable costs,
disbursements and expenses (including reasonable legal fees and expenses) of an Indemnitee in
connection therewith or related thereto.

     12.2 Claims Indemnified. Subject to the exclusions stated in Section 12.3 below and
the other limitations in this Article XII, the Borrower agrees, to indemnify, protect, defend and
hold harmless, on an After-Tax Basis, each Indemnitee from, against and in respect of any and all
Claims of any kind or nature whatsoever that may be imposed on, incurred by or asserted against any
Indemnitee in any way related to, resulting from or arising out of any one or more of the
following: (a) the Borrower’s possession of, title to, or leasing of, the Aircraft, the Airframe
or any Engine or Part, (b) this Agreement or any of the other Operative Documents, or any of the
transactions contemplated hereby or thereby, or the enforcement of the terms of any thereof related
to, resulting from or arising out of a Default or an Event of Default (including restructuring or
reorganization of the Borrower, whether or not supervised by a court), (c) the manufacture, design,
purchase, acceptance or rejection of the Aircraft, the Airframe or any Engine or Part under the
Aircraft Purchase Agreement, (d) the ownership, delivery, non-delivery, lease, sublease, wet lease,
possession, use, non-use, substitution, airworthiness, state of airworthiness, control,
manufacture, construction, maintenance, repair, testing, abandonment, replacement, operation,
registration, deregistration, re-registration, condition, sale, storage, modification, alteration,
return, pooling, assignment, transfer or other disposition of the Aircraft, the Airframe or any
Engine or Part (including, without limitation, any death or injury to passengers or others,
property damage, any damage to the environment, any latent or other defects, whether or not
discoverable, any claim for patent, trademark or copyright infringement and any violation of law by
the Borrower), (e) tort liability, whether or not arising out of the negligence of any Indemnitee
(whether active, passive or imputed and including strict liability without fault), (f) any breach
of or failure to perform or observe, or any other non-compliance with, any covenant, condition or
agreement or other obligation to be performed by the Borrower under any of the Operative Documents,
or the falsity or inaccuracy of any representation or warranty of the Borrower in any of the
Operative Documents, (g) any violation of applicable law by the Borrower, or its directors,
officers, employees, agents or servants, (h) the offer or sale of any Loans or any refunding or
refinancing of the Loans by the Borrower (the benefit of the indemnity in this clause (h) to extend
also to any person who controls the Indemnitee, its successors, assigns, employees, directors and
officers) and (i) the insolvency, bankruptcy, reorganization or other proceeding in any
jurisdiction relating to or against the Borrower or any Affiliate of the Borrower (including,
without limitation, any action or proceeding taken to set aside, invalidate, affect or treat as a
preference or transaction at an undervalue, the sale of the

37

 

Aircraft, the Airframe or any
Engine or Part from the Borrower to the Owner Trustee or any other transaction contemplated by the
Operative Documents).

     12.3 Claims Excluded. The following are excluded from the Borrower’s agreement to
indemnify any particular Indemnitee under this Article XII:

     (a) any Claim to the extent such Claim is a Tax covered under Article XIII of this
Agreement, except to the extent any Claim is required to be paid on an After-Tax Basis;

     (b) any Claim to the extent attributable to the gross negligence, willful misconduct or
fraud of such Indemnitee (other than the gross negligence or willful misconduct imputed as a
matter of law to such Indemnitee solely by reason of its interest in the Aircraft or any
Operative Document);

     (c) any Claim to the extent attributable to the noncompliance by such Indemnitee with
any of the terms of, or any misrepresentation by such Indemnitee contained in, any Operative
Document to which such Indemnitee is a party (unless and to the extent such noncompliance or
misrepresentation is attributable to noncompliance by the Borrower with any of their
respective obligations under the Operative Documents or to a misrepresentation by the
Borrower contained in any Operative Document or certificate delivered pursuant thereto);

     (d) any Claim to the extent such Claim is a cost, fee or expense payable by such
Indemnitee pursuant to any express provision of any Operative Document and for which the
Borrower is not otherwise obligated to reimburse such Indemnitee directly or indirectly
pursuant to any express provision of the Operative Documents;

     (e) any Claim to the extent such Claim would have arisen if such Indemnitee had not
engaged in the transactions contemplated by the Operative Documents;

     (f) any Claim to the extent such Claim is an ordinary and usual operating,
administrative or overhead expense of such Indemnitee other than such expenses caused by the
occurrence of an Event of Default;

     (g) any Claim that constitutes a Finance Party Encumbrance attributable to such
Indemnitee;

     (h) in the case of any Lenders, (A) any Claim resulting from any offer, sale or
assignment of its Loans under this Agreement, unless an Event of Default shall have occurred
and be continuing, and (B) any Claim to the extent attributable to violations of applicable
securities laws attributable to such Lenders’ own actions in connection with any such offer,
sale, assignment or other disposition by such Lenders;

     (i) any Claim to the extent attributable to the authorization or the giving by such
Indemnitee of any amendment, supplement, waiver or consent with respect to any of the
Operative Documents, other than (A) such as has been requested by the Borrower,

38

 

(B) such as
is required by any of the Operative Documents or (C) any thereof at a time an Event of
Default related thereto shall have occurred and be continuing;

     (j) any Claim to the extent attributable to a failure by the Security Trustee to
distribute in accordance with this Agreement any amounts received and distributable by it
hereunder.

     12.4 Insured Claims. In the case of any Claim indemnified by the Borrower hereunder
which is covered by a policy of insurance maintained by the Borrower, each Indemnitee agrees to
cooperate, at the Borrower’s cost and expense, with the insurers in the exercise of their rights to
investigate, defend or compromise such Claim as may be required to retain the benefits of such
insurance with respect to such Claim.

     12.5 Claims Procedure. An Indemnitee shall promptly notify the Borrower in writing of
any Claim as to which indemnification is sought; provided that the failure to so notify the
Borrower shall not relieve the Borrower from any liability which they may have to such Indemnitee
pursuant to this Article XII except to the extent such failure prejudices the Borrower’s ability to
defend such Claim. Subject to the rights of insurers under policies of insurance maintained by the
Borrower and the provisos below, the Borrower shall have the right to investigate and the right in
its sole discretion to defend or compromise any such Claim, and the applicable Indemnitee shall, at
the Borrower’s cost and expense, cooperate with all reasonable requests of the Borrower in
connection therewith; provided that (i) if the Borrower shall settle or compromise any
Claim, the Borrower shall do so at its own expense or shall provide funds to or on behalf of such
Indemnitee on an After-Tax Basis to pay such Claim, (ii) the Borrower shall not settle or
compromise any Claim with respect to which the Borrower has not agreed to indemnify such Indemnitee
to such Indemnitee’s satisfaction or on a basis that admits any criminal liability, gross
negligence or willful misconduct by any Indemnitee, and (iii) upon the request of such Indemnitee,
the Borrower will actively pursue in good faith a motion to dismiss such Indemnitee from any
action, suit or proceeding related to such Claim and will consult with such Indemnitee about the
conduct of such motion to dismiss; and provided, further, that, the Borrower shall
not be entitled to assume and control the defense of or compromise any such Claim (A) during the
continuance of any Default or any Event of Default, or (B)  if any actual or potential material
conflict of interest exists making it advisable in the good faith opinion of such Indemnitee (on
the basis of prevailing standards of professional responsibility) for such Indemnitee to be
represented by separate counsel, or (C) if such Claim or any related action, suit or proceeding
will involve any non-de minimis risk of the sale, forfeiture or loss of, or the creation of any
Security Interest (other than Permitted Encumbrance) on the Collateral, or (D) if such Claim or any
related action, suit or proceeding involves any risk of criminal liability to such Indemnitee, or
(E) unless the Borrower shall have acknowledged in writing its obligation to indemnify such
Indemnitee pursuant to this Article XII, or (F) if the nature of any such Claim resulting from the
gross
negligence or willful misconduct of the Borrower is such that the Indemnitee reasonably
considers that that its reputation may be materially damaged by the existence of such Claim or by
the Borrower conducting such defense, and, in any such case, the relevant Indemnitee will have the
right to control the defense of such Claim at the expense of the Borrower. Where the Borrower or
the insurers under a policy of insurance maintained by the Borrower undertake the defense of an
Indemnitee with respect to a Claim, no additional legal fees or expenses of such Indemnitee in
connection with the defense of

39

 

such Claim shall be indemnified
hereunder unless any of the circumstances specified in clause (A) through (E) of the preceding
proviso shall apply or such fees or expenses or were incurred at the request of the Borrower or
such insurers, in any of which cases, the reasonable fees and expenses of counsel to the Indemnitee
that is reasonably acceptable to Borrower shall be payable by the Borrower on an After-Tax Basis
for so long as such circumstances shall continue. Subject to the requirements of any policy of
insurance, an Indemnitee may participate at its own expense (subject to the preceding sentence) in
any judicial proceeding controlled by the Borrower pursuant to the preceding provisions and such
participation shall not constitute a waiver of the indemnification provided in this Article XII.
The Borrower will provide the Indemnitee with all information not within the control of the
Indemnitee as is reasonably available to the Borrower and which the Indemnitee may reasonably
request and shall otherwise cooperate in all reasonable respects with the Indemnitee in the
exercise of its rights and the performance of its obligations under this Section 12.5. Nothing in
this Article XII shall be deemed to require any Indemnitee to contest any Claim or to assume
responsibility for or control the defense of any Claim. No Indemnitee shall be prevented by this
Section 12.5 from settling or paying any Claim immediately if such Indemnitee is required by
applicable law to do so.

     12.6 Subrogation. To the extent that a Claim indemnified by the Borrower under this
Article XII is in fact paid in full by the Borrower and/or an insurer under a policy of insurance
maintained by the Borrower, the Borrower and/or such insurer, as the case may be, shall be
subrogated to the rights and remedies of the Indemnitee on whose behalf such Claim was paid (other
than rights of such Indemnitee under insurance policies maintained at its own expense) with respect
to the transaction or event giving rise to such Claim. So long as no Default or Event of Default
shall have occurred and be continuing, should an Indemnitee receive any payment (except under
insurance policies maintained at its own expense) from any party other than the Borrower or its
insurers, in whole or in part, with respect to any Claim paid by the Borrower or its insurers
hereunder, such Indemnitee shall promptly pay the amount so received (but not an amount in excess
of the amount the Borrower or any of its insurers has paid in respect of such Claim) over to the
Borrower.

     12.7 Effect of Other Indemnities. The Borrower’ obligations under this Article XII
shall be those of a primary obligor whether or not the person indemnified shall also be indemnified
with respect to the same matter under the terms of this Agreement, or any other document or
instrument, and the person seeking indemnification from the Borrower pursuant to any provision of this Agreement may proceed
directly against the Borrower without first seeking to enforce any other right of indemnification.

     12.8 Survival. The indemnities and other obligations of the Borrower, and the
obligations of any Indemnitee, under this Article XII shall survive the Lenders’ making their
respective commitments available, the Maturity Date for all of the Loans and the expiration or
other termination of the Operative Documents.

40

 

ARTICLE XIII

TAX INDEMNITIES

     13.1 Taxes Indemnified. Subject to the exclusions stated in Section 13.2 below, the
Borrower agrees to indemnify, protect, defend and hold harmless on an After-Tax Basis each Tax
Indemnitee against Taxes imposed on or with respect to any Tax Indemnitee, the Borrower, the
Aircraft, the Airframe, any Engine or any Part, the Collateral, or any Loan in connection
therewith, upon or with respect to or relating to:

     (a) the Loans, their advance by the Lenders, the payment of any amounts thereon or any
refinancing thereof;

     (b) property, income, or other proceeds received with respect to the property held by
the Tax Indemnitees under the Operative Documents;

     (c) the payment of the purchase price pursuant to the Assigned Aircraft Purchase
Agreement or any other amount paid or payable pursuant to any Operative Document or any
document related thereto or the property or the income or other proceeds with respect to any
of the Collateral held by the Security Trustee;

     (d) any of the Operative Documents and any other documents contemplated hereby or
thereby and amendments and supplements hereto and thereto or the execution, delivery and
performance of any thereof or the issuance, acquisition, holding or subsequent transfer
thereof or otherwise with respect to or in connection with the transactions described or
contemplated herein or therein; or

     (e) any reasonable out-of-pocket costs and expenses fairly attributable to any of the
foregoing incurred by any Tax Indemnitee.

     13.2 Taxes Excluded. The provisions of Section 13.1 shall not apply to, and the
Borrower shall have no indemnity liability pursuant to Section 13.1 with respect to:

     (a) Taxes (other than (x) any Tax that is or is in the nature of a sales, use, license,
value added, stamp, transfer, excise, goods and services, property or rental Tax or (y) any
withholding Tax (1) that is imposed by any government or taxing authority, or (2) with
respect to payments or deemed payments on or with respect to any Unpaid Sum or on payments
to any Tax Indemnitee that is imposed by the United States) imposed by any government or
taxing authority on, based on, measured by or with respect to gross or net income, gross or
net receipts or capital gains (including, without limitation, any minimum Taxes, alternative
minimum Taxes, personal holding company Taxes, accumulated earnings Taxes and any Taxes on
or measured by any items of tax preference) or that are franchise Taxes, Taxes on doing
business or Taxes on, based on, or measured by or with respect to capital or net worth;
provided, that there shall not be excluded by this Section 13.2(a) any such Taxes
imposed by any government or taxing authority located outside the United States to the
extent such Taxes are imposed as a result of (A) the location, use, operation or presence of
the Aircraft, the Airframe, any Engine, any Part, or the Collateral, or any interest therein
in such jurisdiction, (B) the

41

 

presence, activity or other connection of the Borrower in or
with such jurisdiction, (C) the Borrower making or deemed to be making a payment from or
through such jurisdiction, (D) the execution or delivery of any Operative Document (or any
amendment thereof or supplement thereto) or the creation, recording or perfection of any
security interest in such jurisdiction or (E) any combination of factors (A), (B), (C) and
(D) of this Section 13.2(a); provided, further, there shall not be excluded
under this paragraph (x) any amount necessary to make any payment hereunder on an After-Tax
Basis or (y) any Taxes imposed on or payable by a Tax Indemnitee as a result of the failure
of any person to withhold income tax from any payment pursuant to any Operative Document
unless such Tax Indemnitee expressly agreed in any Operative Document to withhold such
income tax from such payment;

     (b) Taxes imposed on any Tax Indemnitee to the extent resulting from the willful
misconduct, gross negligence or fraud of such Tax Indemnitee or any Affiliate thereof or the
breach or inaccuracy of any representation, warranty or covenant of such Tax Indemnitee or
any Affiliate thereof in any Operative Document;

     (c) Taxes imposed on any Tax Indemnitee in excess of the Taxes that would have been
imposed and indemnified against had there not been a transfer, determined at the time of
transfer, to such Tax Indemnitee (x) of any interest in the Aircraft, the Airframe, any
Engine, any Part, or the Collateral or any interest in or rights arising under any Operative
Document or (y) of any interest (direct or indirect) in another Tax Indemnitee;
provided that the exclusion described in this Section 13.2(c) shall not apply to
(A) any increase in any indemnity payable under this Article XIII to any Tax Indemnitee that
is a corporation incorporated under the laws of the United States or a state thereof or a
partnership each partner of which is such a corporation to the extent attributable to the
fact that the income tax rates used by the transferee for the purpose of calculating
payments on an After-Tax Basis are greater than those used by the original Tax Indemnitee;
(B) any increase in the amount of any Tax imposed on or payable by any such assignee or
transferee after the date of such assignment or transfer as a result of a Change in Law
(including, for the avoidance of doubt, any treaty) relating to Taxes after the date of such
assignment or transfer or (C) any increase in the amount of any Tax
pursuant to a transfer that is requested by the Borrower or that occurs after the
occurrence of an Event of Default that is continuing;

     (d) Taxes imposed on any Tax Indemnitee on or with respect to any voluntary transfer
(it being understood and agreed that any transfer that occurs (1) pursuant to a request by
the Borrower or in connection with an Event of Default that has occurred and is continuing,
(2) as a result of the substitution, replacement, modification, pooling or improvement of
the Aircraft, the Airframe, any Engine or any Part, (3) as a result of a requirement of the
law of any jurisdiction due to the operation or presence of the Aircraft, the Airframe, any
Engine, any Part or the Collateral, or any activity or presence of the Borrower, in such
jurisdiction, (4) as a result of any bankruptcy or insolvency of, or a foreclosure against,
such Tax Indemnitee, or (5) pursuant to the Operative Documents shall not be a voluntary
transfer by such Tax Indemnitee) (x) of any interest in the Aircraft, the Airframe, any Engine, any Part, the Collateral or any interest in or rights

42

 

arising under any Operative
Document or (y) of any interest (direct or indirect) in a Tax Indemnitee;

     (e) Taxes imposed with respect to any period before the date of this Agreement (unless
attributable to any act or omission on the part of the Borrower or any of its Affiliates) or
after the Maturity Date and discharge in full of the Borrower’s obligations to pay all
Unpaid Sums due at such time under the Operative Documents; provided, that there
shall not be excluded by this Section 13.2(e) any Taxes related to events occurring or
matters arising prior to or simultaneously with the Maturity Date or imposed with respect to
any payment by the Borrower after such date;

     (f) Taxes imposed on any Tax Indemnitee to the extent such Taxes would not have been
imposed but for the failure of such Tax Indemnitee or any Affiliate thereof to comply with
(1) certification, information, documentation, reporting or other similar requirements
concerning such Finance Party’s nationality, residence, identity or connection with the
jurisdiction imposing such Taxes, if such compliance is required by statute, regulation or
administrative procedure of the jurisdiction imposing such Taxes as a precondition to relief
or exemption from such Taxes and such Tax Indemnitee or Affiliate was eligible to comply
with such requirement or (2) any other certification, information, documentation, reporting
or other similar requirements under the Tax laws, regulations or administrative procedures
of the jurisdiction imposing such Taxes that would establish entitlement to otherwise
applicable relief or exemption from such Taxes available to such Tax Indemnitee or
Affiliate; provided, however, that the exclusions set forth in this
Section 13.2(f) shall only apply if the Borrower, any governmental authority or any other
person shall have given such Tax Indemnitee or Affiliate timely written notice of such
certification, information, document, reporting or other similar requirement at such time
and in such manner as shall give such Tax Indemnitee a reasonable opportunity to comply with
such requirement (or, if requested by the Tax Indemnitee, the Borrower shall have timely
prepared and filed any such forms or documents on behalf of the Tax Indemnitee at the
Borrower’s sole expense as shall be necessary to comply with such requirement) and such Tax
Indemnitee shall not have determined in its sole opinion determined in good faith that
compliance with such requirement would create a risk of unindemnified adverse consequences to such Tax
Indemnitee or any of its Affiliates;

     (g) Taxes to the extent such Taxes would not have been imposed but for an amendment to
any Operative Document to which the Borrower is not a party without the prior written
consent of the Borrower, unless such amendment occurs in connection with and during the
continuance of an Event of Default or is required by applicable law or is required by any
Operative Document;

     (h) so long as all other amounts due under the Operative Documents are being paid when
due without reduction, Taxes for so long as such Taxes are being contested in accordance
with the provisions of Section 13.3(c) hereof;

     (i) interest, penalties or additions to Tax imposed on a Tax Indemnitee to the extent
such interest, penalties or additions to Tax would not have been imposed but for

43

 

the failure
of such Tax Indemnitee or any Affiliate thereof to file any return properly and timely,
unless such failure results from a failure of the Borrower to comply with this Article XIII;

     (j) Taxes imposed on a Tax Indemnitee resulting from, or which would not have occurred
but for, a Finance Party Encumbrance for which such Tax Indemnitee is responsible;

     (k) Taxes imposed on the Security Trustee that are on, based on or measured by any
trustee fees for services rendered by the Security Trustee;

     (l) Taxes imposed on a Tax Indemnitee to the extent they would have been incurred
notwithstanding their entry into the Operative Documents; and

     (m) any Tax imposed on or payable by any Tax Indemnitee to the extent such Tax was
actually paid or reimbursed in connection with making a payment on an After-Tax Basis to
such Tax Indemnitee by the Borrower pursuant to any other provision of the Operative
Documents.

     13.3 Certain Agreements.

     (a) If any Tax Indemnitee shall realize a tax benefit with respect to Taxes paid or
indemnified against by the Borrower pursuant to this Article XIII (whether by way of
deduction, credit, allocation or apportionment of income or otherwise) except to the extent
previously taken into account in computing the indemnity or other payment for such Taxes,
such Tax Indemnitee shall pay to the Borrower an amount that, after subtraction of any
further Tax savings such Tax Indemnitee realizes as a result of the payment thereof, is
equal to the amount of such Tax benefit; provided that (x) no Default or Event of Default
has occurred and is continuing, (y) any subsequent loss of any Tax benefit for which a
payment has been made to the Borrower hereunder (or which was taken into account in
computing the amount of the Borrower’s indemnity hereunder) shall
be treated as an indemnifiable Tax hereunder without regard to the exclusions set forth
in Section 13.2 and (z) such Tax Indemnitee shall not be obligated to make any payment
pursuant to this sentence to the extent that the amount of such payment would exceed (1) the
aggregate amount of all prior payments by the Borrower to such Tax Indemnitee pursuant to
this Article XIII, less (2) the aggregate amount of all prior payments by such Tax
Indemnitee to the Borrower pursuant to this Article XIII. Each Tax Indemnitee shall use
reasonable endeavors in filing its Tax returns and in dealing with taxing authorities to
seek and claim each such identifiable Tax benefit and Tax savings and to minimize the Taxes
indemnifiable by the Borrower hereunder; provided, however, that no Tax Indemnitee shall be
restricted in its right to make available Tax elections and otherwise arrange its Tax
affairs as it, in its sole discretion, deems appropriate and no Tax Indemnitee shall be
obligated to re-arrange its Tax affairs or to disclose any information regarding its Tax
affairs or computations to the Borrower or any other Person. Any amount payable by any Tax
Indemnitee pursuant to this Section 13.3(a) with respect to any saving in Taxes shall be
paid as soon as reasonably practicable after such Tax Indemnitee realizes the identifiable
Tax benefit (including making any estimated Tax

44

 

payment reflecting (or that would reflect
but for the use of deductions or credits attributable to activities unrelated to the
transactions contemplated by the Operative Documents) such identifiable Tax benefit or, if
an Event of Default is then continuing, within 45 Business Days after the date such Event of
Default ceases to be continuing (assuming that such identifiable Tax benefit has been
realized by such Tax Indemnitee).

     (b) The Borrower shall pay any Tax for which it is liable pursuant to this Article XIII
directly to the appropriate taxing authority, if allowable, on or before the due date for
such Tax or, if not so allowable, directly to the Tax Indemnitee. Any indemnity payable
directly to any Tax Indemnitee pursuant to this Article XIII shall be paid to such Tax
Indemnitee within 10 Business days after receipt of a written demand therefor from such Tax
Indemnitee accompanied by a written statement describing in reasonable detail the Taxes that
are the subject of such indemnity and the computation of the amount so payable (which
written statement shall be subject to verification in accordance with the provisions of
Section 13.3(c)), but not prior to the later of (x) two Business Days prior to the due date
for the payment of such Taxes or (y) in the case of amounts which are being contested in
accordance with Section 13.3(c), the time such contest (including all appeals, if any) is
finally resolved. If requested by a Tax Indemnitee in writing, the Borrower shall furnish
to such Tax Indemnitee the original or a certified copy of a receipt (if any is reasonably
available to the Borrower) or such other evidence of payment as is reasonably acceptable to
such Tax Indemnitee and reasonably available to the Borrower.

     (c) If written claim is made against any Tax Indemnitee or if any proceeding is
commenced against any Tax Indemnitee (by a written notice of such proceeding) for any Tax
for which the Borrower is obligated pursuant to this Article XIII, such Tax Indemnitee shall
notify the Borrower in writing promptly and shall not take any action with respect to such
claim or Tax without the consent of the Borrower for 30 days after the receipt of such
notice by the Borrower, except in the case of any such claim or proceeding, if action shall
be required by law or regulation to be taken prior to the end of such 30-day period. If
requested by the Borrower in writing within 30 days after the receipt of such notice by the
Borrower or such shorter period as is specified above, such
Tax Indemnitee shall in good faith diligently contest through appropriate
administrative and judicial proceedings (including pursuing all judicial appeals, but not to
the United States Supreme Court) in the name of such Tax Indemnitee (or, if requested by the
Borrower and permitted by applicable law, and if such contest does not involve net income
Taxes or Taxes that are not indemnified by the Borrower hereunder, permit the Borrower to
contest in the name of the Borrower or such Tax Indemnitee, unless the Tax Indemnitee
determines that permitting the Borrower to control the contest could have a material adverse
effect on such Tax Indemnitee), the validity, applicability and amount of such Tax by
(x) resisting payment thereof, (y) not paying the same except under protest, if protest be
necessary or proper, or (z) if payment be made, seeking a refund thereof in appropriate
administrative and judicial proceedings; provided that no such contest shall be
commenced or continued unless (A) the Borrower shall have agreed in writing to indemnify
such Tax Indemnitee for, and pay on a current basis, all reasonable out-of-pocket costs and
expenses which such Tax Indemnitee may incur in connection with contesting such claim,
including, without limitation, all reasonable legal, accountants’ and investigatory fees and
disbursements, (B) if such contest is to be initiated by the

45

 

payment of, and the claiming of
a refund for, such Tax by such Tax Indemnitee, then the Borrower shall provide such Tax
Indemnitee (on an interest-free basis) with the amount of such payment (including interest,
penalties and additions to Tax with respect thereto) and shall agree to (and shall on
demand) indemnify such Tax Indemnitee against any adverse Tax consequences to such Tax
Indemnitee resulting from such interest-free loan, (C) such Tax Indemnitee shall have
reasonably determined that the action to be taken will not result in the risk of imposition
of criminal penalties or any material risk of forfeiture, sale or loss of, or the creation
of any Security Interest (other than a Permitted Encumbrance) on any Collateral, (D) no
Default or Event of Default shall have occurred and be continuing, (E) the amount of the
potential indemnity (together with the amount of all logically related claims that have been
or could be raised in any audit involving such Tax Indemnitee for which the Borrower may be
liable to pay an indemnity under this Article XIII) exceeds $25,000.00, (F) the Borrower
shall have acknowledged its liability under this Article XIII for such Taxes to the extent
such contest is not successful provided that the Borrower will not be bound by its
acknowledgment of liability if the contest is resolved with a written judicial decision on
an articulated basis that clearly and unambiguously demonstrates that the Borrower has no
liability under this Article XIII with respect to such Tax, (G) prior to the Borrower
commencing any judicial action on behalf of any Tax Indemnitee, the Borrower shall have
provided to such Tax Indemnitee at the Borrower’s expense an opinion of independent Tax
counsel selected by the Borrower and reasonably acceptable to the Tax Indemnitee that a
reasonable basis exists to contest such claim or, in the case of any appeal of an adverse
court decision, to the effect that it is more likely than not such appeal will be successful
and (H) if the contested Tax is of a continuing nature and the Tax Indemnitee’s liability
for such Tax shall have been determined in a manner adverse to the Tax Indemnitee by a court
after a contest conducted pursuant to this Section 13.3(c), there shall have been a change
in applicable law since the date of the previous judicial decision and the Tax Indemnitee
shall have received at the Borrower’s expense, an opinion of independent Tax counsel
selected by the Borrower and reasonably acceptable to the Tax Indemnitee that as a result of
such change in applicable law the contest is more likely than not to be successful. The
party in control of the contest shall consider in good faith the reasonable requests of
the other party, including the request to participate in the contest. The Tax Indemnitee
shall not be required by this Section 13.3(c) or any other provision in the Operative
Documents (unless required by applicable law or necessary in order to pursue the contest) to
disclose to the Borrower or any other Person such Tax Indemnitee’s tax returns, books or
records, or any other document or information that such Tax Indemnitee in its sole opinion
considers to be confidential. If any Tax Indemnitee shall obtain a refund (the amount of
such refund to be determined in the good faith discretion of such Tax Indemnitee) (including
a credit or other offset against liability for Tax) of all or any part of any Tax paid by
the Borrower or for which the Borrower shall have reimbursed such Tax Indemnitee, such Tax
Indemnitee shall pay the Borrower an amount which, after subtraction of any further savings
of Taxes actually realized by such Tax Indemnitee as a result of such payment, shall be
equal to the amount of such refund, including any interest actually received by or credited
to such Tax Indemnitee on such refund attributable to such Tax that is properly attributable
to the period subsequent to such payment or reimbursement by the Borrower, less any Taxes
payable by such Tax

46

 

Indemnitee as a result of the receipt of such refund and/or interest;
provided that no Default or Event of Default shall have occurred and be continuing
and that such amount (other than the portion thereof representing interest on such refund)
shall not exceed the amount paid or advanced by the Borrower to or on behalf of the Tax
Indemnitee with respect to such refunded Tax. If any Tax Indemnitee is required to repay to
any taxing authority all or any part of a refund with respect to which such Tax Indemnitee
shall have made a payment to the Borrower pursuant to this Section 13.3(c), then the
Borrower shall pay to such Tax Indemnitee on an After-Tax Basis the amount of such repayment
without regard to Section 13.2. A Tax Indemnitee may at any time elect, in writing, not to
contest any Tax pursuant to this Section 13.3(c); provided that such election shall
constitute a waiver by such Tax Indemnitee of any right to indemnification by the Borrower
pursuant to this Article XIII with respect to such Tax (and with respect to similar Taxes
relating to any other taxable period to the extent that such failure to contest causes any
contest of any claim for such Taxes to be precluded) and such Tax Indemnitee shall refund to
the Borrower any amounts paid or advanced by the Borrower with respect to such Tax (other
than any expenses of the contest).

     (d) If any report, return or statement is required to be filed with respect to any Tax
that is subject to indemnification under this Article XIII, the Borrower shall, if permitted
by applicable law to do so, timely file such report, return or statement (except for any
such report, return or statement that a Tax Indemnitee has notified the Borrower that such
Tax Indemnitee intends to file); provided that such Tax Indemnitee shall have
furnished the Borrower, at the Borrower’s request, with such information, not within the
control of the Borrower, as is in such Tax Indemnitee’s control and is reasonably available
to such Tax Indemnitee and necessary to file such report, return or statement (it being
understood that the Tax Indemnitee shall not be required to furnish copies of its tax
returns, books, or records). If the Borrower is not permitted by applicable law to file any
such report, return or statement, or has insufficient information, the Borrower will
promptly notify the relevant Tax Indemnitee of such requirement and prepare and deliver to
such Tax Indemnitee a proposed form of such report, return or statement, within a reasonable
time prior to the time such report, return or statement is to be filed. No Tax
Indemnitee shall be required to provide the Borrower with any information which such
Tax Indemnitee determines in its sole discretion to be confidential. The Borrower shall
hold each Tax Indemnitee harmless from and against all liabilities arising out of any
insufficiency or inaccuracy of any report, return or statement described in this
Section 13.3(d) unless such insufficiency or inaccuracy results from the insufficiency or
inaccuracy of any information supplied by the Tax Indemnitee pursuant to this
Section 13.3(d).

     (e) At the written request of the Borrower within 20 days after receipt by the Borrower
of a Tax Indemnitee’s request for an indemnity payment and the written statement described
in Section 13.3(b), or of a Tax Indemnitee’s statement regarding an amount payable by the
Tax Indemnitee to the Borrower pursuant to Section 13.3(a), any amount or statement
determined or prepared by a Tax Indemnitee pursuant to this Article XIII shall be verified
by a nationally recognized firm of independent accountants selected by the relevant Tax
Indemnitee and reasonably acceptable to the Borrower, and in order to enable such firm to
verify such Tax Indemnitee’s computations, such Tax

47

 

Indemnitee shall provide to such firm
(for their own confidential use and not be disclosed to the Borrower or any other Person)
all information reasonably necessary for such verification; provided,
however, that neither such firm, the Borrower nor any other person will have any
right to examine any tax return, books or records of such Tax Indemnitee. The costs of any
verification shall be payable by the Borrower unless such firm determines that any amount
payable by the Borrower is less, or that any amount payable by the relevant Tax Indemnitee
is more, than the amount stated by the relevant Tax Indemnitee by at least 5%. Such firm
shall be requested to make its determination within 30 days. In the event such firm shall
determine that such amount or statement is incorrect, then such firm shall determine what it
believes to be the correct amount, and such determination shall be binding upon the parties.
The sole responsibility of such firm shall be to verify the computation of the amounts
payable hereunder; the interpretation of this Agreement or any other Operative Document
shall not be within the scope of such firm’s responsibilities.

     (f) Each payment by the Borrower to a Tax Indemnitee pursuant to this Article XIII
shall be made on an After-Tax Basis.

     13.4 Withholding on Payments.

     (a) All amounts payable by the Borrower pursuant to the Loan Documents shall be free of
withholding on account of any Taxes, unless such withholding is required by applicable law.
If any Tax is required to be withheld from any such amount payable by the Borrower to or for
the benefit of a Tax Indemnitee under any Loan Document, the Borrower (A) shall pay an
additional amount such that the net amount actually or constructively received by such Tax
Indemnitee will, after such withholding (including withholding from any additional amount
payable pursuant to this sentence), equal the full amount of the payment then due, (B) shall
pay, or cause to be paid, to the relevant Tax authority the full amount required to be
withheld (including the full amount required to
be withheld from any additional amount paid pursuant to this sentence) in accordance
with applicable law, and (C) shall furnish to the affected Tax Indemnitee as soon as
practicable an official receipt (or a certified copy thereof) if reasonably obtainable or
such other documentation as is reasonably obtainable and reasonably acceptable to such Tax
Indemnitee evidencing payment of the withheld Tax.

     (b) If the Security Trustee is required by any applicable law to withhold any Tax from
any amount payable by such person to the Facility Agent, the Security Trustee, or any Lender
under the this Agreement, (A) such party will give the Borrower and Lenders prompt written
notice of such requirement, (B) the party making such payment shall withhold such Tax from
such payment, and (C) the Borrower shall pay to the Facility Agent, the Security Trustee, or
such Lender (as the case may be) an additional amount such that the sum of the net amounts
received by the Facility Agent, the Security Trustee, or such Lender (as the case may be)
will, after such withholding (including withholding from any additional amount payable
pursuant to this sentence), equal the amount that the Security Trustee, the Facility Agent
or such Lender (as the case may be) would have received if such withholding had not been
required. As among the Borrower, the Facility Agent, the Security Trustee and each Lender,
the Security Trustee shall act as

48

 

the withholding agent for any Taxes required to be
withheld pursuant to this Agreement and shall be responsible for satisfying all governmental
filings and information requirements in connection therewith.

     (c) For the avoidance of doubt, if for any reason the Borrower is required by this
Section 13.4 to pay any amount with respect to Excluded Taxes, the relevant Tax Indemnitee
shall promptly upon demand repay such amounts to the Borrower.

     (d) Each Non-U.S. Lender shall deliver to the Facility Agent and the Security Trustee
on the Initial Advance Date (or, if such Lender becomes a Non-U.S. Lender after the Initial
Advance Date, on the date on which such Non-U.S. Lender becomes a Lender) a properly
completed and duly signed Internal Revenue Service Form W-8BEN, W-8ECI or W-8EXP (or
applicable successor form) evidencing such Lender’s entitlement to a complete exemption from
(or, in the case of a Lender that becomes a Lender after the Initial Advance Date, a
reduction in the rate of) United States withholding taxes on interest and all other amounts
payable to such Lender pursuant to the Loan Documents. Each Lender that is a United States
person (as defined in Section 7701(a)(30) of the Code), but is not a person described in
Section 6049(b)(4) of the Code, shall deliver to the Borrower, the Facility Agent and the
Security Trustee on the Initial Advance Date (or, if such Lender becomes a Lender after the
Initial Advance Date, on the date on which such Lender becomes a Lender) a properly
completed and duly signed Internal Revenue Service Form W-9 (or applicable successor form),
evidencing such Lender’s entitlement to a complete exemption from United States withholding
taxes on interest and all other amounts payable to such Lender pursuant to the Loan
Documents.

     (e) The Facility Agent and the Security Trustee shall deliver to the Borrower no later
than required by law and from time to time thereafter when required by applicable law or
reasonably requested by any such person a properly completed and duly
signed Internal Revenue Service Form W-8IMYor applicable successor form (including all
attachments required by applicable law or by the instructions to Form W-8IMY).

     (f) If any Internal Revenue Service form delivered by the Facility Agent, Security
Trustee or any Lender pursuant to this Section 13.4 expires or becomes inaccurate or
obsolete, the Facility Agent, Security Trustee or such Lender (as the case may be) shall
deliver to the Borrower, the Facility Agent and the Security Trustee a replacement Internal
Revenue Service form (or applicable successor form).

     (g) The Facility Agent and each Lender agrees (and each other Lender, by its execution
hereof and by acceptance of the assignment of any Loans, shall be deemed to agree) to
indemnify and hold harmless on an After-Tax Basis each of the Facility Agent (in the case of
Lenders), the Security Trustee and the Borrower, within 30 days after receipt of written
demand therefor, for all liabilities, losses, costs and expenses paid or incurred by the
Facility Agent (in the case of Lenders), the Security Trustee or the Borrower (as the case
may be) as a result of its failure to comply with the provisions of this Section 13.4 or the
inaccuracy of any Internal Revenue Service form delivered by it pursuant to this
Section 13.4.

49

 

     (h) If the Borrower, the Facility Agent or the Security Trustee fails to withhold from
any payment to the Facility Agent or a Lender pursuant to this Agreement or any Loan
Document any Tax which such person is required by applicable law to withhold from such
payment, but for which it is not responsible under this Section 13.4, the Security Trustee,
the Facility Agent or such Lender (as the case may be) shall repay to such person, within
ten Business Days after receipt of such person’s written demand therefor, the amount which
such person was required to withhold.

     (i) If any party hereto determines that any Tax is required by applicable law to be
withheld from any amount payable to the Facility Agent, the Security Trustee or any Lender
pursuant to any Loan Document, the party making such determination shall give written notice
thereof to the other parties hereto and to the affected Finance Parties, and if requested by
the Borrower, each other party hereto and the affected Lender shall use reasonable efforts
to take appropriate action to eliminate or minimize the Borrower’s indemnity liability under
this Article XIII, provided that no such person shall be obligated to accept any amendment
of any Loan Document or to take any other action if such amendment or other action might in
such person’s sole discretion be adverse to it; and if the Borrower and the other notified
parties do not agree on a course of action pursuant to the preceding clause of this sentence
within 60 days after the date of the Borrower’s request therefor, the Borrower may cause one
or more institutional investors unrelated to the Borrower and reasonably acceptable to the
remaining Lenders to purchase the Loans of the affected Lender (provided that such transfer
is otherwise in accordance with Article XXI hereof) on the next scheduled Interest Payment
Date for an amount equal to the aggregate outstanding principal amount of those Loans plus
all accrued and unpaid interest thereon resulting from such transfer, and concurrently with
such purchase the affected Lender shall be paid all other amounts owing to it pursuant to
the Operative Documents.

     13.5 Survival. The indemnities and other obligations of the Borrower, and the
obligations of each Tax Indemnitee, under this Article XIII shall survive the Lenders’ making their
respective Commitments available, the Maturity Date of all of the Loans and the expiration or other
termination of the Operative Documents.

     13.6 Non-Parties. In the case of any Tax Indemnitee that is not a party to this
Agreement, the Borrower may require such Tax Indemnitee to agree in writing, in form and substance
reasonably acceptable to the Borrower, to perform its obligations under the provisions of this
Article XIII before making any payment to such Tax Indemnitee under this Article XIII.

ARTICLE XIV

INCREASED COSTS, ETC.

     14.1 Increased Costs.

          14.1.1 If, by reason of any Change in Law occurring after the Initial Advance Date:

50

 

     (a) a Lender or any Holding Company of such Lender has a reduction on its rate of
return on its capital as relates to the class of assets and liabilities that includes its
commitments and Loans made under this Agreement below that which such Lender or Holding
Company would have achieved but for such Change in Law (taking into account the capital
adequacy policies developed by such Lender in connection with the implementation of the
Basel II accord);

     (b) a Lender or any Holding Company of such Lender incurs a cost as a result of such
Lender entering into or assuming or maintaining a commitment or performing its obligations
(including its obligation to participate in the making of any Loans) under this Agreement;
or

     (c) there is any increase in the cost to a Lender or any Holding Company of such Lender
of funding or maintaining all or any of the Loans comprised in a class of loans formed by or
including such Lender’s share of the Loans made or to be made by such Lender, including any
reserve, special deposit or similar requirement assessed against assets of, deposits with or
for account of, or credit extended by, such Lender;

then, subject to the provisions of this Article 14, the Borrower shall, from time to time on demand
of the Facility Agent (on behalf of any Lender), promptly pay to the Security Trustee for the
account of that Lender, amounts sufficient to hold harmless and indemnify such Lender on an
After-Tax Basis, from and against, as the case may be, (x) the reasonably allocable portion of any
such reduction in the rate of return on capital, (y) any such actual cost, (z) any such
increased cost (or such proportion of such increased cost as is reasonably attributable to its
participating in the funding or maintaining of the Loans) (together, “Increased Costs”);
provided, that:

     (d) the Borrower shall have no liability under this Section 14.1 in respect of any
Taxes;

     (e) the Borrower shall have no liability under this Section 14.1 if (i) the Borrower
elects to repay the affected Loans and cancels the affected commitments pursuant to Section
6.6 hereof (provided that the Borrower shall nevertheless be liable under this Section 14.1
for increased costs relating to the period prior to such prepayment and cancellation), (ii)
such Lender is not also seeking indemnification against similar increased costs, to the
extent it is entitled to do so, in transactions with substantial borrowers (it being agreed
that an officer’s certificate to the contrary from any such Lender shall constitute
sufficient evidence of such fact) or (iii) the claim for Increased Costs arises out of a
voluntary relocation by such Lender of its Facility Office;

     (f) such Lender shall only be entitled to receive compensation for such Increased Costs
from and after the time that is 120 days prior to the date the Increased Cost Notice
referred below is received by Borrower; and

     (g) such Lender will (at Borrower’s expense) use commercially reasonable efforts to
mitigate the amount of the Increased Costs associated with such event, including designating
a different Facility Office to hold the Loans if such designation will

51

 

avoid or reduce such
Increased Costs and will not, in the sole opinion of such Lender, result in any economic,
legal or regulatory disadvantage to such Lender (other than economic disadvantages for which
the Borrower has provided an indemnity acceptable to such Lender).

          14.1.2 A Lender intending to make a claim for Increased Costs pursuant to Section 14.1 shall,
within thirty (30) days after becoming aware of the same, provide written notice to the Facility
Agent and the Borrower in writing of the event by reason of which it is entitled to do so (the
“Increased Cost Notice”); provided, that:

     (a) the Increased Cost Notice shall described the events giving rise to such Increased
Costs, the basis for determining and allocating such Increased Costs and the amount of each
request by such Lender for compensation under this Article XIV, together with a statement
that the determinations and allocations made in respect of the Increased Costs comply with
the provisions of this Article XIV; and

     (b) such Lender shall not be required to disclose any confidential information relating
to the organization of its affairs, or its capital structure or return on capital.

     14.2 Certificate of Lenders. A certificate of a Lender as to (i) any amount payable
to it under this Agreement or (ii) the amount of any indemnity payable to it, or for its account,
under this Article 14 shall, in either case and in the absence of manifest error, be prima facie
evidence of the existence and amount of such obligation of the Borrower so long the underlying determinations and
allocations are made on a reasonable basis.

     14.3 No Greater Obligation. Notwithstanding any other provision of this Agreement, if
a Lender changes its Facility Office or Facility Agent changes the office through which it is
acting or Facility Agent or a Lender assigns or transfers the whole or any part of any Loan or its
rights, benefits or obligations under this Agreement and such change, assignment or transfer would
at the date of such change, assignment or transfer subject the Borrower to any greater obligation
or liability under this Agreement or any other Operative Documents than it would have been under on
such date if no such change, assignment or transfer had then taken place, then unless such change,
assignment or transfer was made at the request of the Borrower in order to mitigate or avoid the
requirement for payment of additional amounts or increased costs or after the occurrence and
continuation of an Event of Default, the Borrower shall not be obliged to pay any amounts in excess
of the amount that it would have been obliged to pay had no change, assignment or transfer then
taken place.

ARTICLE XV

OTHER INDEMNITIES

     15.1 Currency Indemnity.

          15.1.1 The United States Dollar is the currency of account and payment for each and every sum
at any time due from Borrower hereunder except for amounts which are expressly stated to be due in
any other currency. If any sum due from the Borrower under the Loan Documents (a “Sum”),
or any order, judgment or award given or made in relation to a Sum,

52

 

has to be converted from the
currency (the “First Currency”) in which that Sum is payable into another currency (the
“Second Currency”) for the purpose of:

          (i) making or filing a claim or proof against the Borrower;

          (ii) obtaining or enforcing an order, judgment or award in relation to any litigation
or arbitration proceedings,

the Borrower shall, on an After-Tax Basis, as an independent obligation, within three (3) Business
Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or
liability arising out of or as a result of the conversion including any discrepancy between (A) the
rate of exchange used to convert that Sum from the First Currency into the Second Currency and
(B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

          15.1.2 The Borrower waives any right it may have in any jurisdiction to pay any amount under
the Loan Documents in a currency or currency unit other than that in which it is expressed to be
payable.

     15.2 Break Amounts. The Borrower shall indemnify each Lender against any cost, loss
or liability incurred by that Lender or deemed incurred by that Lender under this Section 15.2
(characterized as a “negative” Break Amount) as a result of:

     (a) funding, or making arrangements to fund, its participation in an Advance requested
by the Borrower in an Advance Request but not made for any reason (other than by reason of
default by that Lender alone);

     (b) any Loan (or part of such Loan) being repaid on a date other than an Interest
Payment Date;

     (c) any Maturity Date not being also an Interest Payment Date; or

     (d) any Loan (or part of such Loan) not being prepaid in accordance with a notice of
prepayment given by the Borrower,

in each case including, without limitation, in relation to funds borrowed or mobilized, the
liquidation or redeployment of any deposits taken or made, and/or the loss of margin, which amount
shall be payable on the dates specified herein for payment of Break Amount. All “negative” Break
Amounts hereunder shall be equal to the excess, if any, of (i) the amount of interest that
otherwise would have accrued on the principal amount so paid, prepaid or not borrowed for the
period from the date of such payment, prepayment or failure to borrow to the last day of the then
current Interest Period for such Loan (or, in the case of a failure to borrow, the Interest Period
for such Loan that would have commenced on the date specified for such borrowing) at the applicable
rate of interest for such Loan provided for herein (excluding the Applicable Margin) over (ii) the
amount of interest that otherwise would have accrued on such principal amount at a rate per annum
equal to the interest component of the amount such Lender would have bid in the London interbank
market for Dollar deposits of leading banks in amounts comparable to such principal amount and with
maturities comparable to such period (as

53

 

reasonably determined by such Lender). Notwithstanding
anything in any Loan Document (except as provided in Section 4.2.2), so long as no Event of Default
shall have occurred and be continuing and as long as no other amounts are due and outstanding under
this Agreement at the relevant time, the Borrower will receive the benefit from any “positive”
Break Amount which may be realized by a Lender (being an amount equal to the excess, if any, of
(ii) over (i) in the preceding sentence.

     15.3 Indemnity to the Facility Agent. The Borrower shall, on an After-Tax Basis,
promptly indemnify the Facility Agent against any reasonable cost, loss or liability incurred by
the Facility Agent as a result of:

          15.3.1 investigating any event which it reasonably believes is an Event of Default; or

          15.3.2 acting or relying on any notice, request or instruction by the Borrower which it
reasonably believes to be genuine, correct and appropriately authorized.

     15.4 Enforcement Indemnity. Without prejudice to the other provisions of this
Article 15 but subject to the limitations contained in Article XII and Article XIII, following the
occurrence of an Event of Default and enforcement by the Security Trustee of its rights under the
Security Documents and without prejudice to the financing provisions of the Loan Documents
(including, without limitation, the indemnities contained herein), the Borrower will on demand, on
an After-Tax Basis, indemnify each Finance Party against any loss, including without limitation
Remarketing Expenses, incurred by that Finance Party, together with all costs and expenses
associated with (i) funding the Lenders’ Purchase Price of any Aircraft and/or (ii) the transfer of
title to, or the maintenance, insurance, storage of, remarketing or leasing of, any Aircraft
incurred by that Finance Party prior to the date of any sale of that Aircraft, in each case
following such enforcement by the Security Trustee.

ARTICLE XVI

EVENTS OF DEFAULT

     16.1 Events of Default. The following events shall constitute “Events of
Default” hereunder (whether any such event shall be voluntary or involuntary, or come about or
be effected by operation of law, or pursuant to, or in compliance with, any judgment, decree or
order of any court or any order, rule or regulation of any administrative or Governmental Body the
United States, or any other jurisdiction, or the administration or interpretation thereof) and each
such Event of Default shall be deemed to exist and continue so long as, but only so long as, it
shall not have been remedied or waived in writing by the Facility Agent:

     (a) The Borrower fails to pay, for any reason whatsoever, whether or not within the
Borrower’s control, any amount of principal of, or interest on, any Loan payable (whether
at stated maturity, by acceleration or otherwise) hereunder on the due date therefor and
such failure continues for five (5) Business Days thereafter;

     (b) The Borrower fails to pay, for any reason whatsoever, whether or not within the
Borrower’s control, any other amount payable by the Borrower (whether at

54

 

stated maturity, by
acceleration or otherwise) hereunder or under any other Operative Document to which the
Borrower is a Party (including, without limitation, any additional amounts required to be
paid by the Borrower in respect of Indemnified Taxes pursuant to Section 13 hereof), on the
due date therefor and such failure continues for ten (10) Business Days after written notice
of such failure has been given by the Facility Agent or the Security Trustee to the
Borrower;

     (c) Any representation, warranty or statement made or deemed to be made by the Borrower
or the Guarantor in this Agreement or in any other Operative Document to which it is a Party
or in any certificate, statement, notice, opinion or any other document provided by, or the
provision of which has been requested or authorized by, or given at the direction of the
Borrower or the Guarantor under or in connection with this
Agreement or any other Operative Document, shall prove to be incorrect in any material
respect as at the date when it was, or was deemed to be, made with reference to the facts
and circumstances subsisting at such date and shall not have been cured (to the extent of
the adverse impact of incorrectness) by the Borrower or the Guarantor within thirty (30)
days after receipt of the Security Trustee’s or the Facility Agent’s written notice to the
Borrower or the Guarantor requiring the same to be cured (to the extent of the adverse
impact of incorrectness); provided, however, if such failure is capable of being
corrected and the Borrower or the Guarantor is diligently proceeding to correct such
failure, the Borrower or the Guarantor shall be provided one hundred twenty (120) days after
receipt of the Security Trustee’s or the Facility Agent’s written notice to the Borrower or
the Guarantor to remedy such failure;

     (d) The Borrower or the Guarantor shall fail to observe or perform in any material
respect any of its obligations under this Agreement or any of the other Operative Documents
to which the Borrower or the Guarantor is a party (other than, for the avoidance of doubt,
any failure to observe or perform an obligation that constitutes a separate Event of Default
under this Section 16.1) and such failure shall not have been remedied within thirty (30)
days after receipt of the Security Trustee’s or the Facility Agent’s written notice to the
Borrower or the Guarantor requiring the same to be remedied; provided, however, if
such failure is capable of being corrected and the Borrower or the Guarantor is diligently
proceeding to correct such failure, the Borrower or the Guarantor shall be provided one
hundred twenty (120) days after receipt of the Security Trustee’s or the Facility Agent’s
written notice to the Borrower or the Guarantor to remedy such failure;

     (e) Any of the Security Documents, or the Security Interests intended to be created
thereby, shall cease to constitute a duly perfected and enforceable security interest over
the Collateral referred to therein with a preference and priority superior to that of all
other Security Interests and if such cessation is capable of remedy, such situation
continues for more than ten (10) Business Days other than as a result of any failure by a
Finance Party to take any action required to be taken by it under the Operative Documents;

     (f) The Borrower or Guarantor shall admit in writing its inability, or be generally
unable, to pay its debts as such debt becomes due; or the Borrower or

55

 

Guarantor shall
(i) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, administrator, administrative receiver, trustee or liquidator of itself or of all
or a substantial part of its property, (ii) make a general assignment for the benefit of its
creditors, (iii) commence a voluntary case under the bankruptcy law (as now or hereafter in
effect) of any relevant jurisdiction, (iv) file a petition seeking reorganization,
arrangement, protection or relief in a proceeding under any other law relating to
bankruptcy, insolvency, reorganization, arrangement, winding-up, or composition or
readjustment of debts (as now or hereafter in effect) in any relevant jurisdiction, (v) fail
to controvert in a timely and appropriate manner, or file an answer admitting the material
allegations of, or otherwise acquiesce in writing to, any petition filed against it in an
involuntary case under the bankruptcy law (as now or hereafter in effect) of any relevant
jurisdiction, (vi) cease to carry on business, or (vii) take
any corporate action for the purpose of effecting any of the foregoing;

     (g) A proceeding or case shall be commenced against Borrower or Guarantor, without the
application or consent of the Borrower or Guarantor, as the case may be, in any court of
competent jurisdiction, seeking (i) its liquidation, reorganization, arrangement,
dissolution or winding-up, or the composition or readjustment of its debts, (ii) the
appointment of a trustee, receiver, administrator, administrative receiver, custodian,
liquidator or the like of either of the Borrower or Guarantor or of all or any substantial
part of its assets, or (iii) similar relief in respect of either of the Borrower or
Guarantor under any law relating to bankruptcy, insolvency, reorganization, arrangement,
winding-up, or composition or adjustment of debts and such proceeding or case shall continue
undismissed, or an order, judgment or decree approving or ordering any of the foregoing
shall be entered and continue unstayed and in effect for a period of sixty (60) days or
more; or an order for relief against either of the Borrower or Guarantor shall be entered in
an involuntary case under the bankruptcy laws of the relevant jurisdiction;

     (h) The Borrower shall cease to be a certified air carrier;

     (i) Final, binding and non-appealable judgment(s) for the payment of money in the
aggregate in excess of $15,000,000.00 shall be rendered against the Borrower or Guarantor
and the same shall remain undischarged for a period of more than fifteen (15) calendar days
unless: (i) execution of such judgment shall effectively be stayed, (ii) adequate bonding
fully covering such judgment shall exist or (iii) adequate insurance covering such judgments
shall be in place (evidence of which shall be delivered to the Facility Agent promptly upon
its request) and the related insurers have acknowledged their liability in respect thereof.

     16.2 Exercise of Remedies.

          16.2.1 In the case of any Event of Default which is continuing, in addition to all other
rights and remedies otherwise vested in, or available to, any of the Finance Parties under the
Security Documents or otherwise:

     (a) the Security Trustee, if so instructed by the Controlling Lenders, shall by notice
to the Borrower (unless such notice is prohibited by applicable law), declare the

56

 

aggregate
principal amount then outstanding of, and the accrued interest on, any or all of the Loans,
any Break Amount, accrued commitment fees and any or all other amounts owing to the Finance
Parties, to be forthwith due and payable, whereupon such amounts shall be immediately due
and payable without presentment, demand (except as aforesaid), protest or other formalities
of any kind, all of which are hereby expressly waived by the Borrower; and

     (b) the Facility Agent may, and if so instructed by the Controlling Lenders, shall, by
notice to the Borrower (unless such notice is prohibited by applicable law), cancel the
Total Commitments whereupon they shall immediately be cancelled.

          16.2.2 In the case of the occurrence of an Event of Default referred to in clause (f) or (g)
of Section 16.1, in addition to all other rights and remedies otherwise vested in, or available to,
any of the Finance Parties under the Security Documents or otherwise, the Total Commitments shall
automatically be cancelled and the Loans, together with accrued interest, any Break Amount, accrued
commitment fees and all other amounts owing to the Finance Parties under the Loan Documents shall
automatically be immediately due and payable without presentment, demand, protest or other
formalities of any kind, all of which are hereby expressly waived by the Borrower (unless,
subsequent to such automatic acceleration, such automatic acceleration is waived by the Controlling
Lenders).

          16.2.3 For the avoidance of doubt, notwithstanding the fact that the Loans have been divided
into Tranches or anything else to the contrary in any Loan Document, (i) any Event of Default in
respect of any one or more Loans relating to any one or more Aircraft shall constitute an Event of
Default, as applicable, in respect of all the Loans made hereunder and (ii) the entirety of the
Collateral shall secure all of the Secured Obligations and the Finance Parties shall be entitled to
apply the proceeds realized from the disposition of any item of Collateral to any or all of the
Loans without regard to whether any such Loan relates to any particular Collateral.

ARTICLE XVII

THE SECURITY TRUSTEE

     17.1 [Omitted]

     17.2 Acceptance of Appointment. Each of the Lenders and the Facility Agent hereby
appoints Bank of Utah to act as Security Trustee hereunder and Bank of Utah hereby accepts such
appointment. The Security Trustee hereby covenants and agrees to perform and observe all of its
covenants and undertakings set forth in this Agreement and in the Security Documents, which shall
govern the duties and responsibilities of the Security Trustee to the Finance Parties.

     17.3 Duties and Responsibilities of the Security Trustee to the Finance
Parties.

     17.3.1 In the event the Security Trustee shall have knowledge of an Event of Default (which
shall not have been cured), the Security Trustee shall give prompt written notice of such Event of
Default to the Facility Agent. Subject to the provisions of Section 17.3.3(v), the Security
Trustee shall take such action with respect to any Event of Default as the Security

57

 

Trustee shall
be instructed in writing by the Controlling Lenders. In the absence of actual knowledge of an
officer in the “Corporate Trust Department” or its equivalent of the Security Trustee, the Security
Trustee shall not be deemed to have knowledge of an Event Default unless notified in writing of
such Event of Default by the Facility Agent.

          17.3.2 Subject to the terms of Sections 17.3.1 and 17.3.3, with respect to the Collateral and
each Operative Document, upon the written instructions at any time and from time
to time of the Controlling Lenders, the Security Trustee shall take such of the following
actions as may be specified in such instructions: (i) give such notice or direction or exercise
such right, remedy or power hereunder or under the Operative Documents as shall be specified in
such instructions; (ii) approve as satisfactory to the Security Trustee all matters expressly
required by the terms hereof or thereof to be satisfactory to the Security Trustee, it being
understood that without the written instructions of the Controlling Lenders the Security Trustee
shall not approve any such matter as satisfactory to the Security Trustee; and (iii) execute such
documents as may be required under this Agreement or any other Operative Document as may be
specified from time to time in the written instructions of the Controlling Lenders.

          17.3.3 No provision of this Agreement shall be construed to relieve the Security Trustee from
liability for the Security Trustee’s own gross negligence or its own willful misconduct, or its
failure to use ordinary care in receiving, handling or disbursing funds except that:

          (i) the duties and obligations of the Security Trustee shall be determined solely by
the express provisions of this Agreement, and the Security Trustee shall not be liable
except for the performance of such duties and obligations as are specifically set forth in
this Agreement, and no implied covenants or obligations shall be read into this Agreement
against the Security Trustee;

          (ii) in the exercise of good faith, the Security Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Security Trustee and conforming to the
requirements of this Agreement; but in the case of any such certificates or opinions which
by any provision hereof are specifically required to be furnished to the Security Trustee,
the Security Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Agreement or the other Operative Documents;

          (iii) the Security Trustee shall not be liable for any error of judgment made in good
faith by a responsible officer of it, unless it shall be proved that the Security Trustee
was grossly negligent in ascertaining the pertinent facts;

          (iv) the Security Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction in writing of the
Controlling Lenders, relating to the time, method and place of conducting any proceeding for
any remedy available to the Security Trustee, or exercising any right or power conferred
upon the Security Trustee under this Agreement, and shall not be

58

 

obligated to perform any discretionary act under this Agreement without the instructions in writing of the
Controlling Lenders;

          (v) the Security Trustee shall not be under any obligation to exercise any rights or
powers or take any other action upon the instructions of the Controlling Lenders (including,
without limitation, the insuring, taking care of or taking possession of the Aircraft or any
Engine), and no provision of this Agreement shall require the Security Trustee to expend or
risk its own funds or otherwise incur any financial liability, unless
and until the Security Trustee shall have been fully indemnified by any person
reasonably acceptable to the Security Trustee against all liability and expense in
connection with the exercise of such right or power or the taking of such other action;

          (vi) the Security Trustee shall have a claim and lien upon the Collateral prior to the
other Finance Parties for any costs or expenses incurred by the Security Trustee acting in
accordance with written instructions from the Controlling Lenders and for which the Security
Trustee shall not have been reimbursed; and

          (vii) promptly upon receipt by the Security Trustee from the Borrower of the financial
statements, reports and other documents to be furnished by the Borrower pursuant to this
Agreement or pursuant to the other Loan Documents, if any, and of all other notices and
documents to be delivered by the Borrower to the Security Trustee pursuant to the other Loan
Documents, the Security Trustee shall furnish copies thereof to the Facility Agent, unless
such notices and documents have previously been so provided.

     17.4 Certain Rights of the Security Trustee. Except as otherwise provided above:

          17.4.1 the Security Trustee may rely, and shall be protected in acting or refraining from
acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
consent, order, trust certificate, guaranty or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

          17.4.2 whenever in the administration of this Agreement the Security Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Security Trustee (unless other evidence be herein specifically prescribed) may, in
the exercise of good faith on its part, rely on a certificate of a responsible officer of any
person;

          17.4.3 the Security Trustee may consult with counsel, and the written advice of such counsel
shall be full and complete authorization and protection in respect of any action taken or suffered
by it hereunder in good faith and in reliance thereon; and

          17.4.4 the Security Trustee shall not be liable for any action taken by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights or powers conferred
upon it by this Agreement.

     17.5 Application of Debt Service and Other Payment. To the extent received and
subject to Section 17.6 (Funds May Be Held by Security Trustee), the Security Trustee covenants

59

 

and
agrees to apply all payments received by it under this Agreement and the other Operative Documents
when and as the same shall be received:

     (a) if no Event of Default shall have occurred and be continuing, in satisfaction of
the obligations under the Loan Documents in respect of which such
payments were made and if such amount is insufficient to satisfy such obligations, in
the order of priorities specified in Section 19.5 (Partial Payments) of this Agreement; and

     (b) during the continuation of an Event of Default, in the order of priorities
specified in Section 19.6 (Application of Security Proceeds) of this Agreement.

     17.6 Funds May Be Held by Security Trustee. Any monies or proceeds from any
Collateral at any time paid to or property held by the Security Trustee as part of the Collateral
Trust, until paid out by the Security Trustee as herein provided, shall be invested in Permitted
Investments in accordance with written instructions of the Borrower or (if an Event of Default
shall have occurred and be continuing) the Controlling Lenders, and the Security Trustee shall be
under no liability for interest upon any such money so invested except as otherwise agreed with the
Borrower. The Borrower is solely responsible for the payment of any Taxes incurred in respect of
such Permitted Investments. Any income realized as a result of any such Permitted Investment
described above, net of the Security Trustee’s reasonable fees and expenses in making such
investment, shall be held and applied by the Security Trustee in the same manner as the principal
amount of such investment is to be applied and any losses, net of earnings and such reasonable fees
and expenses, shall be charged against the principal amount invested. The Security Trustee shall
not be liable for any loss resulting from any investment made by it or any investment sold by it
under this Agreement in accordance with instructions from the Borrower or the Controlling Lenders,
as the case may be, other than by reason of its willful misconduct or gross negligence, and any
such investment may be sold (without regard to its maturity) by the Security Trustee without
instructions whenever the Security Trustee reasonably believes such sale is necessary to make a
distribution required by this Agreement.

     17.7 Security Trustee Not Liable for Delivery Delays or Defects in the Aircraft or Title
or any Operative Document; May Perform Duties By other Finance Parties; Reimbursement of Expenses;
Holding of the Operative Documents; Monies Held in Trust.

          17.7.1 Except as otherwise provided in Section 17.3 (Duties and Responsibilities of the
Security Trustee) above, the Security Trustee shall not be liable to any person for any delay in
the delivery of the Aircraft, or for any default on the part of the Aircraft Manufacturer or the
Borrower, or for any defect in the Aircraft or in the title thereto or any Operative Document, nor
shall anything herein be construed as a warranty on the part of the Security Trustee in respect
thereof or as a representation on the part of the Security Trustee in respect of the value thereof,
or in respect of the title thereto or adequacy thereof, except to the extent provided in
Section 17.7.2.

          17.7.2 Except as otherwise provided in Section 17.3 (Duties and Responsibilities of the
Security Trustee) above, the Security Trustee may perform its powers and duties hereunder by or
through such attorneys, agents and servants as it shall appoint, and shall be answerable for only
its own acts, gross negligence and willful misconduct and not for the

60

 

default or misconduct of any
attorney, agent or servant appointed by it with due care. The
Security Trustee shall not be responsible in any way for the recitals herein contained or for
the execution or validity of this Agreement or any other Operative Document, except that the
Security Trustee in its individual capacity will be responsible and liable for the truth and
accuracy of the Security Trustee’s representations and warranties contained in Article IX.

          17.7.3 The Security Trustee shall be entitled to receive payment of its reasonable expenses
and disbursements hereunder, including its expenses and disbursements in connection with the
enforcement of its rights as Security Trustee for the relevant Collateral in enforcing remedies
hereunder, under the Agreement or under the other Loan Documents, or in collecting upon,
maintaining, refurbishing or preparing for sale any portion of the Collateral, and to receive
compensation for all services rendered by it in performing its duties in accordance with the terms
of this Agreement. All such fees, expenses and disbursements shall be paid by the Borrower in
accordance with the Security Trustee Fee Letter.

          17.7.4 Any monies or proceeds from any Collateral at any time held by the Security Trustee
hereunder or any other Loan Document shall, until paid out by the Security Trustee as herein
provided, be held by it in trust as herein provided for the benefit of the Finance Parties.

     17.8 Persons Eligible for Appointment as Security Trustee. There shall at all times
be a Security Trustee hereunder, which shall be a bank or corporation having (excepting the initial
Security Trustee) a combined capital and surplus of at least five hundred million dollars
($500,000,000.00), and which is authorized under such laws to exercise corporate trust powers and
is subject to supervision or examination by federal or state authority. If such bank or
corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the purposes of this
Section 17.8, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. In
case at any time the Security Trustee shall cease to be eligible in accordance with the provisions
of this Section 17.8, the Security Trustee shall resign immediately in the manner and with the
effect specified in Section 17.9 (Resignation and Removal; Appointment of Successor Security
Trustee) below.

     17.9 Resignation and Removal; Appointment of Successor Security Trustee.

          17.9.1 The Security Trustee may at any time resign by giving written notice of resignation to
the Facility Agent (who shall promptly notify the Lenders) and the Borrower. Upon receiving such
written notice of resignation and evidence satisfactory to it of such mailing, the Facility Agent
(acting upon the instruction of the Controlling Lenders) shall promptly appoint a successor agent,
by written instrument, in duplicate, executed by an authorized officer or director of the Facility
Agent, which successor shall be reasonably acceptable to the Borrower so long as no Default or
Event of Default shall have occurred and be continuing, in which case, one copy of which instrument
shall be delivered to the Security Trustee so resigning, one copy to the successor agent and one
copy to each of the Finance Parties. If no successor agent shall have
been so appointed and have accepted appointment within thirty (30) days after the giving of
such notice of resignation, the resigning agent may petition any court of competent jurisdiction
for the

61

 

appointment of a successor agent, or the Finance Parties may petition any such court for
the appointment of a successor agent. Such court may thereupon, after such notice, if any, as it
may deem proper, prescribe and appoint a successor agent reasonably acceptable to Facility Agent.

          17.9.2 With the consent of the Borrower so long as no Default or Event of Default shall have
occurred and be continuing (such consent not to be unreasonably withheld or delayed), the
Controlling Lenders may, by notice to the Security Trustee, with or without cause, require it to
resign in accordance with Section 17.9.1. In this event, the Security Trustee shall resign in
accordance with Section 17.9.1.

          17.9.3 Any resignation or removal of the Security Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 17.9 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 17.10 (Acceptance of
Appointment by Successor Security Trustee) below.

     17.10 Acceptance of Appointment by Successor Security Trustee. Any successor trustee
appointed as provided in Section 17.9 (Resignation and Removal; Appointment of Successor Security
Trustee) above shall execute, acknowledge and deliver to the relevant beneficiaries, and to its
predecessor agent an instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the title, rights, powers, duties
and obligations of its predecessor hereunder and under the Operative Documents to which its
predecessor was a party, with like effect as if originally named as the “Security Trustee” herein
and therein, and every provision hereof or thereof applicable to the retiring trustee shall apply
to such successor trustee with like effect as if such successor trustee had been originally named
herein and therein in the place and stead of the Security Trustee; but nevertheless, on the written
request of a Finance Party, or of the successor trustee, upon payment of its charges then unpaid,
the trustee ceasing to act shall transfer and deliver to such successor all monies, if any, the
Aircraft, the Collateral, the Operative Documents and other property held by the trustee so ceasing
to act, shall execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act, and shall execute and deliver such instruments
of transfer as may be reasonably requested by such successor trustee or required by any applicable
law. Upon request of any such successor trustee, the relevant beneficiary shall execute any and
all instruments in writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers and recognizing the transfer of title as aforesaid, and shall do
and perform any and all acts necessary to establish and maintain the title and rights of the
successor trustee in and to the Aircraft, the Collateral, the Operative Documents and other
property in the Collateral. Any trustee ceasing to act shall, nevertheless, retain a Security
Interest upon all property or funds held or collected by such trustee to secure any amounts then
due it pursuant to the provisions of Section 17.7 (Security Trustee Not Liable for Delivery Delays
or Defects in the Aircraft or Title or any Operative Document; May Perform Duties by other Finance
Parties; Reimbursement of Expenses; Holding of the Operative Documents; Monies held in Trust). No
successor trustee shall accept appointment as provided in this Section 17.10 (Acceptance of
Appointment by
Successor Security Trustee) unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 17.8 (Persons Eligible for Appointment as Security
Trustee). Upon acceptance of appointment by a successor trustee as provided in this

62

 

Section 17.10
such successor trustee shall mail notice of the succession of such trustee hereunder to the Finance
Parties .

     17.11 Merger or Consolidation of Security Trustee. Any corporation into which the
Security Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger or conversion or consolidation to which the Security Trustee
shall be a party, or any corporation succeeding to the corporate trust business of the Security
Trustee, shall be the successor of the Security Trustee hereunder, provided such corporation shall
be eligible under the provisions of Section 17.8 (Persons Eligible for Appointment as Security
Trustee), without the execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding, and in the event that any costs or
expenses (including legal fees) arise in connection therewith, they shall be for the account of the
Security Trustee.

     17.12 Appointment of Additional and Separate Security Trustees. If at any time or
times the Security Trustee shall deem it necessary or prudent in order to conform to any law of any
jurisdiction in which the Aircraft, the Collateral or any Loan Document shall be situated or in
which any of the same is expected to be enforced, or the Security Trustee shall be advised by
counsel that it is so necessary or prudent in the interest of the beneficiaries or the
beneficiaries shall in writing so request the Security Trustee, the Security Trustee shall execute
and deliver an agreement supplemental hereto and all other instruments and agreements necessary or
proper to constitute another bank or trust company or one or more persons approved by the Security
Trustee and the Facility Agent either to act as additional trustee or trustees of the Aircraft, the
Collateral or the Loan Documents, jointly with the Security Trustee originally named herein or any
successor or successors, or to act as separate agent or agents of the Aircraft, the Collateral or
the Loan Documents, in any such case with such powers as may be provided in such supplemental
agreement, and to vest in such bank, trust company or person as such additional agent or separate
agent, as the case may be, any property, title, right or power of the Security Trustee deemed
necessary or advisable, subject to the remaining provisions of this sub-Section, provided such
person shall be eligible under the provisions of Section 17.8 (Persons Eligible for Appointment as
Security Trustee). The Security Trustee may execute, deliver and perform any deed, conveyance,
assignment or other instrument in writing as may be required by any additional agent or separate
agent for more fully and certainly vesting in and confirming to it or him any property, title,
right or powers which by the terms of such supplemental agreement are expressed to be conveyed or
conferred to or upon such additional agent or separate agent. Every additional agent and separate
agent hereunder shall, to the extent permitted by law, be appointed and act as and be such, and the
Security Trustee and its successors as the Security Trustee shall act as and be such, subject to
the following provisions and conditions:

          17.12.1 all powers, duties, obligations and rights conferred upon the Security Trustee in
respect of the receipt, custody and payment of monies shall be exercised solely by the Security
Trustee or its successor as Security Trustee;

          17.12.2 all other rights, powers, duties and obligations conferred or imposed upon the
Security Trustee shall be conferred or imposed upon and exercised or performed by the Security
Trustee or its successor as Security Trustee and such additional agent or agents and separate agent
or agents jointly, except to the extent that under any law of any jurisdiction in

63

 

which any
particular act or acts are to be performed the Security Trustee or its successor as Security
Trustee shall be incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to the Aircraft in any such
jurisdiction) shall be exercised and performed by such additional agent or agents or separate agent
or agents;

          17.12.3 no power hereby given to, or which it is hereby provided may be exercised by, any such
additional agent or separate agent shall be exercised hereunder by such additional agent or
separate agent except jointly with, or with the consent of, the Security Trustee or its successor
as Security Trustee, anything herein contained to the contrary notwithstanding; and

          17.12.4 no agent hereunder shall be personally liable by reason of any act or omission of any
other agent hereunder.

If at any time the Security Trustee shall deem it no longer necessary or prudent in order to
conform to any such law or shall be advised by such counsel that it is no longer so necessary or
prudent in the interest of the Finance Parties then the Facility Agent shall in writing so request
the Security Trustee, and the Security Trustee shall execute and deliver all instruments and
agreements necessary or proper to remove any additional agent or separate agent. Any additional
agent or separate agent may at any time by an instrument in writing constitute the Security Trustee
his agent or attorney-in-fact, with full power and authority, to the extent which may be authorized
by law, to do all acts and things and exercise all discretion which he is authorized or permitted
to do or exercise, for and in his behalf and in his name. In case any such additional agent or
separate agent shall die, become incapable of acting, resign or be removed, all the assets,
property, rights, powers, trusts, duties and obligations of such additional agent or separate
agent, as the case may be, so far as permitted by law, shall vest in and be exercised by the
Security Trustee, without the appointment of a new successor to such additional agent or separate
agent, unless and until a successor is appointed in the manner hereinbefore provided. Any request,
approval or consent in writing by the Security Trustee to any additional agent or separate agent
shall be sufficient warrant to such additional agent or separate agent, as the case may be, to take
such action as may be so requested, approved or consented to. Each additional agent and separate
agent appointed pursuant to this Section 17.12 (Appointment of Additional and Separate Security
Trustees) shall be subject to, and shall have the benefit of, Section 17.3 (Duties and
Responsibilities of the Security Trustee to the Finance Parties) and Section 17.4 (Certain Rights
of the Security Trustee).

     17.13
Dealing with Parties. The Security Trustee may accept deposits from, lend money to and generally engage in any
kind of banking activities or other business with any party to the Operative Documents and any
Affiliate of such party.

64

 

ARTICLE XVIII

THE FACILITY AGENT

     18.1 Appointment of the Facility Agent.

          18.1.1 Each of the Lenders appoints Norddeutsche Landesbank Girozentrale to act as its agent
under and in connection with the Loan Documents, in which capacity it is authorized to exercise the
rights, powers, authorities and discretions specifically given to the Facility Agent under or in
connection with the Loan Documents together with any other incidental rights, powers, authorities
and discretions.

          18.1.2 Norddeutsche Landesbank Girozentrale hereby accepts such appointment.

     18.2 Duties of the Facility Agent.

          18.2.1 The Facility Agent shall promptly forward to a Party the original or a copy of any
document which is delivered to the Facility Agent for that Party by any other Party.

          18.2.2 The Facility Agent shall promptly forward to each of the Lenders a copy of any document
or notice which is delivered to the Facility Agent by the Borrower, the Guarantor or the Security
Trustee.

          18.2.3 If the Facility Agent receives notice from a Party referring to this Agreement,
describing a Default and stating that the circumstance described is a Default, it shall promptly
notify the Lenders.

          18.2.4 The Facility Agent shall promptly notify the Lenders of any Default (in relation to
which it has actual knowledge) arising under Section 16.1(a) (Non-payment).

          18.2.5 The Facility Agent’s duties under the Loan Documents are solely mechanical and
administrative in nature.

     18.3 No Fiduciary Duties.

          18.3.1 Nothing in this Agreement constitutes the Facility Agent as a trustee or fiduciary of
any other person.

          18.3.2 The Facility Agent shall not be bound to account to any Lender for any sum or the
profit element of any sum received by it for its own account.

     18.4 Business with the Borrower. The Facility Agent may accept deposits from, lend
money to and generally engage in any kind of banking or other business with the Borrower.

     18.5 Rights and Discretions of the Facility Agent.

          18.5.1 The Facility Agent may rely on:

               (i) any representation, notice or document reasonably believed by it to be genuine,
correct and appropriately authorized; and

65

 

               (ii) any statement made by a director, authorized signatory or employee of any person
regarding any matters which may reasonably be assumed to be within his knowledge or within
his power to verify.

          18.5.2 The Facility Agent may assume (unless it has received notice to the contrary in its
capacity as agent for the Lenders) that:

               (i) no Default has occurred (unless it has actual knowledge of a Default arising under
Section 16.1(a) (Non-payment)); and

               (ii) any right, power, authority or discretion vested in any Party or the Controlling
Lenders has not been exercised.

          18.5.3 The Facility Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.

          18.5.4 The Facility Agent may act in relation to the Operative Documents through its personnel
and agents.

     18.6 Controlling Lenders’ Instructions.

          18.6.1 Unless a contrary indication appears in a Loan Document, the Facility Agent shall
(a) act in accordance with any instructions given to it by the Controlling Lenders (or, if so
instructed by the Controlling Lenders, refrain from acting or exercising any right, power,
authority or discretion vested in it as Facility Agent) and (b) not be liable for any act (or
omission) if it acts (or refrains from taking any action) in accordance with such an instruction of
the Controlling Lenders.

          18.6.2 Unless a contrary indication appears in a Loan Document, any instructions given by the
Controlling Lenders will be binding on all the Lenders.

          18.6.3 The Facility Agent may refrain from acting in accordance with the instructions of the
Controlling Lenders (or, if appropriate, the Lenders) until it has received such security as it may
require for any cost, loss or liability (together with any associated VAT) which it may incur in
complying with the instructions.

          18.6.4 In the absence of instructions from the Controlling Lenders, (or, if appropriate, the
Lenders) the Facility Agent may act (or refrain from taking action) as it considers to be in the
best interest of the Lenders.

          18.6.5 The Facility Agent is not authorized to act on behalf of a Lender (without first
obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Operative
Document.

     18.7 Responsibility for Documentation. The Facility Agent is not responsible for the
legality, validity, effectiveness, adequacy or enforceability of any Operative Document or any
other agreement, arrangement or document entered into, made or executed in anticipation of or in
connection with any Operative Document.

66

 

     18.8 Exclusion of Liability.

          18.8.1 Without limiting Section 18.8.2 below, the Facility Agent will not be liable for any
action taken by it under or in connection with any Operative Document, unless directly caused by
its gross negligence or willful misconduct.

          18.8.2 No Party may take any proceedings against any officer, employee or agent of the
Facility Agent in respect of any claim it might have against the Facility Agent or in respect of
any act or omission of any kind by that officer, employee or agent in relation to any Operative
Document and any officer, employee or agent of the Facility Agent may rely on this sub-Section. Any
third party referred to in this Section 18.8.2 may enjoy the benefit of and enforce the terms of
this Section 18.8.2.

          18.8.3 The Facility Agent will not be liable for any delay (or any related consequences) in
crediting an account with an amount required under the Loan Documents to be paid by the Facility
Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to
comply with the regulations or operating procedures of any recognized clearing or settlement system
used by the Facility Agent for that purpose.

     18.9 Lenders’ Indemnity to the Facility Agent. Each Lender shall (in proportion to
its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the
Total Commitments immediately prior to their reduction to zero) indemnify the Facility Agent, on an
After-Tax Basis, within three (3) Business Days of demand, against any cost, loss or liability
incurred by the Facility Agent (otherwise than by reason of the Facility Agent’s gross negligence
or willful misconduct) in acting as Facility Agent under the Loan Documents (unless the Facility
Agent has been reimbursed by the Borrower pursuant to a Loan Document).

     18.10 Resignation of the Facility Agent.

          18.10.1 The Facility Agent may resign and appoint one of its Affiliates as successor by giving
notice to the other Finance Parties and the Borrower.

          18.10.2 Alternatively the Facility Agent may resign with the consent of the Borrower (such
consent not to be unreasonably withheld or delayed and provided that such consent shall not be
required if there shall have occurred and be continuing an Event of Default) by giving notice to
the Lenders, in which case the Controlling Lenders (after consultation with the Borrower) may
appoint a successor Facility Agent.

          18.10.3 If the Controlling Lenders have not appointed a successor Facility Agent in accordance
with Section 18.10.2 within thirty (30) days after notice of resignation was given, the Facility
Agent (after consultation with the Borrower) may appoint a successor Facility Agent.

          18.10.4 The retiring Facility Agent shall, at its own cost, make available to the successor
Facility Agent such documents and records and provide such assistance as the successor Facility
Agent may reasonably request for the purposes of performing its functions as Facility Agent under
the Loan Documents.

67

 

          18.10.5 The Facility Agent’s resignation notice shall only take effect upon the appointment of
a successor.

          18.10.6 Upon the appointment of a successor, the retiring Facility Agent shall be discharged
from any further obligation in respect of the Operative Documents but shall remain entitled to the
benefit of this Article XVIII. Its successor and each of the other Parties shall have the same
rights and obligations amongst themselves as they would have had if such successor had been an
original Party.

          18.10.7 With (prior to the occurrence of an Event of Default that is continuing) the consent
of the Borrower (such consent not to be unreasonably withheld or delayed), the Controlling Lenders
may, by notice to the Facility Agent, require it to resign in accordance with Section 18.10.2. In
this event, the Facility Agent shall resign in accordance with Section 18.10.2.

     18.11 [Omitted]

     18.12 Relationship with the Lenders. The Facility Agent may treat each Lender as a
Lender, entitled to payments under this Agreement and acting through its Facility Office unless it
has received not less than five (5) Business Days prior notice from that Lender to the contrary in
accordance with the terms of this Agreement.

     18.13
Credit Appraisal by the Lenders. Without affecting the responsibility of the Borrower for information supplied by it or on
its behalf in connection with any Operative Document and the transactions contemplated thereby,
each Lender confirms to the Facility Agent that it has been, and will continue to be, solely
responsible for making its own independent appraisal and investigation of all risks arising under
or in connection with any Operative Document including but not limited to:

          18.13.1 the financial condition, status and nature of the Borrower and the Guarantor;

          18.13.2 the legality, validity, effectiveness, adequacy or enforceability of any Operative
Document and any other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Operative Document;

          18.13.3 whether that Lender has recourse, and the nature and extent of that recourse, against
any Party or any of its respective assets under or in connection with any Operative Document, the
transactions contemplated by the Operative Documents or any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in connection with any
Operative Document; and

          18.13.4 the adequacy, accuracy and/or completeness of any information provided by any Party or
by any other person under or in connection with any Operative Document, the transactions
contemplated by the Operative Documents or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any Operative Document.

68

 

ARTICLE XIX

PAYMENT MECHANICS

     19.1 Payments to the Security Trustee.

          19.1.1 On each date on which a Lender is required to make a payment under a Loan Document,
that Lender shall make the same available to the Security Trustee for value on the due date at the
time and in such funds specified by the Security Trustee as being customary at the time for
settlement of transactions in the relevant currency in the place of payment.

          19.1.2 Payments by Lenders shall be made to such account in the principal financial centre of
the country of that currency with such bank as the Security Trustee specifies.

          19.1.3 The Borrower shall make all payments under this Agreement to the Finance Parties in
immediately available funds no later than 11:00 a.m. New York time on the date when due to the
following account of the Security Trustee:

Bank: Bank of Utah

Account Number:      01020296

ABA Number:           124300107

Ref:   Atlas Air Acct. No. 8000136

Attn:    Corporate Trust Services

or to such other account in New York as the Security Trustee may designate by not less than five
(5) Business Days’ prior written notice to the Borrower. Notwithstanding anything to the contrary
contained in any Loan Document, it is acknowledged by each Finance Party that payment to the
Security Trustee in accordance with the preceding requirements of this Section 19.1 of any sum due
by the Borrower to such Finance Party shall be deemed to constitute payment of the relevant sum by
the Borrower to such Finance Party and the Borrower shall not have any liability for any default or
delay on the part of the Security Trustee in paying the relevant sum to such Finance Party.

     19.2 Distributions by the Security Trustee. Each payment received by the Security
Trustee under the Loan Documents for another Party shall, subject to Section 19.3 and Section 19.4,
be made available by the Security Trustee, as soon as practicable after receipt thereof, to the
Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for
the account of its Facility Office), to the account of such Party set forth on Schedule 1A or
Schedule 1C or to such other account as such Party may notify to the Security Trustee by not less
than five (5) Business Days’ notice with a bank in the principal financial center of the country of
that currency.

     19.3 Distributions to the Borrower. The Security Trustee may (with the consent of the
Borrower or in accordance with its rights of set-off hereunder or under applicable law) apply any
amount received by it for the Borrower in or towards payment (on the date and in the currency and
funds of receipt) of any amount due from the Borrower under the Loan Documents or in or towards
purchase of any amount of any currency to be so applied.

69

 

     19.4 Clawback.

          19.4.1 Where a sum is to be paid to the Security Trustee under the Loan Documents for another
Party, the Security Trustee is not obliged to pay that sum to that other Party until it has been
able to establish to its satisfaction that it has actually received that sum.

          19.4.2 If the Security Trustee pays an amount to another Party and it proves to be the case
that the Security Trustee had not actually received that amount, then the Party to whom that amount
was paid by the Security Trustee shall on demand refund the same to the Security Trustee together
with interest on that amount from the date of payment to the date of receipt by the Security
Trustee, calculated by the Security Trustee to reflect its cost of funds, and upon receipt by the
Security Trustee such amount shall be deemed to never have been paid in the first place.

     19.5 Partial Payments.

          19.5.1 If the Security Trustee receives a payment prior to an Event of Default that is
insufficient to discharge all the amounts then due and payable by the Borrower under the
Loan Documents, the Security Trustee shall apply that payment towards the obligations of the
Borrower under the Loan Documents in the following order:

               (i) first, in or towards payment pro rata of any unpaid fees, costs and expenses of the
Facility Agent and the Security Trustee under the Loan Documents;

               (ii) second, in or towards payment pro rata of any accrued interest (including interest
on Unpaid Sums) and Break Amount, if any, due to the Lenders but unpaid under this
Agreement;

               (iii) third, in or towards payment pro rata of any principal due to the Lenders but
unpaid under this Agreement;

               (iv) fourth, in or towards payment pro rata of any other amounts due to the Lenders but
unpaid under the Loan Documents; and

               (v) fifth, at such time as no Event of Default is continuing or all the Secured
Obligations have been discharged in full, to the Borrower.

          19.5.2 The Security Trustee shall, if so directed by all of the Lenders, vary the order set
out in Sections 19.5.1(ii) to 19.5.1(v).

          19.5.3 Sections 19.5.1(ii) to 19.5.1(v) will override any inconsistent instructions made by
the Borrower.

     19.6 Application of Security Proceeds.

          19.6.1 All amounts (i) on deposit with the Security Trustee pursuant to Section 17.6 or
(ii) constituting Security Proceeds received by the Security Trustee in each case

70

 

after the
occurrence of an Event of Default and the Loans have been accelerated shall be paid in accordance
with the following order of priorities:

               (i) first, in or towards payment or reimbursement of all fees, costs and expenses paid
by or on behalf of each of the Security Trustee, the Controlling Lenders or the Facility
Agent in connection with its entering upon, taking possession of, holding, managing, selling
or otherwise disposing of the Collateral or any portion thereof and any and all Taxes,
assessments or other charges of any kind imposed on the Security Trustee in connection with
the Collateral in priority to the Security Interests of any Security Document that the
Security Trustee determines in good faith to pay or be paid pursuant to written instructions
from the Controlling Lenders, and any other amounts payable to the Security Trustee
hereunder or under any other Security Document in respect of any indemnities or other
obligations of the Borrower relating thereto;

               (ii) second, in or towards payment pro rata of any amounts due to the Lenders but
unpaid under the Operative Documents (other than as provided in clause ”third” or “fourth”
below);

               (iii) third, in or towards payment pro rata of any accrued interest (including interest
on Unpaid Sums) and Break Amount, if any, due to the Lenders but unpaid under this
Agreement;

               (iv) fourth, in or towards payment pro rata of any principal due to the Lenders but
unpaid under this Agreement; and

               (v) fifth, at such time as no Event of Default is continuing or all the Secured
Obligations have been discharged in full, to the Borrower.

          19.6.2 The Security Trustee shall, if so directed by all of the Lenders, vary the order set
out in Sections 19.6.1(ii) to 19.6.1(v).

          19.6.3 Sections 19.6.1(ii) to 19.6.1(v) will override any inconsistent instructions made by
the Borrower.

     19.7 Payments to Lenders. If a Lender (a “Recovering Lender”) receives or
recovers any amount from the Borrower other than in accordance with this Article XIX and applies
that amount to a payment due under the Operative Documents then:

          19.7.1 the Recovering Lender shall, within three (3) Business Days, notify details of the
receipt or recovery, to the Security Trustee;

          19.7.2 the Security Trustee shall determine whether the receipt or recovery is in excess of
the amount the Recovering Lender would have been paid had the receipt or recovery been received or
made by the Security Trustee and distributed in accordance with this Article XIX, without taking
account of any Tax which would be imposed on the Security Trustee in relation to the receipt,
recovery or distribution; and

71

 

          19.7.3 the Recovering Lender shall, within three Business Days of demand by the Security
Trustee, pay to the Security Trustee an amount (the “Sharing Payment”) equal to such
receipt or recovery less any amount which the Security Trustee determines may be retained by the
Recovering Lender as its share of any payment to be made, in accordance with Section 19.5 (Partial
Payments).

     19.8 Redistribution of Payments. The Security Trustee shall treat the Sharing Payment
as if it had been paid by the Borrower and distribute it between the Finance Parties (other than
the Recovering Lender) in accordance with Section 19.5 (Partial Payments).

     19.9 Recovering Lender’s Rights.

          19.9.1 On a distribution by the Security Trustee under Section 19.8 (Redistribution of
Payments), the Recovering Lender will be subrogated to the rights of the Finance Parties which have
shared in the redistribution.

          19.9.2 If and to the extent that the Recovering Lender is not able to rely on its rights under
Section 19.9.1, the Borrower shall be liable to the Recovering Lender for a debt equal to the
Sharing Payment which is immediately due and payable.

     19.10 Reversal of Redistribution. If any part of the Sharing Payment received or
recovered by a Recovering Lender becomes repayable and is repaid by that Recovering Lender, then:

          19.10.1 the Lenders which has received a share of the relevant Sharing Payment pursuant to
Section 19.8 (Redistribution of Payments) shall, upon request of the Security Trustee, pay to the
Security Trustee for account of that Recovering Lender an amount equal to its share of the Sharing
Payment (together with an amount as is necessary to reimburse that Recovering Lender for its
proportion of any interest on the Sharing Payment which that Recovering Lender is required to pay);
and

          19.10.2 that Recovering Lender’ rights of subrogation in respect of any reimbursement shall be
cancelled and the Borrower will be liable to the reimbursing Lenders for the amount so reimbursed.

     19.11 Exceptions.

          19.11.1 Sections 19.7 through 19.10 shall not apply to the extent that the Recovering Lender
would not, after making any payment pursuant to this Section, have a valid and enforceable claim
against the Borrower.

          19.11.2 A Recovering Lender is not obliged to share with any other Lenders any amount which
the Recovering Lender has received or recovered as a result of taking legal or arbitration
proceedings, if:

               (i) it notified the other Lenders of the legal or arbitration proceedings; and

72

 

               (ii) the other Lenders had an opportunity to participate in those legal or arbitration
proceedings but did not do so as soon as reasonably practicable having received notice or
did not take separate legal or arbitration proceedings.

     19.12 No Set Off by the Borrower. All payments to be made by the Borrower under the
Loan Documents shall be calculated and be made without (and free and clear of any deduction for)
set off or counterclaim.

     19.13 Business Days. Any payment which is due to be made on a day that is not a
Business Day shall be made on the next succeeding Business Day (unless such Business Day falls in
the next calendar month, in which case the payment shall be made on the immediately preceding
Business Day) and interest shall be adjusted accordingly.

     19.14 Currency of Account.

          19.14.1 Subject to Sections 19.14.2. and 19.14.3, the U.S. dollar is the currency of account
and payment for any sum due from the Borrower under any Loan Document.

          19.14.2 Each payment in respect of costs, expenses or Taxes shall be made in the currency in
which the costs, expenses or Taxes are incurred.

          19.14.3 Any amount expressed to be payable in a currency other than U.S. dollars shall be paid
in that other currency.

ARTICLE XX

THE FINANCE PARTIES; ASSIGNMENT BY LENDERS

     20.1 Conduct of Business by the Finance Parties. No provision of this Agreement or
any other Operative Document will:

          20.1.1 interfere with the right of any Finance Party to arrange its affairs (tax or otherwise)
in whatever manner it deems appropriate in its sole discretion;

          20.1.2 oblige any Finance Party to investigate or claim any credit, relief, remission or
repayment available to it or the extent, order and manner of any claim (except as may otherwise
expressly be set forth herein); or

          20.1.3 oblige any Finance Party to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.

     20.2 Assignments and Transfers by the Lenders. Subject to this Article XX, a Lender
party hereto (the “Existing Lender”) may transfer to other banks or financial institutions
all or any portion of its Loans and/or Commitments (any such transfer to be in an aggregate amount
not less than $10,000,000.00) with the prior written consent of the Borrower (not to be
unreasonably withheld or delayed); provided, that any such consent of Borrower shall not be
required if an Event of Default shall have occurred and be continuing. Existing Lender shall
provide to the Borrower at least five (5) Business Days prior notice of the proposed transferee

73

 

(the “New Lender”) and the amount of the Loan Facility proposed to be transferred, together
with evidence satisfactory to Borrower that the New Lender
is a Permitted Transferee and a duly completed Transfer Certificate. If the Borrower shall
not have responded to any request for its consent after expiry of such five (5) Business Day period
and compliance by Lender with the conditions set forth in the previous sentence, the Borrower shall
be deemed to have consented to such transfer. The costs of any such transfer (including any
reasonable legal fees of counsel to the Parties to the Loan Documents) shall be payable by the
Existing Lender (except in the case of an assignment or transfer that is effected at the request of
the Borrower or during the continuation of an Event of Default, in which case, the cost of such
assignment or transfer shall be payable by the Borrower), it being understood that in no event
shall Facility Agent or Security Trustee (except as set out in this Section 20.2) or the Borrower
(except as otherwise set out in this Section 20.2) bear any cost or expense or assume any
additional liability arising out of any transfer contemplated in this Section 20.2.

     20.3 Conditions of Assignment or Transfer.

          20.3.1 An assignment will only be effective on receipt by the Facility Agent of written
confirmation from the New Lender (in form and substance satisfactory to the Facility Agent and the
Borrower) that the New Lender will assume the same obligations to the other Finance Parties and the
Borrower as it would have been under if it was an Original Lender.

          20.3.2 An assignment will only be effective if the procedure set out in Section 20.5
(Procedure for transfer) is complied with.

          20.3.3 No Lender may transfer or assign by novation any of its rights or obligations under the
Loan Documents (it being agreed that any assignment shall nevertheless release the Existing Lender
of the Discharged Rights and Obligations, as set forth in Section 20.5 below).

          20.3.4 No Lender may transfer or assign any Loans or any interest therein if such transfer
contravenes the provisions of any law, governmental rule or regulation, including without
limitation the Securities Act, ERISA or the Code.

          20.3.5 In the event that (i) a Lender assigns or transfers any of its rights or obligations
under the Loan Documents (other than upon request by the Borrower or after the occurrence and
continuation of an Event of Default) or changes its Facility Office and (ii) as a result of
circumstances existing at the date the assignment, transfer or change occurs, the Borrower would be
obliged to make a payment to the New Lender or Lender acting through its new Facility Office under
Section 13 (Tax Indemnities) or Section 14 (Increased Costs), then the New Lender or Lender acting
through its new Facility Office shall only be entitled to receive payment under those Sections to
the same extent as the Existing Lender or, as the case may be, the relevant Lender, acting through
its previous Facility Office, would have if the assignment, transfer or change, as the case may be,
had not occurred.

     20.4 Limitation of Responsibility of Existing Lender.

          20.4.1 Unless expressly agreed to the contrary, an Existing Lender makes no representation or
warranty and assumes no responsibility to a New Lender, and any

74

 

representations or warranties
implied by law are hereby excluded, including but not limited to any representations or warranties
relating to:

               (i) the legality, validity, effectiveness, adequacy or enforceability of the Operative
Documents or any other documents;

               (ii) the financial condition of the Borrower or the Guarantor;

               (iii) the performance and observance by the Borrower or the Guarantor of its
obligations under the Operative Documents or any other documents; or

               (iv) the accuracy of any statements (whether written or oral) made in or in connection
with any Operative Document or any other document.

          20.4.2 Each New Lender confirms to the Existing Lender and the other Finance Parties that it
(i) has made (and shall continue to make) its own independent investigation and assessment of the
financial condition and affairs of the Borrower and its related entities in connection with its
participation in this Agreement and has not relied exclusively on any information provided to it by
the Existing Lender in connection with any Operative Document and (ii) will continue to make its
own independent appraisal of the creditworthiness of the Borrower and its related entities while
any amount is or may be outstanding under the Operative Documents or any Commitment is in force.

          20.4.3 Nothing in any Operative Document obliges an Existing Lender to indemnify a New Lender
in respect of any of the rights and obligations assigned or transferred under the Operative
Documents or to support any losses directly or indirectly incurred by the New Lender by reason of
the non performance by the Borrower of its obligations under the Operative Documents or otherwise.

     20.5 Procedure for Transfer.

          20.5.1 Subject to the conditions set out in Section 20.3 (Conditions of Assignments and
Transfers by the Lenders), a transfer is effected in accordance with Section 20.2 when the Facility
Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing
Lender and the New Lender. The Facility Agent shall, as soon as reasonably practicable after
receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the
terms of this Agreement and to be delivered in accordance with the terms of this Agreement, execute
that Transfer Certificate.

          20.5.2 On the Transfer Date:

               (i) the Borrower and the Existing Lender shall be released from further obligations
towards one another under the Loan Documents, and their respective
rights against one another shall be cancelled, in each case to the extent transferred
to the New Lender (being the “Discharged Rights and Obligations”);

               (ii) subject to Section 20.3.4 the Borrower and the New Lender shall assume obligations
towards one another and acquire rights against one another which

75

 

differ from the Discharged
Rights and Obligations only insofar as the Borrower and the New Lender have assumed and
acquired the same in place of the Borrower and the Existing Lender;

               (iii) the New Lender, the other Lenders and each of the other Finance Parties shall
acquire the same rights and assume the same obligations between themselves as they would
have acquired and assumed had the New Lender been a Lender with the rights and obligations
acquired or assumed by it as a result of the transfer and to that extent the Existing Lender
and the other Finance Parties shall each be released from further obligations to each other
under this Agreement; and

               (iv) the New Lender shall become a Party as a “Lender”.

          20.5.3 The Facility Agent shall, promptly following the Transfer Date, notify each of the
Lenders (other than the Existing Lender and the New Lender) and the Borrower of the identity of the
New Lender.

     20.6 Disclosure of Information. Any Lender may disclose to any other person:

          20.6.1 to (or through) whom that Lender assigns or transfers (or may potentially assign or
transfer) all or any of its rights and obligations under this Agreement and the other Loan
Documents;

          20.6.2 with (or through) whom that Lender enters into (or may potentially enter into) any
participation or derivative transaction in relation to, or any other transaction under which
payments are to be made by reference to, this Agreement or the Borrower; or

          20.6.3 to whom, and to the extent that, information is required to be disclosed by any
applicable law,

any information about the Borrower, the Guarantor and the Operative Documents as that Lender shall
consider appropriate if such receiving party shall have agreed to be bound by confidentiality
undertakings that are substantially the same as those to which the Lenders are bound hereunder and
under Consent and Agreement.

     20.7 Federal Reserve Pledge. Anything in this Section 20 to the contrary
notwithstanding, any Lender may at any time pledge or assign (by way of security) all or any
portion of its rights under this Agreement to secure obligations of such Lender to any person,
including to a Federal Reserve Bank; provided
that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     20.8 Participations. A Lender may sell or agree to sell to one or more other persons
(each, a “Participant”) a participation or sub-participation in all or any part of any
Commitment and/or the Loans; provided, that: (a) such Lender’s obligations under this
Agreement shall remain unchanged (including but not limited to its obligation to make Advances);
(b) such Lender shall remain solely responsible to the Borrower for the performance of such
obligations; and (c) Borrower, the Facility Agent and the Security Trustee shall continue to deal
solely with

76

 

such Lender in connection with such Lender’s rights and obligations under the Operative
Documents. The grant by a Lender of such a participation or sub-participation shall not preclude
any Participant from granting a sub-participation to one or more other persons but in each case,
the granting of such participation or sub-participation shall not affect or increase the right of
such Lender to any compensation pursuant to this Agreement, any such amount of compensation or
obligation to be determined without respect to any participation or sub-participation which has
been so granted; provided, however, that if the Borrower would be obliged to make a
payment for the account of a Participant under Section 13 (Tax Indemnities) or Section 14
(Increased Costs), then the Participant shall only be entitled to receive payment under those
Sections to the same extent as the Lender would have if the participation or sub-participation, as
the case may be, had not occurred. Any agreement or instrument pursuant to which a participation
or sub-participation hereunder is granted shall (i) provide that, as between the Borrower and the
Lender, such Lender retains the sole and exclusive right to enforce the Operative Documents and to
approve any amendment, modification or waiver of any provision of the Operative Documents in
accordance their respective terms and (ii) contain confidentiality provisions equivalent in
substantially all respects to those contained herein. The Lenders hereby agree to enforce such
confidentiality provisions for the benefit of the Borrower.

ARTICLE XXI

NOTICES

     21.1 Communications in Writing. Any communication to be made under or in connection
with the Loan Documents shall be made in writing and, unless otherwise stated, may be made by fax
or letter.

     21.2 Addresses. Subject always to Section 21.3, the address and fax number (and the
department or officer, if any, for whose attention the communication is to be made) of each Party
for any communication or document to be made or delivered under or in connection with the Loan
Documents is:

          21.2.1 in the case of the Borrower:

Atlas Air, Inc.

200 Westchester Avenue

Purchase, NY 10577

Fax: (914) 701-8415

Attention: William C. Bradley, Vice President and Treasurer

          21.2.2 in the case of the Facility Agent:

Norddeutsche Landesbank Girozentrale

Ship and Aircraft Finance Department

Friedrichswall 10

30159 Hannover

Germany

Attention: Aviation Group (2214/2009)

77

 

          21.2.3 in the case of the Security Trustee:

Bank of Utah

200 E. South Temple, Suite 210

Salt Lake City, UT 84111

Fax: (801) 746-3519

Attention: Corporate Trust Services

          21.2.4 in the case of the Lenders, that set forth in Schedule 1A, as applicable,

or any substitute address, fax number or department or officer as the Party may notify to the
Facility Agent (or the Facility Agent may notify to the other Parties, if a change is made by the
Facility Agent) by not less than five (5) Business Days’ notice.

     21.3 Delivery.

          21.3.1 Any communication or document made or delivered by one person to another under or in
connection with the Loan Documents will only be effective:

               (i) if by way of fax, when received in legible form;

               (ii) if by way of letter, when it has been left at the relevant address or ten (10)
Business Days after being deposited in the post postage prepaid in an envelope addressed to
it at that address; and

               (iii) if a particular department or officer is specified as part of its address details
provided under Section 21.2 (Addresses), if addressed to that department or officer.

          21.3.2 All notices from the Borrower shall be sent by the Borrower or, at the direction of the
Borrower, through the Facility Agent and all notices to the Borrower from a Finance Party shall be
sent through the Facility Agent.

     21.4 Notification of Address and Fax Number. Promptly upon receipt of notification of
an address and fax number or change of address or fax number pursuant to Section 21.2 (Addresses)
or changing its own address or fax number, the Facility Agent shall notify the other Parties.

ARTICLE XXII

MISCELLANEOUS

     22.1 No Assignment by the Borrower. The Borrower shall not assign any of its rights
or transfer any of its rights or obligations under the Operative Documents (except as expressly
contemplated under the Security Documents) without the prior written consent of the Facility Agent
(acting on the instructions of all of the Lenders). For the avoidance of doubt, the Borrower shall
be entitled to enter into the transactions contemplated by Section 10.8 without the

78

 

prior consent
of the Facility Agent subject only to compliance with the conditions contemplated therein.

     22.2 Set Off. A Finance Party may set off any matured obligation due from the
Borrower under the Loan Documents (to the extent beneficially owned by that Finance Party) against
any matured obligation owed by that Finance Party to the Borrower, regardless of the place of
payment, booking branch or currency of either obligation. If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of exchange in its
usual course of business for the purpose of the set off.

     22.3 Partial Invalidity. If, at any time, any provision of the Operative Documents is
or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction will in any
way be affected or impaired.

     22.4 Remedies and Waivers. No failure to exercise, nor any delay in exercising, on
the part of any Party, any right or remedy under the Operative Documents shall operate as a waiver,
nor shall any single or partial exercise of any right or remedy prevent any further or other
exercise or the exercise of any other right or remedy. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by law.

     22.5 Amendments and Waivers.

     22.5.1 Subject to Section 22.5.3 any term of the Loan Documents may be amended or waived only
in writing with the consent of the Controlling Lenders and the Borrower and any such amendment or
waiver will be binding on all Parties.

     22.5.2 The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver
permitted by this Section.

     22.5.3 No amendment or waiver that has the effect of changing or which relates to the
following shall be made without the prior consent of all the Lenders:

               (i) the definition of “Controlling Lenders” or “Lenders’ Purchase Price”;

               (ii) a change in the Commitments or an acceleration of the Pre Delivery Payment Dates;

               (iii) a change of the date of payment of any amount, a reduction of the amount of any
payment under the Loan Documents or any increase or extension of any commitment of a Lender
(except as consented to by each person adversely affected thereby);

               (iv) the release of the Guarantee or any Security Interest unless permitted under the
Loan Documents;

79

 

               (v) a reduction, modification or amendment of any indemnities in favor of any Lender
(except as consented to by each person adversely affected thereby),

               (vi) a change in the currency in which any Secured Obligation is payable under the Loan
Documents;

               (vii) any amendment to Section 2.3 (Purpose), 3.3 (Amount), 19.5 (Partial Payments) or
Section 19.6 (Application of Security Proceeds); and

               (viii) any amendment to Section 2.3 (Lender’s Rights and Obligations), Section 15.2
(Break Amounts), Section 16.1 (Events of Default), Article XX (Finance Parties; Assignment
by Lenders) or this Section 23; and

               (ix) any amendment to Section 10.9 (Aircraft Purchase Agreement) and the following
Sections of the Consent and Agreement: the definitions of “Lender’s Purchase Price” and
“Return Amount” and Sections 3.1, 3.3, 3.5(d), 4.1, 5.1, 5.3, 5.6, 5.9 and 5.11.

          22.5.4 An amendment or waiver which relates to the rights or obligations of the Facility Agent
or the Security Trustee may not be effected without the consent of the Facility Agent or the
Security Trustee, as the case may be.

          22.5.5 Any amendment or waiver made pursuant to this Section shall be made in writing.

     22.6 Waiver of Consequential Damages. In no event shall any Party be liable on any
theory of liability for any special, indirect, incidental, consequential or punitive damages, and
each Party hereby waives, releases and agrees not to sue upon any such claim for any such damages,
whether or not accrued and whether or not known or suspected to exist in its favor.

     22.7 Counterparts / Facsimile / PDF. Each Loan Document may be executed in any number
of counterparts, and this has the same effect as if the signatures on the counterparts were on a
single copy of the Loan Document. The delivery of an executed counterpart of each Loan Document by
facsimile or by PDF shall be deemed to be the equivalent of the delivery of an originally executed
original thereof (except for mortgages and other security documents as to which an original is
required in order for the security to be valid and perfected).

     22.8 Confidentiality. Each Party shall, and shall use all reasonable efforts to
ensure that its respective officers, directors, employees and agents, maintain as confidential and
shall not, without the prior written consent of the Borrower and the Facility Agent, disclose to
any third party the terms of any Operative Document, or any of the information, reports, invoices
or documents (except to the extent that it is available on the Guarantor’s website) supplied by or
on behalf of any of the Parties, save that a Party shall be entitled to disclose any such terms,
information, reports, invoices or documents:

     (a) in connection with any proceedings arising out of or in connection with any of the
Operative Documents to the extent that such Party is advised by legal counsel that it is
necessary to protect its interests or is legally required to do so; or if required to

80

 

do so
by an order of a court of competent jurisdiction whether in pursuance of any procedure for
discovering documents or otherwise; or

     (b) pursuant to any law or regulation having the force of law (including rules and
regulations of the SEC); or

     (c) to any fiscal, monetary, tax, governmental or other competent authority or
supervisory boards and bodies; or

     (d) to its auditors, bankers, legal or other professional advisers (which are under an
ethical obligation to or agree to hold such information confidential); or

     (e) in any manner contemplated by any of the Operative Documents; or

     (f) for due diligence purposes in connection with significant transactions or dealings
involving any Party, and which are outside the ordinary course of that Party’s business,
including investments, acquisitions or financings, to other potential parties to such
dealings or transactions or their professional advisors, provided that such other parties
(i) shall not be permitted to retain any copies of any of the Operative Documents
or to disclose same to any third party; and (ii) shall enter into a confidentiality
agreement on terms substantially similar to those contained in this Section 22, except that
such confidentiality agreement shall not provide for any disclosure of the terms of the
Operative Documents or any non-public information, including pursuant to this due diligence
exemption; or

     (g) if the information contained therein shall have emanated in conditions free from
confidentiality restrictions from some person other than such Party and such Party would,
but for the preceding provisions of this Section 23, have been free to disclose or use the
same.

     22.9 GOVERNING LAW; JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY
TRIAL.

          22.9.1 GOVERNING LAW. THIS AGREEMENT SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS
LAW SECTION 5-1401, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

          22.9.2 SUBMISSION TO JURISDICTION. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE
STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE
SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE

81

 

HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT
SHALL AFFECT ANY RIGHT THAT THE FACILITY AGENT, THE SECURITY TRUSTEE OR ANY LENDER MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          22.9.3 WAIVER OF VENUE. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
SECTION 22.9.2. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT.

          22.9.4 SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 21.2. NOTHING IN THIS AGREEMENT WILL
AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE
LAWS.

          22.9.5 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     22.10 USA Patriot Act. Each of the Facility Agent and the Lenders hereby notifies the
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the name and address of
the

82

 

Borrower and other information that will allow each of the Facility Agent and the Lenders (as
the case may be) to identify the Borrower in accordance with the Act.

83

 

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

ATLAS AIR, INC.

as Borrower

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ William C. Bradley
 	 
	 	 	Name:  	William C. Bradley 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	NORDDEUTSCHE LANDESBANK
GIROZENTRALE 
as Original Lender and Facility Agent

	 
	 
	 	By:  	/s/ Oliver Gruenke
 	 
	 	 	Name:  	Oliver Gruenke 	 
	 	 	Title:  	Vice President 	 

					
	 
	 	By:  	/s/ Brigit Sygusch
 	 
	 	 	Name:  	Brigit Sygusch 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF UTAH

as Security Trustee
	 
	 
	 	By:  	/s/ Nancy M. Dahl
 	 
	 	 	Name:  	Nancy M. Dahl 	 
	 	 	Title:  	Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]