Document:

EX-4.11

 CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT THAT IS MARKED BY [***] HAS BEEN OMITTED BECAUSE IT (I)
IS NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED. 
 Exhibit 4.11 

EXECUTION VERSION 
  

 
  

REVOLVING CREDIT AGREEMENT 
 (2020-1B) 
 Dated as of July 2, 2020 

between 
 U.S. BANK TRUST NATIONAL
ASSOCIATION, 
 as Subordination Agent, 

U.S. BANK TRUST NATIONAL ASSOCIATION, 

as agent and trustee for the trustee of 

Alaska Air Pass Through Trust 2020-1B, 

as Borrower 
 and 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 

ACTING THROUGH ITS NEW YORK BRANCH, 

as Liquidity Provider 
 Alaska Air
Pass Through Trust 2020-1B 
 Alaska Air Pass Through Certificates, Series 2020-1B 
  
  

 

 Table of Contents 

 

							
	 	  	 	  	Page	 
	ARTICLE I DEFINITIONS	  	 	1	 
			
	Section 1.01	  	Definitions	  	 	1	 
		
	ARTICLE II AMOUNT AND TERMS OF THE COMMITMENT	  	 	10	 
			
	Section 2.01	  	The Advances	  	 	10	 
			
	Section 2.02	  	Making of Advances	  	 	11	 
			
	Section 2.03	  	Fees	  	 	13	 
			
	Section 2.04	  	Reduction or Termination of the Maximum Commitment	  	 	13	 
			
	Section 2.05	  	Repayments of Interest Advances, the Special Termination Advance or the Final Advance	  	 	13	 
			
	Section 2.06	  	Repayments of Provider Advances	  	 	14	 
			
	Section 2.07	  	Payments to the Liquidity Provider Under the Intercreditor Agreement	  	 	15	 
			
	Section 2.08	  	Book Entries	  	 	16	 
			
	Section 2.09	  	Payments from Available Funds Only	  	 	16	 
			
	Section 2.10	  	Extension of the Expiry Date; Non-Extension Advance	  	 	16	 
		
	ARTICLE III OBLIGATIONS OF THE BORROWER	  	 	16	 
			
	Section 3.01	  	Increased Costs	  	 	16	 
			
	Section 3.02	  	Reserved	  	 	18	 
			
	Section 3.03	  	Withholding Taxes	  	 	18	 
			
	Section 3.04	  	Payments	  	 	20	 
			
	Section 3.05	  	Computations	  	 	20	 
			
	Section 3.06	  	Payment on Non-Business Days	  	 	20	 
			
	Section 3.07	  	Interest	  	 	21	 
			
	Section 3.08	  	Replacement of Borrower	  	 	22	 
			
	Section 3.09	  	Funding Loss Indemnification	  	 	22	 
			
	Section 3.10	  	Illegality	  	 	23	 
		
	ARTICLE IV CONDITIONS PRECEDENT	  	 	23	 
			
	Section 4.01	  	Conditions Precedent to Effectiveness of Section 2.01	  	 	23	 
			
	Section 4.02	  	Conditions Precedent to Borrowing	  	 	25	 

  
 i 

							
	Section 4.03	  	Representations and Warranties	  	 	25	 
		
	ARTICLE V COVENANTS	  	 	25	 
			
	Section 5.01	  	Affirmative Covenants of the Borrower	  	 	25	 
			
	Section 5.02	  	Negative Covenants of the Borrower	  	 	26	 
		
	ARTICLE VI LIQUIDITY EVENTS OF DEFAULT AND SPECIAL TERMINATION	  	 	26	 
			
	Section 6.01	  	Liquidity Events of Default	  	 	26	 
		
	ARTICLE VII MISCELLANEOUS	  	 	27	 
			
	Section 7.01	  	No Oral Modifications or Continuing Waivers	  	 	27	 
			
	Section 7.02	  	Notices	  	 	27	 
			
	Section 7.03	  	No Waiver; Remedies	  	 	28	 
			
	Section 7.04	  	Further Assurances	  	 	28	 
			
	Section 7.05	  	Indemnification; Survival of Certain Provisions	  	 	28	 
			
	Section 7.06	  	Liability of the Liquidity Provider	  	 	28	 
			
	Section 7.07	  	Certain Costs and Expenses	  	 	29	 
			
	Section 7.08	  	Binding Effect; Participations	  	 	30	 
			
	Section 7.09	  	Severability	  	 	31	 
			
	Section 7.10	  	Governing Law	  	 	31	 
			
	Section 7.11	  	Submission to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity	  	 	32	 
			
	Section 7.12	  	Counterparts	  	 	32	 
			
	Section 7.13	  	Entirety	  	 	33	 
			
	Section 7.14	  	Headings	  	 	33	 
			
	Section 7.15	  	Liquidity Provider’s Obligation to Make Advances	  	 	33	 
			
	Section 7.16	  	Patriot Act	  	 	33	 
			
	Section 7.17	  	Acknowledgment and Consent to Bail-In of EEA Financial Institutions	  	 	33	 
			
	Section 7.18	  	Head Office Obligations	  	 	34	 

  
 ii 

					
	Annex I	  	-	 	Form of Interest Advance Notice of Borrowing
	Annex II	  	-	 	Form of Non-Extension Advance Notice of Borrowing
	Annex III	  	-	 	Form of Downgrade Advance Notice of Borrowing
	Annex IV	  	-	 	Form of Final Advance Notice of Borrowing
	Annex V	  	-	 	Form of Special Termination Advance Notice of Borrowing
	Annex VI	  	-	 	Form of Notice of Termination
	Annex VII	  	-	 	Form of Notice of Special Termination
	Annex VIII	  	-	 	Form of Notice of Replacement Subordination Agent

  
 iii 

 REVOLVING CREDIT AGREEMENT 

(2020-1B) 

This REVOLVING CREDIT AGREEMENT (2020-1B), dated as of July 2, 2020, is made by and between U.S.
BANK TRUST NATIONAL ASSOCIATION, a national association organized under the laws of the United States, not in its individual capacity but solely as Subordination Agent (such term and other capitalized terms used herein without definition being
defined as provided in Article I) under the Intercreditor Agreement (as defined below) and as agent and trustee for the Class B Trustee (in such capacity, together with its successors in such capacity, the “Borrower”),
and CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, ACTING THROUGH ITS NEW YORK BRANCH, a société anonyme organized under the laws of France, acting through its New York Branch (the “Liquidity
Provider”). 
 W I T N E S S E T H: 

WHEREAS, pursuant to the Class B Trust Agreement, the Class B Trust is issuing the Class B Certificates; and 

WHEREAS, the Borrower, in order to support the timely payment of a portion of the interest on the Class B Certificates in accordance with
their terms, has requested the Liquidity Provider to enter into this Agreement, providing in part for the Borrower to request in specified circumstances that Advances be made hereunder. 

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

DEFINITIONS 

Section 1.01    Definitions. (a) The definitions stated herein apply equally to both the singular and the
plural forms of the terms defined. 
 (a)    All references in this Agreement to designated “Articles”,
“Sections”, “Annexes” and other subdivisions are to the designated Article, Section, Annex or other subdivision of this Agreement, unless otherwise specifically stated. 

(b)    The words “herein”, “hereof” and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular Article, Section, Annex or other subdivision. 
 (c)    Unless
the context otherwise requires, whenever the words “including”, “include” or “includes” are used herein, it shall be deemed to be followed by the phrase “without limitation”. 

 (d)    All references in this Agreement to a Person shall include
successors and permitted assigns of such Person. 
 (e)    For the purposes of this Agreement, unless the context
otherwise requires, the following capitalized terms shall have the following meanings: 
 “Advance” means an
Interest Advance, a Final Advance, a Provider Advance, an Unapplied Provider Advance, an Applied Provider Advance, a Special Termination Advance, an Unapplied Special Termination Advance, an Applied Special Termination Advance or an Unpaid Advance,
as the case may be. 
 “Agreement” means this Agreement, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms. 
 “Applicable Liquidity Rate” has the meaning specified in
Section 3.07(h). 
 “Applicable Margin” means (a) with respect to any Interest Advance, Final Advance,
Applied Provider Advance or Applied Special Termination Advance, 3.75% per annum, (b) with respect to any Unapplied Provider Advance, the rate per annum specified in the Fee Letter or (c) with respect to any Unapplied Special Termination
Advance, the rate per annum specified in the Fee Letter. 
 “Applied Downgrade Advance” has the meaning specified in
Section 2.06(a). 
 “Applied Non-Extension Advance” has the meaning
specified in Section 2.06(a). 
 “Applied Provider Advance” means an Applied Downgrade Advance or an Applied Non-Extension Advance. 
 “Applied Special Termination Advance” has the meaning
specified in Section 2.05. 
 “Bail-In Action” means the exercise of
any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. 

“Bail-In Legislation” means, with respect to any EEA Member Country
implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU
Bail-In Legislation Schedule. 
 “Base Rate” means a fluctuating interest
rate per annum in effect from time to time, which rate per annum shall at all times be equal to the sum of (a) the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for each day in the period for which the Base Rate is to be determined (or, if such day is not a Business Day, for the preceding Business Day) by the Federal Reserve Bank of New York, or if such rate is not so
published for any day that is a Business Day, the average of the quotations for such day for such transactions received by the Liquidity Provider from three Federal funds brokers of recognized standing selected by it (and reasonably satisfactory to
the Airlines) plus (b) one-quarter of one percent (0.25%). 

  
 2 

 “Base Rate Advance” means an Advance that bears interest at a rate
based upon the Base Rate. 
 “Benchmark Replacement Event” means, in respect of the London Interbank Offered Rate or
any successor Benchmark Replacement Rate, an event where the applicable administrator (or other applicable source) for such rate permanently or indefinitely ceases to provide such rate, without any successor administrator (or other applicable
source) continuing to provide such rate. 
 “Benchmark Replacement Rate” means, following the occurrence of a
Benchmark Replacement Event (with respect to the London Interbank Offered Rate or any then applicable successor Benchmark Replacement Rate (the “Terminating Rate”)), or at the request of the Airlines or the Liquidity Provider
in anticipation thereof following any applicable public statement from the administrator or regulatory supervisor (or other applicable authority or source) identifying a specific date for occurrence of such Benchmark Replacement Event, an applicable
alternate rate of interest (including any relevant adjusting spread) to such Terminating Rate that gives due consideration to (i) the then prevailing market convention for determining a rate of interest for U.S. dollar-denominated credit
facilities at such time (as the applicable market replacement for such Terminating Rate) and (ii) the requirements under proposed U.S. Treasury regulations section 1.1001-6 and any successor regulations
or guidance relating thereto, to the extent applicable, for the replacement of such Terminating Rate with such alternate rate of interest and any associated alteration not to be treated as a taxable exchange for U.S. federal income tax purposes, as
determined pursuant to mutual written agreement of the Airlines and the Liquidity Provider, each acting reasonably. 

“Borrower” has the meaning specified in the introductory paragraph to this Agreement. 

“Borrowing” means the making of Advances requested by delivery of a Notice of Borrowing. 

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks are required or
authorized to close in New York, New York, Wilmington, Delaware, or, so long as any Class B Certificate is outstanding, the city and state in which the Class B Trustee, the Borrower or any related Loan Trustee maintains its Corporate Trust
Office or receives or disburses funds, and, if the applicable Business Day relates to any Advance or other amount bearing interest based on the LIBOR Rate, on which dealings are carried on in the London interbank market. 

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

“Covered Taxes” means any Taxes imposed by the United States, or any political subdivision or taxing authority thereof
or therein, that are required by law to be deducted or withheld from any amounts payable to the Liquidity Provider under this Agreement other than (i) any such Tax on, based on or measured by net income, franchises or conduct of business,

  
 3 

 
(ii) any such Tax imposed, levied, withheld or assessed as a result of any connection between the Liquidity Provider and the United States or such political subdivision or taxing authority,
other than a connection arising solely from the Liquidity Provider’s having executed, delivered, performed its obligations or received a payment under, or enforced, any Operative Agreement, (iii) any such Tax attributable to the inaccuracy
in or breach by the Liquidity Provider of any of its representations, warranties or covenants contained in any Operative Agreement to which it is a party or the inaccuracy of any form, certificate or document furnished pursuant thereto,
(iv) any such withholding Taxes imposed by the United States except to the extent such withholding Taxes would not have been required to be deducted or withheld from payments hereunder but for a change after the date hereof in the Code or the
Treasury Regulations thereunder that affects the exemption for income that is effectively connected with the conduct of a trade or business within the United States, (v) any withholding Taxes imposed by the United States which are imposed or
increased as a result of the Liquidity Provider failing to deliver to the Borrower any form, certificate or document (which form, certificate or document, in the good faith judgment of the Liquidity Provider, it is legally entitled to provide) which
is reasonably requested by the Borrower to establish that payments under this Agreement are exempt from (or entitled to a reduced rate of) withholding Tax, (vi) any such Taxes that would not have been imposed but for any change in the Lending
Office without the prior written consent of the Airlines (such consent not to be unreasonably withheld), or (vii) any Taxes imposed under FATCA. 

“Downgrade Advance” means an Advance made pursuant to Section 2.02(b)(ii). 

“Downgrade Event” means any downgrading of, or any suspension or withdrawal of any applicable rating of, the Liquidity
Provider by any Rating Agency such that after such downgrading, suspension or withdrawal the Liquidity Provider does not have the minimum Long-Term Rating specified for such Rating Agency in the definition of “Threshold Rating”. The
occurrence of a Downgrade Event shall be determined separately for each Rating Agency. For the avoidance of doubt, a Downgrade Event shall not occur with respect to a Rating Agency so long as the Liquidity Provider has either of the applicable
Threshold Ratings specified for such Rating Agency. 
 “EEA Financial Institution” means (a) any credit
institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in clause
(a) of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with
its parent. 
 “EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein,
and Norway. 
 “EEA Resolution Authority” means any public administrative authority or any person entrusted with
public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

  
 4 

 “Effective Date” has the meaning specified in Section 4.01. The
delivery of the certificate of the Liquidity Provider contemplated by Section 4.01(e) shall be conclusive evidence that the Effective Date has occurred. 

“EU Bail-In Legislation Schedule” means the EU
Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 

“Excluded Taxes” means (a) Taxes imposed on the overall net income of the Liquidity Provider, (b) Taxes
imposed on the “effectively connected income” of its Lending Office, (c) Covered Taxes that are indemnified pursuant to Section 3.03 hereof, and (d) Taxes described in clauses (i) through (vii) in the definition of
“Covered Taxes”. 
 “Expenses” means liabilities, losses, damages, costs and expenses
(including, without limitation, reasonable fees and disbursements of legal counsel), provided that Expenses shall not include any Taxes other than sales, use and V.A.T. taxes imposed on fees and expenses payable pursuant to Section 7.07.

 “Expiry Date” means the earlier of (a) the anniversary date of the Closing Date immediately following the
date on which the Liquidity Provider has provided a Non-Extension Notice to the Borrower pursuant to Section 2.10 and (b) the 15th day after the
Final Legal Distribution Date of the Class B Certificates. 
 “FATCA” means Sections 1471 through 1474 of the
Code as of the date of this Agreement (or any amended or successor provisions that are substantively comparable and not materially more onerous to comply with); any current or future regulations or official interpretations thereof; any agreements
entered into pursuant to Section 1471(b)(1) of the Code; any intergovernmental agreement entered into in connection with any of the foregoing; and any fiscal or regulatory legislation, rules or practices adopted pursuant to any such
intergovernmental agreement. 
 “Final Advance” means an Advance made pursuant to Section 2.02(c). 

“Head Office” has the meaning specified in Section 7.18. 

“Increased Cost” has the meaning specified in Section 3.01. 

“Intercreditor Agreement” means the Intercreditor Agreement, dated as of the date hereof, among the Trustees, the
Liquidity Provider, the liquidity provider under each Liquidity Facility (other than this Agreement), and the Subordination Agent, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Interest Advance” means an Advance made pursuant to Section 2.02(a). 

  
 5 

 “Interest Period” means, with respect to any LIBOR Advance, each of
the following periods: 
 (i)    the period beginning on the third Business Day following either
(A) the Liquidity Provider’s receipt of the Notice of Borrowing for such LIBOR Advance or (B) the date of the withdrawal of funds from the Class B Cash Collateral Account for the purpose of paying interest on the Class B
Certificates as contemplated by Section 2.06(a) hereof and, in each case, ending on the next succeeding Regular Distribution Date; and 

(ii)    each subsequent period commencing on the last day of the immediately preceding Interest Period and
ending on the next succeeding Regular Distribution Date; 
 provided, however, that if (x) the Final Advance shall have been made
pursuant to Section 2.02(c) or (y) other outstanding Advances shall have been converted into the Final Advance pursuant to Section 6.01(a), then the Interest Periods shall be successive periods of one month beginning on (A) the
third Business Day following the Liquidity Provider’s receipt of the Notice of Borrowing for such Final Advance (in the case of clause (x) above) or (B) the Regular Distribution Date following such conversion (in the case of
clause (y) above). 
 “Lending Office” means the lending office of the Liquidity Provider through which it acts
for purposes of this Agreement, which is presently located at 1301 Avenue of the Americas, New York, NY 10019, or such other lending office as the Liquidity Provider from time to time shall notify the Borrower as its lending office hereunder;
provided that the Liquidity Provider shall not change its Lending Office without the prior written consent of the Airlines (such consent not to be unreasonably withheld). 

“LIBOR Advance” means an Advance bearing interest at a rate based upon the LIBOR Rate. 

“LIBOR Rate” means, with respect to any Interest Period, (a) the interest rate per annum equal to the London
Interbank Offered Rate per annum administered by ICE Benchmark Administration Limited (or any other successor person which takes over administration of that rate) for Dollar deposits, which rate is displayed on the Reuters Screen LIBOR01 (or such
other page or screen as may replace such Reuters Screen) at approximately 11:00 a.m. (London time) on the day that is two Business Days prior to the first day of such Interest Period, for a period comparable to such Interest Period, or
(b) if no such rate appears on such Reuters Screen (or otherwise as aforesaid), the interest rate per annum equal to the average (rounded up, if necessary, to the nearest 1/100th of 1%) of the rates per annum at which deposits in Dollars are
offered by the Reference Banks (or, if fewer than all of the Reference Banks are quoting a rate for deposits in Dollars for the applicable period and amount, such fewer number of Reference Banks) at approximately 11:00 a.m. (London time) on the
day that is two Business Days prior to the first day of such Interest Period to prime banks in the London interbank market for a period comparable to such Interest Period and in an amount approximately equal to the principal amount of the LIBOR
Advance to be outstanding during such Interest Period, or (c) if none of the Reference Banks is quoting a rate for deposits in Dollars in the London interbank market for such a period and amount, the interest rate per annum equal to the average
(rounded up, if necessary, to the nearest 1/100th of 1%) of the rates at which deposits in Dollars are offered by the principal New York offices of the Reference Banks (or, if fewer than all of the Reference Banks are quoting a rate for deposits in
Dollars in the New York interbank market for the 

  
 6 

 
applicable period and amount, such fewer number of Reference Banks) at approximately 11:00 a.m. (New York time) on the day that is two Business Days prior to the first day of such Interest
Period to prime banks in the New York interbank market for a period comparable to such Interest Period and in an amount approximately equal to the principal amount of the LIBOR Advance to be outstanding during such Interest Period, or (d) if
none of the principal New York offices of the Reference Banks is quoting a rate for deposits in Dollars in the New York interbank market for the applicable period and amount, the Base Rate; provided that, if a Benchmark Replacement Event has
occurred (or an applicable Benchmark Replacement Rate has otherwise been established with agreed effectiveness prior to such Benchmark Replacement Event), the LIBOR Rate shall be the lower of (i) the Base Rate and (ii) the Benchmark
Replacement Rate (if then established and effective); provider, further, that, if the LIBOR Rate determined as provided above with respect to any LIBOR Advance for any Interest Period would be less than zero, then the LIBOR Rate with
respect to such LIBOR Advance shall be deemed to be zero. 
 “Liquidity Event of Default” means the occurrence of
either (a) the Acceleration of all of the Equipment Notes or (b) an Airline Bankruptcy Event. 
 “Liquidity
Indemnitee” means the Liquidity Provider, its directors, officers, employees and agents, and its successors and permitted assigns. 

“Liquidity Provider” has the meaning specified in the introductory paragraph to this Agreement. 

“Maximum Available Commitment” means, subject to the proviso contained in the third sentence of Section 2.02(a),
at any time of determination, (a) the Maximum Commitment at such time less (b) the aggregate amount of each Interest Advance outstanding at such time; provided that, subject to Section 2.06(d), following a Provider Advance, a
Special Termination Advance or a Final Advance, the Maximum Available Commitment shall be zero. 
 “Maximum
Commitment” means $26,966,600, as the same may be reduced from time to time in accordance with Section 2.04(a). 

“Non-Extension Advance” means an Advance made pursuant to
Section 2.02(b)(i). 
 “Non-Extension Notice” has the meaning specified
in Section 2.10. 
 “Notice of Borrowing” has the meaning specified in Section 2.02(e). 

“Notice of Replacement Subordination Agent” has the meaning specified in Section 3.08. 

“Offering Memorandum” means the final Offering Memorandum, dated June 24, 2020, relating to the offering of the
Class B Certificates. 
 “Participation” has the meaning specified in Section 7.08(b). 

  
 7 

 “Performing Note Deficiency” means any time that less than 65% of
the then aggregate outstanding principal amount of all Series A Equipment Notes and all Series B Equipment Notes are Performing Equipment Notes. 

“Permitted Transferee” means any Person that: 

(a)    is not a commercial air carrier, the Parent, an Airline or any affiliate of an Airline; and 

(b)    is any one of: 

(1)    a commercial banking institution organized under the laws of the United States or any state thereof
or the District of Columbia; 
 (2)    a commercial banking institution that (x) is organized under
the laws of France, Germany, The Netherlands, Switzerland or the United Kingdom, (y) is entitled on the date it acquires any Participation to a complete exemption from United States federal income taxes for all income derived by it from the
transactions contemplated by the Operative Agreements under an income tax treaty, as in effect on such date, between the United States and such jurisdiction of its organization and (z) is engaged in the active conduct of a banking business in
such jurisdiction of its organization, holds its Participation in connection with such banking business in such jurisdiction and is regulated as a commercial banking institution by the appropriate regulatory authorities in such jurisdiction; or 

(3)    a commercial banking institution that (x) is organized under the laws of Canada, France,
Germany, Ireland, Japan, Luxembourg, The Netherlands, Sweden, Switzerland or the United Kingdom and (y) is entitled on the date it acquires any Participation to a complete exemption from withholding of United States federal income taxes for all
income derived by it from the transactions contemplated by the Operative Agreements under laws as in effect on such date by reason of such income being effectively connected with the conduct of a trade or business within the United States. 

“Provider Advance” means a Downgrade Advance or a Non-Extension Advance. 

“Rate Determination Notice” has the meaning specified in Section 3.07(g). 

“Reference Banks” means the principal London offices of: Barclays Bank plc, JP Morgan Chase Bank and Citibank, N.A.;
and/or such other or additional banking institutions as may be designated from time to time by mutual agreement of the Airlines and the Liquidity Provider. 

“Regulatory Change” means (x) the enactment, adoption or promulgation, after the date of this Agreement, of any
law or regulation by a United States federal or state government or by any government having jurisdiction over the Liquidity Provider, or any change, after the date of this Agreement, in any such law or regulation, or in the interpretation thereof
by any governmental authority, central bank or comparable agency of the United States or any 

  
 8 

 
government having jurisdiction over the Liquidity Provider charged with responsibility for the administration or application thereof, that shall impose, modify or deem applicable, or (y) the
compliance by the Liquidity Provider (or its Head Office) with any applicable direction or requirement (whether or not having the force of law) of any central bank or competent governmental or other authority, after the date of this Agreement, with
respect to: (a) any reserve, special deposit or similar requirement against extensions of credit or other assets of, or deposits with or other liabilities of, the Liquidity Provider including, or by reason of, the Advances, or (b) any
capital adequacy requirement requiring the maintenance by the Liquidity Provider of additional capital in respect of any Advances or the Liquidity Provider’s obligation to make any such Advances, or (c) any requirement to maintain
liquidity or liquid assets in respect of the Liquidity Provider’s obligation to make any such Advances, or (d) any Taxes (other than Excluded Taxes) with respect to the amounts payable or paid hereunder to the Liquidity Provider or any
change in the basis of taxation of any amounts payable hereunder to the Liquidity Provider (other than in respect of Excluded Taxes). 

“Replenishment Amount” has the meaning specified in Section 2.06(b). 

“Required Amount” means, for any day, the sum of the aggregate amount of interest, calculated at the rate per annum
equal to the Stated Interest Rate for the Class B Certificates on the basis of a 360-day year comprised of twelve 30-day months, that would be distributable on the
Class B Certificates on each of the three successive semiannual Regular Distribution Dates immediately following such day or, if such day is a Regular Distribution Date, on such day and the succeeding two semiannual Regular Distribution Dates,
in each case calculated on the basis of the Pool Balance of the Class B Certificates on such day and without regard to expected future distributions of principal on the Class B Certificates. 

“Special Termination Advance” means an Advance made pursuant to Section 2.02(d). 

“Special Termination Notice” means the Notice of Special Termination substantially in the form of
Annex VII to this Agreement. 
 “Termination Date” means the earliest to occur of the
following: (i) the Expiry Date; (ii) the date on which the Borrower delivers to the Liquidity Provider a certificate, signed by a Responsible Officer of the Borrower, certifying that all of the Class B Certificates have been paid in
full (or provision has been made for such payment in accordance with the Intercreditor Agreement and the Class B Trust Agreement) or are otherwise no longer entitled to the benefits of this Agreement; (iii) the date on which the Borrower
delivers to the Liquidity Provider a certificate, signed by a Responsible Officer of the Borrower, certifying that a Replacement Liquidity Facility has been substituted for this Agreement in full pursuant to Section 3.05(e) of the Intercreditor
Agreement; (iv) the fifth Business Day following the receipt by the Borrower of a Termination Notice or a Special Termination Notice from the Liquidity Provider pursuant to Section 6.01(a) or 6.01(b), as applicable; and (v) the date
on which no Advance is or may (including by reason of reinstatement as herein provided) become available for a Borrowing hereunder. 

“Termination Notice” means the Notice of Termination substantially in the form of Annex VI to this Agreement.

  
 9 

 “Unapplied Advance” has the meaning specified in
Section 3.07(e). 
 “Unapplied Downgrade Advance” means the portion of any Downgrade Advance that is not an
Applied Downgrade Advance. 
 “Unapplied Non-Extension Advance” means the
portion of any Non-Extension Advance that is not an Applied Non-Extension Advance. 

“Unapplied Provider Advance” means the portion of any Provider Advance that is not an Applied Provider Advance. 

“Unapplied Special Termination Advance” means the portion of any Special Termination Advance that is not an Applied
Special Termination Advance. 
 “Unpaid Advance” has the meaning specified in Section 2.05. 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion
powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 
 For the purposes of this Agreement, the following terms shall have the
respective meanings specified in the Intercreditor Agreement: 
 “Acceleration”, “Additional Certificates”,
“Aircraft”, “Airline”, “Airline Bankruptcy Event”, “Certificate”, “Certificate Purchase Agreement”, “Class A Certificates”, “Class B Cash Collateral Account”,
“Class B Certificateholders”, “Class B Certificates”, “Class B Trust”, “Class B Trust Agreement”, “Class B Trustee”, “Closing Date”, “Collection Account”,
“Corporate Trust Office”, “Distribution Date”, “Dollars”, “Downgrade Drawing”, “Downgraded Facility”, “Equipment Notes”, “Fee Letter”, “Final Legal Distribution Date”,
“Indenture”, “Initial Purchasers”, “Interest Payment Date”, “Investment Earnings”, “Liquidity Facility”, “Loan Trustee”, “Long-Term Rating”,
“Non-Extended Facility”, “Operative Agreements”, “Parent”, “Participation Agreements”, “Performing Equipment Note”, “Person”, “Pool
Balance”, “Rating Agencies”, “Regular Distribution Date”, “Replacement Liquidity Facility”, “Responsible Officer”, “Scheduled Payment”, “Series A Equipment Notes”, “Series B
Equipment Notes”, “Special Payment”, “Stated Interest Rate”, “Subordination Agent”, “Taxes”, “Threshold Rating”, “Treasury Regulations”, “Trust Agreement”,
“Trustee”, and “United States”. 
 ARTICLE II 

AMOUNT AND TERMS OF THE COMMITMENT 

Section 2.01    The Advances. The Liquidity Provider hereby irrevocably agrees, on the terms and conditions
hereinafter set forth, to make Advances to the Borrower from time to time on any Business Day during the period from the Effective Date until 12:00 noon (New York City time) on the Expiry Date (unless the obligations of the Liquidity Provider shall
be earlier terminated in accordance with the terms of Section 2.04(b)) in an aggregate amount at any time outstanding not to exceed the Maximum Commitment. 

  
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 Section 2.02    Making of Advances. (a) Each Interest
Advance shall be made by the Liquidity Provider upon delivery to the Liquidity Provider of a written and completed Notice of Borrowing in substantially the form of Annex I, signed by a Responsible Officer of the Borrower, such Interest
Advance to be in an amount not exceeding the Maximum Available Commitment at such time and used solely for the payment when due of interest with respect to the Class B Certificates at the Stated Interest Rate therefor in accordance with
Section 3.05(a) and 3.05(b) of the Intercreditor Agreement. Each Interest Advance made hereunder shall automatically reduce the Maximum Available Commitment and the amount available to be borrowed hereunder by subsequent Advances by the amount
of such Interest Advance (subject to reinstatement as provided in the next sentence). Upon repayment to the Liquidity Provider in full or in part of the amount of any Interest Advance made pursuant to this Section 2.02(a), together with accrued
interest thereon (as provided herein), the Maximum Available Commitment shall be reinstated by an amount equal to the amount of such Interest Advance so repaid, but not to exceed the Maximum Commitment; provided, however, that the
Maximum Available Commitment shall not be so reinstated at any time if (x) both a Performing Note Deficiency exists and a Liquidity Event of Default shall have occurred and be continuing or (y) a Final Advance, a Downgrade Advance, a Non-Extension Advance or a Special Termination Advance shall have occurred, except as provided in Section 2.06(d) with respect to a Downgrade Drawing. 

(a)    (i) A Non-Extension Advance shall be made by the Liquidity Provider in a
single Borrowing if this Agreement is not extended in accordance with Section 3.05(d) of the Intercreditor Agreement unless a Replacement Liquidity Facility to replace this Agreement shall have been previously delivered to the Borrower in
accordance with said Section 3.05(d), upon delivery to the Liquidity Provider of a written and completed Notice of Borrowing in substantially the form of Annex II, signed by a Responsible Officer of the Borrower, in an amount equal to
the Maximum Available Commitment at such time, and shall be used to fund the Class B Cash Collateral Account in accordance with Sections 3.05(d) and 3.05(f) of the Intercreditor Agreement. 

(ii)    A Downgrade Advance shall be made by the Liquidity Provider in a single Borrowing upon this Liquidity Facility
becoming a Downgraded Facility (as provided for in Section 3.05(c) of the Intercreditor Agreement) unless a Replacement Liquidity Facility to replace this Agreement shall have been previously delivered to the Borrower in accordance with said
Section 3.05(c), upon delivery to the Liquidity Provider of a written and completed Notice of Borrowing in substantially the form of Annex III, signed by a Responsible Officer of the Borrower, in an amount equal to the Maximum Available
Commitment at such time, and shall be used to fund the Class B Cash Collateral Account in accordance with Sections 3.05(c) and 3.05(f) of the Intercreditor Agreement. 

(b)    A Final Advance shall be made by the Liquidity Provider in a single Borrowing following the receipt by the Borrower
of a Termination Notice from the Liquidity Provider pursuant to Section 6.01(a) upon delivery to the Liquidity Provider of a written and 

  
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completed Notice of Borrowing in substantially the form of Annex IV, signed by a Responsible Officer of the Borrower, in an amount equal to the Maximum Available Commitment at such time,
and shall be used to fund the Class B Cash Collateral Account in accordance with Sections 3.05(f) and 3.05(i) of the Intercreditor Agreement. 

(c)    A Special Termination Advance shall be made in a single Borrowing upon the receipt by the Borrower of a Special
Termination Notice from the Liquidity Provider pursuant to Section 6.01(b), by delivery to the Liquidity Provider of a written and completed Notice of Borrowing in substantially the form of Annex V, signed by a Responsible Officer of the
Borrower, in an amount equal to the Maximum Available Commitment at such time, and shall be used to fund the Class B Cash Collateral Account in accordance with Section 3.05(f) and Section 3.05(k) of the Intercreditor Agreement. 

(d)    Each Borrowing shall be made by notice in writing (a “Notice of Borrowing”) in
substantially the form required by Section 2.02(a), 2.02(b), 2.02(c) or 2.02(d), as the case may be, given by the Borrower to the Liquidity Provider. If a Notice of Borrowing is delivered by the Borrower in respect of any Borrowing no later
than 12:30 p.m. (New York City time) on a Business Day, upon satisfaction of the conditions precedent set forth in Section 4.02 with respect to such requested Borrowing, the Liquidity Provider shall make available to the Borrower, in
accordance with its payment instructions, the amount of such Borrowing in Dollars and immediately available funds, before 4:00 p.m. (New York City time) on such Business Day or before 12:30 p.m. (New York City time) on such later Business
Day specified in such Notice of Borrowing. If a Notice of Borrowing is delivered by the Borrower in respect of any Borrowing after 12:30 p.m. (New York City time) on a Business Day, upon satisfaction of the conditions precedent set forth in
Section 4.02 with respect to such requested Borrowing, the Liquidity Provider shall make available to the Borrower, in accordance with its payment instructions, the amount of such Borrowing in Dollars and immediately available funds, before
1:00 p.m. (New York City time) on the first Business Day next following the day of receipt of such Notice of Borrowing or on such later Business Day specified by the Borrower in such Notice of Borrowing. Payments of proceeds of a Borrowing
shall be made by wire transfer of immediately available funds to the Borrower in accordance with such wire transfer instructions as the Borrower shall furnish from time to time to the Liquidity Provider for such purpose. Each Notice of Borrowing
shall be irrevocable and binding on the Borrower. Each Notice of Borrowing shall be effective upon delivery of a copy thereof to the Liquidity Provider at the address and in the manner specified in Section 7.02 hereof. 

(e)    Upon the making of any Advance requested pursuant to a Notice of Borrowing in accordance with the Borrower’s
payment instructions, the Liquidity Provider shall be fully discharged of its obligation hereunder with respect to such Notice of Borrowing, and the Liquidity Provider shall not thereafter be obligated to make any further Advances hereunder in
respect of such Notice of Borrowing to the Borrower or to any other Person (including the Class B Trustee or any Class B Certificateholder). If the Liquidity Provider makes an Advance requested pursuant to a Notice of Borrowing before
12:00 noon (New York City time) on the second Business Day after the date of payment specified in Section 2.02(e), the Liquidity Provider shall have fully discharged its obligations hereunder with respect to such Advance and an event of default
shall not have occurred hereunder. Following the making of any Advance 

  
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pursuant to Section 2.02(b), 2.02(c) or 2.02(d) to fund the Class B Cash Collateral Account, the Liquidity Provider shall have no interest in or rights to the Class B Cash
Collateral Account, such Advance or any other amounts from time to time on deposit in the Class B Cash Collateral Account; provided that the foregoing shall not affect or impair the obligations of the Subordination Agent to make the
distributions contemplated by Section 3.05(c)(v), 3.05(e) or 3.05(f) of the Intercreditor Agreement and provided, further, that the foregoing shall not affect or impair the rights of the Liquidity Provider to provide written instructions
with respect to the investment and reinvestment of amounts in the Class B Cash Collateral Account to the extent the Liquidity Provider is entitled to do so pursuant to Section 2.2(b) of the Intercreditor Agreement. By paying to the
Borrower proceeds of Advances requested by the Borrower in accordance with the provisions of this Agreement, the Liquidity Provider makes no representation as to, and assumes no responsibility for, the correctness or sufficiency for any purpose of
the amount of the Advances so made and requested. 
 Section 2.03    Fees. The Borrower agrees to pay to the
Liquidity Provider the fees set forth in the Fee Letter. 
 Section 2.04    Reduction or Termination of the
Maximum Commitment. (a) Automatic Reduction. Promptly following each date on which the Required Amount is reduced as a result of a reduction in the Pool Balance of the Class B Certificates, the Maximum Commitment shall automatically
be reduced to an amount equal to such reduced Required Amount (as calculated by the Borrower). The Borrower shall give notice of any such automatic reduction of the Maximum Commitment to the Liquidity Provider and the Airlines within two Business
Days thereof. The failure by the Borrower to furnish any such notice shall not affect any such automatic reduction of the Maximum Commitment. 

(a)    Termination. Upon the making of any Provider Advance or Special Termination Advance or the making of or
conversion to a Final Advance hereunder or the occurrence of the Termination Date, the obligation of the Liquidity Provider to make further Advances hereunder shall automatically and irrevocably terminate, and the Borrower shall not be entitled to
request any further Borrowing hereunder, except in the case of a Downgrade Advance, as provided in Section 2.06(d). 

Section 2.05    Repayments of Interest Advances, the Special Termination Advance or the Final Advance. Subject
to Sections 2.06, 2.07 and 2.09 hereof, the Borrower hereby agrees, without notice of an Advance or demand for repayment from the Liquidity Provider (which notice and demand are hereby waived by the Borrower), to pay, or to cause to be paid, to the
Liquidity Provider (a) on each date on which the Liquidity Provider shall make an Interest Advance, the Special Termination Advance or the Final Advance, an amount equal to the amount of such Advance (any such Advance, until repaid, is referred
to herein as an “Unpaid Advance”), plus (b) interest on the amount of each such Unpaid Advance in the amounts and on the dates determined as provided in Section 3.07; provided that if (i) the Liquidity
Provider shall make a Provider Advance at any time after making one or more Interest Advances which shall not have been repaid in accordance with this Section 2.05 or (ii) this Liquidity Facility shall become a Downgraded Facility or Non-Extended Facility at any time when unreimbursed Interest Advances have reduced the Maximum Available Commitment to zero, then such Interest 

  
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Advances shall cease to constitute Unpaid Advances and shall be deemed to have been changed into an Applied Downgrade Advance or an Applied Non-Extension
Advance, as the case may be, for all purposes of this Agreement (including, without limitation, for the purpose of determining when such Interest Advance is required to be repaid to the Liquidity Provider in accordance with Section 2.06 and for
the purposes of Section 2.06(b)); provided, further, that amounts in respect of a Special Termination Advance withdrawn from the Class B Cash Collateral Account for the purpose of paying interest on the Class B
Certificates in accordance with Section 3.05(f) of the Intercreditor Agreement (the portion of the outstanding Special Termination Advance equal to the amount of any such withdrawal, but not in excess of the outstanding Special Termination
Advance, being an “Applied Special Termination Advance”) shall thereafter (subject to Section 2.06(b)) be treated as an Interest Advance under this Agreement for purposes of determining the Applicable Liquidity Rate for
interest payable thereon; provided, further, that if, following the making of a Special Termination Advance, the Liquidity Provider delivers a Termination Notice to the Borrower pursuant to Section 6.01(a), such Special
Termination Advance (including any portion thereof that is an Applied Special Termination Advance) shall thereafter be treated as a Final Advance under this Agreement for purposes of determining the Applicable Liquidity Rate for interest payable
thereon; and, provided, further, that if, after making a Provider Advance, the Liquidity Provider delivers a Special Termination Notice to the Borrower pursuant to Section 6.01(b), any Unapplied Provider Advance shall be converted
to and treated as a Special Termination Advance under this Agreement for purposes of determining the Applicable Liquidity Rate for interest payable thereon and the obligation for repayment thereof under the Intercreditor Agreement. The Borrower and
the Liquidity Provider agree that the repayment in full of each Interest Advance, Special Termination Advance and Final Advance on the date such Advance is made is intended to be a contemporaneous exchange for new value given to the Borrower by the
Liquidity Provider. For the avoidance of doubt, interest payable on an Interest Advance, Special Termination Advance or the Final Advance shall not be regarded as overdue unless such interest is not paid when due under Section 3.07. 

Section 2.06    Repayments of Provider Advances. (a) Amounts advanced hereunder in respect of a Provider
Advance shall be deposited in the Class B Cash Collateral Account and invested and withdrawn from the Class B Cash Collateral Account as set forth in Sections 3.05(c), 3.05(d), 3.05(e) and 3.05(f) of the Intercreditor Agreement. Subject to
Sections 2.07 and 2.09, the Borrower agrees to pay to the Liquidity Provider, on each Regular Distribution Date, commencing on the first Regular Distribution Date after the making of a Provider Advance, interest on the principal amount of any such
Provider Advance, in the amounts determined as provided in Section 3.07; provided, however, that amounts in respect of a Provider Advance withdrawn from the Class B Cash Collateral Account for the purpose of paying interest
on the Class B Certificates in accordance with Section 3.05(f) of the Intercreditor Agreement (the amount of any such withdrawal being (y), in the case of a Downgrade Advance, an “Applied Downgrade Advance” and
(z) in the case of a Non-Extension Advance, an “Applied Non-Extension Advance” and together with an Applied Downgrade Advance, an
“Applied Provider Advance”) shall thereafter (subject to Section 2.06(b)) be treated as an Interest Advance under this Agreement for purposes of determining the Applicable Liquidity Rate for interest payable thereon;
provided, further, however, that if, following the making of a Provider Advance, the Liquidity Provider delivers a Termination Notice to the Borrower pursuant to Section 6.01(a), such Provider Advance shall thereafter be
treated as a Final Advance under this Agreement for 

  
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purposes of determining the Applicable Liquidity Rate for interest payable thereon. Subject to Sections 2.07 and 2.09, immediately upon the withdrawal of any amounts from the Class B Cash
Collateral Account on account of a reduction in the Required Amount, the Borrower shall repay to the Liquidity Provider a portion of the Provider Advances in a principal amount equal to such reduction, plus interest on the principal amount so repaid
as provided in Section 3.07. 
 (a)    At any time when an Applied Provider Advance or Applied Special Termination
Advance (or any portion thereof) is outstanding, upon the deposit in the Class B Cash Collateral Account of any amount pursuant to clause “fourth” of Section 3.02 of the Intercreditor Agreement (any such amount being a
“Replenishment Amount”) for the purpose of replenishing or increasing the balance thereof up to the Required Amount at such time, (i) the aggregate outstanding principal amount of all Applied Provider Advances and
Applied Special Termination Advances (and of Provider Advances and Special Termination Advances treated as Interest Advances for purposes of determining the Applicable Liquidity Rate for interest payable thereon) shall be automatically reduced by
the amount of such Replenishment Amount, and (ii) the aggregate outstanding principal amount of all Unapplied Provider Advances shall be automatically increased by the amount of such Replenishment Amount. 

(b)    Upon the provision of a Replacement Liquidity Facility in replacement of this Agreement in accordance with
Section 3.05(e) of the Intercreditor Agreement, as provided in Section 3.05(f) of the Intercreditor Agreement, amounts remaining on deposit in the Class B Cash Collateral Account after giving effect to any Applied Provider Advance or
Applied Special Termination Advance on the date of such replacement shall be reimbursed to the Liquidity Provider, but only to the extent such amounts are necessary to repay in full to the Liquidity Provider all amounts owing to it hereunder. 

(c)    If, at any time after making a Downgrade Advance, the Liquidity Provider satisfies the Threshold Rating and
delivers written notice to that effect to the Borrower and the Airlines, as of the second Business Day following receipt of such notice, (i) this Liquidity Facility shall cease to be a Downgraded Facility, (ii) any Unapplied Downgrade
Advance shall be withdrawn from the Class B Cash Collateral Account and reimbursed to the Liquidity Provider, (iii) any Applied Downgrade Advance shall be converted to an Interest Advance, (iv) the Maximum Available Commitment shall
be reinstated by an amount equal to the amount of such Unapplied Downgrade Advance so reimbursed, but not to exceed the Maximum Commitment, and the obligation of the Liquidity Provider to make Advances shall be reinstated in an equal amount,
(v) the Borrower shall be entitled to request Borrowings and (vi) the proviso in the definition of Maximum Available Commitment and clause (y) of the proviso in the final sentence of Section 2.02(a) shall, in each case, no longer
apply to such Downgrade Advance. 
 Section 2.07    Payments to the Liquidity Provider Under the Intercreditor
Agreement. In order to provide for payment or repayment to the Liquidity Provider of any amounts hereunder, the Intercreditor Agreement provides that amounts available and referred to in Articles II and III of the Intercreditor Agreement, to the
extent payable to the Liquidity Provider pursuant to the terms of the Intercreditor Agreement (including, without limitation, Section 3.05(f) of the Intercreditor Agreement), shall be paid to the Liquidity Provider in accordance with the terms
thereof (but, for the avoidance of doubt, without duplication of or increase in any amounts 

  
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payable hereunder). Amounts so paid to the Liquidity Provider shall be applied by the Liquidity Provider in the order of priority required by the applicable provisions of Articles II and III
of the Intercreditor Agreement and shall discharge in full the corresponding obligations of the Borrower hereunder. 

Section 2.08    Book Entries. The Liquidity Provider shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower resulting from Advances made from time to time and the amounts of principal and interest payable hereunder and paid from time to time in respect thereof; provided,
however, that the failure by the Liquidity Provider to maintain such account or accounts shall not affect the obligations of the Borrower in respect of Advances. 

Section 2.09    Payments from Available Funds Only. All payments to be made by the Borrower under this
Agreement shall be made only from the amounts that constitute Scheduled Payments, Special Payments and other payments under the Operative Agreements, including payment under Section 4.02 of the Participation Agreements and payments under
Section 2.14 of the Indentures, and only to the extent that the Borrower shall have sufficient income or proceeds therefrom to enable the Borrower to make payments in accordance with the terms hereof after giving effect to the priority of
payments provisions set forth in the Intercreditor Agreement. The Liquidity Provider agrees that it will look solely to such amounts to the extent available for distribution to it as provided in the Intercreditor Agreement and this Agreement and
that the Borrower, in its individual capacity, is not personally liable to it for any amounts payable or liability under this Agreement except as expressly provided in this Agreement, the Intercreditor Agreement or any Participation Agreement.
Amounts on deposit in the Class B Cash Collateral Account shall be available to the Borrower to make payments under this Agreement only to the extent and for the purposes expressly contemplated in Section 3.05(f) of the Intercreditor
Agreement. 
 Section 2.10    Extension of the Expiry Date;
Non-Extension Advance. If the Liquidity Provider notifies the Borrower and the Airlines in writing before the 60th day prior to any anniversary date of
the Closing Date that occurs prior to the 15th day after the Final Legal Distribution Date for the Class B Certificates (such notice, a
“Non-Extension Notice”) that its obligations to make Advances hereunder shall not be extended beyond the immediately following anniversary date of the Closing Date (and if the Liquidity
Provider shall not have been replaced in accordance with Section 3.05(e) of the 
 Intercreditor Agreement), the Borrower shall be entitled on and
after the 25th day prior to such anniversary date (but prior to such anniversary date and in any event prior to the then applicable Expiry Date) to request a
Non-Extension Advance in accordance with Section 2.02(b)(i) hereof and Section 3.05(d) of the Intercreditor Agreement. 

ARTICLE III 
 OBLIGATIONS OF THE
BORROWER 
 Section 3.01    Increased Costs. Without duplication of any rights created by Section 3.03,
if as a result of any Regulatory Change there shall be any increase by an amount reasonably 

  
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deemed by the Liquidity Provider to be material in the actual cost to the Liquidity Provider of making, funding or maintaining any Advances or its obligation to make any such Advances or there
shall be any reduction by an amount reasonably deemed by the Liquidity Provider to be material in the amount receivable by the Liquidity Provider under this Agreement or the Intercreditor Agreement in respect thereof, and in case of either such an
increase or reduction, such event does not arise from the gross negligence or willful misconduct of the Liquidity Provider, from its breach of any of its representations, warranties, covenants or agreements contained herein or in the Intercreditor
Agreement or from its failure to comply with any such Regulatory Change (any such increase or reduction being referred to herein as an “Increased Cost”), then, subject to Sections 2.07 and 2.09, the Borrower shall from time
to time pay to the Liquidity Provider an amount equal to such Increased Cost within 10 Business Days after delivery to the Borrower and the Airlines of a certificate of an officer of the Liquidity Provider describing in reasonable detail the event
by reason of which it claims such Increased Cost and the basis for the determination of the amount of such Increased Cost; provided that the Borrower shall be obligated to pay amounts only with respect to any Increased Costs accruing from the
date 120 days prior to the date of delivery of such certificate. Such certificate, in the absence of manifest error, shall be considered prima facie evidence of the amount of the Increased Costs for purposes of this Agreement; provided that
any determinations and allocations by the Liquidity Provider of the effect of any Regulatory Change on the costs of maintaining the Advances or the obligation to make Advances are made on a reasonable basis. For the avoidance of doubt, the Liquidity
Provider shall not be entitled to assert any claim under this Section 3.01 in respect of or attributable to Excluded Taxes. The Liquidity Provider will notify the Borrower and the Airlines as promptly as practicable of any event occurring after
the date of this Agreement that will entitle the Liquidity Provider to compensation under this Section 3.01. The Liquidity Provider agrees to investigate all commercially reasonable alternatives for reducing any Increased Costs and to use all
commercially reasonable efforts to avoid or minimize, to the greatest extent possible, any claim in respect of Increased Costs, including, without limitation, by designating a different Lending Office, if such designation or other action would avoid
the need for, or reduce the amount of, any such claim; provided that the foregoing shall not obligate the Liquidity Provider to take any action that would, in its reasonable judgment, cause the Liquidity Provider to take any action that is
not materially consistent with its internal policies or is otherwise materially disadvantageous to the Liquidity Provider or that would cause the Liquidity Provider to incur any material loss or cost, unless the Borrower or the Airlines agree to
reimburse or indemnify the Liquidity Provider therefor. If no such designation or other action is effected, or, if effected, such notice fails to avoid the need for any claim in respect of Increased Costs, the Airlines may arrange for a Replacement
Liquidity Facility in accordance with Section 3.05(e) of the Intercreditor Agreement. 
 Notwithstanding the foregoing provisions, in
no event shall the Borrower be required to make payments under this Section 3.01: (a) in respect of any Regulatory Change proposed by any applicable governmental authority (including any branch of a legislature), central bank or comparable
agency of the United States or the Liquidity Provider’s jurisdiction of organization or in which its Lending Office is located and pending as of the date of this Agreement (it being agreed that the Regulatory Changes contemplated by
(i) the frameworks published by the Basel Committee on Banking Supervision entitled “Basel III: A global regulatory framework for more resilient banks and banking systems” dated December 2010 (revised June 2011) and “Basel III:

  
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The Liquidity Coverage Ratio and liquidity risk monitoring tools,” dated January 2013 and (ii) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules,
guidelines or directives thereunder or issued in connection therewith, shall not be considered to have been proposed or pending as of the date of this Agreement); (b) if a claim hereunder in respect of an Increased Cost arises through
circumstances peculiar to the Liquidity Provider and that do not affect similarly organized commercial banking institutions in the same jurisdiction generally that are in compliance with the law, rule, regulation or interpretation giving rise to the
Regulatory Change relating to such Increased Cost; (c) if the Liquidity Provider shall fail to comply with its obligations under this Section 3.01 or (d) if the Liquidity Provider is not also seeking payment for similar increased
costs in other similarly situated transactions related to the airline industry. 
 Section 3.02    Reserved.

 Section 3.03    Withholding Taxes. (a) All payments made by the Borrower under this Agreement shall
be made without deduction or withholding for or on account of any Taxes, unless such deduction or withholding is required by law. If any Taxes are so required to be withheld or deducted from any amounts payable to the Liquidity Provider under this
Agreement, then, subject to Sections 2.07 and 2.09, the Borrower shall pay to the relevant authorities the full amount so required to be deducted or withheld and, without duplication of any rights created by Section 3.01, if such Taxes are
Covered Taxes, pay to the Liquidity Provider such additional amounts as shall be necessary to ensure that the net amount actually received by the Liquidity Provider (after deduction or withholding of all Covered Taxes) shall be equal to the full
amount that would have been received by the Liquidity Provider had no withholding or deduction of Covered Taxes been required. If any Covered Taxes for which the Borrower is obligated to pay any additional amounts to the Liquidity Provider pursuant
to the immediately preceding sentence were required by law to be withheld and were not withheld and deposited with the relevant authorities on a timely basis, the Borrower shall, after written demand from the Liquidity Provider therefor describing
in reasonable detail the subject of such demand, promptly pay to the Liquidity Provider such additional amounts equal to the amount of any such Covered Taxes asserted directly against the Liquidity Provider as a result of such failure to withhold,
together with any related penalties and interest. Within 30 days after the date of any such payment by the Borrower to the relevant authorities, the Borrower shall furnish to the Liquidity Provider the original or a certified copy of (or other
documentary evidence of) the payment of the Taxes applicable to such payment. The Liquidity Provider agrees to use commercially reasonable efforts (consistent with applicable legal and regulatory restrictions) to change the jurisdiction of its
Lending Office if making such change would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of the Liquidity Provider, be otherwise materially
disadvantageous to the Liquidity Provider. 
 If the Liquidity Provider receives a refund of any Taxes for which additional amounts were
paid by the Borrower pursuant to this Section 3.03, the Liquidity Provider shall pay to the Borrower (for deposit into the Collection Account) the amount of such refund (and any interest thereon), net of all related out-of-pocket expenses. The Borrower, upon the request of the Liquidity Provider, shall repay to the Liquidity Provider the amount paid over pursuant to this paragraph (plus
any penalties, interest or other charges imposed by the relevant governmental or 

  
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taxing authority) in the event that the Liquidity Provider is required to repay such refund to such governmental or taxing authority. Notwithstanding anything to the contrary in this paragraph,
in no event will the Liquidity Provider be required to pay any amount to the Borrower pursuant to this paragraph the payment of which would place the Liquidity Provider in a less favorable net after-Tax
position than the Liquidity Provider would have been in if the Tax subject to payment of additional amounts and giving rise to such refund had not been deducted, withheld or otherwise imposed and the additional amounts with respect to such Tax had
never been paid. This paragraph shall not be construed to require the Liquidity Provider to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any other Person. 

The Liquidity Provider will (i) provide (on its behalf and on behalf of any participant holding a Participation pursuant to
Section 7.08) to the Borrower (x) on or prior to the Effective Date two valid completed and executed copies of Internal Revenue Service Form W-9, W-8BEN-E or W-8ECI (whichever is applicable), including thereon a valid U.S. taxpayer identification number (or, with respect to any such participant, such other form
or documentation as may be applicable) covering all amounts receivable by it in connection with the transactions contemplated by the Operative Agreements and (y) thereafter from time to time such additional forms or documentation as may be
necessary to establish an available exemption from withholding of United States Tax on payments hereunder so that such forms or documentation are effective for all periods during which it is the Liquidity Provider and (ii) provide timely notice
to the Borrower if any such form or documentation is or becomes inaccurate. The Liquidity Provider shall deliver to the Borrower such other forms or documents as may be reasonably requested by the Borrower or required by applicable law to establish
that payments hereunder are exempt from or entitled to a reduced rate of Covered Taxes. 
 (a)    All payments
(including, without limitation, Advances) made by the Liquidity Provider under this Agreement shall be made free and clear of, and without reduction for or on account of, any Taxes. If any Taxes are required to be withheld or deducted from any
amounts payable to the Borrower under this Agreement, the Liquidity Provider shall (i) within the time prescribed therefor by applicable law pay to the appropriate governmental or taxing authority the full amount of any such Taxes (and any
additional Taxes in respect of the additional amounts payable under clause (ii) hereof) and make such reports or returns in connection therewith at the time or times and in the manner prescribed by applicable law, and (ii) pay to the
Borrower an additional amount which (after deduction of all such Taxes) will be sufficient to yield to the Borrower the full amount which would have been received by it had no such withholding or deduction been made. Within 30 days after the date of
each payment hereunder, the Liquidity Provider shall furnish to the Borrower the original or a certified copy of (or other documentary evidence of) the payment of the Taxes applicable to such payment. 

On or before the Closing Date, the Borrower shall provide the Liquidity Provider with its fully executed Internal Revenue Service Form W-9, evidencing a complete exemption from U.S. federal withholding tax and backup withholding. If any exemption from, or reduction in the rate of, any Taxes required to be borne by the Liquidity Provider under this
Section 3.03(b) is reasonably available to the Borrower without providing any information regarding the holders or beneficial owners of the Certificates, the Borrower shall deliver the Liquidity Provider such form

  
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or forms and such other evidence of the eligibility of the Borrower for such exemption or reductions (but without any requirement to provide any information regarding the holders or beneficial
owners of the Certificates) as the Liquidity Provider may reasonably identify to the Borrower as being required as a condition to exemption from, or reduction in the rate of, such Taxes. 

(b)    If a payment made hereunder to the Liquidity Provider would be subject to U.S. federal withholding Tax imposed by
FATCA if the Liquidity Provider were to fail to comply with the applicable reporting requirement of FATCA (including without limitation those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Liquidity Provider shall
deliver to the Borrower at the time or times prescribed by law and at such time or times reasonably requested by the Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and
such additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply with the Borrower’s obligations under FATCA and to determine whether the Liquidity Provider has complied with the Liquidity
Provider’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this paragraph, “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

Section 3.04    Payments. Subject to Sections 2.07 and 2.09, the Borrower shall make or cause to be made each
payment to the Liquidity Provider under this Agreement so as to cause the same to be received by the Liquidity Provider not later than 1:00 p.m. (New York City time) on the day when due. The Borrower shall make all such payments in Dollars, to
the Liquidity Provider in immediately available funds, by wire transfer to the account of Crédit Agricole Corporate and Investment Bank, acting through its New York Branch, at Crédit Agricole Corporate and Investment Bank, N.A., ABA
[***], Account No.: [***], Account Name: [***], Attention: [***], Reference to: Alaska 2020-1B EETC; or to such other U.S. bank account as the Liquidity Provider may from time to time direct the Subordination
Agent. 
 Section 3.05    Computations. All computations of interest based on the Base Rate shall be made on
the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on the LIBOR Rate shall be made on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest is payable. 
 Section 3.06    Payment on
Non-Business Days. Whenever any payment to be made hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and no
additional interest shall be due as a result (and if so made, shall be deemed to have been made when due). If any payment in respect of interest on an Advance is so deferred to the next succeeding Business Day, such deferral shall not delay the
commencement of the next Interest Period for such Advance (if such Advance is a LIBOR Advance) or reduce the number of days for which interest will be payable on such Advance on the next Interest Payment Date for such Advance. 

  
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 Section 3.07    Interest. (a) Subject to Sections 2.07
and 2.09, the Borrower shall pay, or shall cause to be paid, without duplication, interest on (i) the unpaid principal amount of each Advance from and including the date of such Advance (or, in the case of an Applied Provider Advance or Applied
Special Termination Advance, from and including the date on which the amount thereof was withdrawn from the Class B Cash Collateral Account to pay interest on the Class B Certificates) to but excluding the date such principal amount shall
be paid in full (or, in the case of an Applied Provider Advance or Applied Special Termination Advance, the date on which the Class B Cash Collateral Account is fully replenished in respect of such Advance) and (ii), to the extent permitted by
law, any other amount due hereunder (whether fees, commissions, expenses or other amounts or installments of interest on Advances or any such other amount) that is not paid when due (whether at stated maturity, by acceleration or otherwise)
from and including the due date thereof to but excluding the date such amount is paid in full, in each such case, at the interest rate per annum for each day that such amount remains overdue and unpaid equal to the Applicable Liquidity Rate for such
Advance or such other amount, as the case may be, as in effect for such day, but in no event in any case referred to in clause (i) or (ii) above at a rate per annum greater than the maximum rate permitted by applicable law; provided,
however, that, if at any time the otherwise applicable interest rate as set forth in this Section 3.07 shall exceed the maximum rate permitted by applicable law, then to the maximum extent permitted by applicable law any subsequent
reduction in such interest rate will not reduce the rate of interest payable pursuant to this Section 3.07 below the maximum rate permitted by applicable law until the total amount of interest accrued equals the absolute amount of interest that
would have accrued (without additional interest thereon) if such otherwise applicable interest rate as set forth in this Section 3.07 had at all relevant times been in effect. 

(a)    Each Advance (other than a Provider Advance or a Special Termination Advance) will be a Base Rate Advance for the
period from the date of its Borrowing to (but excluding) the third Business Day following the Liquidity Provider’s receipt of the Notice of Borrowing for such Advance. Thereafter, such Advance shall be a LIBOR Advance, and an Applied Provider
Advance and an Applied Special Termination Advance shall be a LIBOR Advance from the date of its withdrawal from the Class B Cash Collateral Account unless the Borrower elects otherwise. 

(b)    Each LIBOR Advance shall bear interest during each Interest Period at a rate per annum equal to the LIBOR Rate for
such Interest Period plus the Applicable Margin for such LIBOR Advance, payable in arrears on the last day of such Interest Period and, in the event of the payment of principal of such LIBOR Advance on a day other than such last day, on the date of
such payment (to the extent of interest accrued on the amount of principal repaid). 
 (c)    Each Base Rate Advance
shall bear interest at a rate per annum equal to the Base Rate plus the Applicable Margin for such Base Rate Advance, payable in arrears on each Regular Distribution Date and, in the event of the payment of principal of such Base Rate Advance on a
day other than a Regular Distribution Date, on the date of such payment (to the extent of interest accrued on the amount of principal repaid). 

(d)    Each outstanding Unapplied Non-Extension Advance, Unapplied Downgrade
Advance or Unapplied Special Termination Advance (each, an “Unapplied  

  
 21 

 
Advance”), as the case may be, shall bear interest, payable in arrears on each Regular Distribution Date, in an amount equal to (i) the Investment Earnings on the amounts on
deposit in the Class B Cash Collateral Account on account of such Unapplied Advance during the period beginning on the later of the date of deposit of such Unapplied Advance and the preceding Regular Distribution Date and ending on the last day
prior to such Regular Distribution Date, plus (ii) an amount equal to interest at the Applicable Margin on the amount of such Unapplied Advance during such period. 

(e)    Each amount not paid when due hereunder (whether fees, commissions, expenses or other amounts or installments of
interest on Advances but excluding Advances) shall bear interest, to the extent permitted by applicable law, at a rate per annum equal to the Base Rate plus 2.0% per annum until paid. 

(f)    If at any time, the Liquidity Provider shall have determined (which determination shall be conclusive and binding
upon the Borrower, absent manifest error) that, by reason of circumstances affecting the relevant interbank lending market generally (other than a Benchmark Replacement Event), the LIBOR Rate determined or to be determined for the next succeeding
Interest Period will not adequately and fairly reflect the cost to the Liquidity Provider (as conclusively certified by the Liquidity Provider, absent manifest error) of making or maintaining Advances, the Liquidity Provider shall give facsimile or
telephonic notice thereof (a “Rate Determination Notice”) to the Borrower and the Airlines. If such notice is given, then the outstanding principal amount of the LIBOR Advances shall be converted to Base Rate Advances
effective from the date of the Rate Determination Notice; provided that the Applicable Liquidity Rate in respect of such Base Rate Advances shall be increased by one percent (1.00%). The Liquidity Provider shall withdraw a Rate Determination
Notice given hereunder when the Liquidity Provider determines that the circumstances giving rise to such Rate Determination Notice no longer apply to the Liquidity Provider, and the Base Rate Advances shall be converted to LIBOR Advances effective
as of the first day of the next succeeding Interest Period after the date of such withdrawal. 
 (g)    Each change in
the Base Rate shall become effective immediately. The rates of interest specified in this Section 3.07 with respect to any Advance or other amount shall be referred to as the “Applicable Liquidity Rate”. 

Section 3.08    Replacement of Borrower. Subject to Section 5.02, from time to time and subject to the
successor Borrower’s meeting the eligibility requirements set forth in Section 6.09 of the Intercreditor Agreement applicable to the Subordination Agent, upon the effective date and time specified in a written and completed Notice of
Replacement Subordination Agent in substantially the form of Annex VIII (a “Notice of Replacement Subordination Agent”) delivered to the Liquidity Provider by the then Borrower, the successor Borrower designated
therein shall become the Borrower for all purposes hereunder. 
 Section 3.09    Funding Loss
Indemnification. The Borrower shall pay to the Liquidity Provider, upon the request of the Liquidity Provider, such amount or amounts as shall be sufficient (in the reasonable opinion of the Liquidity Provider) to compensate it for any loss,
cost or expense incurred by reason of the liquidation or redeployment of deposits or other funds 

  
 22 

 
acquired by the Liquidity Provider to fund or maintain any LIBOR Advance (but excluding loss of the Applicable Margin or anticipated profits) incurred as a result of: 

(1)    Any repayment of a LIBOR Advance on a date other than the last day of the Interest Period for such
Advance; or 
 (2)    Any failure by the Borrower to borrow a LIBOR Advance on the date for borrowing
specified in the relevant notice under Section 2.02. 
 Section 3.10    Illegality. Notwithstanding any
other provision in this Agreement, if any change in any law, rule or regulation applicable to or binding on the Liquidity Provider, or any change in the interpretation or administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or compliance by the Liquidity Provider with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency
shall make it unlawful or impossible for the Liquidity Provider to maintain or fund its LIBOR Advances, then upon notice to the Borrower and the Airlines by the Liquidity Provider, the outstanding principal amount of the LIBOR Advances shall be
converted to Base Rate Advances (a) immediately upon demand of the Liquidity Provider, if such change or compliance with such request, in the reasonable judgment of the Liquidity Provider, requires immediate conversion; or (b) at the
expiration of the last Interest Period to expire before the effective date of any such change or request. The Liquidity Provider will notify the Borrower and the Airlines as promptly as practicable of any event that will or to its knowledge is
reasonably likely to lead to the conversion of LIBOR Advances to Base Rate Advances under this Section 3.10; provided that a failure by the Liquidity Provider to notify the Borrower or the Airlines of an event that is reasonably likely
to lead to such a conversion prior to the time that it is determined that such event will lead to such a conversion shall not prejudice the rights of the Liquidity Provider under this Section 3.10. The Liquidity Provider agrees to investigate
all commercially reasonable alternatives for avoiding the need for such conversion, including, without limitation, designating a different Lending Office, if such designation or other action would avoid the need to convert such LIBOR Advances to
Base Rate Advances; provided that the foregoing shall not obligate the Liquidity Provider to take any action that would, in its reasonable judgment, cause the Liquidity Provider to incur any material loss or cost, unless the Borrower or the
Airlines agree to reimburse or indemnify the Liquidity Provider therefor. If no such designation or other action is effected, or, if effected, fails to avoid the need for conversion of the LIBOR Advances to Base Rate Advances, the Airlines may
arrange for a Replacement Liquidity Facility in accordance with Section 3.05(e) of the Intercreditor Agreement. 
 ARTICLE IV 

CONDITIONS PRECEDENT 

Section 4.01    Conditions Precedent to Effectiveness of Section 2.01. Section 2.01 of
this Agreement shall become effective on and as of the first date (the “Effective Date”) on which the following conditions precedent have been satisfied (or waived by the appropriate party or parties): 

(a)    The Liquidity Provider shall have received on or before the Closing Date each of the following, and in the case of
each document delivered pursuant to paragraphs (i), (ii) and (iii), each in form and substance satisfactory to the Liquidity Provider: 

(i)    This Agreement and the Fee Letter duly executed on behalf of the Borrower and, in the case of the
Fee Letter, the Airlines; 

  
 23 

 (ii)    The Intercreditor Agreement duly executed on
behalf of each of the parties thereto (other than the Liquidity Provider); 
 (iii)    Fully executed
copies of each of the Operative Agreements executed and delivered on or before the Closing Date (other than this Agreement, the Fee Letter and the Intercreditor Agreement); 

(iv)    A copy of the Prospectus Supplement and specimen copies of the Class B Certificates; 

(v)    An executed copy of each opinion (other than the negative assurance letters of
O’Melveny & Myers LLP and Debevoise & Plimpton LLP, special counsel to the Airlines, and the opinion and the negative assurance letter of Milbank LLP, special counsel to the Initial Purchasers) delivered on the Closing Date
pursuant to the Certificate Purchase Agreement (in the case of each such opinion, either addressed to the Liquidity Provider or accompanied by a letter from the counsel rendering such opinion to the effect that the Liquidity Provider is entitled to
rely on such opinion as of its date as if it were addressed to the Liquidity Provider);  

(vi)    An executed copy of each document, instrument, certificate and opinion delivered on or before the
Closing Date pursuant to the Class B Trust Agreement, the Intercreditor Agreement and the other Operative Agreements (in the case of each such opinion, either addressed to the Liquidity Provider or accompanied by a letter from the counsel
rendering such opinion to the effect that the Liquidity Provider is entitled to rely on such opinion as of its date as if it were addressed to the Liquidity Provider); 

(vii)    An agreement from the Airlines, pursuant to which (x) each Airline agrees to provide copies
of the Parent’s quarterly financial statements and audited annual financial statements to the Liquidity Provider (which such Airline may provide in an electronic format by electronic mail or making the same available over the internet) and
(y) each Airline agrees to allow the Liquidity Provider to discuss the transactions contemplated by the Operative Agreements with officers and employees of such Airline; and 

(viii)    Such documentation as the Liquidity Provider may reasonably request five (5) or more
Business Days prior to the Closing Date in order to satisfy its “know your customer” policies. 

  
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 (b)    On and as of the Effective Date no event shall have occurred and
be continuing, or would result from the entering into of this Agreement or the making of any Advance, which constitutes a Liquidity Event of Default. 

(c)    The Liquidity Provider shall have received payment in full of the fees and other sums required to be paid to or for
the account of the Liquidity Provider on or prior to the Effective Date pursuant to the Fee Letter. 
 (d)    All
conditions precedent to the issuance of the Certificates under the Trust Agreements shall have been satisfied or waived, all conditions precedent to the effectiveness of the other Liquidity Facilities shall have been satisfied or waived, and all
conditions precedent to the purchase of the Class B Certificates by the Certificate Purchasers under the Certificate Purchase Agreement shall have been satisfied (unless any of such conditions precedent under the Certificate Purchase Agreement
shall have been waived by the Initial Purchasers). 
 (e)    The Borrower and the Airlines shall have received a
certificate, dated the Effective Date signed by a duly authorized representative of the Liquidity Provider, certifying that the Effective Date has occurred. 

Section 4.02    Conditions Precedent to Borrowing. The obligation of the Liquidity Provider to make an Advance
on the occasion of each Borrowing shall be subject to the conditions precedent that the Effective Date shall have occurred and, prior to the time of such Borrowing, the Borrower shall have delivered a Notice of Borrowing which conforms to the terms
and conditions of this Agreement. 
 Section 4.03    Representations and Warranties. The representations and
warranties of the Borrower as Subordination Agent in Sections 5.01(a), (b), (c), and (d) of the Participation Agreements shall be deemed to be incorporated into this Agreement as if set out in full herein and as if such representations and
warranties were made by the Borrower to the Liquidity Provider. 
 ARTICLE V 

COVENANTS 

Section 5.01    Affirmative Covenants of the Borrower. So long as any Advance shall remain unpaid or the
Liquidity Provider shall have any Maximum Available Commitment hereunder or the Borrower shall have any obligation to pay any amount to the Liquidity Provider hereunder, the Borrower will, unless the Liquidity Provider shall otherwise consent in
writing: 
 (a)    Performance of Agreements. Subject to Sections 2.07 and 2.09, punctually pay or cause to be
paid all amounts payable by it under this Agreement and the Intercreditor Agreement and observe and perform in all material respects the conditions, covenants and requirements applicable to it contained in this Agreement and the Intercreditor
Agreement; 

  
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 (b)    Reporting Requirements. Furnish to the Liquidity Provider
with reasonable promptness, such other information and data with respect to the transactions contemplated by the Operative Agreements as from time to time may be reasonably requested by the Liquidity Provider; and permit the Liquidity Provider, upon
reasonable notice, to inspect the Borrower’s books and records with respect to such transactions and to meet with officers and employees of the Borrower to discuss such transactions; and 

(c)    Certain Operative Agreements. Furnish to the Liquidity Provider, with reasonable promptness, copies of such
Operative Agreements entered into after the date hereof as from time to time may be reasonably requested by the Liquidity Provider. 

Section 5.02    Negative Covenants of the Borrower. Subject to the first and fourth paragraphs of
Section 7.01(a) of the Intercreditor Agreement and Section 7.01(b) of the Intercreditor Agreement, so long as any Advance shall remain unpaid or the Liquidity Provider shall have any Maximum Available Commitment hereunder or the Borrower
shall have any obligation to pay any amount to the Liquidity Provider hereunder, the Borrower will not appoint or permit or suffer to be appointed any successor Borrower without the prior written consent of the Liquidity Provider, which consent
shall not be unreasonably withheld or delayed. 
 ARTICLE VI 

LIQUIDITY EVENTS OF DEFAULT AND SPECIAL TERMINATION 

Section 6.01    Liquidity Events of Default. (a) If any Liquidity Event of Default has occurred and is
continuing and there is a Performing Note Deficiency, the Liquidity Provider may, in its discretion, deliver to the Borrower and the Airlines a Termination Notice, the effect of which shall be to cause (i) the Termination Date to occur at the
close of business on the fifth Business Day after the date on which such Termination Notice is received by the Borrower and the Airlines, (ii) the Borrower to promptly request, and the Liquidity Provider to promptly make, a Final Advance in
accordance with Section 2.02(c) hereof and Section 3.05(i) of the Intercreditor Agreement, (iii) all other outstanding Advances to be automatically converted into Final Advances for purposes of determining the Applicable Liquidity
Rate for interest payable thereon and (iv) subject to Sections 2.07 and 2.09, all Advances, any accrued interest thereon and any other amounts outstanding hereunder to become immediately due and payable to the Liquidity Provider. 

(a)    If the aggregate Pool Balance of the Class B Certificates is greater than the aggregate outstanding principal
amount of the Series B Equipment Notes (other than any Series B Equipment Notes previously sold by the Borrower or with respect to which the Aircraft related to such Series B Equipment Notes has been disposed of by the Loan Trustee) at any time
during the 18-month period ending on August 15, 2025, the Liquidity Provider may, in its discretion, deliver to the Borrower and the Airlines a Special Termination Notice, the effect of which shall be to
cause (i) the Termination Date to occur at the close of business on the fifth Business Day after the date on which such Special Termination Notice is received by the Borrower and the Airlines, (ii) the Borrower to promptly request, and the
Liquidity Provider to promptly make, a Special Termination Advance in accordance with Section 2.02(d) hereof and Section 3.05(k) of 

  
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the Intercreditor Agreement, and (iii) subject to Sections 2.07 and 2.09, all Advances (including, without limitation, any Unapplied Provider Advance), to be automatically treated as
Special Termination Advances, subject to Section 6.01(a). 
 ARTICLE VII 

MISCELLANEOUS 

Section 7.01    No Oral Modifications or Continuing Waivers. No terms or provisions of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the Borrower and the Liquidity Provider and any other Person whose consent is required pursuant to this Agreement; provided that no such change
or other action shall affect the payment obligations of any Airline or the rights of any Airline without such Airline’s prior written consent; and any waiver of the terms hereof shall be effective only in the specific instance and for the
specific purpose given. 
 Section 7.02    Notices. Unless otherwise expressly specified or permitted by the
terms hereof, all notices, requests, demands, authorizations, directions, consents, waivers or documents required or permitted under the terms and provisions of this Agreement shall be in English and in writing, and given by United States registered
or certified mail, courier service or facsimile, and any such notice shall be effective when delivered (or, if delivered by facsimile, upon completion of transmission and confirmation by the sender (by a telephone call to a representative of the
recipient or by machine confirmation) that such transmission was received) addressed as follows: 
 If to the Borrower or the Subordination
Agent, to: 
 U.S. Bank Trust National Association 

Seattle Tower 
 1420 Fifth Avenue

 Seattle, WA 98101 
 PD-WA-T7CT 
 Attention: [***] 

Ref.: Alaska Air 2020-1 EETC 

Telephone: [***] 
 Telecopy: [***]

 If to the Liquidity Provider, to: 

Crédit Agricole Corporate and Investment Bank, acting 

through its New York Branch 
 1301
Avenue of the Americas 
 New York, NY 10019 

Attention: [***] 
 Telephone:
[***] 
 Fax: [***] 
 Email:
[***] 

  
 27 

 Any party, by notice to the other party hereto, may designate additional or different
addresses for subsequent notices or communications. Whenever the words “notice” or “notify” or similar words are used herein, they mean the provision of formal notice as set forth in this Section 7.02. 

Section 7.03    No Waiver; Remedies. No failure on the part of the Liquidity Provider to exercise, and no
delay in exercising, any right under this Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

Section 7.04    Further Assurances. The Borrower agrees to do such further acts and things and to execute and
deliver to the Liquidity Provider such additional assignments, agreements, powers and instruments as the Liquidity Provider may reasonably require or deem advisable to carry into effect the purposes of this Agreement and the other Operative
Agreements or to better assure and confirm unto the Liquidity Provider its rights, powers and remedies hereunder and under the other Operative Agreements. 

Section 7.05    Indemnification; Survival of Certain Provisions. The Liquidity Provider shall be indemnified
hereunder to the extent and in the manner described in Section 4.02 of the Participation Agreements. In addition, the Borrower agrees to indemnify, protect, defend and hold harmless each Liquidity Indemnitee from and against all Expenses of any
kind or nature whatsoever (other than any Expenses of the nature described in Sections 3.01, 3.03, 3.09 or 7.07 or in the Fee Letter (regardless of whether indemnified against pursuant to said Sections or in such Fee Letter)), that may be imposed on
or incurred by such Liquidity Indemnitee, in any way relating to, resulting from, or arising out of or in connection with, any action, suit or proceeding by any third party against such Liquidity Indemnitee and relating to this Agreement, the Fee
Letter, the Intercreditor Agreement or any Participation Agreement; provided, however, that the Borrower shall not be required to indemnify, protect, defend and hold harmless any Liquidity Indemnitee in respect of any Expense of such
Liquidity Indemnitee to the extent such Expense is (i) attributable to the gross negligence or willful misconduct of such Liquidity Indemnitee or any other Liquidity Indemnitee, (ii) an ordinary and usual operating overhead expense,
(iii) attributable to the failure by such Liquidity Indemnitee or any other Liquidity Indemnitee to perform or observe any agreement, covenant or condition on its part to be performed or observed in this Agreement, the Intercreditor Agreement,
the Fee Letter or any other Operative Agreement to which it is a party or (iv) otherwise excluded from the indemnification provisions contained in Section 4.02 of the Participation Agreements. The provisions of Sections 3.01, 3.03, 3.09,
7.05 and 7.07 and the indemnities contained in Section 4.02 of the Participation Agreements shall survive the termination of this Agreement. 

Section 7.06    Liability of the Liquidity Provider. (a) Neither the Liquidity Provider nor any of its
officers, employees or directors shall be liable or responsible for: (i) the use which may be made of the Advances or any acts or omissions of the Borrower or any beneficiary or 

  
 28 

 
transferee in connection therewith; (ii) the validity, sufficiency or genuineness of documents, or of any endorsement thereon, even if such documents should prove to be in any or all
respects invalid, insufficient, fraudulent or forged; or (iii) the making of Advances by the Liquidity Provider against delivery of a Notice of Borrowing and other documents which do not comply with the terms hereof; provided,
however, that the Borrower shall have a claim against the Liquidity Provider, and the Liquidity Provider shall be liable to the Borrower, to the extent of any damages suffered by the Borrower that were the result of (A) the Liquidity
Provider’s willful misconduct or gross negligence in determining whether documents presented hereunder comply with the terms hereof or (B) any breach by the Liquidity Provider of any of the terms of this Agreement or the Intercreditor
Agreement, including, but not limited to, the Liquidity Provider’s failure to make lawful payment hereunder after the delivery to it by the Borrower of a Notice of Borrowing complying with the terms and conditions hereof. In no event, however,
shall the Liquidity Provider be liable on any theory of liability for any special, indirect, consequential or punitive damages (including, without limitation, loss of profits, business or anticipated savings). 

(a)    Neither the Liquidity Provider nor any of its officers, employees or directors or affiliates shall be liable or
responsible in any respect for (i) any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with this Agreement or any Notice of Borrowing delivered hereunder
or (ii) any action, inaction or omission which may be taken by it in good faith, absent willful misconduct or gross negligence (in which event the extent of the Liquidity Provider’s potential liability to the Borrower shall be limited as
set forth in the immediately preceding paragraph), in connection with this Agreement or any Notice of Borrowing. 

Section 7.07    Certain Costs and Expenses. The Borrower agrees promptly to pay, or cause to be paid,
(a) the reasonable fees, expenses and disbursements of Milbank LLP, special counsel for the Liquidity Provider, in connection with the preparation, negotiation, execution, delivery, filing and recording of the Operative Agreements, any waiver
or consent thereunder or any amendment thereof, (b) if a Liquidity Event of Default occurs, all out-of-pocket expenses incurred by the Liquidity Provider, including
reasonable fees and disbursements of counsel, in connection with such Liquidity Event of Default and any collection, bankruptcy, insolvency and other enforcement proceedings in connection therewith and (c) on demand, all reasonable costs and
expenses (including reasonable fees and disbursements of counsel) incurred by the Liquidity Provider in connection with any modification or amendment of, or supplement to, this Agreement or any other Operative Agreement (or such other documents
which may be delivered in connection herewith or therewith) (whether or not any of the same shall become effective) requested by the Airlines, unless such costs or expenses arise as a result of the negligence of the Liquidity Provider or any breach
by the Liquidity Provider of its obligations under this Agreement or any other Operative Agreement. In addition, the Borrower shall pay any and all recording, stamp and other similar Taxes and fees payable or determined to be payable in the United
States in connection with the execution, delivery, filing and recording of this Agreement, any other Operative Agreement and such other documents, and agrees to save the Liquidity Provider harmless from and against any and all liabilities with
respect to or resulting from any delay in paying or omission to pay such Taxes or fees. 

  
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 Section 7.08    Binding Effect; Participations.
(a) This Agreement shall be binding upon and inure to the benefit of the Borrower and the Liquidity Provider and their respective successors and permitted assigns, except that neither the Liquidity Provider (except as otherwise provided in this
Section 7.08) nor (except as contemplated by Section 3.08) the Borrower shall have the right to assign, pledge or otherwise transfer its rights or obligations hereunder or any interest herein, subject to the Liquidity Provider’s right
to grant Participations pursuant to Section 7.08(b). 
 (a)    The Liquidity Provider agrees that it will not grant
any participation (including, without limitation, a “risk participation”) (any such participation, a “Participation”) in or to all or a portion of its rights and obligations hereunder or under the other Operative
Agreements, unless all of the following conditions are satisfied: (i) such Participation is to a Permitted Transferee, (ii) such Participation is made in accordance with all applicable laws, including, without limitation, the Securities
Act of 1933, as amended, the Trust Indenture Act of 1939, as amended, any laws or regulations imposing U.S. economic sanctions measures or any orders or licenses issued thereunder and any other applicable laws relating to the transfer of similar
interests and (iii) such Participation shall not be made under circumstances that require registration under the Securities Act of 1933, as amended, or qualification of any indenture under the Trust Indenture Act of 1939, as amended.
Notwithstanding any such Participation, the Liquidity Provider agrees that (1) the Liquidity Provider’s obligations under the Operative Agreements shall remain unchanged, and such participant shall have no rights or benefits as against the
Parent, the Airlines or the Borrower or under any Operative Agreement, (2) the Liquidity Provider shall remain solely responsible to the other parties to the Operative Agreements for the performance of such obligations, (3) the Liquidity
Provider shall remain the maker of any Advances, and the other parties to the Operative Agreements shall continue to deal solely and directly with the Liquidity Provider in connection with the Advances and the Liquidity Provider’s rights and
obligations under the Operative Agreements, (4) the Liquidity Provider shall be solely responsible for any withholding Taxes or any filing or reporting requirements relating to such Participation and shall hold the Borrower, the Parent and the
Airlines and their respective successors, permitted assigns, affiliates, agents and servants harmless against the same and (5) none of the Parent, the Airlines or the Borrower shall be required to pay to the Liquidity Provider any amount under
Section 3.01 or Section 3.03 greater than it would have been required to pay had there not been any grant of a Participation by the Liquidity Provider. The Liquidity Provider may, in connection with any Participation or proposed
Participation pursuant to this Section 7.08(b), disclose to the participant or proposed participant any information relating to the Operative Agreements or to the parties thereto furnished to the Liquidity Provider thereunder or in connection
therewith and permitted to be disclosed by the Liquidity Provider; provided, however, that prior to any such disclosure, the participant or proposed participant shall agree in writing for the express benefit of the Borrower and the
Airlines to preserve the confidentiality of any confidential information included therein (subject to customary exceptions). 
 The Borrower
acknowledges and agrees that the Liquidity Provider’s source of funds may derive in part from its participants. Accordingly, in determining amounts due by the Borrower to the Liquidity Provider pursuant to Section 3.01 and
Section 3.03 of this Agreement, references in this Agreement to determinations, reserve, liquidity and capital adequacy 

  
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requirements, increased costs, reduced receipts, additional amounts due pursuant to Section 3.03 as they pertain to the Liquidity Provider shall be deemed also to include those of each of
its participants that are commercial banking institutions and of whose participation the Borrower has been notified, in each case up to the maximum amount that would have been incurred by or attributable to the Liquidity Provider directly had there
not been any grant of a Participation by the Liquidity Provider, and references to the Liquidity Provider therein and in related definitions shall be treated as references to such participants where applicable; provided that in any event, none of
the Parent, the Airlines or the Borrower shall be required to pay any amount under Section 3.01 or Section 3.03 greater than it would have been required to pay had there not been any grant of a Participation by the Liquidity Provider. 

The Liquidity Provider shall, acting solely for this purpose as a non-fiduciary agent of the Borrower,
maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest under this Agreement (the “Participant Register”);
provided that the Liquidity Provider shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant’s interest in any
commitments, loans or its other obligations) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under
Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and the Liquidity Provider shall treat each Person whose
name is recorded in the Participant Register as the owner of such Participation for all purposes of this Agreement notwithstanding any notice to the contrary. 

(b)    Notwithstanding the other provisions of this Section 7.08, the Liquidity Provider may assign and pledge all or
any portion of the Advances owing to it to any Federal Reserve Bank or the United States Treasury as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve System and any Operating Circular issued by such
Federal Reserve Bank; provided that any payment in respect of such assigned Advances made by the Borrower to the Liquidity Provider in accordance with the terms of this Agreement shall satisfy the Borrower’s obligations hereunder in
respect of such assigned Advance to the extent of such payment. No such assignment shall release the Liquidity Provider from its obligations hereunder. 

Section 7.09    Severability. To the extent permitted by applicable law, any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 7.10    Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 

  
 31 

 Section 7.11    Submission to Jurisdiction; Waiver of Jury
Trial; Waiver of Immunity. (a) Each of the parties hereto, to the extent it may do so under applicable law, for purposes hereof hereby (i) irrevocably submits itself to the non-exclusive
jurisdiction of the courts of the State of New York sitting in the City of New York and to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York for the
purposes of any suit, action or other proceeding arising out of this Agreement, the subject matter hereof or any of the transactions contemplated hereby brought by any party or parties hereto or thereto, or their successors or permitted assigns,
(ii) waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or
proceeding is improper or that this Agreement or the subject matter hereof or any of the transactions contemplated hereby may not be enforced in or by such courts, (iii) agrees that service of process in any such suit, action or proceeding may
be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to each party hereto at its address set forth in Section 7.02 hereof, or at such other address of which each
party shall have been notified pursuant thereto and (iv) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law. 

(a)    THE BORROWER AND THE LIQUIDITY PROVIDER EACH HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED, including, without limitation, contract claims, tort
claims, breach of duty claims and all other common law and statutory claims. The Borrower and the Liquidity Provider each warrant and represent that it has reviewed this waiver with its legal counsel, and that it knowingly and voluntarily waives its
jury trial rights following consultation with such legal counsel. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THIS WAIVER IS IRREVOCABLE, AND CANNOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. 
 (b)    To the extent that the Liquidity Provider or any of
its properties has or may hereafter acquire any right of immunity, whether characterized as sovereign immunity or otherwise, and whether under the United States Foreign Sovereign Immunities Act of 1976 (or any successor legislation) or otherwise,
from any legal proceedings, whether in the United States or elsewhere, to enforce or collect upon this Agreement, including, without limitation, immunity from suit or service of process, immunity from jurisdiction or judgment of any court or
tribunal or execution of a judgment, or immunity of any of its property from attachment prior to any entry of judgment, or from attachment in aid of execution upon a judgment, the Liquidity Provider hereby irrevocably and expressly waives any such
immunity, and agrees not to assert any such right or claim in any such proceeding, whether in the United States or elsewhere. 

Section 7.12    Counterparts. This Agreement may be executed in any number of counterparts (and each party
shall not be required to execute the same counterpart). Each counterpart of this Agreement including a signature page or pages executed by each of the parties hereto shall be an original counterpart of this Agreement, but all of such counterparts
together shall constitute one instrument. 

  
 32 

 Section 7.13    Entirety. This Agreement and the
Intercreditor Agreement constitute the entire agreement of the parties hereto with respect to the subject matter hereof and supersede all prior understandings and agreements of such parties. 

Section 7.14    Headings. The headings of the various Articles and Sections herein and in the Table of
Contents hereto are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 

Section 7.15    Liquidity Provider’s Obligation to Make Advances. EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT, THE OBLIGATIONS OF THE LIQUIDITY PROVIDER TO MAKE ADVANCES HEREUNDER, AND THE BORROWER’S RIGHTS TO DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER, SHALL BE ABSOLUTE, UNCONDITIONAL AND
IRREVOCABLE, AND SHALL BE PAID OR PERFORMED, IN EACH CASE STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT. 

Section 7.16    Patriot Act. The Liquidity Provider hereby notifies the Borrower that pursuant to the
requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”) it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and other information that will allow the Liquidity Provider to identify the Borrower in accordance with such Act. 

Section 7.17    Acknowledgment and Consent to Bail-In of EEA Financial
Institutions. Notwithstanding anything to the contrary in this Agreement or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising
under this Agreement, to the extent such liability is unsecured, may be subject to Write-Down and Conversion Powers and agrees and consents to, and acknowledges and agrees to be bound by: 

(a)    the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities
arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and 
 (b)    the
effects of any Bail-In Action on any such liability, including, if applicable: 

(i)    a reduction in full or in part or cancellation of any such liability; 

(ii)    a conversion of all, or a portion of, such liability into shares or other instruments of ownership
in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with
respect to any such liability under this Agreement; or 

  
 33 

 (iii)    the variation of the terms of such liability in
connection with the exercise of Write-Down and Conversion Powers. 
 Section 7.18    Head Office
Obligations. The Liquidity Provider is Crédit Agricole Corporate and Investment Bank, acting through its New York Branch. The Liquidity Provider hereby agrees that, notwithstanding the place of booking or its jurisdiction of incorporation
or organization, the obligations of the Liquidity Provider hereunder are also the obligations of the head office of Crédit Agricole Corporate and Investment Bank in Paris, France (the “Head Office”). Accordingly, any
beneficiary of this Agreement will be able to proceed directly against the Head Office, if the Liquidity Provider defaults in its obligations to such beneficiary under this Agreement. 

  
 34 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first set forth above. 
  

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity but solely as Subordination Agent, agent and trustee for the Class B Trust, as Borrower
		
	By:	 	 /s/ Richard Krupske

		 	Name: Richard Krupske
		 	Title:   Assistant Vice President
	
	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, ACTING THROUGH ITS NEW YORK BRANCH, as Liquidity Provider
		
	By:	 	 /s/ Brian Bolotin

		 	Name: Brian Bolotin
		 	Title:   Managing Director
		
	By:	 	 /s/ Elisa Lajonchere

		 	Name: Elisa Lajonchere
		 	Title:   Managing Director

 Signature Page 

 ANNEX I to 

REVOLVING CREDIT AGREEMENT 

FORM OF INTEREST ADVANCE NOTICE OF BORROWING 

INTEREST ADVANCE NOTICE OF BORROWING 

The undersigned, a duly authorized signatory of the undersigned borrower (the “Borrower”), hereby certifies to
Crédit Agricole Corporate and Investment Bank, acting through its New York Branch (the “Liquidity Provider”), with reference to the Revolving Credit Agreement (2020-1B), dated as
of July 2, 2020, between the Borrower and the Liquidity Provider (the “Liquidity Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined or referenced), that: 

(1)    The Borrower is the Subordination Agent under the Intercreditor Agreement. 

(2)    The Borrower is delivering this Notice of Borrowing for the making of an Interest Advance by the
Liquidity Provider to be used for the payment of the interest on the Class B Certificates which is payable on             ,
         (the “Distribution Date”) in accordance with the terms and provisions of the Class B Trust Agreement and the Class B Certificates, which Advance is requested
to be made on             ,         . The Interest Advance should be remitted to [insert wire and account details]. 

(3)    The amount of the Interest Advance requested hereby (i) is
$            , to be applied in respect of the payment of the interest which is due and payable on the Class B Certificates on the Distribution Date, (ii) does not include
any amount with respect to the payment of principal of, or premium on, the Class B Certificates or principal of, interest or premium on the Class A Certificates or any Additional Certificates, if issued, (iii) was computed in
accordance with the provisions of the Class B Certificates, the Class B Trust Agreement and the Intercreditor Agreement (a copy of which computation is attached hereto as Schedule I), (iv) does not exceed the Maximum Available
Commitment on the date hereof and (v) has not been and is not the subject of a prior or contemporaneous Notice of Borrowing. 

(4)    Upon receipt by or on behalf of the Borrower of the amount requested hereby, (a) the Borrower
will apply the same in accordance with the terms of Section 3.05(b) of the Intercreditor Agreement, (b) no portion of such amount shall be applied by the Borrower for any other purpose and (c) no portion of such amount until so
applied shall be commingled with other funds held by the Borrower. 
 The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, the making of the Interest Advance as requested by this Notice of Borrowing shall automatically reduce, subject to reinstatement in accordance with the terms of the Liquidity Agreement, the Maximum Available Commitment by an amount equal
to the amount of the Interest Advance requested to be made hereby as set forth in clause (i) of paragraph (3) of this Notice of Borrowing and such reduction shall automatically result in corresponding reductions in the amounts available to
be borrowed pursuant to a subsequent Advance. 

 IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice of Borrowing as of
the          day of             ,         . 

 

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent and as Borrower
		
	 By:
	 	  

		 	 Name:

		 	 Title:

  
 I-2 

 SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING 

[Insert Copy of Computations in accordance with Interest Advance Notice of Borrowing] 

  
 I-3 

 ANNEX II to 

REVOLVING CREDIT AGREEMENT 

FORM OF NON-EXTENSION ADVANCE NOTICE OF BORROWING 

NON-EXTENSION ADVANCE NOTICE OF BORROWING 

The undersigned, a duly authorized signatory of the undersigned subordination agent (the “Borrower”), hereby certifies
to Crédit Agricole Corporate and Investment Bank, acting through its New York Branch (the “Liquidity Provider”), with reference to the Revolving Credit Agreement (2020-1B), dated
as of July 2, 2020, between the Borrower and the Liquidity Provider (the “Liquidity Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined or referenced), that: 

(1)    The Borrower is the Subordination Agent under the Intercreditor Agreement. 

(2)    The Borrower is delivering this Notice of Borrowing for the making of the
Non-Extension Advance by the Liquidity Provider to be used for the funding of the Class B Cash Collateral Account in accordance with Section 3.05(d) of the Intercreditor Agreement, which Advance is
requested to be made on             ,         . The Non-Extension Advance should be remitted to
[insert wire and account details]. 
 (3)    The amount of the Non-Extension
Advance requested hereby (i) is $            , which equals the Maximum Available Commitment on the date hereof and is to be applied in respect of the funding of the
Class B Cash Collateral Account in accordance with Sections 3.05(d) and 3.05(f) of the Intercreditor Agreement, (ii) does not include any amount with respect to the payment of the principal of, or premium on, the Class B Certificates,
or principal of, or interest or premium on, the Class A Certificates or any Additional Certificates, if issued, (iii) was computed in accordance with the provisions of the Class B Certificates, the Liquidity Agreement, the
Class B Trust Agreement and the Intercreditor Agreement (a copy of which computation is attached hereto as Schedule I) and (iv) has not been and is not the subject of a prior or contemporaneous Notice of Borrowing under the Liquidity
Agreement. 
 (4)    Upon receipt by or on behalf of the Borrower of the amount requested hereby, (a) the Borrower
will deposit such amount in the Class B Cash Collateral Account and apply the same in accordance with the terms of Sections 3.05(d) and 3.05(f) of the Intercreditor Agreement, (b) no portion of such amount shall be applied by the Borrower
for any other purpose and (c) no portion of such amount until so applied shall be commingled with other funds held by the Borrower. 

The Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A) the making of the
Non-Extension Advance as requested by this Notice of Borrowing shall automatically and irrevocably terminate the obligation of the Liquidity Provider to make further Advances under the Liquidity Agreement and
(B) following the making by the Liquidity Provider of the Non-Extension Advance requested by this Notice of Borrowing, the Borrower shall not be entitled to request any further Advances under the
Liquidity Agreement. 

 IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice of Borrowing as of
the          day of             ,        . 

 

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent and as Borrower
		
	By:	 	  

		 	Name:
		 	Title:

  
 II-2 

 SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF
BORROWING 
 [Insert Copy of computations in accordance with Non-Extension Advance Notice of
Borrowing] 

  
 II-3 

 ANNEX III to 

REVOLVING CREDIT AGREEMENT 

FORM OF DOWNGRADE ADVANCE NOTICE OF BORROWING 

DOWNGRADE ADVANCE NOTICE OF BORROWING 

The undersigned, a duly authorized signatory of the undersigned subordination agent (the “Borrower”), hereby certifies
to Crédit Agricole Corporate and Investment Bank, acting through its New York Branch (the “Liquidity Provider”), with reference to the Revolving Credit Agreement (2020-1B), dated
as of July 2, 2020, between the Borrower and the Liquidity Provider (the “Liquidity Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined or referenced), that: 

(1)    The Borrower is the Subordination Agent under the Intercreditor Agreement. 

(2)    The Borrower is delivering this Notice of Borrowing for the making of the Downgrade Advance by the Liquidity
Provider to be used for the funding of the Class B Cash Collateral Account in accordance with Section 3.05(c)(iii) of the Intercreditor Agreement by reason of the Liquidity Facility provided under the Liquidity Agreement becoming a
Downgraded Facility which has not been replaced by a Replacement Liquidity Facility, which Advance is requested to be made on             ,
        . The Downgrade Advance should be remitted to [insert wire and account details]. 

(3)    The amount of the Downgrade Advance requested hereby (i) is
$            , which equals the Maximum Available Commitment on the date hereof and is to be applied in respect of the funding of the Class B Cash Collateral Account in
accordance with Sections 3.05(c) and 3.05(f) of the Intercreditor Agreement, (ii) does not include any amount with respect to the payment of the principal of, or premium on, the Class B Certificates, or principal of, or interest or premium
on, the Class A Certificates or any Additional Certificates, if issued, (iii) was computed in accordance with the provisions of the Class B Certificates, the Class B Trust Agreement and the Intercreditor Agreement (a copy of
which computation is attached hereto as Schedule I) and (iv) has not been and is not the subject of a prior or contemporaneous Notice of Borrowing under the Liquidity Agreement. 

(4)    Upon receipt by or on behalf of the Borrower of the amount requested hereby, (a) the Borrower will deposit
such amount in the Class B Cash Collateral Account and apply the same in accordance with the terms of Sections 3.05(c) and 3.05(f) of the Intercreditor Agreement, (b) no portion of such amount shall be applied by the Borrower for any other
purpose and (c) no portion of such amount until so applied shall be commingled with other funds held by the Borrower. 
 The Borrower
hereby acknowledges that, pursuant to the Liquidity Agreement, (A) the making of the Downgrade Advance as requested by this Notice of Borrowing shall automatically reduce, subject to reinstatement in accordance with the terms of the Liquidity
Agreement, the 

 
Maximum Available Commitment to zero and (B) following the making by the Liquidity Provider of the Downgrade Advance requested by this Notice of Borrowing, subject to reinstatement in
accordance with the terms of the Liquidity Agreement, the Borrower shall not be entitled to request any further Advances under the Liquidity Agreement. 

IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice of Borrowing as of the
         day of             ,         . 

 

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent and as Borrower
		
	By:	 	  

		 	Name:
		 	Title:

  
 III-2 

 SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING 

[Insert Copy of computations in accordance with Downgrade Advance Notice of Borrowing] 

  
 III-3 

 ANNEX IV to 

REVOLVING CREDIT AGREEMENT 

FORM OF FINAL ADVANCE NOTICE OF BORROWING 

FINAL ADVANCE NOTICE OF BORROWING 

The undersigned, a duly authorized signatory of the undersigned borrower (the “Borrower”), hereby certifies to
Crédit Agricole Corporate and Investment Bank, acting through its New York Branch (the “Liquidity Provider”), with reference to the Revolving Credit Agreement (2020-1B), dated as
of July 2, 2020, between the Borrower and the Liquidity Provider (the “Liquidity Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined or referenced), that: 

(1)    The Borrower is the Subordination Agent under the Intercreditor Agreement. 

(2)    The Borrower is delivering this Notice of Borrowing for the making of the Final Advance by the
Liquidity Provider to be used for the funding of the Class B Cash Collateral Account in accordance with Section 3.05(i) of the Intercreditor Agreement by reason of the receipt by the Borrower of a Termination Notice from the Liquidity
Provider with respect to the Liquidity Agreement, which Advance is requested to be made on             ,         . The Final Advance
should be remitted to [insert wire and account details]. 
 (3)    The amount of the Final Advance
requested hereby (i) is $            , which equals the Maximum Available Commitment on the date hereof and is to be applied in respect of the funding of the Class B Cash
Collateral Account in accordance with Sections 3.05(f) and 3.05(i) of the Intercreditor Agreement, (ii) does not include any amount with respect to the payment of principal of, or premium on, the Class B Certificates, or principal of, or
interest or premium on, the Class A Certificates or any Additional Certificates, if issued, (iii) was computed in accordance with the provisions of the Class B Certificates, the Class B Trust Agreement and the Intercreditor
Agreement (a copy of which computation is attached hereto as Schedule I) and (iv) has not been and is not the subject of a prior or contemporaneous Notice of Borrowing. 

(4)    Upon receipt by or on behalf of the Borrower of the amount requested hereby, (a) the Borrower
will deposit such amount in the Class B Cash Collateral Account and apply the same in accordance with the terms of Sections 3.05(f) and 3.05(i) of the Intercreditor Agreement, (b) no portion of such amount shall be applied by the Borrower
for any other purpose and (c) no portion of such amount until so applied shall be commingled with other funds held by the Borrower. 

The Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A) the making of the Final Advance as requested by this
Notice of Borrowing shall automatically and irrevocably terminate the obligation of the Liquidity Provider to make further Advances under 

 
the Liquidity Agreement and (B) following the making by the Liquidity Provider of the Final Advance requested by this Notice of Borrowing, the Borrower shall not be entitled to request any
further Advances under the Liquidity Agreement. 
 IN WITNESS WHEREOF, the Borrower has executed and delivered this Notice of Borrowing as
of the      day of             ,         . 

 

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent and as Borrower
		
	By:	 	  

		 	Name:
		 	Title:

 [* Bracketed language may be included at Borrower’s option.] 

  
 IV-2 

 SCHEDULE 1 TO FINAL ADVANCE NOTICE OF BORROWING 

[Insert Copy of Computations in accordance with Final Advance Notice of Borrowing] 

  
 IV-3 

 ANNEX V to 

REVOLVING CREDIT AGREEMENT 
 FORM
OF SPECIAL TERMINATION 
 ADVANCE NOTICE OF BORROWING 

SPECIAL TERMINATION ADVANCE NOTICE OF BORROWING 

The undersigned, a duly authorized signatory of the undersigned borrower (the “Borrower”), hereby certifies to
Crédit Agricole Corporate and Investment Bank, acting through its New York Branch (the “Liquidity Provider”), with reference to the Revolving Credit Agreement (2020-1B), dated as
of July 2, 2020, between the Borrower and the Liquidity Provider (the “Liquidity Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined or referenced), that: 

(1)    The Borrower is the Subordination Agent under the Intercreditor Agreement. 

(2)    The Borrower is delivering this Notice of Borrowing for the making of the Special Termination
Advance by the Liquidity Provider to be used for the funding of the Class B Cash Collateral Account in accordance with Section 3.05(k) of the Intercreditor Agreement by reason of the receipt by the Borrower of a Special Termination Notice
from the Liquidity Provider with respect to the Liquidity Agreement, which Advance is requested to be made on                 . 

(3)    The amount of the Special Termination Advance requested hereby (i) is
$            , which equals the Maximum Available Commitment on the date hereof and is to be applied in respect of the funding of the Class B Cash Collateral Account in
accordance with Sections 3.05(f) and 3.05(k) of the Intercreditor Agreement, (ii) does not include any amount with respect to the payment of principal of, or premium on, the Class B Certificates, or principal of, or interest or
premium on, the Class A Certificates or any Additional Certificates, if issued, (iii) was computed in accordance with the provisions of the Class B Certificates, the Class B Trust Agreement and the Intercreditor Agreement (a copy
of which computation is attached hereto as Schedule I) and (iv) has not been and is not the subject of a prior or contemporaneous Notice of Borrowing. 

(4)    Upon receipt by or on behalf of the Borrower of the amount requested hereby, (a) the Borrower
shall deposit such amount in the Class B Cash Collateral Account and apply the same in accordance with the terms of Sections 3.05(f) and 3.05(k) of the Intercreditor Agreement, (b) no portion of such amount shall be applied by the
Borrower for any other purpose and (c) no portion of such amount until so applied shall be commingled with other funds held by the Borrower. 

The Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A) the making of the Special Termination Advance as
requested by this Notice of Borrowing shall automatically and irrevocably terminate the obligation of the Liquidity Provider to make further 

 
Advances under the Liquidity Agreement; and (B) following the making by the Liquidity Provider of the Special Termination Advance requested by this Notice of Borrowing, the Borrower shall
not be entitled to request any further Advances under the Liquidity Agreement. 
 IN WITNESS WHEREOF, the Borrower has executed and
delivered this Notice of Borrowing as of the      day of             ,         . 

 

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent and as Borrower
		
	By:	 	  

		 	Name:
		 	Title:

  
 V-2 

 SCHEDULE 1 TO SPECIAL TERMINATION ADVANCE NOTICE OF BORROWING 

[Insert Copy of Computations in accordance with Special Termination Advance Notice of Borrowing] 

  
 V-3 

 ANNEX VI to 

REVOLVING CREDIT AGREEMENT 

FORM OF NOTICE OF TERMINATION 

NOTICE OF TERMINATION 
 [Date]

 U.S. Bank Trust National Association, 
 as
Subordination Agent 
 as Borrower 
 Seattle
Tower 
 1420 Fifth Avenue 
 Seattle, WA 98101 

PD-WA-T7CT 

Attention: Richard Krupske 
 Ref: Alaska Air 2020-1 EETC 
  

	Re:	 Revolving Credit Agreement (2020-1B), dated as of July 2, 2020,
between U.S. Bank Trust National Association, as Subordination Agent and as agent and trustee for the Alaska Air Airways Pass Through Trust 2020-1B, as Borrower, and Crédit Agricole Corporate and
Investment Bank, acting through its New York Branch (the “Liquidity Agreement”) 

 Ladies and Gentlemen: 

You are hereby notified that pursuant to Section 6.01(a) of the Liquidity Agreement, by reason of the occurrence and continuance of a
Liquidity Event of Default and the existence of a Performing Note Deficiency (each as defined in the Liquidity Agreement), we are giving this notice to you in order to cause (i) our obligations to make Advances (as defined in the Liquidity
Agreement) under such Liquidity Agreement to terminate at the close of business on the fifth Business Day after the date on which you receive this notice and (ii) you to request a Final Advance under the Liquidity Agreement pursuant to
Section 2.02(c) of the Liquidity Agreement and Section 3.05(i) of the Intercreditor Agreement (as defined in the Liquidity Agreement) as a consequence of your receipt of this notice. 

 THIS NOTICE IS THE “NOTICE OF TERMINATION” PROVIDED FOR UNDER THE LIQUIDITY
AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY AGREEMENT WILL TERMINATE AT THE CLOSE OF BUSINESS ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU RECEIVE THIS NOTICE. 

 

			
	Very truly yours,
	
	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, ACTING THROUGH ITS NEW YORK BRANCH, as Liquidity Provider
		
	By:	 	  

		 	Name:
		 	Title:

  

	cc:	 U.S. Bank Trust National Association, as Class B Trustee 

	  	 Alaska Airlines, Inc. 

	  	 Horizon Air Industries, Inc. 

  
 VI-2 

 ANNEX VII to 

REVOLVING CREDIT AGREEMENT 

FORM OF NOTICE OF SPECIAL TERMINATION 

NOTICE OF SPECIAL TERMINATION 

[Date] 
 U.S. Bank Trust National Association,

 as Subordination Agent 
 as
Borrower 
 Seattle Tower 
 1420 Fifth Avenue 

Seattle, WA 98101 
 PD-WA-T7CT 
 Attention: Richard Krupske 

Ref: Alaska Air 2020-1 EETC 
  

	Re:	 Revolving Credit Agreement (2020-1B), dated as of July 2, 2020,
between U.S. Bank Trust National Association, as Subordination Agent and as agent and trustee for the Alaska Air Pass Through Trust 2020-1B, as Borrower, and Crédit Agricole Corporate and Investment
Bank, acting through its New York Branch (the “Liquidity Agreement”) 

 Ladies and Gentlemen: 

You are hereby notified that pursuant to Section 6.01(b) of the Liquidity Agreement, by reason of the aggregate Pool Balance of the
Class B Certificates exceeding the aggregate outstanding principal amount of the Series B Equipment Notes (other than any Series B Equipment Notes previously sold or with respect to which the Aircraft related to such Series B Equipment
Notes has been disposed of) during the 18-month period prior to August 15, 2025, we are giving this notice to you in order to cause (i) our obligations to make Advances (as defined in the Liquidity
Agreement) under such Liquidity Agreement to terminate at the close of business on the fifth Business Day after the date on which you receive this notice and (ii) you to request a Special Termination Advance under the Liquidity Agreement
pursuant to Section 2.02(d) of the Liquidity Agreement and Section 3.05(k) of the Intercreditor Agreement (as defined in the Liquidity Agreement) as a consequence of your receipt of this notice. 

 THIS NOTICE IS THE “NOTICE OF SPECIAL TERMINATION” PROVIDED FOR UNDER THE
LIQUIDITY AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY AGREEMENT WILL TERMINATE AT THE CLOSE OF BUSINESS ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU RECEIVE THIS NOTICE. 

 

			
	Very truly yours,
	
	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, ACTING THROUGH ITS NEW YORK BRANCH, as Liquidity Provider
		
	By:	 	  

		 	Name:
		 	Title:

  

	cc:	 U.S. Bank Trust National Association, as Class B Trustee 

	  	 Alaska Airlines, Inc. 

	  	 Horizon Air Industries, Inc. 

  
 VII-2 

 ANNEX VIII to 

REVOLVING CREDIT AGREEMENT 

FORM OF NOTICE OF REPLACEMENT SUBORDINATION AGENT 

NOTICE OF REPLACEMENT SUBORDINATION AGENT 

[Date] 
 Attention: 

 

	Re:	 Revolving Credit Agreement (2020-1B), dated as of July 2, 2020,
between U.S. Bank Trust National Association, as Subordination Agent and as agent and trustee for the Alaska Air Pass Through Trust 2020-1B, as Borrower, and Crédit Agricole Corporate and Investment
Bank, acting through its New York Branch (the “Liquidity Agreement”) 

 Ladies and Gentlemen: 

For value received, the undersigned beneficiary hereby irrevocably transfers to: 

[Name of Transferee] 
 [Address of
Transferee] 
 all rights and obligations of the undersigned as Borrower under the Liquidity Agreement referred to above. The transferee has succeeded the
undersigned as Subordination Agent under the Intercreditor Agreement referred to in the first paragraph of the Liquidity Agreement, pursuant to the terms of Section 7.01 of the Intercreditor Agreement. 

By this transfer, all rights of the undersigned as Borrower under the Liquidity Agreement are transferred to the transferee and the transferee
shall hereafter have the sole rights and obligations as Borrower thereunder. The undersigned shall pay any costs and expenses of such transfer, including, but not limited to, transfer taxes or governmental charges. 

This transfer shall be effective as of [specify time and date]. 

 

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent and as Borrower
		
	By:	 	  

		 	Name:
		 	Title:

  
 VIII-1EX-4.12

 Exhibit 4.12 

EXECUTION VERSION 
 CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT THAT IS MARKED BY [***] HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED. 

 
  

PARTICIPATION AGREEMENT 
 (N568AS)

 Dated as of July 2, 2020 

among 
 ALASKA AIRLINES, INC.,

 U.S. BANK TRUST NATIONAL ASSOCIATION, 

as Pass Through Trustee under each of the 

Pass Through Trust Agreements in effect as of the date hereof, 

U.S. BANK TRUST NATIONAL ASSOCIATION, 

as Subordination Agent, 
 U.S. BANK
TRUST NATIONAL ASSOCIATION, 
 as Loan Trustee, 

and 
 U.S. BANK TRUST NATIONAL
ASSOCIATION, 
 in its individual capacity as set forth herein 

* 
 One Boeing 737-890 
 (Generic Manufacturer and Model: BOEING 737-800) Aircraft

 U.S. Registration No. N568AS 
  

 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE 1 DEFINITIONS
	  	 	2	 
			
	 Section 1.01.
	  	Definitions	  	 	2	 
	 Section 1.02.
	  	Other Definitional Provisions	  	 	2	 
		
	 ARTICLE 2 THE LOANS
	  	 	2	 
			
	 Section 2.01.
	  	The Loans	  	 	2	 
	 Section 2.02.
	  	Issuance of Equipment Notes	  	 	3	 
	 Section 2.03.
	  	The Closing	  	 	4	 
		
	 ARTICLE 3 CONDITIONS PRECEDENT
	  	 	4	 
			
	 Section 3.01.
	  	Conditions Precedent to Obligations of Pass Through Trustees	  	 	4	 
	 Section 3.02.
	  	Conditions Precedent to Obligations of Company	  	 	8	 
		
	 ARTICLE 4 REPRESENTATIONS, WARRANTIES AND INDEMNITIES OF COMPANY
	  	 	10	 
			
	 Section 4.01.
	  	Representations and Warranties of Company	  	 	10	 
	 Section 4.02.
	  	General Indemnity	  	 	13	 
		
	 ARTICLE 5 REPRESENTATIONS, WARRANTIES AND COVENANTS OF U.S. BANK
	  	 	19	 
			
	 Section 5.01.
	  	Representations, Warranties and Covenants of U.S. Bank	  	 	19	 
		
	 ARTICLE 6 OTHER COVENANTS AND AGREEMENTS
	  	 	22	 
			
	 Section 6.01.
	  	Other Agreements	  	 	22	 
	 Section 6.02.
	  	Certain Covenants of Company	  	 	25	 
		
	 ARTICLE 7 MISCELLANEOUS
	  	 	27	 
			
	 Section 7.01.
	  	Notices	  	 	27	 
	 Section 7.02.
	  	Survival of Representations, Warranties, Indemnities, Covenants and Agreements	  	 	29	 
	 Section 7.03.
	  	Governing Law	  	 	29	 
	 Section 7.04.
	  	Severability	  	 	29	 
	 Section 7.05.
	  	No Oral Modifications or Continuing Waivers; Consents	  	 	30	 
	 Section 7.06.
	  	Effect of Headings and Table of Contents	  	 	30	 
	 Section 7.07.
	  	Successors and Assigns	  	 	30	 
	 Section 7.08.
	  	Benefits of Agreement	  	 	30	 

  
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Participation Agreement (2020-1 EETC) 

N568AS 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 Section 7.09.
	  	Counterparts	  	 	30	 
	 Section 7.10.
	  	Submission to Jurisdiction	  	 	31	 
	 Section 7.11.
	  	Further Assurances	  	 	31	 
	 Section 7.12.
	  	Section 1110	  	 	31	 

  

					
	 Schedule I
	  	–	  	 Equipment Notes, Purchasers and Original Principal Amounts; Account Details

	 Schedule II
	  	–	  	 Trust Supplements

			
	 Exhibit A-1
	  	–	  	 Form of Opinion of Company’s Legal Department

	 Exhibit A-2
	  	–	  	 Form of Opinion of Debevoise & Plimpton LLP, special counsel for Company

	 Exhibit A-3
	  	–	  	 Form of Opinion of Debevoise & Plimpton LLP, special counsel for Company, regarding
Section 1110

	 Exhibit B
	  	–	  	 Form of Opinion of Special Counsel for Loan Trustee, Pass Through Trustees, Subordination Agent
and U.S. Bank

	 Exhibit C
	  	–	  	 Form of Opinion of Special FAA Counsel

	 Exhibit D-1
	  	–	  	 Form of Opinion of Special Delaware Tax Counsel for Pass Through Trustees

	 Exhibit D-2
	  	–	  	 Form of Opinion of Special Alaska UCC Counsel

	 Exhibit E
	  	–	  	 Form of Manufacturer’s Consent

			
	 Annex A
	  	–	  	 Definitions

  

  
 ii 

Participation Agreement (2020-1 EETC) 

N568AS 

 PARTICIPATION AGREEMENT 

(N568AS) 
 This
PARTICIPATION AGREEMENT (N568AS), dated as of July 2, 2020, is made by and among ALASKA AIRLINES, INC., an Alaska corporation (together with its successors and permitted assigns, “Company”), U.S. BANK TRUST NATIONAL
ASSOCIATION, a national banking association (in its individual capacity, together with its successors and permitted assigns, “U.S. Bank”), not in its individual capacity except as otherwise expressly provided in any of the Operative
Documents or the Pass Through Documents, but solely as Pass Through Trustee under each of the Pass Through Trust Agreements in effect as of the date hereof (such terms and other capitalized terms used herein without definition being defined as
provided in Section 1.01), U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association, as subordination agent and trustee (in such capacity, together with any successor trustee in such capacity, “Subordination Agent”)
under the Intercreditor Agreement, and U.S. BANK TRUST NATIONAL ASSOCIATION, as loan trustee (in such capacity, together with any successor trustee in such capacity, “Loan Trustee”) under the Indenture. 

WITNESSETH: 
 WHEREAS, Company is
the owner of that certain Boeing model 737-890 aircraft more particularly described in the Indenture Supplement originally executed and delivered under the Indenture; 

WHEREAS, concurrently with the execution and delivery of this Agreement, Company and Loan Trustee are entering into the Indenture, pursuant to
which, among other things, Company will issue one or more separate series of Equipment Notes, which Equipment Notes are to be secured by a security interest in all right, title and interest of Company in and to the Aircraft and certain other
property described in the Indenture; 
 WHEREAS, pursuant to the Basic Pass Through Trust Agreement and each of the Trust Supplements set
forth in Schedule II, the Pass Through Trusts in existence as of the date hereof were created and the Pass Through Certificates issued and sold; 

WHEREAS, pursuant to the Intercreditor Agreement, Subordination Agent will hold the Equipment Notes on behalf of the Pass Through Trusts; 

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

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 ARTICLE 1 

DEFINITIONS 

Section 1.01. Definitions. For the purposes of this Agreement, unless the context otherwise requires, capitalized terms used but
not defined herein shall have the respective meanings set forth or incorporated by reference in Annex A. 
 Section 1.02. Other
Definitional Provisions. (a) The definitions stated herein and in Annex A apply equally to both the singular and the plural forms of the terms defined. 

(b) All references in this Agreement to designated “Articles”, “Sections”, “Subsections”,
“Schedules”, “Exhibits”, “Annexes” and other subdivisions are to the designated Article, Section, Subsection, Schedule, Exhibit, Annex or other subdivision of this Agreement, unless otherwise specifically stated. 

(c) The words “herein”, “hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular Article, Section, Subsection, Schedule, Exhibit, Annex or other subdivision. 

(d) All references in this Agreement to a “government” are to such government and any instrumentality or agency
thereof. 
 (e) Unless the context otherwise requires, whenever the words “including”, “include” or
“includes” are used herein, they shall be deemed to be followed by the phrase “without limitation”. 

(f) All references in this Agreement to a Person shall include successors and permitted assigns of such Person. 

ARTICLE 2 
 THE LOANS

 Section 2.01. The Loans. Subject to the terms and conditions of this Agreement and the Indenture, on the Closing Date,
Pass Through Trustee for each Pass Through Trust in existence as of the Closing Date shall make a loan to Company by paying to Company the aggregate original principal amounts of the Equipment Notes being issued to such Pass Through Trust as set
forth on Schedule I opposite the name of such Pass Through Trust. Pass Through Trustees, on behalf of the Pass Through Trusts in existence as of the Closing Date, shall make such loans to Company no later than 11:00 a.m. (New York City time) on the
Closing Date by transferring such amount in immediately available funds to Company at its account at Bank of America, N.A., 800 5th Ave., Seattle, WA 98104, SWIFT: [***], ABA Number: [***], Account No.: [***], with the request that the bank advise
Company by telephone at [***] upon transfer of the funds. 

  
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N568AS 

 Section 2.02. Issuance of Equipment Notes. Upon the occurrence of the above
payments by Pass Through Trustee for each Pass Through Trust in existence as of the Closing Date to Company, Company shall issue, pursuant to and in accordance with Article II of the Indenture, to Subordination Agent as agent and trustee for
Pass Through Trustee for each such Pass Through Trust, one or more Equipment Notes of the maturity and aggregate original principal amount and bearing the interest rate set forth in Schedule I opposite the name of such Pass Through Trust. Each such
Equipment Note shall be duly authenticated by Loan Trustee pursuant to the Indenture, registered in the name of Subordination Agent and dated the Closing Date and shall be delivered by Loan Trustee to Subordination Agent. In addition, subject to
Section 8.01(c) or 8.01(d) of the Intercreditor Agreement, as applicable, Company shall have the option (a) if no Series B Equipment Notes were issued on the Closing Date, to issue Series B Equipment Notes after the Closing Date under the
Indenture, and (b) after Series B Equipment Notes have been issued (whether on or after the Closing Date), at any time and from time to time, (i) to redeem all but not less than all of the Series B Equipment Notes (or all but not
less than all of any Series of Additional Series Equipment Notes) and to issue under the Indenture new Equipment Notes with the same Series designation as, but with terms that may be the same as or different from those of, the redeemed Equipment
Notes, (ii) to issue one or more Series of Additional Series Equipment Notes under the Indenture (including, for the avoidance of doubt, multiple issuances at the same or different times resulting in more than one Series of Additional
Series Equipment Notes being outstanding at any time) and (iii) at any time following the payment in full at maturity or otherwise of all but not less than all of the Series B Equipment Notes (or all but not less than all of any
Series of Additional Series Equipment Notes), to issue under the Indenture new Equipment Notes with the same Series designation as, but with terms that may be the same as or different from those of, such Equipment Notes that have been paid in full.
If Series B Equipment Notes, new Series B Equipment Notes, Additional Series Equipment Notes or new Additional Series Equipment Notes are so issued after the Closing Date, each Noteholder of such Equipment Notes shall be deemed to be a party hereto
without further act, and shall be entitled to execute, and at the request of Company shall execute, a counterpart to this Agreement. Subject to Section 8.01(c) or 8.01(d) of the Intercreditor Agreement, as applicable, each of the parties hereto
agrees, at Company’s request, to enter into any amendments to (or any amendment and restatement of) this Agreement, any of the other Operative Documents and the Pass Through Documents as may be necessary or desirable (A) to give
effect to (x) any issuance, redemption and issuance, or any payment and issuance of any such Series B Equipment Notes, new Series B Equipment Notes, Additional Series Equipment Notes or new Additional Series Equipment Notes, as
applicable, and the issuance of pass through certificates by any pass through trust that acquires any such Series B Equipment Notes, new Series B Equipment 

  
 3 

Participation Agreement (2020-1 EETC) 

N568AS 

 
Notes, Additional Series Equipment Notes or new Additional Series Equipment Notes, as applicable, or (y) any issuance, any redemption and issuance, or any payment and issuance of any
such “Series B Equipment Notes”, new “Series B Equipment Notes” or “Additional Series Equipment Notes” of any Series or new “Additional Series Equipment Notes” of any Series, in each case under any Related
Indenture, and the issuance of pass through certificates by any pass through trust that acquires any such “Series B Equipment Notes”, new “Series B Equipment Notes”, “Additional Series Equipment Notes” or new
“Additional Series Equipment Notes”, as applicable, and (B) to make changes relating to any of the foregoing (including, without limitation, to provide for any prefunding mechanism in connection therewith) and to provide for
any credit support for any pass through certificates relating to any such Series B Equipment Notes, new Series B Equipment Notes, Additional Series Equipment Notes or new Additional Series Equipment Notes or such “Series B Equipment
Notes”, new “Series B Equipment Notes” or “Additional Series Equipment Notes” of any Series or new “Additional Series Equipment Notes” of any Series (including, without limitation, to provide for payment of fees,
interest, expenses, reimbursement of advances and other obligations arising from such credit support (including, without limitation, to specify such credit support as a “Liquidity Facility” and the provider of any such credit support as a
“Liquidity Provider” and, if such Liquidity Facility is to be comprised of more than one instrument, to incorporate appropriate mechanics for multiple Liquidity Facilities for a single Pass Through Trust)). For the avoidance of doubt, if
“Series B Equipment Notes” are issued after the Closing Date, or new “Series B Equipment Notes” or “Additional Series Equipment Notes” of any Series or new “Additional Series Equipment Notes” of any Series are
issued, in each case under any Related Indenture, Company may, but shall not be required to, issue, as the case may be, Series B Equipment Notes, new Series A Equipment Notes or Additional Series Equipment Notes of the same Series or new Additional
Series Equipment Notes of the same Series, in each case under the Indenture. 
 Section 2.03. The Closing. The closing (the
“Closing”) of the transactions contemplated hereby shall take place at the offices of Debevoise & Plimpton LLP, 919 Third Avenue, New York, New York 10022 at 9:30 a.m. (New York City time) on July 2, 2020 or at such
other time or place as the parties shall agree. 
 ARTICLE 3 

CONDITIONS PRECEDENT 

Section 3.01. Conditions Precedent to Obligations of Pass Through Trustees. The obligation of the Pass Through Trustee of each Pass
Through Trust in existence as of the Closing Date to make the loan contemplated by Article II is subject to the fulfillment (or the waiver by such Pass Through Trustee) prior to or on the Closing Date of the following conditions precedent: 

  
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Participation Agreement (2020-1 EETC) 

N568AS 

 (a) Authentication. Company shall have tendered the Equipment Notes
being issued on the Closing Date to Loan Trustee for authentication, and Loan Trustee shall have authenticated such Equipment Notes and shall have tendered such Equipment Notes to Subordination Agent on behalf of the applicable Pass Through Trustee,
against receipt of the loan proceeds, in accordance with Section 2.02. 
 (b) No Changes in Law. No change shall
have occurred after the date of this Agreement in applicable law or regulations thereunder or interpretations thereof by appropriate regulatory authorities or any court that would make it a violation of law or governmental regulations such Pass
Through Trustee to make the loans contemplated by Section 2.01 or to acquire the Equipment Notes. 
 (c)
Documentation. This Agreement and the following documents shall have been duly authorized, executed and delivered by the respective party or parties thereto (other than such Pass Through Trustee or Loan Trustee), shall be in full force and
effect and executed counterparts (or copies thereof where indicated) thereof shall have been delivered to each relevant Pass Through Trustee: 

(i) the Intercreditor Agreement; 

(ii) the Liquidity Facilities in effect as of the Closing Date; 

(iii) the Pass Through Trust Agreements in effect as of the Closing Date; 

(iv) the Indenture and the Indenture Supplement covering the Aircraft and dated the Closing Date; 

(v) the Manufacturer’s Consent; 

(vi) a copy of the FAA Bill of Sale; 

(vii) a copy of the Warranty Bill of Sale; and 

(viii) the Guarantees. 

(d) Financing Statement. A Uniform Commercial Code financing statement or statements covering the security interest
created by the Indenture naming Company, as debtor, and Loan Trustee, as secured party, shall have been (or shall be in the process of being) duly filed in all places necessary or desirable within the State of Alaska. 

(e) Certain Closing Certificates. Each such Pass Through Trustee shall have received the following: 

  
 5 

Participation Agreement (2020-1 EETC) 

N568AS 

 (i) a certificate dated the Closing Date of the Corporate Secretary or an
Assistant Corporate Secretary of Company, certifying as to (A) a copy of the resolutions of the Board of Directors of Company or the executive or any other applicable committee thereof duly authorizing the transactions contemplated
hereby and the execution, delivery and performance by Company of this Agreement and the Indenture and each other document required to be executed and delivered by Company in accordance with the provisions hereof or thereof and (B) a copy
of the certificate of incorporation and by-laws of Company, as in effect on the Closing Date; 

(ii) a certificate or other evidence from the Secretary of State of the State of Alaska, dated as of a date reasonably near the
Closing Date, as to the due incorporation and good standing of Company in such state; 
 (iii) an incumbency certificate of
Company as to the person or persons authorized to execute and deliver this Agreement, the Indenture and each other document to be executed by Company in connection with the transactions contemplated hereby and thereby, and the specimen signatures of
such person or persons; and 
 (iv) one or more certificates of Loan Trustee and Subordination Agent certifying to the
reasonable satisfaction of such Pass Through Trustee as to the due authorization, execution, delivery and performance by Loan Trustee and Subordination Agent of each of the Operative Documents to which Loan Trustee or Subordination Agent is or will
be a party and any other documents to be executed by or on behalf of Loan Trustee or Subordination Agent in connection with the transactions contemplated hereby or thereby. 

(f) Representations; No Event of Default or Event of Loss. On the Closing Date, the following statements shall be
correct: (i) the representations and warranties of Company herein are correct in all material respects as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date
(in which case such representations and warranties are correct on and as of such earlier date) and (ii) no event has occurred and is continuing that constitutes an Event of Default or an Event of Loss with respect to the Aircraft or
would constitute an Event of Default or such an Event of Loss but for the requirement that notice be given or time elapse or both. 

(g) Opinion of Counsel to Company. Each such Pass Through Trustee and Loan Trustee shall have received
(i) an opinion addressed to it from the Owner’s Legal Department substantially in the form set forth in Exhibit A-1, (ii) an opinion addressed to it from Debevoise & Plimpton
LLP substantially in the form set forth in Exhibit A-2 and (iii) an opinion regarding Section 1110 matters addressed to it from Debevoise & Plimpton LLP substantially in the
form set forth in Exhibit A-3. 

  
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Participation Agreement (2020-1 EETC) 

N568AS 

 (h) Opinion of Counsel to U.S. Bank, Loan Trustee, Pass Through Trustees
and Subordination Agent. Each such Pass Through Trustee and Loan Trustee shall have received an opinion addressed to it from Dorsey & Whitney LLP, special counsel for U.S. Bank, Loan Trustee, Pass Through Trustees of the Pass Through
Trusts in existence as of the Closing Date and Subordination Agent, substantially in the form set forth in Exhibit B. 

(i) Opinion of FAA Counsel. Each such Pass Through Trustee and Loan Trustee shall have received an opinion addressed to
it from Crowe & Dunlevy, P.C., special FAA counsel in Oklahoma City, Oklahoma, substantially in the form set forth in Exhibit C. 

(j) Certification from Company. Each such Pass Through Trustee and Loan Trustee shall have received a certificate or
certificates signed by the chief financial or accounting officer, any Senior Vice President, the Treasurer, any Vice President or any Assistant Treasurer (or any other Responsible Officer) of Company, dated the Closing Date, certifying as to the
correctness of each of the matters stated in Section 3.01(f). 
 (k) Certification from U.S. Bank, Loan Trustee and
Subordination Agent. Each such Pass Through Trustee shall have received a certificate from U.S. Bank in its individual capacity and as Loan Trustee and Subordination Agent, as applicable, dated the Closing Date, signed by an authorized officer
of U.S. Bank in its individual capacity and as Loan Trustee and Subordination Agent, as applicable, certifying for each such entity that no Loan Trustee Liens or Other Party Liens attributable to it, as applicable, exist, and further certifying as
to the correctness of each of the matters stated in Section 5.01. 
 (l) [Reserved.] 

(m) Insurance Matters. Loan Trustee shall have received an insurance report of an independent insurance broker and the
related certificates of insurance, each in form and substance reasonably satisfactory to Loan Trustee, as to the compliance with the terms of Section 7.06 of the Indenture relating to insurance with respect to the Aircraft. 

(n) No Proceedings. No action or proceeding shall have been instituted nor shall governmental action be threatened
before any court or governmental agency, nor shall any order, judgment or decree have been issued or proposed to be issued by any court or governmental agency at the time of the Closing to set aside, restrain, enjoin or prevent the completion and
consummation of this Agreement or the transactions contemplated hereby. 

  
 7 

Participation Agreement (2020-1 EETC) 

N568AS 

 (o) Funding of Pass Through Trusts. Each such Pass Through Trustee
shall have received in immediately available funds an amount at least equal to the aggregate purchase price of the Equipment Notes to be purchased from Company by such Pass Through Trustee. 

(p) Manufacturer’s Consent. Loan Trustee shall have received an executed copy of the Manufacturer’s Consent
substantially in the form set forth in Exhibit E. 
 (q) Governmental Approvals. All appropriate action
required to have been taken prior to the Closing Date by the FAA or any governmental or political agency, subdivision or instrumentality of the United States in connection with the transactions contemplated by this Agreement has been taken, and all
orders, permits, waivers, authorizations, exemptions and approvals of such entities required to be in effect on the Closing Date in connection with the transactions contemplated by this Agreement have been issued. 

Promptly upon the recording of the Indenture (with the Indenture Supplement covering the Aircraft attached) pursuant to the Transportation
Code and the receipt of appropriate and correct recording information from the FAA, Company will cause Crowe & Dunlevy, P.C., special FAA counsel in Oklahoma City, Oklahoma to deliver to Subordination Agent, to Pass Through Trustees, to
Loan Trustee and to Company an opinion as to the due recording of such instrument and the lack of filing of any intervening documents with respect to the Aircraft. 

Section 3.02. Conditions Precedent to Obligations of Company. The obligation of Company to issue and sell the Equipment Notes is
subject to the fulfillment (or waiver by Company) prior to or on the Closing Date of the following conditions precedent: 

(a) No Changes in Law. No change shall have occurred after the date of this Agreement in applicable law or regulations
thereunder or interpretations thereof by appropriate regulatory authorities or any court that would make it a violation of law or governmental regulations for Company to enter into any transaction contemplated by the Operative Documents or the Pass
Through Documents. 
 (b) Documentation. The documents referred to in Section 3.01(c) shall have been duly
authorized, executed and delivered by the respective party or parties thereto (other than Company), shall be in full force and effect and executed counterparts (or copies thereof where indicated) thereof shall have been

  
 8 

Participation Agreement (2020-1 EETC) 

N568AS 

 
delivered to Company, and Company shall have received such documents and evidence with respect to U.S. Bank, the Liquidity Provider of each Liquidity Facility in effect as of the Closing Date,
Loan Trustee, Subordination Agent and the Pass Through Trustee of each Pass Through Trust in existence as of the Closing Date as Company reasonably requests in order to establish the consummation of the transactions contemplated by this Agreement,
the taking of all corporate and other proceedings in connection therewith and compliance with the conditions herein set forth. 

(c) FAA Filing. The Indenture (with the Indenture Supplement covering the Aircraft attached) shall have been duly filed
for recordation (or shall be in the process of being so duly filed for recordation) with the FAA pursuant to the Transportation Code. The registration of the International Interests (or Prospective International Interests) created under the
Indenture (as supplemented by the Indenture Supplement with respect to the Aircraft) shall have been effected (or shall be in the process of being so effected) on the International Registry in accordance with the Cape Town Treaty. 

(d) Representations and Warranties. On the Closing Date, the representations and warranties herein of U.S. Bank, Loan
Trustee, Subordination Agent and Pass Through Trustees of the Pass Through Trusts in existence as of the Closing Date shall be correct as though made on and as of such date, except to the extent that such representations and warranties relate solely
to an earlier date (in which case such representations and warranties shall have been correct on and as of such earlier date), and, insofar as such representations and warranties concern U.S. Bank, Loan Trustee, Subordination Agent or any such Pass
Through Trustee, such party shall have so certified to Company. 
 (e) Certain Opinions and Certificates. Company
shall have received each opinion referred to in Sections 3.01(h) and 3.01(i), each such opinion addressed to Company or accompanied by a letter from the counsel rendering such opinion authorizing Company to rely on such opinion as if it were
addressed to Company, and the certificates referred to in Sections 3.01(e)(iv) and 3.01(k). 
 (f) Certain Opinions of
Special Counsel. Company shall have received an opinion addressed to it from Richards, Layton & Finger P.A., special Delaware counsel for Pass Through Trustee of the Pass Through Trusts in existence as of the Closing Date, substantially
in the form set forth in Exhibit D-1, and an opinion addressed to it from Davis Wright Tremaine LLP, special D-2 counsel as to UCC matters, substantially
in the form set forth in Exhibit D-2. 
 (g) No Proceedings. No action
or proceeding shall have been instituted nor shall governmental action be threatened before any court or governmental agency, nor shall any order, judgment or decree have been issued or proposed to be issued by any court or governmental agency at
the time of the Closing to set aside, restrain, enjoin or prevent the completion and consummation of this Agreement or the transactions contemplated hereby. 

  
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 (h) No Other Party Liens, etc. Company shall have received a
certificate from U.S. Bank dated the Closing Date, signed by an authorized officer of U.S. Bank, certifying for the Pass Through Trustee of each Pass Through Trust in existence as of the Closing Date that no Other Party Liens attributable to it
exist and further certifying as to the correctness of each of the matters stated in Section 5.01. 
 (i) Payment for
Equipment Notes. Company shall have been paid by the Pass Through Trustee of each Pass Through Trust in existence as of the Closing Date the aggregate original principal amount of the Equipment Notes being issued to such Pass Through Trustee as
set forth on Schedule I opposite the name of such Pass Through Trust. 
 (j) Tax Forms of the Pass Through Trustees.
Each Pass Through Trustee shall have provided a completed and executed copy of IRS Form W-9 to each of Company, the Subordination Agent and the Liquidity Providers. 

ARTICLE 4 

REPRESENTATIONS, WARRANTIES AND INDEMNITIES OF COMPANY 

Section 4.01. Representations and Warranties of Company. Company represents and warrants that: 

(a) Organization; Authority; Qualification. Company is a corporation duly incorporated and validly existing in good
standing under the laws of the State of Alaska, is a Certificated Air Carrier, is a Citizen of the United States, has the corporate power and authority to own its properties or hold them under lease and to enter into and perform its obligations
under the Operative Documents to which it is a party and is duly qualified to do business as a foreign corporation in good standing in each other jurisdiction in which the failure to so qualify would have a material adverse effect on the
consolidated financial condition of Company and its subsidiaries, considered as a whole, and its jurisdiction of organization (as such term is used in Article 9 of the Uniform Commercial Code as in effect in the State of Alaska) is Alaska. 

(b) Corporate Action and Authorization; No Violations. The execution, delivery and performance by Company of this
Agreement and the other Operative Documents to which Company is a party have been duly authorized by all necessary corporate action on the part of Company, do not require any 

  
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stockholder approval or approval or consent of any trustee or holder of any indebtedness or obligations of Company, except such as have been duly obtained and are in full force and effect, and do
not contravene any law, governmental rule, regulation, judgment or order binding on Company or the certificate of incorporation or by-laws of Company or contravene or result in a breach of, or constitute a
default under, or result in the creation of any Lien (other than as permitted under the Indenture) upon the property of Company under, any material indenture, mortgage, contract or other agreement to which Company is a party or by which it or any of
its properties may be bound or affected. 
 (c) Governmental Approvals. Neither the execution and delivery by Company
of this Agreement and the other Operative Documents to which it is a party, nor the consummation by Company of any of the transactions contemplated hereby or thereby, requires the authorization, consent or approval of, the giving of notice to, the
filing or registration with or the taking of any other action in respect of, the Department of Transportation, the FAA or any other federal or state governmental authority or agency, or the International Registry, except for (i) the
registration of the issuance and sale of the Pass Through Certificates under the Securities Act and under the securities laws of any state or other jurisdiction in which the Pass Through Certificates may be offered for sale if the laws of such state
or other jurisdiction require such action, (ii) the qualification of the Pass Through Trust Agreements under the Trust Indenture Act, (iii) the orders, permits, waivers, exemptions, authorizations and approvals of the
regulatory authorities having jurisdiction over Company’s ownership or operation of the Aircraft required to be obtained on or prior to the Closing Date, which orders, permits, waivers, exemptions, authorizations and approvals have been duly
obtained and are, or on the Closing Date will be, in full force and effect, (iv) the filings and registrations referred to in Section 4.01(e), (v) authorizations, consents, approvals, notices and filings required to be
obtained, taken, given or made under securities or Blue Sky or similar laws of the various states and foreign jurisdictions and (vi) consents, approvals, notices, registrations and other actions required to be obtained, given, made or
taken only after the date hereof. 
 (d) Valid and Binding Agreements. This Agreement and each other Operative
Document to which Company is a party have been duly executed and delivered by Company and constitute the legal, valid and binding obligations of Company enforceable against Company in accordance with their terms, except as the same may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights of creditors generally and by general principles of equity and except, in the case of the Indenture, as limited by applicable laws that may affect the
remedies provided in the Indenture, which laws, however, do not make the remedies provided in the Indenture inadequate for the practical realization of the rights and benefits intended to be provided thereby. 

  
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 (e) Filings and Recordation. Except for (i) the filing
for recordation pursuant to the Transportation Code of the Indenture (with the Indenture Supplement covering the Aircraft attached), (ii) with respect to the security interests created by such documents, the filing of financing statements
(and continuation statements at periodic intervals) under the Uniform Commercial Code of Alaska, and (iii) the registration on the International Registry of the International Interests (or Prospective International Interests) created
under the Indenture (as supplemented by the Indenture Supplement covering the Aircraft), no further filing or recording of any document is necessary under the laws of the United States or any state thereof as of the Closing Date in order to
establish and perfect the security interest in the Aircraft created under the Indenture in favor of Loan Trustee as against Company and any third parties in any applicable jurisdiction in the United States. 

(f) Investment Company Act. Company is not required to be registered as an “investment company” within the
meaning of the Investment Company Act of 1940, as amended. 
 (g) Title. As of the Closing Date,
(i) Company has good title to the Aircraft, free and clear of Liens other than Permitted Liens, (ii) the Aircraft has been duly certified (or shall be in the process of being so duly certified) by the FAA (subject only to
Company’s receipt of the applicable certificate from FAA) as to type and airworthiness in accordance with the terms of the Indenture, (iii) the Indenture (with the Indenture Supplement covering the Aircraft attached) has been duly
filed for recordation (or shall be in the process of being so duly filed for recordation) with the FAA pursuant to the Transportation Code, (iv) the Aircraft is duly registered (or shall be in the process of being so duly registered)
with the FAA in the name of Company, and (v) the registration of the International Interests (or Prospective International Interests) created under the Indenture (as supplemented by the Indenture Supplement with respect to the Aircraft)
shall have been effected (or shall be in the process of being so effected) on the International Registry in accordance with the Cape Town Treaty. 

(h) Section 1110. Loan Trustee is entitled to the benefits of Section 1110 with respect to the Aircraft being
subjected to the Lien of the Indenture on the Closing Date. 
 (i) Security Interest. The Indenture creates in favor
of Loan Trustee, for the benefit of Noteholders, Indenture Indemnitees, Related Indenture Indemnitees and the Company Guarantee Beneficiary, a valid and (subject to the filings and registrations referred to in Section 4.01(e)) perfected Lien on
the Aircraft purported to be subjected to the Lien of the Indenture on the Closing Date, subject to no equal or prior Lien, except Permitted Liens. 

  
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 (j) Licenses, Permits and Franchises. Company holds all licenses,
permits and franchises from the appropriate government entities necessary to authorize Company lawfully to engage in air transportation and to carry on scheduled commercial passenger service as currently conducted, except where the failure to so
hold any such license, permit or franchise would not have a material adverse effect on the financial condition or operations of Company and its consolidated subsidiaries, taken as a whole. 

Section 4.02. General Indemnity. (a) Claims Defined. For the purposes of this Section 4.02,
“Claims” means any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs or expenses of whatsoever kind and nature (whether or not on the basis of negligence, strict or absolute liability or
liability in tort) that may be imposed on, incurred by, suffered by or asserted against an Indemnitee, as defined below, and, except as otherwise expressly provided in this Section 4.02, includes all reasonable out-of-pocket costs, disbursements and expenses (including reasonable out-of-pocket legal fees and expenses) actually incurred
by an Indemnitee in connection therewith or related thereto. 
 (b) Indemnitee Defined. For the purposes of this
Section 4.02, “Indemnitee” means (i) U.S. Bank and Loan Trustee, (ii) each separate or additional trustee appointed pursuant to Section 8.02 of the Indenture, (iii) so long as it holds
any Equipment Notes as agent and trustee of any Pass Through Trustee, Subordination Agent (iv) so long as it is the holder of any Equipment Notes, each Pass Through Trustee, (v) each Liquidity Provider, (vi) any
Related Noteholder, (vii) the Company Guarantee Beneficiary and (viii) each of their respective successors and permitted assigns in such capacities, agents, servants, officers, employees and directors (the respective agents,
servants, officers, employees and directors of each of the foregoing Indemnitees, as applicable, together with such Indemnitee, collectively the “Related Indemnitee Group” of such Indemnitee); provided that such Persons, to
the extent they are not signatories to this Agreement, have expressly agreed in writing to be bound by the terms of this Section 4.02 prior to, or concurrently with, the making of a Claim. If any Indemnitee fails to comply with any duty or
obligation under this Section 4.02 with respect to any Claim, such Indemnitee shall not be entitled to any indemnity with respect to such Claim under this Section 4.02 to the extent such failure was prejudicial to Company. No holder of a
Pass Through Certificate in its capacity as such holder shall be an Indemnitee. 
 (c) Claims Indemnified. Subject to
the exclusions stated in Section 4.02(d), Company agrees to indemnify, protect, defend and hold harmless on an After-Tax Basis each Indemnitee against Claims resulting from or arising out of the sale,
purchase, acceptance, non-acceptance or rejection of the Aircraft under the Purchase Agreement or the ownership, possession, use, non-use, substitution, airworthiness,
control, maintenance, repair, operation, registration, re-registration, 

  
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condition, sale, lease, sublease, storage, modification, alteration, return, transfer or other disposition of the Aircraft, the Airframe, any Engine or any Part (including, without limitation,
latent or other defects, whether or not discoverable, and any claim for patent, trademark or copyright infringement) by Company, any Permitted Lessee or any other Person. Without limiting the foregoing and subject to, and without duplication of, the
provisions of Section 6.01(a), Company agrees to pay the reasonable ongoing fees, and the reasonable out-of-pocket costs and expenses actually incurred (including,
without limitation, reasonable attorney’s fees and disbursements actually incurred and, to the extent payable as provided in the Indenture, reasonable compensation and expenses of Loan Trustee’s agents actually incurred), of Loan Trustee
in connection with the transactions contemplated hereby. 
 (d) Claims Excluded. The following are excluded from
Company’s agreement to indemnify an Indemnitee under this Section 4.02: 
 (i) any Claim to the extent such Claim
is attributable to acts or events occurring after (A) the Lien of the Indenture has been discharged, or (B) the transfer of possession of the Aircraft pursuant to Article IV of the Indenture except to the extent that such
Claim is attributable to acts occurring in connection with the exercise of remedies pursuant to Section 4.02 of the Indenture following the occurrence and continuance of an Event of Default; 

(ii) any Claim to the extent such Claim is, or is attributable to, a Tax (or loss of any Tax benefit), except with respect to
paying indemnity amounts on an After-Tax Basis; 
 (iii) any Claim to the extent such
Claim is attributable to the negligence or willful misconduct of such Indemnitee or such Indemnitee’s Related Indemnitee Group; 

(iv) any Claim to the extent such Claim is attributable to the noncompliance by such Indemnitee or such Indemnitee’s
Related Indemnitee Group with any of the terms of, or any misrepresentation by an Indemnitee or its Related Indemnitee Group contained in, this Agreement, any other Operative Document or any Pass Through Document to which such Indemnitee or any of
such Related Indemnitee Group is a party or any agreement relating hereto or thereto; 
 (v) any Claim to the extent such
Claim constitutes a Lien attributable to such Indemnitee; 

  
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 (vi) any Claim to the extent such Claim is attributable to the offer, sale,
assignment, transfer, participation or other disposition (whether voluntary or involuntary) by or on behalf of such Indemnitee or its Related Indemnitee Group (other than during the occurrence and continuance of an Event of Default; provided
that any such offer, sale, assignment, transfer, participation or other disposition during the occurrence and continuation of an Event of Default shall not be subject to indemnification unless it is made in accordance with the Indenture and
applicable law) of any Equipment Note or interest therein or Pass Through Certificate, all or any part of such Indemnitee’s interest in the Operative Documents or the Pass Through Documents, or any interest in the Collateral or any similar
security; 
 (vii) any Claim to the extent such Claim is attributable to (A) a failure on the part of Loan
Trustee to distribute in accordance with this Agreement or any other Operative Document any amounts received and distributable by it hereunder or thereunder, (B) a failure on the part of Subordination Agent to distribute in accordance
with the Intercreditor Agreement any amounts received and distributable by it thereunder or (C) a failure on the part of any Pass Through Trustee to distribute in accordance with the Pass Through Trust Agreement to which it is a party
any amounts received and distributable by it thereunder; 
 (viii) any Claim to the extent such Claim is attributable to the
authorization or giving or withholding of any future amendments, supplements, waivers or consents with respect to any Operative Document or any Pass Through Document, other than such as have been requested by Company or that occur as the result of
an Event of Default, or such as are expressly required or contemplated by the provisions of the Operative Documents or the Pass Through Documents; 

(ix) any Claim to the extent such Claim is payable or borne by (A) Company pursuant to any indemnification,
compensation or reimbursement provision of any other Operative Document or any Pass Through Document or (B) a Person other than Company pursuant to any provision of any Operative Document or any Pass Through Document; 

(x) any Claim to the extent such Claim is an ordinary and usual operating or overhead expense or not an out-of-pocket expense actually incurred; 
 (xi)
any Claim to the extent such Claim is incurred on account of or asserted as a result of (A) any “prohibited transaction” within the meaning of Section 406 of ERISA or Section 4975 of the Code or any foreign, federal,
state or local law which is substantially similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code (“Similar Law”) or (B) any breach of fiduciary duty under ERISA; 

  
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 (xii) any Claim to the extent such Claim is attributable to one or more of
the other aircraft financed through the offering of Pass Through Certificates (in the event of doubt, any Claim shall be allocated between the Aircraft and such other aircraft in the same proportion that the then outstanding Equipment Notes bear to
the then outstanding equipment notes issued with respect to the other aircraft and held by Pass Through Trustees); 
 (xiii)
any Claim to the extent such Claim is attributable to any amount which any Indemnitee expressly agrees shall not be paid by, borne by, or reimbursed by Company; 

(xiv) any Claim by an Indemnitee related to the status of such Indemnitee as a passenger or shipper on any of Company’s
aircraft or as a party to a marketing or promotional or other commercial agreement with Company unrelated to the transactions contemplated by the Operative Documents; and 

(xv) any Claim to the extent such Claim is attributable to the offer or sale by an Indemnitee (or any member of such
Indemnitee’s Related Indemnitee Group) of any interest in the Aircraft, the Equipment Notes, the Pass Through Certificates, or any similar interest, in violation of the Securities Act or other applicable federal, state or foreign securities
laws (other than any thereof caused by acts or omissions of Company or any of its affiliates). 
 (e) Insured Claims.
In the case of any Claim indemnified by Company hereunder that is covered by a policy of insurance maintained by Company, each Indemnitee agrees to cooperate, at Company’s expense, with the insurers in the exercise of their rights to
investigate, defend and compromise such Claim. 
 (f) Claims Procedure. An Indemnitee shall promptly notify Company of
any Claim as to which indemnification is sought. The failure to provide such prompt notice shall not release Company from any of its obligations to indemnify hereunder except to the extent that Company is prejudiced by such failure or Company’s
indemnification obligations are increased as a result of such failure (in which event Company shall not be responsible for such additional indemnification obligations). Such Indemnitee shall promptly submit to Company

  
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all additional information in such Indemnitee’s possession to substantiate such Claim as Company reasonably requests. Subject to the rights of Company’s insurers, Company may, at its
sole cost and expense, investigate any Claim, and may in its sole discretion defend or compromise any Claim. At Company’s expense, any Indemnitee shall cooperate with all reasonable requests of Company in connection therewith. Such Indemnitee
shall not enter into a settlement or other compromise with respect to any Claim without the prior written consent of Company, which consent shall not be unreasonably withheld or delayed, unless such Indemnitee waives its right to be indemnified with
respect to such Claim. Where Company or its insurers 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 such Claim shall be indemnified hereunder
unless such fees or expenses were incurred at the written request of Company or such insurers. Subject to the requirements of any policy of insurance, an Indemnitee may participate at its own expense in any judicial proceeding controlled by Company
pursuant to the preceding provisions; provided that such party’s participation does not, in the opinion of outside counsel appointed by Company or its insurers to conduct such proceedings, interfere with such control. Such participation
shall not constitute a waiver of the indemnification provided in this Section 4.02. Notwithstanding anything to the contrary contained herein, Company shall not under any circumstances be liable for the fees and expenses of more than one
counsel for all Indemnitees with respect to any one Claim. Notwithstanding anything to the contrary contained herein, an Indemnitee shall not under any circumstances be required or deemed to be required to contest any Claim or to assume
responsibility for or control of any judicial proceeding with respect thereto. Company will provide the relevant Indemnitee with such information not within the control of such Indemnitee, as is in Company’s control or is reasonably available
to Company, which such Indemnitee may reasonably request and will otherwise cooperate with such Indemnitee so as to enable such Indemnitee to fulfill its obligations under this Section. If an Indemnitee is not a party to this Agreement, Company may
require such Indemnitee to agree in writing to the terms of this Section 4.02 and Section 7.10 of this Agreement prior to making any payment to such Indemnitee under this Section 4.02. 

(g) Subrogation. To the extent that a Claim is in fact paid in full by Company or its insurer, Company or such insurer
(as the case may be) shall, without any further action, be subrogated to the rights and remedies of the Indemnitee on whose behalf such Claim was paid with respect to the transaction or event giving rise to such Claim. Such Indemnitee shall give
such further assurances or agreements and shall cooperate with Company or such insurer, as the case may be, to permit Company or such insurer to pursue such rights and remedies, if any, to the extent reasonably requested by Company. So long as no
Event of Default has occurred and is continuing, if an Indemnitee receives any 

  
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payment, in whole or in part, from any party other than Company or its insurers with respect to any Claim paid by Company or its insurers, it shall promptly pay over to Company the amount
received (but not an amount in excess of the amount Company or any of its insurers has paid in respect of such Claim). Any amount referred to in the preceding sentence that is payable to Company shall not be paid to Company, or, if it has been
previously paid directly to Company, shall not be retained by Company, if at the time of such payment an Event of Default has occurred and is continuing, but shall be paid to and held by Loan Trustee as security for the obligations of Company under
the Operative Documents. If Company agrees, such amount payable shall be applied against Company’s obligations thereunder when and as they become due and payable. At such time as such Event of Default is no longer continuing, such amount, to
the extent not previously so applied against Company’s obligations, shall be paid to Company. 
 (h) No Guaranty.
Nothing set forth in this Section 4.02 constitutes a guarantee by Company that the Aircraft at any time will have any particular value, useful life or residual value. 

(i) Payments; Interest. Any amount payable to any Indemnitee on account of a Claim shall be paid within 30 days after
receipt by Company of a written demand therefor from such Indemnitee accompanied by a written statement describing in reasonable detail the Claims that are the subject of and basis for such indemnity and the computation of the amount payable. Any
payments made pursuant to this Section 4.02 directly to an Indemnitee or to Company, as the case may be, shall be made in immediately available funds at such bank or to such account as is specified by the payee in written directions to the
payor or, if no such directions are given, by check of the payor payable to the order of the payee and mailed to the payee by certified mail, return receipt requested, postage prepaid to its address referred to in Section 7.01. To the extent
permitted by applicable law, interest at the Past Due Rate shall be paid, on demand, on any amount or indemnity not paid when due pursuant to this Section 4.02 until the same is paid. Such interest shall be paid in the same manner as the unpaid
amount in respect of which such interest is due. 
 (j) Tax Deduction or Credit. If, by reason of any payment made to
or for the account of any Indemnitee by Company, or by reason of any Claim of any Indemnitee paid or indemnified against by Company, in each case pursuant to Section 4.02, such Indemnitee realizes a Tax deduction or credit not previously taken
into account in computing such payment, such Indemnitee shall promptly pay to Company an amount equal to the sum of (i) the actual reduction in Taxes realized by such Indemnitee which is attributable to such deduction or credit, and
(ii) the actual reduction in Taxes realized by such Indemnitee as a result of any payment made by such Indemnitee pursuant to this sentence; provided that the amount payable by such Indemnitee pursuant to this sentence shall not
exceed the 

  
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sum of all amounts previously paid by Company to such Indemnitee pursuant to this Section 4.02; provided, further, that any such excess shall be carried forward and applied to
reduce pro tanto any subsequent obligations of Company to make payments to such Indemnitee pursuant to Section 4.02. If such Tax deduction or credit is subsequently disallowed or lost, upon written notice from the Indemnitee Company
shall promptly repay all amounts paid to it pursuant to this Section 4.02(j) in respect of such disallowed or lost deduction or credit. If, at the time an amount would otherwise be payable to Company under this Section 4.02(j), any Event
of Default shall have occurred and be continuing, such amount shall be held by the relevant Indemnitee as security for the obligations of Company under the Operative Documents. At such time as no Event of Default is continuing, such amount or
portion thereof shall be applied to offset Company’s outstanding obligations under the Operative Documents and any remaining amount after such application shall be paid to Company. 

ARTICLE 5 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF U.S. BANK 

Section 5.01. Representations, Warranties and Covenants of U.S. Bank. U.S. Bank, generally, and as each of Loan Trustee, Subordination
Agent and Pass Through Trustee of the Pass Through Trusts in existence as of the Closing Date as it relates to it, represents, warrants and covenants that: 

(a) Organization; Authority. U.S. Bank is a national banking association duly organized and validly existing in good
standing under the laws of the United States, is eligible to be Loan Trustee under Section 8.01(a) of the Indenture, will promptly comply with Section 8.01(a) of the Indenture and has full power, authority and legal right to enter into and
perform its obligations under each of the Operative Documents and the Pass Through Documents to which U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee is a party and, in its capacity as Loan Trustee and Pass Through Trustee,
respectively, to authenticate the Equipment Notes and the Pass Through Certificates, respectively. U.S. Bank is qualified to act as Loan Trustee under Section 8.01(c) of the Indenture. U.S. Bank is a Citizen of the United States (without the
use of a voting trust agreement), and will resign as Loan Trustee under the Indenture promptly after it obtains actual knowledge that it has ceased to be such a Citizen of the United States. 

(b) Due Authorization; No Violations. The execution, delivery and performance by U.S. Bank, individually or in its
capacity as Loan Trustee, Subordination Agent or such Pass Through Trustee, as the case may be, of this Agreement, each of the other Operative Documents and each of the Pass Through Documents to which U.S. Bank, Loan Trustee, Subordination Agent or
any Pass Through Trustee is a party, the performance by U.S. Bank, individually or in its capacity as Loan Trustee, Subordination Agent or such Pass 

  
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Through Trustee, as the case may be, of its obligations thereunder and the consummation on the Closing Date or the Issuance Date, as the case may be, of the transactions contemplated thereby, and
the authentication of the Equipment Notes and the Pass Through Certificates, respectively, to be delivered on the Closing Date or the Issuance Date, as the case may be: (i) have been duly authorized by all necessary action on the part of
U.S. Bank, Loan Trustee, Subordination Agent and such Pass Through Trustee, as the case may be, (ii) do not violate any law or regulation of the United States or of the state of the United States in which U.S. Bank is located and which
governs the banking and trust powers of U.S. Bank or any order, writ, judgment or decree of any court, arbitrator or governmental authority applicable to U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee or any of their
assets, (iii) will not violate any provision of the articles of association or by-laws of U.S. Bank and (iv) will not violate any provision of, or constitute a default under, any
mortgage, indenture, contract, agreement or undertaking to which any of U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee is a party or by which any of them or their respective properties may be bound or affected. 

(c) Approvals. Neither the execution and delivery by U.S. Bank, individually or in its capacity as Loan Trustee,
Subordination Agent or such Pass Through Trustee, as the case may be, of this Agreement, any other Operative Document or any Pass Through Document to which U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee is a party, nor the
consummation by U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee of any of the transactions contemplated hereby or thereby, requires the authorization, consent or approval of, the giving of notice to, the filing or
registration with, or the taking of any other action in respect of, (i) any governmental authority or agency of the United States or the state of the United States where U.S. Bank is located and regulating the banking and trust powers of
U.S. Bank or (ii) any trustee or other holder of any debt of U.S. Bank. 
 (d) Valid and Binding
Agreements. This Agreement, each other Operative Document and each Pass Through Document to which U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee is a party have been duly executed and delivered by U.S. Bank,
individually and in its capacity as Loan Trustee, Subordination Agent or such Pass Through Trustee, as the case may be, and constitute the legal, valid and binding obligations of U.S. Bank, Loan Trustee, Subordination Agent and such Pass Through
Trustee, as the case may be, enforceable against it in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights of creditors generally and by
general principles of equity. 

  
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 (e) No Loan Trustee Liens or Other Party Liens. It unconditionally
agrees with and for the benefit of the parties to this Agreement that it will not directly or indirectly create, incur, assume or suffer to exist any Loan Trustee Lien or Other Party Lien attributable to it, and it agrees that it will, at its own
cost and expense, promptly take such action as may be necessary to discharge and satisfy in full any such Lien. 
 (f)
Intercreditor Agreement. The Equipment Notes to be issued to Subordination Agent pursuant hereto are being acquired by it to be held under the Intercreditor Agreement. 

(g) Funds Transfer Fees. Each of U.S. Bank, Loan Trustee, Subordination Agent and such Pass Through Trustee agrees that
it will not impose any lifting charge, cable charge, remittance charge or any other charge or fee on any transfer by Company of funds to, through or by U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee pursuant to this
Agreement, any other Operative Document or any Pass Through Document, except as may be otherwise agreed to in writing by Company. 

(h) Confidentiality. Each of U.S. Bank, Loan Trustee, Subordination Agent and such Pass Through Trustee agrees to be
bound by the terms of Section 10.16 of the Indenture. 
 (i) Certain Tax Matters. There are no Taxes payable by
(i) U.S. Bank, Loan Trustee or Subordination Agent imposed by the State of Washington or any political subdivision or taxing authority thereof, or (ii) U.S. Bank or such Pass Through Trustee imposed by the State of Delaware
or any political subdivision or taxing authority thereof, in connection with the execution, delivery or performance by U.S. Bank, Loan Trustee or Subordination Agent on the one hand, or U.S. Bank or such Pass Through Trustee, on the other, of any
Operative Document or any Pass Through Document (other than franchise or other Taxes based on or measured by any fees or compensation received by any such Person for services rendered in connection with the transactions contemplated by the Operative
Documents or the Pass Through Documents), and there are no Taxes payable by such Pass Through Trustee imposed by the State of Delaware or any political subdivision thereof in connection with the acquisition, possession or ownership by such Pass
Through Trustee of any of the Equipment Notes (other than franchise or other Taxes based on or measured by any fees or compensation received by such Pass Through Trustee for services rendered in connection with the transactions contemplated by the
Operative Documents or the Pass Through Documents) and, assuming that the Pass Through Trusts will not be taxable for Federal income tax purposes as corporations, but, rather, will be characterized for such purposes as grantor trusts or
partnerships, the Pass Through Trusts in existence as of the Closing Date will not be subject to any Taxes imposed by the State of Delaware or any political subdivision thereof. 

  
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 (j) Limitation on Situs of Activities. Except with the consent of
Company, which shall not be unreasonably withheld: (i) U.S. Bank will act as Pass Through Trustee solely through its offices within the State of Delaware, except for such services as may be performed for it by independent agents in the
ordinary course of business, but not directly by it, in other states; and (ii) U.S. Bank will act as Subordination Agent and Loan Trustee solely through its offices within the State of Washington, except for such services as may be
performed for it by independent agents in the ordinary course of business, but not directly by it, in other states. 
 (k)
No Proceedings. There are no pending or, to its knowledge, threatened actions or proceedings against U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee before any court or administrative agency which individually or in
the aggregate, if determined adversely to it, would materially adversely affect the ability of U.S. Bank, Loan Trustee, Subordination Agent or such Pass Through Trustee to perform its obligations under any Operative Document or any Pass Through
Document. 
 (l) Other Representations. The representations and warranties contained in Section 7.15 of the Basic
Pass Through Trust Agreement and Section 7.04 of each Trust Supplement are true, complete and correct as of the Closing Date. 

ARTICLE 6 
 OTHER
COVENANTS AND AGREEMENTS 
 Section 6.01. Other Agreements. (a) Fees and Expenses. Company agrees promptly to
pay (without duplication of any other obligation Company may have to pay such amounts) (1) the initial and annual fees and (to the extent Loan Trustee is entitled to be reimbursed for its reasonable expenses) the reasonable expenses of
Loan Trustee in connection with the transactions contemplated hereby and (2) the following expenses incurred by Loan Trustee, Subordination Agent and Pass Through Trustees in connection with the negotiation, preparation, execution and
delivery of this Agreement, the other Operative Documents and the other documents or instruments referred to herein or therein: 

(i) the reasonable fees, expenses and disbursements of (A) Shipman & Goodwin LLP, special counsel for Loan
Trustee, Subordination Agent and Pass Through Trustees of the Pass Through Trusts in existence as of the Closing Date, (B) Dorsey & Whitney LLP, 

  
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special Washington counsel for Loan Trustee, (C) Crowe & Dunlevy PC, special FAA counsel in Oklahoma City, Oklahoma, and (D) Richards, Layton & Finger P.A., special
Delaware counsel for Pass Through Trustees of the Pass Through Trusts in existence as of the Closing Date, in each case to the extent actually incurred; and 

(ii) all reasonable expenses actually incurred in connection with printing and document production or reproduction expenses,
and in connection with the filing of Uniform Commercial Code financing statements. 
 (b) Continuing Registration and Re-Registration. Loan Trustee, Noteholders, Subordination Agent and each Pass Through Trustee agree to execute and deliver, at Company’s expense, all such documents and consents as Company reasonably
requests for the purpose of continuing the registration of the Aircraft at the FAA in Company’s name or for the purpose of registering or maintaining any registration on the International Registry in respect of the Aircraft. In addition, each
of Loan Trustee, Subordination Agent, each Pass Through Trustee and any other Noteholder agrees, for the benefit of Company, to cooperate with Company in effecting any foreign registration of the Aircraft pursuant to Section 7.02(e) of the
Indenture; provided that prior to any such change in the country of registry of the Aircraft the conditions set forth in Section 7.02(e) of the Indenture are met to the reasonable satisfaction of, or waived by, Loan Trustee. 

(c) Quiet Enjoyment. Each of U.S. Bank, Loan Trustee, Subordination Agent, each Pass Through Trustee, any other
Noteholder, Class A Liquidity Provider (by having entered into the Class A Liquidity Facility) and Class B Liquidity Provider (by having entered into the Class B Liquidity Facility) agrees that, unless an Event of Default shall
have occurred and be continuing, it shall not (and shall not permit any Affiliate or other Person claiming by, through or under it to) take any action contrary to, or otherwise in any way interfere with or disturb (and then only in accordance with
the Indenture), the quiet enjoyment of the use and possession of the Aircraft, the Airframe, any Engine or any Part by Company or any transferee of any interest in any thereof permitted under the Indenture. 

(d) No Noteholder Liens. Each Noteholder, including, without limitation, Subordination Agent and each Pass Through
Trustee, unconditionally agrees with and for the benefit of the parties to this Agreement that it will not directly or indirectly create, incur, assume or suffer to exist any Noteholder Liens, and such Noteholder agrees that it will, at its own cost
and expense, promptly take such action as may be necessary to discharge and satisfy in full any such Noteholder Lien; and each Noteholder hereby agrees to indemnify, protect, defend and hold harmless each Indemnitee and Company against claims in any
way resulting from or arising out of a breach by it of its obligations under this Section 6.01(d). 

  
 23 

Participation Agreement (2020-1 EETC) 

N568AS 

 (e) Agreement to be Bound; Transfer. By its acceptance of its
Equipment Notes, each Noteholder unconditionally agrees for the benefit of Company and Loan Trustee: (i) to be bound by and to perform and comply with all of the terms of such Equipment Notes, the Indenture and this Agreement applicable
to such Noteholder and (ii) that it will not transfer any Equipment Note (or any part thereof) to any entity unless such transfer complies with and does not violate the Transportation Code, the Securities Act (or require registration
under such Act) or any other law (including, without limitation, ERISA, the Code and Similar Law), and does not create a relationship that would be in violation thereof, or result in a “prohibited transaction” under Section 406 of
ERISA, Section 4975 of the Code or Similar Law or require qualification of an indenture under the Trust Indenture Act. 

(f) Tax Returns. Each Pass Through Trustee shall file any Tax returns required to be filed by the related Pass Through
Trust and Company shall pay the Applicable Portion of any expenses relating thereto. Company shall be responsible for the Applicable Portion of any interest or penalties related to any Pass Through Trustee’s failure to file any such Tax returns
required to be filed by the relevant Pass Through Trust, except to the extent that such failure is attributable to the gross negligence or willful misconduct of such Pass Through Trustee. For purposes of this Section 6.01(f), the
“Applicable Portion” of any amount shall equal such amount multiplied by a fraction, the numerator of which shall be the sum of the then outstanding aggregate principal amount of the Equipment Notes held by the relevant Pass Through
Trustee, and the denominator of which shall be the sum of the outstanding aggregate principal amount of all “Equipment Notes” issued under each of the “Indentures” (in each case as defined in the Intercreditor Agreement) held by
such Pass Through Trustee. 
 (g) No Petition. Each of Company, Loan Trustee, each Pass Through Trustee, Subordination
Agent and any other Noteholder covenants that (i) until one year and one day after the Series A Equipment Notes have been paid in full, it shall not acquiesce, petition or otherwise invoke or cause or join in invoking or causing the
Class A Pass Through Trust or any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case (whether voluntary or not) against the Class A Pass Through Trust under any bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Class A Pass Through Trust or any substantial part of its property or ordering the winding-up or liquidation of the affairs of the Class A Pass Through Trust, (ii) if any Series B Equipment Notes shall have been issued, until one year and one day after

  
 24 

Participation Agreement (2020-1 EETC) 

N568AS 

 
such Series B Equipment Notes have been paid in full, it shall not acquiesce, petition or otherwise invoke or cause or join in invoking or causing the Class B Pass Through Trust or any other
Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case (whether voluntary or not) against such Class B Pass Through Trust under any bankruptcy, insolvency or similar law or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of such Class B Pass Through Trust or any substantial part of its property or ordering the winding-up or
liquidation of the affairs of such Class B Pass Through Trust, and (iii) if any Additional Series Equipment Notes of any Series shall have been issued, until one year and one day after such Additional Series Equipment Notes have
been paid in full, it shall not acquiesce, petition or otherwise invoke or cause or join in invoking or causing the related Additional Series Pass Through Trust or any other Person to invoke the process of any governmental authority for the purpose
of commencing or sustaining a case (whether voluntary or not) against such Additional Series Pass Through Trust under any bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of such Additional Series Pass Through Trust or any substantial part of its property or ordering the winding-up or liquidation of the affairs of such Additional Series Pass Through Trust. 

Section 6.02. Certain Covenants of Company. Company covenants and agrees with Loan Trustee as follows: 

(a) Further Assurances. On and after the Closing, Company will cause to be done, executed, acknowledged and delivered
such further acts, conveyances and assurances as Loan Trustee reasonably requests for accomplishing the purposes of this Agreement and the other Operative Documents; provided that any instrument or other document so executed by Company will
not expand any obligations or limit any rights of Company in respect of the transactions contemplated by the Operative Documents. 

(b) Filing and Recordation of the Indenture; Registration of International Interests. Company, at its expense, will
cause the Indenture (with the Indenture Supplement covering the Aircraft attached) to be promptly filed and recorded, or filed for recording, with the FAA to the extent permitted under the Transportation Code and the rules and regulations of the FAA
thereunder. In addition, on or prior to the Closing Date, Company will cause the registration of the International Interests (or Prospective International Interests) created under the Indenture (as supplemented by the Indenture Supplement with
respect to the Aircraft) to be effected (or shall be in the process of being so effected) on the International Registry in accordance with the Cape Town Treaty, and shall, as and to the extent applicable, consent to such registration upon the
issuance of a request for such consent by the International Registry. 

  
 25 

Participation Agreement (2020-1 EETC) 

N568AS 

 (c) Maintenance of Filings. Company, at its expense, will take, or
cause to be taken, such action with respect to the recording, filing, re-recording and refiling of the Indenture and any financing statements or other instruments as are necessary to maintain, so long as the
Indenture is in effect, the perfection of the security interests created by the Indenture or will furnish Loan Trustee timely notice of the necessity of such action, together with such instruments, in execution form, and such other information as
may be required to enable Loan Trustee to take such action. In addition, Company will pay any and all recording, stamp and other similar Taxes payable in the United States, and in any other jurisdiction where the Aircraft is registered, in
connection with the execution, delivery, recording, filing, re-recording and refiling of the Indenture or any such financing statements or other instruments. Company will notify Loan Trustee of any change in
its jurisdiction of organization (as such term is used in Article 9 of the Uniform Commercial Code as in effect in the State of Alaska) promptly after making such change or in any event within the period of time necessary under applicable law to
prevent the lapse of perfection (absent refiling) of financing statements filed under the Operative Documents. 
 (d)
Maintenance of Corporate Existence. Company shall at all times maintain its corporate existence except as permitted by Section 6.02(e). 

(e) Merger; Consolidation; Transfer of Substantially All Assets. Company shall not consolidate with or merge into any
other Person or convey, transfer or lease substantially all of its assets as an entirety to any Person, unless: 
 (i) the
successor or transferee entity shall, if and to the extent required under Section 1110 in order that Loan Trustee continues to be entitled to any benefits of Section 1110 with respect to the Aircraft, be a Citizen of the United States and
a Certificated Air Carrier and shall execute and deliver to Loan Trustee an agreement containing the express assumption by such successor or transferee entity of the due and punctual performance and observance of each covenant and condition of the
Operative Documents to which Company is a party to be performed or observed by Company; 
 (ii) if the Aircraft is, at the
time, registered with the FAA or such Person is located in a “Contracting State” (as such term is used in the Cape Town Treaty), such Person makes such filings and recordings with the FAA pursuant to the Transportation Code and
registration under the Cape Town Treaty, or if the Aircraft is, at the time, not registered with the FAA, such Person makes such filings and recordings with the applicable aviation authority, as are necessary to evidence such consolidation, merger,
conveyance, transfer or lease; 

  
 26 

Participation Agreement (2020-1 EETC) 

N568AS 

 (iii) immediately after giving effect to such transaction, no Event of
Default shall have occurred and be continuing; and 
 (iv) Company shall deliver to Loan Trustee and each Liquidity Provider
a certificate signed by a Responsible Officer of Company stating that such consolidation, merger, conveyance, transfer or lease and the assumption agreement mentioned in clause (i) above comply with this Section 6.02(e) and that all
conditions precedent herein relating to such transaction have been complied with. 
 Upon any consolidation or merger, or any
conveyance, transfer or lease of substantially all of the assets of Company as an entirety in accordance with this Section 6.02(e), the successor Person formed by such consolidation or into which Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, Company under this Agreement and the other Operative Documents with the same effect as if such successor Person had been named as Company
herein. 
 (f) Section 1110. Company shall remain a Certificated Air Carrier for as long as and to the extent
required under Section 1110 in order that Loan Trustee shall be entitled to any of the benefits of Section 1110 with respect to the Aircraft. 

(g) Additional Information. Promptly after the occurrence of a Triggering Event or an Indenture Event of Default
resulting from the failure of Company to make payments on any Equipment Note and on every Regular Distribution Date while the Triggering Event or such Indenture Event of Default shall be continuing, Company will, at the Subordination Agent’s
request from time to time but in any event no more frequently than once every three months, provide to the Subordination Agent a statement setting forth the following information with respect to the Aircraft if then subject to the lien of the
Indenture: (A) whether the Aircraft is currently in service or parked in storage, (B) the maintenance status of the Aircraft, and (C) the location of the Engines. As used in this Section 6.02(g), the terms
“Triggering Event”, “Indenture Event of Default” and “Regular Distribution Date” shall have the respective meanings set forth in the Intercreditor Agreement. 

ARTICLE 7 

MISCELLANEOUS 

Section 7.01. Notices. Unless otherwise expressly specified or permitted by the terms hereof, all notices required or permitted
under the terms and provisions of this Agreement shall be in English and in writing, and any such notice may be given by 

  
 27 

Participation Agreement (2020-1 EETC) 

N568AS 

 
United States mail, courier service or facsimile, and any such notice shall be effective when delivered (or, if mailed, three Business Days after deposit, postage prepaid, in the first class
United States mail, and if delivered by facsimile, upon completion of transmission and confirmation by the sender (by a telephone call to a representative of the recipient or by machine confirmation) that such transmission was received) addressed as
follows: 
 if to Company, addressed to: 

Alaska Airlines, Inc. 
 19300
International Boulevard 
 Seattle, WA 98188 

Attention: Chief Financial Officer 

Telephone: [***] 
 with a copy
to: 
 Alaska Air Group, Inc. 

19300 International Boulevard 

Seattle, WA 98188 
 Attention:
Chief Financial Officer 
 Telephone: [***] 

if to any Pass Through Trustee, addressed to: 

U.S. Bank Trust National Association 

1011 Centre Road, Suite 
 203
Delle Donne Corporate Center 
 Wilmington, Delaware 19805 

Attention: Corporate Trust Services 

Ref.: Alaska Air 2020-1 EETC 

Telephone: [***] 
 Facsimile:
[***] 
 with a copy to: 
 U.S.
Bank Trust National Association 
 Seattle Tower 

1420 Fifth Avenue 
 Seattle,
Washington 98101 PD-WA-T7CT 
 Attention: Corporate Trust
Services 
 Ref.: Alaska Air 2020-1 EETC 

Telephone: [***] 
 Facsimile:
[***] 

  
 28 

Participation Agreement (2020-1 EETC) 

N568AS 

 if to U.S. Bank, Loan Trustee or Subordination Agent, addressed to: 

U.S. Bank Trust National Association 

Seattle Tower 
 1420 Fifth
Avenue 
 Seattle, Washington 98101 

Attention: Corporate Trust Services 

Ref.: Alaska Air 2020-1 EETC 

Telephone: [***] 
 Facsimile:
[***] 
 or if to any subsequent Noteholder, addressed to such Noteholder at its address set forth in the Equipment Note Register maintained pursuant to
Section 2.07 of the Indenture. 
 Any party, by notice to the other parties hereto, may designate different addresses for subsequent
notices or communications. Whenever the words “notice” or “notify” or similar words are used herein, they mean the provision of formal notice as set forth in this Section 7.01. 

Section 7.02. Survival of Representations, Warranties, Indemnities, Covenants and Agreements. The indemnities set forth in
Section 4.02 of this Agreement and the confidentiality obligations set forth in Section 5.01(h) of this Agreement shall survive the making of the loans, the transfer of any interest by any Noteholder of its Equipment Note and the
expiration or termination of any Operative Documents (in the case of the indemnities, to the extent arising out of acts or events occurring prior to such expiration or termination). 

Section 7.03. Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 

Section 7.04. Severability. To the extent permitted by applicable law, any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

  
 29 

Participation Agreement (2020-1 EETC) 

N568AS 

 Section 7.05. No Oral Modifications or Continuing Waivers; Consents. Subject to
Section 9.03 of the Indenture, no terms or provisions of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which the enforcement of the change, waiver,
discharge or termination is sought. No such change, waiver, discharge or termination shall be effective unless a signed copy thereof is delivered to Loan Trustee. 

Section 7.06. Effect of Headings and Table of Contents. The headings of the various Articles and Sections herein and in the Table
of Contents are for convenience of reference only and do not define or limit any of the terms or provisions hereof. 
 Section 7.07.
Successors and Assigns. All covenants, agreements, representations and warranties in this Agreement by Company, by U.S. Bank, individually or as Loan Trustee, Subordination Agent or Pass Through Trustee, or by any Noteholder, shall bind and
inure to the benefit of and be enforceable by Company, and subject to the terms of Section 6.02(e), its successors and permitted assigns, each Pass Through Trustee and any successor or other trustee under the Pass Through Trust Agreement to
which it is a party, Subordination Agent and its successor under the Intercreditor Agreement and Loan Trustee and its successor under the Indenture, whether so expressed or not. 

Section 7.08. Benefits of Agreement. Subject to the next sentence, nothing in this Agreement, express or implied, gives to any
Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim under this Agreement, except as expressly provided herein. Company agrees and acknowledges that each Liquidity
Provider, and each separate or additional trustee appointed pursuant to Section 8.02 of the Indenture shall be third party beneficiaries of the covenants and agreements of Company with respect to the indemnities contained in Section 4.02
and may rely on the covenants and agreements of Company with respect to such indemnities to the same extent as if the covenants and agreements of Company with respect to such indemnities were made to such Liquidity Provider or such trustee, as the
case may be, directly. U.S. Bank generally, and each of the Loan Trustee, the Subordination Agent and each Pass Through Trustee, insofar as relating to each such Person, agrees and acknowledges that each Liquidity Provider is a third party
beneficiary of the representations and warranties set forth in Section 5.01, and that such Liquidity Provider may rely on such representations and warranties to the same extent as if such representations and warranties were made to such
Liquidity Provider directly. 
 Section 7.09. Counterparts. This Agreement may be executed in any number of counterparts. Each
of the parties hereto shall not be required to execute the same counterpart. Each counterpart of this Agreement including a signature page or pages executed by each of the parties hereto shall be an original counterpart of this Agreement, but all of
such counterparts shall together constitute one instrument. 

  
 30 

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 Section 7.10. Submission to Jurisdiction. Each of the parties hereto, to the
extent it may do so under applicable law, for purposes hereof and of all other Operative Documents hereby (a) irrevocably submits itself to the non-exclusive jurisdiction of the courts of the State
of New York sitting in the City of New York and to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York, for the purposes of any suit, action or other
proceeding arising out of this Agreement, the subject matter hereof or any of the transactions contemplated hereby brought by any party or parties hereto or thereto, or their successors or permitted assigns and (b) waives, and agrees not
to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this
Agreement or the subject matter hereof or any of the transactions contemplated hereby may not be enforced in or by such courts. 

Section 7.11. Further Assurances. Each party hereto shall execute, acknowledge and deliver or shall cause to be executed,
acknowledged and delivered, all such further agreements, instruments, certificates or documents, and shall do and cause to be done such further acts and things, including, without limitation, making or consenting to registrations (or discharges
thereof, as appropriate) with respect to the Indenture on the International Registry and appointing Crowe & Dunlevy, P.C. (or another qualified FAA counsel), as its “professional user entity” (as defined in the Cape Town Treaty)
to make or consent to any registrations (or discharges thereof, as appropriate) on the International Registry with respect to the Airframe or any Engine, in any case, as any other party hereto shall reasonably request in connection with the
administration of, or to carry out more effectively the purposes of, or to better assure and confirm into such other party the rights and benefits to be provided under this Agreement, the other Operative Documents and the Pass Through Documents.

 Section 7.12. Section 1110. It is the intention of each of Company, Noteholders (such intention being evidenced by each of
their acceptance of an Equipment Note), Loan Trustee and other parties hereto that the security interest created by the Indenture, to the fullest extent available under applicable law, entitles the Loan Trustee, on behalf of the Noteholders, to all
of the benefits of Section 1110 with respect to the Aircraft, Airframe, Engines and Parts. 
  

  
 31 

Participation Agreement (2020-1 EETC) 

N568AS 

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

					
	ALASKA AIRLINES, INC.
		
	By:	 	 /s/ Nathaniel Pieper

		 	Name:	 	Nathaniel Pieper
		 	Title:	 	Senior Vice President, Fleet,
		 		 	Finance and Alliances, and Treasurer
	
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Pass Through Trustee under each of the Pass Through Trust Agreements in effect as of the date hereof
		
	By:	 	 /s/ Richard Krupske

		 	Name:	 	Richard Krupske
		 	Title:	 	Assistant Vice President
	
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Subordination Agent
		
	By:	 	 /s/ Richard Krupske

		 	Name:	 	Richard Krupske
		 	Title:	 	Assistant Vice President
	
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Loan Trustee
		
	By:	 	 /s/ Richard Krupske

		 	Name:	 	Richard Krupske
		 	Title:	 	Assistant Vice President

 Signature Page 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 
					
	U.S. BANK TRUST NATIONAL ASSOCIATION, in its individual capacity as set forth herein
		
	By:	 	 /s/ Richard Krupske

		 	Name:	 	Richard Krupske
		 	Title:	 	Assistant Vice President

 Signature Page 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 SCHEDULE I to 

PARTICIPATION AGREEMENT 
 EQUIPMENT
NOTES, 
 PURCHASERS AND ORIGINAL PRINCIPAL AMOUNTS 
  

													
	 Purchaser
	  	 Description of

Equipment
 Notes
	  	Maturity	  	Interest
Rate	 	 	Original Principal
Amount	 
	 Alaska Air Pass Through Trust 2020-1A
	  	 Series 2020-1A-N568AS

Equipment Note
	  	August 15,
2027	  	 	4.800	% 	 	$	11,675,000	 
	 Alaska Air Pass Through Trust 2020-1B
	  	 Series 2020-1B-N568AS

Equipment Note
	  	August 15,
2025	  	 	8.000	% 	 	$	2,517,000	 

 ACCOUNT DETAILS 
  

			
	 U.S. BANK: 
 U.S. Bank Trust National
Association, Loan Trustee, Class A Trustee, Class B Trustee and Subordination Agent
	  	 Bank: US Bank NA
 60 Livingston Avenue

Saint Paul, MN 55107
 A/C Name: [***]

ABA No.: [***]
 Account No.: [***]

Attention: [***]
 Reference: [***]

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 SCHEDULE II to 

PARTICIPATION AGREEMENT 
 TRUST
SUPPLEMENTS 
 Trust Supplement No. 2020-1A, dated as of the Issuance Date, among Company, Affiliate
Guarantor and Pass Through Trustee in respect of Alaska Air Pass Through Trust 2020-1A. 
 Trust
Supplement No. 2020-1B, dated as of the Issuance Date, among Company, Affiliate Guarantor and Pass Through Trustee in respect of Alaska Air Pass Through Trust 2020-1B.

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT A-1 to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 COMPANY’S LEGAL DEPARTMENT 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT A-2 to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 SPECIAL COUNSEL FOR COMPANY 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT A-3 to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 SPECIAL COUNSEL FOR COMPANY, 

REGARDING SECTION 1110 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT B to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 SPECIAL COUNSEL FOR LOAN TRUSTEE, PASS THROUGH TRUSTEES, 

SUBORDINATION AGENT AND U.S. BANK 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT C to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 SPECIAL FAA COUNSEL 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT D-1 to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 SPECIAL DELAWARE TAX COUNSEL FOR PASS THROUGH TRUSTEES 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT D-2 to 

PARTICIPATION AGREEMENT 
 FORM OF
OPINION OF 
 SPECIAL ALASKA UCC COUNSEL 

[Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 EXHIBIT E to 

PARTICIPATION AGREEMENT 
 FORM OF
MANUFACTURER’S CONSENT 
 [Attached.] 

  
 Participation Agreement
(2020-1 EETC) 
 N568AS 

 Annex A to 

Participation Agreement and 

Indenture and Security Agreement 

(N568AS) 
 DEFINITIONS 

(N568AS) 

“Additional Insureds” has the meaning specified in Section 7.06(a) of the Indenture. 

“Additional Series” or “Additional Series Equipment Notes” means Equipment Notes issued under the Indenture
and designated as a Series (other than “Series A” or “Series B”) thereunder in the principal amounts and maturities and bearing interest as specified in Schedule I to the Indenture amended at the time of original issuance of such
Additional Series under the heading for such Series. 
 “Additional Series Pass Through Certificates” means the pass
through certificates issued by any Additional Series Pass Through Trust. 
 “Additional Series Pass Through Trust” means a
grantor trust created to facilitate the issuance and sale of pass through certificates in connection with the issuance of any Additional Series Equipment Notes. 

“Additional Series Pass Through Trust Agreement” means a Trust Supplement entered into in connection with the creation of an
Additional Series Pass Through Trust, together with the Basic Pass Through Trust Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Additional Series Pass Through Trustee” means, with respect to any Additional Series Pass Through Trust, the trustee under
the Additional Series Pass Through Trust Agreement for such Additional Series Pass Through Trust. 
 “Affiliate” means with
respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person. For the purposes of this definition, “control” (including “controlled by” and “under common
control with”) shall mean the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person whether through the ownership of voting securities or by contract or otherwise. In no event shall U.S.
Bank be deemed to be an Affiliate of Loan Trustee or vice versa. 
 “Affiliate Guarantor” means Horizon Air Industries,
Inc., a Washington corporation. 
 “After-Tax Basis” means that indemnity and
compensation payments required to be made on such basis will be supplemented by the Person paying the base amount by that amount which, when added to such base amount, and after deduction of all Federal, state, local and foreign Taxes required to be
paid by or on behalf of the payee with respect of the receipt or realization of the base amount and any such supplemental amounts, and after consideration of any current tax savings of such payee resulting by way of any deduction, credit or other
tax benefit actually and currently realized that is attributable to such base amount or Tax, shall net such payee the full amount of such base amount. 
  

  
 Annex A (2020-1 EETC) 

N568AS 

 “Agreement” and “Participation Agreement” mean that
certain Participation Agreement (N568AS), dated on or before the Closing Date, among Company, U.S. Bank, Pass Through Trustee under each Pass Through Trust Agreement in effect as of the date of execution and delivery of such Participation Agreement,
Subordination Agent and Loan Trustee, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Aircraft” means the Airframe (or any Substitute Airframe or Replacement Airframe substituted therefor pursuant to
Section 7.04 or Section 7.05, respectively, of the Indenture) together with the two Engines described in the Indenture Supplement originally executed and delivered under the Indenture (or any Replacement Engine that may from time to time
be substituted for any of such Engines pursuant to Section 7.04 or Section 7.05 of the Indenture), whether or not any of such initial or substituted Engines is from time to time installed on such Airframe or installed on any other airframe
or on any other aircraft. The term “Aircraft” includes any Replacement Aircraft. 
 “Aircraft Protocol” means the
official English language text of the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, adopted on November 16, 2001, at a diplomatic conference in Cape Town, South Africa, and
all amendments, supplements, and revisions thereto (and from and after the effective date of the Cape Town Treaty in the relevant country, means when referring to the Aircraft Protocol with respect to that country, the Aircraft Protocol as in effect
in such country, unless otherwise indicated). 
 “Airframe” means (a) the Boeing
737-890 (generic manufacturer and model BOEING 737-800) aircraft (except (i) the Engines or engines from time to time installed thereon and any and all Parts
related to such Engine or engines and (ii) Excluded Equipment) specified on Annex A to the Indenture Supplement originally executed and delivered under the Indenture and (b) any and all related Parts. The term
“Airframe” includes any Substitute Airframe or Replacement Airframe that is substituted for the Airframe pursuant to Section 7.04 or Section 7.05, respectively, of the Indenture. At such time as any Substitute Airframe or
Replacement Airframe is so substituted and the Airframe for which such substitution is made is released from the Lien of the Indenture, such replaced Airframe shall cease to be an Airframe under the Indenture. 

“Appraisers” has the meaning set forth in the Intercreditor Agreement. 

“Bankruptcy Code” means the United States Bankruptcy Code, 11 United States Code §§101 et seq., as amended from
time to time, or any successor statutes thereto. 
 “Basic Pass Through Trust Agreement” means that certain Pass Through
Trust Agreement, dated as of July 2, 2020, among Company, Affiliate Guarantor and U.S. Bank, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms (but does not include any Trust
Supplement). 

  
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 “Business Day” means any day other than a Saturday, a Sunday or a day on
which commercial banks are required or authorized to close in New York, New York, Seattle, Washington, Wilmington, Delaware or, if different from the foregoing, the city and state in which Loan Trustee, any Pass Through Trustee or Subordination
Agent maintains its Corporate Trust Office or receives and disburses funds. 
 “Cape Town Convention” means the official
English language text of the Convention on International Interests in Mobile Equipment, adopted on November 16, 2001, at a diplomatic conference in Cape Town, South Africa, and all amendments, supplements, and revisions thereto (and from and
after the effective date of the Cape Town Treaty in the relevant country, means when referring to the Cape Town Convention with respect to that country, the Cape Town Convention as in effect in such country, unless otherwise indicated). 

“Cape Town Treaty” means, collectively, the official English language text of (a) the Convention on International
Interests in Mobile Equipment, and (b) the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, in each case adopted on November 16, 2001, at a diplomatic conference in
Cape Town, South Africa, and from and after the effective date of the Cape Town Treaty in the relevant country, means when referring to the Cape Town Treaty with respect to that country, the Cape Town Treaty as in effect in such country, unless
otherwise indicated, and (c) all rules and regulations adopted pursuant thereto and, in the case of each of the foregoing described in clauses (a) through (c), all amendments, supplements, and revisions thereto. 

“Certificate Purchase Agreement” means each of (i) that certain Purchase Agreement, dated June 23, 2020, relating
to the Class A Certificates, among Company, Parent, Affiliate Guarantor and BofA Securities, Inc. and Citigroup Global Markets, Inc., as representative of the Initial Purchasers listed on Schedule I thereto, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its terms and (ii) that certain Purchase Agreement, dated June 24, 2020, relating to the Class B Certificates, among Company, Parent, Affiliate Guarantor and BofA
Securities, Inc. and Citigroup Global Markets, Inc., as representative of the Initial Purchasers listed on Schedule I thereto, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Certificated Air Carrier” means a Citizen of the United States holding an air carrier operating certificate issued by the
Secretary of Transportation pursuant to Chapter 447 of Title 49 of the United States Code for aircraft capable of carrying ten or more individuals or 6,000 pounds or more of cargo or that otherwise is certified or registered to the extent required
to fall within the purview of Section 1110. 
 “Citizen of the United States” has the meaning specified for such term
in Section 40102(a)(15) of Title 49 of the United States Code or any similar legislation of the United States enacted in substitution or replacement therefor. 

“Claim” has the meaning specified in Section 4.02(a) of the Participation Agreement. 

  
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 “Class A Certificates” means Pass Through Certificates
issued by the Class A Pass Through Trust. 
 “Class A Liquidity Facility” has the meaning set forth
in the Intercreditor Agreement. 
 “Class A Liquidity Provider” has the meaning set forth in the
Intercreditor Agreement. 
 “Class A Pass Through Trust” means the Alaska Air Pass Through Trust 2020-1A created pursuant to the Basic Pass Through Trust Agreement, as supplemented by Trust Supplement No. 2020-1A, dated as of the Issuance Date, among Company, Affiliate
Guarantor and U.S. Bank, as Class A Trustee. 
 “Class A Trustee” means the trustee for the
Class A Pass Through Trust. 
 “Class B Certificates” means Pass Through Certificates, if any,
issued by any Class B Pass Through Trust. 
 “Class B Liquidity Facility” has the meaning set forth
in the Intercreditor Agreement. 
 “Class B Liquidity Provider” has the meaning set forth in the
Intercreditor Agreement. 
 “Class B Pass Through Trust” means the Alaska Air Pass Through Trust 2020-1B created pursuant to the Basic Pass Through Trust Agreement, as supplemented by Trust Supplement No. 2020-1B, dated as of the Issuance Date, among Company, Affiliate
Guarantor and U.S. Bank, as Class B Trustee. 
 “Class B Trustee” means the trustee for the
Class B Pass Through Trust. 
 “Closing” has the meaning specified in Section 2.03 of the Participation
Agreement. 
 “Closing Date” means the Issuance Date. 

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

“Collateral” has the meaning specified in the granting clause of the Indenture. 

“Company” means Alaska Airlines, Inc., and its successors and permitted assigns. 

“Company Guarantee” means the Guarantee, dated as of the Issuance Date, from Company to Company Guarantee Beneficiary, as the
same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 
 “Company Guarantee
Beneficiary” means U.S. Bank, in its individual capacity and as Pass Through Trustee under each Pass Through Trust Agreement, Subordination Agent and “Loan Trustee” under each Operative Indenture to which the Affiliate Guarantor
is a party. 

  
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 “Compulsory Acquisition” means requisition of title or other compulsory
acquisition, capture, seizure, deprivation, confiscation or detention for any reason of the Aircraft, the Airframe or any Engine by any government that results in the loss of title or use of the Aircraft, the Airframe or any Engine by Company (or
any Permitted Lessee) for a period in excess of 180 consecutive days, but shall exclude requisition for use or hire not involving requisition of title. 

“Confidential Information” has the meaning specified in Section 10.16 of the Indenture. 

“Controlling Party” has the meaning specified in Section 2.06 of the Intercreditor Agreement. 

“Corporate Trust Office” has the meaning specified in Section 1.01 of the Intercreditor Agreement. 

“CRAF Program” means the Civil Reserve Air Fleet Program authorized under 10 U.S.C. Section 9511 et seq. or any similar
or substitute program under the laws of the United States. 
 “Debt Rate” means (i) with respect to any Series
of Equipment Notes, the rate per annum specified for the applicable Series as such in Schedule I to the Indenture (as, in the case of any Series B Notes, any Series of Additional Series Equipment Notes, new Series B Equipment Notes or new Additional
Series Equipment Notes of any Series issued pursuant to Section 2.02 of the Indenture after the Closing Date, such Schedule I may be amended in connection with such issuance), and (ii) for any other purpose, with respect to any
period, the weighted average interest rate per annum during such period borne by the outstanding Equipment Notes, excluding in each case any interest payable at the Past Due Rate. 

“Defaulted Operative Indenture” means any Operative Indenture (the terms “Event of Default”, “Equipment
Notes” and “Payment Default” used in this definition have the meanings specified therefor in such Operative Indenture) with respect to which (i) a Payment Default has occurred and is continuing or an Event of Default
described in Section 4.01(a) of such Operative Indenture has occurred and is continuing or (ii) an Event of Default other than an Event of Default described in Section 4.01(a) of such Operative Indenture has occurred and is
continuing and, in any such case, either (x) the Equipment Notes issued thereunder have been accelerated and such acceleration has not been rescinded and annulled in accordance therewith or (y) the loan trustee under such
Operative Indenture has given the issuer of the Equipment Notes issued thereunder a notice of its intention to exercise one or more of the remedies specified in Section 4.02(a) of such Operative Indenture; provided that in the event of a
bankruptcy proceeding under the Bankruptcy Code under which such issuer is a debtor, if and so long as the trustee or the debtor agrees to perform and performs all obligations of such issuer under such Operative Indenture and the Equipment Notes
issued thereunder in accordance with Section 1110(a)(2) of the Bankruptcy Code and cures defaults under such Operative Indenture and Equipment Notes to the extent required by Section 1110(a)(2) of the Bankruptcy Code, such Operative
Indenture shall not be a Defaulted Operative Indenture. 
 “Department of Transportation” means the United States
Department of Transportation and any agency or instrumentality of the United States government succeeding to its functions. 

“Direction” has the meaning specified in Section 2.16 of the Indenture. 

  
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 “Dollars” and “$” mean the lawful currency of the United
States. 
 “EASA” means the European Aviation Safety Agency of the European Union and any successor agency. 

“Eligible Account” means an account established by and with an Eligible Institution at the request of Loan Trustee, which
institution agrees, for all purposes of the NY UCC including Article 8 thereof, that (a) such account shall be a “securities account” (as defined in Section 8-501(a) of the NY UCC),
(b) such institution is a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY UCC), (c) all property (other than cash) credited to such account shall be treated
as a “financial asset” (as defined in Section 8-102(a)(9) of the NY UCC), (d) Loan Trustee shall be the “entitlement holder” (as defined in
Section 8-102(a)(7) of the NY UCC) in respect of such account, (e) it will comply with all entitlement orders issued by Loan Trustee to the exclusion of Company, (f) it will waive
or subordinate in favor of Loan Trustee all claims (including, without limitation, claims by way of security interest, lien or right of set-off or right of recoupment), and (g) the “securities
intermediary jurisdiction” (under Section 8-110(e) of the NY UCC) shall be the State of New York. 

“Eligible Institution” means the corporate trust department of (a) U.S. Bank or any other Person that becomes a
successor Loan Trustee under the Indenture, in each case, acting solely in its capacity as a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY UCC), or (b) a
depository institution organized under the laws of the United States of America or any one of the states thereof or the District of Columbia (or any U.S. branch of a foreign bank), which has a Long-Term Rating (or, in each case, if a Long-Term
Rating is not available, its Short-Term Rating equivalent) from either S&P or Fitch of at least A- or its equivalent.  

“Engine” means (a) each of the two CFM International, Inc. CFM56-7B24 engines (generic manufacturer and model CFM
CFM56-7) listed by manufacturer’s serial number and further described on Annex A to the Indenture Supplement originally executed and delivered under the Indenture, whether or not from time to time
installed on the Airframe or installed on any other airframe or on any other aircraft and (b) any Replacement Engine substituted for an Engine pursuant to Section 7.04 or 7.05 of the Indenture; together in each case with any and all
related Parts but excluding Excluded Equipment. At such time as a Replacement Engine is so substituted and the Engine for which substitution is made is released from the Lien of the Indenture, such replaced Engine shall cease to be an Engine under
the Indenture. 
 “Equipment Note” means and includes any equipment notes issued under the Indenture in the form specified
in Section 2.01 thereof (as such form may be varied pursuant to the terms of the Indenture) and any Equipment Note issued in exchange therefor or replacement thereof pursuant to Section 2.07 or 2.08 of the Indenture. 

“Equipment Note Register” has the meaning specified in Section 2.07 of the Indenture. 

“Equipment Note Registrar” has the meaning specified in Section 2.07 of the Indenture. 

  
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 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued thereunder. Section references to ERISA are to ERISA as in effect at the date of the Participation Agreement and any subsequent provisions of ERISA amendatory thereof,
supplemental thereto or substituted therefor. 
 “Event of Default” has the meaning specified in Section 4.01 of the
Indenture. 
 “Event of Loss” means, with respect to the Aircraft, Airframe or any Engine, any of the following events with
respect to such property: 
 (a) the loss of such property or of the use thereof due to destruction, damage beyond repair or rendition of
such property permanently unfit for normal use for any reason whatsoever; 
 (b) any damage to such property which results in an insurance
settlement with respect to such property on the basis of a total loss, a compromised total loss or a constructive total loss; 
 (c) the
theft, hijacking or disappearance of such property for a period in excess of 180 consecutive days; 
 (d) the requisition for use or hire of
such property by any government (other than a requisition for use or hire by a Government or the government of the country of registry of the Aircraft) that results in the loss of possession of such property by Company (or any Permitted Lessee) for
a period in excess of 12 consecutive months; 
 (e) the operation or location of the Aircraft, while under requisition for use by any
government, in any area excluded from coverage by any insurance policy in effect with respect to the Aircraft required by the terms of Section 7.06 of the Indenture, unless Company shall have obtained indemnity or insurance in lieu thereof from
such government; 
 (f) any Compulsory Acquisition; 

(g) as a result of any law, rule, regulation, order or other action by the FAA or other government of the country of registry, the use of the
Aircraft or Airframe in the normal business of air transportation is prohibited by virtue of a condition affecting all aircraft of the same type for a period of 18 consecutive months, unless Company is diligently carrying forward all steps that are
necessary or desirable to permit the normal use of the Aircraft or Airframe or, in any event, if such use is prohibited for a period of three consecutive years; and 

(h) with respect to an Engine only, any divestiture of title to or interest in an Engine or any event with respect to an Engine that is deemed
to be an Event of Loss with respect to such Engine pursuant to Section 7.02(a)(vii) of the Indenture. 
 An Event of Loss with respect
to the Aircraft shall be deemed to have occurred if an Event of Loss occurs with respect to the Airframe unless Company elects to substitute a Replacement Airframe pursuant to Section 7.05(a)(i) of the Indenture. 

  
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 “Excluded Equipment” means (i) defibrillators, enhanced
emergency medical kits and other medical equipment, (ii) airphones and other components or systems installed on or affixed to the Airframe that are used to provide individual telecommunications or electronic entertainment to passengers
aboard the Aircraft, (iii) galley carts, beverage carts, waste containers, liquor kits, food tray carriers, ice containers, oven inserts, galley inserts, and other branded passenger convenience or service items, (iv) any
items, equipment or systems leased by Company or any Permitted Lessee (other than items, equipment, or systems that are leased from Company pursuant to the applicable Lease) or owned by Company or any Permitted Lessee subject to a conditional sales
agreement or a security interest (other than the security interest granted under the Indenture), and (v) cargo containers. 

“FAA” means the United States Federal Aviation Administration and any agency or instrumentality of the United States
government succeeding to its functions. 
 “FAA Bill of Sale” means the bill of sale for the Aircraft on AC Form 8050-2 (or such other form as may be approved by the FAA) executed by Manufacturer or an affiliate of Manufacturer in favor of Company and recorded with the FAA. 

“Federal Funds Rate” means a fluctuating interest rate per annum in effect from time to time, which rate per annum shall at
all times be equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the
next preceding Business Day) by the Federal Reserve Bank of New York, or if such rate is not so published for any day that is a Business Day, the average of the quotations for such day for such transactions received by U.S. Bank from three Federal
funds brokers of recognized standing selected by it. 
 “Fitch” means Fitch Ratings, Inc. 

“Government” means the government of any of Canada, France, Germany, Japan, The Netherlands, Sweden, Switzerland, the United
Kingdom or the United States and any instrumentality or agency thereof. 
 “Guarantee” means each of the Company Guarantee,
the Parent Guarantee and the Horizon Guarantee. 
 “Horizon Guarantee” means the Guarantee, dated as of the Issuance Date,
from Affiliate Guarantor to U.S. Bank, in its individual capacity and as Pass Through Trustee under each Pass Through Trust Agreement, Subordination Agent and “Loan Trustee” under each Operative Indenture to which the Company is a party,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Indemnitee” has the meaning specified in Section 4.02(b) of the Participation Agreement. 

“Indenture” means that certain Indenture and Security Agreement (N568AS), dated as of the Closing Date, between Company and
Loan Trustee, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms, including supplementation by an Indenture Supplement pursuant to the Indenture. 

  
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 “Indenture Indemnitee” means (i) Loan Trustee,
(ii) U.S. Bank, (iii) each separate or successor or additional trustee appointed pursuant to Section 8.02 of the Indenture, (iv) so long as it holds any Equipment Notes as agent and trustee of any Pass
Through Trustee, Subordination Agent, (v) each Liquidity Provider, (vi) so long as it is the holder of any Equipment Notes, each Pass Through Trustee, and (vii) any of their respective successors and permitted
assigns in such capacities, directors, officers, employees, agents and servants. No holder of a Pass Through Certificate in its capacity as such shall be an Indenture Indemnitee. 

“Indenture Supplement” means a supplement to the Indenture, substantially in the form of Exhibit A to the Indenture, which
particularly describes the Aircraft, and any Substitute Airframe, Replacement Airframe and/or Replacement Engine, included in the property subject to the Lien of the Indenture. 

“Initial Purchasers” means each of the initial purchasers identified as such in each Certificate Purchase Agreement. 

“Insurance Threshold” is the amount set forth as the Insurance Threshold in Exhibit C to the Indenture. 

“Intercreditor Agreement” means that certain Intercreditor Agreement, dated as of the Issuance Date, among each Pass Through
Trustee, each Liquidity Provider and Subordination Agent, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms; provided that, for purposes of any obligations of Company, no amendment,
modification or supplement to, or substitution or replacement of, such Intercreditor Agreement shall be effective unless consented to by Company. 

“Interests” has the meaning specified in Section 7.06(a) of the Indenture. 

“International Interest” has the meaning ascribed to the defined term “international interest” under the Cape Town
Treaty. 
 “International Registry” means the international registry established pursuant to the Cape Town Treaty. 

“Issuance Date” means July 2, 2020. 

“Lease” means any lease permitted by the terms of Section 7.02(a) of the Indenture. 

“Lien” means any mortgage, pledge, lien, encumbrance, lease, sublease, sub-sublease
or security interest. 
 “Liquidity Facilities” means, collectively, the Class A Liquidity Facility and, if provided,
the Class B Liquidity Facility. 

  
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 “Liquidity Providers” means, collectively, Class A Liquidity Provider
and, if any Class B Liquidity Facility shall have been provided, Class B Liquidity Provider. 
 “Loan Amount” has
the meaning specified in Section 7.06(b) of the Indenture. 
 “Loan Trustee” has the meaning specified in the
introductory paragraph of the Indenture. 
 “Loan Trustee Liens” means any Lien attributable to U.S. Bank or Loan Trustee
with respect to the Aircraft, any interest therein or any other portion of the Collateral arising as a result of (i) claims against U.S. Bank or Loan Trustee not related to its interest in the Aircraft or the administration of the
Collateral pursuant to the Indenture, (ii) acts of U.S. Bank or Loan Trustee not permitted by, or the failure of U.S. Bank or Loan Trustee to take any action required by, the Operative Documents or the Pass Through Documents,
(iii) claims against U.S. Bank or Loan Trustee relating to Taxes or Claims that are excluded from the indemnification provided by Section 4.02 of the Participation Agreement pursuant to said Section 4.02 or
(iv) claims against U.S. Bank or Loan Trustee arising out of the transfer by any such party of all or any portion of its interest in the Aircraft, the Collateral, the Operative Documents or the Pass Through Documents, except while an
Event of Default is continuing and prior to the time that Loan Trustee has received all amounts due to it pursuant to the Indenture. 

“Long-Term Rating” has the meaning specified in the Intercreditor Agreement. 

“Loss Payment Date” has the meaning specified in Section 7.05(a) of the Indenture. 

“Majority in Interest of Noteholders” means, as of a particular date of determination and subject to Section 2.16 of the
Indenture, the holders of at least a majority in aggregate unpaid principal amount of all Equipment Notes outstanding as of such date (excluding any Equipment Notes actually known by Loan Trustee to be held by Company or any Affiliate thereof, it
being understood that a Pass Through Trustee shall be considered an Affiliate of Company as long as more than 50% in the aggregate face amount of Pass Through Certificates issued by the corresponding Pass Through Trust are held and able to be voted
by Company or an Affiliate of Company or a Pass Through Trustee is otherwise under the control of Company or such Affiliate of Company (unless all Equipment Notes then outstanding are held by Company or any Affiliate thereof, including Pass Through
Trustees which are considered Affiliates of Company pursuant hereto)); provided that for the purposes of directing any action or casting any vote or giving any consent, waiver or instruction hereunder, any Noteholder of an Equipment Note or
Equipment Notes may allocate, in such Noteholder’s sole discretion, any fractional portion of the principal amount of such Equipment Note or Equipment Notes in favor of or in opposition to any such action, vote, consent, waiver or instruction.

 “Make-Whole Amount” means, with respect to any Equipment Note, the amount (as determined by an independent investment
banker selected by Company (and, following the occurrence and during the continuance of an Event of Default, reasonably acceptable to Loan Trustee)), if any, by which (i) the present value of the remaining scheduled payments of principal
and interest from the redemption date to maturity of such Equipment Note computed by discounting each such payment on a semiannual basis from its respective Payment Date 

  
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(assuming a 360-day year of twelve 30 day months) using a discount rate equal to the Treasury Yield plus the Make-Whole Spread exceeds (ii) the
outstanding principal amount of such Equipment Note plus accrued but unpaid interest thereon to the date of redemption. For purposes of determining the Make-Whole Amount, “Treasury Yield” means, at the date of determination, the
interest rate (expressed as a semiannual equivalent and as a decimal rounded to the number of decimal places as appears in the Debt Rate of such Equipment Note and, in the case of United States Treasury bills, converted to a bond equivalent yield)
determined to be the per annum rate equal to the semiannual yield to maturity for United States Treasury securities maturing on the Average Life Date and trading in the public securities market either as determined by interpolation between the most
recent weekly average constant maturity, non-inflation-indexed series yield to maturity for two series of United States Treasury securities, trading in the public securities markets, (A) one
maturing as close as possible to, but earlier than, the Average Life Date and (B) the other maturing as close as possible to, but later than, the Average Life Date, in each case as reported in the most recent H.15(519) or, if a weekly
average constant maturity, non-inflation indexed series yield to maturity for United States Treasury securities maturing on the Average Life Date is reported in the most recent H.15(519), such weekly average
yield to maturity as reported in such H.15(519). “H.15(519)” means the weekly statistical release designated as such, or any successor publication, published by the Board of Governors of the Federal Reserve System. The date of
determination of a Make-Whole Amount shall be the third Business Day prior to the applicable redemption date and the “most recent H.15(519)” means the latest H.15(519) published prior to the close of business on the third Business
Day prior to the applicable redemption date. “Average Life Date” means, for each Equipment Note to be redeemed, the date which follows the redemption date by a period equal to the Remaining Weighted Average Life at the redemption
date of such Equipment Note. “Remaining Weighted Average Life” of an Equipment Note, at the redemption date of such Equipment Note, means the number of days equal to the quotient obtained by dividing: (i) the sum of the
products obtained by multiplying (A) the amount of each then remaining installment of principal, including the payment due on the maturity date of such Equipment Note, by (B) the number of days from and including the
redemption date to but excluding the scheduled Payment Date of such principal installment by (ii) the then unpaid principal amount of such Equipment Note. Loan Trustee shall have no obligation to calculate, or verify the calculation of,
the Make-Whole Amount. 
 “Make-Whole Spread” means, with respect to any Series of Equipment Notes, the percentage
specified for the applicable Series as such in Schedule I to the Indenture (as, in the case of any Series B Equipment Notes, any Additional Series, new Series B Equipment Notes or new Additional Series issued pursuant to Section 2.02 of the
Indenture after the Closing Date, such Schedule I may be amended in connection with such issuance). 
 “Manufacturer” means
The Boeing Company, a Delaware corporation, and its successors and assigns. 
 “Manufacturer’s Consent” means the
Manufacturer’s Consent and Agreement to Assignment of Warranties, dated as of the Closing Date, substantially in the form of Exhibit E to the Participation Agreement. 

  
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 “MCMV” has the meaning specified in Section 7.04(e) of the Indenture.

 “Minimum Insurance Amount” has the meaning specified in Section 7.06(a) of the Indenture. 

“Noteholder” means any Person in whose name an Equipment Note is registered on the Equipment Note Register (including, for so
long as it is the registered holder of any Equipment Notes, Subordination Agent on behalf of Pass Through Trustees pursuant to the provisions of the Intercreditor Agreement). 

“Noteholder Liens” means any Lien attributable to any Noteholder on or against the Aircraft, any interest therein or any
other portion of the Collateral, arising out of any claim against such Noteholder that is not related to the Operative Documents or Pass Through Documents, or out of any act or omission of such Noteholder that is not related to the transactions
contemplated by, or that constitutes a breach by such Noteholder of its obligations under, the Operative Documents or the Pass Through Documents. 

“NY UCC” means the UCC as in effect in the State of New York. 

“Operative Documents” means, collectively, the Participation Agreement, the Indenture, each Indenture Supplement and the
Equipment Notes. 
 “Operative Indentures” means, as of any date, each “Indenture” (as such term is defined in
the Intercreditor Agreement) entered into or guaranteed by Company, dated as of the date of the Indenture, including the Indenture, but only if as of such date all “Equipment Notes” (as defined in each such “Indenture”) issued
under such Indenture are held by “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in each such “Indenture”. 

“Other Party Liens” means any Lien attributable to any Pass Through Trustee (other than in its capacity as Noteholder),
Subordination Agent (other than in its capacity as Noteholder) or any Liquidity Provider on or against the Aircraft, any interest therein, or any other portion of the Collateral arising out of any claim against such party that is not related to the
Operative Documents or Pass Through Documents, or out of any act or omission of such party that is not related to the transactions contemplated by, or that constitutes a breach by such party of its obligations under, the Operative Documents or the
Pass Through Documents. 
 “Parent” means Alaska Air Group, Inc., a Delaware corporation. 

“Parent Guarantee” means the Guarantee, dated as of the Issuance Date, from Parent to U.S. Bank, in its individual capacity
and as Pass Through Trustee under each Pass Through Trust Agreement, Subordination Agent and “Loan Trustee” under each Operative Indenture, as the same may be amended, supplemented or otherwise modified from time to time in accordance with
its terms. 
 “Participation Agreement” has the meaning set forth under the definition of “Agreement”. 

  
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 “Parts” means any and all appliances, parts, instruments, appurtenances,
accessories, furnishings and other equipment of whatever nature (other than (a) complete Engines or engines and (b) Excluded Equipment), so long as the same are incorporated or installed in or attached to the Airframe or any
Engine or so long as the same are subject to the Lien of the Indenture in accordance with the terms of Section 7.04 thereof after removal from the Airframe or any Engine. 

“Pass Through Certificates” means the pass through certificates issued by any Pass Through Trust (and any other pass through
certificates for which such pass through certificates may be exchanged). 
 “Pass Through Documents” means each Pass
Through Trust Agreement, the Intercreditor Agreement and each Liquidity Facility. 
 “Pass Through Trust” means each of the
separate grantor trusts that have been created pursuant to the Pass Through Trust Agreements to facilitate certain of the transactions contemplated by the Operative Documents. 

“Pass Through Trust Agreement” means each of the separate Trust Supplements relating to the Pass Through Trusts, together in
each case with the Basic Pass Through Trust Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Pass Through Trustee” means the trustee under each Pass Through Trust Agreement, together with any successor in interest and
any successor or other trustee appointed as provided in such Pass Through Trust Agreement. 
 “Past Due Rate” means the
lesser of (a) with respect to (i) any payment made to a Noteholder under any Series of Equipment Notes, the Debt Rate then applicable to such Series plus 1% and (ii) any other payment made under any Operative
Document to any other Person, the Debt Rate plus 1% (computed on the basis of a year of 360 days comprised of twelve 30-day months) and (b) the maximum rate permitted by applicable law. 

“Payment Date” means, for any Equipment Note, each February 15 and August 15, commencing with February 15,
2021. 
 “Payment Default” means the occurrence of an event that would give rise to an Event of Default under
Section 4.01(a) of the Indenture upon the giving of notice or the passing of time or both. 
 “Permitted Investments”
means each of (a) direct obligations of the United States and agencies thereof; (b) obligations fully guaranteed by the United States; (c) certificates of deposit issued by, or bankers’ acceptances of, or
time deposits with, any bank, trust company or national banking association incorporated or doing business under the laws of the United States or one of the states thereof having combined capital and surplus and retained earnings of at least
$100,000,000 and having a Long-Term Rating (or its Short-Term Rating equivalent) from either S&P or Fitch of at least A (or its equivalent) (or, if neither such organization then rates such 

  
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institutions, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States); (d) commercial paper of any holding company of a
bank, trust company or national banking association described in clause (c); (e) commercial paper of companies having a Short-Term Rating assigned to such commercial paper by either S&P or Fitch (or, if neither such organization then
rates such commercial paper, by any nationally recognized rating organization in the United States) equal to the highest rating assigned by such organization; (f) Dollar-denominated certificates of deposit issued by, or time deposits
with, the European subsidiaries of (i) any bank, trust company or national banking association described in clause (c), or (ii) any other bank or financial institution described in clause (g), (h) or (j) below;
(g) United States-issued Yankee certificates of deposit issued by, or bankers’ acceptances of, or commercial paper issued by, any bank having combined capital and surplus and retained earnings of at least $100,000,000 and headquartered
in Canada, Japan, the United Kingdom, France, Germany, Switzerland or The Netherlands and having a Long-Term Rating (or its Short-Term Rating equivalent) from either S&P or Fitch of at least A (or its equivalent) (or, if neither such
organization then rates such institutions, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States); (h) Dollar-denominated time deposits with any Canadian bank having a
combined capital and surplus and retained earnings of at least $100,000,000 and having a Long-Term Rating (or its Short-Term Rating equivalent) from either S&P or Fitch of at least A (or its equivalent) (or, if neither such organization then
rates such institutions, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States); (i) Canadian Treasury Bills fully hedged to Dollars; (j) repurchase agreements
with any financial institution having combined capital and surplus and retained earnings of at least $100,000,000 collateralized by transfer of possession of any of the obligations described in clauses (a) through (i) above;
(k) bonds, notes or other obligations of any state of the United States, or any political subdivision of any state, or any agencies or other instrumentalities of any such state, including, but not limited to, industrial development
bonds, pollution control revenue bonds, public power bonds, housing bonds, other revenue bonds or any general obligation bonds, that, at the time of their purchase, such obligations have a Long-Term Rating (or its Short-Term Rating equivalent) from
either S&P or Fitch of at least A (or its equivalent) (or, if neither such organization then rates such obligations, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States);
(1) bonds or other debt instruments of any company, if such bonds or other debt instruments, at the time of their purchase, have a Long-Term Rating (or its Short-Term Rating equivalent) from either S&P or Fitch of at least A (or its
equivalent) (or, if neither such organization then rates such obligations, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States); (m) mortgage backed securities
(i) guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Government National Mortgage Association or having a Long-Term Rating (or its Short-Term Rating equivalent) from either
S&P or Fitch of at least A (or its equivalent) (or, if neither such organization then rates such securities, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States) or, if
unrated, deemed to be of a comparable quality by Loan Trustee and (ii) having an average life not to exceed one year as determined by standard industry pricing practices presently in effect; (n) asset-backed securities having
a Long-Term Rating (or its Short-Term Rating equivalent) from either S&P or Fitch of at least A (or its equivalent) (or, if 

  
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neither such organization then rates such securities, an equivalent long-term rating or short-term rating from any nationally recognized rating organization in the United States) or, if unrated,
deemed to be of a comparable quality by Loan Trustee; and (o) such other investments approved in writing by Loan Trustee; provided that the instruments described in the foregoing clauses shall have a maturity no later than the
earlier of (i) 365 days following the date of their purchase and (ii) the date when such investments may be required for distribution. The bank acting as Pass Through Trustee or Loan Trustee is hereby authorized, in making or disposing of any
investment described herein, to deal with itself (in its individual capacity) or with any one or more of its affiliates, whether it or such affiliate is acting as an agent of Pass Through Trustee or Loan Trustee or for any third person or dealing as
principal for its own account. 
 “Permitted Lessee” means any Person to whom Company is permitted to lease the Airframe or
any Engine pursuant to Section 7.02(a) of the Indenture and is a party to a Lease. 
 “Permitted Lien” has the meaning
specified in Section 7.01 of the Indenture. 
 “Person” means any person, including any individual, corporation,
limited liability company, partnership, joint venture, association, joint-stock company, trust, trustee, unincorporated organization or government or any agency or political subdivision thereof. 

“Prospective International Interest” has the meaning ascribed to the defined term “prospective international
interest” under the Cape Town Treaty. 
 “Purchase Agreement” means Purchase Agreement No. 2497, dated as of
June 15, 2005, between Manufacturer and Company, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms. 

“Rating Agencies” has the meaning specified in the Intercreditor Agreement. 

“Related Additional Series Equipment Note” means, with respect to any particular Series of Additional Series Equipment Notes
and as of any date, an “Additional Series Equipment Note”, as defined in each Related Indenture, having the same designation (i.e., “Series C” or the like) as such Series of Additional Series Equipment Notes, but only if
as of such date it is held by “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in such Related Indenture. 

“Related Equipment Note” means, as of any date, an “Equipment Note” (as defined in each Related Indenture) issued
under such Related Indenture, but only if as of such date it is held by “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in such Related Indenture. 

“Related Indemnitee Group” has the meaning specified in Section 4.02(b) of the Participation Agreement. 

“Related Indenture” means each Operative Indenture (other than the Indenture). 

  
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 “Related Indenture Bankruptcy Default” means any “Event of
Default” under Section 4.01(f), (g), (h) or (i) of any Related Indenture, determined without giving effect to any applicable grace period. 

“Related Indenture Event of Default” means any “Event of Default” under any Related Indenture. 

“Related Indenture Indemnitee” means each Related Noteholder under each Related Indenture to which Company is a party and the
Company Guarantee Beneficiary, in its capacity as registered holder of the Equipment Notes issued under each Related Indenture to which the Affiliate Guarantor is a party. 

“Related Loan Trustee” means “Loan Trustee” as defined in each Related Indenture. 

“Related Make-Whole Amount” means the “Make-Whole Amount”, as defined in each Related Indenture. 

“Related Noteholder” means a registered holder of a Related Equipment Note. 

“Related Secured Obligations” means, as of any date, Company’s obligations in respect of the outstanding principal
amount of the Related Equipment Notes issued under each Related Indenture, the accrued and unpaid interest (including, to the extent permitted by applicable law, post-petition interest and interest on any overdue amounts) due thereon in accordance
with such Related Indenture as of such date, the Related Make-Whole Amount, if any, with respect thereto due thereon in accordance with such Related Indenture as of such date, and any other amounts payable as of such date under the “Operative
Documents” (as defined in each Related Indenture), in each case pursuant to any such Related Indenture or pursuant to the Company Guarantee. 

“Related Series A Equipment Note” means, as of any date, a “Series A Equipment Note”, as defined in each Related
Indenture, but only if as of such date it is held by “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in such Related Indenture. 

“Related Series B Equipment Note” means, as of any date, a “Series B Equipment Note”, if any, as defined in each
Related Indenture, but only if as of such date it is held by “Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in such Related Indenture. 

“Replacement Aircraft” means the Aircraft of which a Replacement Airframe is part. 

“Replacement Airframe” means a Boeing 737-890 aircraft or a comparable or improved
model of Manufacturer (except (a) Engines or engines from time to time installed thereon and any and all Parts related to such Engine or engines and (b) Excluded Equipment), that shall have been made subject to the Lien of
the Indenture pursuant to Section 7.05 thereof, together with all Parts relating to such aircraft. 

  
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 “Replacement Engine” means a CFM International, Inc. CFM56-7B24 engine (or
an engine of the same or another manufacturer of a comparable or an improved model and suitable for installation and use on the Airframe with the other Engine (or any other Replacement Engine being substituted simultaneously therewith)) that is made
subject to the Lien of the Indenture pursuant to Section 7.04 or Section 7.05 thereof, together with all Parts relating to such engine. 

“Replacement Liquidity Facility” has the meaning set forth in the Intercreditor Agreement. 

“Replacement Liquidity Provider” has the meaning set forth in the Intercreditor Agreement. 

“Responsible Officer” means, with respect to Company, its Chairman of the Board, its President, its Chief Executive Officer,
its Chief Operating Officer, its Chief Financial Officer, its General Counsel, any Vice President, the Treasurer, the Controller or the Corporate Secretary. 

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC
business. 
 “Section 1110” means Section 1110 of the Bankruptcy Code. 

“Secured Obligations” has the meaning specified in Section 2.06 of the Indenture. 

“Securities Account” has the meaning specified in Section 3.07 of the Indenture. 

“Securities Act” means the Securities Act of 1933, as amended from time to time. 

“Securities and Exchange Commission” means the United States Securities and Exchange Commission and any agency or
instrumentality of the United States government succeeding to its functions. 
 “Securities Intermediary” has the meaning
specified in Section 3.07 of the Indenture. 
 “Series” means any series of Equipment Notes, including the Series A
Equipment Notes or, if issued, the Series B Equipment Notes or any Additional Series Equipment Notes. 
 “Series A” or
“Series A Equipment Notes” means Equipment Notes issued and designated as “Series A Equipment Notes” under the Indenture, in the original principal amount and maturities as specified in Schedule I to the Indenture under
the heading “Series A Equipment Notes” and bearing interest at the Debt Rate for Series A Equipment Notes specified in Schedule I to the Indenture. 

“Series B” or “Series B Equipment Notes” means Equipment Notes, if any, issued and designated as
“Series B Equipment Notes” under the Indenture, in the original principal amount and maturities as specified in Schedule I to the Indenture under the heading “Series B Equipment Notes” (as such Schedule I may be amended in
connection with the issuance of such Equipment Notes if issued after the Closing Date) and bearing interest at the Debt Rate for Series B Equipment Notes specified in Schedule I to the Indenture (as such Schedule I may be amended in connection with
the issuance of such Equipment Notes if issued after the Closing Date). 

  
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 “Short-Term Rating” has the meaning specified in the Intercreditor
Agreement. 
 “Similar Law” has the meaning specified in Section 4.02(d)(xi) of the Participation Agreement. 

“Subordination Agent” has the meaning specified in the introductory paragraph of the Participation Agreement. 

“Substitute Airframe” means a Boeing 737-890 aircraft or a comparable or improved
model of Manufacturer (except (a) Engines or engines from time to time installed thereon and any and all Parts related to such Engine or engines and (b) Excluded Equipment), that shall have been made subject to the Lien of
the Indenture pursuant to Section 7.04 thereof, together with all Parts relating to such aircraft. 
 “Tax” and
“Taxes” mean all governmental fees (including, without limitation, license, filing and registration fees) and all taxes (including, without limitation, franchise, excise, stamp, value added, income, gross receipts, sales, use and
property taxes), withholdings, assessments, levies, imposts, duties or charges, of any nature whatsoever, together with any related penalties, fines, additions to tax or interest thereon imposed, withheld, levied or assessed by any country, taxing
authority or governmental subdivision thereof or therein or by any international authority, including any taxes imposed on any Person as a result of such Person being required to collect and pay over withholding taxes. 

“Transportation Code” means that portion of Title 49 of the United States Code comprising those provisions formerly referred
to as the Federal Aviation Act of 1958, as amended, or any subsequent legislation that amends, supplements or supersedes such provisions. 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time to time. 

“Trust Officer” means any officer within the Corporate Trust Office of Loan Trustee, including any vice president, assistant
vice president, assistant secretary, assistant treasurer or any other officer of Loan Trustee who shall have direct responsibility for the administration of the Indenture, or any other officer of Loan Trustee to whom such matter is referred because
of his or her knowledge of and familiarity with the particular subject. 
 “Trust Supplements” means (a) those
agreements supplemental to the Basic Pass Through Trust Agreement referred to in Schedule II to the Participation Agreement as of the Closing Date, and (b) in the case of any Class B Certificates issued after the Closing Date, an agreement
supplemental to the Basic Pass Through Trust Agreement pursuant to which (i) a separate trust is created for the benefit of the holders of such Class B Certificates, and (ii) the issuance of such Class B Certificates representing
fractional undivided interests in the Class B Pass Through Trust is authorized. 

  
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 “UCC” means the Uniform Commercial Code as in effect in any applicable
jurisdiction. 
 “United States” means the United States of America. 

“U.S. Bank” has the meaning specified in the introductory paragraph of the Participation Agreement. 

“Warranty Bill of Sale” means the warranty (as to title) bill of sale covering the Aircraft executed by Manufacturer or an
affiliate of Manufacturer in favor of Company and specifically referring to each Engine, as well as the Airframe, constituting a part of the Aircraft. 

“Warranty Rights” has the meaning specified in the Manufacturer’s Consent, it being understood that the Warranty Rights
exclude any and all other right, title and interest of Company in, to and under the Purchase Agreement and that the Warranty Rights and the grant of a security interest therein are subject to the terms of the Manufacturer’s Consent. 

  
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