Document:

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                                                                   Exhibit 10.19

                        PARTICIPATION AGREEMENT [N281SK]

                          Dated as of February 23, 2001

                                      among

                           CHAUTAUQUA AIRLINES, INC.,
                                    as Lessee

                      GENERAL ELECTRIC CAPITAL CORPORATION,
                              as Owner Participant,

                                       and

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
               not in its individual capacity (except as otherwise
                     expressly set forth herein) but solely
                                as Owner Trustee

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                  COVERING ONE EMBRAER MODEL EMB-145LR AIRCRAFT
                  AIRCRAFT BEARING U.S. REGISTRATION NO. N281SK
                     AND MANUFACTURER'S SERIAL NUMBER 145391

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Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 of the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.
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     PARTICIPATION AGREEMENT [N281SK] dated as of February 23, 2001 (this
"Agreement") among CHAUTAUQUA AIRLINES, INC., a New York corporation (herein,
together with its successors and permitted assigns, the "Lessee"), FIRST
SECURITY BANK, NATIONAL ASSOCIATION, a national banking association, not in its
individual capacity, except as otherwise expressly stated herein, but solely as
owner trustee under the Trust Agreement referred to below (in such capacity as
trustee, together with its successors and permitted assigns, the "Owner
Trustee"), and GENERAL ELECTRIC CAPITAL CORPORATION, a New York corporation
(together with its successors and permitted assigns, the "Owner Participant").

                              W I T N E S S E T H:

          WHEREAS, capitalized terms used herein shall have the respective
meanings set forth or referred to in Article 1 hereof; and

          WHEREAS, pursuant to the Embraer Purchase Agreement, the Manufacturer
agreed to manufacture and sell to Seller and Seller agreed to purchase from the
Manufacturer the Aircraft; and

          WHEREAS, concurrently with the execution and delivery of this
Agreement, the Owner Participant and First Security Bank, National Association,
are entering into the Trust Agreement whereby, among other things, First
Security Bank, National Association, is appointed as Owner Trustee and has
undertaken to acquire and hold the Trust Estate in trust for the benefit of the
Owner Participant; and

          WHEREAS, pursuant to the Embraer Purchase Agreement the Manufacturer
has delivered the Aircraft to the Seller and subject to the terms and conditions
of this Agreement, the Owner Trustee is willing to purchase the Aircraft from
the Seller pursuant to the Aircraft Purchase Agreement for immediate lease to
the Lessee pursuant to the Lease; and

          WHEREAS, subject to the terms and conditions of this Agreement and the
Trust Agreement, the Owner Participant is willing to make the equity investment
provided for herein to fund such purchase by the Owner Trustee; and

          WHEREAS, Seller has agreed to assign the Assigned Warranties to the
Owner Trustee and the Manufacturer has consented to such assignment, upon the
terms and conditions contained in the Embraer Warranty Assignment and Consent;
and

          WHEREAS, Seller has agreed to assign the Engine Warranties to the
Owner Trustee and the Engine Manufacturer has consented to such assignment, upon
the terms and conditions contained in the Engine Warranty Assignment and
Consent; and

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          WHEREAS, to induce the Owner Participant to make the equity investment
provided for herein to fund the purchase of the Aircraft by the Owner Trustee
from the Seller, the Manufacturer has agreed to enter into the Residual Value
Guarantee Agreement (MSN145391/N281SK), dated as of February 23, 2001 (the
"Residual Value Guarantee Agreement") with the Owner Participant and to
undertake the obligations provided therein; and

          WHEREAS, to induce the Owner Trustee to purchase the Aircraft and to
enter into the Lease, the Manufacturer has agreed to enter into the Guarantee
Agreement (MSN145391/N281SK), dated February 23, 2001 (the "Guarantee
Agreement") with the Owner Trustee and the Owner Participant and to undertake
the obligations provided therein;

          NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration and receipt and adequacy of
which is hereby acknowledged, and intending to be legally bound, the parties do
hereby agree as follows:

                                   ARTICLE 1.
                                 INTERPRETATION

          Section 1.01. DEFINITIONS. Capitalized terms used herein and defined
in Appendix A shall, except as such definitions may be specifically modified in
the body of this Agreement for the purposes of a particular section, paragraph
or clause, have the meanings given such terms in Appendix A.

          Section 1.02. REFERENCES. References in this Agreement to sections,
paragraphs, clauses, appendices, schedules and exhibits are to sections,
paragraphs, clauses, appendices, schedules and exhibits in and to this Agreement
unless otherwise specified.

          Section 1.03. HEADINGS. The headings of the various sections,
paragraphs and clauses of this Agreement and the table of contents are for
convenience of reference only and shall not modify, define, expand or limit any
of the terms or provisions hereof.

          Section 1.04. APPENDICES SCHEDULES AND EXHIBITS. The appendices,
schedules and exhibits hereto are part of this Agreement.

                                   ARTICLE 2.
                          SALE AND LEASING TRANSACTIONS

          Section 2.01. PARTICIPATION. Subject to all of the terms and
conditions of this Agreement, the parties agree to participate in the sale and
leasing transactions with respect to the Aircraft provided for in this
Article 2.

          (a) SALE AND PURCHASE. The Owner Trustee agrees to purchase the
Aircraft from the Seller on the Delivery Date for a purchase price equal to
Lessor's Cost pursuant to the Aircraft Purchase Agreement.

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          (b) LEASING. The Owner Trustee agrees to lease to the Lessee, and the
Lessee agrees to lease from the Owner Trustee, the Aircraft pursuant to the
Lease, such leasing to take place concurrently with the purchase of the Aircraft
by the Owner Trustee on the Delivery Date.

          (c) OWNER PARTICIPANT'S EQUITY INVESTMENT. The Owner Participant
agrees to provide immediately available funds in an amount equal to the Lessor's
Cost (the "Commitment") (i) by paying such amount to the Owner Trustee prior to
the time of closing on the Delivery Date at the account specified by the Owner
Trustee on or prior to the Delivery Date, such amount to be held and applied
toward the Owner Trustee's payment of Lessor's Cost for the Aircraft on the
Delivery Date (and if not so applied, to be promptly returned to the Owner
Participant) or (ii) by paying such amount at the time of the closing on the
Delivery Date directly to the Seller's account specified by the Seller prior to
the closing to be applied toward the payment of Lessor's Cost. Such funds, once
so applied, shall constitute an equity investment by the Owner Participant in
the Trust Estate.

          (d) DELIVERY DATE. The "Delivery Date" shall be the date fixed by
the Lessee in accordance with this Section 2.01(d) for the closing of the
sale and leasing transactions with respect to the Aircraft contemplated
hereby, except that following such closing the "Delivery Date" shall mean the
date on which such transactions actually closed. The Lessee shall give at
least two Business Days' notice to each other party hereto of the Delivery
Date, which notice shall also specify the amount of the Commitment. The
Lessee may postpone a scheduled Delivery Date from time to time, for any
reason by notice given to the other parties hereto not later than 2:00 p.m.
on the date last scheduled as the Delivery Date, such notice to specify a new
Delivery Date. In the event that the Owner Participant shall have provided
the amount of the Commitment to the Owner Trustee prior to such a
postponement, the Owner Trustee shall return such amount to the Owner
Participant by 2:00 p.m. on the scheduled Delivery Date unless the Owner
Participant shall have agreed otherwise in writing. Absent such an agreement,
in the event that the Commitment is not returned to the Owner Participant by
2:00 p.m. on a scheduled Delivery Date on which the closing does not occur,
the Lessee shall pay interest to the Owner Participant at a rate equal to the
rate per annum announced from time to time by Citibank, N.A. as its prime
rate plus [*] for each day that such commitment is not returned to the Owner
Participant by 2:00 p.m.. The making available by the Owner Participant of
the Commitment at the closing shall be deemed a waiver of notice of the
Delivery Date by the Owner Participant and the Owner Trustee.

          Section 2.02. CLOSING PROCEDURE.

          (a) TIME AND PLACE. The closing shall take place at 11:00 a.m. New
York City local time on the Delivery Date at the offices of Fulbright & Jaworski
L.L.P., 666 Fifth Avenue, New York, New York or at such other time and place as
the parties may agree. The closing shall be preceded by a pre-closing at the
same place, the time for which shall be fixed by the Lessee, at which the forms
of the Operative Agreements to be executed, the certificates and other documents
to be delivered and the forms of the legal opinions to be delivered at the
closing by each party or its counsel pursuant to this Agreement shall be
available for inspection by the parties and their respective counsel.

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* Confidential
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          (b) ACTIONS OF THE OWNER TRUSTEE. Upon receipt in full by the Owner
Trustee of the Commitment of the Owner Participant together with instructions
(which may be oral) from the Owner Participant or its special counsel that the
applicable conditions precedent set forth in Section 3.01 have been satisfied or
waived by the Owner Participant, the Owner Trustee on the Delivery Date shall
purchase the Aircraft from the Seller and lease the Aircraft to the Lessee. To
accomplish such transactions, the Owner Trustee shall, concurrently with the
actions of the Lessee pursuant to Section 2.02(c), take the following actions:

               (i) pay or cause to be paid an amount equal to Lessor's Cost to
     the Seller for the purchase of the Aircraft by transferring such amount in
     immediately available funds to the account specified by the Seller on or
     prior to the Delivery Date;

               (ii) authorize its representative or representatives, who shall
     be a person or persons designated by the Lessee and acceptable to the Owner
     Trustee, to accept delivery of the Aircraft pursuant to this Agreement;

               (iii) accept the Bills of Sale for the Aircraft;

               (iv) execute and deliver the Lease and the Lease Supplement;

               (v) deliver the Aircraft to the Lessee pursuant to the Lease;

               (vi) execute and deliver all other documents or certificates and
     take such other actions as may be required of the Owner Trustee on or
     before the Delivery Date pursuant to any Operative Agreement; and

               (vii) take such actions as may be requested by the Seller and
     Lessee to effect the due registration of the Aircraft with the FAA in the
     name of the Owner Trustee.

          (c) ACTIONS OF THE LESSEE. Upon satisfaction or waiver by the Lessee
of the conditions precedent set forth in Section 3.02, the Lessee shall on the
Delivery Date lease the Aircraft from the Owner Trustee pursuant to the Lease.
To accomplish such transactions the Lessee shall, concurrently with the actions
of the Owner Trustee pursuant to Section 2.02(b), take the following actions:

               (i) execute and deliver the Lease and the Lease Supplement;

               (ii) authorize its representative or representatives (who shall
     be the same person or persons designated by the Lessee for purposes of
     clause (ii) of Section 2.02(b)), to accept delivery of the Aircraft from
     the Owner Trustee pursuant to the Lease; and

               (iii) execute and deliver all other documents or certificates and
     take such other actions as may be required of the Lessee on or before the
     Delivery Date pursuant to any Operative Agreement.

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                                   ARTICLE 3.
                              CONDITIONS PRECEDENT

          Section 3.01. CONDITIONS PRECEDENT TO OBLIGATIONS OF OWNER
PARTICIPANT. The obligation of the Owner Participant to make the Commitment
available for payment as directed by the Owner Trustee on the Delivery Date is
subject to satisfaction or waiver by the Owner Participant, on or prior to the
Delivery Date, of the conditions precedent set forth below in this Section 3.01;
PROVIDED, that it shall not be a condition precedent to the obligation of the
Owner Participant that any document be produced or action taken that is to be
produced or taken by the Owner Participant or by a Person within the Owner
Participant's control:

          (a) NOTICE. The Owner Participant shall have received the notice of
the Delivery Date as provided in Section 2.01(d), or shall have waived such
notice.

          (b) DELIVERY OF DOCUMENTS. The Owner Participant shall, except as
noted below, have received executed counterparts of the following agreements,
instruments, certificates or documents, and such counterparts (a) shall have
been duly authorized, executed and delivered by the respective party or parties
thereto, (b) shall be reasonably satisfactory in form and substance to the Owner
Participant and (c) shall be in full force and effect:

               (i) the Lease;

               (ii) Lease Supplement No. 1;

               (iii) the Tax Indemnity Agreement;

               (iv) the Trust Agreement;

               (v) the Guarantee Agreement;

               (vi) the Residual Value Guarantee Agreement;

               (vii) the Aircraft Purchase Agreement;

               (viii) the Embraer Warranty Assignment and Consent;

               (ix) the Engine Warranty Assignment and Consent;

               (x) the Bills of Sale;

               (xi) the broker's report and insurance certificates required by
     Section 9 of the Lease;

               (xii) an appraisal or appraisals from Avitas, which appraisal or
     appraisals shall be satisfactory in form and substance to Owner
     Participant;

               (xiii) (A) a copy of the Certificate of Incorporation and By-Laws
     of Lessee and resolutions of the board of directors of Lessee, in each case
     certified as of the Delivery Date, by the Secretary or an Assistant
     Secretary of Lessee, duly authorizing the

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     execution, delivery and performance by Lessee of the Operative Agreements
     required to be executed and delivered by Lessee on or prior to the Delivery
     Date in accordance with the provisions hereof and thereof; (B) an
     incumbency certificate of Lessee and Trust Company as to the person or
     persons authorized to execute and deliver the relevant Operative Agreements
     on behalf of such party; and (C) a copy of the Certificate of Incorporation
     or Articles of Incorporation or Articles of Association and By-Laws and
     general authorizing resolutions of the boards of directors (or executive
     committees) or other satisfactory evidence of authorization of Trust
     Company, certified as of the Delivery Date by the Secretary or an Assistant
     Secretary of Trust Company, which authorize the execution, delivery and
     performance by Trust Company of each of the Operative Agreements to which
     it is a party, together with such other documents and evidence with respect
     to it as Owner Participant may reasonably request in order to establish the
     consummation of the transactions contemplated by this Agreement and the
     taking of all corporate proceedings in connection therewith;

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

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

               (xvi) the following opinions of counsel, in each case dated the
     Delivery Date:

               (A) Arthur Amron, Principal and General Counsel of the Lessee
     substantially in the form of Exhibit A-1 hereto and addressed to the Owner
     Participant and the Owner Trustee.

               (B) Fulbright & Jaworski, L.L.P. special counsel for the Lessee
     substantially in the form of Exhibit A-2 hereto addressed to the Owner
     Participant, the Owner Trustee and the Lessee;

               (C) Ray, Quinney & Nebeker, special counsel for the Owner Trustee
     substantially in the form of Exhibit A-3 hereto addressed to the Owner
     Participant and the Lessee;

               (D) Daugherty, Fowler, Peregrin & Haught, a Professional
     Corporation, special aviation counsel, substantially in the form of Exhibit
     A-4 hereto and addressed to the Owner Participant, the Owner Trustee and
     the Lessee;

               (E) special counsel for the Manufacturer, in a form reasonably
     acceptable to the Owner Participant and addressed to the Owner Participant,
     the Owner Trustee and the Lessee;

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               (F) in the case of the Owner Participant only, Holland & Knight
     LLP, tax counsel to the Owner Participant, addressed to the Owner
     Participant, with respect to tax matters;

               (G) Holland & Knight LLP, special counsel for the Owner
     Participant, substantially in the forms of Exhibits A-5, addressed to the
     Lessee and the Owner Trustee;

               (H) Ray Warman, Senior Vice President and Associate General
     Counsel to GE Capital Aviation Services, Inc., an Affiliate of the Owner
     Participant, substantially in the form of Exhibit A-6, addressed to the
     Lessee and the Owner Trustee;

               (I) Arthur Amron, General Counsel of Seller, in a form reasonably
     acceptable to the Owner Participant and addressed to the Owner Participant,
     the Owner Trustee and the Lessee;

               (J) Fulbright & Jaworski, L.L.P., relating to the Aircraft
     Purchase Agreement, in a form reasonably acceptable to the Owner
     Participant and addressed to the Owner Participant, the Owner Trustee and
     the Lessee;

               (xvii) the Guarantee Agreement shall be in full force and effect;
     and

               (xviii) the Residual Value Guarantee Agreement shall be in full
     force and effect.

          (c) AIRWORTHINESS. Owner Participant shall receive a copy of a
current, valid Standard Certificate of Airworthiness for the Aircraft duly
issued by the FAA.

          (d) VIOLATION OF LAW. No change shall have occurred after the date of
this Agreement in any Applicable Law that makes it a violation of law for (a)
Lessee, Owner Participant, or Owner Trustee to execute, deliver and perform the
Operative Agreements to which any of them is a party or (b) Owner Participant to
make the Commitment available.

          (e) NO EVENT OF DEFAULT. On the Delivery Date, no event shall have
occurred and be continuing, or would result from the sale, mortgage or lease of
the Aircraft, which constitutes a Default or Event of Default.

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

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

          (h) CERTIFICATION. The Aircraft shall have been duly certificated by
the FAA as to type and airworthiness as required by the terms of the Lease.

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          (i) SECTION 1110. Owner Trustee, as lessor under the Lease, shall be
entitled to the benefits of Section 1110 (as currently in effect) with respect
to the right to take possession of the Airframe and Engines as provided in the
Lease in the event of a case under Chapter 11 of the Bankruptcy Code in which
Lessee is a debtor.

          (j) FILINGS. On the Delivery Date (i) application for registration of
the Aircraft in the name of the Owner Trustee shall have been duly made with the
FAA in compliance with the provisions of the Transportation Code; and (ii) the
Trust Agreement, the Lease, Lease Supplement No. 1 and the FAA Bill of Sale
shall have been duly filed for recordation (or shall be in the process of being
so duly filed for recordation) with the FAA in accordance with the
Transportation Code.

          (k) PRECAUTIONARY FINANCING STATEMENTS. A Uniform Commercial Code
"precautionary" financing statement or statements describing the Lease as a
lease but covering any security interest in favor of the Owner Trustee which may
be created thereby, shall have been executed and delivered by the Lessee and the
Owner Trustee (naming the Owner Trustee as Lessor and secured party), and shall
have been duly filed in all places necessary or desirable within the State of
Indiana.

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

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

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

          Section 3.02. CONDITIONS PRECEDENT TO OBLIGATIONS OF LESSEE. The
obligation of Lessee to lease the Aircraft on the Delivery Date is subject to
the satisfaction or waiver by Lessee, on or prior to the Delivery Date, of the
conditions precedent set forth below in this Section 3.02.

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          (a) DOCUMENTS. Executed originals of the agreements, instruments,
certificates, documents and opinions described in Section 3.01(b) shall have
been received by Lessee, except as specifically provided therein, and shall be
satisfactory to Lessee, unless the failure to receive any such agreement,
instrument, certificate or document is the result of any action or inaction by
Lessee.

          (b) CORPORATE DOCUMENTS. (A) An incumbency certificate of Owner
Participant as to the person or persons authorized to execute and deliver the
relevant Operative Agreements on behalf of Owner Participant; and (B) a copy of
the Certificate of Incorporation or Articles of Incorporation or Articles of
Association and By-Laws and general authorizing resolutions of the boards of
directors (or executive committees) or other satisfactory evidence of
authorization of Owner Participant, certified as of the Delivery Date by the
Secretary or an Assistant Secretary of Owner Participant which authorize the
execution, delivery and performance by Owner Participant of each of the
Operative Agreements to which it is a party, together with such other documents
and evidence with respect to it as Lessee may reasonably request in order to
establish the consummation of the transactions contemplated by this Agreement
and the taking of all corporate proceedings in connection therewith;

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

          (d) OTHER CONDITIONS PRECEDENT. Each of the conditions set forth in
Sections 3.01(c), (d), (f), (g), (h), (i), (j), (l) and (n) shall have been
satisfied or waived by Lessee, unless the failure of any such condition to be
satisfied is the result of any action or inaction by Lessee.

          Section 3.03. POST-REGISTRATION OPINION. Promptly upon the
registration of the Aircraft and the recordation of the documents referenced in
Section 3.01(j)(ii), Lessee will direct Daugherty, Fowler, Peregrin & Haught, a
Professional Corporation, special counsel in Oklahoma City, Oklahoma, to deliver
to Lessee, Owner Participant and Owner Trustee a favorable opinion or opinions
addressed to each of them with respect to such registration and recordation.

                                   ARTICLE 4.
               LESSEE'S REPRESENTATIONS, WARRANTIES AND COVENANTS

          Section 4.01. LESSEE'S REPRESENTATIONS AND WARRANTIES. The Lessee
represents and warrants that, as of the Delivery Date (unless any such
representation and warranty is specifically made as of an earlier date, in which
case the Lessee represents and warrants as of such earlier date):

          (a) the Lessee is a corporation duly organized and validly existing
and is in good standing under the laws of the State of New York, has its
principal place of business and chief executive office (as such terms are used
in Article 9 of the Uniform Commercial Code) in Indianapolis, Indiana at the
address set forth in Section 12.01(a), and is duly qualified to do business as a
foreign corporation and is in good standing in each jurisdiction where the
failure to

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be so qualified or in good standing would have a materially adverse effect on
its business or would impair its ability to perform its obligations under the
Lessee Documents;

          (b) the Lessee has full power, authority and legal right to conduct
its business and operations as currently conducted and to own or hold under
lease its properties and to enter into and perform its obligations under the
Lessee Documents;

          (c) the Lessee is a Certificated Air Carrier;

          (d) the Lessee possesses all necessary certificates, franchises,
licenses, permits, rights and concessions and consents (collectively "permits")
which are necessary to the operation of the routes flown by it and the conduct
of its business and operations as currently conducted and each such permit is in
full force and effect, except for any such permits the failure to have or
maintain which would not have a material adverse effect on the Lessee or its
ability to perform its obligations under the Lessee Documents;

          (e) the execution, delivery and performance of the Lessee Documents by
the Lessee have been duly authorized by all necessary corporate action on the
part of the Lessee and do not require any stockholder approval, or approval or
consent of any trustee or holder of any indebtedness or obligations of the
Lessee, and each such Lessee Documents has been duly executed and delivered and
constitutes the legal, valid and binding obligations of the Lessee enforceable
against it in accordance with the terms thereof except as such enforceability
may be limited by bankruptcy, insolvency, or other similar laws or by general
equitable principles;

          (f) no authorization, consent or approval of or other action by, and
no notice to or filing with, any United States federal or state governmental
authority or regulatory body is required for the execution, delivery or
performance by the Lessee of the Lessee Documents except for such registrations,
applications and recordings referred to in the opinion of Daugherty, Fowler,
Peregrin & Haught, a Professional Corporation delivered pursuant to Section
3.01(b)(xvi)(D) and the filings referred to in Section 3.01(j)(ii);

          (g) neither the execution, delivery or performance by the Lessee of
the Lessee Documents nor compliance with the terms and provisions hereof or
thereof, conflicts or will conflict with or results or will result in a breach
or violation of any of the terms, conditions or provisions of, or will require
any consent (other than the Embraer Warranty Assignment and Consent and the
Engine Warranty Assignment and Consent) or approval under, any Applicable Law or
the charter documents, as amended, or bylaws, as amended, of the Lessee or any
order, writ, injunction or decree of any court or governmental authority against
the Lessee or by which it or any of its properties is bound or any indenture,
mortgage or contract or other agreement or instrument to which the Lessee is a
party or by which it or any of its properties is bound, or constitutes or will
constitute a default thereunder or results or will result in the imposition of
any Lien upon the Aircraft or any of its properties (other than Permitted
Liens), except for any such conflict, breach or default which would not have a
material adverse effect on the Lessee or its ability to perform its obligations
under the Lessee Documents;

          (h) except as disclosed in any of the financial statements referred to
in Section 4.01(p) or as otherwise disclosed in writing to the Owner
Participant, there are no pending or, to

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the knowledge of the Lessee, threatened actions, suits, investigations or
proceedings against or affecting the Lessee or any of its properties before or
by any court, governmental agency, arbitration board, tribunal or other
administrative agency which, (A) may reasonably be expected to have a materially
adverse effect on the Lessee's consolidated financial condition, business, or
operations, or (B) would materially adversely affect the ability of the Lessee
to consummate the transactions contemplated by the Operative Agreements or
perform its obligations under the Lessee Documents;

          (i) except for (A) the registration in the Owner Trustee's name of the
Aircraft pursuant to the Transportation Code, (B) the filing with and, where
appropriate, recordation by the FAA pursuant to the Transportation Code of the
Lease (including Lease Supplement No. 1) and (C) the filing of the financing
statement referred to in Section 3.01(k), no further action, including any
filing or recording of any document, is necessary or advisable in order to
establish the Owner Trustee's title to and interest in the Aircraft and the
Lessor's Estate as against the Lessee and any third parties;

          (j) the Owner Trustee has received good and marketable title to the
Aircraft, free and clear of all Liens, except Permitted Liens;

          (k) all premiums which have become due with respect to the insurance
required to be provided by the Lessee on or prior to the Delivery Date under
Section 9 of the Lease have been paid by the Lessee;

          (l) no Default or Event of Default exists and no Event of Loss, or
event which with the passage of time would constitute an Event of Loss, exists;

          (m) the Aircraft is in such condition so as to enable the
airworthiness certificate of such Aircraft to be in good standing under the
Transportation Code; the Aircraft has been duly certificated by the FAA as to
type and airworthiness; there is in effect with respect to the Aircraft a
current and valid airworthiness certificate issued by the FAA pursuant to the
Transportation Code;

          (n) neither the Lessee nor any subsidiary of the Lessee is an
"investment company" or a company "controlled by an investment company" within
the meaning of the Investment Company Act of 1940, as amended;

          (o) there are no broker's or underwriter's fees payable on behalf of
the Lessee in connection with the transactions contemplated in the Operative
Agreements, other than those of the Lessee Advisor (as defined in
Section 8.01(a)) referred to in Article 8 hereof;

          (p) the audited consolidated balance sheet of Lessee as of December
31, 1999 and the related consolidated statements of operations and cash flows
for the period then ended have been prepared in accordance with generally
accepted accounting principles in the United States and fairly present in all
material respects the financial condition of Lessee and its consolidated
subsidiaries as of such date and the results of its operations and cash flows
for such period, and since December 31, 1999, there has been no material adverse
change in such financial condition or operations of Lessee, except for matters
disclosed in (a) the financial

                                       11
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statements referred to above or (b) otherwise disclosed in writing by Lessee to
the Owner Participant;

          (q) to the best of Lessee's knowledge, Lessee is not in default under,
or in violation of, any Applicable Law, the violation of which would give rise
to a Material Adverse Change to Lessee;

          (r) neither the Lessee nor any Person authorized by the Lessee to act
on its behalf has directly or indirectly offered any beneficial interest in the
ownership of the Aircraft or the Lease or any interest in the Trust Estate and
Trust Agreement, or in any similar security relating to the Aircraft, the Lease,
the Trust Estate or the Trust Agreement, for sale to, or solicited any offer to
acquire any such interest or security from, or has sold any such interest or
security to, any Person in violation of the Securities Act or any applicable
state securities laws; and

          (s) Owner Trustee, as lessor under the Lease, is entitled to the
benefits of Section 1110 (as currently in effect) with respect to the Aircraft.

          Section 4.02. CERTAIN COVENANTS OF LESSEE. The Lessee covenants and
agrees as follows:

          (a) FILINGS AND RECORDINGS. The Lessee will cause to be done,
executed, acknowledged and delivered at the Lessee's cost and expense all such
further acts, conveyances and assurances as the Owner Trustee or the Owner
Participant shall reasonably require for accomplishing the purposes of the
Operative Agreements. Without limiting the generality of this Section 4.02(a),
the Lessee will promptly take, or cause to be taken, at the Lessee's cost and
expense, such action with respect to the recording, filing, re-recording and
re-filing of the Lease (including each supplement thereto), and any financing
statements or other instruments as may be reasonably requested by the Owner
Trustee and appropriate, to maintain the Owner Trustee's title to and interest
in the Aircraft and the Lessor's Estate, as against the Lessee and any third
parties, or if the Lessee cannot itself take, or cause to be taken, such action,
will furnish to the Owner 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 either of them to take such action at the Lessee's
cost and expense in a timely manner.

          (b) REGISTRATION. From and after the Delivery Date, the Lessee shall
cause the Aircraft to be duly registered, and at all times to remain duly
registered, in the name of the Owner Trustee (PROVIDED, that the Owner Trustee
and the Owner Participant shall be and remain Citizens of the United States),
under the Transportation Code, and shall furnish to the Owner Trustee such
information as may be required to enable the Owner Trustee to make application
for such registration; PROVIDED, HOWEVER, that the Lessee may, at any time cause
the Aircraft to be appropriately re-registered under the laws of a country with
which at the time of such registration the United States maintains normal
diplomatic relations and is listed on Exhibit E to the Lease; PROVIDED that:

               (i) at the time of re-registration, no Specified Default exists
     or would occur as a result of such re-registration;

                                       12
<Page>

               (ii) the Lessee shall pay all fees and expenses (including the
     reasonable fees and expenses of local counsel in such country) relating to
     such re-registration;

               (iii) the Lessee shall, at its cost, cause the interest of the
     Owner Trustee as owner of the Aircraft to be duly registered or recorded
     under the laws of such country and at all times thereafter to remain so
     duly registered or recorded unless and until the registration of the
     Aircraft is changed as provided herein, and shall, at its cost, cause to be
     done at all times all other acts including the filing, recording and
     delivery of any document or instrument and the payment of any sum necessary
     or, by reference to prudent industry practice in such country, advisable in
     order to create, preserve and protect such interest in the Aircraft as
     against the Lessee or any third parties in such jurisdiction, and the laws
     of such country would give effect to the Owner Trustee's title to and
     ownership interest in the Aircraft;

               (iv) the obligations of the Lessee (and of the Permitted
     Sublessee under a Sublease) and the rights and remedies of the Lessor and
     the Owner Participant under the Operative Agreements shall remain or be, as
     the case may be, legal, valid, binding and enforceable in such country;

               (v) the Lessee shall ensure that all insurance required by
     Section 9 of the Lease shall be in full force and effect prior to, at the
     time of, and after such change in registration and the Owner Participant
     and the Owner Trustee shall receive a certificate of Lessee's insurance
     broker to such effect;

               (vi) the country of such re-registration imposes aircraft
     maintenance standards approved by, or at least as stringent as those
     approved by, the FAA or the central civil aviation authority of the United
     Kingdom, France, Germany, Japan, the Netherlands or Canada;

               (vii) it shall not be necessary by reason of such re-registration
     or for purposes of enforcing remedies contained in the Lease or the related
     Sublease for the Owner Trustee or the Owner Participant to register or
     qualify to do business in such country;

               (viii) no Liens (except Permitted Liens) shall arise by reason of
     such re-registration;

               (ix) none of the Owner Trustee and the Owner Participant shall be
     subjected to any risk of adverse tax consequences as a result of such
     re-registration for which the Lessee does not then indemnify or cause to be
     indemnified such Person in a manner satisfactory in form and substance to
     such Person;

               (x) any export licenses and certificate of deregistration
     required in connection with any repossession or return of the Aircraft will
     be readily obtainable in the normal course without material delay or
     material burden on the Owner Trustee, it being agreed that the Lessee shall
     be responsible for the cost thereof;

                                       13
<Page>

               (xi) there is no tort liability of the owner or lessor of an
     aircraft not in possession thereof under the laws of such jurisdiction more
     onerous than under the laws of the United States or any state thereof (it
     being agreed that, in the event such opinion cannot be given in a form
     satisfactory to the Owner Participant, such opinion shall be waived if
     insurance reasonably satisfactory to the Owner Participant is provided to
     cover such risk);

               (xii) unless Lessee shall have agreed to provide insurance
     reasonably satisfactory to the Owner Participant covering the risk of
     requisition of use of or title to the Aircraft by the government of such
     country (so long as the Aircraft is registered under the laws of such
     country), the laws of such country require fair compensation by the
     government of such country payable in currency freely convertible into
     Dollars and freely removable from such country (without license or permit,
     unless Lessee prior to such proposed reregistration has obtained such
     license or permit or such license or permit will be readily obtainable in
     the normal course without material delay or material burden on the Owner
     Participant) for the taking or requisition by such government of such use
     or title;

               (xiii) the courts of such proposed country of registry will
     respect the choice of New York law to govern the Lease;

               (xiv) such re-registration may not be effected until after the
     Recovery Period unless the Lessee prepays on a lump sum basis any liability
     due under the Tax Indemnity Agreement as a result of such re-registration;

               (xv) the Owner Participant and the Owner Trustee shall have
     received opinions in scope, form and substance reasonably satisfactory to
     them, of counsel, expert in the laws of such country, to the effect set
     forth in clauses (iii), (iv) (with respect to the obligations of the Lessee
     under the Lease), (vii), (ix), (x), (xi), (xii) and (xiii) of this
     Section 4.02(b);

               (xvi) such proposed change in registration is made in connection
     with a Sublease to a Permitted Air Carrier and such Permitted Sublessee is
     domiciled in such country; and

               (xvii) Lessee shall deliver such request to Lessor and Owner
     Participant in writing at least 20 days in advance of the date of any such
     proposed change in registration.

Lessee agrees to pay on an After Tax Basis all reasonable out-of-pocket costs
and expenses (including, without limitation, reasonable counsel fees and
disbursements) of the Owner Participant and the Owner Trustee in connection with
any re-registration pursuant to this Section.

          (c) INFORMATION. The Lessee shall promptly furnish to the Owner
Trustee and the Owner Participant such information as may be required to enable
the Owner Trustee and the Owner Participant timely to file any reports required
to be filed by the Owner Trustee as the Lessor and the Owner Participant under
the Lease with any governmental authority as a result of the Owner Trustee's
ownership interest in the Aircraft.

                                       14
<Page>

          (d) CORPORATE EXISTENCE. The Lessee shall at all times maintain its
corporate existence, except as permitted by Section 4.02(e) hereof, and all of
its rights, privileges and franchises necessary in the normal conduct of its
business, except for any corporate right, privilege or franchise that it
determines is no longer necessary or desirable in the conduct of its business.

          (e) MERGER AND CONSOLIDATION. The Lessee shall not, during the Term,
enter into any merger with or into or consolidation with, or sell, convey,
transfer, lease or otherwise dispose of in one or a series of transactions all
or substantially all of its assets as an entirety to any Person, unless the
surviving corporation or Person which acquires by purchase, conveyance, transfer
or lease all or substantially all of the assets of the Lessee as an entirety (i)
is a domestic corporation organized and existing under the laws of the United
States or any State of the United States, (ii) is a Citizen of the United
States, (iii) is a Section 1110 Person, so long as such status is a condition to
the availability of Section 1110, (iv) if not the Lessee, executes a duly
authorized, legal, valid, binding, and enforceable agreement, reasonably
satisfactory in form and substance to Owner Trustee and Owner Participant,
containing an effective assumption of all of the Lessee's, as applicable,
obligations hereunder and under the other Operative Agreements, and each other
document contemplated hereby or thereby and delivers such instrument to the
Owner Participant and the Owner Trustee, (v) provides an opinion from counsel
(which counsel may be the Lessee's General Counsel) delivered to the Owner
Trustee and the Owner Participant, which opinion shall be reasonably
satisfactory to the Owner Participant, and an officer's certificate (which may
rely, as to legal matters, on such legal opinion), each stating that such
merger, consolidation, conveyance, transfer, lease or other disposition and the
instrument noted in clause (iv) above comply with this Section 4.02(e), that
such instrument is a legal, valid and binding obligation of, and is enforceable
against, such survivor or Person, and that all conditions precedent herein
provided for relating to such transaction have been complied with, and (vi) such
survivor or Person makes such filings and recordings with the FAA as may be
required pursuant to part A of subtitle VII of Title 49, United States Code to
evidence such merger or consolidation; PROVIDED THAT, no such merger,
consolidation or conveyance, transfer or lease shall be permitted if (1)
immediately after giving effect to such consolidation, merger, purchase,
conveyance, transfer, lease or other disposition, an Event of Default shall have
occurred and be continuing or (2) the surviving Person in such transaction has a
tangible net worth, as determined in accordance with generally accepted
accounting principles immediately following such transaction, of less than
seventy-five percent (75%) of Lessee, as measured immediately prior to such
transaction.

          Upon any consolidation or merger, or any conveyance, transfer or lease
of all or substantially all of the assets of the Lessee and the satisfaction of
the conditions specified in this Section 4.02(e), the successor corporation
formed by such consolidation or into which the Lessee is merged or the Person to
which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Lessee under
this Agreement and the Lease and each other Operative Agreement and any other
document contemplated hereby and thereby to which the Lessee is a party with the
same effect as if such successor corporation had been named as the Lessee herein
and therein. No such consolidation or merger, or sale, conveyance, transfer or
lease of all or substantially all of the assets of the Lessee as an entirety
shall have the effect of releasing the Lessee or any successor corporation which
shall theretofore have become the Lessee hereunder in the manner prescribed in
this Section 4.02(e) from its

                                       15
<Page>

liability hereunder or under the other Operative Agreements. Nothing contained
herein shall permit any lease, sublease, or other arrangement for the use,
operation or possession of the Aircraft except in compliance with the applicable
provisions of the Lease.

          (f) CHANGE OF LOCATION. The Lessee agrees to give prompt written
notice (but in any event within 30 days prior to the expiration of the period of
time specified under Applicable Law to prevent lapse of perfection) to the Owner
Participant and the Owner Trustee of any change in the address of its chief
executive office (as such term is used in Article 9 of the Uniform Commercial
Code) or of any change in its corporate name.

          (g) FINANCIAL STATEMENTS. The Lessee agrees to furnish to the Owner
Participant during the Term:

               (i) within 60 days after the end of each of the first three
     fiscal quarters in each fiscal year of the Lessee, unaudited consolidated
     balance sheets of the Lessee and its subsidiaries (if any) as of the end of
     such quarter and related consolidated statements of income, shareholder's
     equity and cash flows of the Lessee and its subsidiaries (if any) for the
     period commencing at the end of the previous fiscal year and ending with
     the end of such quarter;

               (ii) within 120 days after the end of each fiscal year of the
     Lessee, a copy of the annual report for such year for the Lessee or the
     affiliated group of which the Lessee is a member (on a consolidated basis,
     if applicable) and a balance sheet of the Lessee and its subsidiaries (if
     any) as of the end of such fiscal year and related statements of income,
     shareholder's equity and cash flows of the Lessee for such fiscal year, in
     comparative form with the preceding fiscal year, in each case certified by
     independent certified public accountants of national standing as having
     been prepared in accordance with generally accepted accounting principles
     in the United States;

               (iii) within 120 days after the end of each fiscal year of the
     Lessee, an Officer's Certificate of the Lessee, to the effect that the
     signer is familiar with or has reviewed the relevant terms of the Lease and
     has made, or caused to be made under his supervision, a review of the
     transactions and conditions of the Lessee during the preceding fiscal year
     and that such review has not disclosed the existence during such period,
     nor does the signer have knowledge of the existence as of the date of such
     certificate, of any condition or event which constituted or constitutes a
     Default or Event of Default, or, if any such condition or event existed or
     exists, specifying the nature and period of existence thereof and what
     action the Lessee has taken or is taking or proposes to take with respect
     thereof; and

               (iv) from time to time, such other non-confidential financial
     information as the Lessor or the Owner Participant may reasonably request.

          (h) FILING OF DOCUMENTS. Lessee, at its sole cost and expense, will
cause the documents filed with the FAA pursuant to Section 3.01(j), the
financing statements required pursuant to Section 3.01(k) and all continuation
statements (and any amendments necessitated by any combination, consolidation or
merger pursuant to Section 4.02(e), or any relocation of its

                                       16
<Page>

chief executive office) in respect of such financing statements to be prepared
and, subject only to the execution and delivery thereof by Owner Trustee, duly
and timely filed and recorded, or filed for recordation, to the extent permitted
under the Transportation Code (with respect to such documents filed with the
FAA) or the Uniform Commercial Code or similar law of any other applicable
jurisdiction (with respect to such other documents).

          (i) ANNUAL FOREIGN OPINION. If the Aircraft has been registered in a
country other than the United States pursuant to Section 4.02(b), Lessee will
furnish to Owner Trustee and Owner Participant annually after such registration
is effected, an opinion of special counsel reasonably satisfactory to Owner
Participant stating that, in the opinion of such counsel, either that (i) such
action has been taken with respect to the recording, filing, rerecording and
refiling of the Operative Agreements and any supplements and amendments thereof
as is necessary to establish, perfect and protect Owner Trustee's right, title
and interest in and to the Aircraft and the Operative Agreements, reciting the
details of such actions, or (ii) no such action is necessary to maintain the
perfection of such right, title and interest.

          Section 4.03. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties of the Lessee provided in Section 4.01 and in any
other Operative Agreement shall survive the delivery of the Aircraft and the
expiration or other termination of this Agreement and the other Operative
Agreements.

                                   ARTICLE 5.
            OTHER PARTIES' REPRESENTATIONS, WARRANTIES AND COVENANTS

          Section 5.01. REPRESENTATIONS, WARRANTIES AND COVENANTS OF OWNER
PARTICIPANT.

          (a) REPRESENTATIONS AND WARRANTIES. The Owner Participant represents
and warrants that, as of the Delivery Date (unless any such representation and
warranty is specifically made as of an earlier date, in which case the Owner
Participant represents and warrants as of such earlier date):

               (i) it is a corporation duly incorporated and validly existing in
     good standing under the laws of State of New York and it has full corporate
     power, authority and legal right to carry on its present business and
     operations, to own or lease its properties and to enter into and to carry
     out the transactions contemplated by this Agreement and the other Operative
     Agreements to which it is party;

               (ii) the execution, delivery and performance by it of this
     Agreement and the other Operative Agreements to which it is party have been
     duly authorized by all necessary corporate action on its part;

               (iii) neither the execution, delivery or performance by the Owner
     Participant of the Operative Agreements to which it is party, nor
     compliance with the terms and provisions hereof or thereof, conflicts or
     will conflict with or results or will result in a breach or violation of
     any of the terms, conditions or provisions of, under any law, governmental
     rule or regulation applicable to the Owner Participant or the charter
     documents, as amended, or bylaws, as amended, of the Owner Participant or
     any order,

                                       17
<Page>

     writ, injunction or decree of any court or governmental authority against
     the Owner Participant or by which it or any of its properties is bound or
     any indenture, mortgage or contract or other agreement or instrument to
     which the Owner Participant is a party or by which it or any of its
     properties is bound, or constitutes or will constitute a default thereunder
     or results or will result in the imposition of any Lien upon any of its
     properties, except for any such conflict, breach or default which would not
     have a material adverse effect on the Owner Participant or its ability to
     perform its obligations under the Operative Agreements;

               (iv) the Operative Agreements to which it is party have been duly
     executed and delivered by the Owner Participant and constitute the legal,
     valid and binding obligations of the Owner Participant enforceable against
     it in accordance with their terms except as such enforceability may be
     limited by bankruptcy, insolvency, or other similar laws or general
     equitable principles;

               (v) there are no pending or, to the knowledge of the Owner
     Participant, threatened actions, suits, investigations or proceedings
     against the Owner Participant before any court, administrative agency or
     tribunal which are expected to materially adversely affect the ability of
     the Owner Participant to perform its obligations under this Agreement and
     the other Operative Agreements to which it is or is to be a party and the
     Owner Participant knows of no pending or threatened actions or proceedings
     before any court, administrative agency or tribunal involving it in
     connection with the transactions contemplated by the Operative Agreements;

               (vi) neither the execution and delivery by it of this Agreement
     or the other Operative Agreements to which it is a party nor the
     performance of obligations hereunder or thereunder requires the consent or
     approval of or the giving of notice to, the registration with, or the
     taking of any other action in respect of, any governmental authority or
     agency that would be required to be obtained or taken by the Owner
     Participant except for filings contemplated by this Agreement;

               (vii) the funds to be used by the Owner Participant to acquire
     its interests under this Agreement do not constitute assets (within the
     meaning of ERISA and any applicable rules and regulations) of an ERISA
     Plan;

               (viii) the Owner Participant is a bank, trust company, insurance
     company, financial institution or corporation with a combined capital and
     surplus or net worth of at least $50,000,000;

               (ix) the Owner Participant acknowledges that the Residual Value
     Guarantee Agreement and the Guarantee Agreement have not been disclosed to
     or reviewed by the Lessee;

               (x) the Owner Participant has not granted any right to the
     Manufacturer under the Residual Value Guarantee Agreement or the Guarantee
     Agreement which is inconsistent with the rights of the Lessee under the
     Operative Agreements; and

                                       18
<Page>

               (xi) the amount guaranteed by the Manufacturer under the Residual
     Value Guarantee Agreement is the Guaranteed Amount.

          Notwithstanding the foregoing or anything else contained in this
Agreement, the Owner Participant makes no representation or warranty in this
Agreement with respect to laws, rules or regulations relating to aviation or to
the nature or use of the equipment owned by the Owner Trustee, including,
without limitation, the airworthiness, value, condition, workmanship, design,
patent or trademark infringement, operation, merchantability or fitness for use
of the Aircraft, other than such laws, rules or regulations relating to the
citizenship requirements of the Owner Participant under applicable aviation law.

          (b) LESSOR'S LIENS. The Owner Participant represents, warrants and
covenants that on the Delivery Date there are no Lessor's Liens attributable to
it (or an Affiliate thereof). The Owner Participant agrees with and for the
benefit of the Lessee and the Owner Trustee that the Owner Participant will, at
its own cost and expense, take such action as may be necessary to duly discharge
and satisfy in full, promptly after the same first becomes known to the Owner
Participant, any Lessor's Lien attributable to the Owner Participant (or an
Affiliate thereof), PROVIDED, HOWEVER, that the Owner Participant shall not be
required to discharge or satisfy such Lessor's Lien which is being contested by
the Owner Participant in good faith and by appropriate proceedings so long as
such proceedings do not involve any material risk of the sale, forfeiture or
loss of the Aircraft or the Lessor's Estate or any interest in any thereof.

          (c) ASSIGNMENT OF INTERESTS OF OWNER PARTICIPANT. At any time after
the Delivery Date and subject to satisfaction of the conditions set forth in
this Section 5.01(c), the Owner Participant may assign, convey or otherwise
transfer to a single Person all (but not less than all) of the Beneficial
Interest, PROVIDED that (i) the Owner Participant gives the Lessee at least 10
days' notice of such assignment, conveyance or other transfer, (ii) the Owner
Participant and any Owner Participant Guarantor shall remain liable for all
obligations of the Owner Participant under the Trust Agreement and the other
Operative Agreements to which the Owner Participant is a party to the extent
(but only to the extent) relating to the period on or before the date of such
transfer, (iii) the transferee agrees by a written instrument substantially in
the form attached hereto as Exhibit B-1 (or otherwise in form and substance
reasonably satisfactory to Lessee) to assume liability for, and undertake
performance of, all obligations of the Owner Participant under the Trust
Agreement and the other Operative Agreements to which such Owner Participant is
a party relating to the period after the date of transfer, (iv) the transferee
shall make a representation to the effect that the funds to be used by the
transferee to acquire the Beneficial Interest do not constitute the assets of an
ERISA Plan, (v) at or prior to the time of such transfer, the transferee shall
furnish an opinion of counsel substantially in the form attached hereto as
Exhibit B-3 (or otherwise in form and substance reasonably satisfactory to
Lessee) (which counsel may be in-house counsel) to the effect that such
transferee and any guarantor of the payment and performance obligations of such
transferee, as the case may be, shall have requisite power and authority and
legal right to enter into and carry out the transactions contemplated hereby;
and that such agreement and any guaranty of the transferee's obligations has
been duly authorized, executed and delivered by the transferee or the guarantor
of the payment and performance obligations of such transferee, as the case may
be, and is a valid and binding agreement of the transferee or the guarantor of
the payment and performance obligations of such transferee enforceable in
accordance with its terms, subject to customary exceptions for such

                                       19
<Page>

opinions and that the transfer does not violate the Applicable Law of the
jurisdiction in which such counsel is located, and (vi) the Lessee shall have
received an opinion from counsel selected by Owner Participant and reasonably
acceptable to Lessee that no withholding tax will be imposed by the U.S. on
Basic Rent, assuming that the Lessee is a U.S. Person. Any such transferee shall
(a) be (i) a bank, savings institution, finance company, leasing company or
trust company, national banking association acting for its own account or in a
fiduciary capacity as trustee or agent under any pension, retirement, profit
sharing or similar trust or fund, insurance company, financial institution,
fraternal benefit society or a corporation acting for its own account having a
combined capital and surplus (or, if applicable, consolidated net worth or its
equivalent) of not less than $50,000,000, (ii) a subsidiary of any Person
described in clause (i) where such Person provides (A) support for the
obligations assumed by such transferee subsidiary reasonably satisfactory to the
Lessee and the Owner Trustee or (B) a guaranty of such transferee subsidiary's
obligations substantially in the form attached hereto as Exhibit B-2 (or
otherwise in form and substance reasonably satisfactory to Lessee and Owner
Trustee), or (iii) an Affiliate of the transferring Owner Participant, so long
as such Affiliate has a combined capital and surplus (or, if applicable,
consolidated net worth or its equivalent) of not less than $50,000,000 (unless
the Owner Participant remains liable for the obligations of such Affiliate under
the Operative Agreements, in which case there shall be no such net worth
requirement), (b) be legally capable of binding itself to the obligations of the
Owner Participant and shall expressly agree to assume all obligations of the
Owner Participant under the Trust Agreement and this Agreement and (c) provide
representations, warranties, and covenants substantially similar to those
contained in clauses (a) and (c) of this Section 5.01; PROVIDED that, without
the prior written consent of the Lessee, such transferee shall not be an airline
or other aircraft operator or competitor of the Lessee in the business of air
transportation or an Affiliate of any thereof unless such Affiliate is (i)
General Electric Company, International Lease Finance Corporation, GPA, GATX
Corporation or Bouillon Aviation, (ii) any wholly-owned subsidiary of an entity
listed in the foregoing clause (i) that is (X) a special purpose corporation
limited to holding Owner Participant's interest in the transactions or (Y)
primarily engaged in the business of owning and leasing assets to third-party
lessees and which is not engaged in the business of an airline, other commercial
aircraft operation or freight forwarder or (iii) an entity from which Lessee has
leased an aircraft directly (or through a trust) and not as a result of the
transfer to such entity of any aircraft subject to an existing lease with
Lessee; PROVIDED that Lessee's consent shall not be required if an Event of
Default shall have occurred and be continuing at the time of such transfer; and
PROVIDED FURTHER that neither such transferee nor any Affiliate thereof shall
(x) be a party to any material litigation or arbitration (whether as plaintiff
or defendant) with the Lessee or any Affiliate of the Lessee or (y) be
attempting a hostile takeover of the Lessee or any Affiliate of the Lessee. A
transferee hereunder shall be a Citizen of the United States or has established
a voting trust, voting powers or other arrangement reasonably satisfactory to
the Owner Trustee and the Lessee to permit the Owner Trustee to be the
registered owner of the Aircraft under the Transportation Code, without in any
way restricting the Lessee's use and operation of the Aircraft. The Owner
Trustee shall not be on notice of or otherwise bound by any such assignment,
conveyance or transfer unless and until it shall have received an executed
counterpart of the instrument of such assignment, conveyance or transfer. Upon
any such disposition by the Owner Participant to a transferee as above provided,
the transferee shall be deemed the "Owner Participant" for all purposes of the
Operative Agreements, and shall be deemed to have acquired the same interest in
the Lessor's Estate as theretofore held by its

                                       20
<Page>

transferor; and each reference therein to the "Owner Participant" shall
thereafter be deemed a reference to such transferee and the transferring Owner
Participant shall be released from all of its obligations under the Operative
Agreements to the extent such obligations are assumed by such transferee. All
reasonable fees and expenses incurred by Lessee, Owner Participant or Owner
Trustee in connection with any transfer by the Owner Participant permitted by
this Section 5.01(c) will be reimbursed by the Owner Participant, unless an
Event of Default has occurred and is continuing, in which case any fees and
expenses incurred by Lessee shall not be so reimbursed; PROVIDED, HOWEVER, that
in each case bills shall be submitted to the Owner Participant prior to payment.
Each of the parties hereto agree, to the extent so requested by the Owner
Participant, to use reasonable efforts to cooperate with the Owner Participant
in effecting any assignment, conveyance or other transfer permitted pursuant to
this Section 5.01(c), including providing its written consent and
acknowledgement to any such assignment, conveyance or other transfer and, in the
case of the Lessee, providing new insurance certificates that reflect the
interest of the transferee. After the expiration or termination of the Term of
the Lease, the Owner Participant may freely assign, convey or otherwise transfer
all or any part of the Beneficial Interest without compliance with this
Section 5.01(c), provided that no such transfer shall release the Owner
Participant from its obligations under the Operative Agreements accrued prior to
the end of the Term.

          (d) ACTIONS WITH RESPECT TO LESSOR'S ESTATE, ETC. The Owner
Participant agrees that it will not take any action to subject the Lessor's
Estate or the trust established by the Trust Agreement, as debtor, to the
reorganization or liquidation provisions of the Bankruptcy Code or any other
applicable bankruptcy or insolvency statute.

          (e) CITIZENSHIP. The Owner Participant agrees, solely for the benefit
of the Lessee and the Owner Trustee, that if at any time on or after the
Delivery Date when the Aircraft is registered or the Lessee proposes to register
the Aircraft in the United States (i) either the Owner Participant shall cease
to be, or an event which has been publicly disclosed has occurred of which the
Owner Participant has knowledge and which will cause the Owner Participant to
cease to be, a Citizen of the United States, and (ii) the Aircraft shall or
would therefore become ineligible for registration in the name of the Owner
Trustee under the Transportation Code and regulations then applicable thereunder
(such eligibility to be determined without regard to any provision of law that
permits the U.S. registration of the Aircraft by restricting where it is based
or used), then the Owner Participant shall give notice thereof to the Lessee and
the Owner Trustee and shall (at its own expense and without any reimbursement or
indemnification from the Lessee) immediately (and in any event within a period
of 20 days) promptly (x) effect a voting trust or other similar arrangement, (y)
transfer in accordance with the terms of this Agreement and the Trust Agreement
all its rights, title and interest in and to such Trust Agreement, the Lessor's
Estate and this Agreement, or (z) take any other alternative action that would
prevent any deregistration, or maintain or permit the United States
registration, of the Aircraft (determined without regard to any provision of law
that permits the U.S. registration of the Aircraft by restricting where it is
based or used). Each party hereto agrees, upon the request and at the sole
expense of the Owner Participant, to cooperate with the Owner Participant in
complying with its obligations under the provisions of the first sentence of
this Section 5.01(e), but without any obligation on the part of such other party
to take any action believed by it in good faith to be unreasonably burdensome to
such party or materially adverse to its business interests.

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          (f) GUARANTEES. The Owner Participant agrees for the benefit of the
Lessee that it shall not make or consent to any changes to the Residual Value
Guarantee Agreement or the Guarantee Agreement that would make the
representation in Section 5.01(a)(x) incorrect at the time of such change or
that would increase the Guaranteed Amount and the Owner Participant agrees to
provide notice to the Lessee of any decrease in the Guaranteed Amount and the
amount of such decrease.

          Section 5.02. CITIZENSHIP.

          (a) GENERALLY. The Owner Trustee, in its individual capacity,
represents and warrants that it is and on the Delivery Date will be a Citizen of
the United States. If the Owner Trustee in its individual capacity does not
comply with the requirements of this Section 5.02, the Owner Trustee and the
Lessee hereby agree that no Default shall be deemed to exist due to
non-compliance by the Lessee with the registration requirements in the Lease or
in Section 4.02(b) hereof occasioned solely by such noncompliance of the Owner
Trustee.

          (b) OWNER TRUSTEE. The Owner Trustee, in its individual capacity,
covenants that if at any time on or after the Delivery Date any of its
Responsible Officers shall have actual knowledge that it has ceased to be a
Citizen of the United States, it will resign immediately as the Owner Trustee if
such citizenship is necessary for registration of the Aircraft in the Owner
Trustee's name under the Transportation Code as in effect at such time (such
necessity to be determined without regard to any provision of law that permits
the U.S. registration of the Aircraft by restricting where it is based or used)
or, if it is not necessary for such registration, if the Owner Trustee is
informed in writing by the Lessee or the Owner Participant that such lack of
United States citizenship would have any adverse effect on the Lessee or the
Owner Participant. The Owner Trustee, in its individual capacity, further
covenants that if at any time it appears reasonably probable that it will cease
to be a Citizen of the United States based on information that is (i) known to a
Responsible Officer of the Owner Trustee or (ii) generally known to the public,
it will promptly so notify, to the extent permitted by law, all parties to this
Agreement.

          Section 5.03. REPRESENTATIONS, WARRANTIES AND COVENANTS OF TRUST
COMPANY AND THE OWNER TRUSTEE.

          (a) REPRESENTATIONS AND WARRANTIES. In addition to and without
limiting its other representations and warranties provided for in this Article
5, Trust Company represents and warrants, in its individual capacity with
respect to items (i), (ii), (iii)(A), (iv), (v), (vi), (vii), (viii), (ix) and
(x) below, and as the Owner Trustee with respect to items (iii)(B) and (iv), on
the Delivery Date that:

               (i) it is a national banking association duly organized and
     validly existing in good standing under the laws of the United States with
     its principal place of business and chief executive office (as such terms
     are used in Article 9 of the Uniform Commercial Code) in the State of Utah
     at the address set forth in Section 12.01(b), and has full corporate power
     and authority, in its individual capacity or (assuming the Trust Agreement
     has been duly authorized, executed and delivered by the Owner Participant)
     as the Owner Trustee, as the case may be, to carry on its business as now
     conducted, and

                                       22
<Page>

     to execute, deliver and perform this Agreement and the Operative Agreements
     to which it is or is to be a party;

               (ii) the execution, delivery and performance by Trust Company,
     either in its individual capacity or as the Owner Trustee, as the case may
     be, of this Agreement and the Operative Agreements to which it is or is to
     be party have been duly authorized by all necessary corporate action on its
     part, and do not contravene its articles of association or by-laws or other
     constitutional documents; each of this Agreement and the other Operative
     Agreements to which it is or is to be a party has been duly authorized, and
     has been duly executed and delivered by Trust Company, either in its
     individual capacity or as the Owner Trustee, as the case may be, and
     neither the execution and delivery thereof nor Trust Company performance of
     or compliance with any of the terms and provisions thereof will violate any
     federal or Utah law or regulation governing Trust Company's banking or
     trust powers;

               (iii) (A) assuming due authorization, execution and delivery by
     each other party thereto, each of the Operative Agreements to which it is
     or is to be party when duly executed and delivered will, to the extent each
     such document is entered into by Trust Company in its individual capacity,
     constitute the legal, valid and binding obligation of Trust Company in its
     individual capacity enforceable against it in such capacity in accordance
     with its respective terms, except as such enforceability may be limited by
     bankruptcy, insolvency, reorganization or other similar laws or equitable
     principles of general application to or affecting the enforcement of
     creditors' rights (regardless of whether enforceability is considered in a
     proceeding in equity or at law), and the performance by Trust Company in
     its individual capacity of any of its obligations thereunder does not
     contravene any lease, regulation or contractual restriction binding on
     Trust Company in its individual capacity;

               (B) assuming due authorization, execution and delivery by each
     other party thereto, each of the Operative Agreements to which it is or is
     to be party when duly executed and delivered will, to the extent each such
     document is entered into by the Owner Trustee in its trust capacity,
     constitute the legal, valid and binding obligation of the Owner Trustee
     enforceable against it in such capacity in accordance with its respective
     terms, except as such enforceability may be limited by bankruptcy,
     insolvency, reorganization or other similar laws or general equitable
     principles, and the performance by the Owner Trustee of any of its
     obligations thereunder does not contravene any lease, regulation or
     contractual restriction binding on the Owner Trustee;

               (iv) there are no pending or, to its knowledge, threatened
     actions or proceedings against Trust Company before any court or
     administrative agency which would materially adversely affect the ability
     of Trust Company, either in its individual capacity or as the Owner
     Trustee, as the case may be, to perform its obligations under the Operative
     Agreements to which it is or is to be party;

               (v) its chief executive office (as such term is defined in
     Article 9 of the Uniform Commercial Code) is 79 South Main Street, Salt
     Lake City, Utah 84111 and it

                                       23
<Page>

     shall give the Lessee and the Owner Participant at least 30 days' prior
     written notice in the event of any change in its chief executive office or
     name;

               (vi) neither the execution and delivery by it, either in its
     individual capacity or as the Owner Trustee, as the case may be, of any of
     the Operative Agreements to which it is or is to be a party, requires on
     the part of Trust Company in its individual capacity or any of its
     Affiliates the consent or approval of or the giving of notice to, the
     registration with, or the taking of any other action in respect of, any
     federal or governmental authority or agency governing its banking or trust
     powers;

               (vii) the Owner Trustee holds whatever title to the Aircraft as
     was conveyed to it by the Seller and the Aircraft is free of Lessor's Liens
     attributable to Trust Company in its individual capacity;

               (viii) Trust Company is a Citizen of the United States;

               (ix) Trust Company has made a filing with the New York State
     Banking Department under Section 131(3) of the New York State Banking Law
     with respect to the trust formed by the Trust Agreement; and

               (x) there are no Expenses or Taxes that may be imposed on or
     asserted against the Trust, the Trust Estate or any part thereof or any
     interest therein, Lessee, Owner Participant or Owner Trustee (except, as to
     Owner Trustee, Taxes imposed on the fees payable to Owner Trustee) under
     the laws of the State of Utah in connection with the execution, delivery or
     performance of any Operative Agreement by Owner Trustee, which Expenses or
     Taxes would not have been imposed if Owner Trustee had not (x) had its
     principal place of business in, (y) performed (in its individual capacity
     or as Owner Trustee) any or all of its duties under the Operative
     Agreements in or (z) engaged in any activities unrelated to the
     transactions contemplated by the Operative Agreements in, the State of
     Utah.

          (b) LESSOR'S LIENS. Trust Company, in its individual capacity, further
represents, warrants and covenants that there are no Lessor's Liens attributable
to it in its individual capacity on the Delivery Date. The Owner Trustee, in its
trust capacity, and at the cost and expense of the Lessee, covenants that it
will in its trust capacity promptly, and in any event within 30 days after the
same shall first become known to it, take such action as may be necessary to
discharge duly any Lessor's Liens (other than a Permitted Security Interest)
attributable to it in its trust capacity. Trust Company, in its individual
capacity, covenants and agrees that it will at its own expense take such action
as may be necessary to duly discharge and satisfy in full, promptly, and in any
event within 30 days after the same shall first become known to it, any Lessor's
Liens attributable to it in its individual capacity which may arise at any time
after the date of this Agreement.

          (c) INDEMNITY FOR LESSOR'S LIENS. Trust Company, in its individual
capacity, agrees to indemnify and hold harmless the Lessee, the Owner
Participant and the Owner Trustee from and against any loss, cost, expense or
damage which may be suffered by the Lessee, the Owner Participant or the Owner
Trustee as a result of the failure of Trust Company to discharge

                                       24
<Page>

and satisfy any Lessor's Liens attributable to it in its individual capacity, as
described in Section 5.03(b) hereof.

          (d) SECURITIES ACT. None of Trust Company, the Owner Trustee or any
Person authorized by either of them to act on its behalf has directly or
indirectly offered any interest in the Lessor's Estate, or in any similar
security relating to the Lessor's Estate, for sale to, or solicited any offer to
acquire any such interest or security from, or has sold any such interest or
security to, any Person in violation of the Securities Act or any applicable
state securities laws.

          (e) ACTIONS WITH RESPECT TO LESSOR'S ESTATE, ETC. Neither Trust
Company, in its individual capacity, nor the Owner Trustee will take any action
to subject the Lessor's Estate or the trust established by the Trust Agreement,
as debtor, to the reorganization or liquidation provisions of the Bankruptcy
Code or any other applicable bankruptcy or insolvency statute.

          (f) OTHER BUSINESS. Owner Trustee will not enter into any business or
other activity except as contemplated by the Operative Agreements.

          (g) PERFORMANCE OF AGREEMENTS. Owner Trustee shall perform its
obligations under the Operative Agreements to which it is a party in accordance
with the terms thereof.

          Section 5.04. THE LESSEE'S RIGHT OF QUIET ENJOYMENT. Notwithstanding
any other provision of any of the Operative Agreements, each other party to this
Agreement agrees, severally and as to its own actions only, that it will not, so
long as no Event of Default shall have occurred and be continuing, take or cause
to be taken any action contrary to the Lessee's rights under the Lease,
including, without limitation, its rights to possession, use and quiet enjoyment
of the Aircraft during the Term, PROVIDED that nothing contained herein shall
affect any of the rights of the Owner Participant or the Owner Trustee expressly
granted to such Person under any Operative Agreement.

          Section 5.05. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS.
Representations, warranties and covenants of the Owner Participant and the Owner
Trustee (in its individual or trust capacity) provided for in this Article 5,
and their respective obligations under any and all of them, shall survive the
delivery of the Aircraft and the expiration or other termination of this
Agreement and the other Operative Agreements.

          Section 5.06. COMPLIANCE WITH TRUST AGREEMENT, ETC. Each of the Owner
Participant, Trust Company, and the Owner Trustee agrees with the Lessee that so
long as the Lease shall be in effect it will (i) comply with all of the terms of
the Trust Agreement applicable to it in its respective capacity, the
noncompliance with which would materially adversely affect any such party and
(ii) not take any action, or cause any action to be taken, to amend, modify or
supplement any other provision of the Trust Agreement in a manner that would
materially adversely affect any such party without the prior written consent of
such party. The Owner Trustee confirms for the benefit of the Lessee that it
will comply with the provisions of Article 2 of the Trust Agreement.
Notwithstanding anything else to the contrary in the Trust Agreement, so long as
the Lease remains in effect, the Owner Participant agrees not to terminate or
revoke the trust created by the Trust Agreement without the consent of
the Lessee.

                                       25
<Page>

                                   ARTICLE 6.
                                      TAXES

          Section 6.01. LESSEE'S OBLIGATION TO PAY TAXES.

          (a) GENERALLY. The Lessee agrees promptly to pay when due, and to
indemnify on an After Tax Basis and hold each Tax Indemnitee harmless from all
license, recording, documentary, registration and other fees and all taxes
(including, without limitation, income, gross receipts, sales, rental, use,
value added, property (tangible and intangible), AD VALOREM, excise and stamp
taxes), fees, levies, imposts, recording duties, duties, charges, assessments or
withholdings of any nature whatsoever, together with any assessments, penalties,
fines, additions to tax or interest thereon (individually, a "Tax," and
collectively called "Taxes"), however imposed or asserted (whether imposed upon
any Tax Indemnitee, the Lessee, all or any part of the Aircraft, Airframe, any
Engine or any Part or the Lessor's Estate, Rent, or otherwise upon or with
respect to any Operative Agreement or any transactions contemplated thereunder
or any payments thereunder or otherwise in connection therewith), by any
Federal, state or local government or taxing authority in the United States, or
by any government or taxing authority of a foreign country or of any political
subdivision or taxing authority thereof or by a territory or possession of the
United States or an international taxing authority, in any such case as relating
to or measured by:

               (i) the construction, purchase, charter, rental, assignment,
     presence, overhaul, control, acceptance, rejection, delivery, nondelivery,
     transport, location, ownership, registration, reregistration,
     deregistration, insuring, assembly, possession, repossession, operation,
     use, non-use, condition, maintenance, repair, improvement, conversion,
     sale, return, abandonment, preparation, installation, storage, redelivery,
     replacement, manufacture, leasing, subleasing, sub-subleasing,
     modification, alteration, rebuilding, importation, transfer of title,
     transfer of registration, exportation or other application or disposition
     of, or the imposition of any Lien (or the incurrence of any liability to
     refund or pay over any amount as a result of any Lien) on, the Aircraft,
     the Airframe, any Engine or any Part or any interest therein;

               (ii) amounts payable under the Operative Agreements;

               (iii) the Aircraft, or the income or other proceeds (x) received
     with respect to the Aircraft attributable to the transactions contemplated
     by the Operative Agreements or (y) held by the Owner Trustee under the
     Trust Agreement or after an Event of Default under the Lease;

               (iv) with respect to any Operative Agreement, any interest
     therein or by reason of the transactions described in or contemplated by
     the Operative Agreements;

               (v) the Aircraft, the Airframe, any Engine or any Part;

               (vi) the rentals (including Basic Rent and Supplemental Rent),
     receipts, earnings, principal, interest, fees, proceeds and any other
     income or amounts payable, whether actual or deemed, arising upon, under or
     in connection with any of the Operative Agreements;

                                       26
<Page>

               (vii) in the case of the Owner Participant, any "prohibited
     transaction," within the meaning of Section 406 of ERISA or
     Section 4975(c)(1) of the Code, arising out of or in connection with the
     acquisition or holding of the Owner Participant's interest in the
     Trust Estate.

          (b) EXCEPTIONS. The indemnity provided for in Section 6.01(a) shall
not extend to any of the following:

               (i) With respect to a Tax Indemnitee, Taxes, whether imposed by
     withholding or otherwise, based upon, measured by or with respect to the
     net or gross income, items of tax preference or minimum tax or excess
     profits, alternative minimum taxes, receipts, capital, franchise, net worth
     (whether, denominated income, excise, capital stock, or doing business
     taxes) or other similarly-based taxes (other than taxes that are in the
     nature of, sales, use, transfer, ad valorem, stamp, property, or similar
     taxes) ("Income Taxes") imposed by the United States or by any state, local
     or foreign jurisdiction, PROVIDED, HOWEVER, that this clause shall not
     exclude from the indemnity described in Section 6.01(a) above any such
     Income Taxes to be imposed by any such jurisdiction (other than the United
     States or any state or local taxing authority in any state in the United
     States) as a result of (I) the operation, registration, location, presence,
     or use of the Aircraft, Airframe, any Engine or any Part thereof, by the
     Lessee or any Affiliate thereof or any Sublessee within the jurisdiction of
     the taxing authority imposing such Tax, (II) the presence or activities of
     the Lessee or any Affiliate thereof or any Sublessee within the
     jurisdiction of the taxing authority imposing such Tax, (III) the status of
     the Lessee or any Affiliate thereof or any Sublessee as a foreign entity or
     as an entity owned in whole or in part by foreign persons, or (IV) the
     Lessee or any Affiliate thereof or any Sublessee having made (or having
     been deemed to have made) payments to such Tax Indemnitee from the
     jurisdiction of the taxing authority imposing such Tax,;

               (ii) Taxes imposed with respect to any period beginning after the
     earlier of (A) the discharge in full of the Lessee's obligation, if any, to
     pay Termination Value under and in accordance with the Lease, (B) the
     expiration of the Term of the Lease or (C) the termination of the Lease in
     accordance with the applicable provisions of the Lease thereof;

               (iii) As to the Owner Trustee, Taxes imposed against the Owner
     Trustee upon or with respect to any fees for services rendered in its
     capacity as Owner Trustee under the Trust Agreement;

               (iv) With respect to any Tax Indemnitee, Taxes resulting from the
     willful misconduct or gross negligence of such Tax Indemnitee or a Related
     Tax Indemnitee;

               (v) Taxes imposed on the Owner Trustee or the Owner Participant
     or any successor, assign or Affiliate thereof which became payable by
     reason of any mortgage, pledge, financing, voluntary transfer or
     disposition by such Tax Indemnitee subsequent to the Delivery Date,
     including revocation of the Trust, of any interest in some or all of the
     Aircraft, Airframe, Engines or Parts thereof or its interest in the

                                       27
<Page>

     Lessor's Estate or a transfer or disposition of shares or other interests
     in the Owner Trustee or the Owner Participant or a disposition in
     connection with a bankruptcy or similar proceedings involving either the
     Lessor or the Owner Participant or a transfer or disposition of shares or
     other interests in the Owner Trustee or the Owner Participant in each case
     other than (A) transfers resulting from a loss, substitution or
     modification of the Aircraft, Engines or any Part, (B) transfers pursuant
     to the Lessor's exercise of remedies in accordance with Section 17 of the
     Lease, (C) termination of the Lease upon the Lessee's exercise of Lessee's
     options pursuant to Section 14 of the Lease, or (D) a transfer to Lessee
     pursuant to Section 13(b) of the Lease; the parties agree to cooperate to
     minimize any such Taxes covered by this provision;

               (vi) Taxes subject to indemnification by the Lessee pursuant to
     the Tax Indemnity Agreement;

               (vii) Taxes imposed on a successor, assign or other transferee of
     any interest of a Tax Indemnitee in the Aircraft, any Engine or any Part or
     any Operative Agreement or any proceeds thereunder to the extent that the
     aggregate amount of such Taxes exceeds the aggregate amount of Taxes that
     would have been imposed on the transferor (determined at the time of the
     transfer) and that would have been indemnifiable pursuant to
     Section 6.01(a) hereof, provided that the exclusion in this clause (vii)
     shall not apply in the case of any such sale, assignment, transfer or
     disposition that occurs in connection with an Event of Default or in
     connection with a bankruptcy, insolvency or other proceeding for the relief
     of debtors in which the Lessee is a debtor;

               (viii) Any Taxes which have been properly included in the
     Purchase Price;

               (ix) Any Taxes imposed on the Owner Trustee or Owner Participant
     which would not have been imposed but for a Lessor's Lien;

               (x) In the case of the Owner Participant, any Taxes relating to,
     resulting from, arising out of or in connection with a "prohibited
     transaction" within the meaning of Section 406 of ERISA or
     Section 4975(c)(1) of the Code resulting from the direct or indirect use of
     assets of any ERISA Plan to acquire or hold Owner Participant's interest in
     the Trust Estate or in the case of any transferee of the Owner Participant
     referred to in Section 5.01(c), to purchase the Beneficial Interest
     pursuant to Section 5.01(c);

               (xi) Taxes that are being contested in accordance with the
     provisions hereof;

               (xii) United States withholding Taxes imposed on the Owner
     Participant as a result of the Owner Participant not being a U.S. Person;
     or

               (xiii) interest, penalties, fines or additions to tax to the
     extent they relate to Taxes for which no indemnity would be payable by
     Lessee pursuant to this Section 6.01(b).

                                       28
<Page>

          Section 6.02. AFTER TAX BASIS. The amount which the Lessee shall be
required to pay with respect to any Tax indemnified against under Section 6.01
(an "Indemnifiable Tax") shall be an amount sufficient to restore the Tax
Indemnitee, on an After Tax Basis, to the same position such party would have
been in had such Tax not been incurred, taking into account any tax benefits
recognized by such Tax Indemnitee as a result of the Indemnifiable Tax. If any
Tax Indemnitee actually realizes a tax benefit (whether by credit, deduction or
otherwise), or would have realized such a benefit as to which it has been given
notice if properly claimed, and with respect to Owner Participant, the Owner
Participant has not determined in good faith that claiming such benefit would
have a material adverse impact on the Owner Participant or an Affiliate thereof,
by reason of the payment of any Tax paid or indemnified against by the Lessee,
provided that an Event of Default has not occurred and is not continuing, such
Tax Indemnitee shall promptly pay to the Lessee, to the extent such tax benefit
was not previously taken into account in computing such payment or indemnity,
but not before the Lessee shall have made all payments then due to such Tax
Indemnitee under this Agreement, the Tax Indemnity Agreement and any other
Operative Agreement, an amount equal to the lesser of (x) the sum of such tax
benefit plus any other tax benefit realized by such Tax Indemnitee that would
not have been realized but for any payment made by such Tax Indemnitee pursuant
to this sentence and not already paid to the Lessee, or (y) the amount of the
payment made under Section 6.01 hereof and this Section 6.02 by the Lessee to
such Tax Indemnitee plus the amount of any other payments by the Lessee to such
Tax Indemnitee theretofore required to be made under this Section 6.02 and
Sections 6.01 and 6.05 hereof (and the excess, if any, of the tax benefit over
the applicable amount described in clause (x) over the amount described in
clause (y) above shall be carried forward and applied to reduce PRO TANTO any
subsequent obligations of the Lessee to make payments to such Tax Indemnitee
pursuant to Section 6.01 hereof). If an amount payable by any Tax Indemnitee to
the Lessee pursuant to this Section 6.02 is not paid when due because of the
occurrence and continuation of any Event of Default, such amount shall be
payable by any Tax Indemnitee to the Lessee upon the Lessee's curing all Events
of Default. The Lessee shall reimburse on an After Tax Basis such Tax Indemnitee
(subject to Section 6.01(b), but only insofar as subsections (iv), (vi), (vii),
(ix), (x), (xi), (xii) and (xiii) thereof would apply) for any payment of a tax
benefit pursuant to the preceding sentence (or a tax benefit otherwise taken
into account in calculating the Lessee's indemnity obligation hereunder) to the
extent that such tax benefit is subsequently disallowed or reduced.

          In determining the order in which any Tax Indemnitee utilizes
withholding or other foreign taxes as a credit against such Tax Indemnitee's
United States income taxes, such Tax Indemnitee shall be deemed to utilize (i)
first, all foreign taxes other than those described in clause (ii) below; and
(ii) then, on a pro rata basis, all foreign taxes with respect to which such Tax
Indemnitee is entitled to obtain indemnification pursuant to an indemnification
provision contained in any lease, loan agreement, or other financing document
(including this Agreement) that is similar to the indemnification provision in
this Article 6.

          Section 6.03. TIME OF PAYMENT. Any amount payable to a Tax Indemnitee
pursuant to this Article 6 shall be paid promptly, but in any event within 30
days after receipt of a written demand therefor from such Tax Indemnitee
accompanied by a written statement describing in reasonable detail the basis for
such indemnity and the computation of the amount so payable, PROVIDED that in
the case of amounts which are being contested by the Lessee in good faith or by
the Tax Indemnitee in either case pursuant to Section 6.04 hereof, or subject to

                                       29
<Page>

verification proceedings pursuant to Section 6.11 hereof, such amount shall be
payable within 30 days after the time such contest or verification proceeding,
as the case may be, is finally resolved. In no event shall any amount be payable
under Section 6.01 until two Business Day prior to the due date for Tax
in issue.

          Section 6.04. CONTESTS.

          (a) NOTICE OF CLAIM. If a written claim is made against any Tax
Indemnitee for Taxes with respect to which the Lessee is liable for a payment or
indemnity hereunder, such Tax Indemnitee shall promptly (but in any event within
30 days of receipt thereof) give the Lessee notice in writing of such claim and
shall furnish the Lessee with copies of any written requests for information
sent to such Tax Indemnitee from any taxing authority to the extent relating to
such Taxes with respect to which the Lessee may be required to indemnify
hereunder; PROVIDED, HOWEVER, that the failure of a Tax Indemnitee to give such
notice or furnish such copy shall not terminate any of the rights of such Tax
Indemnitee under this Article 6, except (A) to the extent that the Lessee's
contest rights have been materially and adversely impaired by the failure to
provide such notice or copy or (B) to the extent that such failure results in
the imposition of, or an increase in the amount of, any penalties, interest or
additions to Tax related to the Tax which is the subject of such claim
or proceeding.

          (b) REQUEST FOR CONTEST. If a written claim shall be made against any
Tax Indemnitee for any Tax, other than an Income Tax, for which the Lessee may
be obligated to indemnify pursuant to Section 6.01 hereunder, and under
applicable law of the taxing jurisdiction the Lessee is allowed to contest
directly such Tax and the Tax to be contested is not reflected in a report or
return with other Taxes of any Tax Indemnitee (as confirmed in writing by such
Tax Indemnitee) and if the Tax Indemnitee determines in good faith that it will
not suffer any adverse consequences as a result and that no tax return of the
Tax Indemnitee will be kept open as a result of such contest beyond the
applicable statute of limitations period (as confirmed in writing by such Tax
Indemnitee), then the Lessee shall be permitted, at its expense and in its own
name, or, if consented to in writing by the Tax Indemnitee, in the name of such
Tax Indemnitee, to contest the imposition of such Tax (a " Lessee Controlled
Contest"); PROVIDED, HOWEVER, that the Lessee shall not be permitted or entitled
to contest any Tax unless (A) such contest will not result in the risk of an
imposition of criminal penalties or a more than de minimis risk of a sale,
forfeiture or loss of the Aircraft, the Airframe, the Engines or any part
thereof or the creation of any Lien other than Liens for Taxes of the Lessee (x)
either not yet due or being contested in good faith by appropriate proceedings
so long as such proceedings do not involve the risk of an imposition of criminal
penalties or a more than de minimis risk of any sale, forfeiture or loss of the
Aircraft (unless the Lessee has provided a bond or other sufficient protection
against any such risk reasonably satisfactory to the Tax Indemnitee), and (y)
for the payment of which such reserves, if any, as required to be provided under
generally accepted accounting principles have been provided and, to the extent
permitted by law, the Lessee shall be entitled to withhold payment during
pendency of such contest, (B) if an Event of Default shall have occurred and be
continuing, the Lessee shall have provided security for its obligations
hereunder reasonably satisfactory to the Owner Participant by placing in escrow
funds to cover any such obligations, (C) the Lessee shall have agreed to pay
such Tax Indemnitee on demand and on an After Tax Basis all costs and expenses
that such Tax Indemnitee actually incurs in connection with contesting such
claim (including, without limitation, all costs, expenses, losses, reasonable
legal

                                       30
<Page>

and accounting fees, disbursements, or penalties, interest and addition to tax),
(D) if such contest shall be conducted in a manner requiring the payment of the
claim in advance, the Lessee shall have advanced sufficient funds, on an
interest free basis, to make the payment required (or the Lessee shall have paid
the amount required directly to the appropriate taxing authority), and agreed to
indemnify the Tax Indemnitee against any additional net adverse tax consequences
on an After Tax Basis to such Tax Indemnitee of such advance, and (E) if
requested by the Owner Participant, independent tax counsel selected by Owner
Participant and reasonably acceptable to the Lessee has rendered an opinion
within 30 days of the Owner Participant providing notice of the claim to the
Lessee that a Reasonable Basis exists for contesting such claim.

          If the Lessee shall so request within 30 days after receipt of such
notice from a Tax Indemnitee under this Section 6.04 hereof and with respect to
a Tax for which the Lessee may be obligated to indemnify pursuant to
Section 6.01 and which does not satisfy the requirements to constitute a Lessee
Controlled Contest, such Tax Indemnitee shall in good faith at the Lessee's
after-tax expense contest the imposition of such Tax; PROVIDED, HOWEVER, that
such Tax Indemnitee, after considering in good faith any advice of the Lessee
and the Lessee's counsel concerning the forum in which the adjustment is most
likely to be favorably resolved, may in its sole discretion select the manner
and forum for such contest and determine whether any such contest shall be made
by (a) resisting payment thereof if lawful and practicable or not paying the
same except under protest if protest is necessary and proper in each case so
long as non-payment will not result in a more than de minimis risk of the sale,
forfeiture or loss of, or the creation of a Lien other than a Permitted Lien on
the Aircraft, Airframe or any Engine or any risk of criminal liability; or (b)
if the payment be made, using reasonable efforts to obtain a refund thereof in
appropriate administrative and/or judicial proceedings; PROVIDED FURTHER,
HOWEVER, that at such Tax Indemnitee's option, such contest shall be conducted
by the Lessee in the name of such Tax Indemnitee if such Tax Indemnitee so
requests in writing and that in no event shall such Tax Indemnitee be required
or the Lessee permitted to contest under this paragraph the imposition of any
Tax for which the Lessee may be obligated pursuant to this Section 6.01 unless:

               (i) in the case of an Income Tax, the Lessee shall have furnished
     at the Lessee's expense an opinion of counsel selected by the Lessee and
     reasonably satisfactory to such Tax Indemnitee to the effect that a
     Reasonable Basis exists for pursuing such contest;

               (ii) the Lessee shall have agreed to pay such Tax Indemnitee on
     demand and on an After Tax Basis all reasonable costs and expenses that
     such Tax Indemnitee may incur in connection with contesting such claim
     (including, without limitation, all costs expenses, losses, reasonable
     legal and accounting fees, disbursements, penalties, interest and additions
     to tax);

               (iii) such Tax Indemnitee shall have determined that the action
     to be taken will not result in any more than de minimis danger of sale,
     forfeiture or loss of, or the creation of any Lien other the Liens for
     Taxes of the Lessee (or any Sublessee) either not yet due or being
     contested in good faith by appropriate proceedings so long as such
     proceedings do not involve any more than de minimis risk of the sale,
     forfeiture or loss of the Aircraft, the Airframe or any Engine or any
     interest therein (unless the Lessee has

                                       31
<Page>

     provided a bond or other sufficient protection against any such risk
     reasonably satisfactory to the Tax Indemnitee) and for the payment of
     which such reserves, if any, as are required to be provided under generally
     accepted accounting principles have been provided;

               (iv) if an Event of Default shall have occurred and be
     continuing, the Lessee shall have provided security for its obligations
     hereunder reasonably satisfactory to the Owner Participant by placing in
     escrow sufficient funds to cover any such obligations;

               (v) Lessee shall have acknowledged its liability for such claims;

               (vi) such contest and related contests involving other equipment
     involve potential payments and/or indemnities by the Lessee (whether or not
     such indemnity is pursuant to this Agreement) of at least $25,000 in the
     aggregate; and

               (vii) if such contest shall be conducted in a manner requiring
     the payment of the claim in advance, the Lessee shall have advanced
     sufficient funds, on an interest free basis, to make the payment required,
     and agreed to indemnify the Tax Indemnitee against any additional net
     adverse tax consequences on an After Tax Basis to such Tax Indemnitee of
     such advance.

          In the case of a contest which is not a Lessee Controlled Contest, if
requested by the Lessee, the Tax Indemnitee shall appeal any adverse
administrative or judicial decision, except that the Tax Indemnitee shall not be
required to appeal any adverse decision to the United States Supreme Court
provided that with respect to an appeal of an adverse judicial decision a
substantial basis in law and fact must exist that such appeal will be
successful. If the Lessee is permitted under applicable law to contest a Tax
asserted against the Lessee and the same or similar Tax is also asserted against
the Tax Indemnitee, subject to the conditions herein, each of the Lessee and
such Tax Indemnitee shall conduct its contest in its own name and the Lessee and
such Tax Indemnitee will cooperate in a reasonable manner with respect to the
respective contests of such Tax.

          (c) DECLINING TO CONTEST; SETTLEMENT.

               (i) If, after the Lessee has properly requested a contest in
     accordance with this Section 6.04 and Lessee is then complying with the
     terms of this Section 6.04, any Tax Indemnitee shall at any time decline to
     take any action required under Section 6.04 with respect to such contest,
     then, if such failure shall cause the contest to be determined adversely or
     shall preclude such contest as a matter of law, the Lessee shall not be
     obligated to indemnify such Tax Indemnitee for such Tax and such Tax
     Indemnitee shall reimburse the Lessee for all amounts previously advanced
     by the Lessee in connection with such contest (other than costs and
     expenses of such contest).

               (ii) No Tax Indemnitee shall settle a contest of any indemnified
     Tax without requesting the Lessee's written consent (which consent will not
     be unreasonably withheld, as determined in the Lessee's good faith
     judgment). If any Tax Indemnitee shall settle a contest for any Tax without
     receiving the Lessee's written consent, then the

                                       32
<Page>

     Lessee shall not be obligated to indemnify such Tax Indemnitee for such Tax
     and the Tax Indemnitee shall reimburse the Lessee for all amounts
     previously advanced with respect to such contest (other than costs and
     expenses of such contest). Notwithstanding the preceding two sentences, no
     Tax Indemnitee shall be required to take or continue any action unless the
     Lessee shall have agreed to pay the Tax Indemnitee on a current and After
     Tax Basis all reasonable fees and expenses (including reasonable attorney's
     and accountant's fees) which such Tax Indemnitee may incur as a result of
     contesting such Taxes.

          (d) CONTINUING CLAIMS. Notwithstanding anything contained in this
Section 6.04 to the contrary, no Tax Indemnitee shall be required to contest any
claim if the subject matter thereof shall be of a continuing nature and shall
have previously been adversely decided pursuant to the contest provisions of
this Section 6.04 unless there shall have been a change in the law (including,
without limitation, amendments to statutes or regulations, administrative
rulings and court decisions) or the Lessee shall have provided new facts after
such claim shall have been so previously decided, and such Tax Indemnitee shall
have received an opinion of independent tax counsel selected by it and
reasonably approved by the Lessee and furnished at the Lessee's sole expense to
the effect that, as a result of such change or new facts, it is more likely than
not that the position which such Tax Indemnitee or the Lessee, as the case may
be, had asserted in such previous contest, would prevail.

          (e) CLAIMS BARRED. If (A) any Tax Indemnitee fails to give the Lessee
written notice pursuant to this Section 6.04 of any claim by any government or
taxing authority for any Tax for which the Lessee is obligated pursuant to this
Section 6.01, (B) as a direct result of such failure the contest of such claim
has been materially and adversely impaired and (C) the Lessee furnishes, at the
Lessee's expense, an opinion of counsel selected by the Lessee and reasonably
satisfactory to such Tax Indemnitee to the effect that, had the contest of such
claim not been materially and adversely impaired, a Reasonable Basis would have
existed for pursuing such contest, such Tax Indemnitee shall be deemed to have
waived its right to any payment by the Lessee that would otherwise be payable by
the Lessee pursuant to this Section 6.01 in respect of such claim.

          Section 6.05. REFUNDS. When a Tax Indemnitee becomes entitled to
receive a refund or credit against Tax of all or any part of any Taxes which the
Lessee shall have paid for such Tax Indemnitee or for which the Lessee shall
have reimbursed or indemnified such Tax Indemnitee, such Tax Indemnitee shall
pay, provided an Event of Default has not occurred and is not continuing, to the
Lessee an amount equal to the amount of such refund or credit, together with any
interest attributable thereto, less (x) all payments then due to such Tax
Indemnitee under this Article 6, and (y) Taxes imposed with respect to the
accrual or receipt thereof, including interest received attributable thereto,
plus any tax benefit realized by such Tax Indemnitee as a result of any payment
by such Tax Indemnitee made pursuant to this sentence; PROVIDED, HOWEVER, that
such amount shall not be payable (a) before such time as the Lessee shall have
made all payments or indemnities then due and payable to such Tax Indemnitee
under this Article 6 and (b) to the extent that the amount of such payment
(without regard to any interest component thereof) would exceed (i) the amount
of all prior payments by the Lessee to such Tax Indemnitee pursuant to this
Article 6 less (ii) the amount of all prior payments by such Tax Indemnitee to
the Lessee pursuant to this Article 6 (any such excess shall be carried forward
to

                                       33
<Page>

reduce PRO TANTO any subsequent obligations of the Lessee to make payments to
such Tax Indemnitee pursuant to Section 6.01 hereof). If an amount payable by
any Tax Indemnitee to the Lessee pursuant to this Section 6.02 is not paid when
due because of the occurrence and continuation of an Event of Default, such
amount shall be payable by any Tax Indemnitee to the Lessee upon the Lessee's
curing all Events of Default.

          Any subsequent loss of such refund or tax benefit shall be treated as
a Tax subject to indemnification under the provisions of this Article 6 (in the
case of any such tax benefit, subject to Section 6.01(b) but only insofar as
subsections (iv), (vi), (vii), (ix),(x), (xi), (xii) and (xiii) thereof would
apply).

          Section 6.06. REPORTS. In case any report or return is required to be
made with respect to any Taxes (other than Income Taxes) against which the
Lessee is or may be obligated to indemnify the Indemnitees under this Article 6,
the Lessee shall, to the extent it has knowledge thereof, make such report or
return, except for any such report or return that the Tax Indemnitee has
notified the Lessee that it intends to file, in such manner as will show the
ownership of the Aircraft in the Owner Trustee (unless the ownership of the
Aircraft is not shown on such report or return) and, upon request, shall send a
copy of the applicable portions of such report or return to the Tax Indemnitee
and the Owner Trustee or will notify the Tax Indemnitee of such requirement and
make such report or return in such manner as shall be satisfactory to such Tax
Indemnitee and the Owner Trustee. The Lessee will provide such information
within the possession or control of the Lessee as the Tax Indemnitee may
reasonably request in writing from the Lessee to enable the Tax Indemnitee to
fulfill its tax filing requirements with respect to the transactions
contemplated by the Operative Agreements (without duplication of any comparable
requirements of the Tax Indemnity Agreement) and any audit information request
arising from any such filing. The Tax Indemnitee will provide such information
within its possession or control as the Lessee may reasonably require from such
Tax Indemnitee to enable the Lessee to fulfill its tax filing requirements with
respect to the transactions contemplated by the Operative Agreements and any
audit information request arising from such filing; PROVIDED that in no event
shall any Tax Indemnitee be required to provide copies of any of its
tax returns.

          Section 6.07. SURVIVAL OF OBLIGATIONS. The representations,
warranties, indemnities and agreements of the Lessee provided for in this
Article 6 and the Lessee's obligations under any and all of them, in each case,
with respect to events or periods prior to the expiration or termination of the
Lease shall survive the expiration or other termination of the Operative
Agreements.

          Section 6.08. PAYMENT OF TAXES. With respect to any Tax otherwise
indemnifiable hereunder by the Lessee and applicable to the Aircraft, Airframe,
any Engine or Parts, to the extent permitted by the applicable federal, state,
local or foreign law, the Lessee shall pay such tax directly to the relevant
Taxing authority and file any returns or reports required with respect thereto
to the extent legally entitled to do so in its own name; PROVIDED, HOWEVER, that
the Lessee shall not make any statements or take any action which would indicate
that the Lessee or any Person other than the Owner Trustee or Owner Participant
is the owner of the Aircraft, the Airframe, any Engine or any Part or which
would otherwise be inconsistent with

                                       34
<Page>

the terms of the Lease or the Tax Indemnity Agreement and the position
thereunder of the Owner Trustee and the Owner Participant.

          Section 6.09. REIMBURSEMENTS BY INDEMNITEES GENERALLY. To the extent
the Lessee is required to pay or withhold any Tax imposed on or with respect to
a Tax Indemnitee in respect of the transactions contemplated by the Operative
Agreements, which Tax is not otherwise the responsibility of the Lessee under
the Operative Agreements, or any other written agreements between the Lessee and
such Tax Indemnitee, then such Tax Indemnitee shall pay to the Lessee within 30
days of the Lessee's demand therefor an amount which equals the amount actually
paid by the Lessee with respect to such Taxes.

          Section 6.10. FORMS. Each Tax Indemnitee agrees to furnish from time
to time to Lessee or to such other person as Lessee may designate, at Lessee's
request, such duly executed and properly completed forms as may be necessary or
appropriate in order to claim any reduction of or exemption from any withholding
or other Tax imposed by any taxing authority, if (x) such reduction or exemption
is available to such Tax Indemnitee, (y) Lessee has provided such Tax Indemnitee
with any information necessary to complete such form not otherwise reasonably
available to such Tax Indemnitee, and (z) with respect to Owner Participant, the
Owner Participant has determined in good faith that furnishing such form could
not have a material adverse impact on the Owner Participant or an Affiliate
thereof.

          Section 6.11. VERIFICATION. At the Lessee's request, the accuracy of
any calculation of amount(s) payable pursuant to this Article 6 shall be
verified by independent public accountants selected by the applicable Tax
Indemnitee and reasonably satisfactory to the Lessee, and such verification
shall bind the applicable Tax Indemnitee and the Lessee. In order, and to the
extent necessary, to enable such independent accountants to verify such amounts,
such Tax Indemnitee shall provide to such independent accountants (for their
confidential use and not to be disclosed to the Lessee or any other person) all
information reasonably necessary for such verification. Verification shall be at
the expense of the Lessee, unless such verification results in an adjustment in
the Lessee's favor of $10,000 or more of the amount of the payment as computed
by such Tax Indemnitee, in which case the verification shall be at the expense
of the Tax Indemnitee.

          Section 6.12. NON-PARTIES. If a Tax Indemnitee is not a party to this
Agreement, Lessee may require the Tax Indemnitee to agree in writing, in a form
reasonably acceptable to Lessee, to the terms of this Article 6 prior to making
any payment to such Tax Indemnitee hereunder.

                                   ARTICLE 7.
                                GENERAL INDEMNITY

          Section 7.01. GENERALLY.

          (a) INDEMNITY. The Lessee agrees to indemnify each Indemnitee against
and agrees to protect, defend, save and keep harmless each Indemnitee from and
against and in respect of, and will pay on an After Tax Basis, any and all
liabilities, obligations, losses, damages, settlements, penalties, claims,
actions, suits, costs, disbursements and expenses,

                                       35
<Page>

demands or judgments (including reasonable legal fees and expenses) of every
kind and nature, whether or not any of the transactions contemplated by this
Agreement are consummated and whether arising before, on or after the Delivery
Date (individually, an "Expense," collectively, "Expenses"), which may be
imposed on, incurred or suffered by or asserted against any Indemnitee, in any
way relating to, arising out of or in connection with, any one or more of the
following:

               (i) any Operative Agreement, Sublease or any transaction
     contemplated thereby;

               (ii) the operation, possession, use, non-use, maintenance,
     storage, overhaul, delivery, non-delivery, control, condition, alteration,
     modification, addition, improvement, airworthiness, replacement,
     substitution, return, abandonment, redelivery or other disposition, repair
     or testing of the Aircraft, Airframe, or any Engine or any engine used in
     connection with the Airframe, or any Part thereof by the Lessee, any
     sublessee or any other Person whatsoever, whether or not such operation,
     possession, use, non-use, maintenance, storage, overhaul, delivery,
     non-delivery, control, condition, alteration, modification, addition,
     improvement, airworthiness, replacement, substitution, return, abandonment,
     redelivery or other disposition, repair or testing is in compliance with
     the terms of the Lease, including, without limitation, claims for death,
     personal injury or property damage or other loss or harm to any Person
     whatsoever, including, without limitation, any passengers, shippers or
     other Persons wherever located, claims or penalty relating to any laws,
     rules or regulations, including, without limitation, environmental control,
     noise and pollution laws, rules or regulation and any Liens in respect of
     the Aircraft, any Engine or any Part;

               (iii) the manufacture, design, sale, return, purchase,
     acceptance, nonacceptance, rejection, delivery, non-delivery, condition,
     repair, modification, servicing, rebuilding, airworthiness, registration,
     reregistration, deregistration, ownership, financing, import, export,
     performance, non-performance, lease, sublease, transfer, merchantability,
     fitness for use, alteration, substitution or replacement of any Airframe,
     Engine, or Part or other transfer of use or possession, or other
     disposition of the Aircraft, the Airframe, any Engine or any Part
     including, without limitation, latent and other defects, whether or not
     discoverable, tort liability, whether or not arising out of the negligence
     of any Indemnitee (whether active, passive or imputed and including strict
     liability without fault), and any claims for patent, trademark or copyright
     infringement;

               (iv) any breach of or failure to perform or observe, or any other
     non-compliance with, any condition, covenant or agreement to be performed,
     or other obligations of the Lessee under any of the Operative Agreements,
     or the falsity or inaccuracy of any representation or warranty of the
     Lessee in any of the Operative Agreements (other than representations and
     warranties in the Tax Indemnity Agreement) or the occurrence of any Default
     or Event of Default;

               (v) the enforcement of the terms of the Operative Agreements
     (including this Section 7.01(a));

                                       36
<Page>

               (vi) any interest in the Lessor's Estate or the Trust Agreement
     or any similar interest; and

               (vii) in the case of the Owner Participant, any "prohibited
     transaction," within the meaning of Section 406 of ERISA or
     Section 4975(c)(1) of the Code, arising out of or in connection with the
     acquisition or holding of the Owner Participant's interest in the Trust
     Estate.

          (b) EXCEPTIONS. The indemnity provided for in Section 7.01(a) shall
not extend to any Expense of any Indemnitee to the extent it:

               (i) is attributable to the willful misconduct or gross negligence
     of such Indemnitee (other than gross negligence or willful misconduct
     imputed to such person by reason of its interest in the Aircraft or any
     transaction documents);

               (ii) except to the extent fairly attributable to acts or events
     occurring prior thereto, is attributable to acts or events (other than the
     performance by Lessee of its obligations pursuant to the terms of the
     Operative Agreements) which occur after the Aircraft is no longer part of
     the Lessor's Estate or, if the Aircraft remains a part of the Lessor's
     Estate, after the expiration of the Term (unless the Aircraft is being
     returned at such time, in which case after return of physical possession;
     PROVIDED that if the Lease has been terminated pursuant to Section 17
     thereof, the indemnity provided in Section 7.01(a) hereof shall survive for
     so long as Lessor shall be exercising remedies under such Section 17), or
     to acts or events which occur after return of possession of the Aircraft by
     the Lessee in accordance with the provisions of the Lease (subject to the
     foregoing proviso if the Lessor has terminated the Lease pursuant to
     Section 17 of the Lease); PROVIDED that nothing in this clause (ii) shall
     be deemed to exclude or limit any claim that any Indemnitee may have under
     Applicable Law by reason of an Event of Default or for damages from Lessee
     for breach of Lessee's covenants contained in the Lessee Documents or to
     release Lessee from any of its obligations under the Lessee Documents that
     expressly provide for performance after termination of the Term;

               (iii) other than as expressly provided herein or in the other
     Operative Agreements, is a Tax or loss of a Tax benefit, whether or not the
     Lessee is required to indemnify therefor pursuant to Article 6 hereof or
     pursuant to the Tax Indemnity Agreement;

               (iv) is a cost or expense expressly required to be paid by such
     Indemnitee or its permitted transferees (and not by the Lessee) pursuant to
     this Agreement or any other Operative Agreement and for which the Lessee is
     not otherwise obligated to reimburse such Indemnitee, directly or
     indirectly pursuant to the terms of this Agreement or such other Operative
     Agreement;

               (v) is attributable to the incorrectness or breach by such
     Indemnitee of its representations or warranties, under any of the Operative
     Agreements except to the extent such incorrectness or breach was caused by
     a breach by Lessee of any

                                       37
<Page>

     representation or warranty or by any failure of Lessee to perform any
     obligation under an Operative Agreement;

               (vi) is attributable to the failure by such Indemnitee to perform
     any of its obligations under any of the Operative Agreements except to the
     extent such failure was caused by a breach by Lessee of any representation
     or warranty or by any failure of Lessee to perform any obligation under an
     Operative Agreement;

               (vii) is, in the case of the Owner Participant, Lessor's Liens
     attributable to the Owner Participant; in the case of the Owner Trustee,
     Lessor's Liens to the extent attributable to the Owner Trustee; in the case
     of Trust Company, Lessor's Liens to the extent attributable to Trust
     Company;

               (viii) is, in the case of the Owner Participant or the Owner
     Trustee, attributable to the offer or sale by such Indemnitee of any
     interest in the Aircraft, the Lessor's Estate or the Trust Agreement or any
     similar interest (including an offer or sale resulting from bankruptcy or
     other proceedings for the relief of debtors in which such Indemnitee is the
     debtor), unless in each case such offer or sale shall occur pursuant to the
     exercise of remedies under Section 17 of the Lease;

               (ix) in the case of the Owner Participant, is an Expense relating
     to, resulting from, arising out of or in connection with a "prohibited
     transaction" within the meaning of Section 406 of ERISA or
     Section 4975(c)(1) of the Code resulting from the direct or indirect use of
     assets of any ERISA Plan to acquire or hold Owner Participant's interest in
     the Trust Estate or in the case of any transferee of the Owner Participant
     referred to in Section 5.01(c), to purchase the Beneficial Interest
     pursuant to Section 5.01(c);

               (x) except during the continuation of an Event of Default, is
     attributable to any amendment to any of the Operative Agreements which is
     not requested, or consented to, by the Lessee or is not required or made
     pursuant to the terms of any of the Operative Agreements;

               (xi) is attributable to the exercise by any Indemnitee of any
     right to inspect the Aircraft except with respect to any such inspection
     conducted while an Event of Default is continuing; and

               (xii) constitutes the loss of future profits of such Indemnitee
     or losses attributable to such Indemnitee's overhead.

          Section 7.02. NOTICE AND PAYMENT. Each Indemnitee shall give prompt
written notice to the Lessee of any liability as to which an officer of such
Indemnitee has actual knowledge, for which the Lessee is, or may be, liable
under this Article 7; PROVIDED, HOWEVER, that failure to give such notice shall
not terminate any of the rights of an Indemnitee under this Article 7 and shall
not release Lessee from any of its obligations to indemnify such Indemnitee
hereunder, except to the extent that such failure adversely affects any
applicable defense or counterclaim, otherwise increases the amount the Lessee
would have been liable for in the

                                       38
<Page>

absence of such failure to provide such notice or adversely affects the ability
of Lessee's insurers to defend such claim.

          Section 7.03. DEFENSE OF CLAIMS. The Lessee or its insurers shall have
the right (in each such case at the Lessee's sole expense) to investigate,
defend (and control the defense of) any such claim for which indemnification is
sought pursuant to this Article 7 (so long as Lessee has agreed in writing
reasonably acceptable to the relevant Indemnitee that Lessee is liable to such
Indemnitee for any Expenses relating to or arising out of the claim for which
indemnification is sought, provided that Lessee will not be so liable to the
extent that it is reasonably determined that one or more of the exclusions
contained in Section 7.01(b) would be applicable to such claim) and each
Indemnitee shall cooperate with the Lessee or its insurers with respect thereto,
PROVIDED THAT, without limiting the right of the Lessee's insurers to assume and
control the defense of or to compromise, any such claim, the Lessee shall not be
entitled to assume and control the defense of or compromise any such claim (A)
during the continuance of any Event of Default arising under Sections 16(a),
(b), (f), (g) or (h) of the Lease, (B) if an actual or potential material
conflict of interest exists making it advisable in the good faith opinion of
such Indemnitee (on the basis of prevailing standards of professional
responsibility) for such Indemnitee to be represented by separate counsel or if
such proceeding involves the potential imposition of criminal liability on such
Indemnitee or (C) if such proceeding will involve any non-de minimis risk of the
sale, forfeiture or loss of, or the creation of any Lien (other than Permitted
Liens) on the Aircraft or the Trust Estate (unless the Lessee posts a bond or
other security reasonably acceptable in form and substance to such Indemnitee)
or involve any risk of criminal liability to such Indemnitee. Subject to the
immediately foregoing sentence, where the Lessee or the insurers under a policy
of insurance maintained by the Lessee undertake the defense of an Indemnitee
with respect to such a claim, no additional legal fees or expenses of such
Indemnitee in connection with the defense of such claim shall be indemnified
hereunder unless the fees or expenses were incurred at the written request of
the Lessee or such insurers. Subject to the requirement of any policy of
insurance applicable to a claim, an Indemnitee may participate at its own
expense at any judicial proceeding controlled by the Lessee or its insurers
pursuant to the preceding provisions, to the extent that such party's
participation does not, in the reasonable opinion of the independent counsel
appointed by the Lessee or its insurers to conduct such proceedings, interfere
with the defense of such claim (it being agreed that the making of copies,
giving notice of proceedings and the like shall not be considered interference);
and such participation shall not constitute a waiver of the indemnification
provided in this Section 7.03. No Indemnitee shall enter into any settlement or
other compromise with respect to any claim described in this Section 7.03 (other
than any claim involving potential criminal liability) without the prior written
consent of the Lessee, unless such Indemnitee waives its right to be indemnified
under this Article 7 with respect to such claim or unless an Event of Default
under Section 16(a), 16(f), 16(g) or 16(h) of the Lease is continuing. The
Lessee shall not enter into any settlement or compromise with respect to which
the Lessee has not agreed to indemnify such Indemnitee to such Indemnitee's
satisfaction or which admits any criminal violation, gross negligence or willful
misconduct on the part of any Indemnitee without the prior written consent of
such Indemnitee.

          Section 7.04. INSURED CLAIMS. Notwithstanding any other provision of
this Article 7 to the contrary, in the case of any claim indemnified by the
Lessee hereunder which is covered by a policy of insurance maintained by the
Lessee pursuant to Section 9 of the Lease or

                                       39
<Page>

otherwise, it shall be a condition of such indemnity with respect to any
particular Indemnitee that such Indemnitee shall cooperate with the insurers in
the exercise of their rights to investigate, defend or compromise such claim as
may be required to retain the benefits of such insurance with respect to such
claim.

          Section 7.05. SUBROGATION. To the extent that an Expense indemnified
by the Lessee under this Article 7 is in fact paid in full by the Lessee and/or
an insurer under a policy of insurance maintained by the Lessee, the Lessee
and/or such insurer as the case may be shall be subrogated to the extent of such
payment to the rights and remedies of the Indemnitee on whose behalf such
Expense was paid with respect to the transaction or event giving rise to such
Expense (other than the rights and remedies in respect of insurance policies
maintained by such Indemnitee and other than the rights of the Trust Company or
the Owner Trustee and remedies against the Owner Participant under the Trust
Agreement). Should an Indemnitee receive any refund, in whole or in part, with
respect to any Expense paid in full by the Lessee hereunder, it shall promptly
pay over the amount refunded (but not an amount in excess of the amount Lessee
and/or such insurer has paid to such Indemnitee in respect of such Expense) to
the Lessee unless a Specified Default or an Event of Default shall have occurred
and be continuing (or would have occurred and be continuing if the Owner
Participant had given the notice specified in Section 16(a) of the Lease), in
which case, provided that Lessee shall have paid such Indemnitee all amounts
required under this Article 7 or under any other Operative Agreement, such
amounts shall be paid over to Owner Trustee to hold as security for Lessee's
obligations under the Lessee Documents or, if requested by Lessee, applied to
satisfy such obligations.

          Section 7.06. INFORMATION. Subject to Section 7.04, Lessee will
provide the relevant Indemnitee with such information, not within the control of
such Indemnitee, as is in Lessee's control or is reasonably available to Lessee,
which such Indemnitee may reasonably request, and will otherwise cooperate with
such Indemnitee, so as to enable such Indemnitee to fulfill its obligations
under Section 7.03 and to control or participate in any proceeding to the extent
permitted by Section 7.03. The Indemnitee shall supply Lessee with such
information, not within the control of Lessee, as is in such Indemnitee's
control or is reasonably available to such Indemnitee, which Lessee may
reasonably request to control or participate in any proceeding to the extent
permitted by Section 7.03.

          Section 7.07. SURVIVAL OF OBLIGATIONS. The indemnities and agreements
of the Lessee provided for in this Article 7 shall survive the expiration or
other termination of this Agreement.

          Section 7.08. EFFECT OF OTHER INDEMNITIES. The Lessee's obligations
under this Article 7 shall be those of a primary obligor whether or not the
Person indemnified shall also be indemnified with respect to the same matter
under the terms of this Agreement, or any other document or instrument, and the
Person seeking indemnification from the Lessee pursuant to any provision of this
Agreement may proceed directly against the Lessee without first seeking to
enforce any other right of indemnification.

          Section 7.09. WAIVER OF CERTAIN CLAIMS. The Lessee hereby waives and
releases any Expense now or hereafter existing against any Indemnitee arising
out of death or personal injury to personnel of the Lessee, loss or damage to
property of the Lessee, or the loss of use of

                                       40
<Page>

any property of the Lessee, which results from or arises out of the condition,
use or operation of the Aircraft during the Term, including, without limitation,
any latent or patent defect whether or not discoverable.

          Section 7.10. CERTAIN LIMITATIONS. The Lessee does not guarantee and
nothing in the general indemnification provisions of this Article 7 shall be
construed as a guarantee (or an indemnification) by the Lessee with respect to
the residual value of the Aircraft or any part thereof.

                                   ARTICLE 8.
                                TRANSACTION COSTS

          Section 8.01. TRANSACTION COSTS AND OTHER COSTS.

          (a) TRANSACTION COSTS. If the transactions contemplated by this
Agreement to occur on the Delivery Date are consummated, the Owner
Participant shall pay (or reimburse the Lessee if the Lessee shall have
previously made such payment) all fees and expenses of the following persons
relating to the transactions contemplated hereby up to an aggregate maximum
amount of [*] following receipt by the Owner Participant of appropriate
invoices with respect thereto: (i) the reasonable fees and expenses of
counsel for Owner Participant; (ii) the reasonable fees and expenses of the
respective counsel for the Lessee, the Owner Trustee, the Manufacturer, the
Engine Manufacturer and the Seller; (iii) the reasonable fees and expenses of
special aviation counsel; (iv) the initial fees and expenses of the Owner
Trustee; (v) the fees and expenses of Seabury Securities, LLC (the "Lessee
Advisor"); (vi) any amounts paid in connection with any appraisal report
prepared for the Owner Participant; and (vii) any other amounts approved by
the Lessee and the Owner Participant. The fees and expenses described in
clauses (ii) through (v) of this paragraph shall be allocable to the Owner
Participant under this Agreement in such manner as is agreed to by the Owner
Participant and the Lessee.

          (b) CONTINUING EXPENSES. The Lessee agrees to pay, as Supplemental
Rent, the continuing fees, expenses and disbursements (including reasonable
counsel fees and expenses) of Trust Company and the Owner Trustee, with respect
to the administration of the Lease and the Lessor's Estate.

          (c) AMENDMENTS AND SUPPLEMENTS. Without limitation of the foregoing,
the Lessee agrees to pay, as Supplemental Rent, to the Owner Trustee and the
Owner Participant all costs and expenses (including reasonable legal fees and
expenses) incurred by any of them in connection with any amendment, supplement,
waiver or consent (whether or not entered into) under this Agreement or any
other Operative Agreement or document or instrument delivered pursuant to any of
them, which amendment, supplement, waiver or consent is required by any
provision of any Operative Agreement (including any adjustment pursuant to
Section 3(d) of the Lease) or is requested by the Lessee or necessitated by the
action or inaction of the Lessee; PROVIDED, HOWEVER, that the Lessee shall not
be responsible for fees or expenses incurred in connection with the offer, sale
or other transfer (whether pursuant to Section 5.01(c) hereof or otherwise) by
the Owner Participant or the Owner Trustee of any interest in the Aircraft, the
Lessor's Estate, the Beneficial Interest or the Trust Agreement or any similar
interest (and the

-----------
* Confidential
                                       41
<Page>

offeror, seller, or transferor shall be responsible for all such fees and
expenses), unless such offer, sale or transfer shall occur (A) pursuant to the
exercise of remedies under Section 17 of the Lease, or (B) in connection with
the termination of the Lease or action or direction of the Lessee pursuant to
Section 8, 13 or 14 of the Lease.

                                   ARTICLE 9.
                             SUCCESSOR OWNER TRUSTEE

          Section 9.01. APPOINTMENT OF SUCCESSOR OWNER TRUSTEE.

          (a) RESIGNATION AND REMOVAL. The Owner Trustee or any successor Owner
Trustee may resign or may be removed (with the consent of the Lessee) by the
Owner Participant, and a successor Owner Trustee may be appointed and a Person
may become Owner Trustee under the Trust Agreement only in accordance with the
provisions of Section 8.01 of the Trust Agreement and the provisions of
paragraphs (b) and (c) of this Section 9.01.

          (b) CONDITIONS TO APPOINTMENT. The appointment in any manner of a
successor Owner Trustee pursuant to Section 8.01 of the Trust Agreement shall be
subject to the following conditions:

               (i) such successor Owner Trustee shall be a Citizen of the United
     States;

               (ii) such successor Owner Trustee shall be a bank or a trust
     company having combined capital, surplus and undivided profits of at least
     $100,000,000 or a bank or trust company fully guaranteed by a direct or
     indirect parent thereof having a combined capital, surplus and undivided
     profits of at least $100,000,000;

               (iii) such appointment shall not violate any provisions of the
     Transportation Code or any applicable rule or regulation of the applicable
     regulatory agency or body of any other jurisdiction in which the Aircraft
     may then be registered or create a relationship which would be in violation
     of the Transportation Code or any applicable rule or regulation of the
     applicable regulatory agency or body of any other jurisdiction in which the
     Aircraft may then be registered;

               (iv) such successor Owner Trustee shall enter into an agreement
     or agreements, in form and substance reasonably satisfactory to the Lessee
     and the Owner Participant whereby such successor Owner Trustee confirms
     that it shall be deemed a party to this Agreement and each other Operative
     Agreement to which the Owner Trustee is a party and agrees to be bound by
     all the terms of such documents applicable to the Owner Trustee and makes
     the representations and warranties contained in Section 5.03 hereof (except
     that it may be duly incorporated, validly existing and in good standing
     under the laws of the United States of America or any State thereof); and

               (v) all filings of Uniform Commercial Code financing and
     continuation statements, filings in accordance with the Transportation Code
     and amendments thereto shall be made and all further actions taken in
     connection with such

                                       42
<Page>

     appointment as may be necessary in connection with maintaining the valid
     and continued registration of the Aircraft in accordance with the
     Transportation Code.

                                  ARTICLE 10.
                      LIABILITIES OF THE OWNER PARTICIPANT

          Section 10.01. LIABILITIES OF THE OWNER PARTICIPANT. The Owner
Participant shall not have any obligation or duty to the Lessee with respect to
the transactions contemplated by this Agreement, except those obligations or
duties expressly set forth in this Agreement or (to the Lessee only) the Tax
Indemnity Agreement or in any other Operative Agreement to which the Owner
Participant is a party and the Owner Participant shall not be liable for the
performance by any other party hereto of such other party's obligations or
duties hereunder.

                                  ARTICLE 11.
                                 OTHER DOCUMENTS

          Section 11.01. CONSENT OF LESSEE TO OTHER DOCUMENTS. The Lessee hereby
consents in all respects to the execution and delivery of the Trust Agreement.

          Section 11.02. CONSENT OF OWNER PARTICIPANT TO OTHER DOCUMENTS. The
Owner Participant hereby consents in all respects to the execution and delivery
of the Lease and hereby agrees to follow the terms of the Lease which are
applicable to it.

                                  ARTICLE 12.
                                     NOTICES

          Section 12.01. NOTICES. Except as otherwise specifically provided
herein, all notices, requests, approvals or consents required or permitted by
the terms hereof shall be in writing (it being understood that the specification
of a writing in certain instances and not in others does not imply an intention
that a writing is not required as to the latter). Any notice shall be effective
when received. Any notice shall either be sent by overnight courier service or
overnight delivery service or by hand, or sent in the form of a telecopy,
PROVIDED that there is receipt of such notice the next Business Day from an
overnight courier service, or by overnight delivery service or delivered by
hand. Any notice shall be directed to the Lessee, the Lessor, the Owner
Participant or any other party hereto to the respective addresses set forth
below or to such other address or telecopy number as any such party may
designate pursuant to this Section 12.01:

          (a) if to the Lessee, to its office at 2500 S. High School Road,
Indianapolis, Indiana 46241, Attention: President; telephone (317) 484-6047,
facsimile (317) 484-6060, with a copy to c/o Wexford Management, LLC, 411 West
Putnam Avenue, Greenwich, Connecticut 06830, Attention: Jay Maymudes and Arthur
Amron, telephone (203) 862-7050 (Jay Maymudes) and (203) 862-7012 (Arthur
Amron), facsimile (203) 862-7350 (Jay Maymudes) and (203) 862-7312 (Arthur
Amron); or to such other address as the Lessee shall from time to time designate
in writing to the Lessor and any Owner Participant;

                                       43
<Page>

          (b) if to the Lessor or the Owner Trustee, to its office at 79 South
Main Street, Salt Lake City, Utah 84111, Attention: Corporate Trust Department,
telephone (801) 246-5630, facsimile (801) 246-5053; or to such other address as
the Lessor shall from time to time designate in writing to the Lessee, with a
copy to the Owner Participant;

          (c) if to the Owner Participant to its office at 201 High Ridge Road,
Stamford, Connecticut 06927-4900, Attention: Contracts Manager, telephone (203)
357-3773 facsimile (203) 357-3201; or to such other address as the Owner
Participant shall from time to time designate in writing to the Lessee and the
Owner Trustee;

                                   ARTICLE 13.
                                  MISCELLANEOUS

          Section 13.01. COUNTERPARTS. This Agreement may be executed by the
parties in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute but
one and the same instrument.

          Section 13.02. NO ORAL MODIFICATIONS. Neither this Agreement nor any
of its terms may be terminated, amended, supplemented, waived or modified
orally, but only by an instrument in writing signed by the party against which
the enforcement of the termination, amendment, supplement, waiver or
modification is sought. No such written termination, amendment, supplement,
waiver or modification shall be effective unless a signed copy shall have been
delivered to and executed by the Owner Trustee. A copy of each such termination,
amendment, supplement, waiver or modification shall also be delivered to each
other party to this Agreement.

          Section 13.03. CAPTIONS.

     The table of contents preceding this Agreement and the headings of the
various Articles and Sections of this Agreement are for convenience of reference
only and shall not modify, define, expand or limit any of the terms or
provisions of this Agreement.

          Section 13.04. SUCCESSORS AND ASSIGNS. The terms of this Agreement
shall be binding upon, and shall inure to the benefit of, the Lessee and its
successors and permitted assigns, the Owner Participant and its successors and
permitted assigns, the Owner Trustee and its successors as Owner Trustee (and
any additional owner trustee appointed) under the Trust Agreement.

          Section 13.05. CONCERNING THE OWNER TRUSTEE. Trust Company is entering
into this Agreement solely in its capacities (except to the extent otherwise
expressly indicated), not in its individual capacity but solely as Owner Trustee
under the Trust Agreement, and except as otherwise expressly provided in this
Agreement or in the Lease or the Trust Agreement, Trust Company shall not be
personally liable for or on account of its statements, representations,
warranties, covenants or obligations under this Agreement; PROVIDED, HOWEVER,
that Trust Company accepts the benefits running to it under this Agreement, and
agrees that (except as otherwise expressly provided in this Agreement or any
other Operative Agreement to which it is a party) it shall be liable in its
individual capacity for (a) its own gross negligence or willful

                                       44
<Page>

misconduct (whether in its capacity as trustee or in its individual capacity),
(b) any breach of representations and warranties or any breach of covenants made
in its individual capacity pursuant to or in connection with this Agreement or
the other Operative Agreements to which it is a party, (c) the failure to use
ordinary care in receiving, handling and disbursing funds, (d) Lessor's Liens
attributable to it in its individual capacity, and (e) taxes, fees or other
charges on, or based on, or measured by, any fees, commissions or compensation
received by it in connection with the transactions contemplated by the Operative
Agreements.

          Section 13.06. SEVERABILITY. 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, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          Section 13.07. GOVERNING LAW. (a) THIS AGREEMENT IS BEING DELIVERED IN
THE STATE OF NEW YORK, AND SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS.

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

          (c) TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO
HEREBY IRREVOCABLY CONSENTS AND AGREES THAT THE SERVICE OF ANY AND ALL LEGAL
PROCESS, SUMMONS, NOTICES AND DOCUMENTS OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH SUIT, ACTION OR PROCEEDING MAY BE MADE BY MAILING COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, AT THE ADDRESS SET FORTH PURSUANT
TO SECTION 12.01. EACH PARTY HERETO AGREES THAT SERVICE UPON IT, OR ANY OF ITS
AGENTS, IN EACH CASE IN ACCORDANCE WITH THIS SECTION 13.07(c), SHALL CONSTITUTE
VALID AND EFFECTIVE PERSONAL SERVICE UPON SUCH PARTY, AND EACH PARTY HERETO
HEREBY AGREES THAT THE FAILURE OF ANY OF ITS AGENTS TO GIVE ANY NOTICE OF SUCH
SERVICE TO ANY SUCH PARTY SHALL NOT IMPAIR OR AFFECT IN ANY WAY THE VALIDITY OF
SUCH SERVICE ON SUCH PARTY OR ANY JUDGMENT RENDERED IN ANY ACTION OR PROCEEDING
BASED THEREON.

          (d) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, AND AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A
DEFENSE, OR OTHERWISE, IN ANY LEGAL ACTION OR

                                       45
<Page>

PROCEEDING BROUGHT HEREUNDER IN ANY OF THE ABOVE-NAMED COURTS, THAT SUCH ACTION
OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT VENUE FOR THE ACTION OR
PROCEEDING IS IMPROPER OR THAT THIS AGREEMENT OR ANY OTHER OPERATIVE AGREEMENT
MAY NOT BE ENFORCED IN OR BY SUCH COURTS.

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

          Section 13.08. SECTION 1110 COMPLIANCE. The parties hereto agree that
the transactions contemplated by the Operative Agreements are expressly intended
to be, shall be, and should be construed so as to be entitled to the benefits
and protection of Section 1110.

          Section 13.09. ASSIGNMENT.

          (a) The Owner Trustee may make a security assignment of or grant a
security interest in some or all of the Lessor's Estate ("Permitted Security
Interest"), as security for the Owner Trustee's obligations in connection with
any financing by the Owner Trustee pursuant to documents reasonably acceptable
to Lessee and otherwise in compliance with this Section 13.09, to a lender
("Lessor's Lender") which (x) shall be a bank, savings institution, finance
company, leasing company, or trust company or national banking association or
other financial institution acting for its own account or in a fiduciary
capacity as trustee or agent for other financial institutions or funds, (y)
shall not be an airline or other aircraft operator or competitor of the Lessee
in the business of air transportation or an Affiliate of any thereof; and (z)
shall not be a party to any material current or overtly threatened litigation or
arbitration (whether as plaintiff or defendant) with the Lessee or any Affiliate
of the Lessee.

          The Owner Trustee will give Lessee at least ten (10) days prior
written notice of a Permitted Security Interest and Lessee agrees to execute and
deliver in connection with any Permitted Security Interest such documents and
assurances (including an acknowledgment of the Permitted Security Interest and a
certificate as to the absence of any Default under the Lease) and to take such
further action as the Owner Trustee may reasonably request in connection with
the Permitted Security Interest. A Lessor's Lender shall be entitled to be an
Indemnitee and an Additional Insured.

          (b) In connection with a Permitted Security Interest of the Lessor's
Estate by the Owner Trustee:

               (i) as a condition precedent to such Permitted Security Interest
     becoming effective, the Owner Trustee will procure that the Lessor's Lender
     shall execute and deliver to Lessee a letter of quiet enjoyment reasonably
     acceptable to Lessee in respect of Lessee's use and possession of the
     Aircraft;

               (ii) the Owner Trustee shall reimburse to Lessee its reasonable
     out-of-pocket expenses (including reasonable legal fees and expenses)
     actually incurred in connection with any such Permitted Security Interest
     referred to in this Section 13.09,

                                       46
<Page>

     provided that such expenses are substantiated to the Owner Trustee's
     reasonable satisfaction; and

               (iii) no such Permitted Security Interest shall impair the rights
     and benefits, or increase the burdens or obligations, of Lessee hereunder
     or under the Lease, including, without limitation, obligations with respect
     to the payment of Rent or under Section 6.01 or 7.01 hereof.

               [The remainder of this page is intentionally left blank.]

                                       47
<Page>

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

                                       CHAUTAUQUA AIRLINES, INC.,
                                       as Lessee

                                       By: /s/ Robert H. Cooper
                                          --------------------------------------
                                          Name:  Robert H. Cooper
                                          Title: Vice President

                                       GENERAL ELECTRIC CAPITAL CORPORATION,
                                       as Owner Participation

                                       By: /s/ Norman Liu
                                          --------------------------------------
                                          Name:  Norman Liu
                                          Title: Vice President

                                       FIRST SECURITY BANK, NATIONAL
                                       ASSOCIATION, not in its individual
                                       capacity, except as otherwise expressly
                                       provided herein but solely as Owner
                                       Trustee

                                       By: /s/ Greg A. Hawley
                                          --------------------------------------
                                          Name:  Greg A. Hawley
                                          Title: Vice President

                                       48

<Page>

                                   APPENDIX A

                              DEFINITIONS [N281SK]

GENERAL PROVISIONS

                  The following terms shall have the following meanings for all
purposes of the Operative Agreements (as defined below), unless otherwise
defined in an Operative Agreement or the context thereof shall otherwise
require. In the case of any conflict between the provisions of this Appendix and
the provisions of any Operative Agreement, the provisions of such Operative
Agreement shall control the construction of such Operative Agreement.

                  Unless the context otherwise requires, (i) references to
agreements shall be deemed to mean such agreements as amended and supplemented
from time to time, and any agreement, instrument or document entered into in
substitution or replacement therefor, and (ii) references to parties to
agreements shall be deemed to include the successors and permitted assigns of
such parties.

         "ADDITIONAL INSUREDS" means the Owner Trustee (in its individual and
trust capacities) and the Owner Participant.

         "AERONAUTICAL AUTHORITY" means as of any time of determination, the FAA
or other governmental airworthiness authority having jurisdiction over the
Aircraft or the Airframe and Engines or engines attached thereto under the laws
of the country in which the Airframe is then registered.

         "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling 50% or more of any class of voting securities
of such Person or otherwise 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.

         "AFTER TAX BASIS" means a basis such that any payment to be received or
deemed to be received by a Person shall be supplemented by a payment to such
Person so that the sum of such payments, after deduction of all Taxes (taking
into account any related credits or deductions) resulting from the actual or
constructive receipt or accrual of such payments, shall be equal to the payment
to be received.

         "AIRCRAFT" means the Airframe together with the Engines, whether or not
any of the Engines may at the time of determination be installed on the Airframe
or installed on any other airframe or on any other aircraft.

<Page>

         "AIRCRAFT PURCHASE AGREEMENT" means the Aircraft Purchase Agreement
[N281SK] dated as of February 23, 2001, among the Seller, the Owner Trustee and
GECC, as amended and supplemented from time to time.

         "AIRFRAME" means (i) the Embraer model EMB-145LR aircraft (excluding
the Engines and any other engines which may from time to time be installed
thereon, but including any and all Parts which may from time to time be
incorporated in, installed on or attached to such aircraft, and including any
and all such Parts removed therefrom so long as title to such removed Parts
remains vested in the Lessor under the terms of Section 7 of the Lease)
originally delivered and leased under the Lease, identified by national
registration number and manufacturer's serial number in the Lease Supplement
executed and delivered on the Delivery Date, so long as a Replacement Airframe
shall not have been substituted therefor pursuant to Section 8 of the Lease, and
(ii) a Replacement Airframe, so long as another Replacement Airframe shall not
have been substituted therefor pursuant to Section 8 of the Lease.

         "APPRAISAL PROCEDURE" has the meaning specified in Exhibit F-2 to the
Lease.

         "APPLICABLE LAW" means all applicable laws, treaties, judgments,
decrees, injunctions, writs and orders of any court, governmental agency or
authority and rules, regulations, orders, directives, licenses and permits of
any governmental body, instrumentality, agency or authority.

         "APPLICABLE RATE" has the meaning specified in Exhibit B to the Lease.

         "ASSIGNED WARRANTIES" has the meaning specified in the Embraer Warranty
Assignment and Consent.

         "BANKRUPTCY CODE" means Title 11 of the United States Code, as amended,
and any successor thereto.

         "BASIC RENT" means the rent payable on Basic Rent Payment Dates
throughout the Basic Term for the Aircraft pursuant to Section 3(b) of the Lease
and rent payable during any Renewal Term pursuant to Section 13(a) of the Lease.

         "BASIC RENT PAYMENT DATE" means each date listed under the heading
"Basic Rent Payment Date" in Exhibit C to the Lease.

         "BASIC TERM" means the period commencing at the beginning of the day on
the Delivery Date and ending at end of the day on the Expiration Date, or such
earlier date on which the Lease shall be terminated as provided therein.

         "BENEFICIAL INTEREST" means the interest of the Owner Participant under
the Trust Agreement.

         "BILLS OF SALE" means the FAA Bill of Sale and the Warranty Bill of
Sale.

         "BUSINESS DAY" means any day other than a Saturday or Sunday or other
day on which commercial banks are authorized or required by law to close in New
York City, New York, Indianapolis, Indiana and Salt Lake City, Utah.

                                       2
<Page>

         "CERTIFICATED AIR CARRIER" means an "air carrier" within the meaning of
the Transportation Code and a "citizen of the United States" within the meaning
of Section 40102(a)(15) (or any successor provision) of the Transportation Code
holding an "air carrier operating certificate" issued under Chapter 447 (or any
successor provision) of the Transportation Code for aircraft capable of carrying
ten or more individuals or 6,000 pounds or more of cargo, with each such
certificate in full force and effect.

         "CITIZEN OF THE UNITED STATES" means a citizen of the United States as
defined in Section 40102(a)(15) of the Transportation Code, or any analogous
part of any successor or substituted legislation or regulation at the time in
effect.

         "CODE" means the United States Federal Internal Revenue Code of 1986,
as amended from time to time, or any similar legislation of the United States
enacted to supersede, amend, or supplement such Code (and any reference to a
provision of the Code shall refer to any successor provision(s), however
designated).

         "COMMITMENT" shall have the meaning given such term in Section 2.01(c)
of the Participation Agreement.

         "CRAF PROGRAM" has the meaning specified in Section 5(b)(vii) of the
Lease.

         "DEFAULT" means any event or condition which, with the lapse of time or
the giving of notice, or both, would constitute an Event of Default.

         "DELIVERY DATE" means the date on which the Aircraft is delivered and
sold to the Lessor and leased by the Lessor to the Lessee under the Lease, which
date shall be the date of the initial Lease Supplement.

         "DOLLARS", "DOLLAR" and "$" means dollars in lawful currency of the
United States.

         "DOT" means the United States Department of Transportation or any
successor thereto.

         "EBO DATE" has the meaning given to such term in Exhibit B to the
Lease.

         "EBO AMOUNT" has the meaning given to such term in Exhibit B to the
Lease.

         "EMBRAER PURCHASE AGREEMENT" means the EMB-145 Purchase Agreement
Number GCT-025/98 dated June 17, 1998, between the Manufacturer and Seller, as
amended and supplemented from time to time.

         "EMBRAER WARRANTY ASSIGNMENT AND CONSENT" means the Warranty Assignment
Agreement and Consent [N281SK], dated as of February 23, 2001, between Seller
and Owner Trustee and consented to by the Manufacturer.

         "ENGINE" means (A) each of the two Allison model AE3007A1P engines
originally delivered and leased under the Lease, identified by manufacturer's
serial number in the Lease Supplement executed and delivered on the Delivery
Date, so long as a Replacement Engine shall not have been substituted therefor
pursuant to Section 7(e) of the Lease, and (B) a Replacement

                                       3
<Page>

Engine, so long as another Replacement Engine shall not have been substituted
therefor pursuant to Section 7(e) of the Lease, whether or not such engine or
Replacement Engine, as the case may be, is from time to time installed on the
Airframe or installed on any other aircraft, and including in each case all
Parts incorporated or installed in or attached thereto and any and all Parts
removed therefrom so long as title to such Parts remains vested in the Lessor
under the terms of Section 7 of the Lease. The term "ENGINES" means, as of any
date of determination, the two engines each of which is an Engine on that date.

         "ENGINE MANUFACTURER" means Allison Engine Company, Inc. a subsidiary
of the Rolls-Royce Corporation, and its successors and permitted assigns.

         "ENGINE WARRANTIES" has the meaning specified in the Engine Warranty
Assignment and Consent.

         "ENGINE WARRANTY AGREEMENT" means the Rolls-Royce AE3007A Series Engine
Warranty Agreement made effective as of April 30, 1999, among the Engine
Manufacturer, Seller and the Lessee, as amended and supplemented from time to
time.

         "ENGINE WARRANTY ASSIGNMENT AND CONSENT" means the Engine Warranty
Assignment Agreement and Consent [N281SK], dated as of February 23, 2001,
between Seller and Owner Trustee and consented to by the Engine Manufacturer.

         "ERISA" means the Employee Retirement Income Security Act of 1974 and
any regulations and rulings issued thereunder all as amended and in effect from
time to time.

         "ERISA PLAN" means, individually or collectively, an employee benefit
plan, as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA
or any applicable regulation thereunder or a plan or individual retirement
account which is subject to Section 4975(c) of the Code;

         "EVENT OF DEFAULT" has the meaning given to such term in Section 16 of
the Lease.

         "EVENT OF LOSS" means any of the following events with respect to the
Aircraft, the Airframe or any Engine:

                  (i) any theft, hijacking or disappearance of such property for
         a period of 60 consecutive days or more or, if earlier for a period
         that extends until the end of the Term;

                  (ii) destruction, damage beyond economic repair or rendition
         of such property permanently unfit for normal use for any reason
         whatsoever;

                  (iii) any event which results in an insurance settlement with
         respect to such property on the basis of an actual, constructive or
         compromised total loss;

                  (iv) condemnation, confiscation or seizure of, or requisition
         of title to or use of such property by any foreign government or
         purported government (or in the case of any such requisition of title,
         by the Government) or any agency or instrumentality thereof, for a
         period in excess of (A) in the case of any requisition of use, 180
         consecutive days (for

                                       4
<Page>

         countries listed in Exhibit E to the Lease) or 30 consecutive days (for
         any other country) or (B) in the case of any condemnation, confiscation
         or seizure of, or requisition of title, 10 consecutive days, or, in any
         of the cases in this clause (iv), such shorter period ending on the
         expiration of the Term;

                  (v) condemnation, confiscation or seizure of, or requisition
         of use of such property by the Government for a period extending beyond
         the Term;

                  (vi) as a result of any law, rule, regulation, order or other
         action by the Aeronautical Authority, the use of the Aircraft or
         Airframe in the normal course of air transportation shall have been
         prohibited by virtue of a condition affecting all Embraer model
         EMB-145LR aircraft equipped with engines of the same make and model as
         the Engines for a period of 180 consecutive days (or beyond the end of
         the Term), unless the Lessee, prior to the expiration of such 180-day
         period, shall be diligently carrying forward all necessary and
         desirable steps to permit normal use of the Aircraft and shall within
         12 months have conformed at least one Embraer model EMB-145LR aircraft
         (but not necessarily the Aircraft) to the requirements of any such law,
         rule, regulation, order or action, and shall be diligently pursuing
         conformance of the Aircraft in a non-discriminatory manner provided
         that, notwithstanding the foregoing, if such normal use of such
         property subject to the Lease shall be prohibited at the end of the
         Term, or if such normal use of such property shall be prohibited for a
         period of eighteen (18) consecutive months, an Event of Loss shall be
         deemed to have occurred; and

                  (vii) with respect to an Engine only, the requisition or
         taking of use thereof by any government, and any divestiture of title
         or ownership deemed to be an Event of Loss with respect to an Engine
         under Section 5(b)(iii) or 5(b)(vi) of the Lease.

The date of such Event of Loss shall be (aa) the 31st day following loss of such
property or its use due to theft or disappearance or the 91st day following such
loss if such period shall have been extended (or the end of the Term if
earlier); (bb) the date of any destruction, damage beyond economic repair or
rendition of such property permanently unfit for normal use; (cc) the date of
any insurance settlement on the basis of an actual, constructive or compromised
total loss; (dd) the 181st day (for countries listed in Exhibit E to the Lease)
or 31st day (for any other country) following condemnation, confiscation,
seizure or requisition of title to such property by a foreign government
referred to in clause (iv) above (or the 11th day in the case of appropriation
of title), or the end of the Term if earlier than such 181st, 31st or 11th day;
(ee) the last day of the Term in the case of requisition of title to or use of
such property by the Government; and (ff) the last day of the applicable period
referred to in clause (vi) above (or if earlier, the end of the Term without the
Lessee's having conformed at least one Embraer model EMB-145LR aircraft to the
applicable requirements). An Event of Loss with respect to the Aircraft shall be
deemed to have occurred if any Event of Loss occurs with respect to the
Airframe.

         "EXPENSES" has the meaning given to such term in Section 7.01(a) of the
Participation Agreement.

         "EXPIRATION DATE" means the date specified as such in the Lease
Supplement executed and delivered on the Delivery Date.

                                       5
<Page>

         "FAA BILL OF SALE" means (A) the bill of sale for the Airframe on AC
Form 8050-2, or such other form as may be approved by the Aeronautical
Authority, executed by the Seller in favor of the Owner Trustee and to be dated
the Delivery Date, and (B) a bill of sale for a Replacement Airframe on AC Form
8050-2, or such other form as may be approved by the Aeronautical Authority,
executed by the seller thereof in favor of the Owner Trustee.

         "FAIR MARKET RENTAL VALUE" or "FAIR MARKET SALES VALUE" of the Airframe
or any Engine shall mean the value that would be obtained in an arms'-length
transaction between an informed and willing lessee-user or buyer-user (other
than a lessee currently in possession or a used equipment dealer) under no
compulsion to lease or buy, as the case may be, and an informed and willing
lessor or seller, as the case may be, under no compulsion to lease or sell, as
the same shall be specified by agreement between the Lessor and the Lessee or,
if not agreed to by the Lessor and the Lessee within a period of 15 days after
either party requests a determination, then as specified in an appraisal
prepared and delivered in New York City mutually agreed to by two recognized
independent aircraft appraisers, one of which shall be appointed by the Lessor
and the other of which shall be appointed by the Lessee, or, if such appraisers
cannot agree on such appraisal, an appraisal arrived at by a third independent
recognized appraiser chosen by the mutual consent of the two aircraft
appraisers. If either party should fail to appoint an appraiser within 15 days
of receiving notice of the appointment of an appraiser by the other party, then
such appraisal shall be made by the appraiser appointed by the first party. If
the two appraisers cannot agree on such appraisal and fail to appoint a third
independent recognized aircraft appraiser within 15 days after the appointment
of the second appraiser, then either party may apply to the American Arbitration
Association to make such appointment. The appraisal shall be completed within 30
days of the appointment of the last appraiser appointed. In determining Fair
Market Rental Value or Fair Market Sales Value by appraisal or otherwise, it
will be assumed that the Aircraft, Airframe or Engine is in the condition,
location and overhaul status in which it is required to be returned to the
Lessor pursuant to Section 12 of the Lease and that the Lessee has removed all
Parts which it is entitled to remove pursuant to Section 7 of the Lease and that
the Aircraft is not encumbered by the Lease. Except as otherwise expressly
provided in the Lease, all appraisal costs will be shared equally by the Lessor
and the Lessee; PROVIDED that if the Lessee elects not to renew the Lease or
purchase the Aircraft following the conclusion of such appraisal, the Lessee
shall pay all appraisal costs. Notwithstanding the foregoing, for purposes of
Section 17 of the Lease, the "Fair Market Rental Value" or "Fair Market Sales
Value" of the Aircraft, the Airframe or any Engine, shall be determined on an
"as is, where is" basis and shall take into account customary brokerage and
other out-of-pocket fees and expenses which typically would be incurred in
connection with a re-lease or sale of the Aircraft, the Airframe or any Engine.
Any such determination pursuant to Section 17 of the Lease shall be made by a
recognized independent aircraft appraiser selected by Lessor and the costs and
expenses associated therewith shall be borne by Lessee, unless Lessor does not
obtain possession of the Aircraft, Airframe and Engines pursuant to Section 17
of the Lease, in which case an appraiser shall not be appointed and Fair Market
Rental Value and Fair Market Sales Value for purposes of Section 17 of the Lease
shall be zero. If the Owner Participant provides a Residual Notice pursuant to
Section 13(b)(iii) of the Lease, Fair Market Sales Value will be determined as
provided in the definition of Appraisal Procedure.

         "FAIR MARKET VALUE RENEWAL TERM" has the meaning given to such term in
Section 13(a) of the Lease.

                                       6
<Page>

         "FEDERAL AVIATION ADMINISTRATION" or "FAA" means the United States
Federal Aviation Administration and any successor agency or agencies thereto.

         "FIXED RENEWAL TERM" has the meaning given to such term in Section
13(a) of the Lease.

         "GECC" means General Electric Capital Corporation, a New York
corporation.

         "GOVERNMENT" means the United States of America or an agency or
instrumentality thereof the obligations of which bear the full faith and credit
of the United States of America.

         "GUARANTEE AGREEMENT" has the meaning given to such term in the
recitals of the Participation Agreement.

         "GUARANTEED AMOUNT" has the meaning specified in Exhibit B to the
Lease.

         "INDEMNITEE" means each of Trust Company, in its individual capacity
and as Owner Trustee, the Owner Participant, and each Affiliate, officer,
director, employee, agent, servant, successor and permitted assigns of any of
the foregoing Persons.

         "LEASE" means the Lease Agreement [N281SK], dated as of February 23,
2001 between the Owner Trustee and the Lessee.

         "LEASE SUPPLEMENT" means any Lease Supplement, substantially in the
form of Exhibit A to the Lease, entered into between the Lessor and the Lessee
for the purpose of leasing the Aircraft under and pursuant to the terms of the
Lease, including any amendment thereto entered into subsequent to the Delivery
Date.

         "LESSEE" means Chautauqua Airlines, Inc., a New York corporation, and
its successors and permitted assigns.

         "LESSEE DOCUMENTS" means the Operative Agreements to which the Lessee
is a party.

         "LESSOR" means First Security Bank, National Association, a national
banking association, not in its individual capacity but solely as Owner Trustee
under the Trust Agreement, and its successors and permitted assigns.

         "LESSOR'S COST" has the meaning given to such term in Exhibit B of the
Lease.

         "LESSOR'S ESTATE" means all estate, right, title and interest of the
Owner Trustee in and to the Aircraft, and Engines and the Operative Agreements
(other than the Tax Indemnity Agreement) including, without limitation, all
amounts of Rent, insurance proceeds and requisition, indemnity or other payments
of any kind.

         "LESSOR'S LENDER" has the meaning given to such term in Section 13.09
of the Participation Agreement.

         "LESSOR'S LIENS" means Liens against, on or with respect to the
Aircraft, any Engine, the Lessor's Estate or any part thereof, title thereto or
any interest therein arising as a result of (i)

                                       7
<Page>

claims against or affecting the Lessor, in its individual capacity or as Owner
Trustee, or the Owner Participant, in each case not related to the Operative
Agreements or the transactions contemplated thereby, (ii) acts or omissions of
the Lessor in its individual capacity or as Owner Trustee, or of the Owner
Participant not contemplated or permitted under the terms of the Operative
Agreements, (iii) Taxes or Expenses imposed against the Lessor, in its
individual capacity or as Owner Trustee, Owner Participant, Lessor's Estate or
the trust created by the Trust Agreement which are not required to be
indemnified against by the Lessee pursuant to Articles 6 or 7 of the
Participation Agreement and which are not required to be indemnified against by
the Lessee pursuant to the Tax Indemnity Agreement, or (iv) claims against the
Lessor, in its individual capacity or as Owner Trustee, or the Owner Participant
arising from the transfer by the Lessor or the Owner Participant of its
interests in the Aircraft or any Engine other than a transfer of the Aircraft or
any other portion of the Lessor's Estate pursuant to Section 5(b), 7(b), 7(c),
7(d), 7(e), 8, 12(b), 13(b), 14(a) or 17 of the Lease and other than a transfer
pursuant to the exercise of the remedies set forth in Section 17 of the Lease;
PROVIDED that any Lien that is attributable solely to Owner Participant or
Lessor, in its individual capacity or as Owner Trustee, and would otherwise be
included as part of Lessor's Liens hereunder shall not constitute part of
Lessor's Liens hereunder, so long as (A) the existence of such Lien poses no
material risk of the sale, forfeiture or loss of the Aircraft, Airframe, any
Engine, the Lessor's Estate or any interest of Lessee or any other Person
therein or interference with any of Lessee's rights under any Operative
Agreement, (B) the existence of such Lien does not constitute a default by Owner
Participant or Lessor, in its individual capacity or as Owner Trustee, of its
respective obligations under the Lease, and (C) Owner Participant or Lessor, in
its individual capacity or as Owner Trustee, is diligently contesting such Lien
by appropriate proceedings.

         "LIEN" means any mortgage, pledge, lien, charge, encumbrance, lease,
security interest, claim, or other similar interest of any nature whatsoever.

         "MANUFACTURER" means EMBRAER - Empresa Brasileira de Aeronautica S.A.,
a Brazilian corporation, and its successors and permitted assigns.

         "MATERIAL ADVERSE CHANGE" means, with respect to any Person, any event,
condition or circumstance that materially and adversely affects such Person's
business or consolidated financial condition.

         "MINIMUM LIABILITY AMOUNT" has the meaning given to such term in
Exhibit B to the Lease.

         "NET ECONOMIC RETURN" means the Owner Participant's nominal after-tax
book yield (utilizing the multiple investment sinking fund method of analysis),
computed through the EBO Date and the Expiration Date on the basis of the same
methodology, constraints and assumptions as were utilized by the initial Owner
Participant in determining Basic Rent percentages and Termination Value
percentages as of the Delivery Date; PROVIDED, that, if the initial Owner
Participant shall have transferred its interest, Net Economic Return shall be
calculated as if the initial Owner Participant had retained its interest.

         "NON-U.S. PERSON" means any Person other than a U.S. Person.

                                       8
<Page>

         "OFFICER'S CERTIFICATE" means as to any company a certificate signed by
a Responsible Officer of such company.

         "OPERATIVE AGREEMENTS" means the Participation Agreement, the Trust
Agreement, the FAA Bill of Sale, the Warranty Bill of Sale, the Embraer Warranty
Assignment and Consent, the Engine Warranty Assignment and Consent, the Lease,
each Lease Supplement, any Owner Participant Guaranty and the Tax Indemnity
Agreement.

         "OWNER PARTICIPANT" means General Electric Capital Corporation, a New
York corporation and its successors and permitted transferees and assigns.

         "OWNER PARTICIPANT GUARANTOR" means the provider of an Owner
Participant Guaranty.

         "OWNER PARTICIPANT GUARANTY" means any guaranty delivered or to be
delivered to support the obligations of the Owner Participant under the
Operative Agreements in connection with the transfer by the Owner Participant of
the Beneficial Interest.

         "OWNER TRUSTEE" means the Trust Company, not in its individual capacity
except as otherwise expressly stated, but solely as trustee under the Trust
Agreement, and its successors and permitted assigns.

         "PARTICIPATION AGREEMENT" means the Participation Agreement [N281SK],
dated as of February 23, 2001, among the Lessee, the Owner Trustee not in its
individual capacity except as otherwise expressly provided therein, but solely
as owner trustee and the Owner Participant.

         "PARTS" means any and all appliances, parts, instruments, components,
appurtenances, accessories, furnishings, seats, and other equipment of whatever
nature (other than complete Engines or engines and temporary replacement parts
as provided in Section 8 of the Lease and cargo containers) which may from time
to time be incorporated or installed in or attached to any Airframe or any
Engine, exclusive of any items leased by the Lessee from third parties and not
required in the navigation of the Aircraft.

         "PAST DUE RATE" means a rate per annum identified in Exhibit B to the
Lease.

         "PERMITTED AIR CARRIER" means (a) any Section 1110 Person and (b) any
foreign air carrier that is principally based in any foreign country listed on
Exhibit E to the Lease, except those that do not maintain normal diplomatic
relations with the United States.

         "PERMITTED INVESTMENTS" means (a) direct obligations of the United
States of America or any agency or instrumentality thereof, (b) obligations
fully guaranteed by the United States of America or any agency or
instrumentality thereof, (c) any mutual fund the portfolio of which is limited
to obligations of the type described in clauses (a) and (b), (d) certificates of
deposit issued by, or bankers' acceptances of, or time deposits or a deposit
account with, any bank, trust company, or national banking association
incorporated or doing business under the laws of the United States of America or
one of the states thereof, having a combined capital and surplus of at least
$100,000,000 and having a rating of "A" or better from the Keefe Bank Watch
Service, (e) commercial paper issued by companies in the United States which
directly issue their own commercial paper and which are doing business under the
laws of the United States of America

                                       9
<Page>

or one of the states thereof and in each case having a rating assigned to such
commercial paper by a nationally recognized rating organization in the United
States of America equal to the highest rating assigned by such organization, or
(f) obligations of the type described in clauses (a), (b), (d), or (e) above,
purchased from any bank, trust company, or banking association referred to in
clause (d) above pursuant to repurchase agreements obligating such bank, trust
company, or banking association to repurchase any such obligation not later than
30 days after the purchase of any such obligation. Unless otherwise specified in
writing by the Owner Trustee, all such Permitted Investments shall mature not
later than 30 days from the date of purchase.

         "PERMITTED LIEN" has the meaning given to such term in Section 10 of
the Lease.

         "PERMITTED SECURITY INTEREST" has the meaning given to such term in
Section 13.09 of the Participation Agreement.

         "PERMITTED SUBLESSEE" means (a) any Permitted Air Carrier, (b) any
airframe or engine manufacturer, or Affiliate of such a manufacturer, who is
domiciled in the United States of America or a country listed on Exhibit E to
the Lease or (c) the United States of America or any instrumentality or agency
thereof.

         "PERSON" means any individual, sole proprietorship, partnership, joint
venture, joint stock company, trust, unincorporated organization, association,
corporation, institution, limited liability company or government (federal,
state, local, foreign or any agency, instrumentality, division or body thereof)
or other entity of whatever nature.

         "PURCHASE PRICE" means an amount equal to Lessor's Cost.

         "REASONABLE BASIS" means that a realistic possibility of success,
within the meaning of ABA Formal Opinion No. 85-352, exists for pursuing such
contest.

         "RECOVERY PERIOD" means "Tax Attribute Period" as defined in the Tax
Indemnity Agreement.

         "RELATED LEASE" means the fifteen aircraft lease agreements of Embraer
model EMB-145LR aircraft that have been or shall be entered into in years 2000
and 2001 between the Trust Company as trustee of a trust the beneficiary of
which is GECC or an Affiliate of GECC, as lessor, and the Lessee, as lessee, in
substantially the form of the Lease, each when executed and delivered by such
parties.

         "RELATED TAX INDEMNITEE" means any Affiliate of any Tax Indemnitee.

         "RENEWAL TERM" has the meaning given to such term in Section 13(a) of
the Lease.

         "RENT" means Basic Rent and Supplemental Rent, collectively.

         "REPLACEMENT AIRCRAFT" means any Aircraft of which a Replacement
Airframe is part.

                                       10
<Page>

         "REPLACEMENT AIRFRAME" means an Embraer model EMB-145LR aircraft or a
comparable or improved model of such aircraft of the Manufacturer (except
Engines or engines from time to time installed thereon) which shall have become
subject to the Lease pursuant to Section 8 thereof.

         "REPLACEMENT CLOSING DATE" has the meaning given such term in Section
8(d) of the Lease.

         "REPLACEMENT ENGINE" means an Allison model AE3007A1P engine (or engine
of the same manufacturer of a comparable or an improved model and suitable for
installation and use on the Airframe), which has a value, utility and remaining
useful life at least equal to, and which is in good operating condition as, the
Engine to be replaced thereby (assuming that such Engine being replaced was in
the condition required to be maintained in accordance with the Lease), and which
shall have become subject to the Lease pursuant to Section 7(e) thereof.

         "RESIDUAL VALUE GUARANTEE AGREEMENT" has the meaning given to such term
in the recitals of the Participation Agreement.

         "RESPONSIBLE OFFICER" means, with respect to the Owner Trustee, any
officer in its Corporate Trust Administration, as the case may be, designated by
such Person to perform obligations under the Operative Agreements, and with
respect to any other party, any corporate officer of a party who, in the normal
performance of his or her operational responsibilities, with respect to the
subject matter of any covenant, agreement or obligation of such party pursuant
to any Operative Agreement, would have responsibility for and knowledge of such
matter and the requirements of any Operative Agreement with respect thereto.

         "SEC" means the Securities and Exchange Commission of the United States
and any successor agencies or authorities.

         "SECTION 1110" means 11 U.S.C. Section 1110 or any successor or
analogous section of the federal bankruptcy law in effect from time to time.

         "SECTION 1110 PERSON" means a Citizen of the United States who is an
air carrier holding a valid air carrier operating certificate issued pursuant to
49 U.S.C. ch. 447 for aircraft capable of carrying 10 or more individuals or
6,000 pounds or more of cargo.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SELLER" means Solitair Corp., a Delaware corporation, and its
successors and permitted assigns.

         "SPECIFIED DEFAULT" means (a) an event or condition described in
Section 16(a), (f), (g) or (h) of the Lease that, after the giving of notice or
lapse of time, or both, would become an Event of Default, or (b) any Event of
Default.

         "SUBLEASE" means any sublease agreement between the Lessee and a
Permitted Sublessee as permitted by Section 5(b) of the Lease.

                                       11
<Page>

         "SUPPLEMENTAL RENT" means all amounts, liabilities, indemnities and
obligations which the Lessee assumes or agrees to perform or pay under the Lease
or under the Participation Agreement or Tax Indemnity Agreement or any other
Operative Agreement to the Lessor, the Owner Participant, or others, including
payments of Termination Value, EBO Amount, and amounts calculated by reference
to Termination Value, all other amounts payable under Section 3(c) of the Lease,
and all amounts required to be paid by Lessee under the agreements, covenants,
and indemnities contained in the Lease or in the Participation Agreement or the
Tax Indemnity Agreement or any other Operative Agreement, but excluding Basic
Rent.

         "TAX" or "TAXES" has the meaning set forth in Section 6.01(a) of the
Participation Agreement.

         "TAX INDEMNITEE" means each of Trust Company, individually and as Owner
Trustee, the Owner Participant and any Affiliate thereof.

         "TAX INDEMNITY AGREEMENT" means the Tax Indemnity Agreement [N281SK],
dated as of February 23, 2001 between the Lessee and the Owner Participant.

         "TERM" has the meaning given to such term in Section 3(a) of the Lease.

         "TERMINATION DATE" means each date listed in the column entitled
"Termination Date" in Exhibit D to the Lease or, during a Renewal Term or
otherwise during any period following the last day of the Term, the second day
of each month.

         "TERMINATION VALUE" means (a) as of any Termination Date during the
Basic Term, the amount determined as set forth in Exhibit D to the Lease for
that Termination Date, and (b) during any Renewal Term, the amount for the date
involved, determined in accordance with Section 13(a) of the Lease, in either
case adjusted as required by Section 3(d) of the Lease.

         "TRANSACTION COSTS" means those costs and expenses set forth in Section
8.01(a) of the Participation Agreement.

         "TRANSPORTATION CODE" means Title 49 of the United States Code,
subtitle VII, as amended and in effect on the date of the Lease or as
subsequently amended, or any successor or substituted legislation at the time in
effect and applicable, and the regulations promulgated pursuant thereto.

         "TRUST AGREEMENT" means the Trust Agreement [N281SK], dated as of
February 23, 2001, between the Owner Participant and the Trust Company.

         "TRUST COMPANY" means First Security Bank, National Association, a
national banking association, and its successors and permitted assigns.

         "TRUST ESTATE" means the Lessor's Estate.

         "UNIFORM COMMERCIAL CODE" means the Uniform Commercial Code as in
effect from time to time in any relevant jurisdiction.

                                       12
<Page>

         "UNITED STATES", "U.S." or "US" means the United States of America.

         "U.S. PERSON" means a Person described in Section 7701(a)(30) of the
Code.

         "WARRANTY BILL OF SALE" means (A) the full warranty bill of sale
covering the Aircraft (and specifically referring to each Engine) executed by
the Seller in favor of the Owner Trustee and to be dated the Delivery Date, and
(B) a full warranty bill of sale covering a Replacement Aircraft (and
specifically referring to each Engine) executed by the seller thereof in favor
of the Owner Trustee.

                                       13

<Page>

                                                                  EXHIBIT A-1 TO
                                                     THE PARTICIPATION AGREEMENT

                 [Form of Opinion of General Counsel of Lessee]

                                      _______________, 2000

Aircraft Services Corporation
201 High Ridge Road
Stamford, Connecticut 06927-4900

First Security Bank, National Association
79 South Main Street, Suite 300
Salt Lake City, Utah 84111

                         Re: CHAUTAUQUA AIRLINES, INC.

Ladies and Gentlemen:

     I have acted as counsel for Chautauqua Airlines, Inc., a New York
Corporation (the "Corporation"), in connection with the execution and delivery
by the Corporation of (i) the Participation Agreement [N2__SK] dated as of
__________, 2000 among the Corporation, as Lessee, First Security Bank, National
Association, not in its individual capacity but solely as Owner Trustee (the
"Owner Trustee") and Aircraft Services Corporation, as Owner Participant (the
"Owner Participant"); (ii) the Lease Agreement [N2__SK] dated as of __________,
2000 (the "Lease") between the Owner Trustee, as Lessor ("Lessor") and the
Corporation, as Lessee; (iii) the Lease Supplement No. 1 [N2__SK] dated
__________, 2000 between the Lessor and the Corporation; (iv) the Tax Indemnity
Agreement [N2__SK] dated as of __________, 2000 between the Corporation and the
Owner Participant; (v) the Warranty Assignment Agreement and Consent (N2__SK)
dated as of __________, 2000 among Solitair Corp., the Owner Trustee and the
Corporation and consented to by Rolls-Royce Corporation; and (vi) the Lease
Termination Agreement [N2__SK] dated as of __________, 2000 between Solitair
Corp. and the Corporation (collectively, the "Lessee Documents"). Unless
otherwise defined herein, capitalized terms used herein have the meanings
assigned to them in Appendix A to the Lease.

     In rendering this opinion, I have examined originals or copies, certified
or otherwise identified to my satisfaction, of the Lessee Documents, and have
investigated such questions of law, and have examined such other corporate
records of the Corporation and other documents, and have obtained and relied
(without independent investigation) upon such certificates and assurances from
public officials, as I have deemed necessary as a basis for the purpose of
rendering this opinion.

     For the purpose of rendering this opinion, I have assumed, without any
independent investigation, the capacity of all natural persons, the authenticity
of all documents and instruments submitted to me as originals, and the
conformity to authentic original documents and

                                   EXHIBIT A-1                            PAGE 1
<Page>

instruments of all documents and instruments submitted to me as certified,
conformed photostatic or facsimile copies.

     Based upon and subject to the foregoing, and subject to the qualifications
set forth below, I am of the opinion that:

     1.   The Corporation is duly incorporated, validly existing, and in good
standing under the laws of the State of New York, and has the corporate power
and authority to carry on its business as presently conducted and to perform its
obligations under the Lessee Documents.

     2.   Each of the Lessee Documents has been duly authorized, executed and
delivered by the Corporation.

     3.   The execution and delivery of the Lessee Documents, the consummation
by the Corporation of the transactions contemplated thereby and compliance by
the Corporation with the terms and provisions thereof (i) do not require
stockholder approval, and (ii) do not require any consent or approval, do not
contravene, and will not result in any breach of or constitute any default
under, or result in the creation of any lien, charge or encumbrance upon any
property of the Corporation, under any indenture, mortgage, chattel mortgage,
deed of trust, conditional sales contract, bank loan, credit agreement,
corporate charter, by-law or other agreement or instrument to which the
Corporation is a party or by which the Corporation or its properties or assets
may be bound.

     4.   The Corporation provides interstate transportation of passengers or
property by aircraft as a common carrier for compensation. The Corporation is
the holder of an air carrier operating certificate issued by the Federal
Aviation Administration under Part 121 of the Federal Aviation Regulations and
49 U.S. Code Section 44705 for aircraft capable of carrying ten or more
individuals or 6,000 pounds or more of cargo. The Corporation is an air carrier
that conducts air taxi operations under an exemption issued by the Department of
Transportation under authority of Part 298 of the Federal Aviation Regulations.
The Corporation holds all licenses, certificates and permits from applicable
governmental authorities necessary for the conduct of its business as an air
carrier and the performance of its obligations under the Lessee Documents.

     5.   There are no suits or proceedings, pending or threatened, against the
Corporation before any executive, legislative, judicial, administrative or
regulatory body which, if adversely determined, might, individually or in the
aggregate, have a material adverse effect on the financial condition or business
of the Corporation or its ability to perform its obligations under the Lessee
Documents.

     6.   Neither the Corporation nor any of its properties or assets has the
right of immunity from suit or execution on the grounds of sovereignty.

     7.   The Corporation is organized under the laws of the State of New York.
The president and at least two-thirds of the board of directors and other
managing officers of the Corporation are individuals who are citizens of the
United States. At least 75% of the voting

                                   EXHIBIT A-1                            PAGE 2
<Page>

interest in the Corporation is owned or controlled, directly or indirectly, by
individuals who are citizens of the United States.

     The opinions expressed herein are qualified in their entirety as follows:
(a) no opinion is expressed with respect to laws other than the federal laws of
the United States and the State of New York; and (b) to the extent that any one
or more of the foregoing opinions relates to the enforceability of any agreement
or instrument: (1) the opinions are subject to the effect of applicable laws or
judicial decisions regarding bankruptcy, reorganization, insolvency, fraudulent
transfers, moratorium and other laws affecting creditors' rights and debtors'
relief generally; (2) the enforceability of the provisions of any such agreement
or instrument is subject to the application of principles of equity, whether in
a proceeding at law or in equity, including the exercise of discretionary powers
of any tribunal before which equitable remedies may be sought (including,
without limitation, specific performance and injunctive relief); and (3) the
enforceability of the provisions of any such agreement or instrument in
accordance with its respective terms may be limited by laws affecting the
remedies which it is provides, including, but not limited to, laws and judicial
decisions limiting such enforceability.

     This opinion is rendered solely to you for your use in connection with the
transactions contemplated by the Lessee Documents, and may not be relied upon by
you for any other purpose, and may not be furnished to or relied upon by any
other person for any purpose, or otherwise used, circulated or quoted, without
my prior written consent. This opinion is rendered as of the date hereof, and I
disclaim any undertaking to advise of any changes that may hereafter be brought
to my attention.

Very truly yours,

Arthur H. Amron
General Counsel

                                   EXHIBIT A-1                            PAGE 3
<Page>

                                                                  EXHIBIT A-2 TO
                                                     THE PARTICIPATION AGREEMENT

                [Form of Opinion of Fulbright & Jaworski L.L.P.]

                                               __________, 2000

To Each of the Parties Listed
on the Attached Schedule

     Re:  LEASE FINANCING OF ONE EMBRAER MODEL EMB-145LR AIRCRAFT
          BEARING UNITED STATES REGISTRATION NUMBER N2__SK

Ladies and Gentlemen:

     We have acted as special New York counsel for Chautauqua Airlines, Inc., a
New York corporation (the "Lessee"), in connection with the Participation
Agreement [N2__SK] dated as of __________, 2000, among the Lessee; Aircraft
Services Corporation, as Owner Participant; and First Security Bank, National
Association ("FSB"), as Owner Trustee. Capitalized terms used herein and not
otherwise defined herein shall have the meanings set forth or referred to in the
Participation Agreement. For purposes hereof, "Documents" shall be a collective
reference to the Participation Agreement, the Lease, the Lease Supplement No. 1
and the Tax Indemnity Agreement.

     This opinion is furnished to you pursuant to Section 3.01(b)(xvi)(B) of the
Participation Agreement.

     In rendering this opinion, we have examined the Documents and such other
Operative Agreements as are necessary in order to give the opinions expressed
herein. We have further examined and relied upon the accuracy of original,
certified, conformed, photographic or telecopied copies of such records,
agreements, certificates, certificates of public officials and such other
documents, and have made an investigation of such laws, as we have deemed
necessary and appropriate for the purpose of rendering this opinion. As to
certain questions of fact material to our opinions, we have relied solely upon
the accuracy of the statements, representations and warranties made in the
Documents and such other Operative Agreements and we have made no independent
investigation or inquiry with respect to such factual matters.

     Based on the foregoing and upon an examination of such questions of law as
we have considered necessary or appropriate, and subject to the assumptions,
exceptions, qualifications and limitations set forth below, we advise you that
in our opinion:

                                   EXHIBIT A-2                            PAGE 1
<Page>

     1.   Each of the Documents constitutes a legal, valid and binding
obligation of the Lessee, enforceable against the Lessee in accordance with its
terms.

     2.   The execution and delivery by the Lessee of the Documents, the
consummation by the Lessee of the transactions contemplated thereby and the
compliance by the Lessee with any of the terms and provisions thereof do not
contravene any applicable federal law of the United States or any applicable law
of New York.

     3.   Except for the filings with the FAA referred to in paragraph 4 below,
the execution and delivery by the Lessee of the Documents and the consummation
by the Lessee of the transactions contemplated thereby do not require the
consent or approval of, or the giving of notice to, or the registration,
recording or filing of any document with, or the taking of any other action with
respect to any authority or agency of the federal government of the United
States of America or the State of New York.

     4.   The Lease as supplemented by Lease Supplement No. 1 thereto are in due
form for filing in accordance with Subtitle VII of Title 49 of the United States
Code (the "Act"). Except for the filings with the FAA referred to in the opinion
dated today and addressed to you of Daugherty, Fowler, Peregrin & Haught and the
filing of the Uniform Commercial Code financing statement referenced in Section
3.01(k) of the Participation Agreement, which filing we assume has been duly
effected and is adequate for its intended purpose (and subject to the timely
filings in the future of continuation statements with respect to such financing
statement), no recording or filing in the United States of America of any of the
Documents, nor any other action, is necessary or advisable in order to establish
and perfect in the United States of America, the Owner Trustee's rights and
interest in the Aircraft as against the Lessee or any third party.

     5.   The Participation Agreement, the Lease and Lease Supplement No. 1
(the "Owner Trustee Instruments") constitute legal, valid and binding
obligations of FSB, to the extent any of such Owner Trustee Instruments were
entered into by FSB in its individual capacity, and the Owner Trustee, or both,
as the case may be, enforceable against FSB or the Owner Trustee, or both, as
the case may be, in accordance with the terms of such agreements.

     6.   So long as at the time of entering into the Lease the Lessee is a
"citizen of the United States," as defined in Section 40102 of Title 49 of the
United States Code, 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 10 or more individuals or 6,000
pounds or more of cargo, the Owner Trustee, as lessor under the Lease, would be
entitled to the benefits of Section 1110 of the Bankruptcy Code ("Section 1110")
with respect to the Aircraft.

     The foregoing opinions are subject to the following assumptions,
exceptions, qualifications and limitations:

                                   EXHIBIT A-2                            PAGE 2
<Page>

     A.   The foregoing opinions are expressly limited to matters under and
governed by the internal laws of the State of New York and applicable federal
laws of the United States of America, except that we express no opinion as to
the securities law of any state, including the State of New York. Our opinion in
paragraph 2 above as to the contravention of certain laws, rules and regulations
is based upon such examination of laws and regulations as in our judgment was
necessary and appropriate for the purpose of such opinion.

     B.   The foregoing opinions regarding the enforceability of the Documents
against any of the parties thereto are subject to the following:

          (i)   The enforceability of any of the Operative Agreements may be
                limited or affected by (a) bankruptcy, insolvency,
                reorganization, moratorium, liquidation, rearrangement, probate,
                conservatorship, fraudulent transfer, fraudulent conveyance and
                other similar laws (including court decisions) now or hereafter
                in effect and affecting the rights and remedies of creditors
                generally or providing for the relief of debtors, (b) the
                refusal of a particular court to grant (1) equitable remedies,
                including, without limiting the generality of the foregoing,
                specific performance and injunctive relief or (2) a particular
                remedy sought by the Owner Trustee under the Lease as opposed to
                another remedy provided for therein or another remedy available
                at law or in equity, but which does not in our opinion make such
                remedies inadequate for the practical realization of the
                benefits intended to be provided thereby, (c) general principles
                of equity (regardless of whether enforcement is sought in a
                proceeding in equity or at law) and (d) the refusal of a federal
                court to grant jurisdiction in connection with any suit
                commenced relating to the Operative Agreements.

          (ii)  In rendering the foregoing opinions, we express no opinion as to
                the enforceability of provisions of any of the Operative
                Agreements (a) purporting to waive or affect rights, claims,
                defenses or other benefits bestowed by law, including without
                limitation the right to receive notices, to the extent that any
                of the same cannot be waived or affected or (b) relating to
                indemnities to the extent prohibited by public policy or limited
                by federal or state securities laws or which might require
                indemnification for losses or expenses caused by gross
                negligence, willful misconduct, fraud or illegality of an
                indemnified party, the rights of third parties, or the exercise
                of rights and remedies with respect to the Aircraft other than
                in a commercially reasonable manner or as otherwise provided in
                the Uniform Commercial Code or other applicable law.

                                   EXHIBIT A-2                            PAGE 3
<Page>

          (iii) We note that the enforceability of specific provisions of the
                Operative Agreements may be subject to standards of
                reasonableness, care and diligence and "good faith" limitations
                and obligations such as those provided in Sections 1-102(3) and
                I-203, of the Uniform Commercial Code and similar applicable
                principles of common law and judicial decisions.

          (iv)  We express no opinion with respect to compliance with the
                anti-fraud provisions of applicable federal rules or
                regulations.

     C.   We have assumed the due authorization, execution and delivery of the
Operative Agreements by each of the parties thereto (including the Lessee) and
that each of such parties has the full power, authority and legal right to
execute, deliver and perform such documents.

     D.   Except to the extent expressly set forth in paragraphs 1 and 5, we
have assumed that each of the Operative Agreements is enforceable against each
of the parties thereto.

     E.   With respect to the opinion given in paragraph 5, our opinion is
subject to limitations of Utah law applicable to FSB and the Owner Trustee, as
to which we express no opinion.

     F.   We have assumed the genuineness of all signatures, the authenticity
of all documents submitted to us as originals and the conformity to the
originals of all documents submitted to us as copies, which facts we have not
verified independently.

     G.   We express no opinion as to whether the Lease constitutes a "true
lease."

     H.   We have assumed that the Operative Agreements and the transactions
contemplated thereby are not within the prohibitions of Section 406 of the
Employee Retirement Income Security Act of 1974.

     I.   With respect to the opinion given in paragraph 6, we express no
opinion as to the availability of the benefits of Section 1110 of the Bankruptcy
Code to any Replacement Aircraft or Replacement Engine.

     J.   In giving the foregoing opinion, we have relied upon the opinions
delivered to you today of Daugherty, Fowler, Peregrin & Haught with respect to
the matters set forth therein. Our opinion is suitable to all applicable
qualifications and exceptions set forth in such opinion.

     The opinions expressed herein are solely for the benefit of, and may only
be relied upon by, the named addressees in connection with the transactions
contemplated by the Participation Agreement. This opinion may not be furnished
or relied upon by any other person without the prior written consent of this
Firm. We make no undertaking to amend or supplement such opinions as

                                   EXHIBIT A-2                            PAGE 4
<Page>

facts and circumstances come to our attention or changes in the law occur which
could affect such opinions.

                                         Very truly yours,

                                   EXHIBIT A-2                            PAGE 5
<Page>

                             SCHEDULE OF ADDRESSEES

Aircraft Services Corporation

First Security Bank, National Association,
 individually and as Owner Trustee

                                   EXHIBIT A-2                            PAGE 6
<Page>

                                                                  EXHIBIT A-3 TO
                                                     THE PARTICIPATION AGREEMENT

                   [Form of Opinion of Ray, Quinney & Nebeker]

                                February __, 2001

TO EACH OF THE PARTIES SET FORTH
  IN SCHEDULE A HERETO:

Re: Trust Agreement [N281SK] dated as of February __, 2001

Dear Sir or Madam:

We have acted as special counsel for First Security Bank, National Association,
a national banking association, in its individual capacity ("First Security")
and in its capacity as trustee (the "Owner Trustee") under Trust Agreement
[N281SK] dated as of February__, 2001 (the "Trust Agreement") between it and
General Electric Capital Corporation, a New York corporation, as owner
participant (the "Owner Participant"), in connection with the execution and
delivery by First Security of the Trust Agreement and by the Owner Trustee of
the Operative Agreements to which it is a party. Except as otherwise defined
herein, the terms used herein shall have the meanings set forth in Appendix A to
the Participation Agreement dated as of February __, 2001 (the "Participation
Agreement") between the Owner Trustee, the Owner Participant and Chautauqua
Airlines, Inc., as Lessee.

<Page>

We have examined originals or copies, certified or otherwise Identified to our
satisfaction, of such documents, corporate records and other instruments as we
have deemed necessary or advisable for the purpose of rendering this opinion.
Based upon the foregoing, we are of the opinion that:

     1.   First Security is a national banking association duly organized,
     validly existing and in good standing under the laws of the United States,
     is a "citizen of the United States" within the meaning of Section
     40102(a)(15) of Title 49 of the United States Code and has under the laws
     of the state of Utah and federal banking law the power and authority to
     enter into and perform its obligations under the Trust Agreement and,
     acting as Owner Trustee thereunder, the Operative Agreements to which it is
     a party.

     2.   The Trust Agreement has been duly authorized, executed and delivered
     by one of the officers of first Security and, assuming due authorization,
     execution and delivery by the Owner Participant, is the legal, valid and
     blinding of First Security, enforceable against First Security in
     accordance with its terms.

     3.   The Operative Agreements to which the Owner Trustee is a party have
     been duly authorized, executed and delivered by the Owner Trustee, acting
     pursuant to the Trust Agreement, and assuming due authorization, execution
     and delivery by the other parties thereto, are legal, valid and binding
     obligations of the Owner Trustee enforceable against the Owner Trustee in
     accordance with their respective terms.

     4.   The execution and delivery by First Security of the Trust Agreement
     and by the Owner Trustee of the Operative Agreements to which it is a party
     are not, and the performance by First Security or the Owner Trustee, as the
     case be, of its obligations under each will not be, inconsistent with the
     articles of association or by-laws of First Security, do not and will not
     contravene any Utah or federal banking law, governmental rule of regulation
     or any judgment or order of which we have knowledge and which is
     applicable to First security or the Owner Trustee, as the case may be, and
     do not and will not contravene any provision of, or constitute a default
     under, or result in the creation of any Lien upon the property of Owner
     Trustee pursuant to its charter documents or by-laws or any indenture,
     mortgage, contract or other instrument to which First Security or the Owner
     Trustee, as the case may be, is a party or by which either is bound or
     require the consent or approval of or the giving of notice to, or the
     registration with, or the taking of any action in respect of, or under, any
     federal banking law or the laws of the State of Utah or any subdivision or
     agency thereof governing its banking or trust powers, other than any such
     consent, approval, notice, registration or action as has been duly
     obtained, given or taken and is in full force and effect.

<Page>

     5.   There are no applicable taxes, fees or other charges, except taxes
     imposed on fees payable to the Owner Trustee, required to be paid under the
     laws of Salt Lake City or the State of Utah in connection with the
     execution, delivery or performance of the Trust Agreement and the Operative
     Agreements to which the Owner Trustee or First Security is a party solely
     because the Owner Trustee or First Security, as the case may be, has its
     principle place of business in the State of Utah and performs certain of
     its obligations under the Trust Agreement and the Operative Agreements to
     which it is a party in Salt Lake City or the State of Utah. Neither the
     Owner Trustee nor the trust created under the Trust Agreement will be
     subject to any tax, fee, or other charges under the laws of the State of
     Utah or any political subdivisions thereof on, based on or measured by,
     directly or indirectly, the gross receipts, net income or value of the
     Trust Estate.

     6.   To our knowledge, there are no proceedings pending or threatened
     against or affecting First Security or the Owner Trustee, as the case may
     be, in any court or before any governmental authority, agency or
     arbitration board or tribunal which, if adversely determined, individually
     or in the aggregate, would materially and adversely affect the right, power
     and authority of First Security or the Owner Trustee to enter into or
     perform its obligations under the Operative Agreements to which it is a
     party.

The foregoing opinions are subject to the following assumptions, exceptions and
qualifications:

     A.   The foregoing opinions are limited to the laws of the State of Utah
and the federal laws of the United States of America governing the banking and
trust powers of First Security. In addition, without limiting the foregoing, we
express no opinion with respect to (i) federal securities laws, including the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, and the Trust Indenture Act of 1939, as amended, (ii) Title 49 of the
United States Code Annotated, previously known as the Federal Aviation Act of
1958, as amended [except with respect to the opinion set forth in paragraph 1
above concerning the citizenship of First Security], (iii) the Federal
Communications Act of 1934, as amended, or (iv) state securities or blue sky
laws. Insofar as the foregoing opinions relate to the legality, validity,
binding effect and enforceability of the documents involved in these
transactions, which by their terms are governed by the laws of a state other
than Utah, we have assumed that such documents constitute legal, valid, binding
and enforceable agreements under the laws of such other state, as to which we
express no opinion.

     B.   The foregoing opinions regarding enforceability of any document or
instrument are subject to (i) applicable bankruptcy, insolvency, moratorium,
reorganization, receivership and similar laws affecting the rights and remedies
of creditors generally, and (ii) general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or at law.

<Page>

     C.   The opinion set forth in paragraph 1 above concerning the citizenship
of First Security is based upon the facts contained in an affidavit of First
Security, made by its authorized officer, which facts we have not independently
verified.

     D.   We have assumed that all signatures, other than those of the Owner
Trustee or First Security, on documents and instruments involved in these
transactions are genuine, that all documents and instruments submitted to us as
originals are authentic, and that all documents and instruments submitted to us
as copies conform with the originals, which facts we have not independently
verified.

     E.   Other than the opinion set forth in paragraph 1 above concerning the
citizenship of First Security, we do not purport to be experts in respect of, or
express any opinion concerning laws, rules or regulations applicable to the
particular nature of the equipment involved in these transactions.

     F.   We have made no investigation of, and we express no opinion
concerning, the nature of the title to any part of the equipment involved in
these transactions or the priority of any mortgage or security interest.

     G.   In addition to any other limitation by operation of law upon the
scope, meaning, or purpose of this opinion, this opinion speaks only as of the
date hereof. We have no obligation to advise the recipients of this opinion (or
any third party) of changes of law or fact that may occur after the date hereof,
even though the change may affect the legal analysis, a legal conclusion or an
information confirmation herein.

     H.   The opinions expressed in this letter are solely for the use of the
parties to which it is addressed (and their permitted successors and assigns) in
matters directly related to the Operative Agreements and the transactions
contemplated thereunder and these opinions may not be rolled on by any other
persons or for any other purpose without our prior written approval. The
opinions expressed in this letter are limited to the matter set forth in this
letter, and no other opinions should be inferred beyond the matters expressly
stated.

                                         Very truly yours,

                                         RAY, QUINNEY & NEBEKER

<Page>

                                   SCHEDULE A

                    First Security Bank, National Association

                    General Electric Capital Corporation

                    Chautauqua Airlines, Inc.

<Page>

                                                                  EXHIBIT A-4 TO
                                                     THE PARTICIPATION AGREEMENT

[Form of Opinion of Daugherty, Fowler, Peregrin & Haught, a Professional
Corporation]

                                February 23, 2001

To the Parties Named on
       Schedule A attached hereto

Ladies and Gentlemen:

          We acted as special counsel in connection with the transactions
contemplated by the hereinafter described instruments and this opinion is
furnished to you with respect to that portion of Subtitle VII of Title 49 of the
United States Code relative to the recordation of instruments and the
registration of aircraft thereunder.

          Capitalized terms not otherwise defined herein shall have the meanings
given them in Annex I attached hereto.

          We have examined and filed on this date with the Federal Aviation
Administration (the "FAA") the following described instruments at the respective
times listed below:

     (a)  AC Form 8050-2 Aircraft Bill of Sale dated February 23, 2001 (the "FAA
          Bill of Sale") from Solitair Corp., as seller, conveying title to the
          Airframe to First Security Bank, National Association, as owner
          trustee under the Trust Agreement (the "Owner Trustee"), which FAA
          Bill of Sale was filed at 11:28 a.m., C.S.T.,

     (b)  AC Form 8050-1 Aircraft Registration Application dated February 23,
          2001 (the "Aircraft Registration Application") by the Owner Trustee as
          applicant,

<Page>

To the Parties Named on
       Schedule A attached hereto
February 23, 2001
Page 2

          with respect to the Airframe, which Aircraft Registration Application
          was filed at 11:28 a.m., C.S.T.;

     (c)  Affidavit or Citizenship dated February 23, 2001 (the "Owner Trustee
          Affidavit") by the Owner Trustee pursuant to Section 47.7(c)(2)(ii) of
          the Federal Aviation Regulations with Affidavit of Citizenship dated
          February 16, 2001 (the "Owner ,Participant Affidavit") by General
          Electric Capital Corporation, as owner participant (the "Owner
          Participant"), attached thereto, which Owner Trustee Affidavit with
          the Owner Participant Affidavit attached was filed at 11:28 a.m.,
          C.S.T.;

     (d)  Trust Agreement [N281SK] dated as of February 23, 2001 (the "Trust
          Agreement") between the Owner Participant and the Owner Trustee, which
          Trust Agreement was filed at 11:28 a.m., C.S.T., and,

     (e)  Lease Agreement [N281SK] dated as of February 23, 2001 (the "Lease")
          between the Owner Trustee, as lessor, and Chautauqua Airlines, Inc.,
          as lessee (the "Lessee"), with Lease Supplement No.1 [N281SK] dated
          February 23, 2001 (the "Lease Supplement") by the Owner Trustee, as
          lessor, and the Lessee, with respect to the Aircraft, attached
          thereto, which Lease with the Lease Supplement attached was filed at
          11:29 a.m., C.S.T.

          The Confidential Omissions were intentionally omitted from the FAA
filing counterpart of the Lease, as supplemented by the Lease Supplement, as
containing confidential financial information.

          Based upon our examination of the above described instruments and of
such records of the FAA as we deemed necessary to render this opinion, it is our
opinion that:

     1.   the FAA Bill of Sale, the Lease and the Lease Supplement are in due
          form for recordation by and have been duly filed for recordation with
          the FAA pursuant to and in accordance with the provisions of 49 U.S.C.
          Section 44107;

<Page>

To the Parties Named on
       Schedule A attached hereto
February 23, 2001
Page 3

     2.   the Aircraft Registration Application, the Owner Trustee Affidavit
          with the Owner Participant Affidavit attached and the Trust Agreement
          are in due form for filing and have been duly filed with the FAA
          pursuant to and in accordance with the provisions of 49 U.S.C. Section
          44103(a) and Section 47.7(c) of the Federal Aviation Regulations;

     3.   the Airframe is eligible for registration under 49 U.S.C. Section
          44102 in the name of the Owner Trustee and the filing with the FAA of
          the FAA Bill of Sale, the Aircraft Registration Application, the Owner
          Trustee Affidavit with the Owner Participant Affidavit attached and
          the Trust Agreement will cause the FAA to register the Airframe, in
          due course, in the name of the Owner Trustee and to issue to the Owner
          Trustee an AC Form 8050-3 Certificate of Aircraft Registration for the
          Airframe pursuant to and in accordance with the provisions of 49
          U.S.C. Section 44103(a);

     4.   the Owner Trustee holds legal title to the Airframe and the Aircraft
          is free and clear of liens and encumbrances of record except as
          created by the Lease, as supplemented by the Lease Supplement;

     5.   the rights of the Owner Trustee, as lessor, and the Lessee under the
          Lease, as supplemented by the Lease Supplement, with respect to the
          Aircraft, are perfected; and,

     6.   no authorization, approval, consent, license or order of, or
          registration with, or the giving of notice to, the FAA is required for
          the valid authorization, delivery and performance of the Lease, as
          supplemented by the Lease Supplement, or the Trust Agreement, except
          for such filings as are referred to above.

          No opinion is expressed as to the Airframe during any period or
periods of time during which it has not been subject to United States
registration.

          No opinion is expressed as to laws other than Federal laws of the
United States.

<Page>

To the Parties Named on
       Schedule A attached hereto
February 23, 2001
Page 4

In rendering this opinion, we were subject to the accuracy of the FAA, its
employees and agents, in the filing, indexing and recording of instruments filed
with the FAA and in the search for encumbrance cross-reference index cards for
the Engines. Further, in rendering this opinion we are assuming the validity and
enforceability of the above described instruments under local law. Since our
examination was limited to records maintained by the FAA, our opinion does not
cover liens which are perfected without the filing of notice thereof with the
FAA, such as federal tax liens, liens arising under 29 U.S.C. Section 1368(a),
possessory artisan's liens, or matters of which the parties have actual notice.
In rendering this opinion we are assuming that there are no documents with
respect to the Aircraft which have been filed for recording under the recording
system of the FAA but have not yet been listed in the available records of such
system as having been so filed.

          In rendering this opinion we have relied upon the opinion of the
Aeronautical Center Counsel dated February 21, 2001, a copy of which is attached
hereto. In rendering this opinion with respect to the eligibility of the Lease,
as supplemented by the Lease Supplement, for recordation with the Confidential
Omissions, we have relied upon the opinion of John A. Cassady, Deputy Chief
Counsel of the FAA issued September 16, 1994 (Federal Register/Volume 59,
Number 182/September 21, 1994).

                                         Very truly yours,

                                   [ILLEGIBLE]

<Page>

                                                                         Annex I

                               CERTAIN DEFINITIONS

                         AIRFRAME, ENGINES AND AIRCRAFT

          One (1) Embraer EMB-145LR aircraft bearing manufacturer's serial
number 145391 and U.S. Registration No. N281SK (the "Airframe") and two (2)
Allison AE3007A1P aircraft engines bearing manufacturer's serial numbers
CAE311697 and CAE311698 (the "Engines") (the Airframe and the Engines are
referred to collectively as the "Aircraft").

                             CONFIDENTIAL OMISSIONS

          The Lease, as supplemented by the Lease Supplement, was filed with the
Federal Aviation Administration with (i) Exhibit B (Certain Economic
Information); (ii) Exhibit C-1 (Basic Rent Payment Schedule); (iii) Exhibit C-2
(Basic Rent Allocation Schedule); (iv) Exhibit D (Termination Values); (v)
Exhibit F-1 (Return Conditions); and, (vi) Exhibit F-2 (Return Conditions)
Intentionally omitted from FAA filing counterpart thereof as containing
confidential financial information.

<Page>

                                   SCHEDULE A

First Security Bank, National Association,
 as Owner Trustee

General Electric Capital Corporation

Chautauqua Airlines, Inc.

<Page>

               [LETTERHEAD OF U.S. DEPARTMENT OF TRANSPORTATION]

February 21, 2001

Susan H. Haught, Esq.
Daugherty, Fowler, Peregrin & Haught
204 North Robinson
900 City Place
Oklahoma City, OK 73102

Dear Ms. Haught,

                          Re: Aircraft N280SK & N281SK

As requested in your letter of February 16, 2001, this office has reviewed the
forms of the Trust Agreement and Affidavits submitted to support registration of
the above referenced Aircraft in the name of the Owner Trustee pursuant to 14
C.F.R. Section 47.7(c).

You have requested our opinion as to whether:

1)   The referenced Aircraft are eligible for registration under 49 U.S.C. 44102
     in the name of the Owner Trustee upon the filing of the above described
     instruments, along with appropriate evidence of ownership and an Aircraft
     Registration Application form,

2)   The form of the Trust Agreement satisfies the requirements of Section
     47.7(c)(2)(i) of the Federal Aviation Regulations (FAR) (14 C.F.R.
     47.7(c)(2)(i)), and

3)   The form of the Affidavit of Citizenship of the Owner Trustee, as
     supported by the form of the Affidavit of Citizenship of the Owner
     Participant, satisfies the requirements of Section 47.7(c)(2)(ii) of the
     FAR (14 C.F.R. 47.7(c)(2)(ii).

Based on our review of the documents described above it is our opinion that:

1)   The referenced Aircraft are eligible for registration in the name of First
     Security Bank, National Association, as Owner Trustee, provided there is
     sufficient evidence of ownership,

2)   The form of the Trust Agreement meets the requirements of Section
     47.7(c)(2)(i) of the FAR, and

3)   The form of the Affidavit of Citizenship of the Owner Trustee, as supported
     by the

<Page>

form of the Affidavit of the Owner Participant, meets the requirements of
Section 47.7(c)(2)(ii) of the FAR.

As reflected in the Trust Agreement, the Owner Participant, Aircraft Services
Corporation, a Nevada Corporation, empowers the Owner Trustee, First Security
Bank, N.A., to hold the Trust Estate for the use and benefit of the Owner
Participant, and to make application for registration. (Reference Sections 2.02
and 3.01(v) of the Trust Agreement)

Based on our review, it appears that the form of the Trust Agreement meets the
requirements of 14 C.F.R. 47.7(c)(2)(i) and the form of the Owner Trustee's
Affidavit of Citizenship, as supported by the form of the Affidavit of
Citizenship of the Owner Participant, meets the requirements of 14 C.F.R.
47.7(c)(2)(ii), and we so determine.

Your submission of these documents, in duly executed versions, will support
registration in the name of First Security Bank, N.A., as Owner Trustee,
provided there is suitable evidence of ownership.

Sincerely,

Joseph R. Standell
Aeronautical Center Counsel

By:  /s/ James M. Webster
     James M. Webster
     General Attorney

<Page>

                                                                  EXHIBIT A-5 TO
                                                     THE PARTICIPATION AGREEMENT

                      [FORM OF OPINION OF HOLLAND & KNIGHT]

                                February __, 2001

To Each of the Addressees
Listed in Schedule A
Attached Hereto

          Re:   CHAUTAUQUA AIRLINES, INC./ GENERAL ELECTRIC CAPITAL
                CORPORATION - PARTICIPATION AGREEMENT [N281SK]

Ladies and Gentleman:

          We have acted as special counsel to General Electric Capital
Corporation, a New York corporation ("GECC"), in connection with the
transactions contemplated by the Participation Agreement [N281SK], dated as of
February __, 2001 (the "PARTICIPATION AGREEMENT"), among (a) Chautauqua
Airlines, Inc., (b) GECC, and (c) First Security Bank, National Association, not
in its individual capacity but solely as Owner Trustee. This opinion letter is
delivered to you pursuant to Section 3.01(b)(xvi)(G) of the Participation
Agreement.

          All capitalized terms used but not defined herein shall have the
respective meanings given to such terms in the Participation Agreement.

          In rendering the opinions expressed below, we have examined the
agreements and other documents set forth in EXHIBIT A hereto. The documents
described in EXHIBIT A are hereinafter referred to herein as the "OPINION
DOCUMENTS."

          In our examination, we have assumed, with your permission and without
independent investigation: (i) the genuineness of all signatures; (ii) the
authenticity of all documents submitted to us as originals, the conformity to
originals of all documents submitted to us as copies and the authenticity of the
originals of such copies; (iii) the due organization, valid existence and good
standing of each party to the Opinion Documents and the due authorization,
execution and delivery of each Opinion Document by each party thereto; (iv) the
full power, authority and legal right of each party to the Opinion Documents to
enter into the same; (v) that each Opinion Document is the legal, valid and
binding obligation of each party thereto (except

<Page>

To Each of the Addressees
Listed in Schedule A
Attached Hereto
Page 2

GECC), enforceable against each such party in accordance with its terms; (vi)
that the parties have obtained and will obtain all necessary permits and other
approvals for conducting their respective businesses and operations; (vii) the
absence of evidence extrinsic to the provisions of the written agreements
between the parties that the parties intended a meaning contrary to that
expressed by those provisions; however, none of the attorneys in this firm who
has rendered legal services in connection with the representation described in
the first paragraph of this opinion letter has any current actual knowledge of
any such evidence; and (viii) the identity and capacity of all individuals
acting or purporting to act as public officials or corporate officers.

          We have without independent investigation relied upon and assumed the
truth and accuracy of each of the representations and warranties in the Opinion
Documents as to factual matters contained in or made pursuant to the Opinion
Documents and certificates delivered thereunder. We have not undertaken any
independent investigation to determine the accuracy of any factual statement
therein, and no inference that we have any knowledge of any matters pertaining
to any such statement should be drawn from our representation of GECC.

          In rendering the following opinions, we have relied, without making
any independent investigation with respect thereto, upon the opinion of Ray
Warman, acting as counsel for General Electric Capital Corporation, delivered to
you on the date hereof, as to the matters addressed therein.

          Based upon and subject to the foregoing and subject also to the
comments, assumptions, qualifications and exceptions set forth below, and having
considered such questions of law as we have deemed necessary as a basis for the
opinions expressed below, we are of the opinion that:

          Each of the Opinion Documents constitutes the legal, valid and binding
obligation of GECC, enforceable against GECC in accordance with its terms,
except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the rights and remedies of creditors
generally and public policy considerations (in the case of the indemnity
provisions contained therein), and subject to general principles of equity
(regardless of whether considered in a proceeding in equity or at law).

          We are qualified to practice law in the State of New York and we
express no opinion on the laws of any jurisdiction other than the federal laws
of the United States and the laws of the State of New York. We express no
opinion as to (i) any state or federal securities laws, (ii) any state of
federal tax laws, (iii) matters governed by Title 49 of the United States Code
or by any other aviation law or law, statute, rule or regulation of the United
States of America relating to the acquisition, ownership, leasing, registration,
use, operation, maintenance, repair, replacement, sale of or the particular
nature of the Aircraft, (iv) the applicability of the laws of any jurisdiction
that may limit the maximum rate or amount of interest that may be

<Page>

To Each of the Addressees
Listed in Schedule A
Attached Hereto
Page 3

charged, taken, collected or received with respect to the obligations under the
Participation Agreement or any other Opinion Document, or as to the effect of
such laws if applicable, (v) any waiver of inconvenient forum provision in any
Opinion Document, (vi) the creation, perfection or priority of any lien or
security interest contemplated by the Opinion Documents or (vii) any choice of
law provisions in any Opinion Document.

          This opinion speaks only as of the date hereof and we do not undertake
any obligation to advise you of any changes in law or fact that occur after the
date hereof. This opinion is limited to the matters expressly stated herein and
no opinion or other statement may be inferred or implied beyond the matters
expressly stated herein. At the request of our client, this opinion letter is
provided to you solely for your benefit by us in our capacity as special counsel
to GECC in connection with the transactions contemplated under the Participation
Agreement. This opinion letter may not be relied upon by you for any other
purpose or relied upon, quoted or referred to, nor may copies be delivered to,
any other Person without, in each instance, or prior written consent.

                                         Very truly yours,

                                         HOLLAND & KNIGHT LLP

<Page>

                                                                      SCHEDULE A

                               LIST OF ADDRESSEES

Chautauqua Airlines, Inc., as Lessee
2500 S. High School Road
Indianapolis, Indiana 46241

First Security Bank, National Association, as Owner Trustee
79 South Main Street
Salt Lake City, Utah 84111

Solitair Corp.
411 West Putnam Avenue
Greenwich, Connecticut 06830

                                       A-1
<Page>

                                                                       EXHIBIT A

                            LIST OF OPINION DOCUMENTS

1.   Aircraft Purchase Agreement [N281SK];

2.   Participation Agreement [N281SK];

3.   Trust Agreement [N281SK];

4.   Tax Indemnity Agreement [N281SK].

                                       A-1
<Page>

                                                                  EXHIBIT A-6 TO

                                                     THE PARTICIPATION AGREEMENT

          [Form of Opinion of General Counsel to the Owner Participant]

                               February ___, 2000

To Each of the Addressees
Listed in Schedule A
Attached Hereto

          Re:  CHAUTAUQUA AIRLINES, INC./ GENERAL ELECTRIC CAPITAL CORPORATION -
               PARTICIPATION AGREEMENT [N281SK]

Ladies and Gentleman:

          I am Senior Vice President and Associate General Counsel of GE Capital
Aviation Services, Inc., a wholly-owned subsidiary of General Electric Capital
Corporation, a New York corporation ("GECC"), and have acted as internal counsel
to GECC in connection with the transactions contemplated by that certain
Participation Agreement [N281SK], dated as of February ___, 2000 (the
"PARTICIPATION AGREEMENT"), among Chautauqua Airlines, Inc. ("CA"). GECC and
First Security Bank, National Association, not in its individual capacity, but
solely as Owner Trustee. All capitalized terms used but not defined herein shall
have the respective meanings given to such terms in the Participation Agreement.
This opinion is being delivered pursuant to Section 3.01(b)(xvi)(H) of the
Participation Agreement.

          In connection with my opinion herein, I have examined the Aircraft
Purchase Agreement, the Participation Agreement [N281SK], the Trust Agreement
[N281SK] and the Tax Indemnity Agreement [N281SK] ("OPINION DOCUMENTS"). I have
also examined originals, or copies certified to my satisfaction, of such other
agreements, documents, certificates and statements of government officials and
corporate officers as I have deemed necessary or advisable as a basis for such
opinion. In such examination I have assumed the genuineness of all signatures
(other than those of GECC), the authenticity of all documents submitted to me as
originals and the conformity with the originals of all documents submitted to me
as copies. I have, when relevant facts were not independently established by me,
relied, to the extent I deemed such reliance proper, upon certificates of public
officials and certificates and other written or telephone statements of officers
of the parties referred to herein. I also have examined and relied as to certain
factual matters upon the representations and warranties contained in or made
pursuant to the Opinion Documents.

          Based upon and subject to the foregoing, it is my opinion that:

          1.    The Owner Participant is a corporation duly incorporated,
                validly existing and in good standing under the laws of the
                State of New York, and has the

<Page>

To Each of the Addressees
Listed in Schedule A Attached Hereto

                corporate power and authority to execute and deliver and to
                perform its obligations under the Opinion Documents.

          2.    Each of the Opinion Documents has been duly authorized, executed
                and delivered by the Owner Participant.

          3.    Neither the execution and delivery by the Owner Participant of
                the Opinion Documents nor the performance by the Owner
                Participant of its obligations under the Opinion Documents, (i)
                requires for its validity the consent or approval of, the giving
                notice to, the registration with, or the taking of any other
                action with respect to, any governmental authority or agency of
                the United States of America or the State of New York; (ii)
                contravenes any law or governmental rule or regulation of the
                United States of America or the State of New York, or, to the
                best of my knowledge, any judgment or other applicable to or
                binding on the Owner Participant; or (iii) contravenes, results
                in any breach of or constitutes any default under, any provision
                of the Owner Participant's certificate of incorporation or its
                amended and restated by-laws.

          4.    To my knowledge, there are no pending or overtly threatening
                actions or proceedings against the Owner Participant before any
                court or administrative agency or arbitrator which, if adversely
                determined, would materially and adversely affect the Owner
                Participant's ability to perform its obligations under any of
                the Opinion Documents.

          I am qualified to practice law in the State of New York and do not
purport to be expert in, or to render any opinion herein concerning, the laws of
any jurisdiction other than the laws of the State of New York and the federal
laws of the United States of America. My opinion is rendered only with respect
to the laws, and the rules, regulations and orders thereunder, that are
currently in effect. No opinion is expressed herein as to matters governed by
(i) any federal or state securities laws, (ii) ERISA or any federal or state tax
laws, (iii) any federal or state antitrust laws or the effect thereof or (iv)
any laws, statutes, rules or regulations relating to the acquisition, ownership,
title, registration, leasing, use or sale of aircraft.

          This opinion is furnished by me at the request of GECC for your sole
benefit, and I agree that you may rely on the opinion expressed herein. No other
Person shall be entitled to rely on this opinion without my express written
consent. This opinion is limited to the matters stated herein, and no opinion is
implied or may be inferred beyond the matters expressly stated herein. This
opinion speaks of its date only. I hereby disclaim any and all undertakings and
obligations of any kind whatsoever to advise you of any changes that hereafter
may be brought to my attention.

          This opinion letter is provided subject to the following conditions:
(1) nothing contained herein shall create any obligation of or right to look to
me individually for any claim, liability, damage, loss or expense whatsoever
whether arising in contract, in tort (including

                                        2
<Page>

To Each of the Addressees
Listed in Schedule A Attached Hereto

negligence and strict liability), or otherwise in connection with this opinion
letter or with the Agreements or otherwise in connection with the transactions
contemplated hereby or thereby and 2) no judgment, order or execution entered in
any suit, action or proceeding, whether legal or equitable, with respect to any
such matters shall be taken against me.

                                         Very truly yours,

                                        3
<Page>

                                   SCHEDULE A

                               LIST OF ADDRESSEES

Chautauqua Airlines, Inc., as Lessee
2500 S. High School Road
Indianapolis, Indiana 46241

First Security Bank, as Owner Trustee
79 South Main Street
Salt Lake City, Utah 84111

Solitair Corp.
411 West Putnam Avenue
Greenwich, Connecticut 06830

                                       A-1
<Page>

                                                                  EXHIBIT B-1 TO
                                                     THE PARTICIPATION AGREEMENT

                  [Form of Assignment and Assumption Agreement]

          THIS ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of _______, _______
between [____________] (the "TRANSFEREE") and __________________________ (the
"TRANSFEROR").

                               W I T N E S S E T H:

          WHEREAS, the Transferor is a party to a Participation Agreement
[N2__SK], dated as of June _____, 2000 among Chautauqua Airlines Incorporated,
as Lessee, First Security Bank, National Association, not in its individual
capacity (except as otherwise expressly provided therein) but solely as Owner
Trustee and the Transferor, as Owner Participant (as the same may be from time
to time amended, the "PARTICIPATION AGREEMENT") and certain other Transaction
Documents (as defined herein);

          WHEREAS, the Transferor desires to sell and assign to the Transferee
all of its right, title and interest in, to and under the Trust Agreement (as
defined in the Participation Agreement) (except as reserved below), and the
Transferee desires to (i) purchase and accept from the Transferor the assignment
of all of the Transferor's right, title and interest in, to and under the Trust
Agreement (except as reserved below) and (ii) assume the Assumed Obligations (as
defined herein); and

          WHEREAS, capitalized terms used herein without definition and which
are defined in the Participation Agreement are used herein with the respective
meanings given such terms in the Participation Agreement;

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

          1.    ASSIGNMENT. Effective as of the date hereof (the "TRANSFER
DATE"), the Transferor hereby irrevocably sells, assigns, transfers, conveys and
sets over to the Transferee all its right, title and interest in, to and under
the Trust Estate, the Participation Agreement, the Trust Agreement, the Tax
Indemnity Agreement and all other Operative Agreements (as defined in the
Participation Agreement), agreements, contracts, documents and instruments
executed and delivered at any time prior to the execution and delivery of this
Agreement in connection with any of the foregoing (the "TRANSACTION DOCUMENTS"),
and any proceeds therefrom, except such rights of the Transferor as have arisen
or accrued prior to the Transfer Date (such excepted rights to include,

                                                            EXHIBIT B-1 - PAGE 1
<Page>

without limitation, the right to receive any amounts due or accrued to the
Transferor under any Transaction Document as of a date prior to the Transfer
Date and the right to enforce any terms under the Participation Agreement or the
Tax Indemnity Agreement with respect to acts or events occurring prior to the
Transfer Date).

          2.    ASSUMPTION. The Transferee hereby assumes all of the
obligations, liabilities and duties of the Transferor arising from and after the
Transfer Date under each Transaction Document (the "ASSUMED OBLIGATIONS") and
confirms that from and after the Transfer Date it shall be deemed a party to
each Transaction Document to which the Transferor is a party and shall be bound
by all the terms thereof (including the agreements and obligations of the
Transferor set forth therein) as if it were named as the Transferor therein.

          3.    FURTHER ASSURANCES. Each party hereto shall, at any time and
from time to time, upon the request of the other party hereto, promptly and duly
execute and deliver any and all such further instruments and documents and take
such further action as the other party may reasonably request to obtain the full
benefits of this Agreement and of the rights and powers herein granted.

          4.    REPRESENTATIONS AND WARRANTIES. The Transferee hereby represents
and warrants to the other parties hereto that:

          (a)   ORGANIZATION AUTHORITY. The Transferee (i) is a ______ duly
organized, validly existing and in good standing under the laws of _____________
and (ii) has the full [corporate] power and authority to conduct its business as
presently conducted, to own or hold under lease its properties and to execute,
deliver and perform this Agreement and to perform the Assumed Obligations.

          (b)   DUE AUTHORIZATION. The execution, delivery and performance of
this Agreement and performance of the Assumed Obligations have been duly
authorized by all necessary corporate action on the part of the Transferee.

          (c)   CONFLICT. The execution, delivery and performance by the
Transferee of this Agreement and the performance of the Assumed Obligations and
the consummation or performance by the Transferee of the transactions
contemplated thereby will not conflict with or result in any violation of,
constitute a default under, or result in the creation of any Lien upon any
property of the Transferee under, any term of the Certificate of Incorporation
or By-laws of the Transferee or any agreement, mortgage, contract, indenture,
lease or other instrument, or any Applicable Law, by which the Transferee or its
properties or assets are bound, except for any such violation, conflict or
default which would not have a material adverse effect on the Transferee or its
ability to perform the Assumed obligations.

                                                            EXHIBIT B-1 - PAGE 2

                                        2
<Page>

          (d)   GOVERNMENT CONSENTS. Neither the execution or delivery of this
Agreement and the performance of the Assumed Obligations nor the consummation of
any of the transactions contemplated hereby or thereby by the Transferee
requires the consent or approval of, the giving of notice to, the registration
with, or the taking of any other action in respect of any United States federal,
state or other governmental authority or agency, including any judicial body,
that would be required to be taken or obtained by the Transferee.

          (e)   LEGAL, VALID AND BINDING OBLIGATIONS. The Assumed Obligations
and this Agreement constitute the legal, valid and binding obligations of the
Transferee enforceable against the Transferee in accordance with their
respective terms except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws affecting the
rights of creditors generally and by general principles of equity, regardless of
whether enforcement is pursuant to a proceeding in equity or at law.

          (f)   LITIGATION. There are no pending or, to the knowledge of the
Transferee, threatened actions or proceedings against the Transferee by or
before any court or administrative agency or arbitrator that, either
individually or in the aggregate, are reasonably likely to materially adversely
affect the ability of the Transferee to perform its obligations under this
Assumption Agreement or the Assumed Obligations.

          (g)   SECURITIES REPRESENTATION. The Transferee is acquiring its
interest in the Trust Estate for investment and not with a view to any resale or
distribution thereof, but subject, nevertheless, to any requirement of law that
the disposition of its property remain within its control at all times, and that
neither it nor anyone authorized by it to act on its behalf has directly or
indirectly offered any interest in the Trust Estate, or any similar security for
sale to, or solicited any offer to acquire any of the same from, anyone.

          (h)   LESSOR'S LIENS. Upon the execution of this Assumption Agreement,
there will be no Lessor's Lien attributable to the Transferee on the Trust
Estate.

          (i)   ERISA. No part of the funds to be used by the Transferee to
acquire the interests to be acquired by it hereunder constitutes assets (within
the meaning of ERISA and any rules and regulations thereunder) of any ERISA
plan.

          (j)   PERMITTED TRANSFEREE. The Transferee is a bank, savings
institution, finance company, leasing company or trust company, national banking
association acting for its own account or in a fiduciary capacity as trustee or
agent under any pension, retirement, profit sharing or similar trust or fund,
insurance company, financial institution, fraternal benefit society or a
corporation acting for its own account having [a combined capital and surplus]
[consolidated net worth or its

                                                            EXHIBIT B-1 - PAGE 3

                                        3
<Page>

equivalent] of not less than $50,000,000].(1) [The Transferee is a Citizen of
the United States.](2) [The Transferee is not an airline or other aircraft
operator or competitor of Lessee in the business of air transportation or an
Affiliate of any thereof.](3)

                Notwithstanding the foregoing or anything else contained in this
Agreement, the Transferee makes no representation or warranty in this Agreement
with respect to laws, rules or regulations relating to aviation or to the nature
or use of the equipment owned by the Owner Trustee, including, without
limitation, the airworthiness, value, condition, workmanship, design, patent or
trademark infringement, operation, merchantability or fitness for use of the
Aircraft[, other than as set forth in the second sentence of Section 4(j)
hereof](4).

          5.    RELIANCE. The representations, warranties, covenants and
agreements of the Transferee are made for the benefit of, and may be relied upon
by, the Owner Trustee, Lessee and Transferor (collectively, the
"BENEFICIARIES"), and each of the Beneficiaries shall be deemed to be an express
third party beneficiary with respect thereto, entitled to enforce directly and
in its own name any rights or claims it may have against such Transferee as such
beneficiary.

          6.    PAYMENTS. Transferor hereby covenants and agrees to pay over to
Transferee, if and when received on or following the Transfer Date, any amounts
(including any sums payable as interest in respect thereof) paid to or for the
benefit of Transferor that, under Section 2 hereof, belong to Transferee, and
Transferee hereby covenants and agrees to pay over to Transferor, if and when
received on or following the Transfer Date, any amounts (including any sums
payable as interest in respect thereof) paid to or for the benefit of Transferee
that, under Section 2 hereof, belong to Transferor.

          7.    COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto on separate counterparts (or upon
separate signature pages), all of which together shall constitute but one and
the same instrument.

----------

(1)  If a guaranty is being provided pursuant to Section 5.01(c) of
the Participation Agreement, replace "The Transferee" at the beginning of this
sentence with the name of the guarantor.

(2)  Include if required pursuant to Section 5.01(c) of the Participation
Agreement.

(3)  Include unless consented to by Lessee as contemplated in the first proviso
in the second sentence of Section 5.01(c) of the Participation Agreement or
unless the Transferee satisfies clause (i), (ii) or (iii) of such first proviso.

(4)  Include if a citizenship representation is required pursuant to Section
5.01(c) of the Participation Agreement.

                                                            EXHIBIT B-1 - PAGE 4

                                        4
<Page>

          8.    GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered on the date first above written.

                                                [                              ]
                                                 ------------------------------
                                                 Transferee

                                                By:
                                                   -----------------------------
                                                   Name:
                                                   Title:

                                                [                              ]
                                                 ------------------------------
                                                Transferor

                                                By:
                                                   -----------------------------
                                                   Name:
                                                   Title:

                                                            EXHIBIT B-1 - PAGE 5

                                       5
<Page>

                                                                  EXHIBIT B-2 TO
                                                     THE PARTICIPATION AGREEMENT

                           FORM OF GUARANTY AGREEMENT

                                                                 [DATE]

     Re:  CHAUTAUQUA AIRLINES INCORPORATED - ONE EMBRAER MODEL ERJ-145LR
          AIRCRAFT BEARING REGISTRATION NO. [N2____SK].

Ladies and Gentlemen:

     Reference is made to that certain Assignment and Assumption Agreement dated
as of ______________ (the "ASSIGNMENT AGREEMENT") by and between _______________
("ASSIGNOR") and _____________ ("ASSIGNEE"). Assignee is a direct or indirect
subsidiary of the undersigned, _____________, a ________ ("GUARANTOR"). Except
as otherwise noted herein, all capitalized terms used herein shall have the
respective defined meanings set forth in that certain Participation Agreement
[N2___SK] (the "PARTICIPATION AGREEMENT"), dated as of June __, 2000 among (a)
Chautauqua Airlines Incorporated, a _________ corporation ("LESSEE"); (b) the
Assignor ("OWNER PARTICIPANT"); (c) First Security Bank, National Association, a
national banking association, not in its individual capacity, except as
expressly provided therein, but solely as Owner Trustee ("OWNER TRUSTEE"); (each
of the Lessee and the Owner Trustee, together with its successors and permitted
assigns, a "GUARANTEED PARTY").

     In connection with the transactions contemplated by the Assignment
Agreement, Guarantor represents and warrants to, and covenants with, each
Guaranteed Party, as follows:

     1.  OWNERSHIP OF ASSIGNEE. Assignee is a direct or indirect subsidiary of
Guarantor.

     2.  REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants that
Guarantor is duly organized and validly existing in good standing under the laws
of _____________. The execution, delivery and performance of this Guaranty
Agreement are within Guarantor's power and authority, have been duly authorized
by all necessary corporate action on the part of the Guarantor and do not
contravene the charter or the by-laws of Guarantor or any indenture, mortgage,
credit agreement, note, long-term lease or other material agreement to which
Guarantor is a party or by which Guarantor is bound, and this Guaranty Agreement
constitutes a legal, valid and binding obligation of Guarantor, enforceable
against Guarantor in accordance with its terms.

     3.  SUBMISSION TO JURISDICTION, ETC. Guarantor hereby agrees to be bound,
to the same extent Owner Participant is bound, by the provisions of Section
13.07 of the Participation Agreement, which are incorporated herein by reference
as if fully set forth herein.

                                                            EXHIBIT B-2 - PAGE 1
<Page>

     4.  UNDERTAKINGS.

     (a) Guarantor hereby unconditionally and irrevocably guaranties not merely
as surety but as primary obligor, the due and punctual: (i) performance by
Assignee of all of the obligations of the "Owner Participant" under the
Operative Agreements assumed by Assignee under the Assignment Agreement; (ii)
payment of any and all sums which are payable by the Owner Participant pursuant
to any of the Operative Agreements which payment obligations were assumed by
Assignee under the Assignment Agreement; and (iii) performance of, observance of
and compliance with all other obligations, covenants and undertakings and
representations and warranties of, or made by, Assignee in the Assignment
Agreement or the Owner Participant contained in or arising under the Operative
Agreements and assumed by Assignee under the Assignment Agreement (such payments
and other obligations referred to in this Section 4(a) hereinafter referred to
as the "OBLIGATIONS"). Guarantor agrees that it will not use the assets of any
ERISA Plan to fund its payment obligations hereunder.

     (b) Guarantor agrees that this Guaranty Agreement is an unconditional and
absolute guaranty of payment and performance (not merely collectability), that
its undertakings hereunder are not contingent upon any Guaranteed Party bringing
any action against Assignee or resorting to any security and hereby expressly
waives any claim that its undertakings hereunder are so contingent.

     (c) Guarantor irrevocably waives promptness, diligence, demand, and all
notices whatsoever as to the Obligations guaranteed hereby, and any other
circumstances which might otherwise constitute a defense available to it, or a
discharge of it (other than the defense of payment or performance), and agrees
that it shall not be required to consent to or receive any notice of any
amendment or modification of, or waiver, consent or extension with respect to,
the Participation Agreement or the other Operative Agreements to which Assignee
is a party that may be made or given as provided herein or otherwise.

     (d) Guarantor further agrees to pay all expenses (including, without
limitation, all fees and disbursements of counsel) that may be paid or incurred
by any Guaranteed Party in enforcing any rights with respect to, or collecting,
any or all of the Obligations and/or enforcing any rights with respect to, or
collecting against, the Guarantor under this Guaranty Agreement.

     (e) Guarantor understands and agrees that its obligations hereunder shall
be construed as continuing, absolute and unconditional without regard to (i) the
validity, regularity or enforceability of any Operative Agreement, any of the
Obligations or any collateral security therefor or guarantee or right of offset
with respect thereto at any time or from time to time held by any Guaranteed
Party, (ii) any defense, set-off or counterclaim (other than a defense of
payment or performance) that may at any time be available to or be asserted by
the Assignee against any Guaranteed Party, or (iii) any other instances
whatsoever (with or without notice to or knowledge of the Assignee or the
Guarantor) that constitutes, or might be construed to constitute, an equitable
or legal discharge of Assignee for the Obligations, or of Guarantor under this
Guaranty Agreement, in bankruptcy or in any other instance.

     5. NO DISCHARGE. The obligation of Guarantor hereunder will not be
discharged by: (a) any

                                                            EXHIBIT B-2 - PAGE 2
<Page>

extension or renewal with respect to any obligation of Assignee, as Owner
Participant, under the Operative Agreements, (b) any modification of, or
amendment or supplement to, any such agreement; (c) any furnishing or acceptance
of additional security or any release of any security; (d) any waiver, consent
or other action or inaction or any exercise or non-exercise of any right, remedy
or power with respect to Assignee, or any change in the structure of Assignee;
(e) any insolvency, bankruptcy, reorganization, arrangement, composition,
liquidation, dissolution or similar proceedings with respect to Assignee; (f)
except as provided in Section 6 any change in ownership of the shares of capital
stock of Guarantor or Assignee; or (g) any other occurrence whatsoever, except
payment in full of all amounts payable by Assignee, as Owner Participant, under
the Operative Agreements and performance in full of all Obligations of Assignee,
as Owner Participant, in accordance with the terms and conditions of the
Operative Agreements.

     6.  TRANSFERS. The Guarantor may assign, convey or otherwise transfer its
obligations hereunder to any other Person (hereinafter referred to as the
"TRANSFEREE GUARANTOR"), provided that (a) the Transferee Guarantor enters into
an agreement substantially in the form of this Guaranty Agreement and (b) the
Transferee Guarantor meets the requirements of Section 5.01(c) of the
Participation Agreement relating to a "guarantor". If pursuant to Section
5.01(c) of the Participation Agreement or the preceding sentence, a new guaranty
shall be delivered or the obligations of the Guarantor shall be transferred, the
Transferee Guarantor shall deliver an opinion or opinions of counsel
substantively similar to the form of opinion attached to the Participation
Agreement as Exhibit B-3 to the effect that the obligations incurred by the
Transferee Guarantor pursuant hereto constitute the legal, valid, binding and
enforceable obligations of such Transferee Guarantor. Upon the satisfaction by
the Guarantor of the conditions set forth in this Section 6, the Guarantor shall
be released and discharged of any and all further obligations under this
Guaranty Agreement.

     7.  REINSTATEMENT. Guarantor agrees that this Guaranty Agreement shall be
automatically reinstated with respect to any payment made prior to the
termination of this Guaranty Agreement by or on behalf of Assignee pursuant to
the Participation Agreement or the other Operative Agreements to which Assignee
is a party if and to the extent that such payment is rescinded or must be
otherwise restored, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise.

     8.  NO SUBROGATION. Notwithstanding any payment or payments made by
Guarantor hereunder or any set-off or application of funds of Guarantor by any
Guaranteed Party, Guarantor shall not be entitled to be subrogated to any of the
rights of Guaranteed Party against Assignee or any collateral, security or
guarantee or right of set-off held by any Guaranteed Party for the payment of
the Obligations, nor shall Guarantor seek or be entitled to seek any
reimbursement from the Assignee in respect of payments made by Guarantor
hereunder, until all amounts and performance owing to the Guaranteed Parties by
Assignee on account of the Obligations are paid and performed in full.

     9.  SEVERABILITY. Any provision of this Guaranty Agreement that 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.

                                                            EXHIBIT B-2 - PAGE 3
<Page>

     10. MISCELLANEOUS. This Guaranty Agreement shall: (a) be binding upon
Guarantor, its successors and assigns; (b) inure to the benefit of, and be
enforceable by, the Guaranteed Parties but shall not, and is not intended to,
create rights in any other third parties; (c) not be waived, amended or modified
without the written consent of each of the Guaranteed Parties; (d) be governed
by and construed in accordance with, the internal laws of the State of New York,
and (e) remain in full force and effect until the earlier of (i) payment in full
of all sums payable by Assignee, as Owner Participant, under the Assignment
Agreement and the Operative Agreements and by Guarantor hereunder, and
performance in full of all other Obligations of Assignee, as Owner Participant,
under the Assignment Agreement and the Operative Agreements and (ii) the
compliance by Guarantor with Section 6. All notices to, requests of, demands on
and other communications with Guarantor shall be made in writing and shall be
personally delivered, sent by facsimile or telecommunication transmission (which
in either case provides written confirmation to the sender of its delivery) or
sent by registered or certified mail, postage prepaid, or by prepaid courier
service to Guarantor at: ____________________________________________,
Attention: __________________________ telephone (____) ___________] fascimile
[(_____) __________].

     IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly
executed this _________ day of ______________________.

                                [GUARANTOR]

                                By:
                                     -----------------------------------
                                     Name:
                                     Title:

                                                            EXHIBIT B-2 - PAGE 4
<Page>

                                                                  EXHIBIT B-3 TO
                                                     THE PARTICIPATION AGREEMENT

                                 FORM OF OPINION

                                                                          [Date]

TO EACH OF THE PERSONS NAMED
ON THE ATTACHED SCHEDULE I:

     Re:  CHAUTAUQUA AIRLINES INCORPORATED - ONE EMBRAER MODEL ERJ-145LR
          AIRCRAFT BEARING REGISTRATION NO. [N2___SK]

Ladies and Gentlemen:

          As counsel to ________________ a ____________________ ("Assignee"), I
advise you as follows in connection with the Assignment and Assumption Agreement
dated as of ________________, _____ (the "Assignment Agreement") between
Assignee and _________________, a ____________ ("Assignor"), and the
transactions contemplated thereby. Capitalized terms used herein and not defined
herein shall have the respective meanings attributed thereto in the Assignment
Agreement. This opinion is being furnished to you pursuant to the request of
Assignee and Section 5.01(c)(v) of the Participation Agreement.

          I have, or an attorney under my supervision has, examined the
Assignment Agreement. I have, or an attorney under my supervision has, also
examined the originals, or certified, conformed, photocopied or telecopied
copies of such corporate records, certificates, instruments and other documents
as I have deemed necessary or appropriate to enable me to render the opinions
expressed herein. In all such examinations, I have assumed the genuineness of
signatures on original documents (other than those of Assignee) and the
conformity to such original documents of all copies submitted to me as
certified, conformed, photocopied or telecopied copies, and as to certificates
and telegraphic and telephonic confirmations given by public officials, I have
assumed the same to have been properly given and to be accurate. As to all
matters of fact material to my opinions, I have, when relevant facts were not
independently established, relied upon statements, representations and
warranties contained in the Assignment Agreement and upon the statements and
certificates furnished to me.

          In addition, in rendering the opinions expressed herein I have assumed
that (i) the Assignment Agreement has been duly authorized, executed,
authenticated and delivered by Assignor and constitutes the legal, valid and
binding obligation of Assignor, enforceable against Assignor in accordance with
its terms, (ii) Assignor has the requisite power, authority and legal right to
enter into and perform its respective obligations under the Assignment Agreement
and (iii) the transactions provided for in the Assignment Agreement are not
within the prohibitions of Section 406 of the Employee Retirement Income
Security Act of 1974, as amended or Section 4975 of the Internal Revenue Code of
1986, as amended.

                                                            EXHIBIT B-3 - PAGE 1
<Page>

          A.    Based upon the foregoing and subject to the limitations
expressed in paragraph B below, I am of the opinion that:

          1.    Assignee is a ______________ duly organized, validly existing
     and in good standing under the laws of [        ] and has full corporate
     power and authority to execute, deliver and perform the Assignment
     Agreement.

          2.    The Assignment Agreement has been duly authorized, executed and
     delivered by Assignee.

          3.    Neither the execution and delivery of the Assignment Agreement
     by Assignee, nor the consummation by Assignee of the transactions
     contemplated thereby and by the Operative Agreements, conflicts with,
     results in a breach of or violates any of the terms, conditions or
     provisions of (i) the [Certificate][Articles] of Incorporation or By-laws
     of the Assignee, (ii) to the best of my knowledge, any order, writ,
     injunction or decree of any court or governmental authority against the
     Assignee or by which the Assignee or any of its properties is bound or
     (iii) to the best of my knowledge, any indenture, mortgage or contract or
     other material agreement or instrument to which Assignee is a party or by
     which it or any of its properties is bound or constitutes a default
     thereunder.

          4.    To the best of my knowledge, there are no actions, suits or
     proceedings pending or threatened before any court of administrative agency
     or arbitrator which would materially adversely affect the ability of
     Assignee to perform its obligations under the Assignment Agreement and the
     Operative Agreements.

          5.    The Assignment Agreement constitutes a legal, valid and binding
     obligation of Assignee enforceable against Assignee in accordance with the
     terms thereof, except as the enforceability thereof may be limited by (a)
     general equitable principles (regardless of whether such enforceability is
     considered in a proceeding in equity or at law), (b) applicable bankruptcy,
     insolvency, reorganization, moratorium or similar laws affecting the rights
     of creditors generally and (c) public policy considerations (in the case of
     any indemnity provisions contained therein).

          6.    Except for filings with the Federal Aviation Administration,
     neither the execution and delivery by Assignee of the Assignment
     Agreement, nor the consummation by Assignee of any of the transactions
     contemplated thereby or by the Operative Agreements, (a) requires the
     consent or approval of, the giving of notice to, or the registration or
     filing with, or the taking of any action with respect to, any governmental
     authority or agency of the United States or (b) violates any law,
     governmental rule or regulation of the United States or the State of
     [     ].

          B.    I am qualified to practice law in the State of [       ] and I
express no opinion as to any laws other than the laws of the State of [      ],
the General Corporation Law

                                                            EXHIBIT B-3 - PAGE 2
<Page>

of the State of [    ] and the federal laws of the United States of America. I
express no opinion herein as to (i) any federal or state securities laws, (ii)
any tax laws or (iii) any aviation law or other laws, statutes, rules or
regulations applicable due to the particular nature of the equipment subject to
the Lease. In addition, no opinion is expressed as to matters governed by Title
49 of the United States Code, as amended, or by any other law, statute, rule or
regulation or the United States relating to the acquisition, ownership,
registration, use, operation, maintenance, repair, replacement or sale of or the
nature of aircraft. Further, no opinion is expressed as to title to any part of
the Trust Estate. In addition, I express no opinion as to the perfection or
priority of any security interests or as to the right, title or interest in or
to the Trust Estate on the part of any Person.

          This opinion is furnished by me for your sole benefit, and no other
person or entity is entitled to rely on this opinion without my express written
consent. This opinion may not be published or reproduced in any manner or
distributed or circulated to any person or entity without my express written
consent. This opinion is limited to the matters stated herein, and no opinion is
implied or may be inferred beyond the matters expressly stated herein.

                                         Very truly yours,

                                                            EXHIBIT B-3 - PAGE 3
<Page>

                                   SCHEDULE I

[Insert names and addresses of Lessee, Owner Trustee and Assignor]

                                                            EXHIBIT B-3 - PAGE 4

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                          PAGE
<S>                                                                                          <C>
ARTICLE 1. INTERPRETATION....................................................................2
     Section 1.01. Definitions...............................................................2
     Section 1.02. References................................................................2
     Section 1.03. Headings..................................................................2
     Section 1.04. Appendices Schedules and Exhibits.........................................2

ARTICLE 2. SALE AND LEASING TRANSACTIONS.....................................................2
     Section 2.01. Participation.............................................................2
          (a) Sale and Purchase..............................................................2
          (b) Leasing........................................................................3
          (c) Owner Participant's Equity Investment..........................................3
          (d) Delivery Date..................................................................3
     Section 2.02. Closing Procedure.........................................................3
          (a) Time and Place.................................................................3
          (b) Actions of the Owner Trustee...................................................4
          (c) Actions of the Lessee..........................................................4

ARTICLE 3. CONDITIONS PRECEDENT..............................................................5
     Section 3.01. Conditions Precedent to Obligations of Owner Participant..................5
          (a) Notice.........................................................................5
          (b) Delivery of Documents..........................................................5
          (c) Airworthiness..................................................................7
          (d) Violation of Law...............................................................7
          (e) No Event of Default............................................................7
          (f) No Event of Loss...............................................................7
          (g) Title..........................................................................7
          (h) Certification..................................................................7
          (i) Section 1110...................................................................8
          (j) Filings........................................................................8
          (k) Precautionary Financing Statements.............................................8
          (l) No Proceedings.................................................................8
          (m) Governmental Action............................................................8
          (n) Representations and Warranties.................................................8
     Section 3.02. Conditions Precedent to Obligations of Lessee.............................8
          (a) Documents......................................................................9
          (b) Corporate Documents............................................................9
          (c) Officer's Certificate..........................................................9
          (d) Other Conditions Precedent.....................................................9
     Section 3.03. Post-Registration Opinion.................................................9
</Table>

                                       i
<Page>

<Table>
<S>                                                                                         <C>
ARTICLE 4. LESSEE'S REPRESENTATIONS, WARRANTIES AND COVENANTS................................9
     Section 4.01. Lessee's Representations and Warranties...................................9
     Section 4.02. Certain Covenants of Lessee..............................................12
          (a) Filings and Recordings........................................................12
          (b) Registration..................................................................12
          (c) Information...................................................................14
          (d) Corporate Existence...........................................................15
          (e) Merger and Consolidation......................................................15
          (f) Change of Location............................................................16
          (g) Financial Statements..........................................................16
          (h) Filing of Documents...........................................................16
          (i) Annual Foreign Opinion........................................................17
     Section 4.03. Survival of Representations and Warranties...............................17

ARTICLE 5. OTHER PARTIES' REPRESENTATIONS, WARRANTIES AND
           COVENANTS........................................................................17
     Section 5.01. Representations, Warranties and Covenants of Owner Participant...........17
          (a) Representations and Warranties................................................17
          (b) Lessor's Liens................................................................19
          (c) Assignment of Interests of Owner Participant..................................19
          (d) Actions with Respect to Lessor's Estate, Etc..................................21
          (e) Citizenship...................................................................21
          (f) Guarantees....................................................................22
     Section 5.02. Citizenship..............................................................22
          (a) Generally.....................................................................22
          (b) Owner Trustee.................................................................22
     Section 5.03. Representations, Warranties and Covenants of Trust Company and
                   the Owner Trustee........................................................22
          (a) Representations and Warranties................................................22
          (b) Lessor's Liens................................................................24
          (c) Indemnity for Lessor's Liens..................................................24
          (d) Securities Act................................................................25
          (e) Actions With Respect to Lessor's Estate, Etc..................................25
          (f) Other Business................................................................25
          (g) Performance of Agreements.....................................................25
     Section 5.04. The Lessee's Right of Quiet Enjoyment....................................25
     Section 5.05. Survival of Representations, Warranties and Covenants....................25
     Section 5.06. Compliance with Trust Agreement, Etc.....................................25

ARTICLE 6. TAXES............................................................................26
     Section 6.01. Lessee's Obligation to Pay Taxes.........................................26
          (a) Generally.....................................................................26
          (b) Exceptions....................................................................27
     Section 6.02. After Tax Basis..........................................................29
     Section 6.03. Time of Payment..........................................................29
     Section 6.04. Contests.................................................................30
          (a) Notice of Claim...............................................................30
</Table>

                                       ii
<Page>

<Table>
<S>                                                                                         <C>
          (b) Request for Contest...........................................................30
          (c) Declining to Contest; Settlement..............................................32
          (d) Continuing Claims.............................................................33
          (e) Claims Barred.................................................................33
     Section 6.05. Refunds..................................................................33
     Section 6.06. Reports..................................................................34
     Section 6.07. Survival of Obligations..................................................34
     Section 6.08. Payment of Taxes.........................................................34
     Section 6.09. Reimbursements by Indemnitees Generally..................................35
     Section 6.10. Forms....................................................................35
     Section 6.11. Verification.............................................................35
     Section 6.12. Non-Parties..............................................................35

ARTICLE 7. GENERAL INDEMNITY................................................................35
     Section 7.01. Generally................................................................35
          (a) Indemnity.....................................................................35
          (b) Exceptions....................................................................37
     Section 7.02. Notice and Payment.......................................................38
     Section 7.03. Defense of Claims........................................................39
     Section 7.04. Insured Claims...........................................................39
     Section 7.05. Subrogation..............................................................40
     Section 7.06. Information..............................................................40
     Section 7.07. Survival of Obligations..................................................40
     Section 7.08. Effect of Other Indemnities..............................................40
     Section 7.09. Waiver of Certain Claims.................................................40
     Section 7.10. Certain Limitations......................................................41

ARTICLE 8. TRANSACTION COSTS................................................................41
     Section 8.01. Transaction Costs and Other Costs........................................41
          (a) Transaction Costs.............................................................41
          (b) Continuing Expenses...........................................................41
          (c) Amendments and Supplements....................................................41

ARTICLE 9. SUCCESSOR OWNER TRUSTEE..........................................................42
     Section 9.01. Appointment of Successor Owner Trustee...................................42
          (a) Resignation and Removal.......................................................42
          (b) Conditions to Appointment.....................................................42

ARTICLE 10. LIABILITIES OF THE OWNER PARTICIPANT............................................43
     Section 10.01. Liabilities of the Owner Participant....................................43

ARTICLE 11. OTHER DOCUMENTS.................................................................43
     Section 11.01. Consent of Lessee to Other Documents....................................43
     Section 11.02. Consent of Owner Participant to Other Documents.........................43

ARTICLE 12. NOTICES.........................................................................43
     Section 12.01. Notices.................................................................43
</Table>

                                      iii
<Page>

<Table>
<S>                                                                                         <C>
ARTICLE 13. MISCELLANEOUS...................................................................44
     Section 13.01. Counterparts............................................................44
     Section 13.02. No Oral Modifications...................................................44
     Section 13.03. Captions................................................................44
     Section 13.04. Successors and Assigns..................................................44
     Section 13.05. Concerning the Owner Trustee............................................44
     Section 13.06. Severability............................................................45
     Section 13.07. GOVERNING LAW...........................................................45
     Section 13.08. Section 1110 Compliance.................................................46
     Section 13.09. Assignment..............................................................46
</Table>

    Definitions

Exhibit A-1   Form of Opinion of General Counsel of Lessee

Exhibit A-2   Form of Opinion of Fulbright & Jaworski L.L.P.

Exhibit A-3   Form of Opinion of Ray, Quinney & Nebeker, as special counsel
              to the Owner Trustee

Exhibit A-4   Form of Opinion of Daugherty, Fowler, Peregrin & Haught, a
              Professional Corporation

Exhibit A-5   Form of Opinion of Holland & Knight LLP, special counsel for the
              Owner Participant

Exhibit A-6   Form of Opinion of General Counsel to the Owner Participant

Exhibit B-1   Form of Assignment and Assumption Agreement

Exhibit B-2   Form of Owner Participant Guaranty

Exhibit B-3   Form of Opinion of counsel to the Owner Participant in respect of
              the Assignment and Assumption Agreement

                                       iv
<Page>

NOTE TO EXHIBIT 10.19

The 15 additional Participation Agreements are substantially identical in all
material respects to the filed Participation Agreement except as follows:

<Table>
<Caption>

------------------------------------- ----------------------------------- ------------------------------------
            TAIL NUMBER                          CLOSING DATE                     OWNER-PARTICIPANT

------------------------------------- ----------------------------------- ------------------------------------
<S>                                   <C>                                 <C>
N265SK                                           June, 2000               General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N267SK                                           June, 2000               General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N268SK                                           June, 2000               General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N269SK                                          August, 2000              General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N270SK                                          August, 2000              General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N271SK                                         September, 2000            General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N272SK                                         September, 2000            General Electric Capital Corporation
------------------------------------- ----------------------------------- ------------------------------------
N273SK                                          November, 2000            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N274SK                                          December, 2000            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N275SK                                          December, 2000            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N276SK                                          December, 2000            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N277SK                                          December, 2000            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N278SK                                          February, 2001            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N279SK                                           January, 2001            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------
N280SK                                          February, 2001            Aircraft Services Corp.
------------------------------------- ----------------------------------- ------------------------------------

------------------------------------- ----------------------------------- ------------------------------------

------------------------------------- ----------------------------------- ------------------------------------
</Table><Page>

                                                                   Exhibit 10.32

                                                                  EXECUTION COPY

================================================================================

                      AIRCRAFT PURCHASE AGREEMENT [N288SK]

                                      among

                                 SOLITAIR CORP.
                                    as Seller

                            CHAUTAUQUA AIRLINES, INC.
                                    as Lessee

                           MITSUI & CO. (U.S.A.), INC.
                                 as Beneficiary

                                       and

                WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,
           not in its individual capacity but solely as Owner Trustee
                                as Owner Trustee

                            dated as of June 5, 2001

                           One (1) EMB-145LR aircraft
                       manufacturer's serial number 145461
                     United States registration mark N288SK

================================================================================

------------
Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 of the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                            PAGE

<S>               <C>                                                         <C>
Section 1         SUBJECT MATTER...............................................2

Section 2         PRICE; TAXES; DELIVERY LOCATION..............................2

Section 3         TERMS OF PAYMENT................................. .... ......2

Section 4         RISK OF LOSS.................................................2

Section 5         DELIVERY OF AIRCRAFT.........................................3

Section 6         TERMS OF SALE................................................3

Section 7         DELIVERY DATE................................................3

Section 8         CONDITIONS PRECEDENT.........................................4

Section 9         Representations and Warranties...............................6

Section 10        FURTHER COVENANTS............................................9

Section 11        CONCERNING OWNER TRUSTEE....................................12

Section 12        MISCELLANEOUS...............................................12
</Table>

<Page>

     This AIRCRAFT PURCHASE AGREEMENT [N288SK] ("AGREEMENT"), made as of June 5,
2001, by and among SOLITAIR CORP., a New York corporation ("SELLER"), MITSUI &
CO. (U.S.A.), INC., a New York corporation ("BENEFICIARY"), CHAUTAUQUA AIRLINES,
INC., a New York corporation ("LESSEE"), and WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner
Trustee under a Trust Agreement dated as of June 5, 2001, between itself and
Beneficiary (such entity, in its individual capacity being herein referred to as
"WFB" and, in its capacity as Owner Trustee under such Trust Agreement, as
"OWNER TRUSTEE");

                              W I T N E S S E T H:

     WHEREAS, Seller is party to the EMB-145 Purchase Agreement Number
GCT-025/98, dated June 17, 1998 (the "MANUFACTURER PURCHASE AGREEMENT"), between
the Seller and EMBRAER - Empresa Brasileira de Aeronautica S.A., a Brazilian
company (the "MANUFACTURER");

     WHEREAS, Seller desires to assign its right, title and interest in and to
the Manufacturer Purchase Agreement, to the extent that the same relates to the
Aircraft (as hereinafter defined) and the purchase thereof, to Aero Ltd., a
Cayman Islands corporation ("AERO"), pursuant to and in accordance with the
terms and conditions of Purchase Agreement Assignment No. 1 [N288SK], dated the
date hereof ("ASSIGNMENT NO. 1"), between Seller and Aero and consented to by
the Manufacturer, in the form attached as Exhibit C-1;

     WHEREAS, Beneficiary desires that Owner Trustee purchase and acquire title
to, and Seller is willing to cause Aero to sell and transfer title to Owner
Trustee, in accordance with the terms and conditions hereinafter set forth, the
Aircraft;

     WHEREAS, as a condition to Seller's assignment of its rights in the
Manufacturer Purchase Agreement pursuant to Assignment No. 1, Aero will assign
its right, title and interest in and to [certain rights of Aero under] the
Manufacturer Purchase Agreement, as assigned by Assignment No. 1, to Owner
Trustee, pursuant to and in accordance with the terms of Purchase Agreement
Assignment No. 2 [N288SK], dated the date hereof ("ASSIGNMENT NO. 2"), among
Aero, Owner Trustee and Lessee and consented to by the Manufacturer, in the form
attached as Exhibit C-2;

     WHEREAS, Beneficiary desires that Owner Trustee be provided the benefit of,
and Seller is willing to cause Aero to transfer to Owner Trustee, the warranties
relating to the Airframe specified in the Assignment No. 2 and the warranties
relating to the Engines specified in the Engine Warranty Assignment and Consent,
the form of which is attached hereto as Exhibit D; and

     WHEREAS, simultaneously with the sale of the Aircraft to Owner Trustee,
Beneficiary shall cause Owner Trustee to, and Owner Trustee shall, lease the
Aircraft to Chautauqua Airlines, Inc., a New York corporation (the "LESSEE"),
pursuant to Aircraft Lease Agreement [N288SK] dated as of the date hereof
between Owner Trustee and Lessee (the "LEASE"); and

     WHEREAS, capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed thereto in the Lease and shall be interpreted
in accordance with the rules of construction set forth in Section 1.03 of the
Lease;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto (individually a "PARTY" and
collectively the "PARTIES") agree as follows:

<Page>

     Section 1 SUBJECT MATTER.

     In accordance with and subject to the terms and conditions hereinafter set
forth, on the Delivery Date (as defined in Section 4), Seller hereby agrees to
cause Aero to sell and transfer title to Owner Trustee, as designee of
Beneficiary, and Beneficiary hereby agrees to cause Owner Trustee to purchase
and acquire title from Aero to, one (1) Embraer EMB-145LR aircraft bearing
manufacturer's serial number 145461, together with the Engines and appurtenances
installed thereon and therein and delivered new from the Manufacturer, as more
particularly described and defined in the form of Bill of Sale attached hereto
as EXHIBIT A (the "AIRCRAFT"), in accordance with the terms and conditions of
this Agreement, and

          (b) Owner Trustee hereby agrees, at the direction of Beneficiary, to
purchase and acquire title to the Aircraft from Aero in accordance with the
terms and conditions hereof and to lease the Aircraft to Lessee in accordance
with the terms and conditions of the Lease.

     Section 2 PRICE; TAXES; DELIVERY LOCATION.

          (a) PRICE. The purchase price of the Aircraft shall be equal to the
amount payable by Seller for the Aircraft under Article 03 of the Manufacturer
Purchase Agreement, as evidenced by an invoice for the Aircraft issued by Aero,
DECREASED by any rebate payable by the Manufacturer and Aero in respect of
the Aircraft that is credited to the Beneficiary on or before the Delivery
Date and INCREASED by the amount of $500,000 payable directly to Solitair, and
the Seller and the Beneficiary agree that such amount as so decreased and
increased is equal to [*], which shall be the purchase price of the Aircraft
(the "AIRCRAFT PRICE") payable by the Beneficiary to Seller as consideration
for the sale and transfer of the Aircraft to the Owner Trustee, as designee
of the Beneficiary.

          (b) TAXES. Seller, Beneficiary and Owner Trustee shall cooperate and
take such reasonable measures as may be requested by Lessee to ensure that the
sale of the Aircraft is arranged in such a manner as to minimize or avoid Taxes
thereon, which shall be indemnified by Lessee pursuant to the Lease.

          (c) DELIVERY LOCATION. Seller shall cause Aero to deliver the Aircraft
to Owner Trustee on the Delivery Date, in accordance with the terms hereof, in
Sao Jose dos Campos, Sao Paulo, Brazil or in such other location and
jurisdiction designated by Seller and Lessee which they determine to be
acceptable for taxation purposes and that is reasonably acceptable to
Beneficiary and Owner Trustee.

     Section 3 TERMS OF PAYMENT.
          (a) TIME OF PAYMENT. Subject to the satisfaction or waiver of the
conditions set forth in Section 8(a), Beneficiary shall pay, or cause to be
paid, the Aircraft Price to Seller on the Delivery Date.

          (b) U.S. DOLLARS; TRANSFER. All payments due to Seller hereunder shall
be effected in United States dollars in immediately available funds without any
set-off, counterclaim or deduction of whatsoever nature by wire transfer to an
account designated by the Seller. Payments will be deemed to have been made when
such amounts have been credited and confirmed as immediately available funds to
such designated account.

     Section 4 RISK OF LOSS.

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* Confidential

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     Delivery of the Bills of Sale to Owner Trustee and of the Acceptance
Certificate to Seller and Aero pursuant to Section 5 shall conclusively evidence
the sale of the Aircraft to Owner Trustee by Aero and of Owner Trustee's
acceptance of the Aircraft, and risk of loss of or damage to the Aircraft shall
pass from Seller and Aero to Owner Trustee at the time stated in the Acceptance
Certificate as being the time at which the transfer took place (the "DELIVERY
TIME"). The date on which the Delivery Time occurs is herein referred to as the
"DELIVERY DATE."

     Section 5 DELIVERY OF AIRCRAFT.

     Immediately upon receipt by Seller of the Aircraft Price, and subject to
the satisfaction or waiver of the conditions set forth in Section 8(b), Seller
shall cause Aero to deliver to Owner Trustee a duly executed original bill of
sale covering the Aircraft dated as of the Delivery Date, substantially in the
form of EXHIBIT A (the "WARRANTY BILL OF SALE") and a duly executed bill of sale
covering the Aircraft dated as of the Delivery Date on FAA AC Form 8050-2 (the
"FAA BILL OF SALE," and together with the Warranty Bill of Sale,, the "BILLS OF
SALE"), and immediately upon receipt by it of the Bills of Sale, Beneficiary
shall cause Owner Trustee to, and Owner Trustee shall, execute and deliver to
Aero and Seller an acceptance certificate substantially in the form of EXHIBIT B
(the "ACCEPTANCE CERTIFICATE"), covering the Aircraft and dated the Delivery
Date. Seller shall ensure that the FAA Bill of Sale is physically at the offices
of Lytle Soule & Curlee ("LSC") in Oklahoma City and by providing one or more
attorneys at LSC with such authorization as may be necessary in order to permit
such firm to present the FAA Bill of Sale at the Delivery Time to the FAA for
immediate recordation together with the other documents and instruments referred
to in Section 8(a)(v).

     Section 6 TERMS OF SALE.

     Seller hereby warrants and undertakes to Beneficiary that Seller shall
cause Aero to transfer to Owner Trustee all of its right, title and interest in
and to the Aircraft, free and clear of any and all Liens. EXCEPT FOR THE
WARRANTY OF TITLE PROVIDED BY AERO IN THE WARRANTY BILL OF SALE, THE AIRCRAFT IS
BEING SOLD AND DELIVERED TO OWNER TRUSTEE AND PURCHASED AND ACCEPTED BY OWNER
TRUSTEE "AS IS" AND "WHERE IS." SELLER MAKES NO, AND EXPRESSLY AND SPECIFICALLY
DISCLAIMS (AND OWNER TRUSTEE AND BENEFICIARY EACH EXPRESSLY AND SPECIFICALLY
WAIVES AND DISCLAIMS) ANY, REPRESENTATION, GUARANTEE, COVENANT, CONDITION OR
WARRANTY OF ANY KIND RELATING TO THE AIRCRAFT, INCLUDING BUT NOT LIMITED TO THE
AIRWORTHINESS AND/OR CONDITION OF THE AIRCRAFT, WHETHER EXPRESS OR IMPLIED, ORAL
OR WRITTEN, ARISING BY LAW OR OTHERWISE, IN CONTRACT OR IN TORT, INCLUDING
WITHOUT LIMITATION, WARRANTIES WITH RESPECT TO THE AIRCRAFT'S AIRWORTHINESS,
MERCHANTABILITY, QUALITY, FITNESS FOR ANY PARTICULAR USE, PURPOSE, DESIGN,
CONDITION, VALUE, QUALITY, DURABILITY, OR AS TO THE ABSENCE OF LATENT, INHERENT
OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE) OR AS TO THE ABSENCE OF ANY
INFRINGEMENT OF ANY PATENT, DESIGN, COPYRIGHT OR OTHER PROPRIETARY RIGHT OR
THOSE ARISING BY STATUTE OR OTHERWISE IN LAW FROM THE COURSE OF DEALING OR USAGE
OF TRADE.

     Section 7 DELIVERY DATE.

     The Delivery Date for the Aircraft is, as of the date hereof, scheduled to
occur on or about June 29, 2001 (the "SCHEDULED DELIVERY DATE"). The exact
Delivery Date will be designated by Seller, and Seller will give notice thereof
to Beneficiary, at least three (3) Business Days in advance thereof, PROVIDED
that if Seller fails to give to Beneficiary notice required by this sentence at
least three (3) Business Days prior to August 31, 2001, Beneficiary may, at its
option, by written notice to Seller,

                                       3
<Page>

terminate its commitment hereunder to purchase and lease the Aircraft with no
liability whatsoever to Seller or Lessee or any other Person.

     Section 8 CONDITIONS PRECEDENT.

          (a) BENEFICIARY CONDITIONS. The obligation of Beneficiary and Owner
Trustee to purchase the Aircraft from Aero at the Delivery Time is subject to
the fulfillment to the reasonable satisfaction of Beneficiary and Owner Trustee,
or waiver by Beneficiary and Owner Trustee, of the following conditions
precedent on or prior to the Delivery Time:

          (i) all of the conditions precedent to obligations of Owner Trustee as
lessor under the Lease shall have been fulfilled or waived in accordance with
the terms thereof;

          (ii) the Owner Trustee shall have received (1) Assignment No. 1 duly
executed and delivered by Seller and Aero and the Consent and Agreement thereto
duly executed and delivered by Manufacturer; (2) Assignment No. 2 duly executed
and delivered by Aero and the Consent and Agreement thereto duly executed and
delivered by Manufacturer; and (3) the Engine Warranty Assignment and Consent
duly executed and delivered by Seller, Lessee and the Engine Manufacturer;

          (iii) all representations and warranties of Seller set forth herein or
in any of the documents delivered hereunder are true and accurate on and as of
the Delivery Date as though made on and as of the Delivery Date (unless any such
representation and warranty shall have been made with reference to a specified
date, in which case such representation and warranty shall be true and accurate
as of such specified date);

          (iv) the Aircraft shall be free and clear of Liens and Beneficiary and
Owner Trustee shall have received a memorandum of Daugherty, Fowler, Peregrin &
Haught ("SPECIAL FAA COUNSEL"), stating that there are no Liens of record noted
in the records of the United States Federal Aviation Administration;

          (v) Manufacturer shall have executed and delivered the Residual Value
Guarantee and the Deficiency Guarantee and there shall exist no condition
precedent to any such agreement becoming effective pursuant to the terms thereof
other than Delivery of the Aircraft;

          (vi) Seller shall have caused Aero to have delivered an original
executed FAA Bill of Sale to LSC to be held in escrow pending receipt by the
Seller of the Aircraft Price;

          (vii) Lessee shall have delivered the Lease and Lease Supplement No. 1
thereto, each duly executed and delivered by Lessee, to Special FAA Counsel to
be held in escrow pending release thereof by Lessee and Owner Trustee at the
Delivery Time in accordance with the terms of the Lease;

          (viii) no change shall have occurred subsequent to the execution of
this Agreement and prior to the Delivery Date in any applicable Law or in the
interpretation thereof that, in Beneficiary's reasonable opinion, would make it
illegal for Beneficiary or Owner Trustee, or both, to perform any of their
respective obligations under any of the Operative Documents;

          (ix) the Beneficiary shall have received a purchase agreement and
lease in substantially the same form as this Agreement and the Lease for each of
two other Embraer EMB

                                       4
<Page>

     145LR aircraft (the "OTHER PURCHASE AGREEMENTS AND OTHER LEASES") duly
     executed and delivered by Seller and Lessee;

          (x) the Lessee shall have paid to the Owner Trustee the initial
     payment of Base Rent due under the Lease on the Delivery Date; and

          (xi) no Default or Event of Default shall have occurred and be
     continuing under (and as defined in) any Other Lease.

     (b) SELLER CONDITIONS. The obligation of Seller to sell the Aircraft to
Owner Trustee at the Delivery Time is subject to the fulfillment to the
reasonable satisfaction of Seller, or waiver by Seller, of the following
conditions precedent:

          (i) the Seller shall have received the Aircraft Price;

          (ii) the Seller shall have received Assignment No. 1 duly executed and
     delivered by Aero and the Consent and Agreement thereto duly executed and
     delivered by Manufacturer;

          (iii) all of the conditions precedent to obligations of Lessee under
     the Lease shall have been fulfilled or waived in accordance with the terms
     thereof;

          (iv) all representations and warranties of Beneficiary, WFB and Owner
     Trustee set forth herein or in any of the documents delivered hereunder or
     under the Lease are true and accurate on and as of the Delivery Date as
     though made on and as of the Delivery Date (unless any such representation
     and warranty shall have been made with reference to a specified date, in
     which case such representation and warranty shall be true and accurate as
     of such specified date);

          (v) the Seller and Aero shall have received the Acceptance Certificate
     duly executed and delivered by Owner Trustee;

          (vi) Owner Trustee shall have executed and delivered an original
     application for registration of the Aircraft on FAA AC Form 8050-1 to
     Special FAA Counsel, with pink copy thereof delivered to the Lessee to be
     placed on board the Aircraft at the Delivery Time, each to be held in
     escrow pending a direction by Seller to LSC to release the Bills of Sale
     from escrow;

          (vii) Owner Trustee shall have delivered the Lease and the Trust
     Agreement, duly executed and delivered by Owner Trustee, to Special FAA
     Counsel to be held in escrow pending release thereof by Lessee and Owner
     Trustee at the Delivery Time in accordance with the terms of the Lease or
     the Trust Agreement, as the case may be;

          (viii) no change shall have occurred subsequent to the execution of
     this Agreement and prior to the Delivery Date in any applicable Law or in
     the interpretation thereof that, in Seller's reasonable opinion, would make
     it illegal for Seller to perform any of its obligations under any of the
     Operative Documents to which it is a party;

          (ix) Beneficiary shall have caused (1) an application for registration
     of the Aircraft on FAA Form 8050-1 with the original signature of Owner
     Trustee attached thereto and (2) a copy of the Lease and the Lease
     Supplement No. 1 thereto and the Trust Agreement with the original
     signature of Owner Trustee attached thereto to be delivered to Special FAA
     Counsel to be held in escrow pending a direction by Seller to Special FAA
     Counsel to release the Bills of Sale from escrow; and

                                       5
<Page>

          (x) the Lessee shall have received the Other Purchase Agreements and
     Other Leases, duly executed and delivered by Beneficiary and Owner Trustee.

     Section 9 Representations and Warranties.

          (a) SELLER'S REPRESENTATIONS AND WARRANTIES. Seller hereby represents
and warrants to the other Parties hereto, as of its execution of this Agreement
and as of the Delivery Date, that:

          (i) Seller is a corporation duly organized and validly existing under
     the laws of the State of Delaware and has corporate power and authority to
     carry on its business as presently conducted, to own its properties and to
     execute and deliver, and to perform all of its obligations under this
     Agreement, Assignment No. 1 and the Engine Warranty Assignment and Consent
     (collectively, the "SELLER DOCUMENTS");

          (ii) The execution, delivery and performance by Seller of the Seller
     Documents have been duly authorized by all necessary corporate action, do
     not require any stockholder approval or approval of any trustee or holder
     of any indebtedness or obligations of Seller, and do not and will not
     contravene the certificate of incorporation, by-laws or other charter
     documents of Seller or any law, governmental rule, regulation, judgment or
     order binding on Seller or contravene or result in a breach of, or
     constitute a default under any indenture, mortgage, contract or other
     agreement to which Seller is a party or by which Seller or its properties
     may be bound or affected, except for any such conflicts, breaches or
     defaults which would not, individually or in the aggregate, have a material
     adverse effect on the ability of Seller to perform its obligations under
     the Seller Documents;

          (iii) Neither the execution and delivery by Seller of, nor the
     performance by Seller of its obligations under, any of the Seller Documents
     requires the consent or approval of, or the giving of notice to, or the
     registration with, or the taking of any other action in respect of any
     governmental entity having jurisdiction over Seller or any of its
     affiliates or properties, except for the filing with the FAA of the FAA
     Bill of Sale and such other registrations, applications and recordings
     referred to in the opinion of Special FAA Counsel to be rendered by Special
     FAA Counsel on the Delivery Date;

          (iv) Each of the Seller Documents has been duly executed and delivered
     by Seller and each of the Seller Documents constitutes the legal, valid and
     binding obligations of Seller, enforceable in accordance with their
     respective terms, except as enforcement thereof may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or other
     similar laws affecting the enforcement of creditors' rights generally and
     by such principles of equity (regardless of whether such enforceability is
     considered in a proceeding in equity or at law) as a court having
     jurisdiction may impose;

          (v) There are no pending or, to the best of Seller's knowledge,
     threatened actions or proceedings before any court, arbitrator or
     administrative agency that, if adversely determined, would have a material
     adverse effect on Seller's ability to perform its obligations under the
     Seller Documents;

          (vi) Seller is not in default in any material respect under the
     Manufacturer Purchase Agreement with respect to the Aircraft or the
     aircraft subject to the Other Purchase Agreements and Other Leases; and

                                       6
<Page>

          (vii) as of the Delivery Date, the Aircraft shall not have been
     delivered by the Manufacturer to Aero more than fourteen (14) days prior to
     the Delivery Date.

          (b) BENEFICIARY'S REPRESENTATIONS AND WARRANTIES. Beneficiary hereby
represents and warrants to the other Parties hereto, as of its execution of this
Agreement and as of the Delivery Date, that:

          (i) Beneficiary is a corporation duly organized and validly existing
     under the laws of the State of New York and has corporate power and
     authority to carry on its business as presently conducted, to own its
     properties and to execute and deliver, and to perform all of its
     obligations under this Agreement and the other Operative Documents to which
     it is a party (collectively, the "BENEFICIARY DOCUMENTS");

          (ii) The execution, delivery and performance by Beneficiary of the
     Beneficiary Documents have been duly authorized by all necessary corporate
     action, do not require any stockholder approval or approval of any trustee
     or holder of any indebtedness or obligations of Beneficiary, and do not and
     will not contravene the articles of incorporation or by-laws of Beneficiary
     or any current law, governmental rule, regulation, judgment or order
     binding on Beneficiary or contravene or result in a breach of, or
     constitute a default under any indenture, mortgage, contract or other
     agreement to which Beneficiary is a party or by which Beneficiary or its
     properties may be bound or affected, except for any such conflicts,
     breaches or defaults which would not, individually or in the aggregate,
     have a material adverse effect on the ability of Beneficiary to perform its
     obligations under the Beneficiary Documents;

          (iii) Neither the execution and delivery by Beneficiary of, nor the
     performance by Beneficiary of its obligations under, the Beneficiary
     Documents requires the consent or approval of, or the giving of notice to,
     or the registration with, or the taking of any other action in respect of,
     any governmental entity having jurisdiction over Beneficiary or any of its
     affiliates or properties, except for the filing with the FAA of the Trust
     Agreement and such other registrations, applications and recordings
     referred to in the opinion of Special FAA Counsel to be rendered by Special
     FAA Counsel on the Delivery Date;

          (iv) Each of the Beneficiary Documents has been duly executed and
     delivered by Beneficiary and each of the Beneficiary Documents constitutes
     the legal, valid and binding obligations of Beneficiary, enforceable in
     accordance with their respective terms, except as enforcement thereof may
     be limited by applicable bankruptcy, insolvency, reorganization, moratorium
     or other similar laws affecting the enforcement of creditors' rights
     generally and by such principles of equity (regardless of whether such
     enforceability is considered in a proceeding in equity or at law) as a
     court having jurisdiction may impose;

          (v) There are no pending, to the best of Beneficiary's knowledge, or
     threatened actions or proceedings before any court, arbitrator or
     administrative agency that, if adversely determined, would have a material
     adverse effect on Beneficiary's ability to perform its obligations under
     the Beneficiary Documents;

          (vi) The funds to be used by the Beneficiary to acquire its interest
     under this Agreement and the other Operative Documents do not constitute
     assets (within the meaning of ERISA and any applicable rules and
     regulations) of an ERISA Plan;

          (vii) The Beneficiary acknowledges that the Residual Value Guarantee
     and the Deficiency Guarantee (collectively, the "GUARANTEES") contain
     confidentiality provisions that

                                       7
<Page>

     prohibit the Beneficiary and Manufacturer from disclosing the Guarantees
     and the terms thereof to the Lessee, Seller and Owner Trustee without the
     consent of the other party, that the Beneficiary has made no such
     disclosure other than in clauses (vii), (viii) and (ix) of this Section
     9(b) (which disclosure the Manufacturer has consented to), that the
     Manufacturer has not sought the consent of the Beneficiary to disclose any
     terms of the Guarantees to the Lessee, Seller and Owner Trustee and, to the
     knowledge of the Beneficiary, the Manufacturer has not made any such
     disclosure;

          (viii) The Beneficiary has not granted any right to the Manufacturer
     under the Guarantees which is inconsistent with the rights of the Lessee
     under the Operative Documents; and

          (ix) The amount guaranteed by the Manufacturer under the Residual
     Value Guarantee is the Guaranteed Amount.

          (x) The Beneficiary has not entered into any agreements with the
     Manufacturer or any Person with respect to the transactions contemplated by
     this Agreement and the Operative Documents other than the Beneficiary
     Documents and the Guarantees.

          (c) OWNER TRUSTEE'S REPRESENTATIONS AND WARRANTIES. WFB, in its
individual capacity, and Owner Trustee, each as to itself only, hereby
represents and warrants to each of the other Parties hereto that:

          (i) WFB is a national banking association duly organized and existing
     under the laws of the United States of America and has the power and
     authority to carry on its business as presently conducted and to perform
     its respective obligations as lessor under this Agreement, the Trust
     Agreement, the Lease, Assignment No. 2, the Engine Warranty Assignment and
     Consent, the Acceptance Certificate and the application for registration of
     the Aircraft on FAA AC Form 8050-1 and the other Operative Documents to
     which it is a party (collectively, the "OWNER TRUSTEE DOCUMENTS"), whether
     in its individual capacity or as Owner Trustee;

          (ii) The execution, delivery and performance by Owner Trustee of the
     Owner Trustee Documents have been duly authorized by all necessary trust
     action on the part of WFB, do not require any approval of the shareholders
     of WFB (or if such approval is required, such approval has been obtained)
     or approval of any trustee or holder of any indebtedness or obligations of
     WFB or Owner Trustee, and do not and will not contravene the charter or
     by-laws of WFB or any current law, governmental rule, regulation, judgment
     or order binding on WFB or Owner Trustee or contravene or result in a
     breach of, or constitute a default under any indenture, mortgage, contract
     or other agreement to which WFB or Owner Trustee is a party or by which WFB
     or Owner Trustee or the property of either of them may be bound or
     affected;

          (iii) Neither the execution and delivery by Owner Trustee of, nor the
     performance by WFB or Owner Trustee of their respective obligations under,
     the Owner Trustee Documents requires the consent or approval of, or the
     giving of notice to, or the registration with, or the taking of any other
     action in respect of, any governmental entity having jurisdiction over WFB,
     Owner Trustee or any of their respective affiliates or properties, except
     for the filing with the FAA of the Trust Agreement, the application for
     registration of the Aircraft on FAA AC Form 8050-1 and such other
     registrations, applications and recordings referred to in the opinion of
     Special FAA Counsel to be rendered by Special FAA Counsel on the Delivery
     Date;

          (iv) Each of the Owner Trustee Documents has been duly executed and
     delivered by Owner Trustee and each of the Owner Trustee Documents
     constitutes the legal, valid and binding

                                       8
<Page>

     obligations of Owner Trustee, enforceable in accordance with their
     respective terms, except as enforcement thereof may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or other
     similar laws affecting the enforcement of creditors' rights generally and
     by such principles of equity (regardless of whether such enforceability is
     considered in a proceeding in equity or at law) as a court having
     jurisdiction may impose;

          (v) There are no pending, to the best knowledge of WFB or Owner
     Trustee, or threatened actions or proceedings before any court, arbitrator
     or administrative agency that, if adversely determined, would have a
     material adverse effect on Owner Trustee's ability to perform its
     obligations under the Owner Trustee Documents.

          (d) LESSEE'S REPRESENTATIONS AND WARRANTIES. Lessee hereby represents
and warrants to each of the other Parties hereto that that each of its
warranties and representations contained in Section 5.01 of the Lease are true
and accurate as of its execution of this Agreement and as of the Delivery Date
(unless any such representation and warranty shall have been made with reference
to a specified date, in which case such representation and warranty shall be
true and accurate as of such specified date).

          (e) SURVIVAL. The representations and warranties of the Parties
provided for in this Section 9 and in any other Operative Documents shall
survive the Delivery of the Aircraft and the expiration or other termination of
this Agreement and the other Operative Documents.

     Section 10 FURTHER COVENANTS.

          (a) FURTHER ASSURANCES. Each Party will promptly and duly execute and
deliver, or cause to be executed or delivered, to any other Party hereto (at
Seller's sole cost and expense except as may be otherwise expressly provided
herein) all and every document, agreements, certificates, instruments and any
other documents as the requesting Party or its counsel may reasonably request in
order to effect, perfect or confirm the consummation of the transactions
contemplated by this Agreement, the other Operative Documents, the agreements,
instruments and documents delivered or to be delivered hereunder or thereunder,
the taking of all necessary proceedings in connection herewith or therewith and
compliance with the conditions here or therein set forth.

          (b) BENEFICIARY COVENANTS.

          (i) QUIET ENJOYMENT. Beneficiary covenants that so long as no Event of
Default shall have occurred and be continuing, it will not, and it will not
permit any mortgagee or any other Person acting by or through Beneficiary or
Lessor (including any Financing Party) to take or cause or permit to be taken
any action contrary to Lessee's right to the quiet use and enjoyment of the
Aircraft during the Term, in accordance with the terms of the Lease.

          (ii) LESSOR'S LIENS. The Beneficiary agrees with and for the benefit
of the Lessee and the Owner Trustee that the Beneficiary will, at its own cost
and expense, take such action as may be necessary to duly discharge and satisfy
in full, promptly after the same first becomes known to the Beneficiary, any
Lessor's Lien (other than any Lien arising pursuant to a Financing) attributable
to the Beneficiary (or an Affiliate thereof), PROVIDED, HOWEVER, that the
Beneficiary shall not be required to discharge or satisfy such Lessor's Lien
which is being contested by the Beneficiary in good faith and by appropriate
proceedings so long as such proceedings do not involve any material risk of the
sale, forfeiture or loss of the Aircraft or the Trust Estate or any interest in
any thereof.

                                       9
<Page>

          (iii) AIRCRAFT REGISTRATION. Beneficiary agrees that if at any time on
or after the Delivery Date the Aircraft shall or would become ineligible for
registration in the name of the Owner Trustee at the FAA (such eligibility to be
determined without regard to any provision of law that permits the U.S.
registration of the Aircraft by restricting where it is based or used), then the
Beneficiary shall give notice thereof to the Lessee and the Owner Trustee and
shall (at its own expense and without any reimbursement or indemnification from
the Lessee) within a reasonable period after its obtaining actual knowledge that
the Aircraft is ineligible for its then-current U.S. registration (and in any
event within a period of 10 days thereafter) (x) effect a voting trust or
similar arrangement reasonably acceptable to Lessee that permits the continued
registration of the Aircraft in the name of the Owner Trustee at the FAA or (y)
transfer in accordance with the terms of the Agreement, the Lease and the Trust
Agreement all its rights, title and interest in and to the Trust Agreement and
the other Operative Documents. Each Party hereto agrees, upon the request and at
the sole expense of the Beneficiary, to cooperate with the Beneficiary in
complying with its obligations under the provisions of this Section 10(b)(i),
but without any obligation on the part of such other Party to take any action
believed by it in good faith to be unreasonably burdensome to such Party or
materially adverse to its business interests.

          (iv) COMPLIANCE WITH TRUST AGREEMENT. Beneficiary further agrees with
the Lessee that so long as the Lease and the Trust Agreement are in effect it
will (I) comply with all of the terms of the Trust Agreement applicable to it
noncompliance with which would materially adversely affect the Lessee and (II)
not take any action, or cause any action to be taken, to amend, modify or
supplement any other provision of the Trust Agreement in a manner that would
materially adversely affect the Seller without the prior written consent of the
Lessee. Notwithstanding anything else to the contrary in the Trust Agreement, so
long as the Lease remains in effect, the Beneficiary agrees not to terminate or
revoke the trust created by the Trust Agreement without the consent of the
Lessee.

          (v) ASSIGNMENT OF INTERESTS IN TRUST ESTATE. Beneficiary may assign
all of, or an undivided interest in, its rights and obligations hereunder, under
the other Operative Documents, and in the Trust Estate, to any Permitted
Transferee (PROVIDED that there shall be no more than two holders of the
interests in the Trust Estate at any time), upon

          (A) the execution and delivery by such Permitted Transferee of an
              agreement substantially in the form of Exhibit E-1 hereto or in
              such other form that is reasonably satisfactory in form and
              substance to Lessee and that includes the covenants,
              representations and warranties of the Permitted Transferee that
              are in the form of agreement attached as Exhibit E-1 and in which
              the Permitted Transferee unconditionally and irrevocably assumes
              the duties and obligations of the transferring Beneficiary under
              the Operative Documents with respect to the interest being
              transferred;

          (B) if and to the extent required by the definition of Permitted
              Transferee, the execution and delivery to Lessee and Owner Trustee
              of a Beneficiary Guaranty; and

          (C) delivery to the Lessee of an opinion of counsel (reasonably
              satisfactory to Lessee, which may be in-house counsel), in form
              and substance reasonably satisfactory to Lessee with respect to
              the due authorization, execution, delivery and enforceability of
              such agreement (and the Beneficiary Guaranty, if any) and the
              absence of any conflicts with or violations of any applicable Law
              (including any securities laws in respect of such transfer).

Upon (but only upon) any such transfer in accordance with the foregoing, the
duties and obligations of the Beneficiary arising from and after the date of
such transfer hereunder and under the other Operative

                                       10
<Page>

Documents shall terminate to the extent of the interest being transferred to and
assumed by the Permitted Transferee, who shall become a Beneficiary hereunder to
such extent. No such assignment shall increase the expenses or indemnity
obligations of Lessee hereunder or under any Operative Document (including,
without limitation, under Article XIV or Article XV of the Lease or under the
Tax Indemnity Agreement) or shall impair the registration of the Aircraft with
the FAA or the eligibility of the Owner Trustee to qualify as registered owner
of the Aircraft with the FAA, and the transferring Beneficiary shall provide
such information as Lessee may reasonably request to determine whether the
requirements of this sentence are satisfied. No transfer by a Beneficiary under
this Section 10(b)(v) shall release such Beneficiary from any obligations to
other Parties hereto theretofore accrued or in respect of acts or omissions
theretofore occurring or with respect to any interest not being transferred. The
transferring Beneficiary shall be responsible for all costs and expenses of any
transfer pursuant to this Section 10(b)(v) (including, but not limited to,
reasonable fees and expenses of counsel for Lessee and Owner Trustee). A
"Permitted Transferee" (1) shall be (x) a bank, savings institution, finance
company, leasing company or trust company, national banking association acting
for its own account or in a fiduciary capacity as trustee or agent under any
pension, retirement, profit sharing or similar trust or fund, insurance company,
financial institution, fraternal benefit society or a corporation acting for its
own account having a combined capital and surplus (or, if applicable,
consolidated net worth or its equivalent) of not less than $25,000,000, (y) a
subsidiary of any Person described in clause (x) where such Person provides a
guaranty of the obligations of such subsidiary substantially in the form
attached as Exhibit E-2 or in such other form that is reasonably satisfactory in
form and substance to Lessee and Owner Trustee (a "BENEFICIARY GUARANTY"), or
(z) an Affiliate of the transferring Beneficiary, so long as such Affiliate has
a combined capital and surplus (or, if applicable, consolidated net worth or its
equivalent) of not less than $25,000,000 (unless the Beneficiary remains liable
for the obligations of such Affiliate under the Operative Documents, in which
case there shall be no such net worth requirement), (2) shall be reasonably
experienced in equipment leasing and financing transactions; and (3) shall not
be (x) an airline or other Person engaged in air transportation or a competitor
of Lessee in the business of air transportation or any Affiliate thereof, (y) a
party adverse to the Lessee or any Affiliate of the Lessee in any pending
litigation or arbitration (whether as plaintiff or defendant) or (z) a Person
that has overtly threatened to initiate any such litigation or arbitration
against Lessee or any Affiliate of Lessee.

          (vi) ASSIGNMENT OF RIGHTS BY BENEFICIARY AND OWNER TRUSTEE.
Notwithstanding anything to the contrary contained herein or in any other
Operative Document, on or prior to the Delivery Date, upon notice to the Seller,
each of the Owner Trustee's and Beneficiary's rights (but not any of their
respective obligations other than the obligation to pay Aircraft Price) under
this Agreement to acquire the Aircraft shall be freely assignable in connection
with a like-kind exchange under Section 1031 of the Code, PROVIDED that on or
prior to the Delivery Date the Owner Trustee and the Beneficiary shall have
reacquired all such rights which have been so assigned.

          (vii) ACTIONS WITH RESPECT TO TRUST ESTATE, ETC. The Beneficiary
agrees that it will not take any action to subject the Trust Estate or the trust
established by the Trust Agreement, as debtor, to the reorganization or
liquidation provisions of the Bankruptcy Code or any other applicable bankruptcy
or insolvency statute.

          (viii) CONSENT TO OTHER OPERATIVE DOCUMENTS. The Beneficiary hereby
consents in all respects to the execution and delivery of the Lease and the
other Operative Documents and hereby agrees to follow the provisions thereof
which by their terms are applicable to it.

          (ix) GUARANTEES. The Beneficiary agrees for the benefit of the Lessee
that it will not make or consent to any change to the Guarantees that would make
the representation in Section 9(b)(viii) incorrect at the time of such change or
that would increase the Guaranteed Amount and the Beneficiary agrees to provide
notice to the Lessee of any decrease in the Guaranteed Amount and the amount of
such decrease.

                                       11
<Page>

     (e) SURVIVAL. The obligations of the Parties under this Section 10 shall
survive the Delivery of the Aircraft.

     Section 11 CONCERNING OWNER TRUSTEE.

     It is understood and agreed that, except as otherwise expressly provided
herein or in the Trust Agreement or any other Operative Document, WFB is
entering into this Agreement solely in its capacity as trustee as provided in
the Trust Agreement and not in its individual capacity and in no case whatsoever
will WFB be liable or accountable in its individual capacity for any of the
statements, representations, warranties, agreements or obligations of Lessor
hereunder, or for any loss in respect thereof, as to all of which all interested
parties agree to look solely to the Trust Estate; provided that nothing in this
Section 11 shall be deemed to limit in scope or substance the personal liability
of WFB (a) to Beneficiary as expressly set forth in the Trust Agreement, (b) in
respect of the representations, warranties and agreements of WFB expressly made
in its individual capacity herein or in any other Operative Document to which it
is a party, (c) for the consequences of its own gross negligence, willful
misconduct and, in receiving, handling or remitting of funds only, its willful
misconduct or simple negligence as a trustee, (d) in respect of Lessor's Liens
attributable to it in its individual capacity, and (e) taxes, fees or other
charges on, or based on, or measured by, any fees, commissions or compensation
received by it in connection with the transactions contemplated by the Operative
Documents.

     Section 12 MISCELLANEOUS.

          (a) NOTICES AND REQUESTS. Any report, notice, request, demand or other
communication to or upon the Parties hereto under this Agreement shall (i) be in
the English language and in writing; (ii) be deemed to have been duly delivered
to a party if it is (1) left at the address of that party specified below or at
such other address as that party may notify to the other party from time to
time, (2) sent by courier to that party at that address, or (3) sent by
facsimile to the facsimile number of that party specified below or to such other
number as that party may notify the other party from time to time; (iii) signed
on behalf of the party giving, serving or making the same by any attorney,
director, officer, secretary, partner, agent or other duly authorized
representative of such party; and (iv) be effective (a) in the case of a letter
or delivery by courier, when left at the address referred to above; or (b) in
the case of a facsimile transmission, when receipt is confirmed by return
facsimile or by telephone or on actual receipt if not so confirmed.

     For the purposes of this Agreement, all reports, notices, requests, demands
or other communications shall be given or made by being addressed as follows:

          If to the Seller:

                      Solitair Corp.
                      c/o Wexford Capital LLC
                      411 West Putnam Avenue
                      Greenwich, Connecticut  06830
                      Attention: President
                      Telephone:  203-862-7000
                      Facsimile:  203-862-7490

          If to Beneficiary:

                                       12
<Page>

                    Mitsui & Co. (U.S.A.), Inc.
                    200 Park Avenue
                    New York, NY  10166
                    Tel:    (212) 878-4314
                    Fax:    (212) 878-0979
                    Attn:  General Manager, Aerospace, Marine and Motor Vehicles

          If to WFB or Owner Trustee:

                    Wells Fargo Bank Northwest, National Association
                    79 South Main Street, Suite 300
                    Salt Lake City, Utah  84111
                    Attention:  Corporate Trust Department
                    Telephone:  801-246-5826
                    Facsimile:  801-246-5053

          If to Lessee:

                    Chautauqua Airlines, Inc.
                    2500 S. High School Road
                    Indianapolis, Indiana  46241
                    Tel:    (317) 484-6047
                    Fax:    (317) 484-6060
                    Attn:   President

          with a copy to:

                    Wexford Capital LLC
                    411 West Putnam Avenue
                    Greenwich, Connecticut 06830
                    Tel:    (203) 862-7000
                    Fax:    (203) 862-7490
                    Attn:   President

PROVIDED, that any report, notice, request, demand or other communication
delivered to Lessee in accordance with this Section 12(a) shall be effective as
to Lessee without regard to whether such report, notice, request, demand or
other communication has been delivered to Wexford Capital LLC

          (b) GOVERNING LAW; JURISDICTION.

          (i) THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK, AND
     THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL, PURSUANT TO NEW
     YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE LAWS OF THE
     STATE OF NEW YORK.

          (ii) The Parties hereto each hereby irrevocably consents that any
     legal action or proceeding against it or any of its assets arising out of
     or relating to this Agreement or any other Operative Document may be
     brought in any jurisdiction where it or any of its assets may be found, in
     the courts of the State of New York located in the County of New York, New
     York, and in the Federal courts sitting in the Southern District of New
     York, as the Party bringing such

                                       13
<Page>

     action or proceeding may elect, and by execution and delivery of this
     Agreement each of the Parties hereto hereby irrevocably submits to and
     accepts with regard to any such action or proceeding, for itself and in
     respect of its assets, generally and unconditionally, the jurisdiction of
     the aforesaid courts and irrevocably agrees to be bound by any judgment
     rendered thereby. Nothing herein shall prevent any Party from bringing any
     legal action or proceeding or obtaining execution of judgment in any other
     appropriate jurisdiction. The Parties hereto further agree that a final
     judgment in any action or proceeding arising out of or relating to this
     Agreement or any other Operative Document shall be conclusive and may be
     enforced in any other jurisdiction within or outside the United States by
     suit on the judgment, a certified or exemplified copy of which shall be
     conclusive evidence of the fact and the amount of the indebtedness or
     liability therein described, or in any other manner provided by law. Each
     of the Parties hereto hereby irrevocably waives, to the fullest extent
     permitted by law, any objection which it may now or hereafter have to the
     laying of venue of any suit, action or proceeding arising out of or
     relating to this Agreement or any other Operative Document brought in any
     court in or of New York, New York, and hereby further irrevocably waives
     any claim that any such suit, action or proceeding in New York, New York
     has been brought in an inconvenient forum.

          (iii) Each Party hereto hereby irrevocably consents to the service by
     certified mail at its address set forth in Section 12(a) of any summons and
     complaint and any other process which may be served in any action or
     proceeding arising out of or relating to this Agreement or any other
     Operative Document. Notwithstanding the foregoing, nothing herein shall
     affect the rights of either Party to serve process in any other manner
     permitted by law.

          (iv) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
     FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
     TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
     OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER OPERATIVE
     DOCUMENT. Each Party hereto (a) certifies that no representative, agent or
     attorney of any other Party has represented, expressly or otherwise, that
     such other Party would not, in the event of litigation, seek to enforce the
     foregoing waiver and (b) acknowledges that it and the other Parties hereto
     have been induced to enter into this Agreement and the other transaction
     documents, as applicable, by, among other things, the mutual waivers and
     certifications in this section.

          (c) [RESERVED.]

          (d) ASSIGNMENTS. Except as otherwise expressly provided herein or in
any other Operative Document, this Agreement shall not be assignable by any
Party without the consent of the other Parties; PROVIDED, HOWEVER, that the
Beneficiary may assign its rights and obligations in and under this Agreement
without the consent of the Seller or Lessee in connection with the sale of all
or a portion of the Beneficiary's interests in the Trust Estate, the Aircraft
and Lease as provided in Section 10(b)(v) hereof and may assign its rights, but
not its obligations as provided in Section 10(b)(vi) hereof. This Agreement, and
the rights and obligations of the Parties hereunder, shall be binding upon and
inure to the benefit of each of the Parties, their respective successors and
permitted assigns.

          (e) TRANSACTION COSTS. Beneficiary shall be responsible for and shall
pay and reimburse the Parties for all reasonable out of pocket costs and
expenses of the Parties (other than costs and expenses relating to the Owner
Trustee specified in the next succeeding sentence), including the costs and
expenses of counsel, LSC, Special FAA counsel (other than costs and expenses of
Special FAA Counsel referred in the next succeeding sentence) and Pinheiro Neto,
special Brazilian counsel, and the fee of Lessee's advisor (not to exceed 0.5%
of the Aircraft Price), in each case incurred in connection with the
preparation, negotiation and delivery of this Agreement and any other documents,
agreements or

                                       14
<Page>

instruments delivered in connection herewith up to a maximum amount in the
aggregate of [*], and Lessee shall be responsible for and shall pay or
reimburse Beneficiary for all such costs and expenses in excess of the
aggregate amount of [*]. Lessee also shall be responsible for and shall pay
or reimburse all costs and expenses relating to the Owner Trustee, including
the annual fees and expenses of the Owner Trustee and the costs and expenses
of Special FAA Counsel in qualifying the Trust Agreement with the FAA. All
such costs and expenses of the parties to the transaction other than the
Parties shall be evidenced by appropriate original bills or invoices, which
shall be reasonably satisfactory in form and amount to the Beneficiary and,
with respect to any amounts payable by Lessee, the Lessee.

          (f) NO WAIVER. The failure of any Party to enforce at any time any of
the provisions of this Agreement or any document, agreement or instrument
delivered hereunder, or to require at any time the performance by the other
Party of any of the provisions hereof or thereof, shall in no way be construed
to be a waiver of such provisions, nor in any way affect the validity of this
Agreement or such document, agreement or instrument or any part thereof, or the
right of such Party thereafter to enforce each and every such provision. The
express waiver by any Party of any provision, condition or requirement of this
Agreement or any document, agreement or instrument delivered hereunder shall not
constitute a waiver of any future obligation to comply with such provision,
condition or requirement.

          (g) SEVERABILITY. Any provision of this Agreement that 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, any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provisions in any other jurisdiction. To the extent permitted
by law, each of the Parties hereto hereby waives any provisions of law which
renders any provisions hereof prohibited or unenforceable in any respect.

          (h) COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          (i) ENTIRE AGREEMENT; MODIFICATION OR REVISION. This Agreement and the
other Operative Documents are, collectively, intended to be a complete and
exclusive statement of the terms of the agreement of the Parties and this
Agreement and the other Operative Documents supersede any prior or
contemporaneous agreements, whether oral or in writing in relation to the
transactions contemplated herein. None of this Agreement, any other Operative
Document or any term hereof or thereof may be modified or waived except by an
agreement in writing signed by the Parties.

          (j) HEADINGS. The headings of the Sections in this Agreement are
inserted for convenience of reference only, and are not deemed to be part of
this Agreement shall not in any way affect the interpretation thereof.

          (k) NO BROKER.

               (i) Seller hereby represents and warrants that it has not paid,
          agreed to pay or caused to be paid directly or indirectly in any form,
          to any Person, other than Seabury Securities LLC, any commission,
          percentage, contingent fee, brokerage or other similar payments of any
          kind, in connection with the establishment or operation of this
          Agreement.

               (ii) Beneficiary and Owner Trustee each hereby represents and
          warrants that it has not paid, agreed to pay or caused to be paid
          directly or indirectly in any form, to any Person, other than Tombo
          Aviation Inc., any commission, percentage, contingent fee,

----------
* Confidential
                                       15
<Page>

          brokerage or other similar payments of any kind, in connection with
          the establishment or operation of this Agreement.

          (l) CONFIDENTIALITY. The Parties agree to keep the following
information confidential: the Aircraft Price, Assignment No.1, Assignment No. 2
and the terms of the warranties relating to the Airframe, the Engine Warranty
Assignment and Consent and the terms of the warranties relating to the Engines
and such other information as any Party shall identify in writing to the other
Parties as confidential information. This confidentiality obligation shall
survive the termination of the Lease for a period of one year following such
termination, except that if the Lease shall have been terminated following an
Event of Default, Lessor and Beneficiary shall have the right to disclose such
information as may be necessary in order to remarket the Aircraft and/or to
enforce any remedy that may be available to it. Notwithstanding the foregoing,
this Agreement, the other Operative Documents and all information supplied by
either of the Parties hereunder or thereunder may be disclosed by any of the
other Parties (1) as may be required by Law or by any court or administrative
order, (2) to the extent that the substance hereof or thereof becomes public
knowledge through no fault or negligence of such other party, (3) to such
Party's professional advisers and to the Manufacturer and Engine Manufacturer,
and (4) to any subsequent potential transferees of the Aircraft, the Trust
Estate or an interest therein or the Beneficial Interest or to a Financing
Party; PROVIDED that any such Person agrees to be bound by this Section 12(l).

                      [signature page immediately follows]

                                       16
<Page>

     IN WITNESS WHEREOF, the Parties hereto have duly executed this Aircraft
Purchase Agreement [N288SK] as of the day and year first above written.

                                       SOLITAIR CORP.

                                       By: /s/ Doug Lambert
                                           -------------------------------------
                                         Name: Doug Lambert
                                         Title: Vice President

                                       CHAUTAUQUA AIRLINES, INC.

                                       By: /s/ Robert H. Cooper
                                           -------------------------------------
                                         Name: Robert H. Cooper
                                         Title: Vice President

                                       MITSUI & CO. (U.S.A.), INC.

                                       By: /s/ Kazuki Okamura
                                           -------------------------------------
                                         Name: Kazuki Okamura
                                         Title: General Manager

                                       WELLS FARGO BANK NORTHWEST, NATIONAL
                                       ASSOCIATION, not in its individual
                                       capacity, but solely as Owner Trustee

                                       By: /s/ Brett R. King
                                           -------------------------------------
                                         Name: Brett R. King
                                         Title: Vice President

<Page>
                                                                       EXHIBIT A
                                                           TO PURCHASE AGREEMENT

                              FORM OF BILL OF SALE

KNOW ALL MEN BY THESE PRESENT THAT AERO LTD., a Cayman Islands corporation
("AERO"), whose address is [____________________], is the owner of good and
marketable title to that certain EMB-145 LR Aircraft bearing Manufacturer's
Serial No. [____], with two Rolls Royce Allison AE3007A1P engines bearing
manufacturer's serial numbers CAE [_____] and CAE [____], with all appliances,
parts, instruments, appurtenances, accessories, furnishings and/or other
equipment or property incorporated in or installed on or attached to said
aircraft, not including the galley equipment, serving equipment or emergency
medical equipment (hereinafter collectively referred to as the "AIRCRAFT")
purchased by WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national
banking association, not in its individual capacity, but solely as trustee under
a Trust Agreement dated as of June 5, 2001 between itself and MITSUI & CO.
(U.S.A.), INC., a corporation organized and existing under the laws of the State
of New York, with its principal place of business at 200 Park Avenue, New York,
New York 10166 (the "PURCHASER"), under the Aircraft Purchase Agreement
[N288SK], dated as of June 5, 2001, including Attachments, Exhibits, Letters,
Amendments and Agreements by and between AERO and PURCHASER.

THAT for and in consideration of the sum of US$10.00) and other valuable
consideration, receipt of which is hereby acknowledged, AERO does this ___ day
of _____, 2001, grant, convey, transfer bargain and sell, deliver and set over
to PURCHASER and unto its successors and assigns forever, all of AERO's right,
title and interest in and to the Aircraft.

THAT AERO hereby represents and warrants to PURCHASER, its successors and
assigns:

(i)  that AERO has good and marketable title to the Aircraft and the good and
     lawful right to the Aircraft and the good and lawful right to sell the
     same; and
(ii) that good and marketable title to the Aircraft is hereby duly vested in
     PURCHASER free and clear of all claims, liens, encumbrances and rights of
     others of any nature. AERO hereby covenants and agrees to defend such title
     forever against all claims and demands whatsoever.

This Full Warranty Bill of Sale is governed by the laws of the state of New
York, United States of America.

IN WITNESS WHEREOF, AERO has caused this instrument to be executed and delivered
by its duly authorized officer and attorney in fact.

Date as of __________, __, 2001.

AERO LTD.

By:
    -----------------------------
   Name:
   Title:

By:
    -----------------------------
   Name:
   Title:

<Page>

                                                                      EXHIBIT B
                                                           TO PURCHASE AGREEMENT

                         FORM OF ACCEPTANCE CERTIFICATE

     This undersigned WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in
its individual capacity, but solely as trustee under a Trust Agreement, dated as
of June 5, 2001 (the "TRUST AGREEMENT"), between MITSUI & CO. (U.S.A.), INC. and
itself (the "PURCHASER"), hereby indicates and confirms to SOLITAIR CORP. (the
"SELLER") and AERO LTD. ("AERO") and their respective successors and assigns
that PURCHASER has at _____________a.m./p.m. (New York time) on this ______ day
of June, 2001 (the "DELIVERY TIME"), and at the city of Sao Jose dos Campos, Sao
Paulo, Brazil, accepted the following Aircraft, "as is, where is" in accordance
with the provisions of the Aircraft Purchase Agreement, dated as of June 5,
2001, among PURCHASER, SELLER and Mitsui & Co. (U.S.A.), Inc., and does hereby
consider it duly transferred to the ownership of PURCHASER, which from the
Delivery Time on assumes the full responsibility for any and all damages and
risks that may arise out of its ownership and operation:

     One EMB-145 LR Aircraft bearing Manufacturer's Serial No. 145461, with two
Rolls Royce Allison AE3007A1P engines bearing manufacturer's serial numbers CAE
311866 and CAE 311867, with all appliances, parts, instruments, appurtenances,
accessories, furnishings and/or other equipment or property incorporated in or
installed on or attached to said aircraft (not including the galley equipment,
serving equipment or emergency medical equipment),

     IN WITNESS WHEREOF, PURCHASER has caused this Acceptance Certificate to be
executed in its name, by its duly authorized officers) or representative(s),
pursuant to due corporate authority, this ___________ day of June. 2001.

                                       WELLS FARGO BANK NORTHWEST, NATIONAL
                                       ASSOCIATION, not in its individual
                                       capacity, but solely as trustee under the
                                       Trust Agreement

                                       By:
                                           -------------------------------------
                                          Name:
                                          Title:

<Page>
<Page>

                                                                     EXHIBIT A-2
     Section 1. GENERAL CONDITIONS.

     "APPRAISAL PROCEDURE" means, if (x) the Beneficiary does not provide a
Residual Notice to the Lessee as provided in Section 3(e) by the one hundred
eightieth (180th) day prior to the Expiration Date (it being agreed that, if
such Residual Notice is so given, the RVG Appraisal Procedure in Exhibit D-2
shall be used to determine Fair Market Sales Value, except as set forth in the
last proviso to this sentence), and (y) the Lessor and the Lessee shall not have
agreed on the Fair Market Sale Value of the Aircraft within thirty (30) days
after Lessee gives notice pursuant to Section 3(c) that it is exercising its FMV
Option, then Fair Market Sale Value shall be as specified in an appraisal
prepared and delivered in New York City and mutually agreed to by two recognized
independent aircraft appraisers, one of which shall be appointed by the Lessor
and the other of which shall be appointed by the Lessee, in each case promptly
after such one hundred eightieth (180th) day, or, if such appraisers cannot
agree on such appraisal, an appraisal arrived at by a third independent
recognized appraiser chosen by the mutual consent of the two aircraft
appraisers, PROVIDED that if either party should fail to appoint an appraiser
within fifteen (15) days of receiving notice of the appointment of an appraiser
by the other party, then such appraisal shall be made by the appraiser appointed
by the first party, and PROVIDED FURTHER, that if the two appraisers cannot
agree on such appraisal and fail to appoint a third independent recognized
aircraft appraiser within fifteen (15) days after the appointment of the second
appraiser, then either party may apply to the American Arbitration Association
to make such appointment, and PROVIDED FURTHER that the appraisal shall be
completed within thirty (30) days of the appointment of the last appraiser so
appointed, and PROVIDED FURTHER that, for purposes of Section 17.02 of the
Lease, any determination of Fair Market Sales Value or Fair Market Rental Value
pursuant to Section 17.02 of the Lease shall be made by a single recognized
independent aircraft appraiser selected by Lessor and the costs and expenses
associated therewith shall be borne by Lessee..

     Each appraiser appointed pursuant to any of the foregoing procedures must
be associated with a professional organization of aircraft appraisers and the
appraised fair market sales values shall be determined by the appraisers
pursuant to ISTAT 1994 appraisal methods, definitions and assumptions (or any
successor thereto). Each of the Lessor and Lessee agrees to promptly provide the
other Party with copies of any reports received by it from any appraiser hired
by it in connection with the appraisal procedures described above. Except as
otherwise expressly provided in the Lease and in the last proviso of the first
paragraph of this definition of Appraisal Procedure, all appraisal costs will be
shared equally by the Lessor and the Lessee; provided that if the Lessee elects
not to renew the Lease or purchase the Aircraft following the conclusion of such
appraisal, the Lessee shall pay all such appraisal costs.

     "ASSUMED TRANSACTION COSTS" means [*]

     "BASIC RENT" means the amount payable on each Rent Payment Date as set
forth in Schedule BR1, as adjusted pursuant to Section 4.01) of the Lease,
PROVIDED that each such amount shall be allocated among the Rental Periods as
set forth in Schedule BR2, as adjusted pursuant to Section 4.01 of the Lease.

     "EARLY PURCHASE OPTION" means the purchase option exercisable by Lessee on
the Early Purchase Date.

-------
* Confidential

<Page>

     "DEFICIENCY GUARANTEE" means the Deficiency Guarantee Agreement, dated June
5, 2001, between the Manufacturer and Beneficiary.

     "FAIR MARKET RENTAL VALUE" means in respect of the Aircraft at any time,
the aggregate base rentals (which shall in no event be less than zero) which
would be payable in an arm's-length transaction for cash under a lease of the
Aircraft on an "as is", "where is" basis and otherwise on terms substantially
identical (except for Basic Rent and Term) to the terms of this Lease for such
period of time as such Fair Market Rental Value is to be determined between a
willing lessor and a willing lessee both with full knowledge of the relevant
facts, including the actual condition and maintenance status of the Aircraft at
such time, and neither under any compulsion to enter into the transaction.

     "FAIR MARKET SALE VALUE" means in respect of the Aircraft, if the
Beneficiary does not provide a Residual Notice to the Lessee as provided in
Section 3(e), an amount equal to the fair market sales value (which shall in no
event be less than zero) which would be obtained in an arms' length retail
transaction for a sale of the Aircraft, between an informed and willing buyer
(other than a lessee currently in possession or a used equipment dealer) and an
informed and willing seller, neither under any compulsion to buy or sell. In
determining Fair Market Sale Value by appraisal or otherwise, it will be assumed
that the Aircraft is in the condition, location and overhaul status in which it
is required to be returned to the Lessor pursuant to Article XVIII of the Lease
(without any allowance which may otherwise be permitted by Section 6 of EXHIBIT
D-1), that the Lessee has removed all Parts which it is entitled to remove
pursuant to Article IX of the Lease and that the Aircraft is not encumbered by
the Lease, PROVIDED that if an Event of Default has occurred, then for purposes
of Section 17.02 of the Lease, the Fair Market Sales Value of the Aircraft, the
Airframe or any Engine shall be determined on an "as is, where is" basis and
shall take into account customary brokerage and other out-of-pocket fees and
expenses which typically would be incurred in connection with a sale of the
Aircraft, the Airframe or any Engine. If the Beneficiary provides a Residual
Notice as provided in Section 3(e), the definition of Fair Market Sale Value
will be determined as provided in the definition of RVG Appraisal Procedure.

     "FMV OPTION" means the purchase option exercisable by the Lessee on the
Expiry Date.

     "GUARANTEED AMOUNT" means [*].

     "MAINTENANCE PROGRAM" means the Lessee's maintenance program, as such
program may be from time to time amended and supplemented by Lessee and which
(i) shall have been approved by the FAA ) and be in compliance with Part 121 of
the Federal Aviation Regulations (as set forth in Title 14 of the U.S. Code of
Federal Regulations), (ii) shall fully comply with the requirements of the FAA
for the EMB-145 and Rolls-Royce Allison AE3007-A1P aero engines (or an improved
model, as the case may be) installed thereon, and (iii) shall incorporate the
requirements of the EMB-145 Scheduled Maintenance Requirements Document Part 1
("SMRD"), the Aircraft Maintenance Manual ("AMM"), the Structural Repair Manual
("SRM"), the Corrosion Prevention and Correction Program ("CPCP") and the
Original Equipment Manufacturers' ("OEMS") maintenance manuals, (all of the
foregoing as from time to time amended or supplemented), the Service Newsletters
and the service bulletins issued by the Manufacturer and all OEMs, provided,
however, that when the Aircraft is subject to a Sublease, "Maintenance Program"
shall mean any maintenance program approved by the relevant Aeronautical
Authority for the Aircraft, Airframe and engines, as applicable, but only to the
extent provided in the Sublease. .

     "MINIMUM LIABILITY AMOUNT" means [*].

     "NET ECONOMIC RETURN" means the Beneficiary's nominal after-tax book yield
(utilizing the multiple investment sinking fund method of analysis), computed
through the Early Purchase Date and the Expiry Date on the basis of the same
methodology, constraints and assumptions as were utilized by the

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initial Beneficiary in determining Basic Rent and Stipulated Loss Values as
of the Delivery Date; provided that, if the initial Beneficiary shall have
transferred all or any portion of its interest, Net Economic Return shall be
calculated as if the initial Beneficiary had retained its interest .

     "LEASE [N287SK]" means Aircraft Lease Agreement [N287SK], dated as of June
5, 2001 between an Other Lessor and Lessee.

     "LEASE [N288SK]"means Aircraft Lease Agreement [N288SK], dated as of June
5, 2001 between an Other Lessor and Lessee.

     "PBH AGREEMENT" has the meaning assigned in Exhibit D-1 or Exhibit D-2, as
applicable.

     "PURCHASE PRICE" means, in the case of the Early Purchase Option, the
higher of [*] and Stipulated Loss Value as listed in the column headed
"Stipulated Loss Value" in Schedule SLV on the Early Purchase Date, and in the
case of the FMV Purchase Option, the Fair Market Sale Value of the Aircraft as
of the Expiry Date.

     "RESIDUAL VALUE GUARANTEE" means the Residual Value Guarantee Agreement,
dated as of June 5, 2001, between the Beneficiary and the Manufacturer.

     "RVG APPRAISAL PROCEDURE" has the meaning specified in Section 9 of Exhibit
D-2.

     "SCHEDULED DELIVERY DATE" means June 5, 2001, or such other date as may be
notified to Lessee by the Manufacturer and agreed to by Lessor, but not later
than August 31, 2001.

     "STIPULATED LOSS VALUE" means, with respect to any given date, the amount
set forth in the column headed "Stipulated Loss Value" in Schedule SLV opposite
such date or the next succeeding date in such column, in each case as adjusted
pursuant to Section 4.01 of the Lease.

     Section 2. [RESERVED]

     Section 3. PURCHASE OPTION. (a) The Lessee may, at its option and upon
written notice to Lessor as hereinafter provided, (i) so long as no Specified
Default (other than an Event of Default described in Section 17.01(m) of the
Lease) shall have occurred and be continuing, purchase the Aircraft at the
Purchase Price on the date that is the fourteenth anniversary of the Delivery
Date (the "EARLY PURCHASE DATE") (such purchase option, the "EARLY PURCHASE
Option"), or (ii) so long as no Event of Default described in Section 17.02 (g),
(h) and (i) shall have occurred and be continuing, on the Expiration Date (the
"EXPIRY DATE") (such purchase option, the "FMV OPTION," and the Early Purchase
Option and FMV Option each being herein referred to as a "LESSEE PURCHASE
OPTION").

     (b) In the event Lessee intends to exercise the Early Purchase Option on
the Early Purchase Date, Lessee shall give irrevocable written notice to Lessor
stating that it intends to so exercise the Early Purchase Option, which notice
shall be delivered to Lessor not less than one hundred twenty (120) days nor
more than three hundred sixty-five (365) days prior to the Early Purchase Date
and shall set forth a reasonably detailed calculation of the amounts that will
be due on the Early Purchase Date, PROVIDED that if Lessee fails to to deliver
such notice not less than one hundred twenty (120) days prior to the Early
Purchase Date, Lessee shall be deemed to have waived its right to exercise the
Early Purchase Option.

     (c) In the event Lessee intends to exercise the FMV Option , Lessee shall
give written notice to Lessor of its intent to exercise its FMV Option on the
Expiry Date, which notice shall be delivered to Lessor not less than two hundred
ten (210) days prior to the Expiry Date, PROVIDED that if Lessee fails to

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deliver such notice not less than two hundred ten (210) days prior to the Expiry
Date, Lessee shall be deemed to have waived its right to exercise the FMV
Option.

     (d) After providing notice of its exercise of a Lessee Purchase Option,
whether or not any purchase is consummated pursuant to a Purchase Option, Lessee
shall pay all the out-of-pocket expenses of Lessor (including, but not limited
to, reasonable legal fees) relating thereto or incurred in connection therewith,
PROVIDED that, if Lessee revokes the exercise of its FMV Option as provided in
Section 3(f) or such exercise is revoked as provided in Section 3(e), such costs
shall be limited to appraisal costs and shall be paid as provided in the
definition of the Appraisal Procedure or the RVG Appraisal Procedure, as
applicable.

     (e) If (i) the Lessee has timely given the notice described in Section
3(c) that it is exercising the FMV Purchase Option, and (ii), the Beneficiary
delivers notice to Lessee (such notice, a "RESIDUAL NOTICE") not less than one
hundred eighty (180) days prior to the Expiry Date that Beneficiary has notified
or is notifying the Manufacturer that it is demanding payment under the Residual
Value Guarantee, the Fair Market Sales Value of the Aircraft shall be determined
pursuant to the RVG Appraisal Procedure in Exhibit D-2. If (i) the Lessee has
timely given the notice described in Section 3(c) that it is exercising the FMV
Purchase Option and (ii) the Beneficiary does not so deliver a Residual Notice,
the Fair Market Sales Value of the Aircraft shall be determined in accordance
with the Appraisal Procedure in this Exhibit A-2. The Manufacturer shall have
the right to notify Lessee and Beneficiary within 30 days after the
determination of Fair Market Sales Value in accordance with the RVG Appraisal
Procedure whether it will exercise its purchase option under the Residual Value
Guarantee, in which case Lessee's exercise of the FMV Purchase Option shall be
revoked and cancelled.

     (f) Unless the Lessee's purchase option is revoked under the preceding
clause (e) by the Manufacturer's exercise of its purchase option under the
Residual Value Guarantee, Lessee shall have the option of revoking its exercise
of the FMV Purchase Option within forty-five (45) days after the determination
of Fair Market Sales Value pursuant to the Appraisal Procedure or within fifteen
(15) days following the determination of Fair Market Sales Value pursuant to the
RVG Appraisal Procedure, but in either case not later than 105 days prior to the
end of the Basic Term.

     (g) Upon the date specified by Lessee in the notice referred to in
paragraph (b) or (c) of this Section 3, as applicable (and subject to revocation
of the FMV Purchase Option as provided in Section 3(e) or Section 3(f)), Lessee
shall pay the applicable Purchase Price for the Aircraft at the Payment Location
and in the manner set forth in Section 4.02 of the Lease, together with (i) the
amount of Basic Rent, if any, then due and unpaid on such date PLUS (ii) the
amount of deferred Basic Rent, if any, as of such date as set forth in the
column headed "Deferred Basic Rent" in Schedule SLV, MINUS (iii) the amount of
prepaid Basic Rent, if any, as of such date as set forth in the column headed
"Prepaid Basic Rent" in Schedule SLV, PLUS (iv) any Supplemental Rent unpaid as
of such date. Upon receipt by Lessor of the amounts described in the preceding
sentence, Lessor will transfer the Aircraft to Lessee on an "as is, where is"
basis and without any representation or warranty except that it is transferring
to Lessee title, free of Lessor's Liens, but subject to Liens arising by or
through Lessee, and will, at Lessee's sole cost and expense, execute and deliver
a bill of sale evidencing the same and such other instruments as Lessee may
reasonably request to evidence such transfer and the release of the Aircraft
from the terms of this Lease.

     (h) Upon delivery by the Lessor of the Aircraft and payment by the Lessee
of all amounts payable by the Lessee under paragraph (g) above, the obligations
of the Lessee to pay Rent (except for Supplemental Rent obligations surviving
pursuant to Articles XIV and XV of the Lease or the Tax Indemnity Agreement or
which have otherwise accrued but not been paid as of the Early Purchase Date or
the Expiry Date) shall cease and the Term shall end.

<Page>

     Section 4. ADDITIONAL CONDITIONS PRECEDENT. Lessor shall have received a
copy of the Residual Value Guaranty and the Deficiency Guarantee, each duly
executed and delivered by the Manufacturer.

     Section 5. RE-REGISTRATION. Lessor agrees that in connection with a
Sublease to a Permitted Sublessee that is not a Section 1110 Person and that is
not domiciled in the United States, Lessee may register the Aircraft in any
country listed on EXHIBIT F hereto; subject to satisfaction of the requirements
for such a Sublease in Section 8.01(c) of the Lease (including, without
limitation, the requirements that no Specified Default shall have occurred and
be continuing, such Permitted Sublessee has provided evidence satisfactory to
Lessor of insurance coverage required by the XI with respect to the operation of
the Aircraft by such Permitted Sublessee, and the Lessee has made the lump sum
payment required by Section 8.01(c)(i) of the Lease, if any) and to the
following conditions:

          (i) the Lessee shall pay all reasonable fees and expenses (including
     the reasonable fees and expenses of local counsel in such country) relating
     to such re-registration;

          (ii) the Lessee shall, at its cost, cause the interest of the Owner
     Trustee as owner of the Aircraft to be duly registered or recorded under
     the laws of such country and at all times thereafter to remain so duly
     registered or recorded unless and until the registration of the Aircraft is
     changed as provided herein, and shall, at its cost, cause to be done at all
     times all other acts including the filing, recording and delivery of any
     document or instrument and the payment of any sum necessary or, by
     reference to prudent industry practice in such country, advisable in order
     to create, preserve and protect such interest in the Aircraft as against
     the Lessee or any third parties in such jurisdiction, and the laws of such
     country would give effect to the Owner Trustee's title to and ownership
     interest in the Aircraft;

          (iii) the obligations of the Lessee (and of the Permitted Sublessee
     under a Sublease) and the rights and remedies of the Lessor shall remain or
     be, as the case may be, legal, valid, binding and enforceable in such
     country, and the courts of such country will respect the choice of New York
     law to govern the Lease;

          (iv) the Aeronautical Authority in the country of such re-registration
     imposes aircraft maintenance standards approved by, or at least as
     stringent as those approved by, the FAA the JAA or the central civil
     aviation authority of the United Kingdom, France, Germany, Japan, the
     Netherlands or Canada;

          (v) it shall not be necessary by reason of such re-registration or for
     purposes of enforcing remedies contained in the Lease or the related
     Sublease for the Owner Trustee or the Beneficiary to register or qualify to
     do business in such country;

          (vi) no Liens (except Permitted Liens) shall arise by reason of such
     re-registration;

          (vii) none of the Owner Trustee and the Beneficiary shall be subjected
     to any risk of adverse tax consequences in the jurisdiction in which the
     Aircraft is to be re-registered as a result of such re-registration for
     which the Lessee does not then indemnify or cause to be indemnified such
     Person in a manner satisfactory in form and substance to such Person;

          (viii) any export licenses and certificate of deregistration required
     in connection with any repossession or return of the Aircraft will be
     readily obtainable in the normal course without material delay or material
     burden on the Owner Trustee, it being agreed that the Lessee shall be
     responsible for the cost thereof;

<Page>

          (ix) there is no tort liability of the owner or lessor of an aircraft
     not in possession thereof under the laws of such jurisdiction more onerous
     than under the laws of the United States or any state thereof (it being
     agreed that, in the event such opinion cannot be given in a form
     satisfactory to the Beneficiary, such opinion shall be waived if insurance
     reasonably satisfactory to the Beneficiary is provided to cover such risk);

          (x) unless Lessee shall have agreed to provide insurance reasonably
     satisfactory to the Beneficiary covering the risk of requisition of use of
     or title to the Aircraft by the government of such country (so long as the
     Aircraft is registered under the laws of such country), the laws of such
     country require fair compensation by the government of such country payable
     in currency freely convertible into Dollars and freely removable from such
     country (without license or permit, unless Lessee prior to such proposed
     re-registration has obtained such license or permit or such license or
     permit will be readily obtainable in the normal course without material
     delay or material burden on the Beneficiary) for the taking or requisition
     by such government of such use or title;

          (xi) the Beneficiary and the Owner Trustee shall have received
     opinions in scope, form and substance reasonably satisfactory to them, of
     counsel, expert in the laws of such country, to the effect set forth in
     clauses (ii), (iii) (with respect to the obligations of the Lessee under
     the Lease), (v), (vii), (viii), (ix) and (x) of this Section 5;

          (xii) such proposed change in registration is made in connection with
     a Sublease to a Permitted Sublessee domiciled in such country; and

          (xiii) Lessee shall deliver such request to Lessor and Beneficiary in
     writing at least 20 days in advance of the date of any such proposed change
     in registration.

     Section 6. RENEWAL TERM. Lessor agrees to enter into good faith discussions
with Lessee regarding the potential renewal of this Lease at the end of the
Basic Term for such period or periods (any such period, a "RENEWAL Term"), and
at such amount or amounts of basic rent, as may be agreed upon by Lessor and
Lessee at the time of such discussions; PROVIDED that nothing in this Section 7
of Exhibit A-2 shall be construed as an obligation on the part of Lessor to
agree to any such Renewal Term. Lessee agrees that, notwithstanding anything to
the contrary contained herein, Lessor shall be entitled to refuse to enter into
any Renewal Term in the event that (i) the Residual Value Guarantee, or (ii) a
substitute residual value guaranty that is substantially identical to the
Residual Value Guarantee (as determined in the reasonable discretion of the
Beneficiary) and is otherwise in form and substance satisfactory to the
Beneficiary (with the obligor thereunder having a tangible net worth at least
equal to the net worth of the Manufacturer immediately prior to the first day of
such Renewal Term), shall not be available to Beneficiary during such Renewal
Term. Lessee acknowledges that, as of the date hereof, Manufacturer has
indicated that it does not intend to make the Residual Value Guarantee available
to Beneficiary during any such Renewal Term.

     Section 7. ADJUSTMENTS TO BASIC RENT AND STIPULATED LOSS VALUES. The
installments of Basic Rent in SCHEDULE BR1 attached hereto are based on the
Assumed Aircraft Price being equal to [*] and on the Assumed Transaction
Costs being equal to [*]. The amount of Basic Rent payable on each Rent
Payment Date other than the first four (4) Rent Payment Date shall be
increased or decreased by [*] for every increase or decrease of [*] of the
Aircraft Price above or below the Assumed Aircraft Price. The amount of Basic
Rent payable on each Rent Payment Date other than the first four (4) Rent
Payment Date shall be decreased by [*] (or a proportionate part thereof) for
every

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decrease of [*] (or proportionate part thereof) of the Transaction Costs
below the Assumed Transaction Costs.

     Section 8. [Reserved]

     Section 9. SELF-INSURANCE. Lessor and Lessee agree to engage in good faith
discussions on the right of Lessee to self-insure in such amounts as may be
agreed to by Lessor and Lessee at the time of such discussions. Nothing in this
Section 5 shall be construed as an obligation on the part of Lessor or
Beneficiary to agree to any such self-insurance provisions.

     Section 10. VOLUNTARY TERMINATION.

     (A) TERMINATION BY SALE OF AIRCRAFT. So long as no Specified Default shall
have occurred and be continuing, the Lessee shall have the right at its option
at any time after March 31, 2009 on at least 180 days', but not more than 365
days, prior written notice (which notice shall be irrevocable, except as
provided below) to the Lessor, specifying a proposed date of termination which
shall be a Termination Date, to terminate this Lease if the chief financial
officer of the Lessee shall have certified in writing to the Lessor that the
Aircraft shall have become obsolete or shall be surplus to the Lessee's
equipment requirements. Subject to the Lessor's preemptive election under
Section 10(c), during the period following the giving of such notice of
termination until the Termination Date, the Lessee, as agent for the Lessor,
shall endeavor to sell the Aircraft "as is", without any warranty by the Lessor
or the Lessee except as to the Lessor's title, on behalf of the Lessor. If
Lessee receives any bid, it shall at least 10 Business Days prior to the
proposed day of sale, certify to Lessor in writing the amount and terms of such
bid, such proposed date of sale and the name and address of the potential buyer
(which shall not be Lessee or any Affiliate or any Person with whom Lessee or
any Affiliate has any arrangement or understanding for the future purchase,
lease, operation or use of the Aircraft). Lessor may also solicit bids directly
or through agents other than Lessee. So long as the Lessor has not exercised its
preemptive election under Section 10(c), the Lessee may, by notice to the
Lessor, withdraw its notice of termination at any time on or before the date 10
days prior to the proposed Termination Date (unless such withdrawal is due to
the cancellation of the proposed purchase of the Aircraft by the potential buyer
in which event such notice may be given at any time on or prior to the proposed
Termination Date), and thereupon this Lease shall continue in full force and
effect. Withdrawal of notice of termination shall not exhaust the Lessee's right
to give a further notice of termination as provided herein; provided that Lessee
shall not be entitled to give more than two such notices (excluding one notice
of termination which has been withdrawn due to the cancellation of the proposed
purchase of the Aircraft by the potential buyer). Unless the Lessee shall
withdraw its notice of termination as stated above or the Lessor shall have made
a preemptive election to take possession of the Aircraft in accordance with
Section 10(c), on the Termination Date, or such other date of sale as shall be
consented to in writing by the Lessor and the Lessee, which date shall
thereafter be deemed the Termination Date, the Lessee shall, upon payment in
full of the amounts described in Section 10(b), deliver the Airframe and Engines
or engines installed thereon to the party which shall have prior to such date
submitted the highest bona fide cash bid to close such sale and purchase of the
same, in the same manner as if delivery were being made to the Lessor pursuant
to Article XVIII of the Lease, and shall duly transfer to such party title to
any engines which are not Engines delivered with the Airframe in accordance with
the terms of Article XVIII of the Lease. The Lessor shall, in "as-is, where-is"
condition, without recourse or warranty (except a warranty as to the absence of
Lessor's Liens), simultaneously therewith sell and convey title to the Airframe
and the Engines or engines conveyed to the Lessor as provided in Article XVIII
of the Lease for cash to such party. Upon the sale of the Airframe and the
Engines or engines conveyed to the Lessor as provided in Article XVIII of the
Lease pursuant to this Section 10 and receipt by the Lessor of all amounts
referred to in Section 10(b), the Lessor will transfer to the Lessee, in "as-is,
where-is" condition, without recourse or warranty (except a warranty as to the
absence of Lessor's Liens), all right, title and interest of the Lessor in and
to any Engines constituting part

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of the Aircraft but which were not delivered to the purchaser with the Airframe.
The Lessee shall pay all out of pocket expenses of the Lessor and Beneficiary in
connection with any termination or proposed termination of this Lease except
that Lessee shall not be responsible for such expenses of the Lessor or the
Beneficiary in the event the Lessor exercises its preemptive election under
Section 10(c) and thereafter fails to perform its obligations under such
Section.

     (b) PAYMENTS DUE UPON SALE OF AIRCRAFT. The total selling price realized at
any sale of the Airframe and Engines or engines installed thereon in accordance
with this Section 10 shall be retained by the Lessor and, in addition, on the
Termination Date, the Lessee shall pay to the Lessor or, in the case of
Supplemental Rent, to the Persons entitled thereto, in immediately available
funds, an amount equal to the sum of (A) the excess, if any, of (x) the
Stipulated Loss Value as of the Termination Date, over (y) the net proceeds of
the sale of the Aircraft, plus (B) the amount of unpaid Basic Rent, if any,
payable as of such Termination Date, PLUS (C) the amount of deferred Basic Rent,
if any, as of such Termination Date as set forth in the column headed "Deferred
Basic Rent" in Schedule SLV, MINUS (D) the amount of prepaid Basic Rent, if any,
as of such Termination Date as set forth in the column headed "Prepaid Basic
Rent" in Schedule SLV, PLUS (E) all unpaid Supplemental Rent due on or before
the Termination Date, PLUS (F) the reasonable fees and expenses of the
Beneficiary and Lessor in connection therewith, PLUS (G) any sales, transfer or
similar Taxes incurred on such sale.

     (c) PREEMPTIVE ELECTION BY LESSOR. Notwithstanding the foregoing provisions
of this Section 10, the Lessor may, not later than 90 days prior to the proposed
Termination Date, notify the Lessee of its preemptive election to take
possession of the Aircraft and following delivery of such notice, the Lessee
shall have no obligation to pay Stipulated Loss Value or any amount with respect
to Stipulated Loss Value under this Section 10. On the Termination Date, if the
Lessor shall have exercised its preemptive election to retain the Aircraft in
accordance with the terms of this Section 10(c), the Lessee shall deliver the
Airframe and Engines or engines installed thereon to the Lessor in accordance
with Article XVIII of the Lease and shall pay all unpaid Basic Rent, if any,
payable before the Termination Date, together with all Basic Rent (if payable in
arrears) due on such Termination Date, all unpaid Supplemental Rent due on or
before or after the Termination Date, and the Lessor shall transfer to the
Lessee title to any Engines constituting part of the Airframes but which were
not then installed on the Aircraft as provided in Section 18.03.

     (d) TERMINATION OF LEASE. Upon delivery by the Lessee of the Airframe and
Engines or engines installed thereon and payment by the Lessee of all amounts
payable by the Lessee under either Section 10(b) or 10(c), as the case may be,
the obligations of the Lessee to pay Rent (except for Supplemental Rent
obligations surviving pursuant to Articles XIV and XV of the Lease or the Tax
Indemnity Agreement or which have otherwise accrued but not paid as of the
Termination Date) shall cease and the Term shall end.

     (e) EFFECT OF NO SALE OR PREEMPTIVE DELIVERY TO LESSOR. If on the
Termination Date no sale of the Aircraft shall have occurred and the Lessee has
not delivered the Aircraft to the Lessor pursuant to Section 10(c), the Lessee's
notice given pursuant to Section 10(a) shall be deemed to be withdrawn as of
such date and this Lease shall continue in full force and effect.

     (f) NO DUTY ON PART OF LESSOR. Lessor shall be under no duty to solicit
bids, to inquire into the efforts of Lessee to obtain bids or otherwise to take
any action in connection with any such sale other than to cooperate with such
efforts as Lessee may reasonably request and to make the transfers described in
Section 10(a).

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                                                                       EXHIBIT B

                          PRINCIPAL AIRCRAFT DOCUMENTS

         A.       MANUALS.

         OPERATIONAL

         1.  Airplane Flight Manual (AFM)
         2.  Weight & Balance Manual (WB)
         3.  Operations Manual (OM)
         4.  Quick Reference Handbook (QRH)
         5.  Dispatch Deviation Procedures Manual (DDPM)
         6.  Supplementary Performance Manual (SPM)
         7.  Operational Bulletins Set (OB)
         8.  Master Minimum Equipment List (MMEL)

         MAINTENANCE - BASIC SET

         9.   Aircraft Maintenance Manual (AMM)
         10.  Illustrated Parts Catalog (IPC)
         11.  Fault Isolation Manual (FIM)
         12.  Non Destructive Manual (NDI)
         13.  Scheduled Maintenance Requirements Document (SMRD)
         14.  Wiring Manual (WM)
         15.  Structural Repair Manual (SRM)
         16.  Service & Information Bulletins Set (SB/IB)
         17.  Service Newsletters (SNL)

         MAINTENANCE SUPPLEMENTARY SET

         18.  System Schematic Manual (SSM)
         19.  Instructions for Ground Fire Extinguishing and Rescue (IGFER)
         20.  Airport Planning (AP)
         21.  Illustrated tool & Equipment Manual (ITEM)
         22.  Task Card Manual (TCM)
         23.  Powerplant Build-up Manual (PPBM)
         24.  Auxiliary Power Unit Build up Manual (APUBM)
         25.  Corrosion Control Manual (CCM)
         26.  Vendor Service Publications Set

         The documents set forth in Clauses (B), (C), (D) and (E) of this
Exhibit B shall only be required to be maintained by the Lessee (or any
Permitted Sublessee) to the extent required by the FAA or the Maintenance
Program.

<Page>

         B.       AIRWORTHINESS DIRECTIVES DOCUMENTATION

         1.       A single, complete and current AD status list of each
airframe, appliances, Engine and APU AD and mandatory FAA regulation applicable
to each Aircraft, appliances, Engine and APU including:

                  a.       AD number and revision number.
                  b.       AD title.
                  c.       Aircraft serial number, Engine serial number, APU
                           serial number, appliance serial number.
                  d.       Engineering documentation reference.
                  e.       Manufacturer's Service Bulletin references and
                           cross-references where appropriate.
                  f.       Specify terminated or repetitive status.
                  g.       Date of initial accomplishment,
                  h.       Date of last maintenance accomplishment, if
                           repetitive.
                  i.       Name and serial number of the internal maintenance
                           form used to document accomplishment, if applicable.
                  j.       State means by which compliance was accomplished
                           (e.g. modified, repaired, inspected).
                  The list shall be typed, certified and signed by authorized
                  quality assurance  representative of previous operator.

         2.       Legible copies of the completion documents that accomplish
each A.D. If the A.D. is a repetitive inspection, documentation of the last
accomplishment, signature of a certified mechanic and / or inspector, and the
mechanic's / inspector's certificate number or repair station number of the
mechanic accomplishing the work. The document must reference the A.D. number and
company authorization, which covered the AD.

         3.       Exemptions or deviations granted by the FAA (or equivalent) to
Lessor on AD compliance, including copy of exemption request.

         4.       Items 2 and 3 will be provided in individual document packages
for each AD Each package will contain all documents relative to that AD /
Aircraft combination.

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         C.       ENGINEERING DOCUMENTATION

         1.       A single, current list of Airframe, appliance, Engine and APU
Service Bulletins, Engineering Orders, major repairs and Supplemental Type
Certificates ("STC") accomplished on Aircraft, Engine and APU, including method
and date of accomplishment, reference to engineering documentation, including
related drawing and original signed documents where applicable shall be provided
with information similar to that described in item B. 1.

         2.       A current copy of all Engineering documentation related to
Aircraft alterations, repairs and configuration changes. This shall include
documentation for work done by the manufacturer or any vendor. A current copy of
all repairs that require follow-up action.

         3.       Data package covering all non-manufacturer / non-FAA-approved
repairs or alterations, including the submittal to the FAA for an STC or Form
337, If applicable.

         4.       All open engineering deviations or Material Review Board
("MRB") records applicable to the Airframe, Engines and APU, components and
piece parts.

<Page>

         5.       Mapping of all exterior repairs and damage to the exterior of
the Aircraft and Engines. Supporting data for each repair and damage shall be
provided with information similar to items C-1 and C-2.

         D.       ADDITIONAL DOCUMENTATION

         2.       Master Minimum Equipment List.
         4.       Monthly Reliability reports for one (1) year.
         5.       Accurate summary of the Maintenance Program.
         6.       Location map of emergency equipment with description.
         7.       Weight and balance current status.
         8.       Shop repair maintenance program specification for Engines and
                  APU's.
         9.       JAA Form 1 or FAA Form 8130 certification for all components,
                  as reasonably requested by Lessee.
         10.      Aircraft major equipment listing.
         11.      Passenger/cargo equipment list (seats, galleys. lavs,
                  entertainment, etc.).
         12.      Avionics equipment list (includes P/N, model number and
                  manufacturer and quantity).
         13.      Electronic logbook data, CD ROM or computer printouts, to the
                  extent accepted by the FAA, but otherwise, historical flight
                  log showing cumulative times for major inspection
                  accomplishments, engine changes, APU, etc.
         14.      Complete paperwork for last "C" check.
         15.      Compass card and F.D.R. calibration documentation.
         16.      Copies of Aircraft registration and certificate of
                  airworthiness.
         17.      List of previous owner / operators including dates, locations
                  and aircraft times.

         E.       INDIVIDUAL AIRCRAFT AND ENGINE RECORDS.

         1.       Incident report, if any.
         2.       Major structural damage reports, if any.
         3.       FAA Form 337 or equivalent JAA form or manufacturer's approval
                  for major repair and alteration, if any,
         4.       Engines last shop visit report.
         5.       Documentation and records concerning the last Aircraft
                  overhaul.
         6.       Copies of logbook entries for the last twelve (12) months of
                  operation.
         7.       Declaration of Aircraft accident and major repairs, if any,
         8.       Provide historical data for all life limited parts and hard
                  time components for the Airframe, Engines, and APU, if
                  reasonably requested by Lessee.
         9.       Listing of Aircraft and Engine components status by P/N - S/N
                  description position TBO-TSI-TSO-TSN (with respect to TSO or
                  TSN, if available), total time, next Due Time, including,
                  interpretation keys, if reasonably requested by Lessee.
         10.      APU- Same documentation as Items E. 8 and E. 9 above.
         11.      Certified letter with serial no.- total time/ total cycles-
                  times to the next inspection and the time to the next
                  inspection or removal of Engines and hard time component
                  status list.
         12.      All Engine and APU records, up to and including the last major
                  overhaul or heavy maintenance and shop visits (all modules)
                  including life limited part history to birth.
         13.      Electrical load analysis documents and data.
         14.      The last power plant test cell run documents for Engines and
                  APU
         15.      Borescope inspection documents for current installation for
                  Engines.
         17.      Corrosion prevention control program.
         18.      Aircraft readiness log (manufacturer's)
         19.      Approvals (DAR/DER 8110-3s) for all modifications alterations
                  not covered by Manufacturer's Service Bulletins or JAA
                  equivalent (including appliances),

<Page>

         20.      Fire blocking status for all seats, interior
                  fabrics/materials, including burn test documentation and
                  certification where applicable.
         21.      Aircraft detail specification.
         22.      Daily time and cycle log for Aircraft and Engines.

<Page>

                                                                     Exhibit D-1

                                RETURN CONDITIONS

         This Exhibit D-1 shall be applicable unless Exhibit D-2 applies in
accordance with its terms, in which case Exhibit D-2 shall supercede this
Exhibit D-1 and shall be applicable.

Section 1.        General Conditions.

         At the time of return, the Aircraft shall (i) have been continuously
         and currently maintained in accordance with the Maintenance Program,
         (ii) comply with the Maintenance Program as authorized by the FAA, in
         each case as if the Aircraft were to be kept in further commercial
         passenger service by Lessee, and (iii) meet the following requirements:

                  (a)      Operating Condition - The Aircraft shall be in good
                           operating condition, ordinary wear and tear excepted,
                           with all of the Aircraft equipment, components, and
                           systems functioning in accordance with their intended
                           use irrespective of variations or deviations
                           authorized by the Minimum Equipment List or
                           Configuration Deviation List. All replacement
                           equipment, parts, components or items installed on
                           the Aircraft shall be manufactured by the original
                           manufacturer approved by the Manufacturer or a
                           manufacturer holding requisite authority of the FAA,
                           and in case of used, rotable parts, have an
                           FAA-approved serviceable tag.

                  (b)      Configuration - The Aircraft shall be in the same
                           passenger configuration with all equipment installed
                           therein as the Aircraft was when delivered under the
                           Manufacturer Purchase Agreement, ordinary wear and
                           tear excepted, including replacements and substitute
                           parts and equipment. The Aircraft shall not suffer
                           any modification or alteration (hereinafter
                           "Modifications") after the Delivery Date provided
                           however that Lessee may make Modifications to the
                           Aircraft as long as they are included as
                           factory-installed features in EMB-145 aircraft
                           delivered to the Lessee subsequent to the delivery of
                           the Aircraft. The term Modifications shall be deemed
                           to include, but not be limited to (i) changes to the
                           Aircraft structure, performance, weight and balance,
                           (ii) changes which materially adversely affect the
                           Aircraft's flight qualities, operational
                           characteristics, operational safety, ease or cost of
                           maintenance, spare parts interchangeability or
                           replaceability, and (iii) substitution of different
                           types of equipment or accessories which are not
                           equivalent in cost value and/or operation capability
                           to the equipment or accessories being replaced, and
                           shall exclude (x) changes pursuant to service
                           bulletins issued by the Manufacturer or the OEMs, and
                           (y) mandatory changes required to be accomplished by
                           Lessee hereunder. All permitted Modifications made to
                           the Aircraft shall be in accordance with FAA-approved
                           data, and Lessee shall provide complete data and
                           documentation to substantiate their certification,
                           approval, and methods of compliance (including,
                           without limitation, a copy of the Aircraft
                           Illustrated Parts Catalog and a copy of the Aircraft
                           Interior Configuration document). A complete listing
                           of all modifications and repairs performed shall be
                           supplied together with the Aircraft. Modifications,
                           other than permitted ones, shall be removed and the
                           appropriate repairs to the Aircraft made prior to the
                           day of return of the Aircraft.

                                                                          Page 1
<Page>

                  (c)      Certification - The Aircraft shall have, a valid and
                           effective Certificate of Airworthiness of the type
                           "Transport, Category (Passengers)" issued by the FAA,
                           and shall be in full compliance with, and capable of
                           registration under, the provisions of Part 121 of the
                           U.S. Federal Aviation Regulations (or any successor
                           legislation) and other US regulations applicable to
                           the Aircraft's operation and continued airworthiness,
                           without any restrictions, corrections, repairs,
                           limitations, modifications or alterations or
                           overhauls having to be performed to meet such
                           standards.

                  (d)      General Appearance - The Aircraft shall be clean by
                           commercial passenger airline standards, cosmetically
                           acceptable, interior complete, and prepared to be
                           placed into scheduled revenue airline operations.
                           Interior items which may be broken shall be repaired
                           or replaced. All decals, signs and placards shall be
                           clean, secure and legible in the English language.
                           The Aircraft shall meet the following minimum
                           requirements:

                           (i)      Fuselage, Wings and Empennage - The fuselage
                                    shall be within Maintenance Program approved
                                    limits regarding dents and abrasions and
                                    loose or pulled rivets; all leading edges
                                    shall be within Maintenance Program approved
                                    limits regarding damage occurring since
                                    delivery; the airframe, Engines and wings
                                    shall be free of fuel, oil and hydraulic
                                    leaks so as to allow unrestricted operation;
                                    all leading edges and fuselage areas which
                                    are aerodynamically critical shall be free
                                    of any scab patches other than those
                                    required by the Manufacturer and shall be
                                    repaired with repairs which are permanent in
                                    nature in accordance with the SRM, or are
                                    made in accordance with the Manufacturer's
                                    approval or FAA approved data.

                           (ii)     Interior - Ceilings, sidewalls, bulkhead
                                    panels shall be clean, free of cracks and
                                    within Maintenance Program approved limits
                                    regarding dents; all carpets and seat covers
                                    shall be in good condition and clean and
                                    meet FAR fire resistance regulations; all
                                    seats shall be serviceable and in good
                                    condition. All safety equipment shall be
                                    installed at the correct stations, a loose
                                    equipment check list and location drawings
                                    shall accompany the Aircraft and a loose
                                    equipment inventory shall be drawn up on the
                                    Delivery Date and checked on the day of
                                    return of the Aircraft.

                           (iii)    Cockpit - All fairing panels shall be free
                                    of cracks and shall be clean; all floor
                                    coverings shall be clean and effectively
                                    sealed and secured, all seat covers and
                                    cushions shall be in good condition and
                                    clean and shall, as applicable, conform to
                                    FAA fire resistance regulations. All seats
                                    shall be fully serviceable and in good
                                    condition. All instruments and light panels
                                    shall be clean, secure and legible, function
                                    in accordance with their intended purpose
                                    and have all lighting operating properly.

                           (iv)     Landing, Gear and Wheel Wells - The landing
                                    gear and all wheel wells shall be clean,
                                    free of leaks, and repaired as necessary.
                                    The main and nose landing gear components
                                    and their associated actuators and parts
                                    shall be in a good operating condition.

                                                                          Page 2
<Page>

                           (v)      Cargo Compartment, Galleys and Toilets - All
                                    cargo compartment panels shall be installed
                                    and be in good condition so as to comply
                                    with extended range operations requirements.
                                    The cargo compartments, galleys and toilet
                                    of the Aircraft shall be in a clean and
                                    presentable condition and all cargo securing
                                    system components shall be serviceable; all
                                    galley inserts (to the extent delivered with
                                    the Aircraft) shall be redelivered with the
                                    Aircraft.

                           (vi)     Windows - Any delamination, and crazing of
                                    the windshields and cabin windows of the
                                    Aircraft shall be within approved limits of
                                    the Maintenance Program and shall be
                                    properly sealed.

                           (vii)    Doors - All the doors of the Aircraft shall
                                    be free moving, correctly rigged and
                                    properly sealed and all door assist
                                    mechanisms shall be charged in accordance
                                    with the AMM.

                  (e)      Airworthiness Directives and Service Bulletins - All
                           FAA Airworthiness Directives and amendments or
                           changes to Aviation Regulations issued by the FAA and
                           applicable to the Aircraft which require compliance
                           within a period of six (6) months following the day
                           of return of the Aircraft (or the equivalent hours or
                           cycles, based on the Lessee's EMB-145 last four (4)
                           years of operation average monthly utilization) shall
                           have been accomplished on a Terminating Action basis
                           and in compliance with the issuing agency's and the
                           manufacturer's associated service bulletins,
                           regardless of any operator-specific waiver, deferral,
                           or deviation from such directive or regulation. The
                           Aircraft shall have installed on it all Manufacturer
                           and OEM service bulletin kits requested by Lessee and
                           actually received by Lessee in respect of the
                           Aircraft, and if not installed, Lessee shall deliver
                           them together with the Aircraft at no charge.

                  (f)      Deferred Maintenance - The Aircraft shall be free of
                           all deferred or carried over maintenance items,
                           including without limitation, any pilot log book
                           reports, maintenance reports, and the Aircraft's
                           Central Maintenance Computer reports. Any such
                           deferred or carried over maintenance shall be
                           promptly accomplished in a terminating manner prior
                           to the return of the Aircraft at the end of the term
                           of the Lease.

                  (g)      Corrosion - The Maintenance Program shall include a
                           corrosion control program based on the corrosion
                           prevention, treatment and correction criteria
                           recommended by the Manufacturer in the CPCP. The
                           Aircraft shall be free from corrosion or shall have
                           been adequately treated in compliance with the
                           Maintenance Program. Complete details of the
                           corrosion control program, as well as a summary of
                           specific corrosion correction, of the Aircraft in
                           accordance with the Maintenance Program shall be
                           available for delivery together with the Aircraft.
                           This summary shall include Lessee's identifying the
                           Manufacturer's task identifier and cross referencing,
                           Lessee's identifier indicating status of
                           accomplishment and findings and incorporation status
                           relative to all recommended corrective and
                           preventative actions. The hydraulic system and fuel
                           tanks shall be free from contamination as
                           demonstrated by a laboratory

                                                                          Page 3
<Page>

                           report to be performed after the Aircraft is removed
                           from service and delivered together with the
                           Aircraft.

                  (h)      Leased Components - The Aircraft shall be free and
                           clear of all Liens other than any Lessor's Liens and
                           at return shall not have installed thereon any
                           equipment, components and/or parts which are leased
                           or loaned or otherwise owned by a third party.

                  (i)      Records - The Aircraft shall be accompanied by all
                           Aircraft Documents. The Aircraft Documents shall be
                           provided in English, and be in good condition,
                           readable and capable of being reproduced.

                           (i)      All Parts, components and assemblies
                                    identified with safe-life, hard time or
                                    condition monitored limits (to the extent
                                    that such condition monitored items are to
                                    be tracked in accordance with the approved
                                    Maintenance Program) shall be provided with
                                    part number, serial number, their service
                                    histories, accumulated cycles and flight
                                    hours, safe-life, hard time or condition
                                    monitored limits and remaining service lives
                                    on a separate listing and where practicable,
                                    be physically verified as installed and have
                                    hard copy documentation (i.e., appropriate
                                    overhaul or serviceable vendor tags and work
                                    orders) to verify their service histories.

                           (ii)     All components and assemblies, which are,
                                    identified on the maintenance records by
                                    part numbers and/or serial numbers other
                                    than the Manufacturer's or other
                                    manufacturer's shall be provided with
                                    two-way cross-reference listing necessary to
                                    establish complete traceability.

                           (iii)    All documentation, flight records, and
                                    maintenance records as specified herein and
                                    as specified by Federal Aviation Regulations
                                    Sections 121.380, and, as applicable,
                                    Section 91.417 and 91.419 (or FAR's as
                                    amended), and which normally accompany the
                                    transfer of an aircraft or engine shall be
                                    delivered together with the Aircraft. In the
                                    event of missing or incomplete records, the
                                    tasks necessary to produce such complete
                                    records shall be accomplished in accordance
                                    with the Maintenance Program prior to return
                                    of the Aircraft.

                           (iv)     All documentation and records shall be in
                                    English and shall be made available for
                                    inspection in the location they are normally
                                    kept which location shall permit direct
                                    access to the Aircraft, at least 14 Business
                                    Days before the day of return of the
                                    Aircraft.

                           (v)      Any and all documentation, data, drawings,
                                    records and manuals as required to be
                                    maintained by the FAA and SMRD, shall be
                                    provided, regardless of whether such
                                    information is considered proprietary.

                           (vi)     Hard Landing inspection reports, Lightning
                                    Strike inspection reports or High Intensity
                                    Radiated Field (HIRF) check reports as may
                                    be required should Aircraft records show
                                    evidence of any occurrence indicating such
                                    inspections or checks to be necessary.

                                                                          Page 4
<Page>

                           (vii)    Corrosion Prevention & Control Program
                                    (CPCP) inspection findings and correction
                                    reports, as required by the Maintenance
                                    Program.

                  The head of Lessee's quality control department shall sign a
                  statement certifying that the data and information contained
                  in the documentation and records are true and correct.

                  (j)      Exterior Markings - At time of return of the
                           Aircraft, Lessee shall, at its cost remove from the
                           exterior and interior of the Aircraft Lessee's
                           operator specific exterior and interior markings. The
                           area where such markings were removed or painted over
                           shall be refurbished by Lessee as necessary to blend
                           in with the surrounding surface in a good and
                           workmanlike manner.

                  (k)      Overhaul and Repair - All components, rotables, and
                           assemblies (including the Engines, APU, and landing
                           gears) shall be documented with work orders, vendor
                           serviceable tags, 8130 tags, form 337, etc. to have
                           been repaired or overhauled by FAA-certified repair
                           stations in such manner so that such components,
                           rotables, assemblies, Engines, APU, and landing gears
                           are approved by the FAA for use on United
                           States-registered and certified aircraft. All
                           overhaul and repair procedures shall have met all FAA
                           requirements necessary to transfer to a new operator
                           under Part 121 of the U.S. Federal Aviation
                           Regulations.

                  (l)      Structural Repairs - All repairs that were performed
                           since the Delivery Date and that then exist on the
                           Aircraft shall conform to the SRM and the AMM and
                           shall have FAA approval if required, including
                           without limitation repairs related to impact damage
                           to the Aircraft caused by ground handling equipment
                           or foreign objects. All repairs not covered by the
                           SRM or the AMM shall have been made in accordance
                           with the Manufacturer's approval if required, which
                           approval shall not be unreasonably be withheld and
                           shall be provided with complete data and
                           documentation to verify and substantiate their
                           certification and methods of compliance. A complete
                           listing of all repairs performed shall be supplied
                           together with the Aircraft.

Section 2.        Condition of Airframe.

         On the day of return, the Aircraft shall be as follows:

                  (a)      C Check Inspection - The Airframe shall have
                           completed, within 100 flight hours of return, the
                           next sequential C check or any multiple thereof. If
                           the Aircraft has logged more than 100 flight hours
                           since the last C check or any multiple thereof, then
                           Lessee shall perform the next scheduled C check or
                           any multiple thereof, as applicable. All observed
                           defects observed during such C check shall be
                           rectified at Lessee's expense, in accordance with the
                           Maintenance Program;

                  (b)      Structural and other scheduled Inspections - The
                           Airframe shall have at least twelve (12) months, or
                           two thousand (2,000) flight hours or cycles,
                           whichever is applicable or most limiting, remaining
                           before any scheduled structural tasks or maintenance
                           inspections which are not included in (a) above. In
                           the event that a structural task or maintenance
                           inspection interval is less than the above, Lessee
                           shall, at its expense, perform all such tasks
                           immediately prior to return of the Aircraft;

                                                                          Page 5
<Page>

                  (c)      Landing Gear Life - The main Landing Gear and the
                           nose Landing Gear shall have at least fifty percent
                           (50%) of the cycles remaining prior to removal for
                           overhaul in accordance with the Maintenance Program,
                           and the landing gear total cycles since new ("TCSN")
                           shall be no more than ten percent (10%) greater than
                           the airframe TCSN;

                  (d)      Brakes - The brakes shall have no less than the C
                           check brake wear limits with the brakes set at normal
                           parking break pressure. The tires shall have a
                           remaining useful life of at least fifty percent
                           (50%).

Section 3.        Condition of Controlled Components.

         Aircraft and Engine hour or cycle controlled components or parts, at
         time of return to Lessor, shall have remaining, as a minimum, one half
         life and/or fifty percent (50%) of the Lessee's approved hour or cycle
         limit, whichever is applicable or most limiting, before any scheduled
         removals for overhaul, test, disassembly or replacement. All components
         or parts controlled on a calendar basis shall have at least twelve (12)
         months or fifty percent (50%) of its total approved life in hours or
         cycles, if greater, remaining before scheduled removal for testing,
         overhaul or replacement.

         However, if a component or part has a life, overhaul or check interval
         limit that is less than the above, Lessee shall, at its expense,
         perform all such tasks immediately prior to return. All such hour/cycle
         or calendar controlled components or parts are defined as those
         components or parts controlled under the Maintenance Program.

Section 4.        Condition of Installed Engines and APU.

         At time of return, each Engine shall be capable of certificated, full
         rated performance and its life limited parts ("LLP") will have at least
         fifty percent (50%) of cycles between installation and replacement
         under the Maintenance Program.

                  (a)      Time remaining - Each Engine shall have completed no
                           more than 2,500 flight hours since new or since its
                           last full performance restoration shop visit at which
                           it was subject to a full engine management program
                           rework, based on the reliability goals set out in the
                           Rolls-Royce Alison workscope guide, which currently
                           state that the workscope is designed to give 30
                           degrees centigrade of exhaust gas temperature margin
                           and 5,000 flight hours of on-wing life. To the extent
                           that the shop workscope guide is amended in the
                           future to include different reliability goals then
                           the engine shall have at least fifty percent (50%) of
                           the on-wing hours remaining in accordance with such
                           amended shop workscope guide.

                  (b)      Borescope Inspection - On each installed Engine an
                           external visual inspection, accessory inventory check
                           and video-taped borescope inspection in accordance
                           with the requirements of the Maintenance Program
                           shall be performed by Lessee or a designated
                           representative as mutually agreed between Lessor and
                           Lessee during the ground inspection per Section 7(a)
                           of this Exhibit accompanied by a written report on
                           the findings of such inspection herein and
                           satisfactory evidence shall be provided to Lessor
                           reflecting the correction of any discrepancies found
                           during such inspection, which are in excess of the
                           Engine Manufacturer's Maintenance Manual
                           Airworthiness Limitations.

                                                                          Page 6
<Page>

                  (c)      Adverse Trend Data - Complete engine records,
                           including but not limited to (i) Group A (Lifed)
                           components (as listed in Engine Manufacturer's Time
                           Limits Manual) as approved by the FAA and (ii) in
                           flight performance data and (iii) shop visit reports
                           from all shop visits, shall be made available to
                           Lessor for review and evaluation. If the Aircraft
                           and/or engine historical and maintenance records
                           and/or trend monitoring indicate a rate of
                           acceleration in performance deterioration or oil
                           consumption on any installed engine beyond the limits
                           of the Maintenance Program, the causes of such
                           conditions shall have been corrected prior to the
                           return date.

                  (d)      Oil spectrum analysis - an oil spectrum analysis
                           shall be made on the installed Engines after the
                           Aircraft is removed from service and a written report
                           shall be made available together with the Aircraft.
                           Any discrepancies found in the engine's lubrication
                           system -which are in excess of the Engine
                           Manufacturer's Maintenance Manual Airworthiness
                           limitations shall have been corrected prior to the
                           return date.

                  (e)      APU Life - The installed APU shall have remaining at
                           least fifty percent (50%) of the expected mean time
                           before removal as evidenced by the Lessee's
                           demonstrated on-wing last two years average for APU
                           hours, before scheduled removal for overhaul, heavy
                           maintenance, or replacement of hour limited or LCF
                           parts at the time of return. The APU shall have a
                           video taped borescope inspection and magnetic plug
                           inspection during the ground inspection per Section
                           7(a) of this Exhibit D-1.

Section 5.        Provision for "Power-By-The Hour Agreements".

         If the Engines, APU, or any other hour or cycle controlled components
         on the day of return are maintained under valid PBH Agreements (as
         defined below) (and either have been maintained throughout the Term
         under PBH Agreements, or Lessee has made payments to the maintenance
         provider to cover the period in which such components where not under
         such PBH Agreements), under which the Lessee is current on all payments
         and otherwise in good standing, then, in lieu of the relevant
         requirements in Sections 2(c), 2(d), 3, 4(a) or 4(e) of this Exhibit
         D-1, the Lessee shall return each such component in such condition as
         shall make it eligible for continued maintenance under PBH Agreements,
         without additional costs, start-up charges, or overhaul requirements.
         For the purposes hereof, a "PBH Agreement" shall mean a
         "power-by-the-hour" maintenance program, provided by the Engines, APU
         or component manufacturer or its successor or designee, providing full
         maintenance (other than routine day-to-day maintenance; provided, that
         foreign-object damage and abuse may be excluded or separately charged)
         for the Engines, APU or such components at no cost other than standard
         per-cycle rates (i.e., excluding charges based on the current
         maintenance status of such component), all benefits of which program,
         including but not limited to the payments made by Lessee under such PBH
         Agreements while operating the Aircraft, shall be assignable or
         otherwise transferable to any other carrier. Notwithstanding the
         foregoing, each such Engine, APU and other hour or cycle controlled
         component shall have not less twelve months of expected time before
         overhaul or major refurbishment, whichever is applicable, based upon
         Lessee's average experience during the immediately preceding 2 year
         period.

                                                                          Page 7
<Page>

Section 6.    Return Condition Adjustment.

                  (a)      Each item referred to in Sections 2(c), 2(d), 3, the
                           first two lines of Section 4 and in Section 4(a) and
                           4(e) (each such item, an "Adjustable Item" and each
                           such section, an "Adjustable Return Condition") may
                           be returned with less than the required limits,
                           subject, however, to the minimum requirements set
                           forth in item (e) below.

                  (b)      If the Lessee does not meet the conditions set forth
                           for an Adjustable Item in the relevant Adjustable
                           Return Condition then Lessee shall pay to the Lessor
                           (for deficient condition) an Equivalency Payment in
                           accordance with the following formula:

                                                [*]

                  The components of the formula above shall be as agreed between
                  Lessor and Lessee. If Lessor and the Lessee fail to reach
                  agreement on any components of the above formula, such amount
                  will be determined as the average price that would be charged
                  by a third party to restore the Aircraft to the conditions
                  required under the Lease and this Exhibit D-1, based on one
                  quotation obtained by Lessor and one quotation obtained by
                  Lessee, both from a reputable, FAA and Manufacturer-approved
                  EMB-145 repair station in the United States. If the prices of
                  such quotations differ by more than [*], Lessor and Lessee
                  shall obtain a third quotation from another reputable, FAA and
                  Manufacturer-approved EMB-145 repair station in the United
                  States, the quotation which is farthest from the average of
                  all three quotations shall be disregarded and the average of
                  the two remaining quotations shall be binding upon Lessor and
                  Lessee as the components of the formula.

                  (c)      The Equivalency Payment for each return condition of
                           each Adjustable Item in the relevant Section referred
                           to in the first paragraph of this Section 6, whether
                           positive or negative, shall be aggregated in order to
                           determine the total Equivalency Payment due from
                           Lessee. (For clarification, items in more than the

----------
* Confidential

                                                                          Page 8
<Page>

                           required condition shall be netted against items in
                           less than the required condition when determining the
                           amount of the total payment due, provided however
                           that such netting is only applicable to the following
                           major components: Engines, APU and landing gear). If
                           the cumulative Equivalency Payment after such netting
                           is negative, it shall be deemed to be zero.

                  (d)      [intentionally omitted]

                  (e)      Notwithstanding the Equivalency Payment that may be
                           otherwise payable or available under this Section 6,
                           if:

                           (i)      Any installed Engine has less than the
                                    number of on-wing hours remaining before
                                    overhaul or major refurbishment, in
                                    accordance with the Maintenance Program, for
                                    such overhaul or major refurbishment to be
                                    scheduled not earlier than one year after
                                    the date of redelivery,

                           (ii)     Any Engine life limited part has a remaining
                                    useful life until the next scheduled
                                    replacement of not less than one year after
                                    the date of redelivery,

                           (iii)    The APU has remaining less than one year of
                                    the expected life before removal,

                           (iv)     The main landing gear or the nose landing
                                    gear has less than the number of cycles
                                    remaining prior to removal for overhaul, for
                                    such removal for overhaul to be scheduled
                                    not earlier than one year after the date of
                                    redelivery or, the cycles exceed one hundred
                                    and ten percent (110%) of the airframe
                                    cycles, or

                           (v)      The brakes have less than the C check brake
                                    wear limits with the brakes set at normal
                                    parking break pressure, or the tires have a
                                    remaining useful life of less than one year
                                    after the date of redelivery,

                  then, in any such case, Lessee shall, at its own cost and
                  expense, overhaul, refurbish and/or replace each non-complying
                  item so that it meets the applicable level specified in items
                  (i) through (v) above. For avoidance of doubt, this Section 6
                  shall be applicable whether or not the Engines, APU or any
                  other hour or cycle controlled component is maintained under a
                  PBH Agreement, as contemplated by Section 5.

Section 7.        Inspection Upon Return

         Lessor shall have the right to inspect the Aircraft upon return, and
         the following conditions shall apply:

                  (a)      Ground Inspection - The Aircraft, including the
                           Aircraft Documents, shall be made available to Lessor
                           for ground inspection by Lessor or its designee at
                           Lessee's facilities. Such inspection shall commence
                           no later than fourteen (14) Business Days prior to
                           the date of return of the Aircraft. Lessee shall
                           remove the Aircraft from scheduled service and open
                           the areas of the Aircraft as required to perform the
                           necessary checks as specified in Section 2 of this
                           Exhibit D-1. In

                                                                          Page 9
<Page>

                           addition, Lessee shall allow Lessor to accomplish its
                           inspection to determine that the Aircraft, including
                           the Aircraft Documents are in the condition set forth
                           in Sections 1, 2, 3 and 4 of this Exhibit D-1. During
                           such checks, Lessor's personnel shall have the right
                           to reasonably request that adjacent additional panels
                           or areas be opened in order to allow further
                           inspection by Lessor's personnel.

                  (b)      Operational Ground Check - Lessee shall conduct an
                           operations ground check on the Aircraft in accordance
                           with the Maintenance Program manual criteria for the
                           purpose of demonstrating to Lessor the satisfactory
                           operation of the systems, including a full fuel tank
                           leak check, pilot and static systems check and
                           hydraulic system internal leak check.

                  (c)      Operational Test Flight - The Aircraft shall be test
                           flown by Lessee, using qualified flight test
                           personnel, for the amount of time necessary to
                           satisfactorily demonstrate the airworthiness of the
                           Aircraft and the proper functioning of all systems
                           and components in accordance with the agreed check
                           flight procedures. During such test flight command,
                           care, custody and control of the Aircraft shall
                           remain at all times with Lessee. Up to five (5) of
                           Lessor's designated representatives (or more if
                           mutually agreed) may participate in such flight as
                           observers. Upon completion of such operational
                           flight-testing, the representatives of Lessee and
                           Lessor participating in such testing shall agree in
                           writing upon any discrepancies required to be
                           corrected by Lessee in order to comply with the
                           conditions required hereunder.

                  (d)      Discrepancies - If requested by Lessor in writing,
                           all discrepancies, which are noted during the
                           inspection and acceptance flight(s), shall be
                           corrected at Lessee's expense. If such discrepancies
                           are substantiated by the Maintenance Program and
                           Lessor determines that repairs, modifications or
                           other work items are required to cause the Aircraft
                           to comply with the requirements provided herein,
                           including, without limitation, any maintenance
                           required so that the Engines will meet all Engine
                           parameters and trends specified by the Maintenance
                           Program, Lessee shall cause such repairs and other
                           work items to be commenced and completed prior to
                           return.

Section 8.        Delegation.

         Lessee agrees that whenever a determination under this Exhibit D-1 is
to be made by, or a right is granted to, the Lessor, the Lessor may, at its
option, allow the Manufacturer to make such determination or exercise such
right.

Section 9.        Definitions.

         For the purpose of this Exhibit D-1, the following terms have the
following meanings:

          "APU" shall mean the auxiliary power unit bearing serial number
         __________, and any substitute APU which may from time to time be
         substituted therefor pursuant to the terms of the Lease.

                                                                         Page 10
<Page>

         "CALENDAR CONTROLLED COMPONENTS OR PARTS" means those components or
         parts, which are identified in the MRB Report which have maintenance
         tasks at specific calendar-time intervals.

         "CYCLE-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
         which are identified in the MRB Report which have maintenance tasks at
         specific flight-cycle intervals.

         "HOUR-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
         which are identified in the MRB Report which have maintenance tasks at
         specific flight-hour intervals.

         "LIFE CYCLE FATIGUE ("LCF") PARTS" means those rotating parts which
         have specific cycle limits as specified by the manufacturer to preclude
         cycle fatigue failures.

         "MAINTENANCE REVIEW BOARD REPORT ("MRB REPORT")" means the report
         published by the maintenance review board detailing the intervals and
         description of the maintenance tasks and, where applicable, the life
         limits required for continued airworthiness of the Aircraft. Where the
         intervals specified in the MRB Report differ from the limit specified
         by the component manufacturer, the MRB Report shall take precedence.

         "TERMINATING ACTION" means the alteration or modification of the
         Aircraft in accordance with mandatory service bulletins, orders,
         airworthiness directives, and instructions required to eliminate
         repetitive inspections or maintenance action.

                                                                         Page 11

<Page>

                                                                     Exhibit D-2

                                RETURN CONDITIONS

     This Exhibit D-2 shall be applicable only if Beneficiary notifies Lessee
not later than one hundred eighty (180) days prior to the end of the Basic Term
that Beneficiary is demanding payment of a deficiency amount under the Residual
Value Guarantee except that this Exhibit D-2 shall be assumed to apply for the
purposes stated in the definition of "RVG Appraisal Procedure".

Section 1. General Conditions.

     At the time of return, the Aircraft shall (i) have been continuously and
     currently maintained in accordance with the Maintenance Program, (ii)
     comply with the Maintenance Program as authorized by the FAA, in each case
     as if the Aircraft were to be kept in further commercial passenger service
     by Lessee, and (iii) meet the following requirements:

          (a)  Operating Condition - The Aircraft shall be in good operating
               condition, ordinary wear and tear excepted, with all of the
               Aircraft equipment, components, and systems functioning in
               accordance with their intended use irrespective of variations or
               deviations authorized by the Minimum Equipment List or
               Configuration Deviation List. All replacement equipment, parts,
               components or items installed on the Aircraft shall be
               manufactured by the original manufacturer approved by the
               Manufacturer or a manufacturer holding requisite authority of the
               FAA, and in case of used, rotable parts, have an FAA-approved
               serviceable tag.

          (b)  Configuration - The Aircraft shall be in the same passenger
               configuration with all equipment installed therein as the
               Aircraft was when delivered under the Manufacturer Purchase
               Agreement, ordinary wear and tear excepted, including
               replacements and substitute parts and equipment. The Aircraft
               shall not suffer any modification or alteration (hereinafter
               "Modifications") after the Delivery Date provided however that
               Lessee may make Modifications to the Aircraft as long as they are
               included as factory-installed features in EMB-145 aircraft
               delivered to the Lessee subsequent to the delivery of the
               Aircraft. The term Modifications shall be deemed to include, but
               not be limited to (i) changes to the Aircraft structure,
               performance, weight and balance, (ii) changes which materially
               adversely affect the Aircraft's flight qualities, operational
               characteristics, operational safety, ease or cost of maintenance,
               spare parts interchangeability or replaceability, and (iii)
               substitution of different types of equipment or accessories which
               are not equivalent in cost value and/or operation capability to
               the equipment or accessories being replaced, and shall exclude
               (x) changes pursuant to service bulletins issued by the
               Manufacturer or the OEMs, and (y) mandatory changes required to
               be accomplished by Lessee hereunder. All permitted Modifications
               made to the Aircraft shall be in accordance with FAA-approved
               data, and Lessee shall provide complete data and documentation to
               substantiate their certification, approval, and methods of
               compliance (including, without limitation, a copy of the Aircraft
               Illustrated Parts Catalog and a copy of the Aircraft Interior
               Configuration document). A complete listing of all modifications
               and repairs performed shall be supplied together with the
               Aircraft.
                                   Exhibit D-2                            Page 1
<Page>

               Modifications, other than permitted ones, shall be removed and
               the appropriate repairs to the Aircraft made prior to the day of
               return of the Aircraft.

          (c)  Certification - The Aircraft shall have, a valid and effective
               Certificate of Airworthiness of the type "Transport, Category
               (Passengers)" issued by the FAA, and shall be in full compliance
               with, and capable of registration under, the provisions of Part
               121 of the U.S. Federal Aviation Regulations (or any successor
               legislation) and other US regulations applicable to the
               Aircraft's operation and continued airworthiness, without any
               restrictions, corrections, repairs, limitations, modifications or
               alterations or overhauls having to be performed to meet such
               standards.

          (d)  General Appearance - The Aircraft shall be clean by commercial
               passenger airline standards, cosmetically acceptable, interior
               complete, and prepared to be placed into scheduled revenue
               airline operations. Interior items which may be broken shall be
               repaired or replaced. All decals, signs and placards shall be
               clean, secure and legible in the English language. The Aircraft
               shall meet the following minimum requirements:

               (i)   Fuselage, Wings and Empennage - The fuselage shall be
                     within Maintenance Program approved limits regarding dents
                     and abrasions and loose or pulled rivets; all leading edges
                     shall be within Maintenance Program approved limits
                     regarding damage occurring since delivery; the airframe,
                     Engines and wings shall be free of fuel, oil and hydraulic
                     leaks so as to allow unrestricted operation; all leading
                     edges and fuselage areas which are aerodynamically critical
                     shall be free of any scab patches other than those required
                     by the Manufacturer and shall be repaired with repairs
                     which are permanent in nature in accordance with the SRM,
                     or are made in accordance with the Manufacturer's approval.

               (ii)  Interior - Ceilings, sidewalls, bulkhead panels shall be
                     clean, free of cracks and within Maintenance Program
                     approved limits regarding dents; all carpets and seat
                     covers shall be in good condition and clean and meet FAR
                     fire resistance regulations; all seats shall be serviceable
                     and in good condition. All safety equipment shall be
                     installed at the correct stations, a loose equipment check
                     list and location drawings shall accompany the Aircraft and
                     a loose equipment inventory shall be drawn up on the
                     Delivery Date and checked on the day of return of the
                     Aircraft.

               (iii) Cockpit - All fairing panels shall be free of cracks and
                     shall be clean; all floor coverings shall be clean and
                     effectively sealed and secured, all seat covers and
                     cushions shall be in good condition and clean and shall, as
                     applicable, conform to FAA fire resistance regulations. All
                     seats shall be fully serviceable and in good condition. All
                     instruments and light panels shall be clean, secure and
                     legible, function in accordance with their intended purpose
                     and have all lighting operating properly.

               (iv)  Landing, Gear and Wheel Wells - The landing gear and all
                     wheel wells shall be clean, free of leaks, and repaired as
                     necessary. The main and

                                   Exhibit D-2                            Page 2
<Page>

                     nose landing gear components and their associated actuators
                     and parts shall be in a good operating condition.

               (v)   Cargo Compartment, Galleys and Toilets - All cargo
                     compartment panels shall be installed and be in good
                     condition so as to comply with extended range operations
                     requirements. The cargo compartments, galleys and toilet of
                     the Aircraft shall be in a clean and presentable condition
                     and all cargo securing system components shall be
                     serviceable; all galley inserts (to the extent delivered
                     with the Aircraft) shall be redelivered with the Aircraft.

               (vi)  Windows - Any delamination, and crazing of the windshields
                     and cabin windows of the Aircraft shall be within approved
                     limits of the Maintenance Program and shall be properly
                     sealed.

               (vii) Doors - All the doors of the Aircraft shall be free moving,
                     correctly rigged and properly sealed and all door assist
                     mechanisms shall be charged in accordance with the AMM.

          (e)  Airworthiness Directives and Service Bulletins - All FAA
               Airworthiness Directives and amendments or changes to Aviation
               Regulations issued by the FAA and applicable to the Aircraft
               which require compliance within a period of six (6) months
               following the day of return of the Aircraft (or the equivalent
               hours or cycles, based on the Lessee's EMB-145 last four 4) years
               of operation average monthly utilization) shall have been
               accomplished on a Terminating Action basis and in compliance with
               the issuing agency's and the manufacturer's associated service
               bulletins, regardless of any operator-specific waiver, deferral,
               or deviation from such directive or regulation. The Aircraft
               shall have installed on it all Manufacturer and OEM service
               bulletin kits requested by Lessee and actually received by Lessee
               in respect of the Aircraft, and if not installed, Lessee shall
               deliver them together with the Aircraft at no charge.

          (f)  Deferred Maintenance - The Aircraft shall be free of all deferred
               or carried over maintenance items, including without limitation,
               any pilot log book reports, maintenance reports, and the
               Aircraft's Central Maintenance Computer reports. Any such
               deferred or carried over maintenance shall be promptly
               accomplished in a terminating manner prior to the return of the
               Aircraft at the end of the term of the Lease.

          (g)  Corrosion - The Maintenance Program shall include a corrosion
               control program based on the corrosion prevention, treatment and
               correction criteria recommended by the Manufacturer in the CPCP.
               The Aircraft shall be free from corrosion or shall have been
               adequately treated in compliance with the Maintenance Program.
               Complete details of the corrosion control program, as well as a
               summary of specific corrosion correction, of the Aircraft in
               accordance with the Maintenance Program shall be available for
               delivery together with the Aircraft. This summary shall include
               Lessee's identifying the Manufacturer's task identifier and cross
               referencing, Lessee's identifier indicating status of
               accomplishment and findings and incorporation status relative to
               all

                                   Exhibit D-2                            Page 3
<Page>

               recommended corrective and preventative actions. The hydraulic
               system and fuel tanks shall be free from contamination as
               demonstrated by a laboratory report to be performed after the
               Aircraft is removed from service and delivered together with the
               Aircraft.

          (h)  Leased Components - The Aircraft shall be free and clear of all
               Liens other than any Lessor's Liens and at return shall not have
               installed thereon any equipment, components and/or parts which
               are leased or loaned or otherwise owned by a third party.

          (i)  Records - The Aircraft shall be accompanied by all Aircraft
               Documents. The Aircraft Documents shall be provided in English,
               and be in good condition, readable and capable of being
               reproduced.

               (i)   All Parts, components and assemblies identified with
                     safe-life, hard time or condition monitored limits (to the
                     extent that such condition monitored items are to be
                     tracked in accordance with the approved Maintenance
                     Program) shall be provided with part number, serial number,
                     their service histories, accumulated cycles and flight
                     hours, safe-life, hard time or condition monitored limits
                     and remaining service lives on a separate listing and where
                     practicable, be physically verified as installed and have
                     hard copy documentation (i.e., appropriate overhaul or
                     serviceable vendor tags and work orders) to verify their
                     service histories.

               (ii)  All components and assemblies, which are, identified on the
                     maintenance records by part numbers and/or serial numbers
                     other than the Manufacturer's or other manufacturer's shall
                     be provided with two-way cross-reference listing necessary
                     to establish complete traceability.

               (iii) All documentation, flight records, and maintenance records
                     as specified herein and as specified by Federal Aviation
                     Regulations Sections 121.380, and, as applicable, Section
                     91.417 and 91.419 (or FAR's as amended), and which normally
                     accompany the transfer of an aircraft or engine shall be
                     delivered together with the Aircraft. In the event of
                     missing or incomplete records, the tasks necessary to
                     produce such complete records shall be accomplished in
                     accordance with the Maintenance Program prior to return of
                     the Aircraft.

               (iv)  All documentation and records shall be in English and shall
                     be made available for inspection in the location they are
                     normally kept which location shall permit direct access to
                     the Aircraft, at least 14 Business Days before the day of
                     return of the Aircraft.

               (v)   Any and all documentation, data, drawings, records and
                     manuals as required to be maintained by the FAA and SMRD,
                     shall be provided, regardless of whether such information
                     is considered proprietary.

               (vi)  Hard Landing inspection reports, Lightning Strike
                     inspection reports or High Intensity Radiated Field (HIRF)
                     check reports as may be required

                                   Exhibit D-2                            Page 4
<Page>

                     should Aircraft records show evidence of any occurrence
                     indicating such inspections or checks to be necessary.

               (vii) Corrosion Prevention & Control Program (CPCP) inspection
                     findings and correction reports, as required by the
                     Maintenance Program.

          The head of Lessee's quality control department shall sign a statement
          certifying that the data and information contained in the
          documentation and records are true and correct.

          (j)  Exterior Markings - At time of return of the Aircraft, Lessee
               shall, at its cost remove from the exterior and interior of the
               Aircraft Lessee's operator specific exterior and interior
               markings. The area where such markings were removed or painted
               over shall be refurbished by Lessee as necessary to blend in with
               the surrounding surface in a good and workmanlike manner.

          (k)  Overhaul and Repair - All components, rotables, and assemblies
               (including the Engines, APU, and landing gears) shall be
               documented with work orders, vendor serviceable tags, 8130 tags,
               form 337, etc. to have been repaired or overhauled by
               FAA-certified repair stations in such manner so that such
               components, rotables, assemblies, Engines, APU, and landing gears
               are approved by the FAA for use on United States-registered and
               certified aircraft. All overhaul and repair procedures shall have
               met all FAA requirements necessary to transfer to a new operator
               under Part 121 of the U.S. Federal Aviation Regulations.

          (l)  Structural Repairs - All repairs that were performed since the
               Delivery Date and that then exist on the Aircraft shall conform
               to the SRM and the AMM and shall have FAA approval if required,
               including without limitation repairs related to impact damage to
               the Aircraft caused by ground handling equipment or foreign
               objects. All repairs not covered by the SRM or the AMM shall have
               been made in accordance with the Manufacturer's approval if
               required, which approval shall not be unreasonably be withheld
               and shall be provided with complete data and documentation to
               verify and substantiate their certification and methods of
               compliance. A complete listing of all repairs performed shall be
               supplied together with the Aircraft.

Section 2. Condition of Airframe.

     On the day of return, the Aircraft shall be as follows:

          (a)  C Check Inspection - The Airframe shall have completed, within
               100 flight hours of return, the next sequential C check or any
               multiple thereof. If the Aircraft has logged more than 100 flight
               hours since the last C check or any multiple thereof, then Lessee
               shall perform the next scheduled C check or any multiple thereof,
               as applicable. All observed defects observed during such C check
               shall be rectified at Lessee's expense, in accordance with the
               Maintenance Program;

          (b)  Structural and other scheduled Inspections - The Airframe shall
               have at least twelve (12) months, or two thousand (2,000) flight
               hours or cycles, whichever is applicable or most limiting,
               remaining before any scheduled structural tasks or

                                   Exhibit D-2                            Page 5
<Page>

               maintenance inspections which are not included in (a) above. In
               the event that a structural task or maintenance inspection
               interval is less than the above, Lessee shall, at its expense,
               perform all such tasks immediately prior to return of the
               Aircraft;

          (c)  Landing Gear Life - The main Landing Gear and the nose Landing
               Gear shall have at least fifty percent (50%) of the cycles
               remaining prior to removal for overhaul in accordance with the
               Maintenance Program, and the landing gear total cycles since new
               ("TCSN") shall be no more than ten percent (10%) greater than the
               airframe TCSN;

          (d)  Brakes - The brakes shall have no less than the C check brake
               wear limits with the brakes set at normal parking break pressure.
               The tires shall have a remaining useful life of at least fifty
               percent (50%).

Section 3. Condition of Controlled Components.

     Aircraft and Engine hour or cycle controlled components or parts, at time
     of return to Lessor, shall have remaining, as a minimum, one half life
     and/or fifty percent (50%) of the Lessee's approved hour or cycle limit,
     whichever is applicable or most limiting, before any scheduled removals for
     overhaul, test, disassembly or replacement. All components or parts
     controlled on a calendar basis shall have at least twelve (12) months or
     fifty percent (50%) of its total approved life in hours or cycles, if
     greater remaining before scheduled removal for testing, overhaul or
     replacement.

     However, if a component or part has a life, overhaul or check interval
     limit that is less than the above, Lessee shall, at its expense, perform
     all such tasks immediately prior to return. All such hour/cycle or calendar
     controlled components or parts are defined as those components or parts
     controlled under the Maintenance Program.

Section 4. Condition of Installed Engines and APU.

     At time of return, each Engine shall be capable of certificated, full rated
     performance and its life limited parts ("LLP") will have at least fifty
     percent (50%) of cycles between installation and replacement under the
     Maintenance Program.

          (a)  Time remaining - Each Engine shall have completed no more than
               2,500 flight hours since new or since its last full performance
               restoration shop visit at which it was subject to a full engine
               management program rework, based on the reliability goals set out
               in Rolls-Royce Alison workscope guide, which currently state that
               the workscope is designed to give 30 degrees centigrade of
               exhaust gas temperature margin and 5,000 flight hours of on-wing
               life. To the extent that the shop workscope guide is amended in
               the future to include different reliability goals then the engine
               shall have at least fifty percent (50%) of the on-wing hours
               remaining in accordance with such amended shop workscope guide.

          (b)  Borescope Inspection - On each installed Engine an external
               visual inspection, accessory inventory check and video-taped
               borescope inspection in accordance with the requirements of the
               Maintenance Program shall be performed by Lessee or a designated
               representative as mutually agreed between Lessee and Lessor

                                   Exhibit D-2                            Page 6
<Page>

               during the ground inspection per Section 7(a) of this Exhibit D-2
               accompanied by a written report on the findings of such
               inspection herein and satisfactory evidence shall be provided to
               Lessor reflecting the correction of any discrepancies found
               during such inspection.

          (c)  Adverse Trend Data - Complete engine records, including but not
               limited to (i) Group A (Lifed) components (as listed in Engine
               Manufacturer's Time Limits Manual) as approved by the FAA and
               (ii) in flight performance data and (iii) shop visit reports from
               all shop visits, shall be made available to Lessor for review and
               evaluation. If the Aircraft and/or engine historical and
               maintenance records and/or trend monitoring indicate a rate of
               acceleration in performance deterioration or oil consumption on
               any installed engine beyond the limits of the Maintenance
               Program, the causes of such conditions shall have been corrected
               prior to the return date.

          (d)  Oil spectrum analysis - an oil spectrum analysis shall be made on
               the installed Engines after the Aircraft is removed from service
               and a written report shall be made available together with the
               Aircraft. Any discrepancy found in the engine's lubrication
               system shall have been corrected prior to the return date.

          (e)  APU Life - The installed APU shall have remaining at least fifty
               percent (50%) of the expected mean time before removal as
               evidenced by the Lessee's demonstrated on-wing last two years
               average for APU hours, before scheduled removal for overhaul,
               heavy maintenance, or replacement of hour limited or LCF parts at
               the time of return. The APU shall have a video taped borescope
               inspection and magnetic plug inspection during the ground
               inspection per Section 7(a) of this Exhibit D-2.

Section 5. Provision for "Power-By-The Hour Agreements".

     If the Engines, APU, or any other hour or cycle controlled components on
     the day of return are maintained under valid PBH Agreements (as defined
     below) (and either have been maintained throughout the Term under PBH
     Agreements, or Lessee has made payments to the maintenance provider to
     cover the period in which such components where not under such PBH
     Agreements), under which the Lessee is current on all payments and
     otherwise in good standing, then, in lieu of the relevant requirements in
     Sections 2(c), 2(d), 3, 4(a) or 4(e) of this Exhibit D-2, the Lessee shall
     return each such component in such condition as shall make it eligible for
     continued maintenance under PBH Agreements, without additional costs,
     start-up charges, or overhaul requirements. For the purposes hereof, a "PBH
     Agreement" shall mean a "power-by-the-hour" maintenance program, provided
     by the Engines, APU or component manufacturer or its successor or designee,
     providing full maintenance (other than routine day-to-day maintenance;
     provided, that foreign-object damage and abuse may be excluded or
     separately charged) for the Engines, APU or such components at no cost
     other than standard per-cycle rates (i.e., excluding charges based on the
     current maintenance status of such component), all benefits of which
     program, including but not limited to the payments made by Lessee under
     such PBH Agreements while operating the Aircraft, shall be assignable or
     otherwise transferable to any other carrier without restrictions of any
     kind.

                                   Exhibit D-2                            Page 7
<Page>

Section 6. Return Condition Adjustment.

          (a)  Each item referred to in Sections 2(c), 2(d), 3, the first two
               lines of Section 4 and in Section 4(a) and 4(e) (each such item,
               an "Adjustable Item" and each such section, an "Adjustable Return
               Condition") may be returned with less than the required limits,
               subject, however, to the minimum requirements set forth in item
               (e) below.

          (b)  If the Lessee does not meet the conditions set forth for an
               Adjustable Item in the relevant Adjustable Return Condition then
               Lessee shall pay to the Lessor (for deficient condition) an
               Equivalency Payment in accordance with the following formula:

                                        [*]

          The components of the formula above shall be as agreed between Lessor
          and the Lessee. If Lessor and the Lessee fail to reach agreement on
          any components of the above formula, such amount will be determined as
          the average price that would be charged by a third party to restore
          the Aircraft to the conditions required under the Lease and this
          Exhibit D-2, based on one quotation obtained by Lessor and one
          quotation obtained by Lessee, both from a reputable, FAA and
          Manufacturer-approved EMB-145 repair station in the United States. If
          the prices of such quotations differ by more than ten percent (10%),
          Lessor and Lessee shall obtain a third quotation from another
          reputable, FAA and Manufacturer-approved EMB-145 repair station in the
          United States, the quotation which is farthest from the average of all
          three quotations shall be disregarded and the average of the two
          remaining quotations shall be binding upon Lessor and Lessee as the
          components of the formula.

          (c)  The Equivalency Payment for each return condition of each
               Adjustable Item in the relevant Section referred to in the first
               paragraph of this Section 6, whether positive or negative, shall
               be aggregated in order to determine the total Equivalency Payment
               due from Lessee. (For clarification, items in more than the

                                   Exhibit D-2                            Page 8

----------
* Confidential

<Page>

               required condition shall be netted against items in less than the
               required condition when determining the amount of the total
               payment due, provided however that such netting is only
               applicable to the following major components: Engines, APU and
               landing gear). If the cumulative Equivalency Payment after such
               netting is negative, it shall be deemed to be zero.

          (d)  In no event shall the Equivalency Payment due from the Lessee to
               the Manufacturer exceed the aggregate amount of any payment and
               expenses that the Manufacturer may make under the Residual Value
               Guarantee.

          (e)  Notwithstanding the equivalency charges that may be otherwise
               payable or available under this Section 6, if:

               (i)   Any installed Engine has completed more than 3,750 flight
                     hours since new or since its last full performance
                     restoration shop visit at which it was subject to a full
                     engine management program rework (or less than twenty-five
                     percent (25%) of the on-wing hours remaining in accordance
                     with an amended RR Allison shop workscope guide),

               (ii)  Any Engine life limited part has a remaining useful life
                     until the next scheduled replacement of less than twenty
                     five percent (25%),

               (iii) The APU has remaining less than twenty five (25%) of the
                     expected mean time before removal,

               (iv)  The main landing gear or the nose landing gear has less
                     than twenty five percent (25%) of the cycles remaining
                     prior to removal for overhaul, or the cycles exceed one
                     hundred and ten percent (110%) of the airframe, or

               (v)   The brakes have less than the C check brake wear limits
                     with the brakes set at normal parking break pressure, or
                     the tires have a remaining useful life of less than twenty
                     five percent (25%),

     then, in any such case, Lessee shall, at its own cost and expense,
     overhaul, refurbish and/or replace each non-complying item so that it meets
     the applicable level specified in items (i) through (v) above.

Section 7. Inspection Upon Return

     Lessor shall have the right to inspect the Aircraft upon return, and the
following conditions shall apply:

          (a)  Ground Inspection - The Aircraft including the Aircraft Documents
               shall be made available to Lessor for ground inspection by Lessor
               or its designee at Lessee's facilities. Such inspection shall
               commence no later than fourteen (14) Business Days prior to the
               date of return of the Aircraft. Lessee shall remove the Aircraft
               from scheduled service and open the areas of the Aircraft as
               required to

                                   Exhibit D-2                            Page 9
<Page>

               perform the necessary checks as specified in Section 2 of this
               Exhibit D-2. In addition, Lessee shall allow Lessor to accomplish
               its inspection to determine that the Aircraft, including the
               Aircraft Documents are in the condition set forth in Sections 1,
               2, 3 and 4 of this Exhibit D-2. During such checks, Lessor's
               personnel shall have the right to reasonably request that
               adjacent additional panels or areas be opened in order to allow
               further inspection by Lessor's personnel.

          (b)  Operational Ground Check - Lessee shall conduct an operations
               ground check on the Aircraft in accordance with the Maintenance
               Program manual criteria for the purpose of demonstrating to
               Lessor the satisfactory operation of the systems, including a
               full fuel tank leak check, pilot and static systems check and
               hydraulic system internal leak check.

          (c)  Operational Test Flight - The Aircraft shall be test flown by
               Lessee, using qualified flight test personnel, for the amount of
               time necessary to satisfactorily demonstrate the airworthiness of
               the Aircraft and the proper functioning of all systems and
               components in accordance with the agreed check flight procedures.
               During such test flight command, care, custody and control of the
               Aircraft shall remain at all times with Lessee. Up to five (5) of
               Lessor's designated representatives (or more if mutually agreed)
               may participate in such flight as observers. Upon completion of
               such operational flight-testing, the representatives of Lessee
               and Lessor participating in such testing shall agree in writing
               upon any discrepancies required to be corrected by Lessee in
               order to comply with the conditions required hereunder.

          (d)  Discrepancies - If requested by Lessor in writing, all
               discrepancies, which are noted during the inspection and
               acceptance flight(s), shall be corrected at Lessee's expense. If
               such discrepancies are substantiated by the Maintenance Program
               and Lessor determines that repairs, modifications or other work
               items are required to cause the Aircraft to comply with the
               requirements provided herein, including, without limitation, any
               maintenance required so that the Engines will meet all Engine
               parameters and trends specified by the Maintenance Program,
               Lessee shall cause such repairs and other work items to be
               commenced and completed prior to return.

Section 8. Delegation.

     Lessee agrees that whenever a determination under this Exhibit D-2 is to be
made by, or a right is granted under this Exhibit D-2 to, the Lessor, the Lessor
may, at its option, allow the Manufacturer to act as the authorized
representative of the Lessor and make such determination or exercise such right.

Section 9. Definitions.

     For the purpose of this Exhibit D-2, the following terms have the following
meanings:

         "RVG APPRAISAL PROCEDURE" means this procedure shall apply only if
         Lessee exercises the FMV Purchase Option and Beneficiary provides a
         Residual Notice pursuant to Section 3 of Exhibit A-2 of the Lease and
         shall be used in such case to determine the Fair Market Sales Value of
         the Aircraft as herein provided. Manufacturer, Beneficiary and Lessee
         shall, within thirty (30)

                                   Exhibit D-2                           Page 10
<Page>

     calendar days after Beneficiary has delivered a Residual Notice, each
     obtain appraisal values from a recognized independent appraiser (one to be
     selected by Manufacturer, one by Beneficiary, and one by Lessee), and the
     average value as determined by the appraisers shall be binding on
     Manufacturer, Beneficiary and Lessee; provided that if the value or values
     determined by one or more of the appraisers differs from the average of the
     values determined by all three appraisers by more than five percent (5%) of
     such average, the value which differs the most from such average shall be
     excluded, and the average of the values determined by the other two
     appraisers shall be binding on Manufacturer, Beneficiary and Lessee.
     Manufacturer, Beneficiary and Lessee shall each pay its own appraiser. Each
     appraiser must be associated with a professional organization of aircraft
     appraisers and each appraisal shall be conducted pursuant to ISTAT 1994 (or
     any successor) appraisal methods, definitions and assumptions. Fair Market
     Sales Value as determined hereunder shall mean the value that would be
     obtained in an arms'-length transaction between an informed and willing
     buyer-user (other than a lessee currently in possession or a used equipment
     dealer) under no compulsion to buy and an informed and willing seller under
     no compulsion to sell. In determining Fair Market Sales Value, it will be
     assumed that the Aircraft is in the condition, location and overhaul status
     in which it is required to be returned to the Lessor pursuant to Article
     XVIII of the Lease, without allowance for any return condition adjustments
     otherwise permitted by Section 6 of this Section D-2, that Exhibit D-2 of
     the Lease will apply, that the Lessee has removed all Parts which it is
     entitled to remove pursuant to Article IX of the Lease and that the
     Aircraft is not encumbered by the Lease or any Lien.

     "APU" shall mean the auxiliary power unit bearing serial number __________,
     and any substitute APU which may from time to time be substituted therefor
     pursuant to the terms of the Lease.

     "CALENDAR CONTROLLED COMPONENTS OR PARTS" means those components or parts,
     which are identified in the MRB Report which have maintenance tasks at
     specific calendar-time intervals.

     "CYCLE-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
     which are identified in the MRB Report which have maintenance tasks at
     specific flight-cycle intervals.

     "HOUR-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
     which are identified in the MRB Report which have maintenance tasks at
     specific flight-hour intervals.

     "LIFE CYCLE FATIGUE ("LCF") PARTS" means those rotating parts which have
     specific cycle limits as specified by the manufacturer to preclude cycle
     fatigue failures.

     "MAINTENANCE REVIEW BOARD REPORT ("MRB REPORT")" means the report published
     by the maintenance review board detailing the intervals and description of
     the maintenance tasks and, where applicable, the life limits required for
     continued airworthiness of the Aircraft. Where the intervals specified in
     the MRB Report differ from the limit specified by the component
     manufacturer, the MRB Report shall take precedence.

     "TERMINATING ACTION" means the alteration or modification of the Aircraft
     in accordance with mandatory service bulletins, orders, airworthiness
     directives, and instructions required to eliminate repetitive inspections
     or maintenance action.

                                   Exhibit D-2                           Page 11

<Page>

                                                                  EXHIBIT E-1 TO
                                                          THE PURCHASE AGREEMENT

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

          THIS ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of ___________,
________ between [_____________________] (the "TRANSFEREE") and
________________________________________ (the "TRANSFEROR").

                              W I T N E S S E T H:

          WHEREAS, the Transferor is a party to an Aircraft Purchase Agreement
[N288SK], dated as of June 5, 2001 among Solitair Corp., Chautauqua Airlines,
Inc. (the "Lessee"), the Transferor and Wells Fargo Bank Northwest, National
Association, not in its individual capacity (except as otherwise expressly
provided therein) but solely as Owner Trustee (as the same may be from time to
time amended, the "PURCHASE AGREEMENT") and certain other Transaction Documents
(as defined herein);

          WHEREAS, the Transferor desires to sell and assign to the Transferee
[all of]/[an undivided interest in] its right, title and interest in, to and
under the Trust Agreement (as defined in the Purchase Agreement) (except as
reserved below), and the Transferee desires to (i) purchase and accept from the
Transferor the assignment of [all of]/[such undivided interest in] the
Transferor's right, title and interest in, to and under the Trust Agreement
(except as reserved below) and (ii) assume the Assumed Obligations (as defined
herein); and

          WHEREAS, capitalized terms used herein without definition and which
are defined in the Purchase Agreement are used herein with the respective
meanings given such terms in the Purchase Agreement;

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

          1. ASSIGNMENT. Effective as of the date hereof (the "TRANSFER DATE"),
the Transferor hereby irrevocably sells, assigns, transfers, conveys and sets
over to the Transferee [all of]/[an undivided interest in ___ portion of] its
right, title and interest in, to and under the Trust Estate, the Purchase
Agreement, the Trust Agreement, the Tax Indemnity Agreement and all other
Operative Documents (as defined in the Purchase Agreement), agreements,
contracts, documents and instruments executed and delivered at any time prior to
the execution and delivery of this Agreement in connection with any of the
foregoing (the "TRANSACTION DOCUMENTS"), and any proceeds therefrom, except such
rights of the Transferor as have arisen or accrued prior to the Transfer Date
(such excepted rights to include, without limitation, the right to receive any
amounts due or accrued to the Transferor under any Transaction Document as of a
date prior to the Transfer Date and the right to enforce any terms under the
Purchase Agreement

                                                           Exhibit E-1 -- Page 1
<Page>

or the Tax Indemnity Agreement with respect to acts or events occurring prior to
the Transfer Date).

          2. ASSUMPTION. The Transferee hereby assumes all of the obligations,
liabilities and duties of the Transferor arising from and after the Transfer
Date under each Transaction Document [with respect to the undivided interest
therein transferred hereunder] (the "ASSUMED OBLIGATIONS") and confirms that
from and after the Transfer Date it shall be deemed a party to each Transaction
Document to which the Transferor is a party and shall be bound by all the terms
thereof (including the agreements and obligations of the Transferor set forth
therein) as if it were named as the Transferor therein.

          3. FURTHER ASSURANCES. Each party hereto shall, at any time and from
time to time, upon the request of the other party hereto, promptly and duly
execute and deliver any and all such further instruments and documents and take
such further action as the other party may reasonably request to obtain the full
benefits of this Agreement and of the rights and powers herein granted.

          4. REPRESENTATIONS AND WARRANTIES. The Transferee hereby represents
and warrants to the other parties hereto that:

          (a) ORGANIZATION; AUTHORITY. The Transferee (i) is a __________ duly
organized, validly existing and in good standing under the laws of
___________________ and (ii) has the full [corporate] power and authority to
conduct its business as presently conducted, to own or hold under lease its
properties and to execute, deliver and perform this Agreement and to perform the
Assumed Obligations.

          (b) DUE AUTHORIZATION. The execution, delivery and performance of this
Agreement and the performance of the Assumed Obligations have been duly
authorized by all necessary corporate action on the part of the Transferee.

          (c) CONFLICT. The execution, delivery and performance by the
Transferee of this Agreement and the performance of the Assumed Obligations and
the consummation or performance by the Transferee of the transactions
contemplated thereby will not conflict with or result in any violation of,
constitute a default under, or result in the creation of any Lien upon any
property of the Transferee under, any term of the Certificate of Incorporation
or By-laws of the Transferee or any agreement, mortgage, contract, indenture,
lease or other instrument, or any Applicable Law, by which the Transferee or its
properties or assets are bound, except for any such violation, conflict or
default which would not have a material adverse effect on the Transferee or its
ability to perform the Assumed Obligations.

          (d) GOVERNMENT CONSENTS. Neither the execution or delivery of this
Agreement and the performance of the Assumed Obligations nor the consummation of
any of the transactions contemplated hereby or thereby by the Transferee
requires the consent or approval of, the giving of notice to, the registration
with, or the taking of any other action in respect of any United States federal,
state or other governmental authority or agency, including any judicial body,
that would be required to be taken or obtained by the Transferee.

                                                           Exhibit E-1 -- Page 2
<Page>

          (e) LEGAL, VALID AND BINDING OBLIGATIONS. The Assumed Obligations and
this Agreement constitute the legal, valid and binding obligations of the
Transferee enforceable against the Transferee in accordance with their
respective terms except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws affecting the
rights of creditors generally and by general principles of equity, regardless of
whether enforcement is pursuant to a proceeding in equity or at law.

          (f) LITIGATION. There are no pending or, to the knowledge of the
Transferee, threatened actions or proceedings against the Transferee by or
before any court or administrative agency or arbitrator that, either
individually or in the aggregate, are reasonably likely to materially adversely
affect the ability of the Transferee to perform its obligations under this
Assumption Agreement or the Assumed Obligations.

          (g) SECURITIES REPRESENTATION. The Transferee is acquiring its
interest in the Trust Estate for investment and not with a view to any resale or
distribution thereof, but subject, nevertheless, to any requirement of law that
the disposition of its property remain within its control at all times, and that
neither it nor anyone authorized by it to act on its behalf has directly or
indirectly offered any interest in the Trust Estate, or any similar security for
sale to, or solicited any offer to acquire any of the same from, anyone.

          (h) LESSOR'S LIENS. Upon the execution of this Assumption Agreement,
there will be no Lessor's Lien attributable to the Transferee on the Trust
Estate.

          (i) ERISA. No part of the funds to be used by the Transferee to
acquire the interests to be acquired by it hereunder constitutes assets (within
the meaning of ERISA and any rules and regulations thereunder) of any ERISA
plan.

          (j) PERMITTED TRANSFEREE. The Transferee is a bank, savings
institution, finance company, leasing company or trust company, national banking
association acting for its own account or in a fiduciary capacity as trustee or
agent under any pension, retirement, profit sharing or similar trust or fund,
insurance company, financial institution, fraternal benefit society or a
corporation acting for its own account having a combined capital and surplus
(or, if applicable, consolidated net worth or its equivalent) of not less than
$25,000,000.(1) [The Transferee is an Affiliate(2) of the transferring
Beneficiary having a combined capital and surplus (or, if applicable,
consolidated net worth or its equivalent) of not less than $25,000,000.](3) The
Transferee is reasonably experienced in equipment leasing and financing
transactions. The Transferee is not (x) an airline or other Person engaged in
air transportation or a competitor of Lessee in the business of air
transportation or any Affiliate thereof, (y) a party adverse to the Lessee or
any Affiliate of the Lessee in any pending litigation or arbitration (whether as
plaintiff

----------
(1) If a guaranty is being provided pursuant to Section 10(b)(v) of the Purchase
    Agreement, replace "The Transferee" at the beginning of this sentence with
    the name of the guarantor.

(2) Include if the Transferee is an Affiliate of the transferring Beneficiary.

(3) There shall be no such net worth requirement if the transferring Beneficiary
    remains liable for the obligations of such Affiliate under the Operative
    Documents.

                                                           Exhibit E-1 -- Page 3
<Page>

or defendant) or (z) a Person that has overtly threatened to initiate
any such litigation or arbitration against Lessee or any Affiliate of Lessee.

             Notwithstanding the foregoing or anything else contained in this
Agreement, the Transferee makes no representation or warranty in this Agreement
with respect to laws, rules or regulations relating to aviation or to the nature
or use of the equipment owned by the Owner Trustee, including, without
limitation, the airworthiness, value, condition, workmanship, design, patent or
trademark infringement, operation, merchantability or fitness for use of the
Aircraft.

          5. RELIANCE. The representations, warranties, covenants and agreements
of the Transferee are made for the benefit of, and may be relied upon by, the
Owner Trustee, Lessee and Transferor (collectively, the "BENEFICIARIES"), and
each of the Beneficiaries shall be deemed to be an express third party
beneficiary with respect thereto, entitled to enforce directly and in its own
name any rights or claims it may have against such Transferee as such
beneficiary.

          6. PAYMENTS. Transferor hereby covenants and agrees to pay over to
Transferee, if and when received on or following the Transfer Date, any amounts
(including any sums payable as interest in respect thereof) paid to or for the
benefit of Transferor that, under Section 2 hereof, belong to Transferee, and
Transferee hereby covenants and agrees to pay over to Transferor, if and when
received on or following the Transfer Date, any amounts (including any sums
payable as interest in respect thereof) paid to or for the benefit of Transferee
that, under Section 2 hereof, belong to Transferor.

          7. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto on separate counterparts (or upon
separate signature pages), all of which together shall constitute but one and
the same instrument.

          8. GOVERNING Law. THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF
NEW YORK, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL,
PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

                                                           Exhibit E-1 -- Page 4
<Page>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered on the date first above written

                                   [                                          ]
                                    ------------------------------------------
                                   Transferor

                                   By:
                                      -----------------------------------------
                                       Name:
                                       Title:

                                   [                                          ]
                                    ------------------------------------------
                                   Transferee

                                   By:
                                      -----------------------------------------
                                       Name:
                                       Title:

                                                           Exhibit E-1 -- Page 5

<Page>

                                                                  EXHIBIT E-2 TO
                                                          THE PURCHASE AGREEMENT

                           FORM OF GUARANTY AGREEMENT

                                                   [DATE]

         Re:    Chautauqua Airlines, Inc. - One Embraer model EMB-145LR Aircraft
                Bearing United States Registration No. N288SK

Ladies and Gentlemen:

     Reference is made to that certain Assignment and Assumption Agreement dated
as of _______________ (the "ASSIGNMENT AGREEMENT") by and between
_______________ ("BENEFICIARY") and _______________ ("ASSIGNEE"). Assignee is a
direct or indirect subsidiary of the undersigned, _____________________, a
____________ ("GUARANTOR"). Except as otherwise noted herein, all capitalized
terms used herein shall have the respective defined meanings set forth in (1)
that certain Purchase Agreement [N288SK] (the "PURCHASE AGREEMENT"), dated as of
June 5, 2001 among Solitair Corp., Chautauqua Airlines, Inc. (the "Lessee"), the
Beneficiary and Wells Fargo Bank Northwest, National Association, a national
banking association, not in its individual capacity, except as expressly
provided therein, but solely as Owner Trustee ("OWNER TRUSTEE"); and (2) that
certain Aircraft Lease Agreement [N288SK] (the "LEASE"), dated as of June 5,
2001 between the Owner Trustee, as Lessor and the Lessee, as Lessee (each of the
Lessee and the Owner Trustee, together with its successors and permitted
assigns, a "GUARANTEED PARTY").

     In connection with the transactions contemplated by the Assignment
Agreement, Guarantor represents and warrants to, and covenants with, each
Guaranteed Party, as follows:

     1. OWNERSHIP OF ASSIGNEE. Assignee is a direct or indirect subsidiary of
Guarantor.

     2. REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants that
Guarantor is duly organized and validly existing in good standing under the laws
of _____________. The execution, delivery and performance of this Guaranty
Agreement are within Guarantor's power and authority, have been duly authorized
by all necessary corporate action on the part of the Guarantor and do not
contravene the charter or the by-laws of Guarantor or any indenture, mortgage,
credit agreement, note, long-term lease or other material agreement to which
Guarantor is a party or by which Guarantor is bound, and this Guaranty Agreement
constitutes a legal, valid and binding obligation of Guarantor, enforceable
against Guarantor in accordance with its terms.

     3. SUBMISSION TO JURISDICTION, ETC. Guarantor hereby agrees to be bound, to
the same extent Beneficiary is bound, by the provisions of Section 12(b) of the
Purchase Agreement, which are incorporated herein by reference as if fully set
forth herein.

                                                           Exhibit E-2 -- Page 1
<Page>

     4. UNDERTAKINGS.

     (a) Guarantor hereby unconditionally and irrevocably guaranties not merely
as surety but as primary obligor, the due and punctual: (i) performance by
Assignee of all of the obligations of the "Beneficiary" under the Operative
Documents assumed by Assignee under the Assignment Agreement; (ii) payment of
any and all sums which are payable by the Beneficiary pursuant to any of the
Operative Documents which payment obligations were assumed by Assignee under the
Assignment Agreement; and (iii) performance of, observance of and compliance
with all other obligations, covenants and undertakings and representations and
warranties of, or made by, Assignee in the Assignment Agreement or the
Beneficiary contained in or arising under the Operative Documents and assumed by
Assignee under the Assignment Agreement (such payments and other obligations
referred to in this Section 4(a) hereinafter referred to as the "OBLIGATIONS").
Guarantor agrees that it will not use the assets of any ERISA Plan to fund its
payment obligations hereunder.

     (b) Guarantor agrees that this Guaranty Agreement is an unconditional and
absolute guaranty of payment and performance (not merely collectability), that
its undertakings hereunder are not contingent upon any Guaranteed Party bringing
any action against Assignee or resorting to any security and hereby expressly
waives any claim that its undertakings hereunder are so contingent.

     (c) Guarantor irrevocably waives promptness, diligence, demand, and all
notices whatsoever as to the Obligations guaranteed hereby, and any other
circumstances which might otherwise constitute a defense available to it, or a
discharge of it (other than the defense of payment or performance), and agrees
that it shall not be required to consent to or receive any notice of any
amendment or modification of, or waiver, consent or extension with respect to,
the Purchase Agreement or the other Operative Documents to which Assignee is a
party that may be made or given as provided herein or otherwise.

     (d) Guarantor further agrees to pay all expenses (including, without
limitation, all fees and disbursements of counsel) that may be paid or incurred
by any Guaranteed Party in enforcing any rights with respect to, or collecting,
any or all of the Obligations and/or enforcing any rights with respect to, or
collecting against, the Guarantor under this Guaranty Agreement.

     (e) Guarantor understands and agrees that its obligations hereunder shall
be construed as continuing, absolute and unconditional without regard to (i) the
validity, regularity or enforceability of any Operative Document, any of the
Obligations or any collateral security therefor or guarantee or right of offset
with respect thereto at any time or from time to time held by any Guaranteed
Party, (ii) any defense, set-off or counterclaim (other than a defense of
payment or performance) that may at any time be available to or be asserted by
the Assignee against any Guaranteed Party, or (iii) any other instances
whatsoever (with or without notice to or knowledge of the Assignee or the
Guarantor) that constitutes, or might be construed to constitute, an equitable
or legal discharge of Assignee for the Obligations, or of Guarantor under this
Guaranty Agreement, in bankruptcy or in any other instance.

     5. NO DISCHARGE. The obligation of Guarantor hereunder will not be
discharged by: (a) any extension or renewal with respect to any obligation of
Assignee, as Beneficiary, under

                                                           Exhibit E-2 -- Page 2
<Page>

the Operative Documents; (b) any modification of, or amendment or supplement to,
any such agreement; (c) any furnishing or acceptance of additional security or
any release of any security; (d) any waiver, consent or other action or inaction
or any exercise or non-exercise of any right, remedy or power with respect to
Assignee, or any change in the structure of Assignee; (e) any insolvency,
bankruptcy, reorganization, arrangement, composition, liquidation, dissolution
or similar proceedings with respect to Assignee; (f) except as provided in
Section 6 any change in ownership of the shares of capital stock of Guarantor or
Assignee; or (g) any other occurrence whatsoever, except payment in full of all
amounts payable by Assignee, as Beneficiary, under the Operative Documents and
performance in full of all Obligations of Assignee, as Beneficiary, in
accordance with the terms and conditions of the Operative Documents.

     6. TRANSFERS. The Guarantor may assign, convey or otherwise transfer its
obligations hereunder to any other Person (hereinafter referred to as the
"TRANSFEREE GUARANTOR"), provided that (a) the Transferee Guarantor enters into
an agreement substantially in the form of this Guaranty Agreement and (b) the
Transferee Guarantor meets the requirements of Section 10(b)(iv) of the Purchase
Agreement relating to a "guarantor". If pursuant to Section 10(b)(iv) of the
Purchase Agreement or the preceding sentence, a new guaranty shall be delivered
or the obligations of the Guarantor shall be transferred, the Transferee
Guarantor shall deliver an opinion or opinions of counsel substantively similar
to the form of opinion attached to the Purchase Agreement as Exhibit G to the
effect that the obligations incurred by the Transferee Guarantor pursuant hereto
constitute the legal, valid, binding and enforceable obligations of such
Transferee Guarantor. Upon the satisfaction by the Guarantor of the conditions
set forth in this Section 6, the Guarantor shall be released and discharged of
any and all further obligations under this Guaranty Agreement.

     7. REINSTATEMENT. Guarantor agrees that this Guaranty Agreement shall be
automatically reinstated with respect to any payment made prior to the
termination of this Guaranty Agreement by or on behalf of Assignee pursuant to
the Purchase Agreement or the other Operative Documents to which Assignee is a
party if and to the extent that such payment is rescinded or must be otherwise
restored, whether as a result of any proceedings in bankruptcy or reorganization
or otherwise.

     8. NO SUBROGATION. Notwithstanding any payment or payments made by
Guarantor hereunder or any set-off or application of funds of Guarantor by any
Guaranteed Party, Guarantor shall not be entitled to be subrogated to any of the
rights of Guaranteed Party against Assignee or any collateral, security or
guarantee or right of set-off held by any Guaranteed Party for the payment of
the Obligations, nor shall Guarantor seek or be entitled to seek any
reimbursement from the Assignee in respect of payments made by Guarantor
hereunder, until all amounts and performance owing to the Guaranteed Parties by
Assignee on account of the Obligations are paid and performed in full.

     9. SEVERABILITY. Any provision of this Guaranty Agreement that 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.

                                                           Exhibit E-2 -- Page 3
<Page>

     10. MISCELLANEOUS. This Guaranty Agreement shall: (a) be binding upon
Guarantor, its successors and assigns; (b) inure to the benefit of, and be
enforceable by, the Guaranteed Parties but shall not, and is not intended to,
create rights in any other third parties; (c) not be waived, amended or
modifiedthe written consent of each of the Guaranteed Parties; (d) be governed
by and construed in accordance with, the internal laws of the State of New York,
and (e) remain in full force and effect until the earlier of (i) payment in full
of all sums payable by Assignee, as Beneficiary, under the Assignment Agreement
and the Operative Documents and by Guarantor hereunder, and performance in full
of all other Obligations of Assignee, as Beneficiary, under the Assignment
Agreement and the Operative Documents and (ii) the compliance by Guarantor with
Section 6. All notices to, requests of, demands on and other communications with
Guarantor shall be made in writing and shall be personally delivered, sent by
facsimile or telecommunication transmission (which in either case provides
written confirmation to the sender of its delivery) or sent by registered or
certified mail, postage prepaid, or by prepaid courier service to Guarantor at:
______________________________________, Attention: ______________________,
telephone (___) __________] facsimile [(___) __________].

     IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly
executed this ______ day of ________________________.

                                     [GUARANTOR]

                                     By:
                                         ------------------------------------
                                         Name:
                                         Title:

                                                           Exhibit E-2 -- Page 4

<Page>

                                                                       EXHIBIT F

                             COUNTRY LIST

                Australia                 Italy

                Austria                   Japan

                Belgium                   Luxembourg

                Canada                    The Netherlands

                Denmark                   New Zealand

                Finland                   Norway

                France                    Portugal

                Germany                   Singapore

                Iceland                   Switzerland

                Ireland                   United Kingdom

<Page>

                                                                       EXHIBIT G

                              GENERAL TAX INDEMNITY

     Section 1.01 INDEMNITY. Lessee agrees for the benefit of each Tax
Indemnitee to pay and, on written demand, to indemnify and hold each Tax
Indemnitee harmless from all Taxes, howsoever levied or imposed, whether levied
or imposed upon or asserted against any Tax Indemnitee, this Lease, the
Aircraft, or any part thereof or interest therein, or otherwise by any Federal,
state or local government, political subdivision, or taxing authority in the
United States, by any government or taxing authority of or in a foreign country
or of or in a territory or possession of the United States or by any
international taxing authority upon or with respect to, or arising out of or
connected with, or based upon or measured:

          (a) by the Aircraft, or any part thereof, or interest therein;

          (b) by the exportation, importation, ownership, delivery,
non-delivery, warehousing, removal, leasing, exchange, acceptance, assigning,
possession, repossession, condition, recording, use, location, presence,
operation, settlement of any insurance or warranty claim, sale, subleasing,
rental, retirement, chartering, imposition of any Lien, abandonment,
registration or change in registration, preparation, installation, modification,
repair, maintenance, replacement, transportation, storage, transfer of title,
return or other disposition of the Aircraft or any part thereof or interest
therein;

          (c) by the rentals, receipts or earnings arising from any one or more
of the items or acts described in Section 1.01 (a) or (b) above (including,
without limitation, the Rent), or any other payment contemplated by this Lease;

          (d) upon or with respect to this Lease, or any other Operative
Document pertaining to or in connection with the transactions contemplated by
this Lease; or

          (e) otherwise with respect to or in connection with the transactions
contemplated by this Lease.

     Section 1.02 EXCEPTIONS TO INDEMNITY. Notwithstanding anything to the
contrary in this Agreement or any other Operative Document, the indemnity
provided for in this Exhibit G does not extend to any of the following Taxes:

          (a) Taxes that are based on or measured by gross or net income or
receipts, capital or net worth or capital stock, capital adequacy, or reserves
or that are capital gains Taxes, excess profits Taxes, minimum or alternative
minimum Taxes, accumulated earnings Taxes, personal holding company Taxes,
succession Taxes, estate Taxes, franchise Taxes, doing business Taxes, or
similar Taxes; PROVIDED, HOWEVER, that this exception (a) shall not apply to (i)
Taxes that are in the nature of sales, use, or property Taxes or (ii) Taxes if
Taxes of such type would not have been incurred by a Tax Indemnitee but for the
use, operation, location, or registration of the Aircraft by Lessee or any
Affiliate thereof or any sublessee, or the activities or place of incorporation
or business organization of Lessee or any Affiliate of Lessee, in a jurisdiction
in which such Taxes have been incurred (PROVIDED, HOWEVER, that Lessee shall
only incur responsibility for Taxes of such type only if and to the extent that
such Taxes are imposed as a result of such use, operation, location,
registration, or activities and not as a result of the activity of a Tax
Indemnitee and PROVIDED, FURTHER, that this clause (ii) shall not apply to any
Taxes of such type imposed by any Federal, state or local government, political
subdivision, or taxing authority in the United States);

          (b) withholding taxes imposed on any indebtedness of any Tax
Indemnitee;

<Page>

          (c) Taxes incurred by a Tax Indemnitee or any of its Affiliates by (A)
engaging in activities in the jurisdiction imposing such Tax which activities or
property are unrelated to the transactions contemplated by this Lease or other
Operative Documents, (B) being incorporated therein or maintaining an office or
having a place of business therein and (C) such Tax Indemnitee's failure to file
any form, document or certificate within thirty (30) days following notice by
Lessee to such Tax Indemnitee that such form, document or certificate is
required to be filed in order to avoid or mitigate applicability of such Tax;

          (d) Taxes (including excess taxes) incurred as the result of any
voluntary or involuntary transfer or Financing by Lessor or any other Tax
Indemnitee of any interest in the Aircraft, any part thereof, this Lease or any
Operative Document, the Trust Estate or in the Lessor or any Tax Indemnitee
except following (w) an Event of Default in the exercise of remedies, (x) the
exercise of the Purchase Option pursuant to the Lease, (y) the substitution,
replacement, modification, pooling or improvement of the Aircraft or any part
thereof pursuant to Article IX of the Lease, or (z) an Event of Loss;

          (e) Taxes incurred by any Tax Indemnitee because of a Lessor's Lien or
the gross negligence or willful misconduct of such Tax Indemnitee or the breach
or inaccuracy of any representation, warranty or covenant of such Tax Indemnitee
in this Lease or any other Operative Document;

          (f) Taxes attributable to acts or events occurring after the
redelivery of the Aircraft to the Lessor, except to the extent fairly
attributable to acts or events occurring prior thereto;

          (g) Taxes imposed against a transferee of a Tax Indemnitee to the
extent of the excess of such Taxes over the amount of such Taxes which would
have been imposed had there not been a transfer by an original Tax Indemnitee of
any interest of such Tax Indemnitee in the Aircraft, the Trust Estate, or the
Operative Documents;

          (h) Taxes for which the Lessee is obligated to indemnify the
Beneficiary under the Tax Indemnity Agreement;

          (i) United States withholding taxes imposed on payments to a foreign
person (other than any such withholding taxes imposed on payments to Aero);

          (j) Taxes imposed with respect to any fees received by or the Owner
Trustee;

          (k) interest, penalties, fines or additions to tax to the extent they
relate to Taxes for which no indemnity would be payable by the Lessee pursuant
to this Section 1.02;

          (l) Taxes imposed by section 4975 of the Code; or

          (m) Taxes arising from or attributable to the like-kind exchange
transaction described in Section 10(b)(vi) of the Purchase Agreement to the
extent such Taxes exceed the amount of Taxes that would have been imposed in the
absence of such like-kind exchange transaction.

     Section 1.03 CONTESTS. If a claim is made against a Tax Indemnitee for
Taxes with respect to which Lessee is liable for a payment or indemnity under
this Lease, such Tax Indemnitee will promptly give Lessee notice in writing of
such claim; PROVIDED, HOWEVER, that such Tax Indemnitee's failure to give notice
will not relieve Lessee of its obligations hereunder except to the extent that
such failure actually or

                                        2
<Page>

effectively (i) results in the imposition of penalties or interest by the
applicable taxation authority or (ii) has a material adverse impact upon
Lessee's right to contest such Taxes in accordance with this Section 1.03. So
long as (i) a contest of such Taxes does not involve any material danger of the
sale, forfeiture, seizure or loss of the Aircraft or any interest therein
(except if the Lessee shall have adequately bonded any Lien that results in such
risk or otherwise made adequate provision to protect the interests of the Tax
Indemnitees), (ii) adequate reserves have been provided for such Taxes by Lessee
or, if required by applicable law, an adequate bond has been posted, (iii) in
the event the Tax Indemnitee decides after consultation with the Lessee to pay
the Tax prior to the contest, the Lessee shall have provided to the Tax
Indemnitee an interest-free advance in an amount equal to the Tax which the Tax
Indemnitee is required to pay, and (iv) no Event of Default described in clauses
(a), (b), (g), (h), (i), or (j) of Section 17.01 of the Lease shall have
occurred and be continuing, then such Tax Indemnitee at Lessee's written request
will in good faith, with due diligence and at Lessee's expense (including paying
the reasonable legal and accounting fees of such Tax Indemnitee), contest (or
permit Lessee to contest its own name if permitted by applicable Law or in the
name and on behalf of such Tax Indemnitee) the validity, applicability or amount
of such Taxes.

Section 1.04 TAX OBLIGATIONS AND AFTER-TAX BASIS OF PAYMENTS. Notwithstanding
any other provision anywhere contained in the Operative Documents, it is
understood that all of the Lessee's obligations with respect to taxes are set
forth in this Exhibit G (and Section 1.04 of Exhibit H to the Lease to the
extent that payments by the Lessee thereunder are required to be made on an
"after-tax basis") and in the Tax Indemnity Agreement, and if the Lessee shall
be required under any provision of the Operative Documents to pay any tax
imposed upon any Tax Indemnitee or with respect to a payment made by the Lessee
under the Operative Documents for which the Lessee is not responsible under this
Exhibit G, Section 1.04 of Exhibit H to the Lease or the Tax Indemnity
Agreement, it shall be entitled to prompt reimbursement of such amount from the
party whose tax liability was paid. Notwithstanding anything in this Exhibit G
to the contrary, Lessee further agrees that, with respect to any indemnity
payment hereunder, such indemnity payment shall include any amount necessary to
hold the recipient of the indemnity payment harmless on a net after-tax basis
(after taking into account all relevant Tax benefits and savings whether by way
of deduction, credit, allocation, apportionment or otherwise, realized or,
except in the case of foreign tax credits, the present value of such Tax
benefits and savings expected to be realized) from all Taxes required to be paid
by such recipient with respect to such indemnity payment, so that such recipient
shall receive an amount which, net of any Taxes required to be paid or withheld
by (or for the account of) such recipient in respect of such amount, and taking
into account the aforementioned tax benefits and savings, shall be equal to the
amount of indemnity payment otherwise required hereunder.

     All computations for the purposes hereof shall be based on tax rates in
effect on the date payment pursuant to this Section is made. Computations
involving the loss of use of money or calculations of present value shall be
based on the Treasury Rate, as adjusted for applicable income tax effects and
compounded semiannually.

     If any Tax Indemnitee or Indemnitee shall realize a tax benefit not taken
into account in the preceding paragraph in the form of a deduction or foreign
tax credit against United States income tax liability, as a result of any claims
or Taxes paid or indemnified against by the Lessee under Section 1.04 of Exhibit
H to the Lease or this Exhibit G (whether by way of deduction, credit,
allocation or apportionment of income or otherwise), such Tax Indemnitee or
Indemnitee shall pay to the Lessee an amount which, after subtraction of any
further tax savings such Tax Indemnitee or Indemnitee realizes as a result of
the payment thereof, is equal to the amount of such tax benefit; PROVIDED, in
calculating the amount of any credits against United States Federal income taxes
realized by the Tax Indemnitee with respect to foreign Taxes, it shall be
assumed that (i) to the extent Tax Indemnitee's ability to utilize foreign tax
credits to reduce its liability for United States Federal taxes is actually
increased by reason of

                                        3
<Page>

net foreign source taxable income attributable to the transaction contemplated
by the Operative Documents, the foreign tax credit generated with respect to the
foreign income tax for which the Lessee is obligated to make an indemnity
payment hereunder shall be deemed to be utilized prior to any other foreign tax
credit of the Tax Indemnitee; (ii) except as provided in the preceding clause
(i), any foreign tax credit not described in the succeeding clauses (iii) and
(iv) shall be deemed to be utilized prior to any foreign tax credit attributable
to the Lessee; (iii) any foreign tax credit generated by Lessee shall be
utilized ahead of any credit generated by another lessee of the Beneficiary with
respect to whom the Beneficiary has a contractual obligation to pay over the
benefits arising therefrom on a basis that assumes that such credits shall be
utilized after all other credits available to the Beneficiary have been
utilized, and (iv) except as provided in clause (i), any foreign tax credit
generated by the Lessee shall be utilized on a PARI PASSU basis with all other
credits generated in connection with any other leases of the Beneficiary not
described in clause (iii) and with respect to whom the Beneficiary does not have
a contractual obligation to pay over the benefits arising therefrom on a basis
that assumes that such credits shall be utilized ahead of all other credits of
the Beneficiary. Each payment made by any Tax Indemnitee or Indemnitee to the
Lessee pursuant to this paragraph shall be made within 30 days after the
respective Tax Indemnitee or Indemnitee files a tax return (including estimated
returns) which reflects the tax benefits described in the prior sentence.

     Section 1.05 REPORTS. In case any report or return is required to be made
with respect to any Taxes (other than income Taxes) that are an obligation of
Lessee hereunder or for which an indemnification obligation may arise under this
Exhibit G, Lessee will, to the extent it has knowledge thereof make such report
or return in such manner that is not inconsistent with the ownership of the
Aircraft and the Engines in Lessor, and, upon request, send a copy of the
applicable portions of such report or return to Lessor. In addition, the Tax
Indemnitees shall furnish Lessee, at Lessee's written request and expense, with
any information in Tax Indemnitee's possession or control (and not within the
control of Lessee) that is reasonably necessary to make any tax filing, report
or return (but no Tax Indemnitee shall be required to furnish its tax return,
although it may be required to furnish information contained therein).

     Section 1.06 REFUNDS. Upon receipt by a Tax Indemnitee of a refund or
credit of all or any part of any Taxes that Lessee has paid or for which the
Lessee has reimbursed or indemnified the Tax Indemnitee, such Tax Indemnitee
will promptly pay to Lessee the net amount of such Taxes refunded or credited,
after taking into account any net Tax benefit, and interest received or credited
thereto.

     Section 1.07 SURVIVAL. All the obligations under this Exhibit G shall
survive the assignment (subject to the limitations in Section 1.02), expiration
or other termination of this Lease and the Operative Documents.

     Section 1.08 PAYMENT PROCEDURES. Any amount payable to a Tax Indemnitee
pursuant to this Exhibit G shall be paid within 30 days after receipt of a
written demand therefor from such Tax Indemnitee accompanied by a written
statement describing in reasonable detail the basis for such indemnity and the
computation of the amount so payable, provided that such amount need not be paid
prior to the later of (i) 1 business day prior to the date that the
indemnifiable Taxes are due or (ii) in the case of amounts which are being
contested by the Lessee in good faith or by the Tax Indemnitee pursuant to
Section 1.03, the time such contest is finally resolved. Within 15 days
following the Lessee's receipt of the computation of the amount of the
indemnity, the Lessee may request that an accounting firm to be jointly selected
by the Lessee and such Tax Indemnitee (but not including the accounting firm
that regularly prepares the certified financial statements of the Lessee or such
Tax Indemnitee unless such firm consists of one of the "Big 5" accounting firms
in which case such firm shall be deemed acceptable to the parties) determine
whether such computations of the Tax Indemnitee are correct. The computations

                                        4
<Page>

of such accounting firm shall be final, binding and conclusive upon the parties
and the Lessee shall have no right to inspect the books, records or tax returns
of the Tax Indemnitee to verify such computation. All fees and expenses payable
in connection with such verification shall be borne by the Lessee unless such
verification discloses an error adverse to the Lessee of more than 5% of the
amount computed by the Tax Indemnitee, in which case such fees and expenses
shall be paid by the Tax Indemnitee.

     Section 1.09 NON-SIGNATORIES. As a condition precedent to any performance
by the Lessee in connection with any indemnity, payment or other obligation
pursuant to this Exhibit G with respect to any Person claiming as a Tax
Indemnitee which is not a signatory to this Lease, such Person shall expressly
agree in writing with the Lessee to be bound by all the terms of this Exhibit G
and this Lease applicable to such Person in its capacity as a Tax Indemnitee.

                                        5
<Page>

                                                                       EXHIBIT H

                                GENERAL INDEMNITY

     Section 1.01 GENERAL INDEMNITY. Except as otherwise expressly set forth in
Section 1.03, Lessee agrees to indemnify, reimburse, hold harmless and defend
each Indemnitee from and against any and all claims, damages, losses,
liabilities, demands, suits, judgments, causes of action, legal proceedings,
whether civil or criminal, penalties, fines and other sanctions, and any
reasonable attorneys' fees and other reasonable costs and expenses in connection
herewith, (including any of the foregoing arising or imposed with or without
fault of any Indemnitee, or under the doctrine of absolute or strict liability)
and including any third party claims arising from or in any way connected with
injury to or death of any Person or loss or damage to property (any and all of
which are hereafter referred to as "CLAIMS") which in any way result from,
pertain to or arise out of, or are in any manner related to (a) the Lease, any
other Operative Document or the Manufacturer Purchase Agreement or the breach of
any representation, warranty or covenant made by Lessee hereunder, thereunder or
in any document delivered by Lessee in connection herewith or therewith, or (b)
the condition, ownership, manufacture, purchase, delivery, lease, sublease,
acceptance, possession, return, disposition, use, operation, maintenance,
repair, alteration or control of the Aircraft, the Airframe, any Engine or any
Part, either in the air or on the ground during the Term, or (c) any defect in
the Aircraft, any Engine or any Part (whether or not discovered or discoverable
by Lessee or Lessor) arising from the material or any articles used therein or
from the design, testing, or use thereof or from any maintenance, service,
repair, overhaul, or testing of the Aircraft, any Engine or any Part, whether or
not the Aircraft, such Engine or such Part is in the possession of Lessee, and
regardless of where the Aircraft, such Engine or such Part may then be located,
or (d) any transaction, approval, or document contemplated by the Lease, any
Operative Document or the Manufacturer Purchase Agreement or given or entered
into in connection herewith or therewith. Lessee shall be subrogated to all
rights and remedies that any Indemnitee may have against the Manufacturer and
its subcontractors or any other person as to any such Claims, but only to the
extent that Lessee has paid in full to such Indemnitee the amount claimed by it
hereunder with respect to such Claims.

     Section 1.02 LESSEE WAIVER AND LIMITATION OF LIABILITY. Except as expressly
set forth in Section 1.03, Lessee hereby waives and releases each Indemnitee
from any Claims (other than Claims attributable to or arising out of the willful
misconduct or gross negligence of such Indemnitee), whether existing now or
hereafter arising, for or on account of or arising out of or in any way
connected with injury to or death of personnel of Lessee or loss or damage to
property of Lessee or the loss of use of any property that may result from or
arise in any manner out of or in relation to the ownership, leasing, condition,
use or operation of the Aircraft, in the air or on the ground, or that may be
caused by any defect in the Aircraft, from the material or any article used
therein or from the design or testing thereof, or use thereof, or from any
maintenance, service, repair, overhaul or testing of the Aircraft regardless of
when such defect may be discovered, whether or not the Aircraft is at the time
in the possession of Lessee, and regardless of the location of the Aircraft at
any such time.

     Section 1.03 EXCEPTIONS. Notwithstanding anything to the contrary herein,
the indemnity provided for in Section 1.01 will not extend to any Claim of any
Indemnitee to the extent it:

          (a) is attributable to acts or events occurring after the redelivery
of the Aircraft to Lessor, except to the extent fairly attributable to acts or
events occurring prior thereto;

<Page>

          (b) is directly attributable to the gross negligence or willful
misconduct of such Indemnitee or the breach or inaccuracy of any representation,
warranty or covenant of such Indemnitee in the Lease or in any other Operative
Document;

          (c) other than as expressly provided in Section 1.04 of this Exhibit
H, is a Tax or loss of a Tax benefit, whether or not the Lessee is required to
indemnify therefor pursuant to Article XIV hereof or pursuant to the Tax
Indemnity Agreement;

          (d) is a cost or expense expressly required to be paid by such
Indemnitee or its permitted transferees (and not by the Lessee) pursuant to the
Lease or any other Operative Document and for which the Lessee is not otherwise
obligated to reimburse such Indemnitee, directly or indirectly pursuant to the
terms of the Lease or such other Operative Document;

          (e) is, in the case of the Beneficiary, Lessor's Liens attributable to
the Beneficiary; in the case of the Owner Trustee, Lessor's Liens to the extent
attributable to the Owner Trustee; in the case of WFB, Lessor's Liens to the
extent attributable to WFB; in the case of a Financing Party, Lessor's Liens to
the extent attributable to such Financing Party;

          (f) is, in the case of the Beneficiary or the Owner Trustee,
attributable to the sale by such Indemnitee of any interest in the Aircraft, the
Beneficial Interest or any similar interest (including a sale resulting from
bankruptcy or other proceedings for the relief of debtors in which such
Indemnitee is the debtor and which is not caused by the Default of the Lessee),
unless in each case such sale shall occur pursuant to the exercise of remedies
under Section 17.02 hereof or following the occurrence of an Event of Default;

          (g) in the case of the Beneficiary, is a Claim relating to, resulting
from, arising out of or in connection with a "prohibited transaction" within the
meaning of Section 406 of ERISA or Section 4975(c)(1) of the Code resulting from
the direct or indirect use of assets of any ERISA Plan to acquire or hold
Beneficiary's interest in the Trust Estate or in the case of any transferee of
the Beneficiary referred to in Section 10(b)(v) of the Purchase Agreement, to
purchase the Beneficial Interest pursuant to Section 10(b)(v) of the Purchase
Agreement;

          (h) except during the continuation of an Event of Default, is
attributable to any amendment to any of the Operative Documents which is not
requested, or consented to, by the Lessee or is not required or made pursuant to
the terms of any of the Operative Documents;

          (i) constitutes the loss of future profits of such Indemnitee or
losses attributable to such Indemnitee's overhead; or

          (j) arises from or is attributable to the like-kind exchange
transaction described in Section 10(b)(vi) of the Purchase Agreement to the
extent such Claim exceeds the amount of Claim that would have been imposed in
the absence of such like-kind exchange transaction.

     Section 1.04 AFTER-TAX BASIS OF PAYMENTS. Lessee further agrees that, with
respect to any payment or indemnity hereunder, such payment or indemnity shall
include any amount necessary to hold the recipient of the payment or indemnity
harmless on a net after-tax basis from all Taxes required to be paid by such
recipient or otherwise withheld with respect to such payment or indemnity (after
taking into account all related Tax benefits and savings), subject to, and
calculated in accordance with, Sections 1.05 and 1.09 of EXHIBIT H to the Lease,
MUTATIS MUTANDIS.

                                        2
<Page>

     Section 1.05 PAYMENTS. Any amount payable as an indemnity to any Indemnitee
by Lessee pursuant to this Exhibit H is to be paid to such party directly, in
immediately available funds, by bank wire transfer at such bank or to such
account as specified by the payee in written directions to Lessee, within thirty
(30) days after receipt of a written demand therefor from such Indemnitee (or,
if such indemnity is payable from insurance proceeds, promptly after timely
receipt of such insurance proceeds).

     Section 1.06 REFUNDS. If any Indemnitee obtains a recovery of all or any
part of any indemnity amount that Lessee has paid in full to such Indemnitee,
such Indemnitee will promptly pay to Lessee the net amount recovered by such
Indemnitee, together with any tax benefit actually realized in connection
therewith, PROVIDED no Specified Default is then continuing. If any Indemnitee
is subsequently obligated to repay all or any portion of any such recovery, then
Lessee shall, upon demand by Lessor, repay to Lessor any amounts paid in respect
thereof by Lessor pursuant to this Section 1.06.

     Section 1.07 DEFENSE OF CLAIMS. Unless an Event of Default has occurred and
has not been waived by Lessor, Lessee and its insurers will have the right (in
each such case at Lessee's sole expense) to investigate, defend or compromise
any claim for which indemnification is sought as provided in this Section 1.07
(so long as Lessee has agreed in writing reasonably acceptable to the relevant
Indemnitee that Lessee is liable to such Indemnitee for any Claims relating to
or arising out of the Claim for which indemnification is sought, PROVIDED that
Lessee will not be so liable to the extent that it is determined that one or
more of the exclusions contained in Section 1.03 would be applicable to such
Claim), and each Indemnitee will cooperate with Lessee and its insurers with
respect thereto. If a claim is made against an Indemnitee involving one or more
Claims and such Indemnitee has notice thereof, such Indemnitee shall promptly
after receiving such notice give notice of such Claim to Lessee; PROVIDED that
the failure to give such notice shall not affect the obligations of Lessee
hereunder except to the extent Lessee is prejudiced by such failure or the
Lessee's indemnification obligations are increased as a result of such failure.
If no Specified Default shall have occurred and be continuing, Lessee shall be
entitled, at its sole cost and expense, acting through counsel reasonably
acceptable to the respective Indemnitee, (A) in any judicial or administrative
proceeding that involves solely a claim for one or more Claims, to assume
responsibility for and control thereof, (B) in any judicial or administrative
proceeding involving a claim for one or more Claims and other claims related or
unrelated to the transactions contemplated by the Operative Documents, to assume
responsibility for and control of such claim for Claims to the extent that the
same may be and is severed from such other claims (and such Indemnitee shall use
its best efforts to obtain such severance), and (C) in any other case, to be
consulted by such Indemnitee and to be allowed, at Lessee's sole expense, to
participate therein. Notwithstanding any of the foregoing to the contrary,
Lessee shall not be entitled to assume responsibility for and control of any
such judicial or administrative proceedings or compromise any claim if such
proceedings or compromise will involve a material risk of the sale, forfeiture
or loss of, or the creation of any Lien (other than a Permitted Lien) on, the
Aircraft, the Beneficial Interest or any part thereof unless in such an event
Lessee shall have posted a bond or other security satisfactory to the relevant
Indemnitees in respect to such risk. The Indemnitee may participate at its own
expense and with its own counsel in any judicial proceeding controlled by Lessee
pursuant to the preceding provisions.

     Section 1.08 SURVIVAL. All the obligations of Lessee under this Exhibit H
shall survive the assignment, expiration or other termination of the Lease. Such
obligations are expressly undertaken by Lessee for the benefit of, and shall be
enforceable directly by, Lessor and each other Indemnitee, provided that if an
Indemnitee is not a party to the Lease, Lessee may require such Indemnitee to
agree in writing, in a form reasonably acceptable to Lessee, to the terms of
this Exhibit H prior to making any payment to such Indemnitee hereunder.

<Page>

                 PURCHASE AGREEMENT ASSIGNMENT NO. 2 - (N288SK)

         PURCHASE AGREEMENT ASSIGNMENT NO. 2 - (N288SK), dated as of June 29,
2001 (this "Assignment"), among (1) AERO LTD., a Cayman Islands corporation
("Assignor"), (2) Wells Fargo Bank Northwest, National Association ("WFB"), not
in its individual capacity but solely as Owner Trustee under Trust Agreement
(N288SK) dated as of the date hereof ("Trust Agreement") between Mitsui & Co.
(U.S.A.), Inc. ("Beneficiary") and WFB ("Assignee"), and (3) Chautauqua
Airlines, Inc., a New York corporation ("Lessee").

         WHEREAS, Solitair Corp. as buyer, and EMBRAER-Empresa Brasileira de
Aeronautica S.A., a corporation organized under the laws of Brazil
("Manufacturer"), have entered into the Purchase Agreement, pursuant to which,
among other things, Manufacturer has agreed to manufacture and sell to Solitair
Corp. and it has agreed to purchase from Manufacturer, certain aircraft,
including the Aircraft (each such capitalized term is as defined in the Purchase
Agreement Assignment No. 1 described below).

         WHEREAS, immediately prior to the execution and delivery of this
Assignment, Solitair Corp. as assignor and Assignor as assignee are entering
into the Purchase Agreement Assignment No. 1 - (N288SK) dated as of even date
herewith (the "Purchase Agreement Assignment No. 1"), pursuant to which, among
other things, Solitair Corp. is assigning to Assignor certain of its right,
title and interest in, to and under the Purchase Agreement including, without
limitation, the right to purchase the Aircraft from Manufacturer upon and
subject to the terms and conditions set forth in the Purchase Agreement and the
Purchase Agreement Assignment No. 1; and

         WHEREAS, Assignor desires to sell and transfer to Assignee all of its
present and future rights, title, obligations and interest in, to and under the
warranties and indemnities under the Purchase Agreement that are described in
clause (y) of the definition of the Purchase Agreement in the Purchase Agreement
Assignment No. 1 (the "Assigned Warranties");

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and agreements of the parties contained herein, and for other
good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, Assignor and Assignee agree as follows:

         Section 1. DEFINITIONS. Capitalized terms used but not defined herein
shall have the respective meanings set forth or incorporated by reference, and
shall be construed and interpreted in the manner described, in Purchase
Agreement Assignment No. 1.

         Section 2. TRANSFER AND ASSUMPTION. Assignor does hereby sell, assign
and transfer to Assignee all of Assigned Warranties and Assignee hereby accepts
the Assigned Warranties from Assignor. Assignor and Assignee agree that such
sale, assignment, transfer and acceptance is effective as of the date hereof.

         Assignor hereby acknowledges and consents to the assignment of
warranties with respect to the Aircraft by Assignee to Lessee pursuant to
Section 10.01 of the Lease. Notwithstanding anything in this Assignment to the
contrary, so long as no Event of Default

                                       1
<Page>

shall have occurred and the Lease shall not have been terminated under Section
17.02 thereof, Lessee may, to the exclusion of Assignee, exercise in Lessee's
name the right to obtain any recovery or benefit resulting from the enforcement
of any of the Assigned Warranties under the Purchase Agreement in respect of the
Aircraft subject to the terms of the Lease and may exercise all other rights and
powers of the "Buyer" with respect to the Assigned Warranties and may, without
the consent of the Assignee, enter into amendments or modifications thereof.

         Manufacturer shall not be deemed to have knowledge of, and need not
recognize the occurrence or discontinuance of, any Event of Default under, or
termination of, the Lease, unless and until Manufacturer has received written
notice thereof from Assignee addressed to Manufacturer, to its Director of
Contracts by mail to EMBRAER-Empresa Brasileira de Aeronautica S.A., Av.
Brigadeiro Faria Lima, 2170, 12.227-901 Sao Jose dos Campos-SP, Brazil, or by
telecopy to telecopy no.: (55-123) 45-1257, and, in acting in accordance with
the terms and conditions of the Purchase Agreement and this Assignment,
Manufacturer may act with acquittance and conclusively rely upon any such
notice. If Manufacturer so receives notice from Assignee that an Event of
Default shall have occurred and the Lease shall have been terminated under
Section 17.02 thereof, Manufacturer will perform all the duties and obligations
under the Purchase Agreement with respect to the Assigned Warranties for the
benefit of Assignee and will make any and all payments that it thereafter is
required to make in respect of the Assigned Warranties directly to Assignee at
the account or location as Assignee from time to time notifies Manufacturer in
writing.

         Section 3. In accordance with the Purchase Agreement, the assignment
herein is subject to the following conditions:

                  (a) Assignee is not and will not be owned, effectively
         controlled or managed by any airframe manufacturer which competes with
         Manufacturer in the thirty-seven (37) to seventy (70) seat turbo jet
         market; and

                  (b) In the event Assignee subsequently transfers the Aircraft
         and/or any of Assignee's remaining rights to the Assigned Warranties
         with respect to the Aircraft, to any other entity, Assignee agrees to
         notify Manufacturer of the identity of such entity at least thirty (30)
         calendar days prior to such transaction (provided that if Assignee
         fails to notify Manufacturer within this time, Assignee may not assign
         its remaining rights without Manufacturer's consent, which shall not be
         unreasonably withheld) and provide Manufacturer with prior written
         notice of any events under such agreement that would cause any rights
         thereby assigned to revert to Assignee under such agreement; provided,
         however, that, pursuant to the Purchase Agreement, Assignee shall not
         transfer the Aircraft to an entity which is owned, effectively
         controlled or managed by any airframe manufacturer which competes with
         Manufacturer in the thirty-seven (37) to seventy (70) seat turbo jet
         market.

         Section 4. Anything herein contained to the contrary notwithstanding:

                  (a) Neither Assignee nor Beneficiary shall have any obligation
         or liability under the Purchase Agreement by reason of, or arising out
         of, this Assignment, or be obligated to perform any of Assignor's
         duties or obligations under the Purchase Agreement, to make any
         payment, to present or file any claim, or to take any other action to
         collect or enforce any claim for any payment assigned hereunder;

                                       2

<Page>

                  (b) Assignee confirms, for Manufacturer's benefit, that in
         exercising any rights under the Purchase Agreement or in making any
         claim with respect to the Aircraft or other goods and services
         delivered or to be delivered pursuant to the Purchase Agreement, the
         terms and conditions of the Purchase Agreement shall apply to and bind
         Assignee (and any assignee of Assignee) to the same extent as Assignor;
         and

                  (c) Except as stated herein, nothing contained herein shall
         subject Manufacturer or Assignor to any liability to which it, as the
         case may be, would not otherwise be subject under the Purchase
         Agreement or modify in any respect the rights of Manufacturer or
         Assignor thereunder.

         Section 5. NOTICES. Any notices provided for in the Purchase Agreement
Assignment No. 1 shall be delivered to Assignee and Lessee at the following
address or such other place as Assignee or Lessee, as the case may be, may
designate in accordance with the Purchase Agreement Assignment No. 1:

         (a)      if to Assignee to:

                  Wells Fargo Bank Northwest, National Association
                  MAC: U1254-031
                  79 South Main Street, 3rd Floor
                  Salt Lake City, Utah 84111
                  Tel: (801) 246-5630
                  Fax: (801) 246-5053
                  Attn: Corporate Trust Department

                  with a copy to:

                  Mitsui & Co. (U.S.A.), Inc.
                  200 Park Avenue
                  New York, New York 10166
                  Tel: (212) 878-4314
                  Fax: (212) 878-0979
                  Attn: General Manager, Aerospace, Marine and Motor Vehicle
                        Department

         (b)      if to Lessee to:
                  Chautauqua Airlines, Inc.
                  2500 S. High School Road
                  Indianapolis, Indiana 46241
                  Tel: (317) 484-6047
                  Fax: (317) 484-6060
                  Attn: President

                  with a copy to:

                  Wexford Capital LLC
                  411 West Putnam Avenue
                  Greenwich, Connecticut 06830
                  Tel: (203) 862-7000

                                       3

<Page>

                  Fax: (203) 862-7490
                  Attn: President

         Section 6. HEADINGS. The headings of the Sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

         Section 7. GOVERNING LAW. THIS ASSIGNMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, UNITED STATES OF
AMERICA, WITHOUT REGARD TO CONFLICT OF LAWS RULES OTHER THAN SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW.

         Section 8. WAIVER OF WARRANTIES. THE ASSIGNEE HEREBY WAIVES, RELEASES
AND RENOUNCES, ALL WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE ASSIGNOR OTHER
THAN THE WARRANTY OF TITLE CONTAINED IN THE WARRANTY BILL OF SALE ISSUED OF EVEN
DATE HEREWITH BY THE ASSIGNOR TO THE ASSISGNEE, AND ASSIGNEE FURTHER WAIVES AND
RELEASES ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF ASSIGNEE AGAINST ASSIGNOR
EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO ANY
NON-CONFORMANCE OR DEFECT OR FAILURE OR ANY OTHER REASON IN ANY AIRCRAFT OR
OTHER THING DELIVERED UNDER THE PURCHASE AGREEMENT, INCLUDING DATA, DOCUMENT,
INFORMATION OR SERVICE, INCLUDING BUT NOT LIMITED TO:

         a.  ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

         b. ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

         c. ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER
OR NOT ARISING FROM THE NEGLIGENCE OR OTHER RELATED CAUSES OF ASSIGNOR, WHETHER
ACTIVE, PASSIVE OR IMPUTED; AND

         d. ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR
DAMAGE TO ANY AIRCRAFT, FOR LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO ANY
AIRCRAFT OR FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

         Section 9. COUNTERPARTS. This Assignment and the acknowledgment and
consent to be signed by the Manufacturer and any amendments, waivers, consents
or supplements hereto may be executed in any number of counterparts (or upon
separate signature pages bound together into one or more counterparts), each of
which when so executed shall be deemed to be an original, and all of which
counterparts, taken together, shall constitute one and the same instrument.

         Section 10. WFB is entering into this Assignment solely as Owner
Trustee under the Trust Agreement and not in its individual capacity and neither
WFB nor any entity acting as successor Owner Trustee or additional Owner Trustee
under the Trust Agreement shall be personally liable for, or for any loss in
respect of, any of the statements, representations, warranties, agreements or
obligations stated to be those of the Assignee hereunder, as to

                                       4

<Page>

which all interested parties shall look solely to the Trust Estate (as defined
in the Trust Agreement), except to the extent expressly provided otherwise in
the other Operative Documents (as defined in the Trust Agreement), PROVIDED
HOWEVER, that nothing in this Section 10 shall be construed to limit in scope or
substance the liability of WFB or any entity acting as successor Owner Trustee
or additional Owner Trustee under the Trust Agreement in its individual capacity
for the consequences of its own willful misconduct or gross negligence or (in
receiving, handling or remitting funds) its simple negligence, or the inaccuracy
or breach of its representations, warranties or covenants made in such capacity
in any other Operative Documents.

              [Remainder of the Page is Intentionally Left Blank.]

                                       5

<Page>

         IN WITNESS WHEREOF, Assignor and Assignee have caused this Purchase
Agreement Assignment No. 2 to be duly executed and sealed as of the day and year
first written above.

         AERO LTD., as Assignor

         By:
             ----------------------------------------
         Name:
         Title:

         WELLS FARGO BANK NORTHWEST, NATIONAL
         ASSOCIATION, not in its individual capacity but solely
         as Owner Trustee on behalf of Mitsui & Co. (U.S.A.), Inc., as Assignee

         By:
             ----------------------------------------
         Name:
         Title:

         CHAUTAUQUA AIRLINES, INC., as Lessee

         By:
             ----------------------------------------
         Name:
         Title:

                                       6

<Page>

                       Annex 1 to Purchase Agreement Assignment No. 2 - (N288SK)

                     CONSENT AND AGREEMENT No. 2 - (N288SK)

         The undersigned, EMBRAER-EMPRESA BRASILEIRA DE AERONAUTICA S.A., a
corporation organized and existing under the laws of Brazil, hereby acknowledges
notice of and consents to all of the terms (including without limitation the
assignment of the Assigned Warranties by Assignee to Lessee pursuant to Section
10.01 of the Lease) of the foregoing Purchase Agreement Assignment No. 2 -
(N288SK), dated as of June 29, 2001, among Aero Ltd., Wells Fargo Bank
Northwest, National Association, not in its individual capacity but solely as
Owner Trustee on behalf of Mitsui & Co. (U.S.A.), Inc. (the "Beneficiary") and
Chautauqua Airlines, Inc. (the "Lessee"), to the extent they relate to the
Manufacturer (herein called the "Assignment No. 2", the defined terms therein
being hereinafter used with the same meaning) and hereby confirms to the
Assignee and the Lessee that: (i) all representations, warranties, indemnities
and agreements of the Manufacturer under the Assigned Warranties with respect to
the Aircraft shall inure to the benefit of the Assignee to the same extent as if
originally named the "Buyer" therein, subject to the terms and conditions of the
Assignment No. 2, the Purchase Agreement and the Purchase Agreement Assignment
No. 1 -(N288SK) dated as of June 29, 2001 between Solitair Corp. and Assignor
("Assignment No. 1"); (ii) neither Assignee nor Beneficiary shall be liable for
any of the obligations or duties of Solitair Corp. or the Assignor under the
Purchase Agreement or Assignment No. 1, nor shall the Assignment No. 2 give rise
to any duties or obligations whatsoever on the part of the Assignee owing to the
Manufacturer except for Assignee's agreement to effect that in exercising any
rights under the Purchase Agreement as assigned by Assignment No. 1, or in
making any claims with respect to the Aircraft or other things (including
without limitation data, sale documents and services) delivered or to be
delivered pursuant to the Purchase Agreement as assigned by Assignment No. 1,
the terms and conditions of the Purchase Agreement as assigned by Assignment No.
1, shall apply to and be binding upon Assignee to the same extent as if Assignee
had been the original "Buyer" thereunder, and with respect to such agreement the
Manufacturer agrees that, anything contained in the Purchase Agreement or the
Assignment No. 2 to the contrary notwithstanding, so long as the Manufacturer
shall not have received notice that an Event of Default shall have occurred and
the Lease shall have been terminated under Section 17.02 thereof, the Assignee
shall not have any responsibility to the Manufacturer for failure to comply with
any of the terms of the Purchase Agreement as assigned by Assignment No. 1 with
respect to the Aircraft while subject to the terms of the Lease to Lessee so
long as the Assignee acts upon the written instructions of Lessee (to which
instructions the Manufacturer understands it shall have access on request);
provided that no person other than the Manufacturer shall have any rights
against the Assignee with respect to the undertaking and agreement set forth in
this clause (ii); (iii) the Manufacturer will continue to pay to the Lessee all
payments which the Manufacturer may be required to make in respect of the
Aircraft under the Purchase Agreement as assigned by Assignment No. 1 unless and
until the Manufacturer shall have received written notice addressed to its
Contracts Administrator, by mail to EMBRAER-Empresa Brasileira de Aeronautica
S.A., Av. Brigadeiro Faria Lima, 2170, 12.227-901 Sao Jose dos Campos, SP,
Brazil, or by telecopy to telecopy no.: (55-123) 45-1257, that an Event of
Default shall have occurred and the Lease shall have been terminated under
Section 17.02 thereof (which such notice from the Assignee shall be conclusive
proof thereof to the Manufacturer and as to which the Manufacturer shall have no
obligation to inquire), whereupon the Manufacturer will make any and all
payments and take any and all actions which it may be required thereafter to
make or take in respect of the Aircraft under the Purchase Agreement as assigned
by Assignment No. 1 and the Assigned Warranties which have been assigned under
the Assignment No. 2 directly to the

                                       1

<Page>

Assignee at its address at Wells Fargo Bank Northwest, National Association,
MAC: U1254-031,79 South Main Street, 3rd Floor, Salt Lake City, Utah 84111, Tel:
(801) 246-5630, Fax: (801) 246-5053, Attn: Corporate Trust Department, with copy
to Mitsui & Co. (U.S.A.), Inc., 200 Park Avenue, New York, New York 10166, Tel:
(212) 878-4314, Fax: (212) 878-0979, Attn: General Manager, Aerospace, Marine
and Motor Vehicle Department; and (iv) from and after the delivery of the
Aircraft and payment in full therefor as invoiced by the Assignor to the
Assignee on the Delivery Date, the Manufacturer will not assert any lien or
claim against the Aircraft or any part thereof arising with respect to or in
connection with any work or other services performed before the delivery and
acceptance of the Aircraft.

         The Manufacturer hereby represents and warrants that (A) the
Manufacturer is a corporation duly organized and existing in good standing under
the laws of Brazil, (B) the making and performance of the Purchase Agreement
have been duly authorized by all necessary corporate action on the part of the
Manufacturer, do not require any stockholder approval, do not contravene the
Manufacturer's By-Laws or any indenture, credit agreement or other contractual
agreement to which the Manufacturer is a party or by which it is bound, and the
making of the Purchase Agreement does not contravene any law binding on the
Manufacturer, (C) the making and performance of this Consent and Agreement have
been duly authorized by all necessary corporate action on the part of the
Manufacturer, do not require any stockholder approval and do not contravene any
law binding on the Manufacturer or contravene the Manufacturer's By-laws or any
indenture, credit agreement or other contractual agreement to which the
Manufacturer is a party or by which it is bound and (D) the Purchase Agreement
constituted as of the date thereof and at all times thereafter to and including
the date of this Consent and Agreement constitutes a binding obligation of the
Manufacturer enforceable against the Manufacturer in accordance with its terms
subject to: (i) the limitations of applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights of creditors
generally; and (ii) general principles of equity (regardless of whether such
enforceability is considered in -a proceeding in equity or at law), which
principles do not make the remedies available at law or in equity with respect
to the Purchase Agreement inadequate for the practical realization of the
benefits intended to be provided thereby and this Consent and Agreement is a
binding obligation of the Manufacturer enforceable against the Manufacturer in
accordance with its terms subject to: (a) the limitations of applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
rights of creditors generally; and (b) general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law), which principles do not make the remedies available at law or in equity
which respect to this Consent and Agreement inadequate for the practical
realization of the benefits intended to be provided thereby.

         [The remainder of this page has been left blank intentionally.]

                                       2
<Page>

         THIS CONSENT AND AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, AS
APPLICABLE TO CONTRACTS BETWEEN CITIZENS OF THE STATE TO BE PERFORMED WHOLLY
WITHIN THAT STATE, AND WITHOUT REGARD TO CONFLICTS OF LAW RULES OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

         Dated as of June 29, 2001

                                   EMBRAER-EMPRESA BRASILEIRA
                                   DE AERONAUTICA S.A.

                                   By
                                     ------------------------------------------
                                   Name:
                                   Title:

                                   By
                                     ------------------------------------------
                                   Name:
                                   Title:

<Page>

NOTE TO EXHIBIT 10.32

The two additional Aircraft Purchase Agreements are substantially identical
in all material respects to the filed Aircraft Purchase Agreement except as
follows:

<Table>
<Caption>

------------------------------------- ----------------------------------- -----------------------------------
            TAIL NUMBER                          CLOSING DATE                     OWNER-PARTICIPANT

------------------------------------- ----------------------------------- -----------------------------------
<S>                                   <C>                                 <C>
N286SK                                           June, 2001                Mitsui & Co.
------------------------------------- ----------------------------------- -----------------------------------
N287SK                                           June, 2001                Mitsui & Co.
------------------------------------- ----------------------------------- -----------------------------------

------------------------------------- ----------------------------------- -----------------------------------

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------------------------------------- ----------------------------------- -----------------------------------
</Table>

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