Document:

Note Purchase Agreement, dated as of June 9, 2006

    

    
      	
              CONFIDENTIAL:
                Subject to Restrictions on Dissemination

              Set
                Forth in Section 7 of this
                Agreement

            

    

     

     

     

     

    
      

      

    

     

     

     

    NOTE
      PURCHASE AGREEMENT

     

    Dated
      as
      of June 9, 2006

     

    Among

     

    CONTINENTAL
      AIRLINES, INC.,

    Owner,

     

    and

     

    WILMINGTON
      TRUST COMPANY,

    Not
      in
      its individual capacity

    except
      as
      expressly provided herein,

    but
      solely as Mortgagee, Subordination Agent

    under
      the
      Intercreditor Agreement and Pass Through Trustee

    under
      each of the Pass Through Trust Agreements

     

    

     

    

     

     

    
      

      

    

     

    

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    CONTENTS

     

    
      
        	
                 

                SECTION
                  1.  DEFINITIONS AND
                  CONSTRUCTION

              	
                 

                2

              
	
                 

                SECTION
                  2.  SECURED LOANS;
                  CLOSING

              	
                 

                2

              
	 	
                2.1  Making
                  of Loans and Issuance of Equipment
                  Notes

              	
                2

              
	 	
                2.2  Closing

              	
                2

              
	
                 

                SECTION
                  3.  [Intentionally
                  omitted.]

              	
                 

                3

              
	
                 

                SECTION
                  4.  CONDITIONS
                  PRECEDENT

              	
                 

                3

              
	 	
                4.1  Conditions
                  Precedent to the Obligations of the Pass Through
                  Trustees

              	
                3

              
	 	
                4.2  Conditions
                  Precedent to Obligations of
                  Mortgagee

              	
                6

              
	 	
                4.3  Conditions
                  Precedent to Obligations of
                  Owner

              	
                6

              
	 	
                4.4  Post-Recordation
                  Opinion

              	
                7

              
	
                 

                SECTION
                  5.  REPRESENTATIONS AND
                  WARRANTIES

              	
                 

                7

              
	 	
                5.1  Owner’s
                  Representations and Warranties

              	
                7

              
	 	
                5.2  WTC’s
                  Representations and Warranties

              	
                9

              
	
                 

                SECTION
                  6.  COVENANTS, UNDERTAKINGS AND
                  AGREEMENTS

              	
                 

                12

              
	 	
                6.1  Covenants
                  of Owner

              	
                12

              
	 	
                6.2  Covenants
                  of WTC

              	
                13

              
	 	
                6.3  Covenants
                  of Note Holders

              	
                14

              
	 	
                6.4  Agreements

              	
                15

              
	
                 

                SECTION
                  7.  CONFIDENTIALITY

              	
                 

                15

              
	
                 

                SECTION
                  8.  INDEMNIFICATION AND
                  EXPENSES

              	
                 

                16

              
	 	
                8.1  General
                  Indemnity

              	
                16

              
	 	
                8.2  Expenses

              	
                20

              
	 	
                8.3  General
                  Tax Indemnity

              	
                21

              
	 	
                8.4  Payments

              	
                28

              
	 	
                8.5  Interest

              	
                28

              
	 	
                8.6  Benefit
                  of Indemnities

              	
                29

              
	
                 

                SECTION
                  9.  ASSIGNMENT OR TRANSFER OF
                  INTEREST

              	
                 

                29

              
	 	
                9.1  Note
                  Holders

              	
                29

              
	 	
                9.2  Effect
                  of Transfer

              	
                29

              
	
                 

                SECTION
                  10.  SECTION 1110

              	
                 

                29

              
	
                 

                SECTION
                  11.  CHANGE OF
                  CITIZENSHIP

              	
                 

                30

              
	 	
                11.1  Generally

              	
                30

              
	 	
                11.2  Mortgagee

              	
                30

              

      

       

       

      
        
          
            
              Page
                i

            

            
            

          

          
            
            

            
              

            

          

          
            
            

            
              

            

          

        

 

      
        	
                 

                SECTION
                  12.  MISCELLANEOUS

              	
                 

                30

              
	 	
                12.1  Amendments

              	
                30

              
	 	
                12.2  Severability

              	
                30

              
	 	
                12.3  Survival

              	
                31

              
	 	
                12.4  Reproduction
                  of Documents

              	
                31

              
	 	
                12.5  Counterparts

              	
                31

              
	 	
                12.6  No
                  Waiver

              	
                31

              
	 	
                12.7  Notices

              	
                31

              
	 	
                12.8  GOVERNING
                  LAW; SUBMISSION TO JURISDICTION;
                  VENUE

              	
                32

              
	 	
                12.9  Third-Party
                  Beneficiary

              	
                33

              
	 	
                12.10  Entire
                  Agreement

              	
                33

              
	 	
                12.11  Further
                  Assurances

              	
                33

              

      

    

    
       

       

      SCHEDULES

       

      SCHEDULE
        1 - Accounts;
        Addresses

      SCHEDULE
        2 -  Certain
        Terms

       

      EXHIBITS

       

      EXHIBIT
        A
        -  Opinion
        of Special Counsel to Owner

      EXHIBIT
        B
        -  Opinion
        of Legal Department of Owner

      EXHIBIT
        C
        -  Opinion
        of Special Counsel to Mortgagee and to the Pass
        Through Trustees

      EXHIBIT
        D
        -  Opinion
        of Special Counsel in Oklahoma City,
        Oklahoma

      
        EXHIBIT E
          -  Existing
          Security Release

      

       

    

    
      
        
          Page
            ii

        

        
        

      

      
        
        

        
          

        

      

      
        BACK

        
          

        

      

    

     

    NOTE
      PURCHASE AGREEMENT

     

    NOTE
      PURCHASE AGREEMENT, dated as of June 9, 2006 (this “Agreement”), among
      (a) CONTINENTAL AIRLINES, INC., a Delaware corporation (“Owner”),
      (b) WILMINGTON TRUST COMPANY, a Delaware banking corporation, not in its
      individual capacity, except as expressly provided herein, but solely as
      Mortgagee (in its capacity as Mortgagee, “Mortgagee” and in its individual
      capacity, “WTC”), (c) WILMINGTON TRUST COMPANY, not in its individual
      capacity, except as expressly provided herein, but solely as Pass Through
      Trustee under each of the Pass Through Trust Agreements (each, a “Pass Through
      Trustee”) and (d) WILMINGTON TRUST COMPANY, not in its individual capacity,
      except as expressly provided herein, but solely as Subordination Agent under
      the
      Intercreditor Agreement (“Subordination Agent”).

     

    RECITALS

     

    A. Owner
      is
      the owner of the Pledged Spare Parts, and the Owner wishes to issue and sell
      the
      Equipment Notes, to be secured by, among other things, the Pledged Spare Parts.
      The Pledged Spare Parts are currently subject to a Lien securing the Existing
      Securities, which have been called for redemption on the Closing Date.

     

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

     

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

     

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

     

    E. Upon
      issuance of the Equipment Notes, Owner will use a portion of the proceeds from
      the issuance of the Equipment Notes to redeem the Existing Securities on the
      Closing Date.

     

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

     

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

    
      
        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

      

    

     

    
      	
              SECTION
                1.

            	
              DEFINITIONS
                AND CONSTRUCTION

            

    

     

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

     

    
      	
              SECTION
                2.

            	
              SECURED
                LOANS; CLOSING

            

    

     

    
      	 	
              2.1

            	
              Making
                of Loans and Issuance of Equipment
                Notes

            

    

     

    Subject
      to the terms and conditions of this Agreement, at the closing under the
      Underwriting Agreement, upon receipt by the Pass Through Trustees of the
      proceeds from the sale of the Pass Through Certificates:

     

    
      	 	
              (a)

            	
              the
                Class G Pass Through Trustee shall make a secured loan to the Owner
                in the amount of $190,000,000, to be evidenced by a Series G
                Equipment Note;

            

    

     

    
      	 	
              (b)

            	
              the
                Class B Pass Through Trustee shall make a secured loan to the Owner
                in the amount of $130,000,000, to be evidenced by a Series B
                Equipment Note; 

            

    

     

    
      	 	
              (c)

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

            

    

     

    
      	 	
              (d)

            	
              the
                Owner directs the Pass Through Trustees to transfer a portion of
                the
                proceeds from such secured loans in an amount equal to the Redemption
                Price to WTC, as Existing Trustee, to be applied by the Existing
                Trustee
                on the Closing Date to the redemption of the Existing Securities,
                and to
                transfer the balance of such proceeds to the Owner; and
                

            

    

     

    
      	 	
              (e)

            	
              the
                Owner will cause the Existing Security Release to be filed for recordation
                with the FAA.

            

    

     

    
      	 	
              2.2

            	
              Closing

            

    

     

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

     

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

    
      
        
        

      

      
        PAGE
          2

        
          

        

      

      
        BACK

      

    

     

    
      	
              SECTION
                3.

            	
              [Intentionally
                omitted.]

            

    

     

    
      	
              SECTION
                4.

            	
              CONDITIONS
                PRECEDENT

            

    

     

    
      	 	
              4.1

            	
              Conditions
                Precedent to the Obligations of the Pass Through
                Trustees

            

    

     

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

     

    
      	 	
              4.1.1

            	
              Equipment
                Notes

            

    

     

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

     

    
      	 	
              4.1.2

            	
              Delivery
                of Documents

            

    

     

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

     

    

       

      (i) this
        Agreement;

       

      (ii) the
        Trust
        Indenture;

       

      (iii) the
        broker’s report and insurance certificates required by Section 4.09 of the
        Trust Indenture;

       

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

       

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

       

      (vi) the
        Financing Statements;

       

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

    

    
      
        
        

      

      
        PAGE
          3

        
          

        

      

      
        BACK

      

    

    
       

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

       

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

       

      (C) an
        opinion of Richards, Layton & Finger, special counsel to Mortgagee and to
        the Pass Through Trustees, substantially in the form of Exhibit C;
        and

       

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

       

      (viii) the
        Collateral Maintenance Agreement.

    

     

    
      	 	
              4.1.3

            	
              Perfected
                Security Interest

            

    

     

    On
      the
      Closing Date, after giving effect to the filing of the FAA Filed Documents
      and
      the Financing Statements, Mortgagee shall have received a duly perfected first
      priority security interest in all of Owner’s right, title and interest in the
      Pledged Spare Parts, subject only to Permitted Liens.

     

    
      	 	
              4.1.4

            	
              Violation
                of Law

            

    

     

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

     

    
      	 	
              4.1.5

            	
              Representations,
                Warranties and Covenants

            

    

     

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

     

    
      	 	
              4.1.6

            	
              No
                Event of Default

            

    

     

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

    
      
        
        

      

      
        PAGE
          4

        
          

        

      

      
        BACK

      

    

     

    
      	 	
              4.1.7

            	
              Release
                of Existing Security
                Agreement

            

    

     

    The
      Existing Security Agent shall have tendered to Owner the Existing Security
      Release, against receipt of the Redemption Price (as defined in Schedule 2),
      and
      the Existing Security Release shall be prepositioned with FAA counsel to be
      filed promptly on the Closing Date after receipt of the Redemption Price by
      the
      Existing Trustee.

     

    
      	 	
              4.1.8

            	
              Section
                1110

            

    

     

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

     

    
      	 	
              4.1.9

            	
              Filing

            

    

     

    On
      the
      Closing Date (a) the FAA Filed Documents (excluding the Existing Security
      Release) shall have been duly filed for recordation (or shall be in the process
      of being so duly filed for recordation) with the FAA in accordance with the
      Act
      and (b) each Financing Statement shall have been duly filed (or shall be in
      the process of being so duly filed) in the appropriate
      jurisdiction.

     

    
      	 	
              4.1.10

            	
              No
                Proceedings

            

    

     

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

     

    
      	 	
              4.1.11

            	
              Governmental
                Action

            

    

     

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

     

    
      	 	
              4.1.12

            	
              Title

            

    

     

    Owner
      shall have good and marketable title to the Pledged Spare Parts as of the
      Closing Date, free and clear of all Liens, except Permitted
      Liens.

    
      
        
        

      

      
        PAGE
          5

        
          

        

      

      
        BACK

      

    

     

    
      	 	
              4.2

            	
              Conditions
                Precedent to Obligations of
                Mortgagee

            

    

     

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

     

    
      	 	
              4.2.1

            	
              Documents

            

    

     

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

     

    
      	 	
              4.2.2

            	
              Other
                Conditions Precedent

            

    

     

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

     

    
      	 	
              4.3

            	
              Conditions
                Precedent to Obligations of
                Owner

            

    

     

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

     

    
      	 	
              4.3.1

            	
              Documents

            

    

     

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

     

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

       

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

    

     

    
      
        
        

      

      
        PAGE
          6

        
          

        

      

      
        BACK

      

    

     

    
      	 	
              4.3.2

            	
              Other
                Conditions Precedent

            

    

     

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

     

    
      	 	
              4.4

            	
              Post-Recordation
                Opinion

            

    

     

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

     

    
      	
              SECTION
                5.

            	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    
      	 	
              5.1

            	
              Owner’s
                Representations and
                Warranties

            

    

     

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

     

    
      	 	
              5.1.1

            	
              Organization;
                Qualification

            

    

     

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

     

    
      	 	
              5.1.2

            	
              Corporate
                Authorization

            

    

     

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

     

    
      	 	
              5.1.3

            	
              No
                Violation

            

    

     

    The
      execution and delivery by Owner of the Operative Agreements to which it is
      party, the performance by Owner of its obligations thereunder and the
      consummation by Owner on the Closing Date of the transactions contemplated
      thereby, do not and will not (a) violate any provision of the Certificate
      of Incorporation or By-Laws of Owner, (b) violate any Law applicable to or
      binding on Owner or (c) violate or constitute any default under (other than
      any violation or default that would not result in a Material Adverse Change
      to
      Owner), or result in the creation of any Lien (other than as permitted under
      the
      Trust Indenture) upon any Pledged 

    
      
        
        

      

      
        PAGE
          7

        
          

        

      

      
        BACK

      

    

     

    Spare
      Part under, any indenture, mortgage, chattel mortgage, deed of trust,
      conditional sales contract, lease, loan or other material agreement, instrument
      or document to which Owner is a party or by which Owner or any of its properties
      is bound.

     

    
      	 	
              5.1.4

            	
              Approvals

            

    

     

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

     

    
      	 	
              5.1.5

            	
              Valid
                and Binding Agreements

            

    

     

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

     

    
      	 	
              5.1.6

            	
              Registration
                and Recordation

            

    

     

    Except
      for (a) the filing for recordation (and recordation) of the FAA Filed
      Documents and (b) the filing of the Financing Statements (and continuation
      statements relating thereto at periodic intervals), no further action, including
      any filing or recording of any document (including any financing statement
      in
      respect thereof under Article 9 of the UCC) is necessary in order to establish
      and perfect Mortgagee’s security interest in the Pledged Spare Parts as against
      Owner and any other Person, in each case, in any applicable jurisdictions in
      the
      United States.

     

    
      	 	
              5.1.7

            	
              Owner’s
                Location

            

    

     

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

     

    
      	 	
              5.1.8

            	
              Compliance
                With Laws

            

    

     

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

     

    (b) Owner
      holds all licenses, permits and franchises from the appropriate Government
      Entities necessary to authorize Owner to lawfully engage in air transportation
      and to carry on scheduled commercial passenger service as currently conducted,
      except where the 

    
      
        
        

      

      
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          8

        
          

        

      

      
        BACK

      

    

     

    failure
      to so hold any such license, permit or franchise would not give rise to a
      Material Adverse Change to Owner.

     

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

     

    
      	 	
              5.1.9

            	
              Securities
                Laws

            

    

     

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

     

    
      	 	
              5.1.10

            	
              Broker’s
                Fees

            

    

     

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

     

    
      	 	
              5.1.11

            	
              Section
                1110

            

    

     

    Mortgagee,
      on behalf of the Note Holders and the Indenture Indemnitees, is entitled to
      the
      benefits of Section 1110 (as currently in effect) with respect to the right
      to
      take possession of the Pledged Spare Parts and to enforce any of its other
      rights or remedies as provided in the Trust Indenture and the Collateral
      Maintenance Agreement in the event of a case under Chapter 11 of the Bankruptcy
      Code in which Owner is a debtor. 

     

    
      	 	
              5.1.12

            	
              Title

            

    

     

    The
      Owner
      has good and marketable title to the Pledged Spare Parts as of the Closing
      Date,
      free and clear of all Liens, except Permitted Liens.

     

    
      	 	
              5.2

            	
              WTC’s
                Representations and
                Warranties

            

    

     

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

     

    
      	 	
              5.2.1

            	
              Organization,
                Etc.

            

    

     

    WTC
      is a
      Delaware banking corporation duly organized, validly existing and in good
      standing under the Laws of the State of Delaware, holding a valid certificate
      to
      do business as a Delaware banking corporation with banking authority to execute
      and deliver, and perform its obligations under, the Pass Through Trustee
      Agreements and the Operative Agreements to which it is a party.

    
      
        
        

      

      
        PAGE
          9

        
          

        

      

      
        BACK

      

    

     

    
      	 	
              5.2.2

            	
              Corporate
                Authorization

            

    

     

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

     

    
      	 	
              5.2.3

            	
              No
                Violation

            

    

     

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

     

    
      	 	
              5.2.4

            	
              Approvals

            

    

     

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

    
      
        
        

      

      
        PAGE
          10

        
          

        

      

      
        BACK

      

    

     

    
      	 	
              5.2.5

            	
              Valid
                and Binding Agreements

            

    

     

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

     

    
      	 	
              5.2.6

            	
              Citizenship

            

    

     

    WTC
      is a
      Citizen of the United States.

     

    
      	 	
              5.2.7

            	
              No
                Liens

            

    

     

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

     

    
      	 	
              5.2.8

            	
              Litigation

            

    

     

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

     

    
      	 	
              5.2.9

            	
              Securities
                Laws

            

    

     

    Neither
      WTC nor any person authorized to act on its behalf has directly or indirectly
      offered any beneficial interest or Security relating to the ownership of any
      Pledged Spare Part or any interest in the Collateral or any of the Equipment
      Notes or any other interest in or Security under the Collateral for sale to,
      or
      solicited any offer to acquire any such interest or Security from, or has sold
      any such interest or Security to, any Person other than the Subordination Agent
      and the Pass Through Trustees, except for the offering and sale of the Pass
      Through Certificates.

     

    
      	 	
              5.2.10

            	
              Investment

            

    

     

    The
      Equipment Notes to be acquired by the Subordination Agent are being acquired
      by
      it for the account of the Pass Through Trustees, for investment and not with
      a
      view to any resale or 

    
      
        
        

      

      
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          11

        
          

        

      

      
        BACK

      

    

     

    distribution
      thereof, except that, subject to the restrictions on transfer set forth in
      Section 9, the disposition by it of its Equipment Notes shall at all times
      be within its control.

     

    
      	 	
              5.2.11

            	
              Taxes

            

    

     

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

     

    
      	 	
              5.2.12

            	
              Broker’s
                Fees

            

    

     

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

     

    
      	
              SECTION
                6.

            	
              COVENANTS,
                UNDERTAKINGS AND
                AGREEMENTS

            

    

     

    
      	 	
              6.1

            	
              Covenants
                of Owner

            

    

     

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

     

    
      	 	
              6.1.1

            	
              Corporate
                Existence; U.S. Air
                Carrier

            

    

     

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

     

    
      	 	
              6.1.2

            	
              Notice
                of Change of Location

            

    

     

    Owner
      will give Mortgagee timely written notice (but in any event within 30 days
      prior
      to the expiration of the period of time specified under applicable Law to
      prevent lapse of perfection) of any change in its location (as such term is
      used
      in Section 9-307 of the UCC) or legal name and will promptly take any
      action required by Section 4.06 of the Trust Indenture as a result of such
      relocation.

    
      
        
        

      

      
        PAGE
          12

        
          

        

      

      
        BACK

      

    

     

    
      	 	
              6.1.3

            	
              Securities
                Laws

            

    

     

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

     

    
      	 	
              6.2

            	
              Covenants
                of WTC

            

    

     

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

     

    
      	 	
              6.2.1

            	
              Liens

            

    

     

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

     

    
      	 	
              6.2.2

            	
              Securities
                Act

            

    

     

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

     

    
      	 	
              6.2.3

            	
              Performance
                of Agreements

            

    

     

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

     

    
      	 	
              6.2.4

            	
              Withholding
                Taxes

            

    

     

    WTC
      shall
      indemnify (on an after-tax basis) and hold harmless Owner against any United
      States withholding taxes (and related interest, penalties and additions to
      tax)
      as a result of the 

    
      
        
        

      

      
        PAGE
          13

        
          

        

      

      
        BACK

      

    

    failure
      by WTC to withhold on payments to any Note Holder if such Note Holder failed
      to
      provide to Mortgagee necessary certificates or forms to substantiate the right
      to exemption from such withholding tax. 

     

    
      	 	
              6.3

            	
              Covenants
                of Note Holders

            

    

     

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

     

    
      	 	
              6.3.1

            	
              Withholding
                Taxes

            

    

     

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

     

    
      	 	
              6.3.2

            	
              Transfer;
                Compliance

            

    

     

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

     

    (b) Each
      Note
      Holder will not sell, assign, convey, exchange or otherwise transfer any
      Equipment Note or any interest in, or represented by, any Equipment Note (it
      being understood that this provision is not applicable to the Pass Through
      Certificates) unless the proposed transferee thereof first provides Owner with
      both of the following:

     

    

       

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

       

      (ii) a
        written
        covenant that it will not transfer any Equipment Note or any interest in,
        or
        represented by, any Equipment Note unless the subsequent transferee also
        

    

    
      
        
        

      

      
        PAGE
          14

        
          

        

      

      
        BACK

      

    

     

    makes
      the
      representation described in clause (i) above and agrees to comply with this
      clause (ii).

     

    
      	 	
              6.4

            	
              Agreements

            

    

     

    
      	 	
              6.4.1

            	
              Quiet
                Enjoyment

            

    

     

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

     

    
      	 	
              6.4.2

            	
              Consents

            

    

     

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

     

    
      	 	
              6.4.3

            	
              Insurance

            

    

     

    Each
      Pass
      Through Trustee, Subordination Agent, Mortgagee and each Note Holder agrees
      not
      to obtain or maintain insurance for its own account as permitted by
      Section 4.09 of the Trust Indenture if such insurance would limit or
      otherwise adversely affect the coverage of any insurance required to be obtained
      or maintained by Owner pursuant to Section 4.09 of the Trust
      Indenture.

     

    
      	 	
              6.4.4

            	
              Extent
                of Interest of Note
                Holders

            

    

     

    A
      Note
      Holder shall not, as such, have any further interest in, or other right with
      respect to, the Collateral when and if the principal and Premium, if any, of
      and
      interest on the Equipment Note held by such Holder, and all other sums, then
      due
      and payable to such Holder hereunder and under any other Operative Agreement,
      shall have been paid in full.

     

    
      	
              SECTION
                7.

            	
              CONFIDENTIALITY

            

    

     

    Owner,
      Note Holders and Mortgagee shall keep the Note Purchase Agreement and Annex
      B to
      the Trust Indenture confidential and shall not disclose, or cause to be
      disclosed, the same to any Person, except (A) to prospective and permitted
      transferees of Owner’s, a Note Holder’s, a Liquidity Provider’s, Policy
      Provider’s, Mortgagee’s or other Indenture Indemnitee’s interest or their
      respective counsel or special counsel, independent insurance brokers, auditors,
      or other agents who agree to hold such information confidential, (B) to Owner’s,
      a Note Holder’s, a Liquidity Provider’s, the Liquidity Guarantor’s, Policy
      Provider’s, a Pass Through Trustee’s, Mortgagee’s or other Indenture
      Indemnitee’s counsel or special counsel, independent insurance brokers,
      auditors, or other agents, Affiliates or investors who agree to hold such
      information confidential, (C) as may be required by any statute, court or
      administrative order or decree, legal process or governmental ruling or
      regulation, including those of any applicable insurance 

    
      
        
        

      

      
        PAGE
          15

        
          

        

      

      
        BACK

      

    

     

    regulatory
      bodies (including, without limitation, the National Association of Insurance
      Commissioners), federal or state banking examiners, Internal Revenue Service
      auditors or any stock exchange, (D) with respect to a Note Holder or any
      Pass Through Trustee, to a nationally recognized rating agency for the purpose
      of obtaining or confirming a rating on the Equipment Notes or the Pass Through
      Certificates or to support an NAIC rating for the Equipment Notes or
      (E) such other Persons as are reasonably deemed necessary by the disclosing
      party in order to protect the interests of such party or for the purposes of
      enforcing such documents by such party; provided,
      that
      any and all disclosures permitted by clauses (C), (D), or (E) above shall
      be made only to the extent necessary to meet the specific requirements or needs
      of the Persons making such disclosures.

     

    
      	
              SECTION
                8.

            	
              INDEMNIFICATION
                AND EXPENSES

            

    

     

    
      	 	
              8.1

            	
              General
                Indemnity

            

    

     

    
      	 	
              8.1.1

            	
              Indemnity

            

    

     

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

     

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

     

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

     

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

     

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

    
      
        
        

      

      
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              8.1.2

            	
              Exceptions

            

    

     

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

     

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

     

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

     

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

     

    (d) [Intentionally
      Omitted.]

     

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

     

    (f) [Intentionally
      Omitted.]

     

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

     

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

     

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

     

    (j) (i) With
      respect to any Indemnitee (other than Mortgagee), to the extent attributable
      to
      the failure of the Mortgagee to distribute funds received and distributable
      by
      it in 

    
      
        
        

      

      
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    accordance
      with the Trust Indenture, (ii) with respect to any Indemnitee (other than
      the Subordination Agent), to the extent attributable to the failure of the
      Subordination Agent to distribute funds received and distributable by it in
      accordance with the Intercreditor Agreement, (iii) with respect to any
      Indemnitee (other than the Pass Through Trustees), to the extent attributable
      to
      the failure of a Pass Through Trustee to distribute funds received and
      distributable by it in accordance with the Pass Through Trust Agreements,
      (iv) with respect to Mortgagee, to the extent attributable to the
      negligence or willful misconduct of Mortgagee in the distribution of funds
      received and distributable by it in accordance with the Trust Indenture,
      (v) with respect to the Subordination Agent, to the extent attributable to
      the negligence or willful misconduct of the Subordination Agent in the
      distribution of funds received and distributable by it in accordance with the
      Intercreditor Agreement, and (vi) with respect to the Pass Through
      Trustees, to the extent attributable to the negligence or willful misconduct
      of
      a Pass Through Trustee in the distribution of funds received and distributable
      by it in accordance with the Pass Through Trust Agreements;

     

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

     

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

     

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

     

    (n) [Intentionally
      Omitted.]

     

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

     

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

     

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

     

    For
      purposes of this Section 8.1, a Person shall be considered a “related”
Indemnitee with respect to an Indemnitee if such Person is an Affiliate or
      employer of such Indemnitee, a director, officer, employee, agent, or servant
      of
      such Indemnitee or any such Affiliate or a successor or permitted assignee
      of
      any of the foregoing.

    
      
        
        

      

      
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              8.1.3

            	
              Separate
                Agreement

            

    

     

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

     

    
      	 	
              8.1.4

            	
              Notice

            

    

     

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

     

    
      	 	
              8.1.5

            	
              Notice
                of Proceedings; Defense of Claims;
                Limitations

            

    

     

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

     

    (b) Owner
      or
      its insurer(s) shall have the right, at its or their expense, to investigate
      or,
      if Owner or its insurer(s) shall agree not to dispute liability to the
      Indemnitee giving notice of such action, suit or proceeding under this
      Section 8.1.5 for indemnification hereunder or under any insurance policies
      pursuant to which coverage is sought, control (using counsel reasonably
      satisfactory to the respective Indemnitee) the defense of, any action, suit
      or
      proceeding, relating to any Expense for which indemnification is sought pursuant
      to this Section 8.1, and each Indemnitee shall cooperate with Owner or its
      insurer(s) with respect thereto; provided,
      that
      Owner shall not be entitled to control the defense of any such action, suit,
      proceeding or compromise any such Expense (x) during the continuance of any
      Event of Default, (y) if such proceedings will involve a material risk of
      the sale, forfeiture or loss of, or the creation of any Lien (other than a
      Permitted Lien) on any of the Collateral, unless Owner shall have posted a
      bond
      or other security reasonably satisfactory to the relevant Indemnitee with
      respect to such risk or (z) if such proceedings could entail any risk of
      criminal liability being imposed on such Indemnitee. In connection with any
      such
      action, suit or proceeding being controlled by Owner, such Indemnitee shall
      have
      the right to participate therein, at its sole cost and expense, with its own
      counsel reasonably satisfactory to Owner.

     

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

     

    (d) In
      the
      case of any Expense indemnified by the Owner hereunder which is covered by
      a
      policy of insurance maintained by Owner pursuant to Section 4.09 of the
      Indenture, at Owner’s expense, each Indemnitee agrees to cooperate with the
      insurers in the exercise of their

    
      
        
        

      

      
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    rights
      to
      investigate, defend or compromise such Expense as may be required to retain
      the
      benefits of such insurance with respect to such Expense.

     

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

     

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

     

    
      	 	
              8.1.6

            	
              Information

            

    

     

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

     

    
      	 	
              8.1.7

            	
              Effect
                of Other Indemnities; Subrogation; Further
                Assurances

            

    

     

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

     

    
      	 	
              8.1.8

            	
              Refunds

            

    

     

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

     

    
      	 	
              8.2

            	
              Expenses

            

    

     

    
      	 	
              8.2.1

            	
              Invoices
                and Payment

            

    

     

    The
      Mortgagee shall promptly submit to Owner for its prompt approval (which shall
      not be unreasonably withheld) copies of invoices in reasonable detail of the
      Transaction Expenses 

    
      
        
        

      

      
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    for
      which
      it is responsible for providing information as they are received (but in no
      event later than the 90th day after the Closing Date). If so submitted and
      approved, the Owner agrees promptly, but in any event no later than the 105th
      day after the Closing Date, to pay Transaction Expenses. 

     

    
      	 	
              8.2.2

            	
              Payment
                of Other Expenses

            

    

     

    Owner
      shall pay (i) the ongoing fees and expenses of Mortgagee, and (ii) all
      reasonable out-of-pocket costs and expenses (including the reasonable fees
      and
      disbursements of counsel) incurred by Mortgagee or any Note Holder attributable
      to any waiver, amendment or modification of any Operative Agreement to the
      extent requested by Owner.

     

    
      	 	
              8.3

            	
              General
                Tax Indemnity

            

    

     

    
      	 	
              8.3.1

            	
              General

            

    

     

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

    
      
        
        

      

      
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              8.3.2

            	
              Certain
                Exceptions

            

    

     

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

     

    (a) imposed
      on a Tax Indemnitee by the federal government of the United States or any Taxing
      Authority or governmental subdivision of the United States or therein (including
      any state or local Taxing Authority) (i) on, based on, or measured by, gross
      or
      net income or gross or net receipts, including capital gains taxes, excess
      profits taxes, minimum taxes from tax preferences, alternative minimum taxes,
      branch profits taxes, accumulated earnings taxes, personal holding company
      taxes, succession taxes and estate taxes, and any withholding taxes on, based
      on
      or measured by gross or net income or receipts or (ii) on, or with respect
      to,
      or measured by, capital or net worth or in the nature of a franchise tax or
      a
      tax for the privilege of doing business (other than, in the case of clause
      (i)
      or (ii), sales, use, license or property Taxes);

     

    (b) imposed
      on a Tax Indemnitee by any Taxing Authority or governmental subdivision thereof
      or therein outside of the United States (including any Taxing Authority in
      or of
      a territory, possession or commonwealth of the United States) (i) on, based
      on,
      or measured by, gross or net income or gross or net receipts, including capital
      gains taxes, excess profits taxes, minimum taxes from tax preferences,
      alternative minimum taxes, branch profits taxes, accumulated earnings taxes,
      personal holding company taxes, succession taxes and estate taxes, and any
      withholding taxes on, based on or measured by gross or net income or receipts
      or
      (ii) on, or with respect to, or measured by, capital or net worth or in the
      nature of a franchise tax or a tax for the privilege of doing business (other
      than, in the case of clause (i) or (ii), (A) sales, use, license or property
      Taxes, or (B) any Taxes imposed by any Taxing Authority (other than a Taxing
      Authority within whose jurisdiction such Tax Indemnitee is incorporated or
      organized or maintains its principal place of business) if such Tax Indemnitee
      would not have been subject to Taxes of such type by such jurisdiction but
      for
      (I) the location, use or operation of any Pledged Spare Part thereof by an
      Owner
      Person within the jurisdiction of the Taxing Authority imposing such Tax, or
      (II) the activities of any Owner Person in such jurisdiction, including, but
      not
      limited to, use of any aircraft by Owner in such jurisdiction, (III) the status
      of any Owner Person as a foreign entity or as an entity owned in whole or in
      part by foreign persons, (IV) Owner having made (or having been deemed to have
      made) payments to such Tax Indemnitee from the relevant jurisdiction or (V)
      in
      the case of the Pass Through Trustees, the Note Holders or any related Tax
      Indemnitee, the Owner being incorporated or organized or maintaining a place
      of
      business or conducting activities in such jurisdiction);

     

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

     

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

     

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

     

    (f) imposed
      on or with respect to a Tax Indemnitee (including the transferee in those cases
      in which the Tax on transfer is imposed on, or is collected from, the
      transferee) as a result 

    
      
        
        

      

      
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    of
      a
      transfer or other disposition (including a deemed transfer or disposition)
      by
      such Tax Indemnitee or a related Tax Indemnitee of any interest in any Pledged
      Spare Part, any interest arising under the Operative Agreements or any Equipment
      Note or as a result of a transfer or disposition (including a deemed transfer
      or
      disposition) of any interest in a Tax Indemnitee (other than (A) a substitution
      or replacement of any Pledged Spare Part by an Owner Person that is treated
      for
      Tax purposes as a transfer or disposition, or (B) a transfer pursuant to an
      exercise of remedies upon an Event of Default that shall have occurred and
      have
      been continuing);

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    
      
        
        

      

      
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              8.3.3

            	
              Payment

            

    

     

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

     

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

     

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

     

    (d) Each
      Tax
      Indemnitee shall promptly forward to Owner any written notice, bill or advice
      received by it from any Taxing Authority concerning any Tax for which it seeks
      indemnification under this Section 8.3. Owner shall pay any amount for which
      it
      is liable pursuant to this Section 8.3 directly to the appropriate Taxing
      Authority if legally permissible or upon demand of a Tax Indemnitee, to such
      Tax
      Indemnitee within 30 days of such demand (or, if a contest occurs in accordance
      with Section 8.3.4, within 30 days after a Final Determination (as defined
      below)), but in no event more than one Business Day prior to the date the Tax
      to
      which such amount payable hereunder relates is due. If requested by a Tax
      Indemnitee in writing, Owner shall furnish to the appropriate Tax Indemnitee
      the
      original or a certified copy of a receipt for Owner’s payment of any Tax paid by
      Owner or such other evidence of payment of such Tax as is acceptable to such
      Tax
      Indemnitee. Owner shall also furnish promptly upon written request such data
      as
      any Tax Indemnitee may reasonably require to enable such Tax Indemnitee to
      comply with the requirements of any taxing jurisdiction unless such data is
      not
      reasonably available to Owner or, unless such data is specifically requested
      by
      a Taxing Authority, is not customarily furnished by domestic air carriers under
      similar circumstances. For purposes of this Section 8.3, a “Final Determination”
shall mean (i) a decision, judgment, decree or other order by any court of
      competent jurisdiction that occurs pursuant to the provisions of Section 8.3.4,
      which decision, judgment, decree or other order has become final and
      unappealable, (ii) a closing agreement or settlement agreement entered into
      in
      accordance with Section 8.3.4 that has become binding and is not subject to
      further review or appeal (absent fraud, misrepresentation, etc.), or (iii)
      the
      termination of administrative proceedings and the expiration of the time for
      instituting a claim in a court proceeding.

    
      
        
        

      

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

     

    
      	 	
              8.3.4

            	
              Contest

            

    

     

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

    
      
        
        

      

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

     

    (b) Notwithstanding
      the foregoing, in no event shall a Tax Indemnitee be required to pursue any
      contest (or to permit Owner to pursue any contest) unless (i) Owner shall have
      agreed to pay such Tax Indemnitee on demand all reasonable costs and expenses
      incurred by such Tax Indemnitee in connection with contesting such Taxes,
      including, without limitation, all reasonable out of pocket costs and expenses
      and reasonable attorneys’ and accountants’ fees and disbursements, (ii) if such
      contest shall involve the payment of the claim, Owner shall advance the amount
      thereof (to the extent indemnified hereunder) plus interest, penalties and
      additions to tax with respect thereto that are required to be paid prior to
      the
      commencement of such contest on an interest-free after-Tax basis to such Tax
      Indemnitee (and such Tax Indemnitee shall promptly pay to the Owner any net
      realized tax benefits resulting from such advance including any tax benefits
      resulting from making such payment), (iii) such Tax Indemnitee shall have
      reasonably determined that the action to be taken will not result in any
      material risk of forfeiture, sale or loss of any Pledged Spare Part (unless
      Owner shall have made provisions to protect the interests of any such Tax
      Indemnitee in a manner reasonably satisfactory to such Tax Indemnitee)
      (provided, that such Tax Indemnitee agrees to notify Owner in writing promptly
      after it becomes aware of any such risk), (iv) no Event of Default shall have
      occurred and be continuing unless Owner has provided security for its
      obligations hereunder by advancing to such Tax Indemnitee before proceeding
      or
      continuing with such contest, the amount of the Tax being contested, plus any
      interest and penalties and an amount estimated in good faith by such Tax
      Indemnitee for expenses, and (v) prior to commencing any judicial action
      controlled by Owner, Owner shall have acknowledged its liability for such claim
      hereunder, provided that Owner shall not be bound by its acknowledgment if
      the
      Final Determination articulates conclusions of law and fact that demonstrate
      that Owner has no liability for the contested amounts hereunder. Notwithstanding
      the foregoing, if any Tax Indemnitee shall release, waive, compromise or settle
      any claim which may be indemnifiable by Owner pursuant to this Section 8.3
      without the written permission of Owner, Owner’s obligation to indemnify such
      Tax Indemnitee with respect to such claim (and all directly related claims
      and
      claims based on the 

    
      
        
        

      

      
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    outcome
      of such claim) shall terminate, subject to Section 8.3.4(c), and subject to
      Section 8.3.4(c), such Tax Indemnitee shall repay to Owner any amount previously
      paid or advanced to such Tax Indemnitee with respect to such claim, plus
      interest at the rate that would have been payable by the relevant Taxing
      Authority with respect to a refund of such Tax.

     

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

     

    
      	 	
              8.3.5

            	
              Refund

            

    

     

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

     

    
      	 	
              8.3.6

            	
              Tax
                Filing

            

    

     

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

    
      
        
        

      

      
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    statement,
      it shall notify such Tax Indemnitee of such requirement and prepare and deliver
      such report, return or statement to such Tax Indemnitee in a manner satisfactory
      to such Tax Indemnitee within a reasonable time prior to the time such report,
      return or statement is to be filed.

     

    
      	 	
              8.3.7

            	
              Forms

            

    

     

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

     

    
      	 	
              8.3.8

            	
              Non-Parties

            

    

     

    If
      a Tax
      Indemnitee is not a party to this Agreement, Owner may require the Tax
      Indemnitee to agree in writing, in a form reasonably acceptable to Owner, to
      the
      terms of this Section 8.3 and Section 12.8 prior to making any payment to such
      Tax Indemnitee under this Section 8.3.

     

    
      	 	
              8.3.9

            	
              Subrogation

            

    

     

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

     

    
      	 	
              8.4

            	
              Payments

            

    

     

    Any
      payments made pursuant to Section 8.1 or 8.3 shall be due on the 30th day
      after demand therefor and shall be made directly to the relevant Indemnitee
      or
      Tax Indemnitee or to Owner, in immediately available funds at such bank or
      to
      such account as specified by such Indemnitee or Tax Indemnitee or Owner, as
      the
      case may be, in written directives to the payor, or, if no such direction shall
      have been given, by check of the payor payable to the order of, and mailed
      to,
      such Indemnitee or Tax Indemnitee or Owner, as the case may be, by certified
      mail, postage prepaid, at its address as set forth in this
      Agreement.

     

    
      	 	
              8.5

            	
              Interest

            

    

     

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

    
      
        
        

      

      
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              8.6

            	
              Benefit
                of Indemnities

            

    

     

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

     

    
      	
              SECTION
                9.

            	
              ASSIGNMENT
                OR TRANSFER OF INTEREST

            

    

     

    
      	 	
              9.1

            	
              Note
                Holders

            

    

     

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

     

    
      	 	
              9.2

            	
              Effect
                of Transfer

            

    

     

    Upon
      any
      Transfer in accordance with Section 9.1 (other than any Transfer by any
      Note Holder, to the extent it grants only participations in Equipment Notes
      or
      in its beneficial interest therein), Transferee shall be deemed a “Note Holder,”
for all purposes of this Agreement and the other Operative Agreements, and
      the
      transferring Note Holder shall be released from all of its liabilities and
      obligations under this Agreement and any other Operative Agreements to the
      extent such liabilities and obligations arise after such Transfer and, in each
      case, to the extent such liabilities and obligations are assumed by the
      Transferee; provided,
      that
      such transferring Note Holder (and its respective Affiliates, successors,
      assigns, agents, servants, representatives, directors and officers) will
      continue to have the benefit of any rights or indemnities under any Operative
      Agreement vested or relating to circumstances, conditions, acts or events prior
      to such Transfer.

     

    
      	
              SECTION
                10.

            	
              SECTION
                1110

            

    

     

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

    
      
        
        

      

      
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              SECTION
                11.

            	
              CHANGE
                OF CITIZENSHIP

            

    

     

    
      	 	
              11.1

            	
              Generally

            

    

     

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

     

    
      	 	
              11.2

            	
              Mortgagee

            

    

     

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

     

    
      	
              SECTION
                12.

            	
              MISCELLANEOUS

            

    

     

    
      	 	
              12.1

            	
              Amendments

            

    

     

    No
      provision of this Agreement may be amended, supplemented, waived, modified,
      discharged, terminated or otherwise varied orally, but only by an instrument
      in
      writing that specifically identifies the provision of this Agreement that it
      purports to amend, supplement, waive, modify, discharge, terminate or otherwise
      vary and is signed by the party against which the enforcement of the amendment,
      supplement, waiver, modification, discharge, termination or variance is sought.
      Each such amendment, supplement, waiver, modification, discharge, termination
      or
      variance shall be effective only in the specific instance and for the specific
      purpose for which it is given. No provision of this Agreement shall be varied
      or
      contradicted by oral communication, course of dealing or performance or other
      manner not set forth in an agreement, document or instrument in writing and
      signed by the party against which enforcement of the same is
      sought.

     

    
      	 	
              12.2

            	
              Severability

            

    

     

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

    
      
        
        

      

      
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              12.3

            	
              Survival

            

    

     

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

     

    
      	 	
              12.4

            	
              Reproduction
                of Documents

            

    

     

    This
      Agreement, all schedules and exhibits hereto and all agreements, instruments
      and
      documents relating hereto, including, without limitation, (a) consents, waivers
      and modifications that may hereafter be executed and (b) financial
      statements, certificates and other information previously or hereafter furnished
      to any party hereto, may be reproduced by such party by any photographic,
      photostatic, microfilm, micro-card, miniature photographic or other similar
      process, and such party may destroy any original documents so reproduced. Any
      such reproduction shall be as admissible in evidence as the original itself
      in
      any judicial or administrative proceeding (whether or not the original is in
      existence and whether or not such reproduction was made by such party in the
      regular course of business) and any enlargement, facsimile or further
      reproduction of such reproduction likewise is admissible in
      evidence.

     

    
      	 	
              12.5

            	
              Counterparts

            

    

     

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

     

    
      	 	
              12.6

            	
              No
                Waiver

            

    

     

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

     

    
      	 	
              12.7

            	
              Notices

            

    

     

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

    
      
        
        

      

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

     

    
      	 	
              12.8

            	
              GOVERNING
                LAW; SUBMISSION TO JURISDICTION;
                VENUE

            

    

     

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

     

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

     

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

     

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

    
      
        
        

      

      
        PAGE
          32

        
          

        

      

      
        BACK

      

    

     

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

     

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

     

    
      	 	
              12.9

            	
              Third-Party
                Beneficiary

            

    

     

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

     

    
      	 	
              12.10

            	
              Entire
                Agreement

            

    

     

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

     

    
      	 	
              12.11

            	
              Further
                Assurances

            

    

     

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

     

    [This
      space intentionally left blank]

    

    
      
        
          

        

        
        

      

      
        PAGE
          33

        
          

        

      

      
        BACK

        
          

        

      

    

     

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

     

    
      
        
           

          
            	 	 	 
	 	
                    CONTINENTAL
                      AIRLINES, INC.

                  
	 	 	Owner
	 
 	 
 	 
 
	 	By:  	 
	 	
                    
Name:
	 	
                    Title: 

                  

          

        

      

       

    

    
      
        
          
            
              
                
                  
                     

                    
                      	 	 	 
	 	
                              WILMINGTON
                                TRUST
                                COMPANY,

                            
	 	 	
                              not
                                in its individual capacity, except as

                              expressly
                                provided herein, but solely as

                              Mortgagee

                            
	 
 	 
 	 
 
	 	By:  	 
	 	
                              
Name:
	 	
                              Title: 

                            

                    

                  

                

                 

                
                  
                    
                      
                         

                        
                          	 	 	 
	 	
                                  WILMINGTON
                                    TRUST
                                    COMPANY,

                                
	 	 	
                                  not
                                    in its individual capacity, except as

                                  expressly
                                    provided herein, but solely as Pass

                                  Through
                                    Trustee under the Pass Through Trust

                                  Agreement
                                    for the Continental Airlines Pass

                                  Through
                                    Trust, 2006-1G

                                
	 
 	 
 	 
 
	 	By:  	 
	 	
                                  
Name:
	 	
                                  Title: 

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
             

            
              	 	 	 
	 	
                      WILMINGTON
                        TRUST
                        COMPANY,

                    
	 	 	
                      not
                        in its individual capacity, except as

                      expressly
                        provided herein, but solely as Pass

                      Through
                        Trustee under the Pass Through Trust

                      Agreement
                        for the Continental Airlines Pass

                      Through
                        Trust, 2006-1B

                    
	 
 	 
 	 
 
	 	By:  	 
	 	
                      
Name:
	 	
                      Title: 

                    

            

          

        

         

        
          
            
               

            

          

        

      

    

    
      
        
        

      

      
        SIGNATURE
          PAGE

        
          

        

      

      
        BACK

      

    

     

    
      
        
          
             

            
              	 	 	 
	 	
                      WILMINGTON
                        TRUST COMPANY,

                    
	 	 	
                      not
                        in its individual capacity, except as

                      expressly
                        provided herein, but solely as

                      Subordination
                        Agent

                    
	 
 	 
 	 
 
	 	By:  	 
	 	
                      
Name:
	 	
                      Title: 

                    

            

          

        

         

      

    

    
      
        
          

        

        
        

      

      
        SIGNATURE
          PAGE

        
          

        

      

      
        BACK

        
          

        

      

    

    
      
         

      

      
        	
                SCHEDULE
                  1 TO

                NOTE
                  PURCHASE AGREEMENT

              

      

       
ACCOUNTS;
      ADDRESSES

      

    
      	 	
              Account
                for Payments

            	
              Address
                for Notices 

            
	 Continental
              Airlines, Inc.	
              JPMorgan
                Chase Bank

              New
                York, New York 10081

              Account
                No.: 910-2-499291

              ABA#:
                021-000021 

              Reference:
                Continental Spare Parts-06

            	 Continental
              Airlines, Inc.
              1600
                Smith Street

              Dept.
                HQS-FN

              Houston,
                Texas 77002

              Attention:
                Treasurer

              Facsimile:
                (713) 324-2447

            
	
               

              Wilmington
                Trust Company, Mortgagee

            	
               

              Wilmington
                Trust Company

              Wilmington,
                Delaware 19890

              Account
                No.: 076969-000

              ABA#:
                031100092

              Attention:
                Corporate Trust

               Administration

              Reference:
                Continental Spare Parts-06

            	
               

              Wilmington
                Trust Company

              Rodney
                Square North

              1100
                North Market Street

              Wilmington,
                Delaware 19890

              Attention:
                Corporate Trust 

               Administration

              Facsimile:
                (302) 636-4140

            
	
               

              Wilmington
                Trust Company, as Subordination Agent

            	
               

              Wilmington
                Trust Company

              Wilmington,
                Delaware 19890

              Account
                No.: 076970-000

              ABA#:
                031100092

              Attention:
                Corporate Trust

               Administration

              Reference:
                Continental Spare Parts-06

            	
               

              Wilmington
                Trust Company

              Rodney
                Square North

              1100
                North Market Street

              Wilmington,
                Delaware 19890 

              Attention:
                Corporate Trust 

               Administration

              Facsimile:
                (302) 636-4140

            
	
               

              Wilmington
                Trust Company, as Pass Through Trustee for the 2006-1G Pass Through
                Trust

            	
               

              Wilmington
                Trust Company

              Wilmington,
                Delaware 19890

              Account
                No.: 076971-000

              ABA#:
                031100092

              Attention:
                Corporate Trust

               Administration

              Reference:
                Continental Spare Parts-06

            	
               

              Wilmington
                Trust Company

              Rodney
                Square North

              1100
                North Market Street

              Wilmington,
                Delaware 19890

              Attention:
                Corporate Trust

               Administration

              Facsimile:
                (302) 636-4140

            
	
               

              Wilmington
                Trust Company, as Pass Through Trustee for the 2006-1B Pass Through
                Trust

            	
               

              Wilmington
                Trust Company

              Wilmington,
                Delaware 19890

              Account
                No.: 076972-000

              ABA#:
                031100092

              Attention:
                Corporate Trust

               Administration

              Reference:
                Continental Spare Parts-06

            	
               

              Wilmington
                Trust Company

              Rodney
                Square North

              1100
                North Market Street

              Wilmington,
                Delaware 19890

              Attention:
                Corporate Trust

               Administration

              Facsimile:
                (302) 636-4140

            

    

    

    

    
      
        
          

        

        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

        
          

        

      

    

     

    
      
        	
                SCHEDULE 2
                  - CERTAIN TERMS

                NOTE
                  PURCHASE AGREEMENT

              

      

    

     

    CERTAIN
      TERMS

    
      	
               

              Defined
                Term

            	
               

              Definition

            
	
               

              Initial
                Period Debt Rate

            	
               

              In
                the case of the Series G, 5.6325% per annum and, in the case of the
                Series B, 8.4075% per annum.

            
	
               

              Redemption
                Price

            	
               

              $292,673,230.

            

    

    

    

    
      
        
          

        

        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

        
          

        

      

    

    
       

    

    
      	
              EXHIBIT
                A TO

              NOTE
                PURCHASE AGREEMENT

            

    

     

    [Opinion
      of Special Counsel to Owner]

    

    

    
      
        
          

        

        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

        
          

        

      

    

    
       

    

    
      	
              EXHIBIT B
                TO

              NOTE
                PURCHASE AGREEMENT

            

    

     

     

    [Opinion
      of Legal Department of Owner]

    

    

    
      
        
          

        

        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

        
          

        

      

    

    
       

    

    
      	
              EXHIBIT C
                TO

              NOTE
                PURCHASE AGREEMENT

            

    

     

    [Opinion
      of Special Counsel to Mortgagee and to the Pass Through
      Trustees]

    

    

    

    
      
        
          

        

        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

        
          

        

      

    

    
       

    

    
      	
              EXHIBIT D
                TO

              NOTE
                PURCHASE AGREEMENT

            

    

     

    [Opinion
      of Special Counsel in Oklahoma City, Oklahoma]

    

    

    

    
      
        
          

        

        
        

      

      
        PAGE
          1

        
          

        

      

      
        BACK

        
          

        

      

    

    
       

    

    
      	
              EXHIBIT E
                TO

              NOTE
                PURCHASE AGREEMENT

            

    

     

    

      RELEASE

       

      The
        undersigned hereby releases from the terms of the encumbrances described
        on the
        attached Appendix, which shall be of no further force or effect, all of its
        right, title and interest in and to the collateral covered thereby.

       

      Dated
        this _____ day of __________, 2006.

       

      
        
          
            
               

              
                	 	 	 
	 	
                        WILMINGTON
                          TRUST COMPANY

                        as Security Agent

                      
	 
 	
                        
 

                        By:

                      	
                        
 

                         

                        
                          

                        

                      
	 	Title:	 
	 	
                        

                      

              

            

          

           

        

      

      

        
          
            
              

            

            
            

          

          
            PAGE
              1

            
              

            

          

          
            BACK

            
              

            

          

        

      

      

      APPENDIX

       

      Spare
        Parts Security Agreement dated as of December 6, 2002, by Continental Airlines,
        Inc. in favor of Wilmington Trust Company as Security Agent, recorded by
        the
        Federal Aviation Administration on January 9, 2003, as Conveyance No. J001986,
        as amended by Amendment No. 1 to Spare Parts Security Agreement dated as
        of May
        9, 2003, recorded on May 13, 2003 as Conveyance No. MM024723, supplemented
        by
        Supplemental Security Agreement No. 1 dated as of July 29, 2003, recorded
        on
        August 5, 2003, as Conveyance No. XX024435 and further amended by Amendment
        No.
        2 to Spare Parts Security Agreement dated as of April 16, 2004, recorded
        on
        April 26, 2004, as Conveyance No. Y008129.Trust Indenture and Mortgage, dated as of June 9, 2006

     

    CONFIDENTIAL:
      Annex B of this Trust Indenture and Mortgage has been redacted for
      confidentiality purposes.

     

    
      

    

     

    TRUST
      INDENTURE AND MORTGAGE

     

    Dated
      as
      of June 9, 2006

     

    Between

     

    CONTINENTAL
      AIRLINES, INC.,

     

    Owner

     

    and

     

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity,

    except
      as
      expressly stated herein,

    but
      solely as Mortgagee,

     

    Mortgagee

     

      
        

      

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    TABLE
      OF CONTENTS

    Page

    
      
        
          	
                   

                  GRANTING
                    CLAUSE

                	
                   

                  1

                
	
                   

                  ARTICLE
                    I  DEFINITIONS

                	
                   

                  4

                
	
                   

                  ARTICLE
                    II  THE EQUIPMENT
                    NOTES

                	
                   

                  4

                
	 	
                   

                  SECTION
                    2.01.  Form of Equipment
                    Notes

                	
                   

                  4

                
	 	
                  SECTION
                    2.02.  Issuance and Terms of Equipment
                    Notes

                	
                  10

                
	 	
                  SECTION
                    2.03.  [Intentionally
                    Omitted]

                	
                  12

                
	 	
                  SECTION
                    2.04.  Method of
                    Payment

                	
                  12

                
	 	
                  SECTION
                    2.05.  Application of
                    Payments

                	
                  14

                
	 	
                  SECTION
                    2.06.  Termination of Interest in
                    Collateral

                	
                  14

                
	 	
                  SECTION
                    2.07.  Registration Transfer and Exchange
                    of Equipment Notes

                	
                  14

                
	 	
                  SECTION
                    2.08.  Mutilated, Destroyed, Lost or
                    Stolen Equipment Notes

                	
                  16

                
	 	
                  SECTION
                    2.09.  Payment of Expenses on Transfer;
                    Cancellation

                	
                  16

                
	 	
                  SECTION
                    2.10.  [Intentionally
                    Omitted.]

                	
                  16

                
	 	
                  SECTION
                    2.11.  Optional Redemptions of Equipment
                    Notes

                	
                  16

                
	 	
                  SECTION
                    2.12.  Redemptions; Notice of
                    Redemption

                	
                  17

                
	 	
                  SECTION
                    2.13.  Subordination

                	
                  18

                
	
                   

                  ARTICLE
                    III  RECEIPT, DISTRIBUTION AND
                    APPLICATION OF PAYMENTS

                	
                   

                  18

                
	 	
                   

                  SECTION
                    3.01.  Basic
                    Distributions

                	
                   

                  18

                
	 	
                  SECTION
                    3.02.  Redemptions

                	
                  19

                
	 	
                  SECTION
                    3.03.  Payments After Event of
                    Default

                	
                  20

                
	 	
                  SECTION
                    3.04.  Certain
                    Payments

                	
                  21

                
	 	
                  SECTION
                    3.05.  Other Payments

                	
                  22

                
	 	
                  SECTION
                    3.06.  Release of Cash
                    Collateral

                	
                  22

                
	 	
                  SECTION
                    3.07.  Securities
                    Account

                	
                  22

                
	
                   

                  ARTICLE
                    IV  COVENANTS

                	
                   

                  23

                
	 	
                   

                  SECTION
                    4.01.  Notice of Change of
                    Location

                	
                   

                  23

                
	 	
                  SECTION
                    4.02.  Liens

                	
                  23

                
	 	
                  SECTION
                    4.03.  Maintenance

                	
                  24

                
	 	
                  SECTION
                    4.04.  Use, Designated Location and
                    Possession

                	
                  24

                
	 	
                  SECTION
                    4.05.  Permitted Sale or
                    Dispositions

                	
                  27

                
	 	
                  SECTION
                    4.06.  Certain
                    Assurances

                	
                  27

                
	 	
                  SECTION
                    4.07.  Merger of
                    Owner

                	
                  27

                
	 	
                  SECTION
                    4.08.  Indenture
                    Obligations

                	
                  28

                
	 	
                  SECTION
                    4.09.  Insurance

                	
                  28

                
	
                   

                  ARTICLE
                    V  EVENTS OF DEFAULT; REMEDIES OF
                    MORTGAGEE

                	
                   

                  30

                
	 	
                   

                  SECTION
                    5.01.  Event of
                    Default

                	
                   

                  30

                
	 	
                  SECTION
                    5.02.  Remedies

                	
                  31

                

        

         

        

          
            
              
              

            

            
              
              

              
                

              

            

            
              BACK

            

          

           

        

        TABLE
          OF CONTENTS

        (continued) 

        Page

        
          	 	
                  SECTION
                    5.03.  Return of Collateral,
                    Etc.

                	
                  33

                
	 	
                  SECTION
                    5.04.  Remedies
                    Cumulative

                	
                  34

                
	 	
                  SECTION
                    5.05.  Discontinuance of
                    Proceedings

                	
                  34

                
	 	
                  SECTION
                    5.06.  Waiver of Past
                    Defaults

                	
                  34

                
	 	
                  SECTION
                    5.07.  Appointment of
                    Receiver

                	
                  34

                
	 	
                  SECTION
                    5.08.  Mortgagee Authorized to Execute
                    Bills of Sale, Etc.

                	
                  35

                
	 	
                  SECTION
                    5.09.  Rights of Note Holders to Receive
                    Payment

                	
                  35

                
	
                   

                  ARTICLE
                    VI  DUTIES OF THE
                    MORTGAGEE

                	
                   

                  35

                
	 	
                   

                  SECTION
                    6.01.  Notice of Event of
                    Default

                	
                   

                  35

                
	 	
                  SECTION
                    6.02.  Action Upon Instructions; Certain
                    Rights and Limitations

                	
                  36

                
	 	
                  SECTION
                    6.03.  Indemnification

                	
                  36

                
	 	
                  SECTION
                    6.04.  No Duties Except as Specified in
                    Trust Indenture or Instructions

                	
                  37

                
	 	
                  SECTION
                    6.05.  No Action Except Under Trust
                    Indenture or Instructions

                	
                  37

                
	 	
                  SECTION
                    6.06.  Investment of Amounts Held by
                    Mortgagee

                	
                  37

                
	
                   

                  ARTICLE
                    VII  THE MORTGAGEE

                	
                   

                  38

                
	 	
                   

                  SECTION
                    7.01.  Acceptance of Trusts and
                    Duties

                	
                   

                  38

                
	 	
                  SECTION
                    7.02.  Absence of
                    Duties

                	
                  38

                
	 	
                  SECTION
                    7.03.  No Representations or Warranties
                    as to Pledged Spare Parts or Spare Parts Documents

                	
                  38

                
	 	
                  SECTION
                    7.04.  No Segregation of Monies; No
                    Interest

                	
                  39

                
	 	
                  SECTION
                    7.05.  Reliance; Agreements; Advice of
                    Counsel

                	
                  39

                
	 	
                  SECTION
                    7.06.  Compensation

                	
                  39

                
	 	
                  SECTION
                    7.07.  Instructions from Note
                    Holders

                	
                  40

                
	
                   

                  ARTICLE
                    VIII  INDEMNIFICATION

                	
                   

                  40

                
	 	
                   

                  SECTION
                    8.01.  Scope of
                    Indemnification

                	
                   

                  40

                
	
                   

                  ARTICLE
                    IX  SUCCESSOR AND SEPARATE
                    TRUSTEES

                	
                   

                  40

                
	 	
                   

                  SECTION
                    9.01.  Resignation of Mortgagee;
                    Appointment of Successor

                	
                   

                  40

                
	 	
                  SECTION
                    9.02.  Appointment of Additional and
                    Separate Trustees

                	
                  41

                
	
                   

                  ARTICLE
                    X  SUPPLEMENTS AND AMENDMENTS TO THIS TRUST
                    INDENTURE AND OTHER DOCUMENTS

                	
                   

                  43

                
	 	
                   

                  SECTION
                    10.01.  Instructions of Majority;
                    Limitations

                	
                   

                  43

                
	 	
                  SECTION
                    10.02.  Mortgagee
                    Protected

                	
                  44

                
	 	
                  SECTION
                    10.03.  Documents Mailed to Note
                    Holders

                	
                  44

                
	 	
                  SECTION
                    10.04.  No Request Necessary for Trust
                    Indenture Supplement

                	
                  44

                

        

         

         

        

          
            
              
              

            

            
              ii

              
                

              

            

            
              BACK

            

          

           

        

         

          TABLE
            OF CONTENTS

          (continued) 

          Page

        

        
          	
                  ARTICLE
                    XI  MISCELLANEOUS

                	
                  45

                
	 	
                   

                  SECTION
                    11.01.  Termination of Trust
                    Indenture

                	
                   

                  45

                
	 	
                  SECTION
                    11.02.  No Legal Title to Collateral in
                    Note Holders

                	
                  45

                
	 	
                  SECTION
                    11.03.  Sale of Collateral by Mortgagee
                    Is Binding

                	
                  45

                
	 	
                  SECTION
                    11.04.  Trust Indenture for Benefit of
                    Owner, Mortgagee, Note Holders and the other Indenture
                    Indemnitees

                	
                  45

                
	 	
                  SECTION
                    11.05.  Notices

                	
                  46

                
	 	
                  SECTION
                    11.06.  Severability

                	
                  46

                
	 	
                  SECTION
                    11.07.  No Oral Modification or
                    Continuing Waivers

                	
                  46

                
	 	
                  SECTION
                    11.08.  Successors and
                    Assigns

                	
                  46

                
	 	
                  SECTION
                    11.09.  Headings

                	
                  47

                
	 	
                  SECTION
                    11.10.  Normal Commercial
                    Relations

                	
                  47

                
	 	
                  SECTION
                    11.11.  Governing Law; Counterpart
                    Form

                	
                  47

                
	 	
                  SECTION
                    11.12.  Voting By Note
                    Holders

                	
                  47

                
	 	
                  SECTION
                    11.13.  Bankruptcy

                	
                  47

                
	 	
                  SECTION
                    11.14.  Agreement as to Fair Market
                    Value

                	
                  47

                

        

         

        ANNEX
          A Definitions

        ANNEX
          B Insurance

        EXHIBIT
          A Form
          of Trust Indenture Location Supplement

        EXHIBIT
          B Form
          of Trust Indenture Collateral Supplement

        SCHEDULE
          I Designated
          Locations

      

    

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        BACK

      

    

     

    TRUST
      INDENTURE AND MORTGAGE

     

    TRUST
      INDENTURE AND MORTGAGE, dated as of June 9, 2006 (“Trust Indenture”), between
      CONTINENTAL AIRLINES, INC., a Delaware corporation (“Owner”), and WILMINGTON
      TRUST COMPANY, a Delaware banking corporation, not in its individual capacity,
      except as expressly stated herein, but solely as Mortgagee hereunder (together
      with its successors hereunder, the “Mortgagee”).

    
       

      W I T N E S S E T H:

    

     

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

     

    WHEREAS,
      the Company, which is a certificated air carrier under Section 44705 of title
      49
      of the U.S. Code, and the Mortgagee desire by this Trust Indenture, among other
      things, (i) to provide for the issuance by the Owner of the Equipment Notes
      and
      (ii) to provide for the assignment, mortgage and pledge by the Owner to the
      Mortgagee, as part of the Collateral hereunder, among other things, of all
      of
      the Owner’s right, title and interest in and to the Pledged Spare Parts and,
      except as hereinafter expressly provided, all payments and other amounts
      received hereunder in accordance with the terms hereof, as security for, among
      other things, the Owner’s obligations to the Note Holders and the Indenture
      Indemnitees;

     

    WHEREAS,
      Schedule I to this Trust Indenture specifically describes the locations at
      which
      the Spare Parts and Appliances covered by the security interest of this Trust
      Indenture may be maintained by or on behalf of the Company, and Section 4.04(b)
      of this Trust Indenture provides for the designation of additional locations
      pursuant to Trust Indenture Location Supplements;

     

    WHEREAS,
      all things have been done to make the Equipment Notes, when executed by the
      Owner and authenticated and delivered by the Mortgagee hereunder, the valid,
      binding and enforceable obligations of the Owner; and

     

    WHEREAS,
      all things necessary to make this Trust Indenture the valid, binding and legal
      obligation of the Owner for the uses and purposes herein set forth, in
      accordance with its terms, have been done and performed and have
      happened;

     

    GRANTING
      CLAUSE

     

    NOW,
      THEREFORE, THIS TRUST INDENTURE AND MORTGAGE WITNESSETH, that, to secure the
      prompt payment of the Original Amount of, interest on, Break Amount, if any,
      Premium, if any, and all other amounts due with respect to, all Equipment Notes
      from time to time outstanding hereunder according to their tenor and effect
      and
      to secure the performance and observance by the Owner of all the agreements,
      covenants and provisions contained herein and in the other Operative Agreements
      for the benefit of the Note Holders and each of the Indemnitees, and in
      consideration of the premises and of the covenants herein contained, and of
      the
      acceptance of the Equipment Notes by the holders thereof, and for other good
      and
      valuable consideration the receipt and adequacy whereof are hereby acknowledged,
      the 

    
      
        
        

      

      
        
        

        
          

        

      

      
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    Owner
      has
      granted, bargained, sold, assigned, transferred, conveyed, mortgaged, pledged
      and confirmed, and does hereby grant, bargain, sell, assign, transfer, convey,
      mortgage, pledge and confirm, unto the Mortgagee, its successors in trust and
      assigns, for the security and benefit of, the Note Holders and each of the
      Indenture Indemnitees, a first priority security interest in and mortgage lien
      on all right, title and interest of the Owner in, to and under the following
      described property, rights and privileges, whether now or hereafter acquired
      (which, collectively, together with all property hereafter specifically subject
      to the Lien of this Trust Indenture by the terms hereof or any supplement
      hereto, are included within, and are referred to as, the “Collateral”), to
      wit:

     

    (1) All
      Spare
      Parts and Appliances first placed in service after October 22, 1994 and
      currently owned or hereafter acquired by the Owner that (I) (a) are
      appropriate for incorporation in, installation on, attachment or appurtenance
      to, or use in, (i) one or more of the following models of Aircraft: a
      Boeing model 737-700, 737-800, 737-900, 757-200, 757-300, 767-200, 767-400
      or
      777-200 Aircraft; (ii) any Engine utilized on any such Aircraft; or
      (iii) any other Qualified Spare Part, and (b) are not appropriate for
      incorporation in, installation on, attachment or appurtenance to, or use in,
      any
      other model of Aircraft currently operated by the Owner or any Engine utilized
      on any such other model of Aircraft, (II) are Rotable Parts appropriate for
      incorporation in, installation on, attachment or appurtenance to, or use in
      a
      Boeing model 737-300 or 737-500 Aircraft (or both), any Engine utilized on
      any
      such Aircraft or any other Qualified Spare Part, (III) are Rotable Parts
      appropriate for incorporation in, installation on, attachment or appurtenance
      to, or use in more than one of the following models of Aircraft: a Boeing model
      737-300, 737-500, 737-700, 737-800, 737-900, 757-200, 757-300, 767-200, 767-400
      or 777-200 Aircraft, or any Engine utilized on any such Aircraft or
      (IV) effective on and after the date that the Owner shall have executed and
      delivered to the Mortgagee a Trust Indenture Collateral Supplement, are
      described in such Trust Indenture Collateral Supplement (collectively,
“Qualified
      Spare Parts”),
      provided
      that the
      following shall be excluded from the Lien of this Trust Indenture: (w) any
      Spare
      Part or Appliance so long as it is incorporated in, installed on, attached
      or
      appurtenant to, or being used in, an Aircraft, Engine or Qualified Spare Part
      that is so incorporated, installed, attached, appurtenant or being used;
      (x) any Spare Part or Appliance that has been incorporated in, installed
      on, attached or appurtenant to, or used in an Aircraft, Engine or Qualified
      Spare Part that has been so incorporated, installed, attached, appurtenant
      or
      used, for so long after its removal from such Aircraft or Engine as it remains
      owned by a lessor or conditional seller of, or subject to a Lien applicable
      to,
      such Aircraft or Engine; (y) the Excluded Parts; and (z) any Spare
      Part or Appliance leased to, loaned to, or held on consignment by, the Owner
      (such Spare Parts and Appliances, giving effect to such exclusions, the
“Pledged
      Spare Parts”);

     

    (2) The
      rights of the Owner under any warranty or indemnity, express or implied,
      regarding title, materials, workmanship, design or patent infringement or
      related matters in respect of the Pledged Spare Parts (the “Warranties”);

     

    (3) All
      proceeds with respect to the sale or other disposition by the Mortgagee of
      any
      Pledged Spare Part or other Collateral pursuant to the terms of this Trust
      Indenture, and all insurance proceeds with respect to any Pledged Spare Part,
      but excluding any insurance maintained by the Owner and not required under
      Section 4.09;

    
      
        
        

      

      
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    (4) All
      rents, revenues and other proceeds collected by the Mortgagee pursuant to
      Section 5.03(b) and all monies and securities from time to time deposited or
      required to be deposited with the Mortgagee by or for the account of the Owner
      pursuant to any terms of this Trust Indenture or the Collateral Maintenance
      Agreement held or required to be held by the Mortgagee hereunder, including
      all
      Eligible Accounts (including the Securities Account);

     

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

     

    (6) All
      repair, maintenance and inventory records, logs, manuals and all other documents
      and materials similar thereto (including, without limitation, any such records,
      logs, manuals, documents and materials that are computer print-outs) at any
      time
      maintained, created or used by the Owner, and all records, logs, documents
      and
      other materials required at any time to be maintained by the Owner pursuant
      to
      the FAA or under the Act, in each case with respect to any of the Pledged Spare
      Parts (the “Spare
      Parts Documents”);
      and

     

    (7) All
      proceeds of the foregoing.

     

    PROVIDED,
      HOWEVER, that notwithstanding any of the foregoing provisions, so long as no
      Event of Default shall have occurred and be continuing, (a) the Mortgagee shall
      not take or cause to be taken any action contrary to the Owner’s right hereunder
      to quiet enjoyment of the Pledged Spare Parts, and to possess, use, retain and
      control the Pledged Spare Parts and all revenues, income and profits derived
      therefrom, and (b) the Owner shall have the right, to the exclusion of the
      Mortgagee, with respect to the warranties and indemnities referred to in clause
      (2) above, to exercise in the Owner’s name all rights and powers (other than to
      amend, modify or waive any of the warranties or indemnities contained therein,
      except in the exercise of the Owner’s reasonable business judgment) and to
      retain any recovery or benefit resulting from the enforcement of any warranty
      or
      indemnity; and provided
      further that,
      notwithstanding the occurrence or continuation of an Event of Default, the
      Mortgagee shall not enter into any amendment of any such warranty or indemnity
      which would increase the obligations of the Owner thereunder.

     

    TO
      HAVE
      AND TO HOLD all and singular the aforesaid property unto the Mortgagee, and
      its
      successors and assigns, in trust for the equal and proportionate benefit and
      security of the Note Holders and the Indenture Indemnitees, except as provided
      in Section 2.13 and Article III hereof, without any preference, distinction
      or
      priority of any one Equipment Note over any other by reason of priority of
      time
      of issue, sale, negotiation, date of maturity thereof or otherwise for any
      reason whatsoever, and for the uses and purposes and in all cases and as to
      all
      property specified in clauses (1) through (7) inclusive above, subject to the
      terms and provisions set forth in this Trust Indenture.

     

    It
      is
      expressly agreed that anything herein contained to the contrary notwithstanding,
      the Owner shall remain liable under the Indenture Agreements to perform all
      of
      the obligations assumed by it thereunder, except to the extent prohibited or
      excluded from doing so pursuant to the terms and provisions thereof, and the
      Mortgagee, the Note Holders and the 

    
      
        
        

      

      
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    Indenture
      Indemnitees shall have no obligation or liability under the Indenture Agreements
      by reason of or arising out of the assignment hereunder, nor shall the
      Mortgagee, the Note Holders or the Indenture Indemnitees be required or
      obligated in any manner to perform or fulfill any obligations of the Owner
      under
      or pursuant to the Indenture Agreements, or, except as herein expressly
      provided, to make any payment, to make any inquiry as to the nature or
      sufficiency of any payment received by it, to present or file any claim, or
      to
      take any action to collect or enforce the payment of any amounts which may
      have
      been assigned to it or to which it may be entitled at any time or
      times.

     

    The
      Owner
      does hereby constitute the Mortgagee the true and lawful attorney of the Owner,
      irrevocably, granted for good and valuable consideration and coupled with an
      interest and with full power of substitution, and with full power (in the name
      of the Owner or otherwise) to ask for, require, demand, receive, compound and
      give acquittance for any and all monies and claims for monies (in each case
      including insurance and requisition proceeds) due and to become due under or
      arising out of the Indenture Agreements, and all other property which now or
      hereafter constitutes part of the Collateral, to endorse any checks or other
      instruments or orders in connection therewith and to file any claims or to
      take
      any action or to institute any proceedings which the Mortgagee may deem to
      be
      necessary or advisable in the premises; provided
      that the
      Mortgagee shall not exercise any such rights except upon the occurrence and
      during the continuance of an Event of Default hereunder.

     

    The
      Owner
      agrees that at any time and from time to time, upon the written request of
      the
      Mortgagee, the Owner will promptly and duly execute and deliver or cause to
      be
      duly executed and delivered any and all such further instruments and documents
      (including without limitation UCC continuation statements) as the Mortgagee
      may
      reasonably deem necessary to perfect, preserve or protect the mortgage, security
      interests and assignments created or intended to be created hereby or to obtain
      for the Mortgagee the full benefits of the assignment hereunder and of the
      rights and powers herein granted.

     

    IT
      IS
      HEREBY COVENANTED AND AGREED by and between the parties hereto as
      follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Capitalized
      terms used but not defined herein shall have the respective meanings set forth
      or incorporated by reference, and shall be construed in the manner described,
      in
      Annex A hereto.

     

    ARTICLE
      II

     

    THE
      EQUIPMENT NOTES

     

    SECTION
      2.01.  Form of Equipment
      Notes

     

    The
      Equipment Notes shall be substantially in the form set forth
      below:

    
      
        
        

      

      
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    THIS
      EQUIPMENT NOTE HAS NOT BEEN REGISTERED PURSUANT

    TO
      THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR PURSUANT TO THE

    SECURITIES
      LAWS OF ANY STATE. ACCORDINGLY, THIS EQUIPMENT NOTE MAY

    NOT
      BE
      SOLD UNLESS EITHER REGISTERED UNDER THE ACT AND SUCH

    APPLICABLE
      STATE LAWS OR AN EXEMPTION FROM SUCH REGISTRATIONS IS

    AVAILABLE.

    

    CONTINENTAL
      AIRLINES, INC.

     

    SERIES [G/B]
      EQUIPMENT NOTE DUE JUNE 2, 2013

     

    
      
        	
                No.____

              	
                 Date:
                  [__________,
                  ____]

              

      

    

     

    
      	 MATURITY
              DATE
	 
	 June
              2, 2013

    

     

    CONTINENTAL
      AIRLINES, INC., a Delaware corporation (“Owner”), hereby promises to pay to
      [__________________], or the registered assignee thereof, the principal sum
      of
      $[____________] (the “Original Amount”), together with interest on the amount of
      the Original Amount remaining unpaid from time to time from the date hereof
      until paid in full at a rate per annum for each Interest Period equal to the
      Debt Rate for such Interest Period (calculated on the basis of a year of 360
      days and actual days elapsed during the period for which such amount accrues).
      The Original Amount of this Equipment Note shall be paid in full on June 2,
      2013. Accrued but unpaid interest shall be due and payable in quarterly
      installments commencing on September 2, 2006, and thereafter on December 2,
      March 2, June 2 and September 2 of each year, to and including June 2, 2013.
      Interest shall be payable with respect to the first but not the last day of
      each
      Interest Period. Notwithstanding the foregoing, the final payment made on this
      Equipment Note shall be in an amount sufficient to discharge in full the unpaid
      Original Amount and all accrued and unpaid interest on, and any other amounts
      due under, this Equipment Note. Notwithstanding anything to the contrary
      contained herein, if any date on which a payment under this Equipment Note
      becomes due and payable is not a Business Day, then such payment shall not
      be
      made on such scheduled date but shall be made on the next succeeding Business
      Day, and such extension of time shall be included in the computation of interest
      payable.

     

    For
      purposes hereof, the term “Trust Indenture” means the Trust Indenture and
      Mortgage, dated as of June 9, 2006, between the Owner and Wilmington Trust
      Company (the “Mortgagee”), as the same may be amended or supplemented from time
      to time. All other capitalized terms used in this Equipment Note and not defined
      herein shall have the respective meanings assigned in the Trust
      Indenture.

     

    This
      Equipment Note shall bear interest, payable on demand, at the Payment Due Rate
      (calculated on the basis of a year of 360 days and actual days elapsed during
      the period for which such amount accrues) on any overdue payment of all or
      a
      portion of the Original Amount and (to the extent permitted by applicable Law)
      any overdue interest and any other amounts 

    
      
        
        

      

      
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    payable
      hereunder which are overdue, in each case for the period the same is overdue.
      Amounts shall be overdue if not paid when due (whether at stated maturity,
      by
      acceleration or otherwise).

     

    There
      shall be maintained an Equipment Note Register for the purpose of registering
      transfers and exchanges of Equipment Notes at the Corporate Trust Office of
      the
      Mortgagee or at the office of any successor in the manner provided in Section
      2.07 of the Trust Indenture.

     

    The
      Original Amount and interest and other amounts due hereunder shall be payable
      in
      Dollars in immediately available funds at the Corporate Trust Office of the
      Mortgagee, or as otherwise provided in the Trust Indenture. Each such payment
      shall be made on the date such payment is due and without any presentment or
      surrender of this Equipment Note, except that in the case of any final payment
      with respect to this Equipment Note, the Equipment Note shall be surrendered
      promptly thereafter to the Mortgagee for cancellation.

     

    The
      holder hereof, by its acceptance of this Equipment Note, agrees that, except
      as
      provided in the Trust Indenture, each payment of all or a portion of the
      Original Amount, interest, Break Amount, if any, and Premium, if any, received
      by it hereunder shall be applied, first,
      to the
      payment of Break Amount, if any, with respect to this Equipment Note,
second,
      to the
      payment of accrued interest on this Equipment Note (as well as any interest
      on
      any overdue payment of all or a portion of the Original Amount, any overdue
      Break Amount and Premium, if any, or, to the extent permitted by Law, any
      overdue interest and other amounts hereunder) to the date of such payment,
      third,
      to the
      payment of all or the portion of the Original Amount of this Equipment Note
      then
      due, fourth,
      to the
      payment of Premium, if any, and any other amount due hereunder or under the
      Trust Indenture, and fifth,
      the
      balance, if any, remaining thereafter, to the payment of the Original Amount
      of
      this Equipment Note remaining unpaid.

     

    This
      Equipment Note is one of the Equipment Notes referred to in the Trust Indenture
      which have been or are to be issued by the Owner pursuant to the terms of the
      Trust Indenture. The Collateral is held by the Mortgagee as security, in part,
      for the Equipment Notes. The provisions of this Equipment Note are subject
      to
      the Trust Indenture. Reference is hereby made to the Trust Indenture for a
      complete statement of the rights and obligations of the holder of, and the
      nature and extent of the security for, this Equipment Note and the rights and
      obligations of the holders of, and the nature and extent of the security for,
      any other Equipment Notes executed and delivered under the Trust Indenture,
      as
      well as for a statement of the terms and conditions of the Trust created by
      the
      Trust Indenture, to all of which terms and conditions in the Trust Indenture
      each holder hereof agrees by its acceptance of this Equipment Note.

     

    As
      provided in the Trust Indenture and subject to certain limitations therein
      set
      forth, this Equipment Note is exchangeable for a like aggregate Original Amount
      of Equipment Notes of different authorized denominations, as requested by the
      holder surrendering the same.

     

    Prior
      to
      due presentment for registration of transfer of this Equipment Note, the Owner
      and the Mortgagee shall treat the person in whose name this Equipment Note
      is
      registered as the owner hereof for all purposes, whether or not this Equipment
      Note be overdue, and neither the Owner nor the Mortgagee shall be affected
      by
      notice to the contrary.

    
      
        
        

      

      
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    This
      Equipment Note is subject to redemption as provided in Sections 2.11 and 2.12
      of
      the Trust Indenture but not otherwise. In addition, this Equipment Note may
      be
      accelerated as provided in Section 5.02 of the Trust
      Indenture.

     

    [The
      indebtedness evidenced by this Equipment Note is, to the extent and in the
      manner provided in the Trust Indenture, subordinate and subject in right of
      payment to the prior payment in full of the Secured Obligations (as defined
      in
      the Trust Indenture) in respect of Series G Equipment Notes, and certain other
      Secured Obligations and this Equipment Note is issued subject to such
      provisions. The Note Holder of this Equipment Note, by accepting the same,
      (a)
      agrees to and shall be bound by such provisions, (b) authorizes and directs
      the
      Mortgagee on his behalf to take such action as may be necessary or appropriate
      to effectuate the subordination as provided in the Trust Indenture and (c)
      appoints the Mortgagee his attorney-in-fact for such purpose.]1 

     

    Unless
      the certificate of authentication hereon has been executed by or on behalf
      of
      the Mortgagee by manual signature, this Equipment Note shall not be entitled
      to
      any benefit under the Trust Indenture or be valid or obligatory for any
      purpose.

     

    THIS
      EQUIPMENT NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK.

     

    *   *   *

    
       

       

       

      
        

      

      1. To
        be
        inserted in case of the Series B Equipment Note.

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the Owner has caused this Equipment Note to be executed in
      its
      corporate name by its officer thereunto duly authorized on the date
      hereof.

    
       

      
        	 	 	 
	 	
                
                  CONTINENTAL
                    AIRLINES, INC. 

                

              
	
                 

                 

                 

                 

                 

              	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title:

      

       

    

     

    
      
        
        

      

      
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    MORTGAGEE’S
      CERTIFICATE OF AUTHENTICATION

     

    This
      is
      one of the Equipment Notes referred to in the within-mentioned Trust
      Indenture.

     

    
      	 	 	 
	 	
              WILMINGTON
                TRUST COMPANY, as

                 
                Mortgagee

            
	
              
 

            	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

     

    
      
        
        

      

      
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    SECTION
      2.02.  Issuance and Terms of Equipment
      Notes

     

    The
      Equipment Notes shall be dated the Closing Date, shall be issued in two separate
      series consisting of Series G and Series B in the principal amount of the
      related secured loan as set forth in Section 2.1 of the Note Purchase Agreement.
      On the Closing Date, a Series G Equipment Note and a Series B Equipment Note
      shall be issued to the Subordination Agent on behalf of the applicable Pass
      Through Trustee under the Pass Through Trust Agreement. The Equipment Notes
      shall be issued in registered form only. The Equipment Notes shall be issued
      in
      denominations of $1,000 and integral multiples thereof, except that one
      Equipment Note of each Series may be in an amount that is not an integral
      multiple of $1,000. 

     

    Each
      Equipment Note shall bear interest on the unpaid Original Amount thereof from
      time to time outstanding from the date thereof until paid in full at the rate
      per annum for each Interest Period equal to the Debt Rate for such Interest
      Period (calculated on the basis of a year of 360 days and actual days elapsed
      during the period for which such amount accrues). Accrued interest shall be
      payable in arrears on September 2, 2006, and on each December 2, March 2, June
      2
      and September 2 thereafter until maturity. Interest on the Equipment Notes
      shall
      be payable with respect to the first but not the last day of each Interest
      Period. The Original Amount of the Equipment Notes of each Series shall be
      paid
      in full on June 2, 2013. Notwithstanding the foregoing, the final payment made
      under each Equipment Note shall be in an amount sufficient to discharge in
      full
      the unpaid Original Amount and all accrued and unpaid interest on, and any
      other
      amounts due under, such Equipment Note. Each Equipment Note shall bear interest,
      payable on demand, at the Payment Due Rate (calculated on the basis of a year
      of
      360 days and actual days elapsed during the period for which such amount
      accrues) on any part of the Original Amount, and, to the extent permitted by
      applicable Law, interest and any other amounts payable thereunder not paid
      when
      due for any period during which the same shall be overdue, in each case for
      the
      period the same is overdue. Amounts under any Equipment Note shall be overdue
      if
      not paid when due (whether at stated maturity, by acceleration or otherwise).
      Notwithstanding anything to the contrary contained herein, if any date on which
      a payment under any Equipment Note becomes due and payable is not a Business
      Day
      then such payment shall not be made on such scheduled date but shall be made
      on
      the next succeeding Business Day, and such extension of time shall be included
      in the computation of interest payable thereunder.

     

    The
      Owner
      agrees to pay to the Mortgagee for distribution in accordance with Section
      3.04
      hereof: (a)(i) an amount equal to the fees payable to the Primary Liquidity
      Provider under Section 2.03 of the Primary Liquidity Facility and the related
      Fee Letter (as defined in the Intercreditor Agreement); (ii) the amount equal
      to
      interest on any Downgrade Advance (other than any Applied Downgrade Advance)
      payable under Section 3.07 of the Primary Liquidity Facility minus Investment
      Earnings from such Downgrade Advance; (iii) the amount equal to interest on
      any
      Non-Extension Advance (other than any Applied Non-Extension Advance) payable
      under Section 3.07 of the Primary Liquidity Facility minus Investment Earnings
      from such Non-Extension Advance; (iv) if any payment default shall have occurred
      and be continuing with respect to interest on any Series G Equipment Notes,
      the
      excess, if any, of (1) an amount equal to interest on any Unpaid Advance,
      Applied Downgrade Advance or Applied Non-Extension Advance payable under Section
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    Policy
      Provider has made a payment equivalent to such an Advance, as would have been
      payable under Section 3.07 of the Primary Liquidity Facility had such Advance
      been made) over (2) the sum of Investment Earnings from any Final Advance plus
      any amount of interest at the Payment Due Rate actually payable (whether or
      not
      in fact paid) by Owner on the overdue scheduled interest on the Series G
      Equipment Notes; (v) any other amounts owed to the Primary Liquidity
      Provider by the Subordination Agent as borrower under the Primary Liquidity
      Facility other than amounts due as repayment of advances thereunder or as
      interest on such advances, except to the extent payable pursuant to clause
      (ii),
      (iii) or (iv) above; and (vi) an amount equal to the fees payable to the
      Policy Provider under Section 3.02 of the Policy Provider Agreement and all
      other compensation and reimbursement of expenses and disbursements (but
      excluding reimbursement of advances) payable to the Policy Provider under the
      Policy Provider Agreement (but excluding all such amounts actually paid by
      the
      Owner to the Policy Provider under the Policy Provider Agreement), (b) all
      compensation and reimbursement of expenses, disbursements and advances payable
      by Owner under the Pass Through Trust Agreements, and (c) all compensation
      and
      reimbursement of expenses and disbursements payable to the Subordination Agent
      under the Intercreditor Agreement except with respect to any income or franchise
      taxes incurred by the Subordination Agent in connection with the transactions
      contemplated by the Intercreditor Agreement. For purposes of this paragraph,
      the
      terms “Applied Downgrade Advance”, “Applied Non-Extension Advance”, “Downgrade
      Advance”, “Final Advance”, “Investment Earnings”, “Non-Extension Advance” and
“Unpaid Advance” shall have the meanings specified in the Primary Liquidity
      Facility.

     

    The
      Equipment Notes shall be executed on behalf of the Owner by one of its
      authorized officers. Equipment Notes bearing the signatures of individuals
      who
      were at any time the proper officers of the Owner shall bind the Owner,
      notwithstanding that such individuals or any of them have ceased to hold such
      offices prior to the authentication and delivery of such Equipment Notes or
      did
      not hold such offices at the respective dates of such Equipment Notes. The
      Owner
      may from time to time execute and deliver Equipment Notes to the Mortgagee
      for
      authentication upon original issue and such Equipment Notes shall thereupon
      be
      authenticated and delivered by the Mortgagee upon the written request of the
      Owner signed by an authorized officer of the Owner. No Equipment Note shall
      be
      secured by or entitled to any benefit under this Trust Indenture or be valid
      or
      obligatory for any purposes, unless there appears on such Equipment Note a
      certificate of authentication in the form provided for herein executed by the
      Mortgagee by the manual signature of one of its authorized officers and such
      certificate upon any Equipment Notes be conclusive evidence, and the only
      evidence, that such Equipment Note has been duly authenticated and delivered
      hereunder.

     

    The
      aggregate Original Amount of the Equipment Notes issued hereunder shall not
      exceed the sum of the amounts set forth in Section 2.1(a) and (b) of the Note
      Purchase Agreement.

    
      
        
        

      

      
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    SECTION
      2.03.  [Intentionally
      Omitted.]

     

    SECTION
      2.04.  Method of
      Payment

     

    (a) Each
      payment of the Original Amount of, interest on, Break Amount, if any, Premium,
      if any, and other amounts due under each Equipment Note or hereunder will be
      payable in Dollars by wire transfer of immediately available funds not later
      than 11:30 AM, New York time, on the due date of payment to the Mortgagee at
      the
      Corporate Trust Office for distribution among the Note Holders in the manner
      provided herein. The Owner shall not have any responsibility for the
      distribution of such payment to any Note Holder. Notwithstanding the foregoing
      or any provision in any Equipment Note to the contrary, the Mortgagee will
      use
      reasonable efforts to pay or cause to be paid, if so directed in writing by
      any
      Note Holder (with a copy to the Owner), all amounts paid by the Owner hereunder
      and under such holder’s Equipment Note or Equipment Notes to such holder or a
      nominee therefor (including all amounts distributed pursuant to Article III
      of
      this Trust Indenture) by transferring, or causing to be transferred, by wire
      transfer of immediately available funds in Dollars, prior to 2:00 p.m., New
      York
      City time, on the due date of payment, to an account maintained by such holder
      with a bank located in the continental United States the amount to be
      distributed to such holder, for credit to the account of such holder maintained
      at such bank. If the Mortgagee shall fail to make any such payment as provided
      in the immediately foregoing sentence after its receipt of funds at the place
      and prior to the time specified above, the Mortgagee, in its individual capacity
      and not as trustee, agrees to compensate such holders for loss of use of funds
      at Debt Rate until such payment is made and the Mortgagee shall be entitled
      to
      any interest earned on such funds until such payment is made. Any payment made
      hereunder shall be made without any presentment or surrender of any Equipment
      Note, except that, in the case of the final payment in respect of any Equipment
      Note, such Equipment Note shall be surrendered to the Mortgagee for cancellation
      promptly after such payment. Notwithstanding any other provision of this Trust
      Indenture to the contrary, the Mortgagee shall not be required to make, or
      cause
      to be made, wire transfers as aforesaid prior to the first Business Day on
      which
      it is practicable for the Mortgagee to do so in view of the time of day when
      the
      funds to be so transferred were received by it if such funds were received
      after
      11:30 AM, New York time, at the place of payment. Prior to the due
      presentment for registration of transfer of any Equipment Note, the Owner and
      the Mortgagee shall deem and treat the Person in whose name any Equipment Note
      is registered on the Equipment Note Register as the absolute owner and holder
      of
      such Equipment Note for the purpose of receiving payment of all amounts payable
      with respect to such Equipment Note and for all other purposes, and none of
      the
      Owner or the Mortgagee shall be affected by any notice to the contrary. So
      long
      as any signatory to the Note Purchase Agreement or nominee thereof shall be
      a
      registered Note Holder, all payments to it shall be made to the account of
      such
      Note Holder specified in Schedule 1 thereto and otherwise in the manner provided
      in or pursuant to the Note Purchase Agreement unless it shall have specified
      some other account or manner of payment by notice to the Mortgagee consistent
      with this Section 2.04.

     

    (b) The
      Mortgagee, as agent for the Owner, shall exclude and withhold at the appropriate
      rate from each payment of all or a portion of the Original Amount of, interest
      on, Break Amount, if any, Premium, if any, and other amounts due hereunder
      or
      under each Equipment Note (and such exclusion and withholding shall constitute
      payment in respect of such 

    
      
        
        

      

      
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    Equipment
      Note) any and all United States withholding taxes applicable thereto as required
      by Law. The Mortgagee agrees to act as such withholding agent and, in connection
      therewith, whenever any present or future United States taxes or similar charges
      are required to be withheld with respect to any amounts payable hereunder or
      in
      respect of the Equipment Notes, to withhold such amounts and timely pay the
      same
      to the appropriate authority in the name of and on behalf of the Note Holders,
      that it will file any necessary United States withholding tax returns or
      statements when due, and that as promptly as possible after the payment thereof
      it will deliver to each Note Holder (with a copy to the Owner) appropriate
      receipts showing the payment thereof, together with such additional documentary
      evidence as any such Note Holder may reasonably request from time to
      time.

     

    If
      a Note
      Holder which is a Non-U.S. Person has furnished to the Mortgagee a properly
      completed, accurate and currently effective U.S. Internal Revenue Service Form
      W-8BEN (or such successor form or forms as may be required by the United States
      Treasury Department) that is valid and in effect on the date on which the
      payment hereunder or under the Equipment Note(s) held by such holder is made
      and
      has not notified the Mortgagee of the withdrawal or inaccuracy of such form
      prior to the date of such payment (and the Mortgagee has no reason to believe
      that any information set forth in such form is inaccurate), the Mortgagee shall
      withhold only the amount, if any, required by Law (after taking into account
      any
      applicable exemptions properly claimed by the Note Holder) to be withheld from
      payments hereunder or under the Equipment Notes held by such holder in respect
      of United States federal income tax. If a Note Holder (x) which is a Non-U.S.
      Person has furnished to the Mortgagee a properly completed, accurate and
      currently effective U.S. Internal Revenue Service Form W-8ECI in duplicate
      (or
      such successor certificate, form or forms as may be required by the United
      States Treasury Department as necessary in order to properly avoid withholding
      of United States federal income tax), in the calendar year in which a payment
      is
      made (but prior to the making of any payment for such year) or either of the
      two
      preceding calendar years, and has not notified the Mortgagee of the withdrawal
      or inaccuracy of such certificate or form prior to the date of such payment
      (and
      the Mortgagee has no reason to believe that any information set forth in such
      form is inaccurate) or (y) which is a U.S. Person has furnished to the Mortgagee
      a properly completed, accurate and currently effective U.S. Internal Revenue
      Service Form W-9, if applicable, prior to a payment hereunder or under the
      Equipment Notes held by such holder, no amount shall be withheld from payments
      in respect of United States federal income tax. If any Note Holder has notified
      the Mortgagee that any of the foregoing forms or certificates is withdrawn
      or
      inaccurate, or if such holder has not filed a form claiming an exemption from
      United States withholding tax or if the Code or the regulations thereunder
      or
      the administrative interpretation thereof is at any time after the date hereof
      amended to require such withholding of United States federal income taxes from
      payments under the Equipment Notes held by such holder, the Mortgagee agrees
      to
      withhold from each payment due to the relevant Note Holder withholding taxes
      at
      the appropriate rate under Law and will, on a timely basis as more fully
      provided above, deposit such amounts with an authorized depository and make
      such
      returns, statements, receipts and other documentary evidence in connection
      therewith as required by Law.

     

    Owner
      shall not have any liability for the failure of the Mortgagee to withhold taxes
      in the manner provided for herein or for any false, inaccurate or untrue
      evidence provided by any Note Holder hereunder.

    
      
        
        

      

      
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    SECTION
      2.05.  Application of
      Payments

     

    In
      the
      case of each Equipment Note, each payment of all or a portion of the Original
      Amount, Break Amount, if any, Premium, if any, and interest due thereon shall
      be
      applied:

     

    First:
      to
      the payment of Break Amount, if any, with respect to such Equipment Note and
      any
      other amount (other than as covered by any of the following clauses) due
      hereunder or under such Equipment Note;

     

    Second:
      to the payment of accrued interest on such Equipment Note (as well as any
      interest on any overdue payment of all or a portion of the Original Amount,
      any
      overdue Premium, if any, and to the extent permitted by Law, any overdue
      interest and any other overdue amounts thereunder) to the date of such payment;
      

     

    Third:
      to
      the payment of the Original Amount of such Equipment Note (or a portion thereof)
      then due thereunder;

     

    Fourth:
      to the payment of Premium, if any, and any other amount due hereunder or under
      such Equipment Note; and

     

    Fifth:
      the balance, if any, remaining thereafter, to the payment of the Original Amount
      of such Equipment Note remaining unpaid (provided that such Equipment Note
      shall
      not be subject to redemption except as provided in Sections 2.11 and 2.12
      hereof).

     

    SECTION
      2.06.  Termination of Interest in
      Collateral

     

    No
      Note
      Holder nor any other Indenture Indemnitee shall, as such, have any further
      interest in, or other right with respect to, the Collateral when and if the
      Original Amount of, Break Amount, if any, Premium, if any, and interest on
      and
      other amounts due under all Equipment Notes held by such Note Holder and all
      other sums then due and payable to such Note Holder, such Indenture Indemnitee
      or the Mortgagee hereunder (including, without limitation, under the third
      paragraph of Section 2.02 hereof) and under the other Operative Agreements
      by
      the Owner (collectively, the “Secured Obligations”) shall have been paid in
      full.

     

    SECTION
      2.07.  Registration Transfer and Exchange
      of Equipment Notes

     

    The
      Mortgagee shall keep a register (the “Equipment Note Register”) in which the
      Mortgagee shall provide for the registration of Equipment Notes and the
      registration of transfers of Equipment Notes. No such transfer shall be given
      effect unless and until registration hereunder shall have occurred. The
      Equipment Note Register shall be kept at the Corporate Trust Office of the
      Mortgagee. The Mortgagee is hereby appointed “Equipment Note Registrar” for the
      purpose of registering Equipment Notes and transfers of Equipment Notes as
      herein provided. A holder of any Equipment Note intending to exchange such
      Equipment Note shall surrender such Equipment Note to the Mortgagee at the
      Corporate Trust Office, together with a written request from the registered
      holder thereof for the issuance of a new Equipment Note, specifying, in the
      case
      of a surrender for transfer, the name and address of the new holder or

    
      
        
        

      

      
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    holders.
      Upon surrender for registration of transfer of any Equipment Note, the Owner
      shall execute, and the Mortgagee shall authenticate and deliver, in the name
      of
      the designated transferee or transferees, one or more new Equipment Notes of
      a
      like aggregate Original Amount and of the same series. At the option of the
      Note
      Holder, Equipment Notes may be exchanged for other Equipment Notes of any
      authorized denominations of a like aggregate Original Amount, upon surrender
      of
      the Equipment Notes to be exchanged to the Mortgagee at the Corporate Trust
      Office. Whenever any Equipment Notes are so surrendered for exchange, the Owner
      shall execute, and the Mortgagee shall authenticate and deliver, the Equipment
      Notes which the Note Holder making the exchange is entitled to receive. All
      Equipment Notes issued upon any registration of transfer or exchange of
      Equipment Notes (whether under this Section 2.07 or under Section 2.08 hereof
      or
      otherwise under this Trust Indenture) shall be the valid obligations of the
      Owner evidencing the same respective obligations, and entitled to the same
      security and benefits under this Trust Indenture, as the Equipment Notes
      surrendered upon such registration of transfer or exchange. Every Equipment
      Note
      presented or surrendered for registration of transfer, shall (if so required
      by
      the Mortgagee) be duly endorsed, or be accompanied by a written instrument
      of
      transfer in form satisfactory to the Mortgagee duly executed by the Note Holder
      or such holder’s attorney duly authorized in writing, and the Mortgagee shall
      require evidence satisfactory to it as to the compliance of any such transfer
      with the Securities Act, and the securities Laws of any applicable state. The
      Mortgagee shall make a notation on each new Equipment Note of the amount of
      all
      payments of any portion of the Original Amount previously made on the old
      Equipment Note or Equipment Notes with respect to which such new Equipment
      Note
      is issued and the date to which interest on such old Equipment Note or Equipment
      Notes has been paid. Interest shall be deemed to have been paid on such new
      Equipment Note to the date on which interest shall have been paid on such old
      Equipment Note, and all payments of any portion of the Original Amount marked
      on
      such new Equipment Note, as provided above, shall be deemed to have been made
      thereon. The Owner shall not be required to exchange any surrendered Equipment
      Notes as provided above during the ten-day period preceding the due date of
      any
      payment on such Equipment Note. The Owner shall in all cases deem the Person
      in
      whose name any Equipment Note shall have been issued and registered as the
      absolute owner and holder of such Equipment Note for the purpose of receiving
      payment of all amounts payable by the Owner with respect to such Equipment
      Note
      and for all purposes until a notice stating otherwise is received from the
      Mortgagee and such change is reflected on the Equipment Note Register. The
      Mortgagee will promptly notify the Owner of each registration of a transfer
      of
      an Equipment Note. Any such transferee of an Equipment Note, by its acceptance
      of an Equipment Note, agrees to the provisions of this Trust Indenture and
      the
      Note Purchase Agreement applicable to Note Holders, including Sections 6.3,
      6.4
      and 9.1 thereof and shall be deemed to have covenanted to the parties to the
      Note Purchase Agreement as to the matters covenanted by the original Note Holder
      in the Note Purchase Agreement. Subject to compliance by the Note Holder and
      its
      transferee (if any) of the requirements set forth in this Section 2.07,
      Mortgagee and Owner shall use all reasonable efforts to issue new Equipment
      Notes upon transfer or exchange within 10 Business Days of the date an Equipment
      Note is surrendered for transfer or exchange.

    
      
        
        

      

      
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    SECTION
      2.08.  Mutilated, Destroyed, Lost or
      Stolen Equipment Notes

     

    If
      any
      Equipment Note shall become mutilated, destroyed, lost or stolen, the Owner
      shall, upon the written request of the holder of such Equipment Note, execute
      and the Mortgagee shall authenticate and deliver in replacement thereof a new
      Equipment Note, payable in the same Original Amount dated the same date. If
      the
      Equipment Note being replaced has become mutilated, such Equipment Note shall
      be
      surrendered to the Mortgagee and a photocopy thereof shall be furnished to
      the
      Owner. If the Equipment Note being replaced has been destroyed, lost or stolen,
      the holder of such Equipment Note shall furnish to the Owner and the Mortgagee
      such security or indemnity as may be required by them to save the Owner and
      the
      Mortgagee harmless and evidence satisfactory to the Owner and the Mortgagee
      of
      the destruction, loss or theft of such Equipment Note and of the ownership
      thereof. If a “qualified institutional buyer” of the type referred to in
      paragraph (a)(1)(i)(A), (B), (D) or (E) of Rule 144A under the Securities Act
      (a
“QIB”) is the holder of any such destroyed, lost or stolen Equipment Note, then
      the written indemnity of such QIB, signed by an authorized officer thereof,
      in
      favor of, delivered to and in form reasonably satisfactory to the Owner shall
      be
      accepted as satisfactory indemnity and security and no further indemnity or
      security shall be required as a condition to the execution and delivery of
      such
      new Equipment Note. Subject to compliance by the Note Holder with the
      requirements set forth in this Section 2.08, Mortgagee and Owner shall use
      all
      reasonable efforts to issue new Equipment Notes within 10 Business Days of
      the
      date of the written request therefor from the Note Holder.

     

    SECTION
      2.09.  Payment of Expenses on Transfer;
      Cancellation

     

    (a) No
      service charge shall be made to a Note Holder for any registration of transfer
      or exchange of Equipment Notes, but the Mortgagee, as Equipment Note Registrar,
      may require payment of a sum sufficient to cover any tax or other governmental
      charge that may be imposed in connection with any registration of transfer
      or
      exchange of Equipment Notes.

     

    (b) The
      Mortgagee shall cancel all Equipment Notes surrendered for replacement,
      redemption, transfer, exchange, payment or cancellation and shall destroy the
      canceled Equipment Notes.

     

    SECTION
      2.10.  [Intentionally
      Omitted.]

     

    SECTION
      2.11.  Optional Redemptions of Equipment
      Notes

     

    The
      Equipment Notes of either Series may be redeemed in accordance with Section
      2.12
      below at any time in whole or (so long as no Payment Default has occurred and
      is
      continuing) in part by the Owner at its sole option (an “Optional Redemption”)
      (except that no Equipment Note may be redeemed by the Owner prior to the third
      anniversary of the Issuance Date (other than in connection with a redemption
      to
      satisfy the Collateral Ratio or the Subordinated Collateral Ratio as provided
      in
      Section 3.1(a)(v) of the Collateral Maintenance Agreement, the Rotable Ratio
      as
      provided in Section 3.1(b)(iii) of the Collateral Maintenance Agreement or
      the
      fleet reduction covenant provided in Section 3.3 of the Collateral Maintenance
      Agreement)) at a redemption price equal to the sum of the Original Amount (or
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    subject
      to such Optional Redemption and accrued and unpaid interest on, and Premium,
      if
      any, and Break Amount, if any, with respect to, such Original Amount.
      Notwithstanding the foregoing, so long as the Series G Equipment Notes and
      the Policy Provider Obligations have not been paid in full, the Owner shall
      not
      make an Optional Redemption of any Series B Equipment Notes (i) if an
      Event of Default or failure by Owner to pay any amount of principal of or
      interest on any Equipment Note when due has occurred and is continuing as of
      the
      applicable redemption date or (ii) unless (x) the Owner shall have
      furnished to the Mortgagee (and, if the Policy Provider is then the Controlling
      Party, to the Policy Provider) within 60 days prior to the redemption date
      a certificate of an Officer certifying that, based upon the Pledged Spare Parts
      included in the Collateral determined as of a date within 10 days prior to
      the date of such certificate valued using the Appraised Value of such Pledged
      Spare Parts (but without requiring a new Independent Appraiser’s Certificate),
      the Collateral Ratio does not exceed the Maximum Collateral Ratio (after giving
      effect to any scheduled redemption of Equipment Notes on such redemption date)
      or (y) the Series G Equipment Notes shall be redeemed in whole simultaneously
      with the Optional Redemption of the Series B Equipment Notes, provided
      that the
      Controlling Party may, in its sole discretion, waive compliance with the
      requirements of this sentence.

     

    SECTION
      2.12.  Redemptions; Notice of
      Redemption

     

    (a) No
      redemption of any Equipment Note may be made except to the extent and in the
      manner expressly permitted by this Trust Indenture. No purchase of any Equipment
      Note may be made by the Mortgagee.

     

    (b) Notice
      of
      redemption with respect to the Equipment Notes shall be given by the Mortgagee
      by first-class mail, postage prepaid, mailed not less than 20 nor more than
      60
      days prior to the applicable redemption date, to each Note Holder of such
      Equipment Notes to be redeemed, at such Note Holder’s address appearing in the
      Equipment Note Register; provided that such notice shall be revocable by written
      notice from the Owner to the Policy Provider and Mortgagee given not later
      than
      three Business Days prior to the redemption date. All notices of redemption
      shall state: (1) the redemption date, (2) the applicable basis for determining
      the redemption price, (3) that on the redemption date, the redemption price
      will
      become due and payable upon each such Equipment Note, and that, if any such
      Equipment Notes are then outstanding, interest on such Equipment Notes shall
      cease to accrue on and after such redemption date, and (4) the place or places
      where such Equipment Notes are to be surrendered for payment of the redemption
      price. The Mortgagee shall promptly provide a copy of any such notice to the
      Policy Provider.

     

    (c) On
      or
      before the redemption date, the Owner (or any person on behalf of the Owner)
      shall, to the extent an amount equal to the redemption price for the Equipment
      Notes to be redeemed on the redemption date shall not then be held by the
      Mortgagee, deposit or cause to be deposited with the Mortgagee by 11:30 AM
      New
      York time on the redemption date in immediately available funds the redemption
      price of the Equipment Notes to be redeemed, together with all amounts required
      to be paid by Owner referred to in Clause “First” of
      Section 3.02.

    
      
        
        

      

      
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    (d) Notice
      of
      redemption having been given as aforesaid, the Equipment Notes to be redeemed
      shall, on the redemption date, become due and payable at the Corporate Trust
      Office of the Mortgagee or at any office or agency maintained for such purposes
      pursuant to Section 2.07, and from and after such redemption date (unless there
      shall be a default in the payment of the redemption price) any such Equipment
      Notes then outstanding shall cease to bear interest. Upon surrender of any
      such
      Equipment Note for redemption in accordance with said notice, such Equipment
      Note shall be redeemed at the redemption price. If any Equipment Note called
      for
      redemption shall not be so paid upon surrender thereof for redemption, the
      principal amount thereof shall, until paid, continue to bear interest from
      the
      applicable redemption date at the interest rate in effect for such Equipment
      Note as of such redemption date.

     

    SECTION
      2.13.  Subordination

     

    (a) The
      Owner
      and each Note Holder (by acceptance of its Equipment Notes of any Series),
      hereby agree that no payment or distribution shall be made on or in respect
      of
      the Secured Obligations owed to such Note Holder of such Series, including
      any
      payment or distribution of cash, property or securities after the commencement
      of a proceeding of the type referred to in Section 5.01(v), (vi) or (vii)
      hereof, except as expressly provided in Article III hereof.

     

    (b) By
      the
      acceptance of its Series B Equipment Notes, each Note Holder of such Series
      agrees that in the event that such Note Holder, in its capacity as a Note
      Holder, shall receive any payment or distribution on any Secured Obligations
      in
      respect of such Series which it is not entitled to receive under this Section
      2.13 or Article III hereof, it will hold any amount so received in trust for
      the
      Note Holders of the Series G Equipment Notes and will forthwith turn over
      such payment to the Mortgagee in the form received to be applied as provided
      in
      Article III hereof.

     

    ARTICLE
      III

     

    RECEIPT,
      DISTRIBUTION AND APPLICATION OF PAYMENTS

     

    SECTION
      3.01.  Basic
      Distributions

     

    Except
      as
      otherwise provided in Sections 3.02 and 3.03 hereof, each scheduled payment
      of
      principal or interest on the Equipment Notes received by the Mortgagee shall
      be
      promptly distributed in the following order of priority:

     

    
      	 	
              (i)

            	
              so
                much of such payment as shall be required to pay in full the aggregate
                amount of the payment or payments of the Original Amount and interest
                (as
                well as any interest on any overdue payment of all or any portion
                of the
                Original Amount and, to the extent permitted by Law, on any overdue
                interest) then due under all Series G Equipment Notes shall be distributed
                to the Note Holders of Series G ratably, without priority of one
                over the
                other, in the proportion that the amount of such payment or payments
                then
                due under each Series G Equipment Note, bears to the aggregate amount
                of
                the payments then due under all Series G Equipment
                Notes;

            

    

    
      
        
        

      

      
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              (ii)

            	
              after
                giving effect to paragraph (i) above, so much of such payment remaining
                as
                shall be required to pay in full the aggregate amount of the payment
                or
                payments of the Original Amount and interest (as well as any interest
                on
                any overdue payment of all or any portion of the Original Amount
                and, to
                the extent permitted by Law, on any overdue interest) then due under
                all
                Series B Equipment Notes shall be distributed to the Note Holders of
                Series B ratably, without priority of one over the other, in the
                proportion that the amount of such payment or payments then due under
                each
                Series B Equipment Note bears to the aggregate amount of the payments
                then due under all Series B Equipment
                Notes.

            

    

     

    SECTION
      3.02.  Redemptions

     

    Except
      as
      otherwise provided in Section 3.03 hereof, any payments received by the
      Mortgagee pursuant to an Optional Redemption of the Equipment Notes in
      accordance with Section 2.11 hereof shall be applied to redemption of the
      Equipment Notes by applying such funds in the following order of
      priority:

     

    
      	First,	 	
              (a)
                to reimburse the Mortgagee and the Note Holders for any reasonable
                costs
                or expenses incurred in connection with such redemption for which
                they are
                entitled to reimbursement, or indemnity by Owner, under the Operative
                Agreements and then (b) to pay any other Secured Obligations then
                due
                (except as provided in clause “Second” below) to the Mortgagee, the Note
                Holders and the other Indenture Indemnitees under this Trust Indenture,
                the Note Purchase Agreement or the Equipment Notes (other than amounts
                specified in clause Second below);

            

    

     

    
      	
              Second,

            	
              (i)

            	
              so
                much of such payment as shall be required to pay in full the aggregate
                amount of the payment or payments of Original Amount and interest
                (as well
                as any interest on any overdue payment of all or any portion of the
                Original Amount and, to the extent permitted by Law, on any overdue
                interest), Break Amount, if any, and Premium, if any, then due under
                all
                Series G Equipment Notes shall be distributed to the Note Holders
                of
                Series G ratably, without priority of one over the other, in the
                proportion that the amount of such payment or payments then due under
                each
                Series G Equipment Note, bears to the aggregate amount of the payments
                then due under all Series G Equipment
                Notes;

            

    

     

    
      	 	
              (ii)

            	
              after
                giving effect to paragraph (i) above, so much of such payment remaining
                as
                shall be required to pay in full the aggregate amount of the payment
                or
                payments of Original Amount and interest (as well as any interest
                on any
                overdue payment of all or any portion of the Original Amount and,
                to the
                extent permitted by Law, on any overdue interest), Break Amount,
                if any,
                and Premium, if any, then due under all Series B Equipment Notes
                shall be distributed to the Note Holders of Series B ratably, without
                priority of one over the other, in the proportion that the amount
                of such
                payment or payments then due under each Series B Equipment Note bears
                to the aggregate amount of the payments then due under all Series B
                Equipment Notes;

            

    

    
      
        
        

      

      
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      	Third,	 	
              as
                provided in clause “Fourth” of Section 3.03
                hereof.

            

    

     

    SECTION
      3.03.  Payments After Event of
      Default

     

    Except
      as
      otherwise provided in Section 3.04 hereof, all payments received and amounts
      held or realized by the Mortgagee (including any amounts realized by the
      Mortgagee from the exercise of any remedies pursuant to Article V hereof) after
      an Event of Default shall have occurred and be continuing and after the
      declaration specified in Section 5.02(b) hereof, as well as all payments or
      amounts then held by the Mortgagee as part of the Collateral, shall be promptly
      distributed by the Mortgagee in the following order of priority:

     

    
      	
              First,

            	 	
              so
                much of such payments or amounts as shall be required to (i) reimburse
                the
                Mortgagee or WTC for any tax (except to the extent resulting from
                a
                failure of the Mortgagee to withhold taxes pursuant to Section 2.04(b)
                hereof), expense or other loss (including, without limitation, all
                amounts
                to be expended at the expense of, or charged upon the rents, revenues,
                issues, products and profits of, the property included in the Collateral
                (all such property being herein called the “Mortgaged Property”) pursuant
                to Section 5.03(b) hereof) incurred by the Mortgagee or WTC (to the
                extent not previously reimbursed), the expenses of any sale, or other
                proceeding, reasonable attorneys’ fees and expenses, court costs, and any
                other expenditures incurred or expenditures or advances made by the
                Mortgagee, WTC or the Note Holders in the protection, exercise or
                enforcement of any right, power or remedy or any damages sustained
                by the
                Mortgagee, WTC or any Note Holder, liquidated or otherwise, upon
                such
                Event of Default shall be applied by the Mortgagee as between itself,
                WTC
                and the Note Holders in reimbursement of such expenses and any other
                expenses for which the Mortgagee, WTC or the Note Holders are entitled
                to
                reimbursement under any Operative Agreement and (ii) pay all Secured
                Obligations payable to the other Indenture Indemnitees hereunder
                and under
                the Note Purchase Agreement (other than amounts specified in clauses
                Second and Third below); and in the case the aggregate amount to
                be so
                distributed is insufficient to pay as aforesaid in clauses (i) and
                (ii),
                then ratably, without priority of one over the other, in proportion
                to the
                amounts owed each hereunder;

            

    

     

    
      	
              Second,

            	 	
              so
                much of such payments or amounts remaining as shall be required to
                reimburse the then existing or prior Note Holders for payments made
                pursuant to Section 6.03 hereof (to the extent not previously
                reimbursed) shall be distributed to such then existing or prior Note
                Holders ratably, without priority of one over the other, in accordance
                with the amount of the payment or payments made by each such then
                existing
                or prior Note Holder pursuant to said Section 6.03
                hereof;

            

    

     

    
      	
              Third,

            	
              (i)

            	
              so
                much of such payments or amounts remaining as shall be required to
                pay in
                full the aggregate unpaid Original Amount of all Series G Equipment
                Notes,
                and the accrued but unpaid interest and other amounts due thereon
                (other
                than Premium which shall not be due and payable), and Break Amount,
                if
                any, with respect to the Series G Equipment Notes and all other
                Secured Obligations in 

            

    

    
      
        
        

      

      
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              respect
                of the Series G Equipment Notes (other than Premium) to the date
                of
                distribution, shall be distributed to the Note Holders of Series
                G, and in
                case the aggregate amount so to be distributed shall be insufficient
                to
                pay in full as aforesaid, then ratably, without priority of one over
                the
                other, in the proportion that the aggregate unpaid Original Amount
                of all
                Series G Equipment Notes held by each holder plus the accrued but
                unpaid
                interest and other amounts due hereunder or thereunder (other than
                Premium, if any) to the date of distribution, bears to the aggregate
                unpaid Original Amount of all Series G Equipment Notes held by all
                such
                holders plus the accrued but unpaid interest and other amounts due
                thereon
                (other than Premium) to the date of
                distribution;

            

    

     

    
      	 	
              (ii)

            	
              after
                giving effect to paragraph (i) above, so much of such payments or
                amounts
                remaining as shall be required to pay in full the aggregate unpaid
                Original Amount of all Series B Equipment Notes, and the accrued but
                unpaid interest and other amounts due thereon (other than Premium
                which
                shall not be due and payable), and Break Amount, if any, with respect
                to
                the Series B Equipment Notes, and all other Secured Obligations in
                respect of the Series B Equipment Notes (other than Premium) to the
                date of distribution, shall be distributed to the Note Holders of
                Series B, and in case the aggregate amount so to be distributed shall
                be insufficient to pay in full as aforesaid, then ratably, without
                priority of one over the other, in the proportion that the aggregate
                unpaid Original Amount of all Series B Equipment Notes held by each
                holder plus the accrued but unpaid interest and other amounts due
                hereunder or thereunder (other than Premium) to the date of distribution,
                bears to the aggregate unpaid Original Amount of all Series B
                Equipment Notes held by all such holders plus the accrued but unpaid
                interest and other amounts due thereon (other than Premium) to the
                date of
                distribution; 

            

    

     

    
      	
              Fourth,

            	 	
              the
                balance, if any, of such payments or amounts remaining thereafter
                shall be
                distributed to the Owner.

            

    

     

    No
      Premium shall be due and payable on the Equipment Notes as a consequence of
      the
      acceleration of the Equipment Notes as a result of an Event of
      Default.

     

    SECTION
      3.04.  Certain
      Payments

     

    (a) Any
      payments received by the Mortgagee for which no provision as to the application
      thereof is made in this Trust Indenture and for which such provision is made
      in
      any other Operative Agreement shall be applied forthwith to the purpose for
      which such payment was made in accordance with the terms of such other Operative
      Agreement, as the case may be.

     

    (b) Notwithstanding
      anything to the contrary contained in this Article III, the Mortgagee will
      distribute promptly upon receipt any indemnity payment received by it from
      the
      Owner in respect of the Mortgagee in its individual capacity, any Note Holder
      or
      any other Indenture Indemnitee, in each case whether or not pursuant to Section
      8 of the Note 

    
      
        
        

      

      
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    Purchase
      Agreement, directly to the Person entitled thereto. Any payment received by
      the
      Mortgagee under the third paragraph of Section 2.02 hereof shall be distributed
      to the Subordination Agent in its capacity as Note Holder to be distributed
      in
      accordance with the terms of the Intercreditor Agreement.

     

    SECTION
      3.05.  Other
      Payments

     

    Any
      payments received by the Mortgagee for which no provision as to the application
      thereof is made elsewhere in this Trust Indenture or in any other Operative
      Agreement shall be distributed by the Mortgagee to the extent received or
      realized at any time, in the order of priority specified in Section 3.01 hereof,
      and after payment in full of all amounts then due in accordance with
      Section 3.01 in the manner provided in clause “Fourth” of Section 3.03
      hereof.

     

    SECTION
      3.06.  Release of Cash
      Collateral

     

    (a) Upon
      written request by the Owner to the Mortgagee after notice of redemption of
      Equipment Notes has been given to Note Holders pursuant to Section 2.12 of
      this
      Trust Indenture, the Mortgagee shall apply, to the extent specified in such
      written request, the Cash Collateral to pay amounts due with respect to the
      Equipment Notes to be redeemed on the applicable redemption date.

     

    (b) If
      the
      Collateral Ratio is less than the Maximum Collateral Ratio, the Subordinated
      Collateral Ratio is less than the Maximum Subordinated Collateral Ratio and
      the
      Rotable Ratio is greater than the Minimum Rotable Ratio, in each case as most
      recently determined pursuant to Article 2 or Section 3.1
      of
      the Collateral Maintenance Agreement, and the Mortgagee held any Cash Collateral
      as of the Valuation Date for such Collateral Ratio, Subordinated Collateral
      Ratio and Rotable Ratio (or subsequent date as of which such ratio was
      recalculated pursuant to Section 3.1 of the Collateral Maintenance Agreement),
      upon written request of the Owner and so long as no Event of Default or Special
      Default has occurred and is continuing the Mortgagee shall pay to the Owner
      an
      amount of the Cash Collateral such that the Collateral Ratio would not be
      greater than the Maximum Collateral Ratio, the Subordinated Collateral Ratio
      would not be greater than the Maximum Subordinated Collateral Ratio and the
      Rotable Ratio would not be less than the Minimum Rotable Ratio, giving effect
      to
      such payment (but otherwise using the information used as of such most recent
      determination date to determine such ratio).

     

    SECTION
      3.07.  Securities
      Account

     

    WTC
      agrees to act as an Eligible Institution under the Trust Indenture in accordance
      with the provisions of the Trust Indenture (in such capacity, the “Securities
      Intermediary”) for the purpose of holding any Cash Collateral. Except in its
      capacity as Mortgagee, WTC waives any claim or lien against any Eligible Account
      it may have, by operation of law or otherwise, for any amount owed to it by
      Owner. The Securities Intermediary hereby agrees that, notwithstanding anything
      to the contrary in the Trust Indenture, (i) any amounts of Cash Collateral
      to be
      held by the Mortgagee and any investment earnings thereon or other Investment
      Securities will be credited to an Eligible Account (the “Securities Account”)
      for 

    
      
        
        

      

      
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    which
      it
      is a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY
      UCC) and the Mortgagee is the “entitlement holder” (as defined in Section
      8-102(a)(7) of the NY UCC) of the “securities entitlement” (as defined in
      Section 8-102(a)(17) of the NY UCC) with respect to each “financial asset” (as
      defined in Section 8-102(a)(9) of the NY UCC) credited to such Eligible Account,
      (ii) all such amounts, Investment Securities and all other property acquired
      with cash credited to the Securities Account will be credited to the Securities
      Account, (iii) all items of property (whether cash, investment property,
      Investment Securities, other investments, securities, instruments or other
      property) credited to the Securities Account will be treated as a “financial
      asset” under Article 8 of the NY UCC, (iv) its “securities intermediary’s
      jurisdiction” (as defined in Section 8-110(e) of the NY UCC) with respect to the
      Securities Account is the State of New York, and (v) all securities, instruments
      and other property in order or registered from and credited to the Securities
      Account shall be payable to or to the order of, or registered in the name of,
      the Securities Intermediary or shall be indorsed to the Securities Intermediary
      or in blank, and in no case whatsoever shall any financial asset credited to
      the
      Securities Account be registered in the name of the Owner, payable to or to
      the
      order of the Owner or specially indorsed to the Owner except to the extent
      the
      foregoing have been specially endorsed by the Owner to the Securities
      Intermediary or endorsed in blank. The Mortgagee agrees that it will hold (and
      will indicate clearly in its books and records that it holds) its “securities
      entitlement” to the “financial assets” credited to the Securities Account in
      trust for the benefit of the Note Holders and each of the Indenture Indemnitees
      as set forth in the Trust Indenture. The Owner acknowledges that, by reason
      of
      the Mortgagee being the “entitlement holder” in respect of the Securities
      Account as provided above, the Mortgagee shall have the sole right and
      discretion, subject only to the terms of the Trust Indenture, to give all
“entitlement orders” (as defined in Section 8-102(a)(8) of the NY UCC) with
      respect to the Securities Account and any and all financial assets and other
      property credited thereto to the exclusion of the Owner; provided,
      however,
      in no
      event shall the consent of the Owner be required as a condition to WTC complying
      with any such entitlement order of the Mortgagee.

     

    ARTICLE
      IV

     

    COVENANTS
      

     

    SECTION
      4.01.  Notice of Change of Location

     

    The
      Owner
      will give Mortgagee timely written notice (but in any event within 30 days
      prior
      to the expiration of the period of time specified under applicable Law to
      prevent lapse of perfection) of any change in its location (as such term is
      used
      in Section 9-307 of the UCC) or legal name and will promptly take any
      action required by Section 4.06 hereof as a result of such
      relocation.

     

    SECTION
      4.02.  Liens 

     

    The
      Owner
      will not directly or indirectly create, incur, assume or suffer to exist any
      Lien on or with respect to the Collateral, title to any of the foregoing or
      any
      interest of the Owner therein, except Permitted Liens. The Owner shall promptly,
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    action
      as
      may be necessary to duly discharge (by bonding or otherwise) any such Lien
      other
      than a Permitted Lien arising at any time.

     

    SECTION
      4.03.  Maintenance

     

    The
      Owner, at its own cost and expense:

     

    (a) shall
      maintain, or cause to be maintained, at all times the Pledged Spare Parts in
      accordance with all applicable Laws issued by the FAA or any other Governmental
      Entity having jurisdiction over the Owner or any such Pledged Spare Parts,
      including making any modifications, alterations, replacements and additions
      necessary therefor, and shall utilize, or cause to be utilized, the same manner
      and standard of maintenance with respect to each model of Spare Part or
      Appliance included in the Pledged Spare Parts as is utilized for such model
      of
      Spare Part or Appliance owned by the Owner and not included in the Pledged
      Spare
      Parts;

     

    (b) shall
      maintain, or cause to be maintained, all records, logs and other materials
      required by the FAA or under the Act to be maintained in respect of the Pledged
      Spare Parts and shall not modify its record retention procedures in respect
      of
      the Pledged Spare Parts if such modification would materially diminish the
      value
      of the Pledged Spare Parts, taken as a whole; and

     

    (c) shall
      maintain, or cause to be maintained, the Pledged Spare Parts in good working
      order and condition and shall perform all maintenance thereon necessary for
      that
      purpose, excluding (i) Pledged Spare Parts that have become worn out or unfit
      for use and not reasonably repairable or become obsolete, (ii) Pledged Spare
      Parts that are not required for the Owner’s normal operations and (iii)
      Expendables that have been consumed or used in the Owner’s
      operations.

     

    (d) shall
      maintain, or cause to be maintained, all Spare Parts Documents in respect of
      the
      Pledged Spare Parts in the English language.

     

    SECTION
      4.04.  Use, Designated Location and
      Possession

     

    (a) Subject
      to the terms of the Collateral Maintenance Agreement, the Owner shall have
      the
      right, at any time and from time to time at its own cost and expense, without
      any release from or consent by the Mortgagee, to deal with the Pledged Spare
      Parts in any manner consistent with the Owner’s ordinary course of business,
      including without limitation any of the following:

     

    (i) to
      incorporate in, install on, attach or make appurtenant to, or use in, any
      Aircraft, Engine or Qualified Spare Part leased to or owned by the Owner
      (whether or not subject to any Lien) any Pledged Spare Part, free from the
      Lien
      of this Trust Indenture;

     

    (ii) to
      dismantle any Pledged Spare Part that has become worn out or obsolete or unfit
      for use, and to sell or dispose of any such Pledged 

    
      
        
        

      

      
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    Spare
      Part or any salvage resulting from such dismantling, free from the Lien of
      this
      Trust Indenture; and

     

    (iii) to
      transfer any or all of the Pledged Spare Parts located at one or more Designated
      Locations to one or more other Designated Locations or to one or more locations
      which are not Designated Locations.

     

    (b) The
      Owner
shall
      keep the
      Pledged Spare Parts at one or more of the Designated Locations, except as
      otherwise permitted under Sections 4.04(a)
      or 4.05 of this Trust Indenture or the Collateral Maintenance
      Agreement.
      If and
      whenever the Owner shall wish to add a location as a Designated Location, the
      Owner will furnish to the Mortgagee the following:

     

    (i) a
      Trust
      Indenture Supplement duly executed by the Owner, identifying each location
      that
      is to become a Designated Location and specifically subjecting the Pledged
      Spare
      Parts at such location to the Lien of this Trust Indenture;

     

    (ii) an
      opinion of counsel, dated the date of execution of said Trust Indenture
      Supplement, stating that said Trust Indenture Supplement has been duly filed
      for
      recording in accordance with the provisions of the Act, and either: (a) no
      other
      filing or recording is required in any other place within the United States
      in
      order to perfect the Lien of this Trust Indenture on the Qualified Spare Parts
      held at the Designated Locations specified in such Trust Indenture Supplement
      under the laws of the United States, or (b) if any such other filing or
      recording shall be required that said filing or recording has been accomplished
      in such other manner and places, which shall be specified in such opinion of
      counsel, as are necessary to perfect the Lien of this Trust Indenture;
      and

     

    (iii) An
      Officer’s Certificate stating that in the opinion of the officer executing such
      Officer’s Certificate, all conditions precedent provided for in this Trust
      Indenture relating to the subjection of such property to the Lien of this Trust
      Indenture have been complied with.

     

    (c) Without
      the prior written consent of the Mortgagee, the Owner will not sell, lease
      or
      otherwise in any manner deliver, transfer or relinquish possession of any
      Pledged Spare Part to anyone other than the grant of the security interest
      to
      the Mortgagee pursuant to this Trust Indenture, except as permitted by the
      provisions of Section 3.2
      of the Collateral Maintenance Agreement and Sections 4.04
      and
      4.05 of this Trust Indenture
      and
      except that the Owner shall have the right, in the ordinary course of business,
      (i) to transfer possession of any Pledged Spare Part to the manufacturer thereof
      or any other organization for testing, overhaul, repairs, maintenance,
      alterations or modifications or to any Person for the purpose of transport
      to
      any of the foregoing or (ii) to subject any Pledged Spare Part to a pooling,
      exchange, borrowing or maintenance servicing agreement or arrangement customary
      in the airline industry and entered into by the Owner in the ordinary course
      of
      its business; provided,
      however,
      that if
      the Owner’s title to any such Pledged Spare Part shall be divested under any
      such agreement or

    
      
        
        

      

      
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    arrangement,
      such divestiture shall be deemed to be a Sale with respect to such Pledged
      Spare
      Part subject to the provisions of Section 3.2 of the Collateral Maintenance
      Agreement.

     

    (d) So
      long
      as no Event of Default shall have occurred and be continuing, the Owner may
      enter into a lease with respect to any Pledged Spare Part to any U.S. Air
      Carrier that is not then subject to any bankruptcy, insolvency, liquidation,
      reorganization, dissolution or similar proceeding and shall not have
      substantially all of its property in the possession of any liquidator, trustee,
      receiver or similar person (a “Permitted
      Lessee”).
      In
      the case of any such lease, the Owner will include in such lease appropriate
      provisions which (t) make such lease expressly subject and subordinate to all
      of
      the terms of this Trust Indenture, including the rights of the Mortgagee to
      repossess such Pledged Spare Part and avoid such lease in the exercise of its
      rights to repossession of the Pledged Spare Parts under this Trust Indenture,
      and the Owner shall remain primarily liable for the performance and observance
      of all of the terms of this Trust Indenture and all the terms and conditions
      of
      this Trust Indenture and the other Operative Agreements shall remain in effect,
      in each case to the same extent as if such lease or transfer had not occurred;
      (u) require the Permitted Lessee to comply with the terms of Section 4.09;
      and
      (v) require that the Pledged Spare Parts subject thereto be used in accordance
      with the limitations applicable to the Owner’s use, possession and location of
      such Pledged Spare Parts provided in this Trust Indenture (including, without
      limitation, that such Pledged Spare Parts be kept at one or more Designated
      Locations), it being understood that such Permitted Lessee shall be entitled
      to
      incorporate in, install on, attach or make appurtenant to, or use in, any
      Aircraft, Engine or Appliance leased to, or owned by, such Permitted Lessee
      (whether or not subject to any Lien) any Pledged Spare Part subject thereto,
      free from the Lien of this Trust Indenture. No lease permitted under this
      Section shall be entered into unless (w) the Owner shall provide written notice
      to the Mortgagee and a copy of any such lease (promptly after entering into
      any
      such lease); (x) the Owner shall furnish to the Mortgagee evidence reasonably
      satisfactory to the Mortgagee that the insurance required by Section 4.09(a)
      remains in effect; (y) all necessary documents shall have been duly filed,
      registered or recorded in such public offices as may be required fully to
      preserve the first priority security interest (subject to Permitted Liens)
      of
      Mortgagee in the Pledged Spare Parts; and (z) the Owner shall reimburse the
      Mortgagee for all of its reasonable out-of-pocket fees and expenses, including,
      without limitation, reasonable fees and disbursements of counsel, incurred
      by
      the Mortgagee in connection with any such lease. Except as otherwise provided
      herein and without in any way relieving the Owner from its primary obligation
      for the performance of its obligations under this Trust Indenture and the
      Collateral Maintenance Agreement, the Owner may in its sole discretion permit
      a
      Permitted Lessee to exercise any or all rights which the Owner would be entitled
      to exercise under Article IV hereof and Section 3.2 of the Collateral
      Maintenance Agreement, and may cause a Permitted Lessee to perform any or all
      of
      the Owner’s obligations under Article IV hereof and Section 3.2 of the
      Collateral Maintenance Agreement, and the Mortgagee agrees to accept actual
      and
      full performance thereof by a Permitted Lessee in lieu of performance by the
      Owner. No pooling agreement, permitted lease or other relinquishment of
      possession of any Pledged Spare Part shall in any way discharge or diminish
      any
      of the Owner’s obligations under this Trust Indenture or constitute a waiver by
      the Mortgagee or the Policy Provider of any rights or remedies
      hereunder.

    
      
        
        

      

      
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    SECTION
      4.05.  Permitted Sale or
      Dispositions

     

    (a) So
      long
      as no Event of Default has occurred and is continuing, the Owner may sell,
      transfer or dispose of Pledged Spare Parts free from the Lien of the Trust
      Indenture, subject to the provisions of the Collateral Maintenance
      Agreement.

     

    (b) No
      purchaser in good faith of property purporting to be transferred pursuant to
      Section 4.04(a)(ii) or 4.05(a) shall be bound to ascertain or inquire into
      the
      authority of the Owner to make any such transfer, free and clear of the Lien
      of
      this Trust Indenture. Any instrument of transfer executed by the Owner under
      Section 4.04(a)(ii) or 4.05 shall be sufficient for the purposes of this Trust
      Indenture and shall constitute a good and valid release, assignment and transfer
      of the property therein described free from the Lien of this Trust
      Indenture.

     

    SECTION
      4.06.  Certain
      Assurances

     

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

     

    (b) The
      Owner
      shall promptly take such action with respect to the recording, filing,
      re-recording and refiling of this Trust Indenture and any amendments or
      supplements hereto, as shall be necessary to continue the perfection and
      priority of the Lien created by this Trust Indenture.

     

    (c) The
      Owner, at its sole cost and expense, will cause the FAA Filed Documents, the
      Financing Statements and all continuation statements (and any amendments
      necessitated by any consolidation or merger of the Owner, any conveyance,
      transfer or lease of all or substantially all of the assets of the Owner, or
      any
      change of the Owner’s location) in respect of the Financing Statements to be
      prepared and, subject only to the execution and delivery thereof by Mortgagee,
      duly and timely filed and recorded, or filed for recordation, to the extent
      permitted under the Act (with respect to the FAA Filed Documents) or the UCC
      or
      similar law of any other applicable jurisdiction (with respect to such other
      documents).

     

    SECTION
      4.07.  Merger of
      Owner

     

    (a) In
      General.
      Owner
      shall not consolidate with or merge into any other person under circumstances
      in
      which Owner is not the surviving corporation, or convey, transfer or lease
      in
      one or more transactions all or substantially all of its assets to any other
      person, unless:

     

    (i) such
      person is organized, existing and in good standing under the Laws of the United
      States, any State of the United States or the District of Columbia and, upon
      consummation of such transaction, such person will be a U.S. Air
      Carrier;

    
      
        
        

      

      
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    (ii) such
      person executes and delivers to Mortgagee and the Policy Provider a duly
      authorized, legal, valid, binding and enforceable agreement, reasonably
      satisfactory in form and substance to Mortgagee and the Policy Provider,
      containing an effective assumption by such person of the due and punctual
      performance and observance of each covenant, agreement and condition in the
      Operative Agreements and the Policy Provider Documents to which the Owner is
      a
      party to be performed or observed by Owner;

     

    (iii) such
      person makes such filings and recordings with the FAA as shall be necessary
      to
      evidence such consolidation or merger; 

     

    (iv) immediately
      after giving effect to such consolidation or merger no Event of Default shall
      have occurred and be continuing; and

     

    (v) the
      Owner
      shall have delivered to the Mortgagee an officers’ certificate and an opinion
      (or opinions) of counsel, each stating that (a) such consolidation, merger,
      conveyance, transfer or lease and such supplemental indenture comply with the
      terms of this Trust Indenture and (ii) this Trust Indenture, each other
      Operative Agreement and the Equipment Notes constitute the valid and legally
      binding obligations of such person.

     

    (b) Effect
      of Merger.
      Upon
      any such consolidation or merger of Owner with or into, or the conveyance,
      transfer or lease by Owner of all or substantially all of its assets to, any
      Person in accordance with this Section 4.07, such Person will succeed to,
      and be substituted for, and may exercise every right and power of, Owner under
      the Operative Agreements with the same effect as if such person had been named
      as “Owner” therein. No such consolidation or merger, or conveyance, transfer or
      lease, shall have the effect of releasing Owner or such Person from any of
      the
      obligations, liabilities, covenants or undertakings of Owner under this Trust
      Indenture, the other Operative Agreements and the Policy Provider
      Documents.

     

    SECTION
      4.08.  Indenture Obligations

     

    The
      Owner
      agrees to perform and observe all of the agreements, covenants and obligations
      of the Owner set forth in this Trust Indenture, the Equipment Notes and the
      other Operative Agreements (it being understood that this Section 4.08 shall
      not
      restrict the ability to amend or supplement, or waive compliance with, any
      Operative Agreement in accordance with its terms).

     

    SECTION
      4.09.  Insurance

     

    (a) The
      Owner’s Obligation to Insure.

     

    (i) Obligation
      to Insure.
      The
      Owner shall comply with, or cause to be complied with, each of the provisions
      of
      Annex B, which provisions are hereby incorporated by this reference as if set
      forth in full herein.

    
      
        
        

      

      
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    (ii) Insurance
      for Own Account.
      Nothing
      in this Section 4.09(a) shall limit or prohibit (a) the Owner from
      maintaining the policies of insurance required under Annex B with higher limits
      than those specified in Annex B, or (b) the Mortgagee or any Additional
      Insured from obtaining insurance for its own account (and any proceeds payable
      under such separate insurance shall be payable as provided in the policy
      relating thereto); provided,
      however,
      that no
      insurance may be obtained or maintained that would limit or otherwise adversely
      affect the coverage of any insurance required to be obtained or maintained
      by
      the Owner pursuant to this Section 4.09(a) and Annex B.

     

    (b) Application
      of Insurance Proceeds.
      

     

    (i) As
      between the Owner and the Mortgagee, all insurance proceeds up to the Debt
      Balance paid under policies required to be maintained by the Owner pursuant
      to
      this Trust Indenture as a result of the occurrence of an Event of Loss with
      respect to any Pledged Spare Parts involving proceeds in excess of the Threshold
      Amount will be paid to the Mortgagee. At any time or from time to time after
      the
      receipt by the Mortgagee of insurance proceeds, upon submission to the Mortgagee
      of an Officer’s Certificate stating that the Owner has after the occurrence of
      such Event of Loss purchased additional Qualified Spare Parts that are located
      at or have been shipped by vendor(s) to a Designated Location, and stating
      the
      aggregate purchase price for such additional Qualified Spare Parts, the
      Mortgagee shall pay the amount of such purchase price, up to the amount of
      such
      insurance proceeds not previously disbursed pursuant to this sentence or
      otherwise distributed under this Trust Indenture, to the Owner or its
      designee.

     

    (ii) All
      proceeds of insurance required to be maintained by the Owner in accordance
      with
      this Trust Indenture in respect of any property damage or loss involving
      proceeds of the Threshold Amount or less or not constituting an Event of Loss
      with respect to any Pledged Spare Parts and insurance proceeds in excess of
      the
      Debt Balance shall be paid over to, and retained by, the Owner.

     

    (iii) If
      either
      the Mortgagee or the Owner receives a payment of such insurance proceeds in
      excess of its entitlement pursuant to this Trust Indenture, it shall
      promptly
      pay such excess to the other. 

     

    (c) Application
      of Payments During Existence of a Special Default or Event of
      Default.
      Any
      amount described in this Section 4.09 that is payable or creditable to, or
      retainable by, the Owner shall not be paid or credited to, or retained by,
      the
      Owner if at the time such payment, credit or retention would otherwise occur
      a
      Special Default or Event of Default shall have occurred and be continuing,
      but
      shall instead be held by or paid over to the Mortgagee as security for the
      obligations of the Owner under this Trust Indenture and shall be invested
      pursuant to Section 6.06 hereof. At such time as there shall not be
      continuing any Special Default or Event of Default, such amount and any gains
      thereon shall be paid to the Owner to the extent not previously applied in
      accordance with this Trust Indenture.

    
      
        
        

      

      
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    ARTICLE
      V

     

    EVENTS
      OF DEFAULT; REMEDIES OF MORTGAGEE

     

    SECTION
      5.01.  Event of
      Default

     

    “Event
      of
      Default” means any of the following events (whatever the reason for such Event
      of Default and whether such event shall be voluntary or involuntary or come
      about or be effected by operation of Law or pursuant to or in compliance with
      any judgment, decree or order of any court or any order, rule or regulation
      of
      any administrative or governmental body):

     

    (i) the
      failure of the Owner to pay (x) principal of, interest on, Break Amount, if
      any,
      or Premium, if any, under any Equipment Note when due (including when due in
      connection with an Optional Redemption), and such failure shall continue
      unremedied for a period of 10 Business Days, or (y) any other amount
      payable by it to the Note Holders under this Trust Indenture or the Note
      Purchase Agreement when due, and such failure shall continue for a period in
      excess of 10 Business Days after Owner has received written notice from
      Mortgagee or holder of an Equipment Note of the failure to make such payment
      when due;

     

    (ii) Owner
      shall fail (x) to comply with Section 3.1 of the Collateral Maintenance
      Agreement or (y) to redeem Series G Equipment Notes when required pursuant
      to
      Section 3.3 of the Collateral Maintenance Agreement;

     

    (iii) Owner
      shall fail to observe or perform (or caused to be observed and performed) in
      any
      material respect any other covenant, agreement or obligation set forth herein,
      in the Collateral Maintenance Agreement or in any other Operative Agreement
      to
      which Owner is a party and such failure shall continue unremedied for a period
      of 30 days from and after the date of written notice thereof to Owner from
      Mortgagee, unless such failure is capable of being corrected and Owner shall
      be
      diligently proceeding to correct such failure, in which case there shall be
      no
      Event of Default unless and until such failure shall continue unremedied for
      a
      period of 270 days after receipt of such notice;

     

    (iv) any
      representation or warranty made by Owner herein, in the Note Purchase Agreement,
      in the Collateral Maintenance Agreement or in any other Operative Agreement
      to
      which Owner is a party (a) shall prove to have been untrue or inaccurate in
      any material respect as of the date made, (b) such untrue or inaccurate
      representation or warranty is material at the time in question, (c) and the
      same shall remain uncured (to the extent of the adverse impact of such
      incorrectness on the interest of the Mortgagee) for a period in excess of 30
      days from and after the date of written notice thereof from Mortgagee to
      Owner;

     

    (v) the
      Owner
      shall consent to the appointment of or taking possession by a receiver, trustee
      or liquidator of itself or of a substantial part of its property, or the Owner
      shall admit in writing its inability to pay its debts generally as they come
      due
      or shall make a general assignment for the benefit of its creditors, or the
      Owner shall file a voluntary petition in bankruptcy or a voluntary petition
      or
      an answer seeking reorganization, liquidation or other relief under any
      bankruptcy laws or insolvency laws (as in effect at such time), or an answer
      admitting the material allegations of a petition filed against it in any such
      case, or the 

    
      
        
        

      

      
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    Owner
      shall seek relief by voluntary petition, answer or consent, under the provisions
      of any other bankruptcy or similar law providing for the reorganization or
      winding-up of corporations (as in effect at such time), or the Owner shall
      seek
      an agreement, composition, extension or adjustment with its creditors under
      such
      laws or the Owner’s board of directors shall adopt a resolution authorizing
      corporate action in furtherance of any of the foregoing;

     

    (vi) an
      order,
      judgment or decree shall be entered by any court of competent jurisdiction
      appointing, without the consent of the Owner, a receiver, trustee or liquidator
      of the Owner or of any substantial part of its property, or any substantial
      part
      of the property of the Owner shall be sequestered, or granting any other relief
      in respect of the Owner as a debtor under any bankruptcy laws or other
      insolvency laws (as in effect at such time), and any such order, judgment,
      decree, or decree of appointment or sequestration shall remain in force
      undismissed, unstayed or unvacated for a period of 90 days after the date of
      entry thereof; 

     

    (vii) a
      petition against the Owner in a proceeding under any bankruptcy laws or other
      insolvency laws (as in effect at such time) is filed and not withdrawn or
      dismissed within 90 days thereafter, or if, under the provisions of any law
      providing for reorganization or winding-up of corporations which may apply
      to
      the Owner, any court of competent jurisdiction shall assume jurisdiction,
      custody or control of the Owner of any substantial part of its property and
      such
      jurisdiction, custody or control shall remain in force unrelinquished, unstayed
      or unterminated for a period of 90 days; or

     

    (viii) the
      Owner
      shall fail to carry and maintain, or cause to be carried and maintained,
      insurance on and in respect of the Pledged Spare Parts in accordance with the
      provisions of Section 4.09 and such failure shall continue unremedied for a
      period of 30 days;

     

    SECTION
      5.02.  Remedies

     

    (a) If
      an
      Event of Default shall have occurred and be continuing and so long as the same
      shall continue unremedied, then and in every such case the Mortgagee may
      exercise any or all of the rights and powers and pursue any and all of the
      remedies pursuant to this Article V and shall have and may exercise all of
      the
      rights and remedies of a secured party under the Uniform Commercial Code and
      may
      take possession of all or any part of the properties covered or intended to
      be
      covered by the Lien created hereby or pursuant hereto and may exclude the Owner
      and all persons claiming under it wholly or partly therefrom and may sell the
      Collateral as a whole or from time to time in part; provided,
      that
      the Mortgagee shall give the Owner twenty days’ prior written notice of its
      intention to sell any Collateral. Without limiting any of the foregoing, it
      is
      understood and agreed that the Mortgagee may exercise any right of sale, lease
      or other disposition of any Collateral available to it, even though it shall
      not
      have taken possession of such Collateral and shall not have possession thereof
      at the time of such sale, lease or other disposition.

     

    (b) If
      an
      Event of Default shall have occurred and be continuing, then and in every such
      case the Mortgagee may (and shall, upon receipt of a written demand therefor
      from a Majority in Interest of Note Holders), at any time, by delivery of
      written notice or notices 

    
      
        
        

      

      
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    to
      the
      Owner, declare all the Equipment Notes to be due and payable, whereupon the
      unpaid Original Amount of all Equipment Notes then outstanding, together with
      accrued but unpaid interest thereon, Break Amount, if any, with respect thereto,
      and other amounts due thereunder or otherwise payable hereunder, shall
      immediately become due and payable without presentment, demand, protest or
      notice, all of which are hereby waived; provided that if an Event of Default
      referred to in clause (v), (vi) or (vii) of Section 5.01 hereof shall have
      occurred, then and in every such case the unpaid Original Amount then
      outstanding, together with accrued but unpaid interest, Break Amount, if any,
      with respect thereto, and all other amounts due hereunder and under the
      Equipment Notes shall immediately and without further act become due and payable
      without presentment, demand, protest or notice, all of which are hereby
      waived.

     

    This
      Section 5.02(b), however, is subject to the condition that, if at any time
      after
      all or any portion of the Original Amount of the Equipment Notes shall have
      become so due and payable, and before any judgment or decree for the payment
      of
      the money so due, or any thereof, shall be entered, all overdue payments of
      interest upon the Equipment Notes and all other amounts payable hereunder or
      under the Equipment Notes (except the portion of the Original Amount of the
      Equipment Notes which by such declaration shall have become payable) shall
      have
      been duly paid, and every other Default and Event of Default with respect to
      any
      covenant or provision of this Trust Indenture shall have been cured, then and
      in
      every such case a Majority in Interest of Note Holders may (but shall not be
      obligated to), by written instrument filed with the Mortgagee, rescind and
      annul
      the Mortgagee’s declaration (or such automatic acceleration) and its
      consequences; but no such rescission or annulment shall extend to or affect
      any
      subsequent Default or Event of Default or impair any right consequent
      thereon.

     

    (c) The
      Note
      Holders shall be entitled, at any sale pursuant to this Section 5.02, to credit
      against any purchase price bid at such sale by such holder all or any part
      of
      the unpaid obligations owing to such Note Holder and secured by the Lien of
      this
      Trust Indenture (only to the extent that such purchase price would have been
      paid to such Note Holder pursuant to Article III hereof if such purchase price
      were paid in cash and the foregoing provisions of this subsection (c) were
      not
      given effect).

     

    (d) In
      the
      event of any sale of the Collateral, or any part thereof, pursuant to any
      judgment or decree of any court or otherwise in connection with the enforcement
      of any of the terms of this Trust Indenture, the unpaid Original Amount of
      all
      Equipment Notes then outstanding, together with accrued interest thereon, Break
      Amount, if any, and other amounts due thereunder, shall immediately become
      due
      and payable without presentment, demand, protest or notice, all of which are
      hereby waived.

     

    (e) Notwithstanding
      anything contained herein, so long as the Pass Through Trustee under any Pass
      Through Trust Agreement (or its designee) is a Note Holder, the Mortgagee will
      not be authorized or empowered to acquire title to any Collateral or take any
      action with respect to any Collateral so acquired by it if such acquisition
      or
      action would cause any Trust to fail to qualify as a “grantor trust” for federal
      income tax purposes.

    
      
        
        

      

      
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    SECTION
      5.03.  Return of Collateral,
      Etc.

     

    (a) If
      an
      Event of Default shall have occurred and be continuing, at the request of the
      Mortgagee, the Owner shall assemble the Collateral and make it available to
      the
      Mortgagee at the Designated Locations and shall promptly execute and deliver
      to
      the Mortgagee such instruments of title and other documents as the Mortgagee
      may
      deem necessary or advisable to enable the Mortgagee or an agent or
      representative designated by the Mortgagee, at such time or times and place
      or
      places as the Mortgagee may specify, to obtain possession of all or any part
      of
      the Collateral to which the Mortgagee shall at the time be entitled hereunder.
      If the Owner shall for any reason fail to execute and deliver such instruments
      and documents after such request by the Mortgagee, the Mortgagee may (i) obtain
      a judgment conferring on the Mortgagee the right to immediate possession and
      requiring the Owner to execute and deliver such instruments and documents to
      the
      Mortgagee, to the entry of which judgment the Owner hereby specifically consents
      to the fullest extent permitted by Law, and (ii) pursue all or part of such
      Collateral wherever it may be found and may enter any of the premises of Owner
      wherever such Collateral may be or are supposed to be and search for such
      Collateral and take possession of and remove such Collateral. All expenses
      of
      obtaining such judgment or of pursuing, searching for and taking such property
      shall, until paid, be secured by the Lien of this Trust Indenture.

     

    (b) Upon
      every such taking of possession, the Mortgagee may, from time to time, at the
      expense of the Collateral, make all such expenditures for maintenance, use,
      operation, storage, insurance, leasing, control, management, disposition,
      modifications or alterations to and of the Collateral, as it may deem proper.
      In
      each such case, the Mortgagee shall have the right to maintain, use, operate,
      store, insure, lease, control, manage, dispose of, modify or alter the
      Collateral and to exercise all rights and powers of the Owner relating to the
      Collateral, as the Mortgagee shall deem best, including the right to enter
      into
      any and all such agreements with respect to the maintenance, use, operation,
      storage, insurance, leasing, control, management, disposition, modification
      or
      alteration of the Collateral or any part thereof as the Mortgagee may determine,
      and the Mortgagee shall be entitled to collect and receive directly all rents,
      revenues and other proceeds of the Collateral and every part thereof, without
      prejudice, however, to the right of the Mortgagee under any provision of this
      Trust Indenture to collect and receive all cash held by, or required to be
      deposited with, the Mortgagee hereunder. Such rents, revenues and other proceeds
      shall be applied to pay the expenses of the maintenance, use, operation,
      storage, insurance, leasing, control, management, disposition, improvement,
      modification or alteration of the Collateral and of conducting the business
      thereof, and to make all payments which the Mortgagee may be required or may
      elect to make, if any, for taxes, assessments, insurance or other proper charges
      upon the Collateral or any part thereof (including the employment of engineers
      and accountants to examine, inspect and make reports upon the properties and
      books and records of the Owner), and all other payments which the Mortgagee
      may
      be required or authorized to make under any provision of this Trust Indenture,
      as well as just and reasonable compensation for the services of the Mortgagee,
      and of all persons properly engaged and employed by the Mortgagee with respect
      hereto.

    
      
        
        

      

      
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    SECTION
      5.04.  Remedies
      Cumulative

     

    Each
      and
      every right, power and remedy given to the Mortgagee specifically or otherwise
      in this Trust Indenture shall be cumulative and shall be in addition to every
      other right, power and remedy herein specifically given or now or hereafter
      existing at Law, in equity or by statute, and each and every right, power and
      remedy whether specifically herein given or otherwise existing may be exercised
      from time to time and as often and in such order as may be deemed expedient
      by
      the Mortgagee, and the exercise or the beginning of the exercise of any power
      or
      remedy shall not be construed to be a waiver of the right to exercise at the
      same time or thereafter any other right, power or remedy. No delay or omission
      by the Mortgagee in the exercise of any right, remedy or power or in the
      pursuance of any remedy shall impair any such right, power or remedy or be
      construed to be a waiver of any default on the part of the Owner or to be an
      acquiescence therein.

     

    SECTION
      5.05.  Discontinuance of
      Proceedings

     

    In
      case
      the Mortgagee shall have instituted any proceeding to enforce any right, power
      or remedy under this Trust Indenture by foreclosure, entry or otherwise, and
      such proceedings shall have been discontinued or abandoned for any reason or
      shall have been determined adversely to the Mortgagee, then and in every such
      case the Owner and the Mortgagee shall, subject to any determination in such
      proceedings, be restored to their former positions and rights hereunder with
      respect to the Collateral, and all rights, remedies and powers of the Owner
      or
      the Mortgagee shall continue as if no such proceedings had been
      instituted.

     

    SECTION
      5.06.  Waiver of Past
      Defaults

     

    Upon
      written instruction from a Majority in Interest of Note Holders, the Mortgagee
      shall waive any past Default hereunder and its consequences and upon any such
      waiver such Default shall cease to exist and any Event of Default arising
      therefrom shall be deemed to have been cured for every purpose of this Trust
      Indenture, but no such waiver shall extend to any subsequent or other Default
      or
      impair any right consequent thereon; provided, that in the absence of written
      instructions from all the Note Holders, the Mortgagee shall not waive any
      Default (i) in the payment of all or any portion of the Original Amount,
      Premium, if any, Break Amount, if any, and interest and other amounts due under
      any Equipment Note then outstanding, or (ii) in respect of a covenant or
      provision hereof which, under Article X hereof, cannot be modified or amended
      without the consent of each Note Holder.

     

    SECTION
      5.07.  Appointment of
      Receiver

     

    The
      Mortgagee shall, as a matter of right, be entitled to the appointment of a
      receiver (who may be the Mortgagee or any successor or nominee thereof) for
      all
      or any part of the Collateral, whether such receivership be incidental to a
      proposed sale of the Collateral or the taking of possession thereof or
      otherwise, and the Owner hereby consents to the appointment of such a receiver
      and will not oppose any such appointment. Any receiver appointed for all or
      any
      part of the Collateral shall be entitled to exercise all the rights and powers
      of the Mortgagee with respect to the Collateral.

    
      
        
        

      

      
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    SECTION
      5.08.  Mortgagee Authorized to Execute
      Bills of Sale, Etc.

     

    The
      Owner
      irrevocably appoints, while an Event of Default has occurred and is continuing,
      the Mortgagee the true and lawful attorney-in-fact of the Owner (which
      appointment is coupled with an interest) in its name and stead and on its
      behalf, for the purpose of effectuating any sale, assignment, transfer or
      delivery for the enforcement of the Lien of this Trust Indenture, whether
      pursuant to foreclosure or power of sale, assignments and other instruments
      as
      may be necessary or appropriate or entering into any agreement described in
      Section 5.03(b), with full power of substitution, the Owner hereby ratifying
      and
      confirming all that such attorney or any substitute shall do by virtue hereof
      in
      accordance with applicable law. Nevertheless, if so requested by the Mortgagee
      or any purchaser, the Owner shall ratify and confirm any such sale, assignment,
      transfer or delivery, by executing and delivering to the Mortgagee or such
      purchaser all bills of sale, assignments, releases and other proper instruments
      to effect such ratification and confirmation as may be designated in any such
      request.

     

    SECTION
      5.09.  Rights of Note Holders to Receive
      Payment

     

    Notwithstanding
      any other provision of this Trust Indenture, the right of any Note Holder to
      receive payment of principal of, and premium, if any, and interest on an
      Equipment Note on or after the respective due dates expressed in such Equipment
      Note, or to bring suit for the enforcement of any such payment on or after
      such
      respective dates in accordance with the terms hereof, shall not be impaired
      or
      affected without the consent of such Note Holder.

     

    ARTICLE
      VI

     

    DUTIES
      OF THE MORTGAGEE

     

    SECTION
      6.01.  Notice of Event of
      Default

     

    If
      the
      Mortgagee shall have Actual Knowledge of an Event of Default or of a Default
      arising from a failure to pay any installment of principal and interest on
      any
      Equipment Note, the Mortgagee shall give prompt written notice thereof to the
      Policy Provider and each Note Holder. Subject to the terms of Sections 5.06,
      6.02 and 6.03 hereof, the Mortgagee shall take such action, or refrain from
      taking such action, with respect to such Event of Default or Default (including
      with respect to the exercise of any rights or remedies hereunder) as the
      Mortgagee shall be instructed in writing by a Majority in Interest of Note
      Holders. Subject to the provisions of Section 6.03, if the Mortgagee shall
      not
      have received instructions as above provided within 20 days after mailing notice
      of such Event of Default to the Note Holders, the Mortgagee may, subject to
      instructions thereafter received pursuant to the preceding provisions of this
      Section 6.01, take such action, or refrain from taking such action, but shall
      be
      under no duty to take or refrain from taking any action, with respect to such
      Event of Default or Default as it shall determine advisable in the best
      interests of the Note Holders; provided,
      however,
      that
      the Mortgagee may not sell any Pledged Spare Parts without the consent of a
      Majority in Interest of Note Holders. For all purposes of this Trust Indenture,
      in the absence of Actual Knowledge on the part of the Mortgagee, the Mortgagee
      shall not be deemed to have knowledge of a Default or an Event of Default
      (except, the failure of Owner to pay any installment of principal or interest
      

    
      
        
        

      

      
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    within
      one Business Day after the same shall become due, which failure shall constitute
      knowledge of a Default) unless notified in writing by the Owner or one or more
      Note Holders.

     

    SECTION
      6.02.  Action Upon Instructions; Certain
      Rights and Limitations

     

    Subject
      to the terms of Sections 5.02(a), 5.06, 6.01 and 6.03 hereof, upon the written
      instructions at any time and from time to time of a Majority in Interest of
      Note
      Holders, the Mortgagee shall, subject to the terms of this Section 6.02, take
      such of the following actions as may be specified in such instructions: (i)
      give
      such notice or direction or exercise such right, remedy or power hereunder
      or
      under any other Operative Agreement as shall be specified in such instructions
      and (ii) give such notice or direction or exercise such right, remedy or power
      hereunder or under any other Operative Agreement with respect to any part of
      the
      Collateral as shall be specified in such instructions; it being understood
      that
      without the written instructions of a Majority in Interest of Note Holders,
      the
      Mortgagee shall not, except as provided in Section 6.01, approve any such
      matter as satisfactory to the Mortgagee.

     

    The
      Mortgagee will execute and the Owner will file such continuation statements
      with
      respect to financing statements relating to the security interest created
      hereunder in the Collateral as may be specified from time to time in written
      instructions of a Majority in Interest of Note Holders (which instructions
      shall
      be accompanied by the form of such continuation statement so to be filed).
      The
      Mortgagee will furnish to the Policy Provider and each Note Holder, promptly
      upon receipt thereof, duplicates or copies of all reports, notices, requests,
      demands, certificates and other instruments furnished to the Mortgagee
      hereunder.

     

    SECTION
      6.03.  Indemnification

     

    The
      Mortgagee shall not be required to take any action or refrain from taking any
      action under Section 6.01 (other than the first sentence thereof), 6.02 or
      Article V hereof unless the Mortgagee shall have been indemnified to its
      reasonable satisfaction against any liability, cost or expense (including
      counsel fees) which may be incurred in connection therewith pursuant to a
      written agreement with one or more Note Holders. The Mortgagee agrees that
      it
      shall look solely to the Note Holders for the satisfaction of any indemnity
      (except expenses for foreclosure of the type referred to in clause “First” of
      Section 3.03 hereof) owed to it pursuant to this Section 6.03. The Mortgagee
      shall not be under any obligation to take any action under this Trust Indenture
      or any other Operative Agreement and nothing herein or therein shall require
      the
      Mortgagee to expend or risk its own funds or otherwise incur the risk of any
      financial liability in the performance of any of its rights or powers if it
      shall have reasonable grounds for believing that repayment of such funds or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      it (the written indemnity of any Note Holder who is a QIB, signed by an
      authorized officer thereof, in favor of, delivered to and in form reasonably
      satisfactory to the Mortgagee shall be accepted as reasonable assurance of
      adequate indemnity). The Mortgagee shall not be required to take any action
      under Section 6.01 (other than the first sentence thereof) or 6.02 or Article
      V
      hereof, nor shall any other provision of this Trust Indenture or any other
      Operative Agreement be deemed to impose a duty on the Mortgagee to take any
      action, if the Mortgagee shall have been advised by counsel that such action
      is
      contrary to the terms hereof or is otherwise contrary to Law.

    
      
        
        

      

      
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    SECTION
      6.04.  No Duties Except as Specified in
      Trust Indenture or Instructions

     

    The
      Mortgagee shall not have any duty or obligation to use, operate, store, lease,
      control, manage, sell, dispose of or otherwise deal with any part of the
      Collateral, or to otherwise take or refrain from taking any action under, or
      in
      connection with, this Trust Indenture or any part of the Collateral, except
      as
      expressly provided by the terms of this Trust Indenture or as expressly provided
      in written instructions from Note Holders as provided in this Trust Indenture;
      and no implied duties or obligations shall be read into this Trust Indenture
      against the Mortgagee. The Mortgagee agrees that it will in its individual
      capacity and at its own cost and expense (but without any right of indemnity
      in
      respect of any such cost or expense under Section 8.01 hereof), promptly take
      such action as may be necessary duly to discharge all liens and encumbrances
      on
      any part of the Collateral which result from claims against it in its individual
      capacity not related to the administration of the Collateral or any other
      transaction pursuant to this Trust Indenture or any document included in the
      Collateral.

     

    SECTION
      6.05.  No Action Except Under Trust
      Indenture or Instructions

     

    The
      Mortgagee will not use, operate, store, lease, control, manage, sell, dispose
      of
      or otherwise deal with any part of the Collateral except in accordance with
      the
      powers granted to, or the authority conferred upon the Mortgagee pursuant to
      this Trust Indenture and in accordance with the express terms
      hereof.

     

    SECTION
      6.06.  Investment of Amounts Held by
      Mortgagee

     

    Any
      amounts held by the Mortgagee pursuant to Section 3.02, 3.03 or 3.07 or pursuant
      to any provision of any other Operative Agreement providing for amounts to
      be
      held by the Mortgagee which are not distributed pursuant to the other provisions
      of Article III hereof shall be invested by the Mortgagee from time to time
      in
      Investment Securities as directed by the Owner so long as the Mortgagee may
      acquire the same using its best efforts. All Investment Securities held by
      the
      Mortgagee pursuant to this Section 6.06 shall either be (a) registered in the
      name of, payable to the order of, or specially endorsed to, the Mortgagee,
      or
      (b) held in an Eligible Account. Unless otherwise expressly provided in this
      Trust Indenture, any income realized as a result of any such investment, net
      of
      the Mortgagee’s reasonable fees and expenses in making such investment, shall be
      held and applied by the Mortgagee in the same manner as the principal amount
      of
      such investment is to be applied and any losses, net of earnings and such
      reasonable fees and expenses, shall be charged against the principal amount
      invested. The Mortgagee shall not be liable for any loss resulting from any
      investment required to be made by it under this Trust Indenture other than
      by
      reason of its willful misconduct or gross negligence or negligence in the
      handling of funds, and any such investment may be sold (without regard to its
      maturity) by the Mortgagee without instructions whenever such sale is necessary
      to make a distribution required by this Trust Indenture.

    
      
        
        

      

      
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    ARTICLE
      VII

     

    THE
      MORTGAGEE

     

    SECTION
      7.01.  Acceptance of Trusts and
      Duties

     

    The
      Mortgagee accepts the duties hereby created and applicable to it and agrees
      to
      perform the same but only upon the terms of this Trust Indenture and agrees
      to
      receive and disburse all monies constituting part of the Collateral in
      accordance with the terms hereof. The Mortgagee, in its individual capacity,
      shall not be answerable or accountable under any circumstances, except (i)
      for
      its own willful misconduct or gross negligence (other than for the handling
      of
      funds, for which the standard of accountability shall be willful misconduct
      or
      negligence), (ii) as provided in the fourth sentence of Section 2.04(a) hereof
      and the last sentence of Section 6.04 hereof, and (iii) from the inaccuracy
      of
      any representation or warranty of the Mortgagee (in its individual capacity)
      in
      the Note Purchase Agreement or expressly made hereunder.

     

    SECTION
      7.02.  Absence of
      Duties

     

    Except
      in
      accordance with written instructions furnished pursuant to Section 6.01 or
      6.02
      hereof, and except as provided in, and without limiting the generality of,
      Sections 6.03, 6.04 and 7.07 hereof the Mortgagee shall have no duty (i) to
      see
      to any recording or filing of this Trust Indenture or any other document, or
      to
      see to the maintenance of any such recording or filing, (ii) to see to any
      insurance on any Pledged Spare Parts or to effect or maintain any such
      insurance, whether or not Owner shall be in default with respect thereto, (iii)
      to see to the payment or discharge of any lien or encumbrance of any kind
      against any part of the Collateral, (iv) to confirm, verify or inquire into
      the
      failure to receive any financial statements from Owner, or (v) to inspect the
      Collateral at any time or ascertain or inquire as to the performance or
      observance of any of Owner’s covenants herein or any Permitted Lessee’s
      covenants under any assigned Permitted Lease with respect to any Pledged Spare
      Parts.

     

    SECTION
      7.03.  No Representations or Warranties
      as to Pledged Spare Parts or Spare Parts Documents

     

    THE
      MORTGAGEE IN ITS INDIVIDUAL OR TRUST CAPACITY DOES NOT MAKE AND SHALL NOT BE
      DEEMED TO HAVE MADE AND HEREBY EXPRESSLY DISCLAIMS ANY REPRESENTATION OR
      WARRANTY, EXPRESS OR IMPLIED, AS TO THE TITLE, AIRWORTHINESS, VALUE, COMPLIANCE
      WITH SPECIFICATIONS, CONDITION, DESIGN, QUALITY, DURABILITY, OPERATION,
      MERCHANTABILITY OR FITNESS FOR USE FOR A PARTICULAR PURPOSE OF ANY PLEDGED
      SPARE
      PARTS, AS TO THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT
      DISCOVERABLE, AS TO THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT, TRADEMARK
      OR
      COPYRIGHT, AS TO THE ABSENCE OF OBLIGATIONS BASED ON STRICT LIABILITY IN TORT
      OR
      ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER. The Mortgagee, in its
      individual or trust capacities, does not make or shall not be deemed to have
      made any representation or warranty as to the validity, legality or
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    Agreement,
      or the Equipment Notes, or as to the correctness of any statement contained
      in
      any thereof, except for the representations and warranties of the Mortgagee
      in
      its individual capacity expressly made in this Trust Indenture or in the Note
      Purchase Agreement. The Note Holders make no representation or warranty
      hereunder whatsoever.

     

    SECTION
      7.04.  No Segregation of Monies; No
      Interest

     

    Except
      as
      otherwise provided in Section 3.07 hereof, any monies paid to or retained by
      the
      Mortgagee pursuant to any provision hereof and not then required to be
      distributed to the Note Holders, or the Owner as provided in Article III hereof
      need not be segregated in any manner except to the extent required by Law or
      Section 6.06 hereof, and may be deposited under such general conditions as
      may
      be prescribed by Law, and the Mortgagee shall not be liable for any interest
      thereon (except that the Mortgagee shall invest all monies held as directed
      by
      Owner so long as no Event of Default has occurred and is continuing (or in
      the
      absence of such direction, by the Majority In Interest of Note Holders) in
      Investment Securities; provided,
      however,
      that
      any payments received, or applied hereunder, by the Mortgagee shall be accounted
      for by the Mortgagee so that any portion thereof paid or applied pursuant hereto
      shall be identifiable as to the source thereof.

     

    SECTION
      7.05.  Reliance; Agreements; Advice of
      Counsel

     

    The
      Mortgagee shall not incur any liability to anyone in acting upon any signature,
      instrument, notice, resolution, request, consent, order, certificate, report,
      opinion, bond or other document or paper believed by it to be genuine and
      believed by it to be signed by the proper party or parties. The Mortgagee may
      accept a copy of a resolution of the Board of Directors (or Executive Committee
      thereof) of the Owner, certified by the Secretary or an Assistant Secretary
      thereof as duly adopted and in full force and effect, as conclusive evidence
      that such resolution has been duly adopted and that the same is in full force
      and effect. As to the aggregate unpaid Original Amount of Equipment Notes
      outstanding as of any date, the Owner may for all purposes hereof rely on a
      certificate signed by any Vice President or other authorized corporate trust
      officer of the Mortgagee. As to any fact or matter relating to the Owner the
      manner of the ascertainment of which is not specifically described herein,
      the
      Mortgagee may for all purposes hereof rely on a certificate, signed by a duly
      authorized officer of the Owner, as to such fact or matter, and such certificate
      shall constitute full protection to the Mortgagee for any action taken or
      omitted to be taken by it in good faith in reliance thereon. In the
      administration of the trusts hereunder, the Mortgagee may execute any of the
      trusts or powers hereof and perform its powers and duties hereunder directly
      or
      through agents or attorneys and may, at the expense of the Collateral, advise
      with counsel, accountants and other skilled persons to be selected and retained
      by it, and the Mortgagee shall not be liable for anything done, suffered or
      omitted in good faith by it in accordance with the written advice or written
      opinion of any such counsel, accountants or other skilled persons.

     

    SECTION
      7.06.  Compensation

     

    The
      Mortgagee shall be entitled to reasonable compensation, including expenses
      and
      disbursements (including the reasonable fees and expenses of counsel), for
      all
      services 

    
      
        
        

      

      
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    rendered
      hereunder and shall, on and subsequent to an Event of Default hereunder, have
      a
      priority claim on the Collateral for the payment of such compensation, to the
      extent that such compensation shall not be paid by Owner, and shall have the
      right, on and subsequent to an Event of Default hereunder, to use or apply
      any
      monies held by it hereunder in the Collateral toward such payments. The
      Mortgagee agrees that it shall have no right against the Note Holders for any
      fee as compensation for its services as trustee under this Trust
      Indenture.

     

    SECTION
      7.07.  Instructions from Note
      Holders

     

    In
      the
      administration of the trusts created hereunder, the Mortgagee shall have the
      right to seek instructions from a Majority in Interest of Note Holders should
      any provision of this Trust Indenture appear to conflict with any other
      provision herein or should the Mortgagee’s duties or obligations hereunder be
      unclear, and the Mortgagee shall incur no liability in refraining from acting
      until it receives such instructions. The Mortgagee shall be fully protected
      for
      acting in accordance with any instructions received under this Section
      7.07.

     

    ARTICLE
      VIII

     

    INDEMNIFICATION

     

    SECTION
      8.01.  Scope of
      Indemnification

     

    The
      Mortgagee shall be indemnified by the Owner to the extent and in the manner
      provided in Section 8 of the Note Purchase Agreement.

     

    ARTICLE
      IX

     

    SUCCESSOR
      AND SEPARATE TRUSTEES

     

    SECTION
      9.01.  Resignation of Mortgagee;
      Appointment of Successor

     

    (a) The
      Mortgagee or any successor thereto may resign at any time without cause by
      giving at least 30 days’ prior written notice to the Owner and each Note Holder,
      such resignation to be effective upon the acceptance of the trusteeship by
      a
      successor Mortgagee. In addition, a Majority in Interest of Note Holders may
      at
      any time (but only with the consent of Owner, which consent shall not be
      unreasonably withheld, except that such consent shall not be necessary if an
      Event of Default is continuing) remove the Mortgagee without cause by an
      instrument in writing delivered to the Owner and the Mortgagee, and the
      Mortgagee shall promptly notify each Note Holder thereof in writing, such
      removal to be effective upon the acceptance of the trusteeship by a successor
      Mortgagee. In the case of the resignation or removal of the Mortgagee, a
      Majority in Interest of Note Holders may appoint a successor Mortgagee by an
      instrument signed by such holders, which successor, so long as no Event of
      Default shall have occurred and be continuing, shall be subject to Owner’s
      reasonable approval. If a successor Mortgagee shall not have been appointed
      within 30 days after such notice of resignation or removal, the Mortgagee,
      the
      Owner or any Note Holder may apply to any court of 

    
      
        
        

      

      
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    competent
      jurisdiction to appoint a successor Mortgagee to act until such time, if any,
      as
      a successor shall have been appointed as above provided. The successor Mortgagee
      so appointed by such court shall immediately and without further act be
      superseded by any successor Mortgagee appointed as above provided.

     

    (b) Any
      successor Mortgagee, however appointed, shall execute and deliver to the Owner
      and the predecessor Mortgagee an instrument accepting such appointment and
      assuming the obligations of the Mortgagee arising from and after the time of
      such appointment, and thereupon such successor Mortgagee, without further act,
      shall become vested with all the estates, properties, rights, powers and duties
      of the predecessor Mortgagee hereunder in the trust hereunder applicable to
      it
      with like effect as if originally named the Mortgagee herein; but nevertheless
      upon the written request of such successor Mortgagee, such predecessor Mortgagee
      shall execute and deliver an instrument transferring to such successor
      Mortgagee, upon the trusts herein expressed applicable to it, all the estates,
      properties, rights and powers of such predecessor Mortgagee, and such
      predecessor Mortgagee shall duly assign, transfer, deliver and pay over to
      such
      successor Mortgagee all monies or other property then held by such predecessor
      Mortgagee hereunder.

     

    (c) Any
      successor Mortgagee, however appointed, shall be a bank or trust company having
      its principal place of business in the Borough of Manhattan, City and State
      of
      New York; Chicago, Illinois; Hartford, Connecticut; Wilmington, Delaware; or
      Boston, Massachusetts and having (or whose obligations under the Operative
      Agreements are guaranteed by an affiliated entity having) a combined capital
      and
      surplus of at least $100,000,000, if there be such an institution willing,
      able
      and legally qualified to perform the duties of the Mortgagee hereunder upon
      reasonable or customary terms.

     

    (d) Any
      corporation into which the Mortgagee may be merged or converted or with which
      it
      may be consolidated, or any corporation resulting from any merger, conversion
      or
      consolidation to which the Mortgagee shall be a party, or any corporation to
      which substantially all the corporate trust business of the Mortgagee may be
      transferred, shall, subject to the terms of paragraph (c) of this Section 9.01,
      be a successor Mortgagee and the Mortgagee under this Trust Indenture without
      further act.

     

    SECTION
      9.02.  Appointment of Additional and
      Separate Trustees

     

    (a) Whenever
      (i) the Mortgagee shall deem it necessary or desirable in order to conform
      to
      any Law of any jurisdiction in which all or any part of the Collateral shall
      be
      situated or to make any claim or bring any suit with respect to or in connection
      with the Collateral, this Trust Indenture, any other Indenture Agreement, the
      Equipment Notes or any of the transactions contemplated by the Note Purchase
      Agreement, (ii) the Mortgagee shall be advised by counsel satisfactory to it
      that it is so necessary or prudent in the interests of the Note Holders (and
      the
      Mortgagee shall so advise the Owner), or (iii) the Mortgagee shall have been
      requested to do so by a Majority in Interest of Note Holders, then in any such
      case, the Mortgagee and, upon the written request of the Mortgagee, the Owner,
      shall execute and deliver an indenture supplemental hereto and such other
      instruments as may from time to time be necessary or advisable either (1) to
      constitute one or more bank or trust companies or one or 

    
      
        
        

      

      
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    more
      persons approved by the Mortgagee, either to act jointly with the Mortgagee
      as
      additional trustee or trustees of all or any part of the Collateral, or to
      act
      as separate trustee or trustees of all or any part of the Collateral, in each
      case with such rights, powers, duties and obligations consistent with this
      Trust
      Indenture as may be provided in such supplemental indenture or other instruments
      as the Mortgagee or a Majority in Interest of Note Holders may deem necessary
      or
      advisable, or (2) to clarify, add to or subtract from the rights, powers, duties
      and obligations theretofore granted any such additional or separate trustee,
      subject in each case to the remaining provisions of this Section 9.02. If the
      Owner shall not have taken any action requested of it under this Section 9.02(a)
      that is permitted or required by its terms within 15 days after the receipt
      of a
      written request from the Mortgagee so to do, or if an Event of Default shall
      have occurred and be continuing, the Mortgagee may act under the foregoing
      provisions of this Section 9.02(a) without the concurrence of the Owner, and
      the
      Owner hereby irrevocably appoints (which appointment is coupled with an
      interest) the Mortgagee, its agent and attorney-in-fact to act for it under
      the
      foregoing provisions of this Section 9.02(a) in either of such contingencies.
      The Mortgagee may, in such capacity, execute, deliver and perform any such
      supplemental indenture, or any such instrument, as may be required for the
      appointment of any such additional or separate trustee or for the clarification
      of, addition to or subtraction from the rights, powers, duties or obligations
      theretofore granted to any such additional or separate trustee. In case any
      additional or separate trustee appointed under this Section 9.02(a) shall die,
      become incapable of acting, resign or be moved, all the assets, property,
      rights, powers, trusts, duties and obligations of such additional or separate
      trustee shall revert to the Mortgagee until a successor additional or separate
      trustee is appointed as provided in this Section 9.02(a).

     

    (b) No
      additional or separate trustee shall be entitled to exercise any of the rights,
      powers, duties and obligations conferred upon the Mortgagee in respect of the
      custody, investment and payment of monies and all monies received by any such
      additional or separate trustee from or constituting part of the Collateral
      or
      otherwise payable under any Operative Agreement to the Mortgagee shall be
      promptly paid over by it to the Mortgagee. All other rights, powers, duties
      and
      obligations conferred or imposed upon any additional or separate trustee shall
      be exercised or performed by the Mortgagee and such additional or separate
      trustee jointly except to the extent that applicable Law of any jurisdiction
      in
      which any particular act is to be performed renders the Mortgagee incompetent
      or
      unqualified to perform such act, in which event such rights, powers, duties
      and
      obligations (including the holding of title to all or part of the Collateral
      in
      any such jurisdiction) shall be exercised and performed by such additional
      or
      separate trustee. No additional or separate trustee shall take any discretionary
      action except on the instructions of the Mortgagee or a Majority in Interest
      of
      Note Holders. No trustee hereunder shall be personally liable by reason of
      any
      act or omission of any other trustee hereunder, except that the Mortgagee shall
      be liable for the consequences of its lack of reasonable care in selecting,
      and
      the Mortgagee’s own actions in acting with, any additional or separate trustee.
      Each additional or separate trustee appointed pursuant to this Section 9.02
      shall be subject to, and shall have the benefit of Articles V through IX and
      Article XI hereof insofar as they apply to the Mortgagee. The powers of any
      additional or separate trustee appointed pursuant to this Section 9.02 shall
      not
      in any case exceed those of the Mortgagee hereunder.

     

    (c) If
      at any
      time the Mortgagee shall deem it no longer necessary or in order to conform
      to
      any such Law or take any such action or shall be advised by such counsel

    
      
        
        

      

      
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    that
      it
      is no longer so necessary or desirable in the interest of the Note Holders,
      or
      in the event that the Mortgagee shall have been requested to do so in writing
      by
      a Majority in Interest of Note Holders, the Mortgagee and, upon the written
      request of the Mortgagee, the Owner, shall execute and deliver an indenture
      supplemental hereto and all other instruments and agreements necessary or proper
      to remove any additional or separate trustee. The Mortgagee may act on behalf
      of
      the Owner under this Section 9.02(c) when and to the extent it could so act
      under Section 9.02(a) hereof.

     

    ARTICLE
      X

     

    SUPPLEMENTS
      AND AMENDMENTS TO THIS TRUST INDENTURE

     

    AND
      OTHER DOCUMENTS

     

    SECTION
      10.01.  Instructions of Majority;
      Limitations

     

    (a) The
      Mortgagee agrees with the Note Holders that it shall not enter into any
      amendment, waiver or modification of, supplement or consent to this Trust
      Indenture, or any other Operative Agreement to which it is a party, unless
      such
      supplement, amendment, waiver, modification or consent is consented to in
      writing by a Majority in Interest of Note Holders, but upon the written request
      of a Majority in Interest of Note Holders, the Mortgagee shall from time to
      time
      enter into any such supplement or amendment, or execute and deliver any such
      waiver, modification or consent, as may be specified in such request and as
      may
      be (in the case of any such amendment, supplement or modification), to the
      extent such agreement is required, agreed to by the Owner; provided,
      however,
      that
      (1) without the consent of each holder of an affected Equipment Note then
      outstanding, the Policy Provider and the Liquidity Providers, no such amendment,
      waiver or modification of the terms of, or consent under, any thereof, shall
      (i)
      modify any of the provisions of this Section 10.01, or of Article II or III
      or
      Section 5.01, 5.02(c), 5.02(d), or 6.02 hereof, the definitions of “Event of
      Default,” “Special Default,” “Default,” “Majority in Interest of Note Holders,”
“Break Amount,” “Premium” or “Note Holder,” or the percentage of Note Holders
      required to take or approve any action hereunder, (ii) reduce the amount, or
      change the time of payment or method of calculation of any amount, of Original
      Amount, Break Amount, if any, Premium, if any, or interest with respect to
      any
      Equipment Note, (iii) reduce, modify or amend any indemnities in favor of the
      Mortgagee or the Note Holders (except that the Mortgagee may consent to any
      waiver or reduction of an indemnity payable to it), or the other Indenture
      Indemnitees or (iv) permit the creation of any Lien on the Collateral or any
      part thereof other than Permitted Liens or deprive any Note Holder of the
      benefit of the Lien of this Trust Indenture on the Collateral, except as
      provided in connection with the exercise of remedies under Article V hereof;
      and
      (2) notwithstanding the foregoing, upon the written request of the Required
      Subordinated Holders, the Mortgagee shall from time to time enter into an
      amendment, supplement or waiver of the Subordinated Security Provisions
      contained in the Collateral Maintenance Agreement as may be agreed by the Owner.
      Notwithstanding the foregoing, without the consent of the affected Liquidity
      Provider or Policy Provider neither the Owner nor the Mortgagee shall enter
      into
      any amendment, waiver or modification of, supplement or consent to this Trust
      Indenture or the other Operative Agreements 

    
      
        
        

      

      
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    which
      shall reduce, modify or amend any indemnities in favor of or other amounts
      payable to such Liquidity Provider or Policy Provider. 

     

    (b) The
      Owner
      and the Mortgagee may enter into one or more agreements supplemental hereto
      without the consent of any Note Holder for any of the following purposes: (i)
      (a) to cure any defect or inconsistency herein or in the Equipment Notes, or
      to
      make any change not inconsistent with the provisions hereof (provided
      that
      such change does not adversely affect the interests of any Note Holder in its
      capacity solely as Note Holder) or (b) to cure any ambiguity or correct any
      mistake; (ii) to evidence the succession of another party as the Owner in
      accordance with the terms hereof or to evidence the succession of a new trustee
      hereunder pursuant hereto, the removal of the trustee hereunder or the
      appointment of any co-trustee or co-trustees or any separate or additional
      trustee or trustees; (iii) to convey, transfer, assign, mortgage or pledge
      any
      property to or with the Mortgagee or to make any other provisions with respect
      to matters or questions arising hereunder so long as such action shall not
      adversely affect the interests of the Note Holders in its capacity solely as
      Note Holder; (iv) to correct or amplify the description of any property at
      any
      time subject to the Lien of this Trust Indenture or better to assure, convey
      and
      confirm unto the Mortgagee any property subject or required to be subject to
      the
      Lien of this Trust Indenture; (v) to add any location as a Designated Location;
      (vi) to add to the covenants of the Owner for the benefit of the Note
      Holders, or to surrender any rights or power herein conferred upon the Owner;
      (vii) to add to the rights of the Note Holders; and (viii) to include on
      the Equipment Notes any legend as may be required by Law.

     

    SECTION
      10.02.  Mortgagee
      Protected

     

    If,
      in
      the opinion of the institution acting as Mortgagee hereunder, any document
      required to be executed by it pursuant to the terms of Section 10.01 hereof
      affects any right, duty, immunity or indemnity with respect to such institution
      under this Trust Indenture, such institution may in its discretion decline
      to
      execute such document.

     

    SECTION
      10.03.  Documents Mailed to Note
      Holders

     

    Promptly
      after the execution by the Owner or the Mortgagee of any document entered into
      pursuant to Section 10.01 hereof, the Mortgagee shall mail, by first class
      mail,
      postage prepaid, a copy thereof to Owner (if not a party thereto), to the Policy
      Provider and to each Note Holder at its address last set forth in the Equipment
      Note Register, but the failure of the Mortgagee to mail such copies shall not
      impair or affect the validity of such document.

     

    SECTION
      10.04.  No Request Necessary for Trust
      Indenture Supplement

     

    No
      written request or consent of the Note Holders pursuant to Section 10.01 hereof
      shall be required to enable the Mortgagee to execute and deliver a Trust
      Indenture Supplement specifically required by the terms hereof.

    
      
        
        

      

      
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    ARTICLE
      XI

     

    MISCELLANEOUS

     

    SECTION
      11.01.  Termination of Trust
      Indenture

     

    Upon
      (or
      at any time after) payment in full of the Original Amount of, Premium, if any,
      Break Amount, if any, and interest on and all other amounts due under all
      Equipment Notes and provided that there shall then be no other Secured
      Obligations due to the Indenture Indemnitees, the Note Holders and the Mortgagee
      hereunder or under the Note Purchase Agreement, the Collateral Maintenance
      Agreement or other Operative Agreement, the Owner shall direct the Mortgagee
      to
      execute and deliver to or as directed in writing by the Owner an appropriate
      instrument releasing the Pledged Spare Parts and all other Collateral from
      the
      Lien of the Trust Indenture and the Mortgagee shall execute and deliver such
      instrument as aforesaid; provided,
      however,
      that
      this Trust Indenture and the trusts created hereby shall earlier terminate
      and
      this Trust Indenture shall be of no further force or effect upon any sale or
      other final disposition by the Mortgagee of all property constituting part
      of
      the Collateral and the final distribution by the Mortgagee of all monies or
      other property or proceeds constituting part of the Collateral in accordance
      with the terms hereof. Except as aforesaid otherwise provided, this Trust
      Indenture and the trusts created hereby shall continue in full force and effect
      in accordance with the terms hereof.

     

    SECTION
      11.02.  No Legal Title to Collateral in
      Note Holders

     

    No
      holder
      of an Equipment Note shall have legal title to any part of the Collateral.
      No
      transfer, by operation of law or otherwise, of any Equipment Note or other
      right, title and interest of any Note Holder in and to the Collateral or
      hereunder shall operate to terminate this Trust Indenture or entitle such holder
      or any successor or transferee of such holder to an accounting or to the
      transfer to it of any legal title to any part of the Collateral.

     

    SECTION
      11.03.  Sale of Collateral by Mortgagee
      Is Binding

     

    Any
      sale
      or other conveyance of the Collateral, or any part thereof (including any part
      thereof or interest therein), by the Mortgagee made pursuant to the terms of
      this Trust Indenture shall bind the Note Holders and shall be effective to
      transfer or convey all right, title and interest of the Mortgagee, the Owner
      and
      such holders in and to such Collateral or part thereof. No purchaser or other
      grantee shall be required to inquire as to the authorization, necessity,
      expediency or regularity of such sale or conveyance or as to the application
      of
      any sale or other proceeds with respect thereto by the Mortgagee.

     

    SECTION
      11.04.  Trust Indenture for Benefit of
      Owner, Mortgagee, Note Holders and the other Indenture
      Indemnitees

     

    Nothing
      in this Trust Indenture, whether express or implied, shall be construed to
      give
      any person other than the Owner, the Mortgagee, the Note Holders and the other
      Indenture Indemnitees, any legal or equitable right, remedy or claim under
      or in
      respect of this Trust Indenture.

    
      
        
        

      

      
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    SECTION
      11.05.  Notices

     

    Unless
      otherwise expressly specified or permitted by the terms hereof, all notices,
      requests, demands, authorizations, directions, consents, waivers or documents
      provided or permitted by this Trust Indenture to be made, given, furnished
      or
      filed shall be in writing, personally delivered or mailed by certified mail,
      postage prepaid, or by facsimile or confirmed telex, and (i) if to the Owner,
      addressed to it at 1600 Smith Street, Houston, Texas 77002, Attention:
      Treasurer, facsimile number (713) 324-2447, (ii) if to Mortgagee, addressed
      to
      it at its office at Rodney Square North, 1100 North Market Street, Wilmington,
      Delaware 19890, Attention: Corporate Trust Administration, facsimile number
      (302) 651-8882, (iii) if to any Note Holder or any Indenture Indemnitee,
      addressed to such party at such address as such party shall have furnished
      by
      notice to the Owner and the Mortgagee, or, until an address is so furnished,
      addressed to the address of such party (if any) set forth on Schedule 1 to
      the Note Purchase Agreement or in the Equipment Note Register. Whenever any
      notice in writing is required to be given by the Owner or the Mortgagee or
      any
      Note Holder to any of the other of them, such notice shall be deemed given
      and
      such requirement satisfied when such notice is received, or if such notice
      is
      mailed by certified mail, postage prepaid, three Business Days after being
      mailed, addressed as provided above. Any party hereto may change the address
      to
      which notices to such party will be sent by giving notice of such change to
      the
      other parties to this Trust Indenture.

     

    SECTION
      11.06.  Severability

     

    Any
      provision of this Trust Indenture which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof. Any such prohibition or unenforceability in any particular
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

    SECTION
      11.07.  No Oral Modification or
      Continuing Waivers

     

    No
      term
      or provision of this Trust Indenture or the Equipment Notes may be changed,
      waived, discharged or terminated orally, but only by an instrument in writing
      signed by the Owner and the Mortgagee, in compliance with Section 10.01 hereof.
      Any waiver of the terms hereof or of any Equipment Note shall be effective
      only
      in the specific instance and for the specific purpose given.

     

    SECTION
      11.08.  Successors and
      Assigns

     

    All
      covenants and agreements contained herein shall be binding upon, and inure
      to
      the benefit of, each of the parties hereto and the permitted successors and
      assigns of each, all as herein provided. Any request, notice, direction,
      consent, waiver or other instrument or action by any Note Holder shall bind
      the
      successors and assigns of such holder. Each Note Holder by its acceptance of
      an
      Equipment Note agrees to be bound by this Trust Indenture and all provisions
      of
      the Operative Agreements applicable to a Note Holder.

    
      
        
        

      

      
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    SECTION
      11.09.  Headings

     

    The
      headings of the various Articles and sections herein and in the table of
      contents hereto are for convenience of reference only and shall not define
      or
      limit any of the terms or provisions hereof.

     

    SECTION
      11.10.  Normal Commercial
      Relations

     

    Anything
      contained in this Trust Indenture to the contrary notwithstanding, Mortgagee
      may
      conduct any banking or other financial transactions, and have banking or other
      commercial relationships, with Owner, fully to the same extent as if this Trust
      Indenture were not in effect, including without limitation the making of loans
      or other extensions of credit to Owner for any purpose whatsoever, whether
      related to any of the transactions contemplated hereby or
      otherwise.

     

    SECTION
      11.11.  Governing Law; Counterpart
      Form

     

    THIS
      TRUST INDENTURE 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. THIS TRUST INDENTURE IS BEING DELIVERED
      IN THE STATE OF NEW YORK. This Trust Indenture may be executed by the parties
      hereto in separate counterparts (or upon separate signature pages bound together
      into one or more 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
      11.12.  Voting By Note
      Holders

     

    All
      votes
      of the Note Holders shall be governed by a vote of a Majority in Interest of
      Note Holders, except as otherwise provided herein.

     

    SECTION
      11.13.  Bankruptcy

     

    It
      is the
      intention of the parties that the Mortgagee shall be entitled to the benefits
      of
      Section 1110 with respect to the right to take possession of the Pledged Spare
      Parts and to enforce any of its other rights or remedies as provided herein
      in
      the event of a case under Chapter 11 of the Bankruptcy Code in which Owner
      is a
      debtor, and in any instance where more than one construction is possible of
      the
      terms and conditions hereof or any other pertinent Operative Agreement, each
      such party agrees that a construction which would preserve such benefits shall
      control over any construction which would not preserve such
      benefits.

     

    SECTION
      11.14.  Agreement as to Fair Market
      Value

     

    The
      Owner
      and the Mortgagee acknowledge that the use of Fair Market Value herein or in
      the
      other Operative Agreements is strictly and solely for convenience in
      establishing the amount of Collateral and any substitutions therefor under
      the
      Operative Agreements. Accordingly, the Fair Market Value of any Collateral
      subjected to the Lien of a Collateral 

    
      
        
        

      

      
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    Agreement
      is not an indication of and shall not be deemed an agreement by the parties
      as
      the basis for valuation of such Collateral for purposes of determining the
      value
      of the Mortgagee’s secured claim against the Owner, adequate protection of the
      Mortgagee’s interest in the Collateral or for any other purpose in any
      bankruptcy, receivership or insolvency proceeding involving the Owner or any
      remedial action brought by the Mortgagee or Collateral Agent except to the
      extent such valuations are mandated by applicable law, or any court with
      jurisdiction over such proceedings, in either case without regard to the use
      of
      the concept of Fair Market Value by the parties hereto.

     

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

     

    
      	 	 	 
	 	
              CONTINENTAL
                AIRLINES, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      	
            	 	 
	 	
              
                WILMINGTON
                  TRUST COMPANY, as Mortgagee

              

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

    

    
      
        
        

      

      
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    ANNEX
      A

     

    DEFINITIONS

     

    GENERAL
      PROVISIONS

     

    (a) In
      each
      Operative Agreement, unless otherwise expressly provided, a reference
      to:

     

    
      	 	
              (i)

            	
              each
                of “Owner,” “Mortgagee,” “Note Holder” or any other person includes,
                without prejudice to the provisions of any Operative Agreement, any
                successor in interest to it and any permitted transferee, permitted
                purchaser or permitted assignee of
                it;

            

    

     

    
      	 	
              (ii)

            	
              words
                importing the plural include the singular and words importing the
                singular
                include the plural;

            

    

     

    
      	 	
              (iii)

            	
              any
                agreement, instrument or document, or any annex, schedule or exhibit
                thereto, or any other part thereof, includes, without prejudice to
                the
                provisions of any Operative Agreement, that agreement, instrument
                or
                document, or annex, schedule or exhibit, or part, respectively, as
                amended, modified or supplemented from time to time in accordance
                with its
                terms and in accordance with the Operative Agreements, and any agreement,
                instrument or document entered into in substitution or replacement
                therefor;

            

    

     

    
      	 	
              (iv)

            	
              any
                provision of any Law includes any such provision as amended, modified,
                supplemented, substituted, reissued or reenacted prior to the Closing
                Date, and thereafter from time to
                time;

            

    

     

    
      	 	
              (v)

            	
              the
                words “Agreement,” “this Agreement,” “hereby,” “herein,” “hereto,”
                “hereof” and “hereunder” and words of similar import when used in any
                Operative Agreement refer to such Operative Agreement as a whole
                and not
                to any particular provision of such Operative
                Agreement;

            

    

     

    
      	 	
              (vi)

            	
              the
                words “including,” “including, without limitation,” “including, but not
                limited to,” and terms or phrases of similar import when used in any
                Operative Agreement, with respect to any matter or thing, mean including,
                without limitation, such matter or thing; and

            

    

     

    
      	 	
              (vii)

            	
              a
                “Section,” an “Exhibit,” an “Annex” or a “Schedule” in any Operative
                Agreement, or in any annex thereto, is a reference to a section of,
                or an
                exhibit, an annex or a schedule to, such Operative Agreement or such
                annex, respectively.

            

    

     

    (b) Each
      exhibit, annex and schedule to each Operative Agreement is incorporated in,
      and
      shall be deemed to be a part of, such Operative Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
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    (c) Unless
      otherwise defined or specified in any Operative Agreement, all accounting terms
      therein shall be construed and all accounting determinations thereunder shall
      be
      made in accordance with GAAP.

     

    (d) Headings
      used in any Operative Agreement are for convenience only and shall not in any
      way affect the construction of, or be taken into consideration in interpreting,
      such Operative Agreement.

     

    (e) For
      purposes of each Operative Agreement, the occurrence and continuance of a
      Default or Event of Default referred to in Section 5.01(v),(vi) or (vii)
      shall not be deemed to prohibit the Owner from taking any action or exercising
      any right that is conditioned on no Special Default, Default or Event of Default
      having occurred and be continuing if such Special Default, Default or Event
      of
      Default consists of the institution of reorganization proceedings with respect
      to Owner under Chapter 11 of the Bankruptcy Code and the trustee or
      debtor-in-possession in such proceedings shall have agreed to perform its
      obligations under the Trust Indenture with the approval of the applicable court
      and thereafter shall have continued to perform such obligations in accordance
      with Section 1110.

     

    DEFINED
      TERMS

     

    “Above-Cap
      Liquidity Agreement”
means
      the ISDA Master Agreement, the Schedule to such ISDA Master Agreement and the
      Class G Above-Cap Liquidity Confirmation that supplements such ISDA Master
      Agreement, each dated as of the Issuance Date and between the Above-Cap
      Liquidity Provider and the Subordination Agent, on behalf of the Class G
      Pass Through Trustee, provided
      that,
      for purposes of any obligation of Owner, no amendment, modification or
      supplement to, or substitution or replacement of, any such instrument shall
      be
      effective unless consented to by Owner.

     

    “Above-Cap
      Liquidity Provider”
means
      Morgan Stanley Capital Services Inc., as Above-Cap Liquidity Provider under
      the
      Above-Cap Liquidity Agreement.

     

    “Act”
means
      part A of subtitle VII of title 49, United States Code.

     

    “Actual
      Knowledge”
means
      (a) as it applies to Mortgagee, actual knowledge of a responsible officer in
      the
      Corporate Trust Office, and (b) as it applies to Owner, actual knowledge of
      a
      Vice President or more senior officer of Owner or any other officer of Owner
      having responsibility for the transactions contemplated by the Operative
      Agreements; provided
      that
      each of Owner and Mortgagee shall be deemed to have “Actual Knowledge” of any
      matter as to which it has received notice from Owner, any Note Holder or
      Mortgagee, such notice having been given pursuant to Section 11.05 of the Trust
      Indenture.

     

    “Additional
      Insureds”
is
      defined in paragraph (i) of Section C to Annex B of the Trust
      Indenture.

     

    “Additional
      Parts”
is
      defined in Section 3.1(a)(i) of the Collateral Maintenance
      Agreement.

    
      
        
        

      

      
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    “Affiliate”
means,
      with respect to any person, any other person directly or indirectly controlling,
      controlled by or under common control with such person. For purposes of this
      definition, “control” means 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 and
      “controlling,” “controlled by” and “under common control with” have correlative
      meanings.

     

    “Aircraft”
means
      any contrivance invented, used, or designed to navigate, or fly in, the
      air.

     

    “Annual
      Methodology”
means,
      in determining an opinion as to the Fair Market Value of the Collateral, taking
      at least the following actions: (i) reviewing the Parts Inventory Report
      prepared as of the applicable Valuation Date; (ii) reviewing the Independent
      Appraiser’s internal value database for values applicable to Qualified Spare
      Parts included in the Collateral; (iii) developing a representative sampling
      of
      a reasonable number of the different Qualified Spare Parts included in
      Collateral for which a market check will be conducted; (iv) checking other
      sources, such as manufacturers, other airlines, U.S. government procurement
      data
      and airline parts pooling price lists, for current market prices of the sample
      parts referred to in clause (iii); (v) establishing an assumed ratio of
      Serviceable Parts to Unserviceable Parts as of the applicable Valuation Date
      based upon information provided by the Owner and the Independent Appraiser’s
      limited physical review of the Collateral referred to in the following clause
      (vi); (vi) visiting at least two locations selected by the Independent
      Appraiser where the Pledged Spare Parts are kept by the Owner (neither of which
      was visited for purposes of the last appraisal under Section 2.1 or 2.2 of
      the
      Collateral Maintenance Agreement, whichever was most recent), provided
      that at
      least one such location shall be one of the top three locations at which the
      Owner keeps the largest number of Pledged Spare Parts, to conduct a limited
      physical inspection of the Collateral; (vii) conducting a limited review of
      the inventory reporting system applicable to the Pledged Spare Parts, including
      checking information reported in such system against information determined
      through physical inspection pursuant to the preceding clause (vi); and
      (viii) reviewing a sampling of the Spare Parts Documents (including
      tear-down reports). 

     

    “Annual
      Valuation Date”
is
      defined in Section 2.1 of the Collateral Maintenance
      Agreement.

     

    “Appliance”
means
      an instrument,
      equipment, apparatus, a part, an appurtenance, or an accessory used, capable
      of
      being used, or intended to be used, in operating or controlling Aircraft in
      flight, including a parachute, communication equipment, and another mechanism
      installed in or attached to Aircraft during flight, and not a part of an
      Aircraft, Engine, or Propeller.

     

    “Applicable
      Margin”
means
      0.350%, in the case of the Series G Equipment Notes and 3.125%, in the case
      of the Series B Equipment Notes.

     

    “Applicable
      Period”
is
      defined in Section 3.2
      of
      the Collateral Maintenance Agreement.

    
      
        
        

      

      
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    “Appraisal
      Compliance Report”
means,
      as of any date, a report providing information relating to the calculation
      of
      the Collateral Ratio, the Subordinated Collateral Ratio and the Rotable Ratio,
      which shall be substantially in the form of Appendix I to the Collateral
      Maintenance Agreement.

     

    “Appraised
      Value”
means,
      with respect to any Collateral, the Fair Market Value of such Collateral as
      most
      recently determined pursuant to (i) the report attached as Appendix II to the
      Prospectus Supplement or (ii) Article 2 and, if applicable,
      Section 3.1 of the Collateral Maintenance Agreement.

     

    “Bankruptcy
      Code”
means
      the United States Bankruptcy Code, 11 U.S.C. Sections 101 et
      seq.

     

    “Basic
      Pass Through Trust Agreement”
means
      the Pass Through Trust Agreement, dated September 25, 1997, between Owner and
      Pass Through Trustee, but does not include any Trust Supplement.

     

    “Beneficial
      Owner”
when
      used in relation to an Equipment Note means a Person that, by reason of direct
      ownership, contract, share ownership or otherwise, has the right to receive
      or
      participate in receiving, directly or indirectly, payments of principal,
      interest or Premium in respect of such Equipment Note; provided
      that a
      Person shall not be deemed to be a Beneficial Owner of an Equipment Note solely
      because another Person in which such a Person owns common stock or other equity
      securities is a registered holder or Beneficial Owner of such Equipment Note
      unless such Person is an Affiliate of such other Person.

     

    “Break
      Amount”
means,
      as of any date of payment, redemption or acceleration of any Equipment Note
      (the
“Applicable
      Date”),
      an
      amount determined by the Reference Agent on the date that is two Business Days
      prior to the Applicable Date pursuant to the formula set forth below;
provided,
      however,
      that no
      Break Amount will be payable (x) if the Break Amount, as calculated
      pursuant to the formula set forth below, is equal to or less than zero or
      (y) on or in respect of any Applicable Date that is a Payment Date (or, if
      such Payment Date is not a Business Day, the next succeeding Business
      Day).

     

    Break
      Amount = Z-Y

     

    Where:

     

    
      	 	
              X

            	
              =

            	
              with
                respect to any applicable Interest Period, the sum of (i) the amount
                of the outstanding principal amount of such Equipment Note as of
                the first
                day of the then applicable Interest Period plus (ii) interest payable
                thereon during such entire Interest Period at then effective
                LIBOR.

            

    

     

    
      	 	
              Y

            	
              =

            	
              X,
                discounted to present value from the last day of the then applicable
                Interest Period to the Applicable Date, using then effective LIBOR
                as the
                discount rate.

            

    

    
      
        
        

      

      
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              Z

            	
              =

            	
              X,
                discounted to present value from the last day of the then applicable
                Interest Period to the Applicable Date, using a rate equal to the
                applicable London interbank offered rate for a period commencing
                on the
                Applicable Date and ending on the last day of the then applicable
                Interest
                Period, determined by the Reference Agent as of two Business Days
                prior to
                the Applicable Date as the discount
                rate.

            

    

     

    “Business
      Day”
means
      any day (i) other than a Saturday, Sunday or other day on which commercial
      banks
      are authorized or required by law to close in New York, New York, Houston,
      Texas, or Wilmington, Delaware and (ii) which is also a day for trading by
      and
      between banks in the London interbank Eurodollar market.

     

    “Capped
      Interest Rate”
means
      a
      rate per annum equal to 10.35%.

     

    “Cash
      Collateral”
means
      cash and/or Investment Securities deposited or to be deposited with the
      Securities Intermediary in accordance with the provisions of Section 3.07 of
      the
      Trust Indenture.

     

    “Certificate
      Owner”
is
      defined in the Pass Through Trust Agreements.

     

    “Citizen
      of the United States”
is
      defined in 49 U.S.C. § 40102(a)(15).

     

    “Class B
      Pass Through Trust”
means
      the Continental Airlines Pass Through Trust 2006-1B.

     

    “Class G
      Pass Through Trust”
means
      the Continental Airlines Pass Through Trust 2006-1G.

     

    “Closing”
means
      the closing of the transactions contemplated by the Note Purchase
      Agreement.

     

    “Closing
      Date”
means
      the date on which the Closing occurs.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended; provided that, when used in
      relation to a Plan, “Code” shall mean the Internal Revenue Code of 1986 and any
      regulations and rulings issued thereunder, all as amended and in effect from
      time to time.

     

    “Collateral”
is
      defined in the Granting Clause of the Trust Indenture.

     

    “Collateral
      Agent”
means
      the Mortgagee and each other Person acting as agent on behalf of the Note
      Holders under any other Collateral Agreement.

     

    “Collateral
      Agreement”
means
      the Trust Indenture and any other agreement under which a security interest
      has
      been granted pursuant to Section 3.1(a)(ii) of the Collateral Maintenance
      Agreement.

    
      
        
        

      

      
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    “Collateral
      Maintenance Agreement”
means
      the Collateral Maintenance Agreement, dated as of the Issuance Date, among
      the
      Owner, the Mortgagee and the Policy Provider.

     

    “Collateral
      Ratio”
shall
      mean a percentage determined by dividing (i) the aggregate outstanding Original
      Amount of all Series G Equipment Notes minus the sum of the Cash Collateral
      held
      by the Securities Intermediary by (ii) the Fair Market Value of all Collateral
      (excluding any Cash Collateral), as set forth in the most recent Independent
      Appraiser’s Certificate delivered by the Owner pursuant to Article 2 of the
      Collateral Maintenance Agreement, as supplemented pursuant to Section 3.1
      of the Collateral Maintenance Agreement, if applicable.

     

    “Continental
      Cash Balance”
means
      the sum of (a) the amount of cash and cash equivalents that would have been
      shown on the balance sheet of Continental and its consolidated subsidiaries
      prepared in accordance with GAAP as of any Valuation Date, plus (b) the amount
      of marketable securities that would have been reflected on such balance sheet
      which had, as of such Valuation Date, a maturity of less than one year and
      which, but for their maturity, would have qualified to be reflected on such
      balance sheet as cash equivalents.

     

    “Controlling
      Party”
is
      defined in the Intercreditor Agreement.

     

    “Corporate
      Trust Office”
means
      the principal office of Mortgagee located at Mortgagee’s address for notices
      under the Note Purchase Agreement or such other office at which Mortgagee’s
      corporate trust business shall be administered which Mortgagee shall have
      specified by notice in writing to Owner and each Note Holder.

     

    “Debt
      Balance”
means
      110% of the outstanding Original Amount of the Equipment Notes.

     

    “Debt
      Rate”
means
      (i) for purposes of interest on the Equipment Notes, in the case of the
      first Interest Period, the Initial Period Debt Rate (as defined in
      Schedule 2 to the Note Purchase Agreement) and, in the case of any
      subsequent Interest Period, a rate per annum of LIBOR for such Interest Period,
      as determined pursuant to the Reference Agency Agreement, plus the Applicable
      Margin, provided
      that, if
      a Payment Default has occurred and is continuing on any Payment Date, the Debt
      Rate on the Series G Equipment Notes for the Interest Period commencing on
      such
      Payment Date shall not exceed the Capped Interest Rate, and
      (ii) for any other purpose, with respect to any period, the weighted
      average interest rate per annum during such period borne by the outstanding
      Equipment Notes, excluding any interest payable at the Payment Due
      Rate.

     

    “Default”
means
      any event or condition that with the giving of notice or the lapse of time
      or
      both would become an Event of Default.

    
      
        
        

      

      
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    “Designated
      Locations”
means
      the locations in the U.S. designated from time to time by the Owner at which
      the
      Pledged Spare Parts may be maintained by or on behalf of the Owner, which
      initially shall be the locations set forth on Schedule I to the Trust Indenture
      and shall include the additional locations designated by the Owner pursuant
      to
      Section 4.04(b) of the Trust Indenture.

     

    “Dollars,”
      “United
      States Dollars”
or
      “$”
means
      the lawful currency of the United States.

     

    “DOT”
means
      the Department of Transportation of the United States or any Government Entity
      succeeding to the functions of such Department of Transportation.

     

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

     

    “Eligible
      Institution”
means
      the corporate trust department of (a) Wilmington Trust Company, acting solely
      in
      its capacity as a “securities intermediary” (as defined in Section 8-102(a)(14)
      of the UCC), or (b) a depository institution organized under the laws of the
      United States of America or any one of the states thereof or the District of
      Columbia (or any U.S. branch of a foreign bank), which has a long-term unsecured
      debt rating from Moody’s and Standard & Poor’s of at least A-3 or its
      equivalent.

     

    “Engine”
means
      an engine used, or intended to be used, to propel an Aircraft, including a
      part,
      appurtenance, and accessory of the Engine, except a Propeller.

     

    “Equipment
      Note Register”
is
      defined in Section 2.07 of the Trust Indenture.

     

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

     

    “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.

     

    “Event
      of Default”
is
      defined in Section 5.01 of the Trust Indenture.

    
      
        
        

      

      
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    “Event
      of Loss”
means
      (i) the loss of any of the Pledged Spare Parts or of the use thereof due to
      destruction, damage beyond economic repair or rendition of any of the Pledged
      Spare Parts permanently unfit for normal use by Owner for any reason whatsoever
      (other than the use of Expendables in the Owner’s operations); (ii) any damage
      to any of the Pledged Spare Parts which results in the receipt of insurance
      proceeds with respect to such Pledged Spare Parts on the basis of an actual
      or
      constructive loss; (iii) the loss of possession of any of the Pledged Spare
      Parts by the Owner for ninety (90) consecutive days (or, if earlier, the date
      on
      which the Owner has confirmed to the Mortgagee in writing that the Owner cannot
      recover such Pledged Spare Parts) as a result of the theft or disappearance
      of
      such Pledged Spare Parts; or (iv) any seizure, condemnation, confiscation,
      taking or requisition (including loss of title) of any of the Pledged Spare
      Parts by any Government Entity or purported Government Entity (other than a
      requisition of use by the U.S. Government) for a period exceeding
      180 consecutive days.

     

    “Excluded
      Parts”
means
      Spare Parts and Appliances held by the Owner at a location not a Designated
      Location.

     

    “Existing
      Securities”
means
      the Floating Rate Secured Notes due 2007 and the Floating Rate Secured
      Subordinated Notes due 2007 issued by Owner.

     

    “Existing
      Security Agent”
means
      WTC, in its capacity as Security Agent under the Existing Security
      Agreement.

     

    “Existing
      Security Agreement”
means
      the Spare Parts Security Agreement, dated as of December 6, 2002, between
      the Owner and Wilmington Trust Company, as security agent.

     

    “Existing
      Security Release”
means
      a
      release in substantially the form of Exhibit E to the Note Purchase
      Agreement.

     

    “Existing
      Trustee”
means
      WTC, in its capacity as Trustee with respect to the Existing
      Securities.

     

    “Expendables”
means
      Qualified Spare Parts other than Rotables.

     

    “Expenses”
means
      any and all liabilities, obligations, losses, damages, settlements, penalties,
      claims, actions, suits, costs, expenses and disbursements (including, without
      limitation, reasonable fees and disbursements of legal counsel, accountants,
      appraisers, inspectors or other professionals, and costs of
      investigation).

     

    “FAA”
means
      the Federal Aviation Administration of the United States or any Government
      Entity succeeding to the functions of such Federal Aviation
      Administration.

     

    “FAA
      Filed Documents”
means
      the Trust Indenture and the Existing Security Release.

     

    “FAA
      Regulations”
means
      the Federal Aviation Regulations issued or promulgated pursuant to the Act
      from
      time to time.

    
      
        
        

      

      
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    “Fair
      Market Value”
means,
      with respect to any Collateral, its fair market value determined on the basis
      of
      a hypothetical sale negotiated in an arm’s length free market transaction
      between a willing and able seller and a willing and able buyer, neither of
      whom
      is under undue pressure to complete the transaction, under then current market
      conditions, provided that cash shall be valued at its Dollar
      amount.

     

    “Financing
      Statements”
means,
      collectively, (a) UCC-1 (and, where appropriate, UCC-3) financing
      statements covering the Collateral, by Owner, as debtor, showing Mortgagee
      as
      secured party, for filing in Delaware and each other jurisdiction that, in
      the
      opinion of Mortgagee, is necessary to perfect its Lien on the Collateral and
      (b) UCC-3 financing statements evidencing the termination of the Lien of
      the Existing Security Agreement, for filing in each jurisdiction that, in the
      opinion of Mortgagee, is reasonably desirable.

     

    “GAAP”
means
      generally accepted accounting principles as set forth in the statements of
      financial accounting standards issued by the Financial Accounting Standards
      Board of the American Institute of Certified Public Accountants, as such
      principles may at any time or from time to time be varied by any applicable
      financial accounting rules or regulations issued by the SEC and, with respect
      to
      any person, shall mean such principles applied on a basis consistent with prior
      periods except as may be disclosed in such person’s financial
      statements.

     

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

     

    “Indemnitee”
means
      (i) WTC and Mortgagee, (ii) each separate or additional trustee appointed
      pursuant to the Trust Indenture, (iii) the Subordination Agent, (iv) the
      Liquidity Providers, the Liquidity Guarantor and the Policy Provider, (v) the
      Pass Through Trustees, (vi) each Affiliate of the persons described in
      clauses (i) and (ii), (vii) each Affiliate of the persons described in clauses
      (iii), (iv) and (v), (viii) the respective directors, officers, employees,
      agents and servants of each of the persons described in clauses (i), (ii)
      and (vi), (ix) the respective directors, officers, employees, agents and
      servants of each of the persons described in clauses (iii), (iv), (v) and (vii),
      (x) the successors and permitted assigns of the persons described in clauses
      (i), (ii) and (viii), and (xi) the successors and permitted assigns of the
      persons described in clauses (iii), (iv), (v) and (ix); provided that the
      persons described in clauses (iii), (iv), (v), (vii), (ix) and (xi) are
      Indemnitees only for purposes of Section 8.1 of the Note Purchase
      Agreement.

     

    “Indenture
      Agreements”
means
      any contract, agreement or instrument from time to time assigned or pledged
      under the Trust Indenture.

     

    “Indenture
      Indemnitee”
means
      (i) WTC and the Mortgagee, (ii) each separate or additional trustee
      appointed pursuant to the Trust Indenture, (iii) the Subordination Agent,

    
      
        
        

      

      
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    (iv) each
      Liquidity Provider, the Liquidity Guarantor and the Policy Provider, (v) each
      Pass Through Trustee and (vi) each of the respective directors, officers,
      employees, agents and servants of each of the persons described in clauses
      (i)
      through (v) inclusive above.

     

    “Independent
      Appraiser”
means
      Simat, Helliesen & Eichner, Inc. or any other Person certified by ISTAT (or
      any successor organization thereto) selected by the Owner and approved by the
      Policy Provider (so long as the Policy Provider is the Controlling Party),
      such
      approval not to be unreasonably withheld or delayed, (i) engaged in a
      business which includes appraising Aircraft and assets relating to the operation
      and maintenance of Aircraft from time to time and (ii) who does not have any
      material financial interest in the Owner and is not connected with the Owner
      or
      any of its Affiliates as an officer, director, employee, promoter, underwriter,
      partner or person performing similar functions.

     

    “Independent
      Appraiser’s Certificate”
means
      a
      certificate signed by an Independent Appraiser and attached as Appendix II
      to
      the Prospectus Supplement or delivered thereafter pursuant to Article 2 or
      Section 3.1 of the Collateral Maintenance Agreement.

     

    “Intercreditor
      Agreement”
means
      that certain Intercreditor Agreement among the Pass Through Trustees, the
      Liquidity Providers, the Policy Provider and the Subordination Agent, dated
      as
      of the Issuance Date, provided that, for purposes of any obligation of Owner,
      no
      amendment, modification or supplement to, or substitution or replacement of,
      such Intercreditor Agreement shall be effective unless consented to by
      Owner.

     

    “Interest
      Period”
means
      (i) in the case of the first Interest Period, the period commencing on (and
      including) the Issuance Date and ending on (but excluding) the first Payment
      Date following the Issuance Date and (ii) in the case of each subsequent
      Interest Period, the period commencing on (and including) the last day of the
      immediately preceding Interest Period, and ending on (but excluding) the next
      Payment Date.

     

    “Interest
      Rate Determination Date”
means,
      with respect to any Interest Period, the second Business Day prior to the first
      day of such Interest Period.

     

    “Investment
      Security”
means
      (a) any bond, note or other obligation which is a direct obligation of or
      guaranteed by the U.S. or any agency thereof; (b) any obligation which is a
      direct obligation of or guaranteed by any state of the U.S. or any subdivision
      thereof or any agency of any such state or subdivision, and which has the
      highest rating published by Moody’s or Standard & Poor’s; (c) any commercial
      paper issued by a U.S. obligor and rated at least P-1 by Moody’s or A-1 by
      Standard & Poor’s; (d) any money market investment instrument relying upon
      the credit and backing of any bank or trust company which is a member of the
      Federal Reserve System and which has a combined capital (including capital
      reserves to the extent not included in capital) and surplus and undivided
      profits of not less than $250,000,000 (including the Mortgagee and its
      Affiliates if such requirements as to Federal Reserve System membership and
      combined capital and surplus and undivided profits are satisfied), including,
      without limitation, certificates of deposit, time and other interest-bearing
      deposits, bankers’ acceptances, commercial paper, loan and mortgage
      participation certificates and documented discount notes accompanied by
      irrevocable letters of credit and money market fund investing solely in
      securities 

    
      
        
        

      

      
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    backed
      by
      the full faith and credit of the United States; or (e) repurchase agreements
      collateralized by any of the foregoing.

     

    “IRS”
means
      the Internal Revenue Service of the United States or any Government Entity
      succeeding to the functions of such Internal Revenue Service.

     

    “Issuance
      Date”
means
      June 9, 2006.

     

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

     

    “LIBOR”
means,
      with respect to any period, LIBOR for such period as determined pursuant to
      the
      Reference Agency Agreement.

     

    “Lien”
means
      any mortgage, pledge, lien, charge, claim, encumbrance, lease or security
      interest affecting the title to or any interest in property.

     

    “Liquidity
      Facilities”
means,
      collectively, the Above-Cap Liquidity Agreement and the Primary Liquidity
      Facility.

     

    “Liquidity
      Guarantee”
means
      the Guaranty Agreement, dated as of the Issuance Date, providing for the
      guarantee by the Liquidity Guarantor of the obligations of the Above-Cap
      Liquidity Provider under the Above-Cap Liquidity Agreement.

     

    “Liquidity
      Guarantor”
means
      Morgan Stanley.

     

    “Liquidity
      Providers”
means,
      together, the Above-Cap Liquidity Provider and the Primary Liquidity
      Provider.

     

    “Loans”
is
      defined in Section 3.2 of the Collateral Maintenance
      Agreement.

     

    “Majority
      in Interest of Note Holders”
means
      as of a particular date of determination, the holders of a majority in aggregate
      unpaid Original Amount of all Equipment Notes outstanding as of such date
      (excluding any Equipment Notes held by Owner or any of its Affiliates (unless
      all Equipment Notes then outstanding shall be held by Owner or any Affiliate
      of
      Owner); provided
      that for
      the purposes of directing any action or casting any vote or giving any consent,
      waiver or instruction hereunder, any Note Holder of an Equipment Note or
      Equipment Notes may allocate, in such Note Holder’s sole discretion, any
      fractional portion of the principal amount of such Equipment Note or Equipment
      Notes in favor of or in opposition to any such action, vote, consent, waiver
      or
      instruction.

     

    “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, or its ability to observe or perform its obligations, liabilities
      and
      agreements under the Operative Agreements.

    
      
        
        

      

      
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    “Maximum
      Collateral Ratio”
means
      45.0%.

     

    “Maximum
      Subordinated Collateral Ratio”
means
      75.0%.

     

    “Minimum
      Rotable Ratio”
means
      150.0%.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc.

     

    “Mortgaged
      Property”
is
      defined in Section 3.03 of the Trust Indenture.

     

    “Mortgagee”
means
      Wilmington Trust Company, a Delaware banking corporation, not in its individual
      capacity but solely as mortgagee under the Trust Indenture.

     

    “Moves”
is
      defined in Section 3.2 of the Collateral Maintenance Agreement.

     

    “Net
      Worth”
means,
      for any person, the excess of its total assets over its total
      liabilities.

     

    “Non-U.S.
      Person”
means
      any Person other than a United States person, as defined in Section 7701(a)(30)
      of the Code.

     

    “Nonappraisal
      Compliance Report”
means
      a
      report providing information relating to compliance by the Owner with
      Section 2.3 of the Collateral Maintenance Agreement, which shall be
      substantially in the form of Appendix II to the Collateral Maintenance
      Agreement.

     

    “Note
      Holder”
means
      at any time each registered holder of one or more Equipment Notes.

     

    “Note
      Purchase Agreement”
means
      the Note Purchase Agreement, dated as of the Issuance Date among Owner, the
      Pass
      Through Trustees, the Subordination Agent and Mortgagee.

     

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

     

    “Officer’s
      Certificate”
means,
      in respect of any party to the Note Purchase Agreement, a certificate signed
      by
      the Chairman, the President, any Vice President (including those with varying
      ranks such as Executive, Senior, Assistant or Staff Vice President), the
      Treasurer or the Secretary of such party.

     

    “Operative
      Agreements”
means,
      collectively, the Note Purchase Agreement, the Collateral Maintenance Agreement,
      the Trust Indenture and the Equipment Notes.

     

    “Optional
      Redemption”
is
      defined in Section 2.11 of the Trust Indenture.

     

    “Original
      Amount,”
with
      respect to an Equipment Note, means the stated original principal amount of
      such
      Equipment Note and, with respect to all Equipment Notes, means the aggregate
      stated original principal amounts of all Equipment Notes.

    
      
        
        

      

      
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    “Owner”
is
      defined in the first paragraph of the Trust Indenture.

     

    “Owner
      Person”
means
      Owner, any lessee, assignee, successor or other user or person in possession
      of
      any Pledged Spare Part with or without color of right, or any Affiliate of
      any
      of the foregoing (excluding any Tax Indemnitee or any related Tax Indemnitee
      with respect thereto, or any person using or claiming any rights with respect
      to
      a Pledged Spare Part directly by or through any of the persons in this
      parenthetical).

     

    “Parts
      Inventory Report”
means,
      as of any date, a list identifying the Pledged Spare Parts by manufacturer’s
      part number and brief description and stating the quantity of each such part
      included in the Pledged Spare Parts as of such specified date.

     

    “Pass
      Through Agreements”
means
      the Pass Through Trust Agreements, the Intercreditor Agreement, the Reference
      Agency Agreement, the Liquidity Facilities, the Policy, the Policy Provider
      Agreement, the Policy Indemnification Agreement, the Policy Fee Letter and
      the
      Fee Letters referred to in Section 2.03 of the Primary Liquidity Facility,
      provided that no amendment, modification or supplement to, or substitution
      or
      replacement of, any such Fee Letter shall be effective for purposes of any
      obligation of Owner, unless consented to by Owner.

     

    “Pass
      Through Certificates”
means
      the pass through certificates issued by the Pass Through Trusts (and any other
      pass through certificates for which such pass through certificates may be
      exchanged).

     

    “Pass
      Through Trust”
means
      each of the two separate pass through trusts created under the Pass Through
      Trust Agreements.

     

    “Pass
      Through Trust Agreement”
means
      each of the two separate Trust Supplements, together in each case with the
      Basic
      Pass Through Trust Agreement, each dated as of the Issuance Date, by and between
      the Owner and a Pass Through Trustee, provided, that, for purposes of any
      obligation of Owner, no amendment, modification or supplement to, or
      substitution or replacement of, any such Agreement shall be effective unless
      consented to by Owner.

     

    “Pass
      Through Trustee”
means
      Wilmington Trust Company, a Delaware banking corporation, in its capacity as
      trustee under each Pass Through Trust Agreement.

     

    “Pass
      Through Trustee Agreements”
means
      the Pass Through Trust Agreements, the Note Purchase Agreement, and the
      Intercreditor Agreement.

     

    “Payment
      Date”
means
      each March 2, June 2, September 2 and December 2, commencing on September 2,
      2006.

     

    “Payment
      Default”
means
      a
      Default under Section 5.01(i) of the Trust Indenture.

     

    “Payment
      Due Rate”
means
      (a) with respect to (i) any payment made to a Note Holder under any
      Series of Equipment Notes, the Debt Rate applicable to such Series plus 2%
      and
      (ii) any other payment made under any Operative Agreement to any other
      Person, the Debt 

    
      
        
        

      

      
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    Rate
      applicable to such payment plus 2% or, if less, (b) the maximum rate
      permitted by applicable law.

     

    “Permitted
      Days”
is
      defined in Section 2.1 of the Collateral Maintenance
      Agreement.

     

    “Permitted
      Lease”
means
      a
      lease permitted under Section 4.04(d) of the Trust Indenture.

     

    “Permitted
      Lessee”
is
      defined in Section 4.04(d) of the Trust Indenture.

     

    “Permitted
      Lien”
means
      (a) the rights of Mortgagee under the Operative Agreements, or of any Permitted
      Lessee under any Permitted Lease; (b) Liens attributable to Mortgagee (both
      in
      its capacity as trustee under the Trust Indenture and in its individual
      capacity); (c) the rights of others under agreements or arrangements to the
      extent expressly permitted by the terms of Section 4.04 or 4.05 of the Trust
      Indenture; (d) Liens for Taxes of Owner (and its U.S. federal tax law
      consolidated group), or Liens for Taxes of any Tax Indemnitee (and its U.S.
      federal tax law consolidated group) for which Owner is obligated to indemnify
      such Tax Indemnitee under any of the Operative Agreements, in any such case
      either not yet due or being contested in good faith by appropriate proceedings
      so long as such Liens and such proceedings do not involve any material risk
      of
      the sale, forfeiture or loss of the Pledged Spare Parts or the interest of
      Mortgagee therein or impair the Lien of the Trust Indenture; (e) materialmen’s,
      mechanics’, workers’, repairers’, employees’ or other like Liens arising in the
      ordinary course of business for amounts the payment of which is either not
      yet
      delinquent for more than 60 days or is being contested in good faith by
      appropriate proceedings, so long as such Liens and such proceedings do not
      involve any material risk of the sale, forfeiture or loss of the Pledged Spare
      Parts or the interest of Mortgagee therein or impair the Lien of the Trust
      Indenture; (f) Liens arising out of any judgment or award against Owner (or
      any
      Permitted Lessee), so long as such judgment shall, within 60 days after the
      entry thereof, have been discharged or vacated, or execution thereof stayed
      pending appeal or shall have been discharged, vacated or reversed within 60
      days
      after the expiration of such stay, and so long as during any such 60 day period
      there is not, or any such judgment or award does not involve, any material
      risk
      of the sale, forfeiture or loss of the Pledged Spare Parts or the interest
      of
      Mortgagee therein or impair the Lien of the Trust Indenture; (g) the Lien
      created by the Existing Security Agreement, but only on the Closing Date; and
      (h) any other Lien with respect to which Owner (or any Permitted Lessee)
      shall have provided a bond, cash collateral or other security adequate in the
      reasonable opinion of Mortgagee.

     

    “Persons”
or
      “persons”
means
      individuals, firms, partnerships, joint ventures, trusts, trustees, Government
      Entities, organizations, associations, corporations, limited liability
      companies, government agencies, committees, departments, authorities and other
      bodies, corporate or incorporate, whether having distinct legal status or not,
      or any member of any of the same.

     

    “Plan”
means
      any employee benefit plan within the meaning of Section 3(3) of ERISA, or any
      plan within the meaning of Section 4975(e)(1) of the Code.

    
      
        
        

      

      
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    “Pledged
      Spare Parts”
has
      the
      meaning set forth in clause (1) of the Granting Clause of the Trust
      Indenture.

     

    “Policy”
means
      the certificate guaranty insurance policy issued pursuant to the Policy Provider
      Agreement.

     

    “Policy
      Fee Letter”
means
      the fee letter, dated as of the date of the Note Purchase Agreement, from the
      Policy Provider to Owner and the Subordination Agent setting forth the premium
      for and certain other fees and expenses in connection with the
      Policy.

     

    “Policy
      Indemnification Agreement”
means
      the Indemnification Agreement, dated as of the date of the Note Purchase
      Agreement, among the Policy Provider, the Owner and the
      Underwriter.

     

    “Policy
      Provider”
means
      Financial Guaranty Insurance Company.

     

    “Policy
      Provider Agreement”
means
      the Insurance and Indemnity Agreement among the Subordination Agent, Owner
      and
      the Policy Provider, dated as of the Issuance Date; provided
      that no
      amendment, modification or supplement to, or substitution or replacement of,
      such Agreement shall be effective for purposes of any obligation of Owner,
      unless consented to by Owner.

     

    “Policy
      Provider Default”
is
      defined in the Intercreditor Agreement.

     

    “Policy
      Provider Documents”
is
      defined in the Intercreditor Agreement, provided that no amendment, modification
      or supplement to, or substitution or replacement of, any document included
      in
      such definition shall be effective for purposes of any obligation of Owner,
      unless consented to by Owner.

     

    “Policy
      Provider Obligations”
means
      all reimbursement and other amounts, including, without limitation, fees,
      expenses and indemnities due to the Policy Provider under the Policy Provider
      Agreement, the Policy Fee Letter or the Note Purchase Agreement.

     

    “Premium”
means
      (i) with respect to any Series B Equipment Note redeemed pursuant to Section
      2.11 of the Trust Indenture, the following percentage of the principal amount
      of
      such Series B Equipment Note: (x) if redeemed on or after the third anniversary
      of the Issuance Date and before the fourth anniversary of the Issuance Date,
      4%;
      and (y) if redeemed on or after such fourth anniversary and before the
      fifth anniversary of the Issuance Date, 2%; provided
      that no
      Premium shall be payable under this clause (i) in connection with a redemption
      of any Equipment Note made by the Owner to satisfy the Maximum Collateral Ratio,
      Maximum Subordinated Collateral Ratio or Minimum Rotable Ratio requirement
      pursuant to Section 3.1 of the Collateral Maintenance Agreement or in connection
      with a redemption required under Section 3.3 of the Collateral Maintenance
      Agreement, (ii) with respect to any Series G Equipment Note redeemed pursuant
      to
      Section 3.3 of the Collateral Maintenance Agreement prior to the third
      anniversary of the Issuance Date, 1% of the principal amount of such Series
      G
      Equipment Note and (iii) with respect to any Series B Equipment Note redeemed
      pursuant to Section 3.3 of the Collateral Maintenance Agreement (x) prior to
      the
      fourth anniversary of the 

    
      
        
        

      

      
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    Issuance
      Date, 4% of the principal amount of such Series B Equipment Note or (y) on
      or
      after such fourth anniversary and before the fifth anniversary of the Issuance
      Date, 2% of the principal amount of such Series B Equipment Note.

     

    “Primary
      Liquidity Facility”
means
      the Revolving Credit Agreement, dated as of the Issuance Date, between the
      Subordination Agent, as borrower, and the Primary Liquidity Provider,
provided
      that,
      for purposes of any obligation of Owner, no amendment, modification or
      supplement to, or substitution or replacement of, such Primary Liquidity
      Facility shall be effective unless consented to by Owner.

     

    “Primary
      Liquidity Provider”
means
      Morgan Stanley Bank, as “Primary Liquidity Provider” (as such term is defined in
      the Intercreditor Agreement).

     

    “Propeller”
      includes a part, appurtenance, and accessory of a propeller.

     

    “Prospectus
      Supplement”
means
      the final Prospectus Supplement, dated May 24, 2006, to the
      Prospectus, dated April 10, 2006, of the Owner relating to the offering of
      the
      Pass Through Certificates.

     

    “QIB”
is
      defined in Section 2.08 of the Trust Indenture.

     

    “Qualified
      Spare Parts”
has
      the
      meaning provided in clause (1) of the Granting Clause of the Trust
      Indenture.

     

    “Rating
      Agencies”
means,
      collectively, at any time, and with respect to a class of Pass Through
      Certificates, each nationally recognized rating agency which shall have been
      requested by the Owner to rate such class of Pass Through Certificates and
      which
      shall then be rating such class of Pass Through Certificates. The initial Rating
      Agencies for each class of Pass Through Certificates will be Moody’s and
      Standard & Poor’s.

     

    “Ratings
      Confirmation”
means,
      with respect to any action proposed to be taken, a written confirmation from
      each of the Rating Agencies with respect to the applicable class of Pass Through
      Certificates that such action would not result in (i) a reduction of the rating
      for such class of Pass Through Certificates below the then current rating for
      such class of Pass Through Certificates (such rating, in the case of the
      Class G Pass Through Certificates, as determined without regard to the
      Policy) or (ii) a withdrawal or suspension of the rating of such class of Pass
      Through Certificates.

     

    “Redemption
      Action”
means
      the sending of a notice of redemption pursuant to Section 2.12 of the Trust
      Indenture with respect to an Optional Redemption of Equipment Notes and the
      deposit of funds sufficient to pay the redemption price in full (including
      accrued interest and Premium, if any, but excluding Break Amount, if any, which
      shall be deposited on or prior to the scheduled redemption date) for such
      Optional Redemption.

     

    “Redemption
      Price”
is
      defined in Schedule 2 to the Note Purchase Agreement.

    
      
        
        

      

      
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    “Reference
      Agency Agreement”
means
      the Reference Agency Agreement dated as of the Issuance Date among WTC, as
      reference agent thereunder, the Subordination Agent and Owner.

     

    “Reference
      Agent”
is
      defined in the Reference Agency Agreement.

     

    “Required
      Subordinated Holders”
means
      the holders of a majority of the outstanding Original Amount of Series B
      Equipment Notes.

     

    “Rotable”
means
      a
      Qualified Spare Part that wears over time and can be repeatedly restored to
      a
      serviceable condition over a period approximating the life of the flight
      equipment to which it relates.

     

    “Rotable
      Part”
means
      a
      Spare Part or Appliance that wears over time and can be repeatedly restored
      to a
      serviceable condition over a period approximating the life of the flight
      equipment to which it relates.

     

    “Rotable
      Ratio”
shall
      mean a percentage determined by dividing (i) the Fair Market Value of the
      Rotables, as set forth in the most recent Independent Appraiser’s Certificate
      delivered by the Company pursuant to Article 2 of the Collateral Maintenance
      Agreement, as supplemented pursuant to Section 3.1 of the Collateral
      Maintenance Agreement, if applicable, by (ii) the aggregate principal
      amount of all outstanding Series G Equipment Notes minus the sum of the Cash
      Collateral held by the Mortgagee. 

     

    “Sales”
is
      defined in Section 3.2 of the Collateral Maintenance
      Agreement.

     

    “SEC”
means
      the Securities and Exchange Commission of the United States, or any Government
      Entity succeeding to the functions of such Securities and Exchange
      Commission.

     

    “Section
      1110”
means
      11 U.S.C. Section 1110 of the Bankruptcy Code or any successor or analogous
      section of the federal bankruptcy law in effect from time to time.

     

    “Section
      1110 Period”
means
      the continuous period of (i) 60 days specified in Section 1110(a)(2)(A) of
      the Bankruptcy Code (or such longer period, if any, agreed to under
      Section 1110(b) of the Bankruptcy Code), plus (ii) an additional period, if
      any, commencing with the trustee or debtor-in-possession in such proceeding
      entering into an agreement of the kind described in Section 1110(a)(2)(A) of
      the
      Bankruptcy Code and continuing until such time as such trustee or
      debtor-in-possession fails to perform its obligations thereunder such that
      the
      Mortgagee is entitled to take possession of the Pledged Spare Parts pursuant
      to
      the Trust Indenture.

     

    “Secured
      Obligations”
is
      defined in Section 2.06 of the Trust Indenture.

     

    “Securities
      Account”
is
      defined in Section 3.07 of the Trust Indenture.

     

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

    
      
        
        

      

      
        17

        
          

        

      

      
        BACK

      

    

     

    “Securities
      Intermediary”
is
      defined in Section 3.07 of the Trust Indenture.

     

    “Security”
means
      a
“security” as defined in Section 2(l) of the Securities Act.

     

    “Semiannual
      Methodology”
means
      the Annual Methodology, excluding actions referred to in clauses (iii) and
      (iv)
      of the definition of Annual Methodology.

     

    “Semiannual
      Valuation Date”
is
      defined in Section 2.2 of the Collateral Maintenance
      Agreement.

     

    “Series”
means
      any of Series G or Series B.

     

    “Series B”
or
      “Series B
      Equipment Notes”
means
      Equipment Notes issued under the Trust Indenture and designated as
“Series B” thereunder, in the Original Amount and maturity and bearing
      interest as specified in Section 2.02 of the Trust Indenture.

     

    “Series
      B Amount”
is
      defined in Section 2.1 of the Note Purchase Agreement.

     

    “Series
      G”
or
      “Series
      G Equipment Notes”
means
      Equipment Notes issued under the Trust Indenture and designated as “Series G”
thereunder, in the Original Amount and maturity and bearing interest as
      specified in Section 2.02 of the Trust Indenture.

     

    “Series
      G Amount”
is
      defined in Section 2.1 of the Note Purchase Agreement.

     

    “Serviceable
      Parts”
means
      Pledged Spare Parts in condition satisfactory for incorporation in, installation
      on, attachment or appurtenance to or use in an Aircraft, Engine or other
      Qualified Spare Part.

     

    “787
      Spare Parts”
means
      Spare Parts and Appliances first placed in service after October 22, 1994 that
      are appropriate for incorporation in, installation on, attachment or
      appurtenance to, or use in, a Boeing model 787 Aircraft or any Engine utilized
      on any such Aircraft.

     

    “Spare
      Part”
means
      an accessory, appurtenance, or part of an Aircraft (except an Engine or
      Propeller), Engine (except a Propeller), Propeller, or Appliance, that is to
      be
      installed at a later time in an Aircraft, Engine, Propeller or
      Appliance.

     

    “Spare
      Parts Documents”
has
      the
      meaning set forth in clause (6) of the Granting Clause of the Trust
      Indenture.

     

    “Special
      Default”
means
      (i) the failure by Owner to pay any amount of principal of or interest on any
      Equipment Note when due or (ii) the occurrence of any Default or Event of
      Default referred to in Section 5.01(v), (vi) or (vii).

     

    “Special
      Valuation Date”
is
      defined in Section 2.4 of the Collateral Maintenance Agreement.

    
      
        
        

      

      
        18

        
          

        

      

      
        BACK

      

    

     

    “Standard
      & Poor’s”
means
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc.

     

    “Subordinated
      Collateral Ratio”
shall
      mean a percentage determined by dividing (i) the aggregate unpaid Original
      Amount of all Equipment Notes minus the sum of the Cash Collateral held by
      the
      Securities Intermediary by (ii) the Fair Market Value of all Collateral
      (excluding any Cash Collateral), as set forth in the most recent Independent
      Appraiser’s Certificate delivered by the Owner pursuant to Article 2 of the
      Collateral Maintenance Agreement, as supplemented pursuant to Section 3.1
      of the Collateral Maintenance Agreement, if applicable.

     

    “Subordinated
      Security Provisions”
is
      defined in Section 4.1 of the Collateral Maintenance
      Agreement.

     

    “Subordination
      Agent”
means
      Wilmington Trust Company, as subordination agent under the Intercreditor
      Agreement, or any successor thereto.

     

    “Subordination
      Agent Agreements”
means
      the Note Purchase Agreement, the Policy Provider Agreement, the Primary
      Liquidity Facility, the Reference Agency Agreement, the Above-Cap Liquidity
      Agreement and the Intercreditor Agreement.

     

    “Tax
      Indemnitee”
means
      (a) WTC and Mortgagee, (b) each separate or additional trustee appointed
      pursuant to the Trust Indenture, (c) each Note Holder, (d) the Policy Provider
      and (e) the respective successors, assigns, agents and servants of the
      foregoing.

     

    “Taxes”
means
      all license, recording, documentary, registration and other similar fees and
      all
      taxes, levies, imposts, duties, charges, assessments or withholdings of any
      nature whatsoever imposed by any Taxing Authority, together with any penalties,
      additions to tax, fines or interest thereon or additions thereto.

     

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

     

    “Temporary
      Cash Collateral”
is
      defined in Section 3.1(e) of the Collateral Maintenance Agreement.

     

    “Threshold
      Amount”
means
      $2,000,000.

     

    “Transaction
      Expenses”
means
      all costs and expenses incurred by Mortgagee in connection with (a) the
      preparation, execution and delivery of the Operative Agreements and the
      recording or filing of any documents, certificates or instruments in accordance
      with any Operative Agreement, including, without limitation, the FAA Filed
      Documents and the Financing Statements, (b) the initial fee of Mortgagee under
      the Trust Indenture and (c) the reasonable fees and disbursements of counsel
      for
      Mortgagee and special counsel in Oklahoma City, Oklahoma, in each case, in
      connection with the Closing.

    
      
        
        

      

      
        19

        
          

        

      

      
        BACK

      

    

     

    “Transactions”
means
      the transactions contemplated by the Note Purchase Agreement.

     

    “Transfer”
means
      the transfer, sale, assignment or other conveyance of all or any interest in
      any
      property, right or interest.

     

    “Transferee”
means
      a
      person to which any Note Holder purports or intends to Transfer any or all
      of
      its right, title or interest in the Equipment Note, as described in Section
      9 of
      the Note Purchase Agreement.

     

    “Trust
      Indenture”
means
      the Trust Indenture and Mortgage, dated as of the date of the Note Purchase
      Agreement, between Owner and Mortgagee.

     

    “Trust
      Indenture Collateral Supplement”
means
      a
      Trust Indenture and Mortgage Supplement, substantially in the form of Exhibit
      B
      to the Trust Indenture, with appropriate modifications to reflect the purpose
      for which it is being used.

     

    “Trust
      Indenture Location Supplement”
means
      a
      Trust Indenture and Mortgage Supplement, substantially in the form of Exhibit
      A
      to the Trust Indenture, with appropriate modifications to reflect the purpose
      for which it is being used.

     

    “Trust
      Indenture Supplement”
means
      a
      Trust Indenture Collateral Supplement or a Trust Indenture Location
      Supplement.

     

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

     

    “UCC”
means
      the Uniform Commercial Code as in effect in any applicable
      jurisdiction.

     

    “Underwriter”
means
      Morgan Stanley & Co. Incorporated.

     

    “Underwriting
      Agreement”
means
      the Underwriting Agreement, dated May 24, 2006, between the Owner and
      the Underwriter, providing for the sale of the Pass Through
      Certificates.

     

    “United
      States”
or
      “U.S.”
means
      the United States of America; provided that for geographic purposes, “United
      States” means, in aggregate, the 50 states and the District of Columbia of the
      United States of America.

     

    “Unserviceable
      Parts”
means
      Pledged Spare Parts that are not Serviceable Parts.

     

    “U.S.
      Air Carrier”
means
      any United States air carrier that is a Citizen of the United States holding
      an
      air carrier operating certificate issued pursuant to chapter 447 of title 49
      

    
      
        
        

      

      
        20

        
          

        

      

      
        BACK

      

    

     

    of
      the
      United States Code for aircraft capable of carrying 10 or more individuals
      or
      6000 pounds or more of cargo, and as to which there is in force an air carrier
      operating certificate issued pursuant to Part 121 of the FAA Regulations, or
      which may operate as an air carrier by certification or otherwise under any
      successor or substitute provisions therefor or in the absence
      thereof.

     

    “U.S.
      Government”
means
      the federal government of the United States, or any instrumentality or agency
      thereof the obligations of which are guaranteed by the full faith and credit
      of
      the federal government of the United States.

     

    “U.S.
      Government Obligations”
means
      direct obligations (or certificates representing an ownership interest in such
      obligations) of the United States of America (including any agency or
      instrumentality thereof) for the payment of which the full faith and credit
      of
      the United States of America is pledged and which are not callable at the option
      of the issuer thereof.

     

    “U.S.
      Person”
means
      any Person described in Section 7701 (a)(30) of the Code.

     

    “Valuation
      Dates”
is
      defined in Section 2.4 of the Collateral Maintenance
      Agreement.

     

    “Warranties”
is
      defined in clause (2) of the Granting Clause of the Trust
      Indenture.

     

    “WTC”
means
      Wilmington Trust Company, a Delaware banking corporation, not in its capacity
      as
      Mortgagee under the Trust Indenture, but in its individual
      capacity.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        BACK

      

    

    
      	
              ANNEX 
B
                - INSURANCE  

              TRUST
                INDENTURE

            

    

    

    

    

    [Intentionally
      omitted.]

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        BACK

      

    

    EXHIBIT
      A

    TO

    TRUST
      INDENTURE AND MORTGAGE

     

    TRUST
      INDENTURE AND MORTGAGE SUPPLEMENT

     

    This
      TRUST INDENTURE AND MORTGAGE SUPPLEMENT NO. __, dated [______________ ___,
      ____]
      (herein called this “Trust Indenture Supplement”) of CONTINENTAL AIRLINES, INC.,
      as Owner (the “Owner”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Owner and Wilmington Trust Company, as Mortgagee (the “Mortgagee”),
      have
      heretofore executed and delivered a Trust Indenture and Mortgage, dated as
      of
      June 9, 2006 (the “Trust Indenture”), and terms defined in the Trust Indenture
      and used herein have such defined meanings unless otherwise defined
      herein;

     

    WHEREAS,
      the Trust Indenture grants a Lien on, among other things, certain Spare Parts
      and Appliances to secure (subject to the provisions of the Trust Indenture),
      among other things, the Owner’s obligations to the Note Holders and the
      Indenture Indemnities;

     

    WHEREAS,
      the Owner has previously designated the locations at which the Pledged Spare
      Parts may be maintained by or on behalf of the Owner in the Trust Indenture
      [and
      in Trust Indenture Supplement No. __];

     

    WHEREAS,
      the Trust Indenture [and the Trust Indenture Supplements] has [have] been duly
      recorded with the Federal Aviation Administration at Oklahoma City, Oklahoma,
      pursuant to the Act on the following date as a document or conveyance bearing
      the following number:

    

    
      	 	
              DATE
                OF

              RECORDING

            	
              DOCUMENT
                OR

              CONVEYANCE
                NO.

            
	
               

              Trust
                Indenture......

            	 	 

    

     

    WHEREAS,
      the Owner, as provided in the Trust Indenture, is hereby executing and
      delivering to the Mortgagee this Trust Indenture Supplement for the purposes
      of
      adding locations at which the Pledged Spare Parts may be maintained by or on
      behalf of the Owner; and

     

    WHEREAS,
      all things necessary to make this Trust Indenture Supplement the valid, binding
      and legal obligation of the Owner, including all proper corporate action on
      the
      part of the Owner, have been done and performed and have happened;

     

    NOW,
      THEREFORE, THIS TRUST INDENTURE SUPPLEMENT WITNESSETH, that the locations listed
      on Schedule 1 hereto shall be Designated Locations for purposes of the Trust
      Indenture at which Pledged Spare Parts may be maintained by or on behalf

    
      
        
        

      

      
        
        

        
          

        

      

      
        BACK

      

    

     

    of
      the
      Owner, and all Pledged Spare Parts at such Designated Locations shall be
      subjected to the Lien of the Trust Indenture.

     

    This
      Trust Indenture Supplement shall be construed as supplemental to the Trust
      Indenture and shall form a part thereof, and the Trust Indenture is hereby
      incorporated by reference herein and is hereby ratified, approved and
      confirmed.

     

    THIS
      TRUST INDENTURE SUPPLEMENT IS DELIVERED IN THE STATE OF NEW YORK. THIS TRUST
      INDENTURE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE
      LAWS OF THE STATE OF NEW YORK.

     

    Delivery
      of an executed counterpart of a signature page to this Trust Indenture
      Supplement by telecopier shall be effective as delivery of an original executed
      counterpart of this Trust Indenture Supplement.

     

    *   *   *

    
      
        
        

      

      
        2

        
          

        

      

      
        BACK

      

    

     

    IN
      WITNESS WHEREOF, the Owner has caused this Trust Indenture Supplement to be
      duly
      executed by one of its officers, thereunto duly authorized, on the day and
      year
      first above written.

     

    
       

      
        	 	 	 
	 	
                CONTINENTAL
                  AIRLINES, INC.

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title:

      

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        BACK

      

    

    SCHEDULE
      I TO EXHIBIT A

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        BACK

      

    

    EXHIBIT
      B

    TO

    TRUST
      INDENTURE AND MORTGAGE

     

    TRUST
      INDENTURE AND MORTGAGE SUPPLEMENT

     

    This
      TRUST INDENTURE AND MORTGAGE SUPPLEMENT NO. __, dated [______________ ___,
      ____]
      (herein called this “Trust Indenture Supplement”) of CONTINENTAL AIRLINES, INC.,
      as Owner (the “Owner”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Owner and Wilmington Trust Company, as Mortgagee (the “Mortgagee”),
      have
      heretofore executed and delivered a Trust Indenture and Mortgage, dated as
      of
      June 9, 2006 (the “Trust Indenture”), and terms defined in the Trust Indenture
      and used herein have such defined meanings unless otherwise defined
      herein;

     

    WHEREAS,
      the Trust Indenture grants a Lien on, among other things, certain Spare Parts
      and Appliances to secure (subject to the provisions of the Trust Indenture),
      among other things, the Owner’s obligations to the Note Holders and the
      Indenture Indemnities;

     

    WHEREAS,
      the Trust Indenture [and the Trust Indenture Supplements] has [have] been duly
      recorded with the Federal Aviation Administration at Oklahoma City, Oklahoma,
      pursuant to the Act on the following date as a document or conveyance bearing
      the following number:

    

    
      	 	
              DATE
                OF

              RECORDING

            	
              DOCUMENT
                OR

              CONVEYANCE
                NO.

            
	
               

              Trust
                Indenture......

            	 	 

    

     

    WHEREAS,
      the Owner, as provided in the Trust Indenture, is hereby executing and
      delivering to the Mortgagee this Trust Indenture Supplement for the purposes
      of
      adding certain additional Spare Parts and Appliances to the Pledged Spare Parts;
      and

     

    WHEREAS,
      all things necessary to make this Trust Indenture Supplement the valid, binding
      and legal obligation of the Owner, including all proper corporate action on
      the
      part of the Owner, have been done and performed and have happened;

     

    NOW,
      THEREFORE, THIS TRUST INDENTURE SUPPLEMENT WITNESSETH, that Owner hereby
      confirms that the following shall be included as Qualified Spare Parts for
      purposes of subclause (IV) of clause (1) of the Granting Clause of the Trust
      Indenture and shall be subject to the Lien of the Trust Indenture to the same
      extent as other Qualified Spare Parts (but subject to the exclusions set forth
      in the Trust Indenture): all [Spare Parts and Appliances] [Rotable Parts] first
      placed in service after October 22, 1994 and currently owned or hereafter
      acquired by the Owner that are appropriate for incorporation in, installation
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        BACK

      

    

    on,
      attachment or appurtenance to, or use in, a Boeing model 787 Aircraft or any
      Engine utilized on any such Aircraft.

     

    TO
      HAVE
      AND TO HOLD all and singular the aforesaid property unto the Mortgagee, and
      its
      successors and assigns, in trust for the equal and proportionate benefit and
      security of the Note Holders and the Indenture Indemnitees, except as provided
      in Section 2.13 and Article III of the Trust Indenture, without any preference,
      distinction or priority of any one Equipment Note over any other by reason
      of
      priority of time of issue, sale, negotiation, date of maturity thereof or
      otherwise for any reason whatsoever, and for the uses and purposes set forth
      in
      the Trust Indenture.

     

    This
      Trust Indenture Supplement shall be construed as supplemental to the Trust
      Indenture and shall form a part thereof, and the Trust Indenture is hereby
      incorporated by reference herein and is hereby ratified, approved and
      confirmed.

     

    THIS
      TRUST INDENTURE SUPPLEMENT IS DELIVERED IN THE STATE OF NEW YORK. THIS TRUST
      INDENTURE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE
      LAWS OF THE STATE OF NEW YORK.

     

    Delivery
      of an executed counterpart of a signature page to this Trust Indenture
      Supplement by telecopier shall be effective as delivery of an original executed
      counterpart of this Trust Indenture Supplement.

     

    *   *   *

    
      
        
        

      

      
        2

        
          

        

      

      
        BACK

      

    

     

    IN
      WITNESS WHEREOF, the Owner has caused this Trust Indenture Supplement to be
      duly
      executed by one of its officers, thereunto duly authorized, on the day and
      year
      first above written.

     

    
      
        	 	 	 
	 	
                CONTINENTAL
                  AIRLINES, INC.

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title:

      

    

     

     

     

     

    3

    
      
        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        SCHEDULE
          I

      

      TO
        

      TRUST
        INDENTURE

      AND
        MORTGAGE

       

      DESIGNATED
        LOCATIONS

       

      

      
        	
                 

                WAREHOUSING

                 

              

      

      
        	
                Location

              	
                Address

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                5840
                  S. Cargo Road, Cleveland, OH 44135

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                Brewster
                  Road, Building 101, Newark, NJ 07114

              
	
                Continental
                  Airlines, Inc., Stores / Receiving 

              	
                17-3120
                  Mariner Avenue, Tiyan Barrigada, Guam 96913

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                Material
                  Services - EWA Service Road. Gate 30, Honolulu International Airport,
                  Honolulu, HI 96819

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                110
                  Lauhoe Place, Honolulu, HI 96819

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                8401
                  Travelair Hangar #7, Houston, TX 77061

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                7300
                  World Way West, Los Angeles, CA 90045

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                4121
                  Centerport Street, Orlando, FL 32827

              
	
                Continental
                  Airlines, Inc., Morales Warehouse Kitting

              	
                4849
                  Wright Road, Houston, TX 77032

              
	
                Continental
                  Airlines, Inc., Parts Control

              	
                15851
                  Vickery Drive, Houston, TX 77032

              
	
                Continental
                  Airlines, Inc., Stores / Receiving

              	
                4849
                  Wright Road / Bldg B, Houston, TX 77032

              
	 	 
	 	 

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      
        	
                 

                MAINTENANCE

                 

              

      

      
        	
                Location

              	
                Address

              
	
                Continental
                  Airlines, Inc.

              	
                Atlanta
                  Hartsfield Intl. Airport Concourse D - 8, Atlanta, GA
                  30320

              
	
                Continental
                  Airlines, Inc.

              	
                Logan
                  Intl. Airport Terminal C - A/C Dept., E. Boston, MA
                  02128

              
	
                Continental
                  Airlines, Inc.

              	
                5300
                  Riverside Drive, Cleveland, OH 44135

              
	
                Continental
                  Airlines, Inc.

              	
                Ronald
                  Reagan Washington National Airport, Washington, DC
                  20001

              
	
                Continental
                  Airlines, Inc.

              	
                26360
                  East 103rd Avenue, Denver, CO 80249

              
	
                Continental
                  Airlines, Inc.

              	
                910
                  W. Airfield Drive, Ste. 500, Dallas, TX 75261

              
	
                Continental
                  Airlines, Inc.

              	
                Hangar
                  54, Brewster Road, Newark, NJ 07114

              
	
                Continental
                  Airlines, Inc.

              	
                50
                  Terminal Drive, Ft. Lauderdale, FL 33315

              
	
                Continental
                  Airlines, Inc.

              	
                Honolulu
                  Intl. Airport, 110 Lauhoe Drive, Honolulu, HI 96819

              
	
                Continental
                  Airlines, Inc.

              	
                8437
                  Lockheed, Bldg. 3 Upstairs, Houston, TX 77061

              
	
                Continental
                  Airlines, Inc.

              	
                4849
                  Wright Road, 141-B, Hangar E, Houston, TX 77032

              
	
                Continental
                  Airlines, Inc.

              	
                15555
                  Vickery Drive, Houston, TX 77032

              
	
                Continental
                  Airlines, Inc.

              	
                5757
                  Wayne Newton Blvd.- Ticket Counter, Las Vegas, NV 89111

              
	
                Continental
                  Airlines, Inc.

              	
                7300
                  World Way West, Los Angeles, CA 90045

              
	
                Continental
                  Airlines, Inc.

              	
                LaGuardia
                  Airport, Main Terminal, Flushing, NY 11371

              
	
                Continental
                  Airlines, Inc.

              	
                8855
                  Tradeport Drive, Orlando, FL 32827

              
	
                Continental
                  Airlines, Inc.

              	
                Miami
                  Int’l Airport - Concourse G, Miami, FL 33122

              
	
                Continental
                  Airlines, Inc.

              	
                New
                  Orleans Intl. Airport Bldg 1, East Access Road, Kenner, LA
                  70062

              
	
                Continental
                  Airlines, Inc.

              	
                O’Hare
                  Intl. Airport, Chicago, IL 60666

              
	
                Continental
                  Airlines, Inc.

              	
                3400
                  Sky Harbor Blvd., Phoenix, AZ 85034

              
	
                Continental
                  Airlines, Inc.

              	
                9700
                  Airport Blvd. Room 222, San Antonio, TX 78216

              
	
                Continental
                  Airlines, Inc.

              	
                SEA-TAC
                  Intl. Airport- A/C MX Dept., Seattle, WA 98158

              
	
                Continental
                  Airlines, Inc.

              	
                San
                  Francisco Intl. Airport-S. Terminal Bldg, San Francisco, CA
                  94128

              
	
                Continental
                  Airlines, Inc.

              	
                18601
                  N. Airport Way, Ste. 207, Santa Ana, CA 92707

              
	
                Continental
                  Airlines, Inc.

              	
                Tampa
                  Intl. Airport - Airside A, Tampa, FL
                  33607

              

      

      

      

      
        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

       

      

        

        
          	
                   

                  MAINLINE
                    STATIONS

                   

                

        

      

      
      

      
        	
                Location

              	
                Address

              
	
                Albuquerque
                  Int’l Airport

              	
                2200
                  Sunport Blvd South East, Albuquerque, NM 87106

              
	
                Anchorage
                  Int’l Airport

              	
                5000
                  W. International Airport, Anchorage, AK 99502

              
	
                Atlanta
                  Int’l Airport

              	
                6000
                  North Terminal Drive, Atlanta, GA 30320

              
	
                Austin-Bergstrom
                  Int’l Airport

              	
                3600
                  Presidential Blvd, Suite 103, Austin, TX 78719

              
	
                Baltimore/Washington
                  Int’l Airport

              	
                Baltimore/Washington
                  International Airport, Baltimore, MD 21240

              
	
                Baton
                  Rouge Metropolitan Airport

              	
                Terminal
                  Building, Baton Rouge, LA 70807

              
	
                Birmingham
                  Int’l Airport

              	
                5900
                  Airport Hwy., Birmingham, AL 35212

              
	
                Bradley
                  Int’l Airport

              	
                Bradley
                  International Airport, Windsor Locks, CT 06096

              
	
                Buffalo
                  Niagara Int’l Airport

              	
                Buffalo
                  Niagara International Airport, East Terminal, Attn: Ticket Counter,
                  Buffalo, NY 14225

              
	
                Charleston
                  Int’l Airport

              	
                5500
                  International Blvd, Ticket Counter, Charleston, SC 29418
                  

              
	
                Chicago
                  Midway Airport 

              	
                5757
                  S Cicero Ave, Chicago, IL

              
	
                Cleveland
                  Hopkins Int'l Airport 

              	
                5300
                  Riverside Drive, Cleveland, OH 44135

              
	
                Colorado
                  Springs Int’l Airport

              	
                Peterson
                  Field, 7770 Drennan Rd., Colorado Springs, CO 80916 

              
	
                Dallas/Ft.Worth
                  Int’l Airport

              	
                Terminal
                  B, Dallas/Ft. Worth, TX 75261

              
	
                Daytona
                  Beach Regional Airport 

              	
                700
                  Terminal Drive, Daytona Beach, FL 32014

              
	
                Denver
                  Int’l Airport

              	
                8700
                  Pena Blvd., Room 3260, Denver, CO 80249

              
	
                Detroit
                  MetroAirport

              	
                Edward
                  H. McNamara Terminal, Building 830, Detroit, MI 48242

              
	
                Eagle/Vail
                  Int’l Airport

              	
                0215
                  Eldon Wilson Rd., Gypsum, CO 81637

              
	
                El
                  Paso Int’l Airport

              	
                6701
                  Convair, El Paso, TX 79925 

              
	
                Eppley
                  Airfield

              	
                4501
                  Abbot Drive, Omaha, NE 68119

              
	
                Ft.
                  Lauderdale Int’l Airport

              	
                50
                  Terminal Drive, Terminal 1, Ft. Lauderdale, FL 33315 

              
	
                George
                  Bush Int'l Airport

              	
                Intercontinental
                  Airport, Terminal C, Houston TX 77032

              
	
                Gulfport
                  Airport

              	
                14035
                  E Airport Blvd, Gulfport, MS 39503

              
	
                Gunnison
                  Airport

              	
                711
                  N. Rio Grande, Gunnison, CO 81230

              
	
                Honolulu
                  Int’l Airport

              	
                300
                  Rogers Blvd. #11, Honolulu, HI 96819

              
	
                Indianapolis
                  Int’l Airport

              	
                2500
                  South High School Rd. Suite 33, Indianapolis, IN 46241

              
	
                Jacksonville
                  Int’l Airport

              	
                2400
                  Yankee Clipper Drive, Suite 108, Jacksonville, FL 32218

              
	
                JFK
                  Int’l Airport

              	
                Terminal
                  One Ticket Office, Jamaica, NY 11430

              
	
                John
                  Wayne Airport 

              	
                18601
                  N. Airport Way, Ste. 207, Santa Ana, CA 92707

              
	
                Kahului
                  Int'l Airport 

              	
                Kahului
                  Int'l Airport, Kahului, HI 93732

              
	
                Kansas
                  City Int’l Airport

              	
                52
                  Beirut Circle, Kansas City, MO 64153

              
	
                La
                  Guardia Int’l Airport

              	
                Central
                  Terminal Building, Flushing, NY 11371

              
	
                Lambert
                  Field

              	
                10701
                  Lambert Int’l Blvd., St. Louis, MO
                  63145

              

      

      

      

      
        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      

       

      
        

        
          	
                   

                  MAINLINE
                    STATIONS

                   

                

        

      

      
        	Location	Address
	
                Logan
                  Int’l Airport

              	
                Logan
                  International Airport, 300 Terminal C, East Boston, MA
                  02128

              
	
                Los
                  Angeles Int’l Airport

              	
                600
                  World Way, Los Angeles, CA 90045

              
	
                Manchester
                  Airport

              	
                Manchester
                  Airport, Airport Road, Manchester, NH 03103

              
	
                McCarran
                  Int’l Airport

              	
                5757
                  Wayne Newton Blvd., Las Vegas, NV 89111

              
	
                Memphis
                  Int’l Airport

              	
                2491
                  Winchester, Memphis, TN 38116

              
	
                Miami
                  Int’l Airport

              	
                Miami
                  International Airport, Concourse G - 3rd Fl., Miami, FL 33159
                  

              
	
                Miller
                  Int’l Airport

              	
                2500
                  South Bicentennial Blvd, Suite 101, McAllen, TX 78503

              
	
                Minneapolis/St.Paul
                  Int’l Airport

              	
                4300
                  Glumack Drive, Blue Concourse, St. Paul, MN 55111 

              
	
                Montrose
                  County Airport

              	
                2100
                  Airport Road, Suite 104, Montrose, CO 81401

              
	
                Myrtle
                  Beach Int’l Airport

              	
                1100
                  Jetport Rd., Myrtle Beach, SC 29577

              
	
                Nashville
                  Metropolitan Airport

              	
                1
                  Terminal Dr, Suite 329, Nashville, TN 37214

              
	
                New
                  Orleans Int’l Airport

              	
                900
                  Airline Hwy., Kenner, LA 70061

              
	
                Newark
                  Liberty Int'l Airport 

              	
                Newark
                  Liberty Airport Terminal C, Newark, NJ 07114

              
	
                Norfolk
                  Int’l Airport

              	
                2200
                  Norview Avenue, Norfolk, VA 23518 

              
	
                O’Hare
                  Int’l Airport

              	
                O’Hare
                  International Airport, Chicago, IL 60666 

              
	
                Oakland
                  Int’l Airport

              	
                1
                  Airport Drive, Oakland, CA 94621

              
	
                Ontario
                  Int’l Airport

              	
                2900
                  E. Airport Dr., Room 1464, Ontario, CA 91761

              
	
                Orlando
                  Int’l Airport

              	
                9247
                  Airport Blvd, Orlando, FL 32827

              
	
                Palm
                  Beach Int’l Airport

              	
                1000
                  PBIA, Box #114, West Palm Beach, FL 33406

              
	
                Pensacola
                  Int’l Airport

              	
                2430
                  Airport Blvd., Pensacola, FL 32504

              
	
                Philadelphia
                  Int’l Airport

              	
                Philadelphia
                  International Airport, Concourse D, Philadelphia, PA 19153
                  

              
	
                Piedmont
                  Triad Int’l Airport

              	
                6415
                  Airport Parkway, Greensboro, NC 27409 

              
	
                Pittsburgh
                  Int’l Airport

              	
                Pittsburgh
                  International Airport, Main Terminal, Pittsburgh, PA
                  15231

              
	
                Port
                  Columbus Int’l Airport

              	
                4600
                  International Gateway, Columbus, OH 43219 

              
	
                Portland
                  Int’l Airport

              	
                7000
                  NE Airport Way, Portland, OR 97218 

              
	
                Raleigh
                  Durham Int’l. Airport.

              	
                1035
                  Cargo Rd, Raleigh NC 27623

              
	
                Reno
                  Tahoe Int’l Airport

              	
                2001
                  East Plumb Lane, Reno, NV 89502

              
	
                Sacramento
                  Metropolitan Airport

              	
                6850
                  Airport Boulevard, Sacramento, CA 95837

              
	
                Salt
                  Lake Int’l Airport

              	
                776
                  Terminal Rd., Salt Lake City, UT 84122 

              
	
                San
                  Antonio Int’l Airport

              	
                9700
                  Airport Blvd., San Antonio, TX 78216 

              
	
                San
                  Diego Int’l Airport

              	
                3707
                  North Harbor Drive, Suite 115, San Diego, CA 92101

              
	
                San
                  Francisco Int’l Airport

              	
                South
                  Terminal Building Tkt Counter Level, San Francisco, CA
                  94128

              
	
                San
                  Jose Int’l Airport

              	
                1661
                  Airport Blvd, Terminal C, San Jose, CA 95110

              
	
                Sarasota/Bradenton
                  Airport

              	
                6008
                  Airport Circle, Sarasota, FL 34243

              

      

      

      

      
        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

       

      
        

        
          	
                   

                  MAINLINE
                    STATIONS

                   

                

        

      

      
        	Location	Address
	
                Savannah
                  Int’l Airport

              	
                424
                  Airways Ave, Savannah, GA 31408 

              
	
                Seattle-Tacoma
                  Int’l Airport

              	
                17801
                  Pacific Highway South, Seattle, WA 98158

              
	
                Sky
                  Harbor Int’l Airport

              	
                3800
                  Sky Harbor Blvd., Phoenix, AZ 85034

              
	
                Southwest
                  Florida Int’l Airport

              	
                16000
                  Chamberlin Parkway, Ft. Myers, FL 33913

              
	
                Tampa
                  Int’l Airport

              	
                5500
                  West Spruce St., Tampa, FL 33607

              
	
                Theodore
                  Francis Green Airport

              	
                T.
                  F. Green State Airport, Post Road, Warwick, RI 02886

              
	
                Tucson
                  Int’l Airport

              	
                7005
                  South Plumer Ave., Tucson, AZ 85706

              
	
                Tulsa
                  Int’l Airport

              	
                7777
                  East Apache, Tulsa, OK 74115

              
	
                Washington
                  Dulles Int’l Airport

              	
                Main
                  Ticket Counter, Washington, DC 20041

              
	
                Washington
                  National Airport

              	
                Ronald
                  Reagan Washington National Airport, Terminal B, Washington, DC
                  20001

              
	
                Will
                  Rogers World Airport

              	
                7100
                  Terminal Dr., Oklahoma City, OK 73159 

              
	
                Yampa
                  Valley Regional Airport

              	
                11005
                  Routt County Rd. 51A, Hayden, CO 81639

              

      

      

      

      
        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

      

       

      
        

        
          	
                   

                  
                    REPAIR
                      SUPPLIERS

                  

                   

                

        

      

      
        	
                Supplier

              	
                Location

              
	
                4
                  Flight Industries 

              	
                2057
                  S Grove Avenue, Ontario, CA 91761

              
	
                AAR
                  Hermetic 

              	
                100
                  Corporate Drive, Holtsville, NY 11742

              
	
                Acme
                  Electric Corporation 

              	
                528
                  West 21st Street, Tempe, AZ 85282

              
	
                Adams
                  Rite Aerospace Inc 

              	
                4141
                  N Palm St, Fullerton, CA 92835

              
	
                Aeronca
                  Inc 

              	
                2320
                  Wedekind Drive, Middletown, OH 45042

              
	
                Aerospace
                  Interiors Inc 

              	
                419
                  Van Molan, Houston, TX 77022

              
	
                Ail
                  Systems Inc 

              	
                455
                  Commack Road, Deer Park, NY 11729

              
	
                Air
                  Cruisers Company 

              	
                1740
                  Highway 34 North, Wall Township, NJ 7719

              
	
                Air
                  Cruisers Company 

              	
                15556
                  Dupont Avenue Building B, Chino, CA 91710

              
	
                Airbase
                  Services Inc 

              	
                902
                  Avenue T, Grand Prairie, TX 75050

              
	
                Allen
                  Aircraft Products Inc 

              	
                6168
                  Woodbine Avenue, Ravenna, OH 44266

              
	
                American
                  Aerospace Corp 

              	
                1301
                  Saratoga St., Delano, FL 32724

              
	
                American
                  Eurocopter Llc 

              	
                2701
                  Forum Drive, Grand Prairie, TX 75053-4005

              
	
                Ameron
                  Global Product Support 

              	
                1350-2
                  Lincoln Avenue, Holbrook, NY 11741

              
	
                Ametek
                  Aerospace 

              	
                Aerospace
                  & Power Inst., 50 Fordham Road, Wilmington, MA 1887

              
	
                Ametek
                  Aerospace 

              	
                4333
                  Harbour Point Blvd, Sw, Suite A, Mukilteo, WA 98275

              
	
                Ametek
                  Aerospace 

              	
                1644
                  Whittier Ave., Costa Mesa, CA 92627

              
	
                Applied
                  Aerodynamics Inc 

              	
                2265
                  Valley Branch Ln, Dallas, TX 75234

              
	
                Argo-Tech
                  Corporation 

              	
                671
                  West 17th Street, Costa Mesa, CA 92627

              
	
                Autronics
                  Corporation 

              	
                12701
                  Schabarum Avenue, Irwindale, CA 91706

              
	
                Aviall
                  Battery Shop 

              	
                2139
                  Airport Rd, Waterford, MI 48327

              
	
                Aviall
                  Services Inc 

              	
                8210
                  Haskell Avenue, Van Nuys, CA 91406

              
	
                Aviall
                  Services Inc 

              	
                8305
                  B Telephone Rd, Houston, TX 77061

              
	
                Aviall
                  Services Inc 

              	
                2
                  Cranberry Rd., Carlstadt, NJ 07072

              
	
                Avox
                  Systems Inc. 

              	
                225
                  Erie St., Lancaster, NY 14086-9502

              
	
                Av-Ox,
                  Inc 

              	
                6734
                  Valjean Avenue, Van Nuys, CA 91406

              
	
                Av-Ox,
                  Inc 

              	
                1812
                  Production Court, Louisville, KY 40299

              
	
                Avtech
                  Corp 

              	
                3400
                  Wallingford Avenue N, Seattle, WA 98103

              
	
                BAE
                  Systems 

              	
                Dallas
                  Service Center, 3131 Story Rd. West, Irving, TX 75038

              
	
                BAE
                  Systems Controls, Inc 

              	
                2000
                  Taylor Street, Dock 1, Fort Wayne, IN 46802

              
	
                Barfield
                  Inc 

              	
                4101
                  N.W. 29th Street, Miami, FL 33142

              
	
                Barry
                  Controls Aerospace 

              	
                4510
                  Van Owen Street, Burbank, CA 91505

              
	
                BE
                  Aerospace 

              	
                10800
                  Pflumm Road, Lenexa, KS 66215

              
	
                BE
                  Aerospace ISG

              	
                3355
                  E. Lapalma Avenue Repair Division, Anaheim, CA 92806

              
	
                BF
                  Goodrich Aircraft 

              	
                Repairs/Cust
                  Service, 100 Panton Road, Vergennes, VT 05491

              
	
                BF
                  Goodrich Wheel/Tire/ Brakes 

              	
                17
                  N Edgeboro Rd, East Brunswick, NJ 08816

              
	
                Boeing
                  Company Airplane Div 

              	
                Spares
                  Distribution Center, Repair And Overhaul Area, 2201 S. 142nd St.,
                  Door
                  W10, Seatac, WA 98165

              
	
                Boeing
                  Company Airplane Div 

              	
                M/S
                  34-02/Col D4, 2201 S. 142nd St. Door W10, Seatac, WA
                  98168

              
	
                Boeing
                  Company Airplane Div 

              	
                Doors
                  2 And 7 Bfe, Spe, Sfe, 833 Houser Way North, Renton, WA
                  98056

              
	
                Boeing
                  Company Airplane Div 

              	
                The
                  Boeing Company Arsc, PO Box 808, Lacrosse Road, Building #2, Melbourne,
                  AR, 72556

              

      

      

      
        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

      

       

      
        
          

          
            	
                     

                    
                      REPAIR
                        SUPPLIERS

                    

                     

                  

          

        

      

      
        	Supplier	Location
	
                Boeing
                  Company Airplane Div 

              	
                The
                  Boeing Co Wichita Div, 3801 S. Oliver, Building 1-198D, Wichita,
                  KS
                  67277-2207

              
	
                Boeing
                  Long Beach Division 

              	
                910
                  E. 236th St. Mail Code 182/65, Long Beach, CA 90801

              
	
                Carleton
                  Technologies Inc 

              	
                10
                  Cobham Drive, Orchard Park, NY 14127

              
	
                CFAN
                  

              	
                1000
                  Technology Way, San Marcos, TX 78666

              
	
                Circle
                  Seal Corporation 

              	
                Return
                  Materials, 2301 Wardlow Circle, Corona, CA 92880

              
	
                Continental
                  Airlines 

              	
                Interior
                  Shop(Wright Rd), 4461 Wright Rd, Houston, TX 77205

              
	
                Continental
                  Airlines 

              	
                Orlando
                  Intl Airport, 5410 Bear Rd, Suite 300, Orlando, FL
                  32827

              
	
                Continental
                  Airlines, Inc. 

              	
                Electric
                  Shop, 8433 Lockheed Bldg 4, Houston, TX 77061

              
	
                Continental
                  Airlines, Inc. 

              	
                Sheetmetal
                  Shop, Bldg 8, 8402 Travelair, Houston, TX 77061

              
	
                Continental
                  Airlines, Inc. 

              	
                Houston
                  Hobby Seat Shop, 8401 Travelair, Houston, TX 77061

              
	
                Crane
                  Co Hydro-Aire Division 

              	
                3000
                  Winona Avenue, Burbank, CA 91503

              
	
                Curtiss-Wright
                  Flight Sys 

              	
                201
                  Old Boiling Springs Rd., Dock C, Shelby, NC 28152

              
	
                Dayton
                  Granger Aviation Inc 

              	
                3299
                  Sw 9th Ave, Ft Lauderdale, FL 33315-3026

              
	
                Driessen
                  Als Inc 

              	
                10781
                  Forbes Avenue, Garden Grove, CA 92843

              
	
                Eaton
                  Aeroquip Inc 

              	
                PO
                  Box 819, Meadowbrook Road, Toccoa, GA 30577

              
	
                Eaton
                  Aerospace 

              	
                5353
                  Highland Drive, Jackson, MS 39206

              
	
                Eaton
                  Aerospace Llc 

              	
                3675
                  Patterson Avenue S.E., Grand Rapids, MI 49512

              
	
                Eaton
                  Corporation 

              	
                Pressure
                  Sensor Division, 15 Durante Avenue, Bethel, CT 06801

              
	
                Eaton
                  Corporation 

              	
                Sterer
                  Products, 4690 Colorado Boulevard, Los Angeles, CA
                  90039

              
	
                Edo
                  Corporation 

              	
                Fiber-Science
                  Division, 2645 South 300 West, Salt Lake City, UT 84115

              
	
                EFSs
                  Aerospace Inc 643247 

              	
                24910
                  Avenue Tibbetts, Valencia, CA 91355

              
	
                Eldec
                  Corporation 

              	
                16620
                  13Th Avenue West, Lynnwood, WA 98037-8597

              
	
                Electronic
                  Cable Specialists 

              	
                5300
                  W Franklin Drive, Franklin, WI 53132-8642

              
	
                Envirovac
                  Inc 

              	
                1260
                  Turret Drive, Rockford, IL 61115

              
	
                Fadec
                  International 

              	
                2000
                  Taylor St Fort Wayne, IN 46801

              
	
                Fairchild
                  Controls Corp 

              	
                540
                  Highland Street, Frederick, MD 21701

              
	
                Fortner
                  Engineering & 

              	
                918
                  Thompson Avenue, Glendale, CA 91201-2079

              
	
                Fr-Hitemp
                  Ltd 

              	
                11155
                  East 51st Avenue, Denver, CO 80239

              
	
                Frisby
                  Aerospace, Inc 

              	
                4520
                  Hampton Rd, Clemmons, NC 27012

              
	
                Gables
                  Engineering Inc 

              	
                247
                  Greco Avenue, Coral Gables, FL 33146

              
	
                GE
                  Engine Services Dallas 

              	
                9311
                  Reeves St, Dallas, TX 75235

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Ametek Aerospace, 50 Fordham Road, Wilmington, MA 01887

              
	
                GE
                  Engine Services, Inc 

              	
                1200
                  Jaybird Road, Peebles, OH 45660

              
	
                GE
                  Engine Services, Inc 

              	
                Amtec
                  Accessories, Llc., 3035 N.W. 40th Street, Miami, FL
                  33142

              
	
                GE
                  Engine Services, Inc 

              	
                Strother
                  Field Industrial Park, Po Box 797, Arkansas City, KS
                  67005

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Honeywell Intl Inc, 1 Cliff Garrett Dr, Anniston, AL
                  36201

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Unison Industries, 5345 State Hwy 12, Norwich, NY 13815

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  H&L Accessory Inc, 2824 Old Woodruff Rd, Greer, SC
                  29651

              

      

      

      
        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

       

       

      
        
          	
                   

                  
                    REPAIR
                      SUPPLIERS

                  

                   

                

        

        
          	Supplier	Location

        

      

      
        	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Grand Prairie Accessory, 1038 Santerre Drive, Grand Prairie, TX
                  75050

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Triumph Thermal Systems, 200 Railroad Street, Forest, OH
                  45843

              
	
                GE
                  Engine Services, Inc 

              	
                201
                  West Crescentville Rd., Cincinnati, OH 45246

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Argo-Tech Corp, 204 South Hindry Ave, Inglewood, CA
                  90301

              
	
                GE
                  Engine Services, Inc 

              	
                C/O
                  Unison Industries, 7575 Baymeadows Way, Jacksonville, FL
                  32256

              
	
                GE
                  On Wing Support Inc 

              	
                600
                  East Dallas Rd, Ste 300, Grapevine, TX 76051

              
	
                General
                  Dynamics Ots, Inc. 

              	
                9845
                  Willows Rd. Ne, Building 97A, Redmond, WA 98052

              
	
                General
                  Electric-Aemc Strother

              	
                Strother
                  Field Industrial Park, Arkansas City, KS 67005

              
	
                Gkn
                  Aerospace Chem-Tronics Inc

              	
                1150
                  W. Bradley, El Cajon, CA 92021

              
	
                Goodrich
                  

              	
                2604
                  Hwy 20 North, Jamestown, ND 58401

              
	
                Goodrich
                  Aerostructures 

              	
                499
                  Marina Parkway, Chula Vista, CA 91910

              
	
                Goodrich
                  Corporation 

              	
                7100
                  Intermodal Dr, Louisville, KY 40258

              
	
                Goodrich
                  Corporation 

              	
                2403
                  Walnut Ridge, Dallas, TX 75229

              
	
                Goodrich
                  Corporation 

              	
                9151
                  King Arthur Drive, Dallas, TX 75247

              
	
                Goodrich
                  Corporation 

              	
                129
                  Fairfield St, Oldsmar, FL 34677

              
	
                Goodrich
                  Corporation 

              	
                Landing
                  Gear Division, 3201 N W. 167th St, Opa Lacka, FL 33056
                  4253

              
	
                Goodrich
                  Corporation 

              	
                Stringtown
                  Rd., Hc75, Union, WV 24983

              
	
                Goodrich
                  Corporation 

              	
                30
                  Van Nostrand Avenue, Englewood, NJ 07631-4396

              
	
                Goodrich
                  Corporation 

              	
                Foley
                  Service Center, 1300 West Fern Avenue, Foley, AL 36536

              
	
                Goodrich
                  Corporation 

              	
                3405
                  So 5th Street, Phoenix, AZ 85040

              
	
                Goodrich
                  Corporation 

              	
                Everett
                  Service Center, 3100 112th Street Sw, Everett, WA
                  98204-3524

              
	
                Goodrich
                  Corporation 

              	
                1275
                  N. Newport Road, Colorado Springs, CO 80916-2779

              
	
                Goodrich
                  Pump & Engine Control

              	
                Talcott
                  Road, West Hartford, CT 06110

              
	
                Grand
                  Prairie Accessory Svcs 

              	
                1038
                  Santerre Drive, Grand Prairie, TX 75050

              
	
                Hamilton
                  Sundstrand 

              	
                3601
                  Flamingo, Miramar, FL 33027

              
	
                Hamilton
                  Sundstrand 

              	
                Rockford
                  Repair Station, 4747 Harrison Road, Rockford, IL
                  61125-7002

              
	
                Hamilton
                  Sundstrand 

              	
                4400
                  Ruffin Road, PO Box 85757, San Diego, CA 92138 

              
	
                Hamilton
                  Sundstrand 

              	
                18008B
                  N. Black Canyon Highway, Phoenix, AZ 85023

              
	
                Hamilton
                  Sundstrand 

              	
                3601
                  Flamingo Rd, Miramar, FL 33027

              
	
                Hamilton
                  Sundstrand 

              	
                Sundstrand
                  Aerospace, 2421 11th Street, Rockford, IL 61104

              
	
                Hamilton
                  Sundstrand Corp 

              	
                1
                  Hamilton Rd. Doc W. Windsor Locks, CT 06096

              
	
                Hawker
                  Pacific Inc 

              	
                11310
                  Sherman Way, Sun Valley, CA 91352

              
	
                Heath
                  Tecna Interior Spares 

              	
                3225
                  Woburn Street, Bellingham, WA 98226

              
	
                Honeywell
                  

              	
                Trade-In
                  Credits & New LRU, Returns, Redmond, WA 98052

              
	
                Honeywell
                  Inc 

              	
                7825
                  Ridgepoint Dr., Irving, TX 75063

              
	
                Honeywell
                  Inc 

              	
                1830
                  Industrial Avenue, Wichita, KS 67216

              
	
                Honeywell
                  Inc 

              	
                4150
                  Lind Ave S W, Renton, WA 98055

              
	
                Honeywell
                  Inc 

              	
                8840
                  Evergreen Blvd., Coon Rapids, MN 55433-6040

              
	
                Honeywell
                  International Inc 

              	
                1944
                  E. Sky Harbor Circle, Phoenix, AZ
                  85034

              

      

      

      

      
        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

      

      

       

      
        
          	
                   

                  
                    REPAIR
                      SUPPLIERS

                  

                   

                

        

        
          	Supplier	Location

        

      

      
        	
                Honeywell
                  International Inc 

              	
                R
                  & O Receiving, R & O Receiving, Tempe, AZ 85284

              
	
                Honeywell
                  International Inc 

              	
                Courter
                  Operation, 375 North Lake Street, Boyne City, MI 49712

              
	
                Honeywell
                  International Inc 

              	
                1730
                  No Topping, Kansas City, MO 64120

              
	
                Honeywell
                  International Inc 

              	
                964
                  Postal Road, Allentown, PA 18103

              
	
                Honeywell
                  International Inc 

              	
                6930
                  N. Lakewood, Tulsa, OK 74117

              
	
                Honeywell
                  International Inc 

              	
                4150
                  Lind Ave S W, Renton, WA 98055

              
	
                Honeywell
                  International Inc 

              	
                1401
                  W. Cypress Creek Rd, Ft. Lauderdale, FL 33309

              
	
                Honeywell
                  International Inc 

              	
                11100
                  N Oracle Rd, Tucson, AZ 85740-8001

              
	
                Honeywell
                  International Inc 

              	
                1
                  Cliff Garrett Drive, Anniston, AL 36202

              
	
                Honeywell
                  International Inc 

              	
                Engines
                  & Systems -Torrance, 18825 Van Ness Ave., Torrance, CA
                  90504

              
	
                Honeywell/Grimes
                  

              	
                Product
                  Support Group, 240 Twain Ave, Urbana, OH 43078

              
	
                Hoover
                  Industries 

              	
                7260
                  N.W. 68th Street, Miami, FL 33166

              
	
                Hr
                  Textron Inc 

              	
                25200
                  West Rye Can Rd, Valencia, CA 91355

              
	
                I
                  T
                  T Aerospace Controls 

              	
                Repair
                  And Overhaul, 28150 Industry Drive, Valencia, CA 91355

              
	
                Iacobucci
                  U.S.A. 

              	
                35
                  James Way, Eatontown, NJ 07724

              
	
                In
                  Eros Corporation 

              	
                1530
                  Glenn Curtiss St., Carson, CA 90746

              
	
                Intech
                  Aerospace Services 

              	
                1428
                  N Sam Houston Pkwy E, Suite 122, Houston, TX 77073

              
	
                Intech
                  Aerospace Services 

              	
                1428
                  N Sam Houston Pkwy E, Suite 150, Houston, TX 77032-2960

              
	
                Intertechnique
                  Svcs America 

              	
                8050
                  W. Fairlane Avenue, Milwaukee, WI 53223

              
	
                Ipeco
                  Inc 

              	
                2275
                  Jefferson Street, Torrance, CA 90501

              
	
                Island
                  Equipment Co 

              	
                Route
                  2A, Agat, Guam, 96915

              
	
                Israel
                  Aircraft Ind Ltd 

              	
                Iai
                  C/O Dhl Danzas Air & Ocean, Building #89 Jfk Int'L Airport, Jamaica,
                  NY 11600

              
	
                Jamco
                  America 

              	
                1018
                  80th St Sw, Everett, WA 98203

              
	
                Kaiser
                  Aerospace & Electronics

              	
                17000
                  S Red Hill Avenue, Irvine, CA 92614

              
	
                Kavlico
                  Corporation 

              	
                14501
                  Los Angeles Ave., Moorpark, CA 93021

              
	
                Kidde
                  Aerospace 

              	
                4200
                  Airport Dr, Nw Bldg. B, Wilson, NC 27896-9643

              
	
                Kollsman
                  Instruments 

              	
                220
                  Daniel Webster Hwy, Merrimack, NH 03054

              
	
                Kps
                  N.A. Inc 

              	
                500-D
                  Radar Road, Greensboro, NC 27410

              
	
                Kulite
                  Semiconductor Prod. 

              	
                One
                  Willow Tree Road, Leonia, NJ 07605

              
	
                L3
                  Communications Aviation 

              	
                6000
                  Fruitville Road, Sarasota, FL 34232-6414

              
	
                L3
                  Communications Avionics Sys.

              	
                5250
                  N.W 33 Avenue, Ft Lauderdale, FL 33309

              
	
                Leach
                  Corp 

              	
                6900
                  Orangethorpe Ave, Buena Park, CA 90622-5032

              
	
                Limco-Airepair,
                  Inc 

              	
                5304
                  S. Lawton Ave., Tulsa, OK 74107

              
	
                Matsushita
                  Avionics Systems 

              	
                1405
                  South Beltline Rd #300, Coppell, TX 75019

              
	
                Med-Air
                  

              	
                23610
                  N. 20 Ave., Suite 10, Phoenix, AZ 85027

              
	
                Meggitt
                  Safety Systems, Inc 

              	
                1915
                  Voyager Avenue, Simi Valley, CA 93063-3349

              
	
                Messier
                  Services 

              	
                America,
                  Inc., 45360 Severn Way, Sterling, VA 20166-8914

              
	
                Messier-Bugatti
                  Systems Inc 

              	
                7505
                  Hardeson Road, Suite 100, Everett, WA 98203

              
	
                Middle
                  River Aircraft Sys 

              	
                103
                  Chesapeake Park Plaza, Baltimore, MD 21220

              
	
                Miltope
                  Corp 

              	
                500
                  Richardson Road South, Hope Hull, AL 36043

              
	
                Monogram
                  Sanitation 

              	
                1500
                  Glenn Curtiss St., Carson, CA 90746

              

      

      

      

      
        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

      

      

       

      
        
          	
                   

                  
                    REPAIR
                      SUPPLIERS

                  

                   

                

        

        
          	Supplier	Location

        

      

      
        	
                Moog
                  Inc 

              	
                2268
                  South 3270 West, Salt Lake City, UT 84119

              
	
                Moog
                  Inc 

              	
                Aircraft
                  Group, Plant 24 Receiving, Seneca & Jamison Rd., East Aurora, NY
                  14052

              
	
                Mpc
                  Products Corp 

              	
                5600
                  W Jarvis Ave., Niles, IL 60714

              
	
                Nabtesco
                  Aerospace Inc 

              	
                17770
                  N.E. 78th Place, Redmond, WA 98052

              
	
                Nordam
                  Group Inc 

              	
                11200
                  East Pine Street, Tulsa, OK 74116

              
	
                Nordam
                  Group Inc 

              	
                7018
                  N. Lakewood, Tulsa, OK 74117

              
	
                Nordam-Texas
                  

              	
                5101
                  Blue Mound Rd, Ft. Worth, TX 76106

              
	
                North
                  American Airlines 

              	
                Bld
                  75, Room 249, Jfk International Airport, Jamaica, NY
                  11430

              
	
                Northrop
                  Grumman, Litton 

              	
                21050
                  Burbank Blvd, Woodland Hills, CA 91367

              
	
                Oeco
                  Llc 

              	
                4607
                  S.E. International Way, Milwaukee, OR 97222

              
	
                P
                  L
                  Porter Controls, Inc 

              	
                6355
                  Desoto, Woodland Hills, CA 91367

              
	
                Pacific
                  Scientific 

              	
                Electro
                  Kinetics Div, 6382 Rose Lane, Carpinteria, CA 93013

              
	
                Pacific
                  Scientific 

              	
                2156
                  W Northwest Hwy, Suite 314, Dallas, TX 75220

              
	
                Pacific
                  Scientific 

              	
                11700
                  Nw 102nd Rd # 6, Miami, FL 33178

              
	
                Page
                  Aerospace 

              	
                Suite
                  110, 22121 17th Ave S.E., Bothell, WA 98021-4417

              
	
                Pall
                  Aeropower Corp 

              	
                Cage
                  Code 60047, New Port Richey, FL 34654-5198

              
	
                Panasonic
                  Avionics Corp 

              	
                22333
                  29th Drive S.E., Bothell, WA 98021

              
	
                Parker
                  Hannifin 

              	
                Parker
                  Hannifin, 2010 Waldrep Ind Blvd, Dublin, GA 31021

              
	
                Parker
                  Hannifin 

              	
                2220
                  Palmer Ave., Kalamazoo, MI 49001 4165

              
	
                Parker
                  Hannifin Corp 

              	
                Gull
                  Electronics Sys. Div, 300 Marcus Boulevard, Smithtown, NY
                  11787

              
	
                Parker
                  Hannifin Corp 

              	
                14300
                  Alton Parkway, Irvine, CA 92618

              
	
                Parker
                  Hannifin Corp 

              	
                Customer
                  Support, 16666 Von Karman Avenue, Irvine, CA 92606 4917

              
	
                Pneudraulics
                  

              	
                8575
                  Helms, Rancho Cucamonga, CA 91730

              
	
                Ppg
                  Industries Inc 

              	
                1719
                  Highway 72 East, Huntsville, AL 35811

              
	
                Premium
                  Aircraft Interior 

              	
                Kent
                  North Corporate Park, 8011 South 187th Street, Building G, Kent,
                  WA
                  98032

              
	
                Pti
                  Technologies, Inc. 

              	
                501
                  Del Norte Blvd, Oxnard, CA 93030

              
	
                Radiant
                  Power Corp 

              	
                6416
                  Parkland Drive, Ste B, Sarasota, FL 34243

              
	
                Rockwell
                  Collins 

              	
                7235
                  Corporate Center Dr., #E, Miami, FL 33126

              
	
                Rockwell
                  Collins 

              	
                15222
                  Del Amo, Tustin, CA 92780

              
	
                Rockwell
                  Collins Avionics 

              	
                5159
                  Southridge Parkway, Atlanta, GA 30349

              
	
                Rockwell
                  Collins Avionics 

              	
                2051
                  Airport Road, Wichita, KS 67209 1949

              
	
                Rockwell
                  Collins Avionics 

              	
                8304
                  Esters Blvd, Suite 890, Irving, TX 75062-2209

              
	
                Rockwell
                  Collins Avionics 

              	
                620
                  Naches Ave Sw, Renton, WA 98055

              
	
                Rockwell
                  Collins Avionics 

              	
                400
                  Collins Road N.E., Cedar Rapids, IA 52498

              
	
                Rogerson
                  Kratos 

              	
                16940
                  Von Karman, Irvine, CA 92606

              
	
                Rosemount
                  Aerospace Inc 

              	
                1256
                  Trapp Road, Eagan, MN 55121-1217

              
	
                Rosemount
                  Aerospace Inc 

              	
                14300
                  Judicial Road, Burnsville, MN 55306

              
	
                Sargent
                  Aerospace, Inc. 

              	
                12796
                  Nw 107Th Place, Miami, FL 33178

              
	
                Scott
                  Aviation 

              	
                225
                  Erie Street, Service Department, Lancaster, NY 14086

              
	
                Senior
                  Flexonics Inc 

              	
                Metal
                  Belows Division, 1075 Providence Highway, Sharon, MA
                  02067

              
	
                Shaw
                  Aero Devices Inc 

              	
                3580
                  Shaw Blvd., Naples, FL 34117

              

      

      

      

      
        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

      

       

       

      
        
          	
                   

                  
                    REPAIR
                      SUPPLIERS

                  

                   

                

        

        
          	Supplier	Location

        

      

      
        	
                Sicma
                  Aero Seat Services, Inc 

              	
                22030
                  20th Ave. Se Ste 102, Bothell, WA 98021

              
	
                Skyway
                  Communication Holding 

              	
                Aviation
                  Division, 1701 West Northwest Highway, Grapevine, TX
                  76051

              
	
                Smiths
                  Aerospace Activation 

              	
                1700
                  Business Ctr Dr, Duarte, CA 91010

              
	
                Smiths
                  Aerospace Acuation 

              	
                2720
                  W Washington Ave, Yakima, WA 98909

              
	
                Smiths
                  Aerospace Electronic 

              	
                23695
                  Via Del Rio, Yorba Linda, CA 92887

              
	
                Smiths
                  Industries 

              	
                14100
                  Roosevelt Blvd. Dock B, Clearwater, FL 33762-3805

              
	
                Smiths
                  Industries 

              	
                PO
                  Box 5389, 14180 Roosevelt Blvd, Clearwater, FL. 33518

              
	
                Smiths
                  Industries 

              	
                Aerospace
                  & Defense Sys Inc, 740 East National Road, Vandalia, OH
                  45377-3000

              
	
                Smiths
                  Industries 

              	
                3290
                  Patterson Ave., Grand Rapids, MI 49512-1991

              
	
                Smiths
                  Industries Acuation Sys

              	
                110
                  Algonquin Parkway, Ce. Com, Whippany, NJ 07981

              
	
                Sonico
                  Inc 

              	
                Bldg
                  408, Moses Lake, WA 98837

              
	
                Soundair
                  

              	
                1826
                  Bickford Avenue, Snohomish, WA 98290

              
	
                Southern
                  Aeroparts, Inc. 

              	
                10827
                  E. Marshall Street, Suite 101, Tulsa, OK 74116

              
	
                Spectra
                  Lux Corporation 

              	
                12335
                  134th Ct. N.E., Redmond, WA 98052

              
	
                Spirit
                  Aerosystems, Inc. 

              	
                3801
                  S. Oliver, Wichita, KS 67277-2207

              
	
                Sunrise
                  Avionics Inc 

              	
                511
                  W Guadalupe #24, Gilbert, AZ 85233

              
	
                Telair
                  International 

              	
                1950
                  Williams Drive, Oxnard, CA 93030

              
	
                Teledyne
                  Controls 

              	
                12333
                  West Olympic Boulevard, Los Angeles, CA 90064

              
	
                Thales
                  Avionics, Inc. 

              	
                641
                  Industry Drive, Seattle, WA 98188

              
	
                Transdigital
                  Comm Corporation 

              	
                601
                  Lunar Avenue, Brea, CA 92821

              
	
                Triumph
                  Airborne Structures 

              	
                115
                  Centennial Drive, Hot Springs, AR 71913

              
	
                Triumph
                  Thermal Systems Inc 

              	
                200
                  Railroad Street, Forest, OH 45843

              
	
                Tyco
                  Electronics 

              	
                Div.-Cii
                  Technologies, 175 North Diamond Street, Mansfield, OH
                  44902

              
	
                Unicorp
                  Systems Inc 

              	
                2625
                  West 40th Place, Tulsa, OK 74107-5417

              
	
                Unison
                  Industries 

              	
                5345
                  State Hwy 12, Norwich, NY 13815

              
	
                Unison
                  Industries 

              	
                7575
                  Bay Meadows Way, Jacksonville, FL 32256

              
	
                United
                  Instruments Inc 

              	
                3625
                  Comotara Avenue, Oem Warranty Usa Repair Center, Wichita, KS
                  67226

              
	
                US
                  Air Inc 

              	
                Greater
                  Pittsburg Apt, Pittsburg, PA 15231

              
	
                Vibro-Metr
                  Inc 

              	
                10
                  Ammon Drve, Manchester, NH 03103

              
	
                West
                  Coast Specialties Inc 

              	
                3290
                  146th Place Se, Bellevue, WA 98007

              
	
                Whittaker
                  Controls Inc 

              	
                12838
                  Saticoy St, North Hollywood, CA 91605

              
	
                Woodward
                  Governor Co 

              	
                1
                  Woodward Way, Rockton, IL 61072

              
	 	 

      

      

        

        
           

          11

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