Document:

Exhibit 10.8
	 

	 
	 

	 
		REGISTRATION RIGHTS AGREEMENT
	 

	 
		This REGISTRATION RIGHTS AGREEMENT (this
		“Agreement”), dated as of ___________ __, 2007, is entered
		into by and among Babcock & Brown Air Limited, a Bermuda exempted company
		(including its successors, the “Company”),
		and each of the shareholders of the Company that is listed in the signature
		pages hereof (each, a “Principal
		Investor”).
	 

	 
		RECITALS
	 

	 
		WHEREAS, the Company has filed a
		Registration Statement (File No. 333-__________) with the Securities and
		Exchange Commission on Form F-1 (the “IPO Registration Statement”) in connection with the initial public offering
		(the “IPO”) of American Depositary Shares
		(“ADSs”) representing its common shares
		(“Common Shares”);
	 

	 
		WHEREAS, the Company and the Principal
		Investors have entered into a Private Placement Agreement, dated as of
		_________ __, 2007 (the “Private
		Placement Agreement”);
	 

	 
		WHEREAS, pursuant to the Private Placement
		Agreement, upon the closing of the transactions contemplated by the Private
		Placement Agreement, each Principal Investor will subscribe for Common Shares
		in the form of ADSs (the “Shares”) at
		a price per Share equal to the public offering price in the IPO;
	 

	 
		WHEREAS, the Company has agreed to provide
		the Principal Investors with the registration rights specified in this
		Agreement with respect to the Shares held by them or any of their permitted
		transferees, on the terms and subject to the conditions set forth
		herein.
	 

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

	 
		ARTICLE 1
	 

	 
		DEFINITIONS
	 

	 
		1.1 Definitions. The
		following terms shall have the meanings set forth in this Section 1.1: 
	 

	 
		“Exchange Act” means the Securities Exchange Act of 1934, as
		amended, or any similar federal statute, and the rules and regulations
		promulgated by the SEC thereunder.
	 

	 
		“Excluded Registration” means a registration under the Securities Act of
		(i) securities pursuant to one or more Demand Registrations pursuant to
		Section 2 hereof,
	 

	 
		 
	 

	  

	 

	 
		 
	 

	 
	 

	 

	 
		(ii) securities registered on Form S-8 or
		any similar successor form, and (iii) securities registered to effect the
		acquisition of, or combination with, another Person.
	 

	 
		“Holder”
		means (i) each Principal Investor and (ii) any direct or indirect transferee of
		any Principal Investor who shall become a party to this Agreement in accordance
		with Section 2.9 and has agreed in writing to be bound by the terms of
		this Agreement.
	 

	 
		“Person” or
		“person” means any individual, corporation, partnership,
		limited liability company, joint venture, association, joint-stock company,
		trust, unincorporated organization or government or other agency or political
		subdivision thereof.
	 

	 
		“register,”
		“registered” and “registration” refer to a registration effected by preparing and
		filing a registration statement in compliance with the Securities Act, and the
		declaration or ordering of the effectiveness of such registration
		statement.
	 

	 
		“Registrable Shares” means the Shares owned by Holders, together with
		any securities owned by Holders issued with respect to such Shares by way of
		stock dividend or stock split or in connection with a combination of shares,
		recapitalization, merger, consolidation, amalgamation or other reorganization;
		provided, however, that
		Shares that, pursuant to Section 3.1, no longer have registration rights
		hereunder shall not be considered Registrable Shares.
	 

	 
		“Requesting Holders” shall mean any Holder(s) requesting to have its
		(their) Registrable Shares included in any Demand Registration or Shelf
		Registration.
	 

	 
		“SEC” means
		the Securities and Exchange Commission or any other federal agency at the time
		administering the Securities Act.
	 

	 
		“Securities Act” means the Securities Act of 1933, as amended, or
		any similar federal statute, and the rules and regulations promulgated by the
		SEC thereunder.
	 

	 
		1.2 Other Terms. For
		purposes of this Agreement, the following terms have the meanings set forth in
		the section or agreement indicated.
	 

	 
		 
	 

	 
			
				
				  Term
				

			 	
				
				   
				

			 	
				
				  Section
				

			 
	
				
				  ADSs
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 
	
				
				  Adverse Effect
				

			 	
				
				   
				

			 	
				
				  Section 2.1.5
				

			 
	
				
				  Advice
				

			 	
				
				   
				

			 	
				
				  Section 2.6
				

			 
	
				
				  Agreement
				

			 	
				
				   
				

			 	
				
				  Introductory Paragraph
				

			 
	
				
				  Common Shares
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 
	
				
				  Company
				

			 	
				
				   
				

			 	
				
				  Introductory Paragraph
				

			 
	
				
				  Demand Registration
				

			 	
				
				   
				

			 	
				
				  Section 2.1.1(a)
				

			 
	
				
				  Demanding Shareholders
				

			 	
				
				   
				

			 	
				
				  Section 2.1.1(a)
				

			 
	
				
				  Demand Request
				

			 	
				
				   
				

			 	
				
				  Section 2.1.1(a)
				

			 
	
				
				  Inspectors
				

			 	
				
				   
				

			 	
				
				  Section 2.5(xiii)
				

			 
	
				
				  IPO
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 

 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	  

	 

	 
			
				
				  IPO Registration Statement
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 
	
				
				  NASD
				

			 	
				
				   
				

			 	
				
				  Section 2.7
				

			 
	
				
				  Piggyback Registration
				

			 	
				
				   
				

			 	
				
				  Section 2.2.1
				

			 
	
				
				  Principal Investors
				

			 	
				
				   
				

			 	
				
				  Introductory Paragraph
				

			 
	
				
				  Private Placement Agreement
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 
	
				
				  Records
				

			 	
				
				   
				

			 	
				
				  Section 2.5(xiii)
				

			 
	
				
				  Registration Statement
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 
	
				
				  Required Filing Date
				

			 	
				
				   
				

			 	
				
				  Section 2.1.1(b)
				

			 
	
				
				  Seller Affiliates
				

			 	
				
				   
				

			 	
				
				  Section 2.8.1
				

			 
	
				
				  Shares
				

			 	
				
				   
				

			 	
				
				  Recitals
				

			 
	
				
				  Shelf Registration
				

			 	
				
				   
				

			 	
				
				  Section 2.1.2
				

			 
	
				
				  Suspension Notice
				

			 	
				
				   
				

			 	
				
				  Section 2.6
				

			 

 

	 
		1.3 Rules of Construction. Unless the context otherwise requires
	 

	 
		(1) a term has the meaning assigned to
		it;
	 

	 
		(2) “or” is not exclusive;
	 

	 
		(3) words in the singular include the
		plural, and words in the plural include the singular;
	 

	 
		(4) provisions apply to successive events
		and transactions; and
	 

	 
		(5) “herein,” “hereof”
		and other words of similar import refer to this Agreement as a whole and not to
		any particular Article, Section or other subdivision.
	 

	 
		ARTICLE 2
	 

	 
		REGISTRATION RIGHTS
	 

	 
		2.1 Demand Registration.
	 

	 
		2.1.1 Request for Registration.
	 

	 
		(a) Commencing on the date hereof, any
		Holder or Holders of Registrable Shares shall have the right to require the
		Company to file a registration statement on Form F-1 or F-3 or any similar or
		successor to such forms under the Securities Act for a public offering of all
		(but not part) of its or their Registrable Shares (a “Demand Registration”), by delivering to the Company written notice
		stating that such right is being exercised, naming, if applicable, the Holders
		whose Registrable Shares are to be included in such registration (collectively,
		the “Demanding
		Shareholders”), specifying the
		number of each such Demanding Shareholder’s Registrable Shares to be
		included in such registration and, subject to Section 2.1.3 hereof, describing
		the intended method of distribution thereof (a “Demand Request”). The IPO Registration Statement shall not
		constitute a Demand Registration for any purpose under this Agreement.
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		(b) Subject to Section 2.1.6,
		the Company shall file the registration statement in respect of a Demand
		Registration as soon as practicable following the expiration of the period
		within which Holders electing to include their Registrable Shares in such
		Demand Registration are required to provide notice to such effect pursuant to
		Section 2.1.4 (the date on which it first becomes so practicable make
		such filing following the expiration of such period, the “Required Filing Date”) and shall use reasonable best efforts to cause
		the same to be declared effective by the SEC as promptly as practicable after
		such filing; provided, however, that
		the Company shall not be obligated to file a registration statement in respect
		of a Demand Registration pursuant to Section 2.1.1(a)
		unless the Registrable Shares subject to such Demand Request, plus any
		Registrable Shares elected by Holders to be included in such Demand
		Registration pursuant to Section
		2.1.4, have an aggregate market value
		that is equal to at least $50 million as of the date of the expiration of the
		period within which Holders are required to elect to include their Registrable
		Shares in such Demand Registration pursuant to Section 2.1.4.
		The Company shall have the right to include Shares to be offered and sold by it
		in a primary offering in any Demand Registration.
	 

	 
		2.1.2 Shelf Registration. With respect to any Demand Registration, the
		Requesting Holders may request the Company to effect a registration of the
		Registrable Shares under a registration statement pursuant to Rule 415 under
		the Securities Act (or any successor rule) (a “Shelf Registration”).
	 

	 
		2.1.3  Selection of Underwriters. At
		the request of a majority of the Requesting Holders, the offering of
		Registrable Shares pursuant to a Demand Registration shall be in the form of an
		underwritten offering. The Company shall select the investment banking firm or
		firms to manage the underwritten offering. No Holder may participate in any
		registration pursuant to Section 2.1.1 unless such Holder (x) agrees to
		sell such Holder’s Registrable Shares on the basis provided in any
		underwriting arrangements described above and (y) completes and executes all
		questionnaires, powers of attorney, indemnities, underwriting agreements and
		other documents reasonably required under the terms of such underwriting
		arrangements; provided, however, that no such Holder shall be
		required to make any representations or warranties in connection with any such
		registration other than representations and warranties as to (i) such
		Holder’s ownership of his or its Registrable Shares to be transferred free
		and clear of all liens, claims, and encumbrances, (ii) such Holder’s power
		and authority to effect such transfer, and (iii) such matters pertaining to
		compliance with securities laws as may be reasonably requested;
		provided, further, however, that the obligation of such
		Holder to indemnify pursuant to any such underwriting arrangements shall be
		several, not joint and several, among such Holders selling Registrable Shares,
		and the liability of each such Holder will be in proportion thereto, and
		provided,  further, that such liability will be limited to the
		net amount received by such Holder from the sale of his or its Registrable
		Shares pursuant to such registration.
	 

	 
		2.1.4 Rights of Nonrequesting Holders. Upon receipt of any Demand Request, the Company shall
		promptly (but in any event within ten (10) days) give written notice of such
		proposed Demand Registration to all other Holders, who shall have the right,
		exercisable by written notice to the Company within twenty (20) days of their
		
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		receipt of the Company’s notice, to
		elect to include their Registrable Shares in such Demand Registration. All
		Holders requesting to have their Registrable Shares included in a Demand
		Registration in accordance with the preceding sentence shall be deemed to be
		“Requesting Holders” for purposes of this Section 2.1.
	 

	 
		2.1.5 Priority on Demand Registrations. No securities to be sold for the account of any Person
		other than a Requesting Holder or the Company shall be included in a Demand
		Registration unless the managing underwriter or underwriters shall advise the
		Requesting Holders and the Company in writing that the inclusion of such
		securities will not adversely affect the price, timing or distribution of the
		offering or otherwise adversely affect its success (an “Adverse Effect”). Furthermore, if the managing underwriter or
		underwriters shall advise the Requesting Holders and the Company that, even
		after exclusion of all securities of other Persons pursuant to the immediately
		preceding sentence, the amount of Registrable Shares proposed to be included in
		such Demand Registration by Requesting Holders and any securities to be
		included by the Company is sufficiently large to cause an Adverse Effect, the
		Company shall include in such registration statement (i) first, the securities
		the Company proposes to sell, and (ii) second, the Registrable Shares of the
		Requesting Holders requested to be included in such Demand Registration, equal
		the number of shares which the Requesting Holders and the Company are so
		advised can be sold in such offering without an Adverse Effect and such shares
		shall be allocated pro rata among the Requesting Holders on the basis of the
		number of Registrable Shares requested to be included in such registration by
		each such Requesting Holder.
	 

	 
		2.1.6 Deferral of Filing. The Company may defer the filing (but not the
		preparation) of a registration statement required by Section 2.1
		until a date not later than ninety (90) days after the Required Filing Date if
		(i) at the time the Company receives the Demand Request, the Company is engaged
		in confidential negotiations or other confidential business activities,
		disclosure of which would be required in such registration statement (but would
		not be required if such registration statement were not filed), and the Board
		of Directors of the Company or a committee of the Board of Directors of the
		Company determines in good faith that such disclosure would be materially
		detrimental to the Company and its shareholders, or (ii) prior to receiving the
		Demand Request, the Company had determined to effect a registered underwritten
		public offering of the Company’s securities for the Company’s account
		and the Company had taken substantial steps (including, but not limited to,
		selecting a managing underwriter for such offering) and is proceeding with
		reasonable diligence to effect such offering. A deferral of the filing of a
		registration statement pursuant to this Section 2.1.6
		shall be lifted, and the requested registration statement shall be filed
		forthwith, if, in the case of a deferral pursuant to clause (i) of the
		preceding sentence, the negotiations or other activities are disclosed or
		terminated, or, in the case of a deferral pursuant to clause (ii) of the
		preceding sentence, the proposed registration for the Company’s account is
		abandoned. In order to defer the filing of a registration statement pursuant to
		this Section 2.1.6,
		the Company shall promptly (but in any event within ten (10) days), upon
		determining to seek such deferral, deliver to each Requesting Holder a
		certificate signed by an executive officer of the Company stating that the
		Company is deferring such filing pursuant to this Section 2.1.6
		and a general statement of the reason for such deferral and 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		an approximation of the anticipated delay.
		Within twenty (20) days after receiving such certificate, the holders of a
		majority of the Registrable Shares held by the Requesting Holders and for which
		registration was previously requested may withdraw such Demand Request by
		giving notice to the Company; if withdrawn, the Demand Request shall be deemed
		not to have been made for all purposes of this Agreement. 
	 

	 
		2.1.7 Limitation
		on Demand Registrations. The Company
		shall not be obligated (i) to file a registration statement in respect of a
		Demand Registration pursuant to Section 2.1.1(a) within one hundred and eighty
		(180) days after the effective date of the IPO Registration Statement or (ii)
		to effect more than one Demand Registration in the period commencing one
		hundred and eighty (180) days after the effective date of the IPO Registration
		Statement and ending three hundred and sixty (360) days after the effective
		date of the IPO Registration Statement. Following three hundred and sixty (360)
		days after the effective date of the IPO Registration Statement, each Holder
		will be entitled to initiate no more than one Demand Registration, and the
		Company shall not be obligated to effect more than one Demand Registration,
		provided that a request for registration will not count for the purposes of
		this limitation if (i) all Requesting Holders determine in good faith to
		withdraw (prior to the initial filing of the Registration Statement relating to
		such request) the proposed registration due to marketing or regulatory reasons,
		(ii) the Registration Statement relating to such request is not declared
		effective within 180 days of the date such Registration Statement is first
		filed with the SEC (other than solely by reason of the requesting Holder having
		refused to proceed) and such Requesting Holder withdraws its Demand Request
		prior to such Registration Statement being declared effective, (iii) prior
		to the sale of at least 90% of the Registrable Shares included in the
		applicable registration relating to such request, such registration is
		adversely affected by any stop order, injunction or other order or requirement
		of the SEC or other governmental agency or court for any reason and the Company
		fails to have such stop order, injunction or other order or requirement
		removed, withdrawn or resolved to the Requesting Holder’s reasonable
		satisfaction within 30 days of the date of such order, (iv) any of the
		Registrable Shares requested by the Holder to be included in the registration
		are not so included pursuant to Section 2.1.5 and such Holder does not make another request for
		registration for at least six months following such initial request, (v) the
		Company is not obligated to file a registration statement pursuant to
		Section 2.1.1 (a) as a result of such request because the Registrable
		Shares to be included in the registration statement do not have a market value
		of at least $50 million as required by the proviso to Section 2.1.1(b), or (v) the conditions to closing specified in the
		underwriting agreement or purchase agreement entered into in connection with
		the registration relating to such request are not satisfied (other than as a
		result of a material default or breach thereunder by any member of the
		requesting Holders). Notwithstanding the foregoing, the Company will pay all
		registration expenses in connection with any request for registration pursuant
		to Section 2.1.1 regardless of whether or not such request counts
		toward the limitation set forth above.
	 

	 
		2.2 Piggyback Registrations.
	 

	 
		2.2.1 Right to Piggyback. Each time the Company proposes to register any of its
		equity securities (other than pursuant to an Excluded Registration) under the
		
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		Securities Act for sale to the public
		(whether for the account of the Company or the account of any securityholder of
		the Company) (a “Piggyback
		Registration”), the Company shall
		give prompt written notice to each Holder of Registrable Shares (which notice
		shall be given not less than twenty (20) days prior to the anticipated filing
		date of the Company’s registration statement), which notice shall offer
		each such Holder the opportunity to include any or all of its Registrable
		Shares in such registration statement, subject to the limitations contained in
		Section 2.2.2 hereof. Each Holder that desires to have its
		Registrable Shares included in such registration statement shall so advise the
		Company in writing (stating the number of shares desired to be registered)
		within ten (10) days after the date of such notice from the Company. Any Holder
		shall have the right to withdraw such Holder’s request for inclusion of
		such Holder’s Registrable Shares in any registration statement pursuant to
		this Section 2.2.1 by
		giving written notice to the Company of such withdrawal prior to the date of
		filing of the registration statement. Subject to Section 2.2.2
		below, the Company shall include in such registration statement all such
		Registrable Shares so requested to be included therein; provided,
		however, that the Company may at any time withdraw or cease
		proceeding with any such registration if it shall at the same time withdraw or
		cease proceeding with the registration of all other equity securities
		originally proposed to be registered. 
	 

	 
		2.2.2 Priority on Piggyback
		Registrations. 
	 

	 
		(a) If a Piggyback Registration is an
		underwritten offering and was initiated by the Company, and if the managing
		underwriter advises the Company that the inclusion of Registrable Shares
		requested to be included in the Registration Statement would cause an Adverse
		Effect, the Company shall include in such registration statement (i) first, the
		securities the Company proposes to sell, (ii) second, the Registrable Shares
		requested to be included in such registration, pro rata among the Holders of
		such Registrable Shares on the basis of the number of Registrable Shares owned
		by each such Holder, and (iii) third, any other securities requested to be
		included in such registration. If as a result of the provisions of this
		Section 2.2.2(a) any Holder shall not be entitled to include all
		Registrable Shares in a registration that such Holder has requested to be so
		included, such Holder may withdraw such Holder’s request to include
		Registrable Shares in such registration statement. 
	 

	 
		(b) If a Piggyback Registration is an
		underwritten offering and was initiated by a security holder of the Company,
		and if the managing underwriter advises the Company that the inclusion of
		Registrable Shares requested to be included in the Registration Statement would
		cause an Adverse Effect, the Company shall include in such registration
		statement (i) first, the securities requested to be included therein by the
		security holders requesting such registration and the Registrable Shares
		requested to be included in such registration, pro rata among the holders of
		such securities on the basis of the number of securities owned by each such
		holder, and (ii) second, any other securities requested to be included in such
		registration (including securities to be sold for the account of the Company).
		If as a result of the provisions of this Section 2.2.2(b)
		any Holder shall not be entitled to include all Registrable Shares in a
		registration that such Holder has requested to be so included, such Holder may
		withdraw such Holder’s request to include Registrable Shares in such
		registration statement.
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		(c) No Holder may participate in any
		registration statement in respect of a Piggyback Registration hereunder unless
		such Holder (x) agrees to sell such Holder’s Registrable Shares on the
		basis provided in any underwriting arrangements approved by the Company and (y)
		completes and executes all questionnaires, powers of attorney, indemnities,
		underwriting agreements and other documents, each in customary form, reasonably
		required under the terms of such underwriting arrangements; provided,
		however, that no such Holder shall be required to make any
		representations or warranties in connection with any such registration other
		than representations and warranties as to (i) such Holder’s ownership of
		his or its Registrable Shares to be sold or transferred free and clear of all
		liens, claims, and encumbrances, (ii) such Holder’s power and authority to
		effect such transfer, and (iii) such matters pertaining to compliance with
		securities laws as may be reasonably requested; provided,
		further, however, that the obligation of such Holder to
		indemnify pursuant to any such underwriting arrangements shall be several, not
		joint and several, among such Holders selling Registrable Shares, and the
		liability of each such Holder will be in proportion to, and provided,
		further, that such liability will be limited to, the net amount
		received by such Holder from the sale of his or its Registrable Shares pursuant
		to such registration.
	 

	 
		2.3 SEC Form F-3.
		The Company shall use its reasonable best efforts to cause Demand Registrations
		to be registered on Form F-3 (or any successor form) once the Company becomes
		eligible to use Form F-3, and if the Company is not then eligible under the
		Securities Act to use Form F-3, Demand Registrations shall be registered on the
		form for which the Company then qualifies. The Company shall use its reasonable
		best efforts to become eligible to use Form F-3 and, after becoming eligible to
		use Form F-3, shall use its reasonable best efforts to remain so
		eligible.
	 

	 
		2.4 Holdback Agreements. 
	 

	 
		(a) The Company shall not effect any public
		sale or distribution of its equity securities, or any securities convertible
		into or exchangeable or exercisable for such securities, during the seven (7)
		days prior to and during the ninety (90)-day period beginning on the effective
		date of any registration statement in connection with a Demand Registration
		(other than a Shelf Registration) or a Piggyback Registration, except pursuant
		to registrations on Form F-4 or Form S-8 or any successor form or unless the
		underwriters managing any such public offering otherwise agree. 
	 

	 
		(b) If any Holders of Registrable Shares
		notify the Company in writing that they intend to effect an underwritten sale
		of Shares registered pursuant to a Shelf Registration pursuant to Article 2
		hereof, the Company shall not effect any public sale or distribution of its
		equity securities, or any securities convertible into or exchangeable or
		exercisable for its equity securities, during the ninety (90)-day period
		beginning on the date such notice is received, except pursuant to registrations
		on Form F-4 or Form S-8 or any successor form or unless the underwriters
		managing any such public offering otherwise agree. 
	 

	 
		(c) Each Holder agrees, in the event of an
		underwritten offering by the Company (whether for the account of the Company or
		otherwise), not to offer, sell, 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		contract to sell or otherwise dispose of any
		Registrable Shares, or any securities convertible into or exchangeable or
		exercisable for such securities, including any sale pursuant to Rule 144 under
		the Securities Act (except as part of such underwritten offering), during the
		ninety (90)-day period (or such lesser period as the lead or managing
		underwriters may require) beginning on, the effective date of the registration
		statement for such underwritten offering (or, in the case of an offering
		pursuant to an effective shelf registration statement pursuant to Rule 415, the
		pricing date for such underwritten offering).
	 

	 
		2.5 Registration Procedures. Whenever any Holder has requested that any Registrable
		Shares be registered pursuant to this Agreement, the Company will use its
		reasonable best efforts to effect the registration and the sale of such
		Registrable Shares in accordance with the intended method of disposition
		thereof as promptly as is practicable, and pursuant thereto the Company will as
		expeditiously as possible:
	 

	 
		(i) prepare and file with the SEC, pursuant
		to Section 2.1.1(b) with respect to any Demand Registration, a registration
		statement on any appropriate form under the Securities Act with respect to such
		Registrable Shares and use its reasonable best efforts to cause such
		registration statement to become effective, provided that as far in advance as
		practicable before filing such registration statement or any amendment thereto,
		the Company will furnish to the selling Holders copies of reasonably complete
		drafts of all such documents prepared to be filed (including exhibits), and any
		such Holder shall have the opportunity to object to any information contained
		therein and the Company will make corrections reasonably requested by such
		Holder with respect to such information prior to filing any such registration
		statement or amendment;
	 

	 
		(ii) except in the case of a Shelf
		Registration, prepare and file with the SEC such amendments, post-effective
		amendments, and supplements to such registration statement and the prospectus
		used in connection therewith as may be necessary to keep such registration
		statement effective for a period of not less than one hundred eighty (180) days
		(or such lesser period as is necessary for the underwriters in an underwritten
		offering to sell unsold allotments) and comply with the provisions of the
		Securities Act with respect to the disposition of all securities covered by
		such registration statement during such period in accordance with the intended
		methods of disposition by the sellers thereof set forth in such registration
		statement;
	 

	 
		(iii) in the case of a Shelf Registration,
		prepare and file with the SEC such amendments and supplements to such
		registration statement and the prospectus used in connection therewith as may
		be necessary to keep such registration statement effective and to comply with
		the provisions of the Securities Act with respect to the disposition of all
		Registrable Shares subject thereto for a period ending on the earlier of (x)
		twenty four (24) months after the effective date of such registration statement
		and (y) the 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		date on which all the Registrable Shares
		subject thereto have been sold pursuant to such registration statement;
	 

	 
		(iv) furnish to each seller of Registrable
		Shares and the underwriters of the securities being registered such number of
		copies of such registration statement, each amendment and supplement thereto,
		the prospectus included in such registration statement (including each
		preliminary prospectus), any documents incorporated by reference therein and
		such other documents as such seller or underwriters may reasonably request in
		order to facilitate the disposition of the Registrable Shares owned by such
		seller or the sale of such securities by such underwriters (it being understood
		that, subject to Section
		2.6 and the requirements of the
		Securities Act and applicable state securities laws, the Company consents to
		the use of the prospectus and any amendment or supplement thereto by each
		seller and the underwriters in connection with the offering and sale of the
		Registrable Shares covered by the registration statement of which such
		prospectus, amendment or supplement is a part);
	 

	 
		(v) use its reasonable best efforts to
		register or qualify such Registrable Shares under such other securities or blue
		sky laws of such jurisdictions as the managing underwriter reasonably requests
		(or, in the event the registration statement does not relate to an underwritten
		offering, as the holders of a majority of such Registrable Shares may
		reasonably request); use its reasonable best efforts to keep each such
		registration or qualification (or exemption therefrom) effective during the
		period in which such registration statement is required to be kept effective;
		and do any and all other acts and things which may be reasonably necessary or
		advisable to enable each seller to consummate the disposition of the
		Registrable Shares owned by such seller in such jurisdictions (provided,
		however, that the Company will not be required to (A) qualify
		generally to do business in any jurisdiction where it would not otherwise be
		required to qualify but for this subparagraph or (B) consent to general service
		of process in any such jurisdiction);
	 

	 
		(vi) promptly notify each seller and each
		underwriter and (if requested by any such Person) confirm such notice in
		writing (A) when a prospectus or any prospectus supplement or post-effective
		amendment has been filed and, with respect to a registration statement or any
		post-effective amendment, when the same has become effective, (B) of the
		issuance by any state securities or other regulatory authority of any order
		suspending the qualification or exemption from qualification of any of the
		Registrable Shares under state securities or “blue sky” laws or the
		initiation of any proceedings for that purpose, and (C) of the happening of any
		event which makes any statement made in a registration statement or related
		prospectus untrue or which requires the making of any changes in such
		registration statement, prospectus or documents so that they will not contain
		any untrue statement of a material fact or omit to state any 
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
	 

	 

	 
		material fact required to be stated therein
		or necessary to make the statements therein not misleading, and, as promptly as
		practicable thereafter, prepare and file with the SEC and furnish a supplement
		or amendment to such prospectus so that, as thereafter deliverable to the
		purchasers of such Registrable Shares, such prospectus will not contain any
		untrue statement of a material fact or omit a material fact necessary to make
		the statements therein, in light of the circumstances under which they were
		made, not misleading;
	 

	 
		(vii) make reasonably available members of
		management of the Company, as selected by the Holders of a majority of the
		Registrable Shares included in such registration, for assistance in the selling
		effort relating to the Registrable Shares covered by such registration,
		including, but not limited to, the participation of such members of the
		Company’s management in road show presentations; 
	 

	 
		(viii) otherwise use its reasonable best
		efforts to comply with all applicable rules and regulations of the SEC,
		including the Securities Act and the Exchange Act and the rules and regulations
		promulgated thereunder, and make generally available to the Company’s
		securityholders an earnings statement satisfying the provisions of Section
		11(a) of the Securities Act no later than thirty (30) days after the end of the
		twelve (12) month period beginning with the first day of the Company’s
		first fiscal quarter commencing after the effective date of a registration
		statement, which earnings statement shall cover said twelve (12) month period,
		and which requirement will be deemed to be satisfied if the Company timely
		files complete and accurate information on Forms 20-F and 6-K under the
		Exchange Act and otherwise complies with Rule 158 under the Securities
		Act;
	 

	 
		(ix) if requested by the managing
		underwriter or any seller promptly incorporate in a prospectus supplement or
		post-effective amendment such information as the managing underwriter or any
		seller reasonably requests to be included therein, including, without
		limitation, with respect to the Registrable Shares being sold by such seller,
		the purchase price being paid therefor by the underwriters and with respect to
		any other terms of the underwritten offering of the Registrable Shares to be
		sold in such offering, and promptly make all required filings of such
		prospectus supplement or post-effective amendment;
	 

	 
		(x) cooperate with the sellers and the
		managing underwriter to facilitate the timely preparation and delivery of
		certificates (which shall not bear any restrictive legends unless required
		under applicable law) representing securities sold under any registration
		statement, and enable such securities to be in such denominations and
		registered in such names as the managing underwriter or such sellers may
		request and keep
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
	 

	 

	 
		available and make available to the
		Company’s transfer agent prior to the effectiveness of such registration
		statement a supply of such certificates;
	 

	 
		(xi) promptly make available for inspection
		by any seller, any underwriter participating in any disposition pursuant to any
		registration statement, and any attorney, accountant or other agent or
		representative retained by any such seller or underwriter (collectively, the
		“Inspectors”), all financial and other records, pertinent
		corporate documents and properties of the Company (collectively, the
		“Records”), as shall be reasonably necessary to enable them
		to exercise their due diligence responsibility, and cause the Company’s
		officers, directors and employees to supply all information requested by any
		such Inspector in connection with such registration statement; provided,
		however, that, unless the disclosure of such Records is
		necessary to avoid or correct a misstatement or omission in the registration
		statement or the release of such Records is ordered pursuant to a subpoena or
		other order from a court of competent jurisdiction, the Company shall not be
		required to provide any information under this subparagraph (x) if (A) the
		Company believes, after consultation with counsel for the Company, that to do
		so would cause the Company to forfeit an attorney-client privilege that was
		applicable to such information or (B) if either (1) the Company has requested
		and been granted from the SEC confidential treatment of such information
		contained in any filing with the SEC or documents provided supplementally or
		otherwise or (2) the Company reasonably determines in good faith that such
		Records are confidential and so notifies the Inspectors in writing, unless
		prior to furnishing any such information with respect to clause (B) such Holder
		of Registrable Shares requesting such information agrees to enter into a
		confidentiality agreement in customary form and subject to customary
		exceptions; and provided, further, that
		each Holder of Registrable Shares agrees that it will, upon learning that
		disclosure of such Records is sought in a court of competent jurisdiction, give
		notice to the Company and allow the Company, at its expense, to undertake
		appropriate action and to prevent disclosure of the Records deemed
		confidential;
	 

	 
		(xii) furnish to each seller and underwriter
		a signed counterpart of (A) an opinion or opinions of counsel to the Company,
		and (B) a comfort letter or comfort letters from the Company’s independent
		public accountants, each in customary form and covering such matters of the
		type customarily covered by opinions or comfort letters, as the case may be, as
		the sellers or managing underwriter reasonably requests;
	 

	 
		(xiii) cause the Registrable Shares included
		in any registration statement to be (A) listed on each securities exchange, if
		any, on which similar securities issued by the Company are then listed, or (B)
		quoted on the National Association of Securities Dealers, Inc. Automated
		Quotation System or the Nasdaq National Market if similar securities issued by
		the Company are quoted thereon;
	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
	 

	 

	 
		(xiv) provide a transfer agent and registrar
		for all Registrable Shares registered hereunder;
	 

	 
		(xv) cooperate with each seller and each
		underwriter participating in the disposition of such Registrable Shares and
		their respective counsel in connection with any filings required to be made
		with the National Association of Securities Dealers, Inc.;
	 

	 
		(xvi) during the period when the prospectus
		is required to be delivered under the Securities Act, promptly file all
		documents required to be filed with the SEC pursuant to Sections 13(a), 13(c),
		14 or 15(d) of the Exchange Act;
	 

	 
		(xvii) notify each seller of Registrable
		Shares promptly of any request by the SEC for the amending or supplementing of
		such registration statement or prospectus or for additional information;

	 

	 
		(xviii) enter into such agreements
		(including underwriting agreements in the managing underwriter’s customary
		form) as are customary in connection with an underwritten registration;
		and
	 

	 
		(xix) advise each seller of such Registrable
		Shares, promptly after it shall receive notice or obtain knowledge thereof, of
		the issuance of any stop order by the SEC suspending the effectiveness of such
		registration statement or the initiation or threatening of any proceeding for
		such purpose and promptly use its reasonable best efforts to prevent the
		issuance of any stop order or to obtain its withdrawal at the earliest possible
		moment if such stop order should be issued.
	 

	 
		2.6 Suspension of Dispositions. Each Holder agrees by acquisition of any Registrable
		Shares that, upon receipt of any notice (a “Suspension Notice”) from the Company of the happening of any event
		of the kind described in Section
		2.5(vi)(C) such Holder will forthwith
		discontinue disposition of Registrable Shares until such Holder’s receipt
		of the copies of the supplemented or amended prospectus, or until it is advised
		in writing (the “Advice”) by
		the Company that the use of the prospectus may be resumed, and has received
		copies of any additional or supplemental filings which are incorporated by
		reference in the prospectus, and, if so directed by the Company, such Holder
		will deliver to the Company all copies, other than permanent file copies then
		in such Holder’s possession, of the prospectus covering such Registrable
		Shares current at the time of receipt of such notice. In the event the Company
		shall give any such notice, the time period regarding the effectiveness of
		registration statements set forth in Sections 2.5(ii)
		and 2.5(iii) hereof shall be extended by the number of days during
		the period from and including the date of the giving of the Suspension Notice
		to and including the date when each seller of Registrable Shares covered by
		such registration statement shall have received the copies of the supplemented
		or amended prospectus or the Advice. The Company shall use its reasonable best
		efforts and take such actions as are reasonably necessary to render the Advice
		as promptly as practicable.
	 

	 
		
	 

	 
		13
	 

	 
		 
	 

	 
	 

	 

	 
		2.7 Registration Expenses. All fees and expenses incident to any registration
		including, without limitation, the Company’s performance of or compliance
		with this Article 2, all registration and filing fees, all fees and
		expenses associated with filings required to be made with the National
		Association of Securities Dealers, Inc. (“NASD”)
		(including, if applicable, the reasonable fees and expenses of any
		“qualified independent underwriter” as such term is defined in
		Schedule E of the By-Laws of the NASD, and of its counsel), as may be required
		by the rules and regulations of the NASD, fees and expenses of compliance with
		securities or “blue sky” laws (including reasonable fees and
		disbursements of counsel in connection with “blue sky” qualifications
		of the Registrable Shares), rating agency fees, printing expenses (including
		expenses of printing certificates for the Registrable Shares in a form eligible
		for deposit with Depository Trust Company and of printing prospectuses),
		messenger and delivery expenses, the fees and expenses incurred in connection
		with any listing or quotation of the Registrable Shares, fees and expenses of
		counsel for the Company and its independent certified public accountants
		(including the expenses of any special audit or “cold comfort”
		letters required by or incident to such performance), the fees and expenses of
		any special experts retained by the Company in connection with such
		registration, and the fees and expenses of other persons retained by the
		Company, will be borne by the Company (unless paid by a security holder that is
		not a Holder for whose account the registration is being effected) whether or
		not any registration statement becomes effective; provided,
		however, that any underwriting discounts, commissions, or fees
		attributable to the sale of the Registrable Shares will be borne by the Holders
		pro rata on the basis of the number of shares so registered and the fees and
		expenses of any counsel, accountants, or other persons retained or employed by
		any Holder will be borne by such Holder.
	 

	 
		2.8
		Indemnification.
	 

	 
		2.8.1 The Company
		agrees to indemnify and reimburse, to the fullest extent permitted by law, each
		seller of Registrable Shares, and each of its employees, advisors, agents,
		representatives, partners, officers, and directors and each Person who controls
		such seller (within the meaning of the Securities Act or the Exchange Act) and
		any agent or investment advisor thereof (collectively, the
		“Seller Affiliates”) (A) against any and all losses, claims, damages,
		liabilities, and expenses, joint or several (including, without limitation,
		attorneys’ fees and disbursements except as limited by Section 2.8.3) based upon, arising out of, related to or resulting
		from any untrue or alleged untrue statement of a material fact contained in any
		registration statement, prospectus, preliminary prospectus, issuer free writing
		prospectus (as such term is defined in Rule 433 of the Securities Act) or any
		amendment thereof or supplement thereto, or any omission or alleged omission of
		a material fact required to be stated therein or necessary to make the
		statements therein not misleading, (B) against any and all loss, liability,
		claim, damage, and expense whatsoever, as incurred, to the extent of the
		aggregate amount paid in settlement of any litigation or investigation or
		proceeding by any governmental agency or body, commenced or threatened, or of
		any claim whatsoever based upon, arising out of, related to or resulting from
		any such untrue statement or omission or alleged untrue statement or omission,
		and (C) against any and all costs and expenses (including reasonable fees and
		disbursements of counsel) as may be reasonably incurred in investigating,
		preparing, or defending against any litigation, or investigation 
	 

	 
		 
	 

	 
		14
	 

	 
		 
	 

	 
	 

	 

	 
		or proceeding by any governmental agency or
		body, commenced or threatened, or any claim whatsoever based upon, arising out
		of, related to or resulting from any such untrue statement or omission or
		alleged untrue statement or omission, or such violation of the Securities Act
		or Exchange Act, to the extent that any such expense or cost is not paid under
		subparagraph (A) or (B) above; except insofar as any such statements are made
		in reliance upon and in strict conformity with information furnished in writing
		to the Company by such seller or any Seller Affiliate for use therein or arise
		from such seller’s or any Seller Affiliate’s failure to deliver a
		copy of the registration statement or prospectus or any amendments or
		supplements thereto after the Company has furnished such seller or Seller
		Affiliate with a sufficient number of copies of the same. The reimbursements
		required by this Section
		2.8.1 will be made by periodic payments
		during the course of the investigation or defense, as and when bills are
		received or expenses incurred.
	 

	 
		2.8.2 In connection with any registration
		statement in which a seller of Registrable Shares is participating, each such
		seller will furnish to the Company in writing such information and affidavits
		as the Company reasonably requests for use in connection with any such
		registration statement or prospectus and, to the fullest extent permitted by
		law, each such seller will indemnify the Company and each of its employees,
		advisors, agents, representatives, partners, officers and directors and each
		Person who controls the Company (within the meaning of the Securities Act or
		the Exchange Act) and any agent or investment advisor thereof against any and
		all losses, claims, damages, liabilities, and expenses (including, without
		limitation, reasonable attorneys’ fees and disbursements except as limited
		by Section 2.8.3) resulting from any untrue statement or alleged untrue
		statement of a material fact contained in the registration statement,
		prospectus, or any preliminary prospectus or any amendment thereof or
		supplement thereto or any omission or alleged omission of a material fact
		required to be stated therein or necessary to make the statements therein not
		misleading, but only to the extent that such untrue statement or alleged untrue
		statement or omission or alleged omission is contained in any information or
		affidavit so furnished in writing by such seller or any of its Seller
		Affiliates specifically for inclusion in the registration statement;
		provided that the obligation to indemnify will be several, not
		joint and several, among such sellers of Registrable Shares, and the liability
		of each such seller of Registrable Shares will be in proportion to, and will be
		limited to, the net amount received by such seller from the sale of Registrable
		Shares pursuant to such registration statement; provided,
		however, that such seller of Registrable Shares shall not be
		liable in any such case to the extent that prior to the filing of any such
		registration statement or prospectus or amendment thereof or supplement
		thereto, such seller has furnished in writing to the Company information
		expressly for use in such registration statement or prospectus or any amendment
		thereof or supplement thereto which corrected or made not misleading
		information previously furnished to the Company.
	 

	 
		2.8.3 Any Person entitled to indemnification
		hereunder will (A) give prompt written notice to the indemnifying party of any
		claim with respect to which it seeks indemnification (provided that the failure
		to give such notice shall not limit the rights of such Person) and (B) unless
		in such indemnified party’s reasonable judgment a conflict of interest
		between such indemnified and indemnifying parties may exist with 
	 

	 
		 
	 

	 
		15
	 

	 
		 
	 

	 
	 

	 

	 
		respect to such claim, permit such
		indemnifying party to assume the defense of such claim with counsel reasonably
		satisfactory to the indemnified party; provided,
		however, that any person entitled to indemnification hereunder
		shall have the right to employ separate counsel and to participate in the
		defense of such claim, but the fees and expenses of such counsel shall be at
		the expense of such person unless (X) the indemnifying party has agreed to pay
		such fees or expenses, or (Y) the indemnifying party shall have failed to
		assume the defense of such claim and employ counsel reasonably satisfactory to
		such person. If such defense is not assumed by the indemnifying party as
		permitted hereunder, the indemnifying party will not be subject to any
		liability for any settlement made by the indemnified party without its consent
		(but such consent will not be unreasonably withheld). If such defense is
		assumed by the indemnifying party pursuant to the provisions hereof, such
		indemnifying party shall not settle or otherwise compromise the applicable
		claim unless (1) such settlement or compromise contains a full and
		unconditional release of the indemnified party or (2) the indemnified party
		otherwise consents in writing. An indemnifying party who is not entitled to, or
		elects not to, assume the defense of a claim will not be obligated to pay the
		fees and expenses of more than one counsel for all parties indemnified by such
		indemnifying party with respect to such claim, unless in the reasonable
		judgment of any indemnified party, a conflict of interest may exist between
		such indemnified party and any other of such indemnified parties with respect
		to such claim, in which event the indemnifying party shall be obligated to pay
		the reasonable fees and disbursements of such additional counsel or
		counsels.
	 

	 
		2.8.4 Each party hereto agrees that, if for
		any reason the indemnification provisions contemplated by Section
		2.8.1 or Section 2.8.2
		are unavailable to or insufficient to hold harmless an indemnified party in
		respect of any losses, claims, damages, liabilities, or expenses (or actions in
		respect thereof) referred to therein, then each indemnifying party shall
		contribute to the amount paid or payable by such indemnified party as a result
		of such losses, claims, liabilities, or expenses (or actions in respect
		thereof) in such proportion as is appropriate to reflect the relative fault of
		the indemnifying party and the indemnified party in connection with the actions
		which resulted in the losses, claims, damages, liabilities or expenses as well
		as any other relevant equitable considerations. The relative fault of such
		indemnifying party and indemnified party shall be determined by reference to,
		among other things, whether the untrue or alleged untrue statement of a
		material fact or omission or alleged omission to state a material fact relates
		to information supplied by such indemnifying party or indemnified party, and
		the parties’ relative intent, knowledge, access to information and
		opportunity to correct or prevent such statement or omission. The parties
		hereto agree that it would not be just and equitable if contribution pursuant
		to this Section 2.8.4 were determined by pro rata allocation (even if the
		Holders or any underwriters or all of them were treated as one entity for such
		purpose) or by any other method of allocation which does not take account of
		the equitable considerations referred to in this Section 2.8.4.
		The amount paid or payable by an indemnified party as a result of the losses,
		claims, damages, liabilities, or expenses (or actions in respect thereof)
		referred to above shall be deemed to include any legal or other fees or
		expenses reasonably incurred by such indemnified party in connection with
		investigating or, except as provided in Section 2.8.3,
		defending any such action or claim. Notwithstanding the provisions of this
		Section 
	 

	 
		 
	 

	 
		16
	 

	 
		 
	 

	 
	 

	 

	 
		2.8.4, no Holder shall be required to contribute an amount
		greater than the dollar amount by which the net proceeds received by such
		Holder with respect to the sale of any Registrable Shares exceeds the amount of
		damages which such Holder has otherwise been required to pay by reason of any
		and all untrue or alleged untrue statements of material fact or omissions or
		alleged omissions of material fact made in any registration statement,
		prospectus or preliminary prospectus or any amendment thereof or supplement
		thereto related to such sale of Registrable Shares. No person guilty of
		fraudulent misrepresentation (within the meaning of Section 11(f) of the
		Securities Act) shall be entitled to contribution from any person who was not
		guilty of such fraudulent misrepresentation. The Holders’ obligations in
		this Section 2.8.4 to
		contribute shall be several in proportion to the amount of Registrable Shares
		registered by them and not joint.
	 

	 
		If indemnification is available under this
		Section 2.8, the indemnifying parties shall indemnify each
		indemnified party to the full extent provided in Section 2.8.1
		and Section 2.8.2 without regard to the relative fault of said
		indemnifying party or indemnified party or any other equitable consideration
		provided for in this Section
		2.8.4 subject, in the case of the
		Holders, to the limited dollar amounts set forth in Section 2.8.2.
	 

	 
		2.8.5 The indemnification and contribution
		provided for under this Agreement will remain in full force and effect
		regardless of any investigation made by or on behalf of the indemnified party
		or any officer, director, or controlling Person of such indemnified party and
		will survive the transfer of securities.
	 

	 
		2.9 Transfer of Registration Rights. The rights of each Holder under this Agreement may be
		assigned to any direct or indirect transferee of a Holder who agrees in writing
		to be subject to and bound by all the terms and conditions of this
		Agreement.
	 

	 
		2.10 Rule 144. The
		Company will file the reports required to be filed by it under the Securities
		Act and the Exchange Act and the rules and regulations adopted by the SEC
		thereunder (or, if the Company is not required to file such reports, will, upon
		the request of the Holders, make publicly available other information) and will
		take such further action as the Holders may reasonably request, all to the
		extent required from time to time to enable the Holders to sell Shares without
		registration under the Securities Act within the limitation of the exemptions
		provided by (i) Rule 144 under the Securities Act, as such rule may be amended
		from time to time or (ii) any similar rule or regulation hereafter adopted by
		the SEC. Upon the reasonable request of any Holder, the Company will deliver to
		such parties a written statement as to whether it has complied with such
		requirements and will, at its expense, forthwith upon the request of any such
		Holder, deliver to such Holder a certificate, signed by the Company’s
		principal financial officer, stating (a) the Company’s name, address and
		telephone number (including area code), (b) the Company’s Internal Revenue
		Service identification number, (c) the Company’s SEC file number, (d) the
		number of shares of each class of capital stock outstanding as shown by the
		most recent report or statement published by the Company, and (e) whether the
		Company has filed the reports required to be filed under the Exchange Act for a
		period of at least ninety (90) days prior to the date of such certificate and
		in addition has filed the most recent annual report required to be filed
		thereunder.
	 

	 
		 
	 

	 
		17
	 

	 
		 
	 

	 
	 

	 

	 
		2.11 Preservation of Rights. The Company will not (i) grant any registration rights
		to third parties which are more favorable than or inconsistent with the rights
		granted hereunder or (ii) enter into any agreement, take any action, or permit
		any change to occur, with respect to its securities that violates or
		subordinates the rights expressly granted to the Holders in this
		Agreement.
	 

	 
		ARTICLE 3
	 

	 
		TERMINATION
	 

	 
		3.1 Termination. The
		Holders may exercise the registration rights granted hereunder in such manner
		and proportions as they shall agree among themselves. The registration rights
		hereunder shall cease to apply to any particular Registrable Share when: (a) a
		registration statement with respect to the sale of such Shares (or other
		securities) shall have become effective under the Securities Act and such
		Shares shall have been disposed of in accordance with such registration
		statement; (b) such Shares (or other securities) shall have been sold to the
		public pursuant to Rule 144 under the Securities Act (or any successor
		provision); (c) such Shares (or other securities) shall have been otherwise
		transferred, new certificates for them not bearing a legend restricting further
		transfer shall have been delivered by the Company and subsequent public
		distribution of them shall not require registration or qualification of them
		under the Securities Act or any similar state law then in force; (d) such
		Shares (or other securities) shall have ceased to be outstanding or (e) the
		Holder of such Shares holds less than three percent (3%) of the then
		outstanding Registrable Shares and such Registrable Shares are eligible for
		sale pursuant to Rule 144(k) under the Securities Act (or any successor
		provision). The Company shall promptly upon the request of any Holder furnish
		to such Holder evidence of the number of Registrable Shares then
		outstanding.
	 

	 
		ARTICLE 4
	 

	 
		MISCELLANEOUS
	 

	 
		4.1
		Notices. All notices, requests, claims, demands and other
		communications under this Agreement shall be in writing and shall be given or
		made (and shall be deemed to have been duly given or made upon receipt) by
		delivery in person, by overnight courier service, by facsimile with receipt
		confirmed (followed by delivery of an original via overnight courier service)
		or by registered or certified mail (postage prepaid, return receipt requested)
		to the respective parties at the following addresses (or at such other address
		for a party as shall be specified in a notice given in accordance with this
		Section 4.1):
	 

	 
		If to the Company:
	 

	 
		Babcock & Brown Air Limited
	 

	 
		West Pier
	 

	 
		Dun Laoghaire
	 

	 
		County Dublin, Ireland
	 

	 
		Facsimile: +353 1 _____________
	 

	 
		Attention: Chief Executive Officer
	 

	 
		 
	 

	 
		18
	 

	 
		 
	 

	 
	 

	 

	 
		with a copy to:
	 

	 
		Weil, Gotshal & Manges LLP
	 

	 
		767 Fifth Avenue
	 

	 
		New York, New York 10153
	 

	 
		Facsimile: +1 (212) 310-8007
	 

	 
		Attention: Boris Dolgonos, Esq.
	 

	 
		If to any of the Principal Investors:

	 

	 
		c/o Babcock & Brown Aircraft Management
		LLC
	 

	 
		2 Harrison Street
	 

	 
		6th Floor
	 

	 
		San Francisco CA 94105
	 

	 
		Facsimile: +1 (415) 267-1500
	 

	 
		Attention: Greg Azzara
	 

	 
		If to any other Holder, the address
		indicated for such Holder in the Company’s stock transfer records with
		copies, so long as Principal Investor owns any Registrable Shares, to the
		Principal Investors as provided above.
	 

	 
		Any notice or communication hereunder shall
		be deemed to have been given or made as of the date so delivered if personally
		delivered; when answered back, if telexed; when receipt is acknowledged, if
		telecopied; and five (5) calendar days after mailing if sent by registered or
		certified mail (except that a notice of change of address shall not be deemed
		to have been given until actually received by the addressee).
	 

	 
		Failure to mail a notice or communication to
		a Holder or any defect in it shall not affect its sufficiency with respect to
		other Holders. If a notice or communication is mailed in the manner provided
		above, it is duly given, whether or not the addressee receives it.
	 

	 
		4.2 Authority. Each
		of the parties hereto represents to the other that (i) it has the corporate
		power and authority to execute, deliver and perform this Agreement, (ii) the
		execution, delivery and performance of this Agreement by it has been duly
		authorized by all necessary corporate action and no such further action is
		required, (iii) it has duly and validly executed and delivered this Agreement,
		and (iv) this Agreement is a legal, valid and binding obligation, enforceable
		against it in accordance with its terms subject to applicable bankruptcy,
		insolvency, reorganization, moratorium or other similar laws affecting
		creditors’ rights generally and general equity principles.
	 

	 
		4.3 Governing Law.
		This Agreement shall be governed by and construed and interpreted in accordance
		with the laws of the State of New York irrespective of the choice of laws
		principles of the State of New York other than Section 5-1401 of the General
		Obligations Law of the State of New York.
	 

	 
		 
	 

	 
		19
	 

	 
		 
	 

	 
	 

	 

	 
		4.4 Successors and Assigns. Except as otherwise expressly provided herein, this
		Agreement shall be binding upon and benefit the Company, each Holder, and their
		respective successors and assigns.
	 

	 
		4.5 Severability. If
		any term or other provision of this Agreement is invalid, illegal or incapable
		of being enforced under any Law or as a matter of public policy, all other
		conditions and provisions of this Agreement shall nevertheless remain in full
		force and effect. Upon such determination that any term or other provision is
		invalid, illegal or incapable of being enforced, the parties to this Agreement
		shall negotiate in good faith to modify this Agreement so as to effect the
		original intent of the parties as closely as possible in a mutually acceptable
		manner in order that the transactions contemplated by this Agreement be
		consummated as originally contemplated to the greatest extent possible.
	 

	 
		4.6 Remedies. Any
		dispute, controversy or claim arising out of, or relating to, the transactions
		contemplated by this Agreement, or the validity, interpretation, breach or
		termination of any provision of this Agreement shall be resolved in accordance
		with Article VII of the Master Agreement.
	 

	 
		4.7 Waivers. The
		observance of any term of this Agreement may be waived (either generally or in
		a particular instance and either retroactively or prospectively) by the party
		entitled to enforce such term, but such waiver shall be effective only if it is
		in a writing signed by the party against whom the existence of such waiver is
		asserted. Unless otherwise expressly provided in this Agreement, no delay or
		omission on the part of any party in exercising any right or privilege under
		this Agreement shall operate as a waiver thereof, nor shall any waiver on the
		part of any party of any right or privilege under this Agreement operate as a
		waiver of any other right or privilege under this Agreement nor shall any
		single or partial exercise of any right or privilege preclude any other or
		further exercise thereof or the exercise of any other right or privilege under
		this Agreement. No failure by either party to take any action or assert any
		right or privilege hereunder shall be deemed to be a waiver of such right or
		privilege in the event of the continuation or repetition of the circumstances
		giving rise to such right unless expressly waived in writing by the party
		against whom the existence of such waiver is asserted. 
	 

	 
		4.8 Amendment. This
		Agreement may not be amended or modified in any respect except by a written
		agreement signed by the Company and the Holders of a majority of the then
		outstanding Registrable Shares.
	 

	 
		4.9 Counterparts.
		This Agreement may be executed in one or more counterparts, and by the
		different parties to each such agreement in separate counterparts, each of
		which when executed shall be deemed to be an original but all of which taken
		together shall constitute one and the same agreement. Delivery of an executed
		counterpart of a signature page to this Agreement by facsimile shall be as
		effective as delivery of a manually executed counterpart of any such
		Agreement.
	 

	 
		[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
		LEFT BLANK]
	 

	 
		 
	 

	 
		20
	 

	 
		 
	 

	 
	 

	 

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

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIR
				  LIMITED
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN INVESTMENT
				  HOLDINGS PTY LTD
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN JET-I CO.,
				  LTD
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BBGP AIRCRAFT HOLDINGS
				  LIMITED
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BBAM CO-INVESTOR
				  LIMITED
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIRCRAFT
				  LESSOR NO. 1 LTD
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		21
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  DIRECT INVESTMENT FUND EQUITY
				  TRUST
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  DIRECT INVESTMENT FUND MEZZANINE
				  DEBT TRUST
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  JET-INVESTMENT HOLDINGS
				  LLC
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  NOMURA BABCOCK & BROWN CO.,
				  LTD
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		22Exhibit 10.9
	 

	 
		
		  
		  

		
 
 

	 
		TRUST INDENTURE
	 

	 
		dated as of
		[                             ],
		2007
	 

	 
		among
	 

	 
		BABCOCK & BROWN AIR FUNDING I
		LIMITED,
	 

	 
		as the Issuer
	 

	 
		DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 

	 
		as the Operating Bank and Trustee
	 

	 
		DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 

	 
		as the Cash Manager
	 

	 
		BNP PARIBAS,
	 

	 
		as the Initial Liquidity Facility
		Provider
	 

	 
		and
	 

	 
		AMBAC ASSURANCE CORPORATION
	 

	 
		as the Policy Provider
	 

	 
		
		  
		  

		
 
 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		 
	 

	 
			
				
				  ARTICLE
				  I    DEFINITIONS
				

			 	
				
				  1
				

			 
	
				
				  Section 1.01
				

			 	
				
				  Definitions
				

			 	
				
				  1
				

			 
	
				
				  Section 1.02
				

			 	
				
				  Rules of Construction
				

			 	
				
				  33
				

			 
	
				
				  Section 1.03
				

			 	
				
				  Compliance Certificates and
				  Opinions
				

			 	
				
				  34
				

			 
	
				
				  Section 1.04
				

			 	
				
				  Acts of Holders
				

			 	
				
				  34
				

			 
	
				
				  ARTICLE
				  II    THE NOTES
				

			 	
				
				  35
				

			 
	
				
				  Section 2.01
				

			 	
				
				  Authorized Amount; Terms; Form;
				  Execution and Delivery
				

			 	
				
				  35
				

			 
	
				
				  Section 2.02
				

			 	
				
				  Restrictive Legends
				

			 	
				
				  38
				

			 
	
				
				  Section 2.03
				

			 	
				
				  Registrar and Paying Agent
				

			 	
				
				  40
				

			 
	
				
				  Section 2.04
				

			 	
				
				  Paying Agent to Hold Money in
				  Trust
				

			 	
				
				  41
				

			 
	
				
				  Section 2.05
				

			 	
				
				  Method of Payment
				

			 	
				
				  42
				

			 
	
				
				  Section 2.06
				

			 	
				
				  Minimum Denomination
				

			 	
				
				  42
				

			 
	
				
				  Section 2.07
				

			 	
				
				  Transfer and Exchange;
				  Cancellation
				

			 	
				
				  42
				

			 
	
				
				  Section 2.08
				

			 	
				
				  Mutilated, Destroyed, Lost or Stolen
				  Notes
				

			 	
				
				  44
				

			 
	
				
				  Section 2.09
				

			 	
				
				  Payments of Transfer Taxes
				

			 	
				
				  44
				

			 
	
				
				  Section 2.10
				

			 	
				
				  Refinancing of Initial Notes
				

			 	
				
				  44
				

			 
	
				
				  Section 2.11
				

			 	
				
				  Additional Notes
				

			 	
				
				  47
				

			 
	
				
				  Section 2.12
				

			 	
				
				  Special Transfer Provisions
				

			 	
				
				  49
				

			 
	
				
				  Section 2.13
				

			 	
				
				  [Reserved]
				

			 	
				
				  50
				

			 
	
				
				  Section 2.14
				

			 	
				
				  Statements to Holders
				

			 	
				
				  50
				

			 
	
				
				  Section 2.15
				

			 	
				
				  CUSIP, CCN and ISIN Numbers
				

			 	
				
				  52
				

			 
	
				
				  Section 2.16
				

			 	
				
				  Holder Representations and
				  Covenants
				

			 	
				
				  53
				

			 
	
				
				  ARTICLE
				  III    ACCOUNTS; PRIORITY OF PAYMENTS
				

			 	
				
				  53
				

			 
	
				
				  Section 3.01
				

			 	
				
				  Accounts
				

			 	
				
				  53
				

			 
	
				
				  Section 3.02
				

			 	
				
				  Investments of Cash
				

			 	
				
				  58
				

			 
	
				
				  Section 3.03
				

			 	
				
				  Closing Date Deposits, Withdrawals
				  and Transfers
				

			 	
				
				  59
				

			 
	
				
				  Section 3.04
				

			 	
				
				  Interim Deposits, Transfers and
				  Withdrawals
				

			 	
				
				  61
				

			 
	
				
				  Section 3.06
				

			 	
				
				  Interim Deposits and Withdrawals for
				  Aircraft Sales
				

			 	
				
				  63
				

			 
	
				
				  Section 3.07
				

			 	
				
				  Calculation Date Calculations
				

			 	
				
				  63
				

			 
	
				
				  Section 3.08
				

			 	
				
				  Payment Date First Step Withdrawals
				  and Transfers
				

			 	
				
				  68
				

			 
	
				
				  Section 3.09
				

			 	
				
				  Payment Date Second Step
				  Withdrawals
				

			 	
				
				  70
				

			 
	
				
				  Section 3.10
				

			 	
				
				  Allocations of Principal Payments
				  Among Subclasses of the Notes
				

			 	
				
				  74
				

			 
	
				
				  Section 3.11
				

			 	
				
				  Certain Redemptions; Certain
				  Premiums
				

			 	
				
				  74
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		i
	 

	 
		 
	 

	 
	 

	 

	  

	 

	 
			
				
				  Section 3.12
				

			 	
				
				  Adjustment of Certain Percentages,
				  Factors and Balances
				

			 	
				
				  76
				

			 
	
				
				  Section 3.13
				

			 	
				
				  Eligible Credit Facilities
				

			 	
				
				  77
				

			 
	
				
				  Section 3.14
				

			 	
				
				  Initial Liquidity Facility
				

			 	
				
				  77
				

			 
	
				
				  Section 3.15
				

			 	
				
				  The Policy
				

			 	
				
				  81
				

			 
	
				
				  Section 3.16
				

			 	
				
				  Class A Share Cure Rights
				

			 	
				
				  85
				

			 
	
				
				  Section 3.17
				

			 	
				
				  DSCR Failure
				

			 	
				
				  85
				

			 
	
				
				  ARTICLE
				  IV    DEFAULT AND REMEDIES
				

			 	
				
				  85
				

			 
	
				
				  Section 4.01
				

			 	
				
				  Events of Default
				

			 	
				
				  85
				

			 
	
				
				  Section 4.02
				

			 	
				
				  Acceleration, Rescission and
				  Annulment
				

			 	
				
				  86
				

			 
	
				
				  Section 4.03
				

			 	
				
				  Other Remedies
				

			 	
				
				  87
				

			 
	
				
				  Section 4.04
				

			 	
				
				  Limitation on Suits
				

			 	
				
				  87
				

			 
	
				
				  Section 4.05
				

			 	
				
				  Waiver of Existing Defaults
				

			 	
				
				  88
				

			 
	
				
				  Section 4.06
				

			 	
				
				  Restoration of Rights and
				  Remedies
				

			 	
				
				  88
				

			 
	
				
				  Section 4.07
				

			 	
				
				  Remedies Cumulative
				

			 	
				
				  88
				

			 
	
				
				  Section 4.08
				

			 	
				
				  Authority of Courts Not
				  Required
				

			 	
				
				  89
				

			 
	
				
				  Section 4.09
				

			 	
				
				  Rights of Holders to Receive
				  Payment
				

			 	
				
				  89
				

			 
	
				
				  Section 4.10
				

			 	
				
				  Trustee May File Proofs of
				  Claim
				

			 	
				
				  89
				

			 
	
				
				  Section 4.11
				

			 	
				
				  Undertaking for Costs
				

			 	
				
				  89
				

			 
	
				
				  Section 4.12
				

			 	
				
				  Remedies; Rights of Controlling
				  Party
				

			 	
				
				  89
				

			 
	
				
				  ARTICLE
				  V    REPRESENTATIONS, WARRANTIES AND COVENANTS
				

			 	
				
				  89
				

			 
	
				
				  Section 5.01
				

			 	
				
				  Representations and
				  Warranties
				

			 	
				
				  90
				

			 
	
				
				  Section 5.02
				

			 	
				
				  General Covenants
				

			 	
				
				  92
				

			 
	
				
				  Section 5.03
				

			 	
				
				  Operating Covenants
				

			 	
				
				  105
				

			 
	
				
				  Section 5.04
				

			 	
				
				  Compliance Through Agents
				

			 	
				
				  109
				

			 
	
				
				  ARTICLE
				  VI    THE TRUSTEE
				

			 	
				
				  110
				

			 
	
				
				  Section 6.01
				

			 	
				
				  Acceptance of Trusts and
				  Duties
				

			 	
				
				  110
				

			 
	
				
				  Section 6.02
				

			 	
				
				  Absence of Duties
				

			 	
				
				  110
				

			 
	
				
				  Section 6.03
				

			 	
				
				  Representations or Warranties
				

			 	
				
				  110
				

			 
	
				
				  Section 6.04
				

			 	
				
				  Reliance; Agents; Advice of
				  Counsel
				

			 	
				
				  110
				

			 
	
				
				  Section 6.05
				

			 	
				
				  No Compensation from Holders
				

			 	
				
				  112
				

			 
	
				
				  Section 6.06
				

			 	
				
				  Notice of Defaults
				

			 	
				
				  112
				

			 
	
				
				  Section 6.07
				

			 	
				
				  May Hold Securities
				

			 	
				
				  112
				

			 
	
				
				  Section 6.08
				

			 	
				
				  Corporate Trustee Required;
				  Eligibility
				

			 	
				
				  112
				

			 
	
				
				  Section 6.09
				

			 	
				
				  Disqualification of Trustee
				

			 	
				
				  112
				

			 
	
				
				  Section 6.10
				

			 	
				
				  Preferential Collection of Claims
				  Against Issuer
				

			 	
				
				  112
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		ii
	 

	 
		 
	 

	 
	 

	 

	  

	 

	 
			
				
				  Section 6.11
				

			 	
				
				  Reports by the Issuer
				

			 	
				
				  113
				

			 
	
				
				  Section 6.12
				

			 	
				
				  Holder Lists
				

			 	
				
				  113
				

			 
	
				
				  Section 6.13
				

			 	
				
				  Preservation of Information;
				  Communications to Holders
				

			 	
				
				  113
				

			 
	
				
				  ARTICLE
				  VII    SUCCESSOR TRUSTEES
				

			 	
				
				  114
				

			 
	
				
				  Section 7.01
				

			 	
				
				  Resignation and Removal of
				  Trustee
				

			 	
				
				  114
				

			 
	
				
				  Section 7.02
				

			 	
				
				  Appointment of Successor
				

			 	
				
				  114
				

			 
	
				
				  ARTICLE
				  VIII    INDEMNITY
				

			 	
				
				  115
				

			 
	
				
				  Section 8.01
				

			 	
				
				  Indemnity
				

			 	
				
				  115
				

			 
	
				
				  Section 8.02
				

			 	
				
				  Holders’ Indemnity
				

			 	
				
				  115
				

			 
	
				
				  ARTICLE
				  IX    MODIFICATION
				

			 	
				
				  116
				

			 
	
				
				  Section 9.01
				

			 	
				
				  Modification with Consent of
				  Holders, the Policy Provider and the Initial Liquidity Facility Provider
				

			 	
				
				  116
				

			 
	
				
				  Section 9.02
				

			 	
				
				  Modification Without Consent of
				  Holders, Providers of Eligible Credit Facilities and the Policy Provider
				

			 	
				
				  116
				

			 
	
				
				  Section 9.03
				

			 	
				
				  Subordination and Priority of
				  Payments
				

			 	
				
				  117
				

			 
	
				
				  Section 9.04
				

			 	
				
				  Execution of Amendments by
				  Trustee
				

			 	
				
				  117
				

			 
	
				
				  ARTICLE
				  X    SUBORDINATION
				

			 	
				
				  117
				

			 
	
				
				  Section 10.01
				

			 	
				
				  Subordination of the Securities and
				  Other Subordinated Obligations
				

			 	
				
				  117
				

			 
	
				
				  Section 10.02
				

			 	
				
				  Rights of Subrogation
				

			 	
				
				  118
				

			 
	
				
				  Section 10.03
				

			 	
				
				  Further Assurances of Junior
				  Representatives
				

			 	
				
				  118
				

			 
	
				
				  Section 10.04
				

			 	
				
				  Enforcement
				

			 	
				
				  118
				

			 
	
				
				  Section 10.05
				

			 	
				
				  Continued Effectiveness
				

			 	
				
				  119
				

			 
	
				
				  Section 10.06
				

			 	
				
				  Senior Claims and Junior Claims
				  Unimpaired
				

			 	
				
				  119
				

			 
	
				
				  ARTICLE
				  XI    DISCHARGE OF INDENTURE; DEFEASANCE
				

			 	
				
				  119
				

			 
	
				
				  Section 11.01
				

			 	
				
				  Discharge of Liability on the Notes;
				  Defeasance
				

			 	
				
				  119
				

			 
	
				
				  Section 11.02
				

			 	
				
				  Conditions to Defeasance
				

			 	
				
				  120
				

			 
	
				
				  Section 11.03
				

			 	
				
				  Application of Trust Money
				

			 	
				
				  121
				

			 
	
				
				  Section 11.04
				

			 	
				
				  Repayment to Issuer
				

			 	
				
				  121
				

			 
	
				
				  Section 11.05
				

			 	
				
				  Indemnity for Government Obligations
				  and Corporate Obligations
				

			 	
				
				  121
				

			 
	
				
				  Section 11.06
				

			 	
				
				  Reinstatement
				

			 	
				
				  121
				

			 
	
				
				  ARTICLE
				  XII    MISCELLANEOUS
				

			 	
				
				  121
				

			 
	
				
				  Section 12.01
				

			 	
				
				  Right of Trustee to Perform
				

			 	
				
				  121
				

			 
	
				
				  Section 12.02
				

			 	
				
				  Waiver
				

			 	
				
				  122
				

			 
	
				
				  Section 12.03
				

			 	
				
				  Severability
				

			 	
				
				  122
				

			 
	
				
				  Section 12.04
				

			 	
				
				  Restrictions on Exercise of Certain
				  Rights; Limited Recourse
				

			 	
				
				  122
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		iii
	 

	 
		 
	 

	 
	 

	 

	  

	 

	 
			
				
				  Section 12.05
				

			 	
				
				  Notices
				

			 	
				
				  123
				

			 
	
				
				  Section 12.06
				

			 	
				
				  Assignments; Third Party
				  Beneficiary
				

			 	
				
				  124
				

			 
	
				
				  Section 12.07
				

			 	
				
				  Currency Conversion
				

			 	
				
				  125
				

			 
	
				
				  Section 12.08
				

			 	
				
				  Application to Court
				

			 	
				
				  125
				

			 
	
				
				  Section 12.09
				

			 	
				
				  Governing Law
				

			 	
				
				  126
				

			 
	
				
				  Section 12.10
				

			 	
				
				  Jurisdiction
				

			 	
				
				  126
				

			 
	
				
				  Section 12.11
				

			 	
				
				  Counterparts
				

			 	
				
				  126
				

			 
	
				
				  Section 12.12
				

			 	
				
				  Table of Contents, Headings,
				  Etc
				

			 	
				
				  126
				

			 
	
				
				  Section 12.13
				

			 	
				
				  Compliance with Applicable
				  Anti-Terrorism and Anti-Money Laundering Regulations
				

			 	
				
				  126
				

			 

 

	 
		 
	 

	 
		Schedules
	 

	  

	 

	 
			
				
				  Schedule 1
				

			 	
				
				  –
				

			 	
				
				  Initial Aircraft
				

			 
	
				
				  Schedule 2
				

			 	
				
				  –
				

			 	
				
				  Issuer Subsidiaries
				

			 
	
				
				  Schedule 3
				

			 	
				
				  –
				

			 	
				
				  Pool Factors
				

			 
	
				
				  Schedule 4
				

			 	
				
				  –
				

			 	
				
				  Extended Pool Factors
				

			 
	
				
				  Schedule 5
				

			 	
				
				  –
				

			 	
				
				  Minimum Target Principal
				  Balance
				

			 
	
				
				  Schedule 6
				

			 	
				
				  –
				

			 	
				
				  Amortization Percentages
				

			 
	
				
				  Schedule 7
				

			 	
				
				  –
				

			 	
				
				  Initial Leases - Current War Risk
				  Coverage Amounts
				

			 
	
				
				  Schedule 8
				

			 	
				
				  –
				

			 	
				
				  Allocable Rent Amounts
				

			 

 

	 
		 
	 

	 
		Exhibits
	 

	  

	 

	 
			
				
				  Exhibit A-1
				

			 	
				
				  –
				

			 	
				
				  Form of Note for any subclass of
				  Notes that are Floating Rate Notes
				

			 
	
				
				  Exhibit A-2
				

			 	
				
				  –
				

			 	
				
				  Form of Note for any subclass of
				  Notes that are Fixed Rate Notes
				

			 
	
				
				  Exhibit B
				

			 	
				
				  –
				

			 	
				
				  Concentration Limits
				

			 
	
				
				  Exhibit C
				

			 	
				
				  –
				

			 	
				
				  Insurance Provisions
				

			 
	
				
				  Exhibit D
				

			 	
				
				  –
				

			 	
				
				  Form of Monthly Report to Each
				  Noteholder
				

			 
	
				
				  Exhibit E
				

			 	
				
				  –
				

			 	
				
				  Form of Certificate of
				  Transfer
				

			 
	
				
				  Exhibit F
				

			 	
				
				  –
				

			 	
				
				  Core Lease Provisions
				

			 
	
				
				  Exhibit G
				

			 	
				
				  –
				

			 	
				
				  Form of Policy
				

			 
	
				
				  Exhibit H
				

			 	
				
				  –
				

			 	
				
				  Form of Compliance
				  Certificate
				

			 
	
				
				  Exhibit I
				

			 	
				
				  –
				

			 	
				
				  Form of Accredited Investor
				  Letter
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		iv
	 

	 
		 
	 

	 
	 

	 

	 
		This TRUST INDENTURE, dated as of
		[          ], 2007 (this
		“Indenture”), is made among BABCOCK & BROWN AIR FUNDING I
		LIMITED, a Bermuda exempted company (the “Issuer”),
		DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation (the
		“Trustee” and “Operating Bank”), DEUTSCHE BANK TRUST COMPANY AMERICAS, in its
		capacity as Cash Manager (the “Cash
		Manager”), BNP PARIBAS, a
		société
		anonyme under French law, acting
		through its New York branch (together with its successors and permitted
		assigns, the “Initial Liquidity
		Facility Provider”) and AMBAC
		ASSURANCE CORPORATION, a Wisconsin stock insurance company (the
		“Policy Provider”).
	 

	 
		The parties to this Indenture hereby agree
		as follows.
	 

	 
		ARTICLE I
	 

	 
		 
	 

	 
		DEFINITIONS
	 

	 
		Section 1.01 Definitions. For
		purposes of this Indenture, the following terms have the meanings indicated
		below:
	 

	 
		“Acceleration” means, with respect to the principal, interest
		and other amounts payable in respect of the Notes, such amounts becoming
		immediately due and payable by declaration or otherwise. “Accelerate,” “Accelerated” and “Accelerating” have meanings correlative to the
		foregoing.
	 

	 
		“Acceleration Default” means any Event of Default of the type described
		in Section 4.01(e) or 4.01(f).
	 

	 
		“Account”
		means any or, in its plural form, all of the accounts established pursuant to
		Section 3.01(a) and any ledger accounts and ledger subaccounts maintained
		therein in accordance with this Indenture.
	 

	 
		“Accrued Class G Interest” means, as of any date of determination, all
		amounts due and owing in respect of accrued and unpaid interest on the
		Outstanding Principal Balance of the Class G-1 Notes (less any Policy Drawing
		previously paid in respect of principal of the Class G-1 Notes) at the
		Applicable Rate of Interest for such subclass of Notes.
	 

	 
		“Acquisition Agreement” means the Asset Purchase Agreement and any
		agreements pursuant to which Additional Aircraft (or related Aircraft Interest)
		are acquired.
	 

	 
		“Acquisition Date” means, with respect to any Aircraft Interest (and
		the Aircraft subject to that Aircraft Interest), the “AP Closing
		Date” as defined in the Asset Purchase Agreement or “Closing
		Date” or any comparable term in any other Acquisition Agreement.
	 

	 
		“Act” has,
		with respect to any Holder, the meaning given to such term in Section
		1.04(a).
	 

	 
		“Additional Aircraft” means any aircraft and any related engine
		acquired by any Issuer Group Member from a Seller or an Affiliate of a Seller
		or from any other Person after the Initial Closing Date (other than any Initial
		Aircraft, Remaining Aircraft or Substitute Aircraft) in accordance with the
		provisions hereof (including, in the case of any Additional Aircraft acquired
		through the issuance of Additional Notes, after obtaining the consent of the
		Policy Provider and the Initial Liquidity Facility Provider and a Rating Agency
		Confirmation), including any Aircraft acquired by way of a contribution but
		excluding any such Aircraft after it has been sold or disposed of by way of a
		completed Aircraft Sale.
	 

	 
		 
	 

	 
	 

	 

	 
		“Additional Issuance” has the meaning given to such term in Section
		2.11(a).
	 

	 
		“Additional Lease” means, with respect to each Additional Aircraft,
		each aircraft lease agreement, conditional sale agreement, hire purchase
		agreement or other similar arrangement with respect to such Additional Aircraft
		on the Closing Date therefor.
	 

	 
		“Additional Notes” means any Notes of any subclass of Notes issued
		pursuant to this Indenture, the proceeds of which are used, in substantial
		part, to acquire Additional Aircraft or corresponding Aircraft Interest or to
		make Conversion Payments.
	 

	 
		“Additional Rent” means rent (whether called additional rent,
		supplemental rent, utilization rent, maintenance reserve or any similar term)
		that is in addition to a base rent for the Aircraft (regardless of how such
		base rent is calculated) payable under a Lease based on hours or cycles of
		operation of the airframe, engines, life-limited engine parts, landing gear
		and/or auxiliary power unit of an Aircraft based on hours or cycles of
		operation or passage of time, with respect to maintenance of which the lessor
		under the Lease customarily has a maintenance contribution obligation measured
		in part by or with reference to such additional rent.
	 

	 
		“Additional Rent Adjustment” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Administrative Agent” means the person acting, at the time of
		determination, in the capacity as the administrative agent of the Issuer Group
		Members under the Administrative Services Agreement or any replacement
		agreement therefor. The initial Administrative Agent is Babcock & Brown Air
		Management Co Limited.
	 

	 
		“Administrative Services Agreement” means the Administrative Services Agreement dated
		as of the Initial Closing Date among the Administrative Agent, the Issuer, the
		Issuer Subsidiaries party thereto, the Policy Provider, the Trustee and the
		Security Trustee.
	 

	 
		“Affiliate”
		has the meaning given to such term in Section 5.02(b).
	 

	 
		“Aggregate Minimum Principal Payment
		Amount” means, for any Payment
		Date, the sum of (a) the aggregate unpaid Minimum Principal Payment
		Amount, if any, with respect to the previous Payment Dates (less any Principal
		Conversion Amounts transferred to the Aircraft Conversion Account in connection
		with one or more Conversion Elections) plus (b) the Minimum Principal
		Payment Amount for such Payment Date (less any Principal Conversion Amounts
		transferred to the Aircraft Conversion Account in connection with one or more
		Conversion Elections).
	 

	 
		“Agreed Currency” has the meaning given to such term in Section
		12.07(a).
	 

	 
		“Agreed Value Payment” means a payment to be made by or on behalf of a
		Lessee under a Lease upon or following a Total Loss of an Aircraft with respect
		to such Total Loss.
	 

	 
		“Aircraft”
		means the Initial Aircraft (or related Aircraft Interest) and the Additional
		Aircraft (or related Aircraft Interest).
	 

	 
		“Aircraft Agreement” means any lease, sublease, conditional sale
		agreement, finance lease, hire purchase agreement or other agreement (other
		than an agreement relating to maintenance, modification or repairs) or any
		purchase option granted to a Person (other than a Purchase Option granted to an
		Issuer 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		Group Member) to purchase an Aircraft, in
		each case pursuant to which any Person acquires or is entitled to acquire legal
		title to, or the economic benefits of ownership of, such Aircraft.
	 

	 
		“Aircraft Assets Related Documents” means all Issuer Group Leases and related
		documents and other contracts and agreements including any side letters,
		assignments of warranties or option agreements of Issuer Group Members the
		terms of which affect the rights or obligations of any Issuer Group Member in
		respect of any of the Aircraft.
	 

	 
		“Aircraft Conversion” has the meaning given to such term in Section
		5.02(i) hereof.
	 

	 
		“Aircraft Conversion Account” has the meaning given to such term in Section
		3.01(a) hereof.
	 

	 
		“Aircraft Interest” means (a) the Ownership Interest in any
		Person, including without limitation a trust, that owns an Aircraft or
		(b) the Person that holds, directly or indirectly, the interest referred
		to in clause (a) above. The acquisition or disposition of all of the
		Aircraft Interest with respect to an Aircraft constitutes, respectively, the
		acquisition or disposition of that Aircraft.
	 

	 
		“Aircraft Prior Rent Payment” means, with respect to (a) any Initial Aircraft,
		an amount equal to that portion of the aggregate Basic Rent Adjustment in fact
		received by or on behalf of the related Seller as to that Aircraft prior to the
		Closing Date that is attributable to any period commencing on or after that
		Closing Date and (b) any Additional Aircraft not acquired by an Issuer Group
		Member as provided in Section 3.05(c) hereof, the definition given to that or
		any comparable term in any indenture supplemental hereto.
	 

	 
		“Aircraft Purchase Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Aircraft Purchase Price” means, with respect to each Initial Aircraft, the
		Base Aircraft Purchase Price for such Aircraft, plus any
		Investment Proceeds Adjustment for such Aircraft, less any Basic
		Rent Adjustment for such Aircraft, less any
		Additional Rent Adjustment for such Aircraft, plus any
		Maintenance Adjustment for such Aircraft, plus, in the
		case of Substitute Aircraft only, the Substitute Aircraft Adjustment Amount
		(which may be a negative number).
	 

	 
		“Aircraft Refund Amount” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Aircraft Sale” means any sale or other disposition of any
		Aircraft, including by reason of such Aircraft suffering a Total Loss.
	 

	 
		“Aircraft Subsequent Rent Payment” means, with respect to (a) any Initial Aircraft,
		an amount equal to that portion of the aggregate Basic Rent Adjustment in fact
		received by or on behalf of the related Seller as to that Aircraft on or after
		the Closing Date that is attributable to any period commencing on or after that
		Closing Date and (b) any Additional Aircraft not acquired by an Issuer
		Group Member as provided in Section 3.05(c) hereof, the definition given to
		that or any comparable term in any indenture supplemental hereto.
	 

	 
		“Allocable Rent Amount” means the amount set forth directly opposite the
		applicable Aircraft on Schedule 8. 
	 

	 
		“Allowed Restructuring” has the meaning given to such term in Section
		5.02(e).
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		“Amortization Percentage” means, with respect to the Notes on any Payment
		Date occurring on or after the Initial Amortization Date, the percentage set
		forth directly opposite such Payment Date on Schedule 6 to this
		Indenture.
	 

	 
		“Annual Report” has the meaning given to such term in Section
		2.14(a).
	 

	 
		“Applicable Aviation Authority” means, in relation to any Aircraft, each
		governmental or regulatory authority that has responsibility for the
		supervision of civil aviation and/or the registration and operations of civil
		aircraft in the State of Registration of such Aircraft.
	 

	 
		“Applicable Law” means, with respect to any Person, all laws,
		rules, regulations and orders of governmental or regulatory authorities
		applicable to such Person, including, without limitation, the regulations of
		each Applicable Aviation Authority applicable to such Person or the Aircraft
		owned or operated by it or as to which it has a contractual
		responsibility.
	 

	 
		“Applicable Procedures” means, with respect to any transfer or exchange
		of Beneficial Interests, the rules and procedures of the Depositary, Euroclear
		or Clearstream and any of their Participants and Indirect Participants that
		apply to such transfer or exchange.
	 

	 
		“Applicable Rate of Interest” means, with respect to each subclass of Notes, as
		of any date of determination thereof, the interest rate set forth in or
		determined in accordance with the terms of such subclass of Notes.
	 

	 
		“Applicable Regulations” has the meaning given to such term in Section
		12.13.
	 

	 
		“Appraisers”
		means Aircraft Information Services, Inc., Ascend, a division of Airclaims
		Limited, and BK Associates, Inc and such other appraiser appointed pursuant to
		Section 5.03(i).
	 

	 
		“Asset Purchase Agreement” means the Asset Purchase Agreement dated as of
		[            ], 2007
		between the Sellers and the Issuer.
	 

	 
		“Assumed Base Value” means with respect to any Payment Date, for any
		Aircraft the product of (a) the Average Base Value of such Aircraft (or, in the
		case of any Aircraft with respect to which an Aircraft Conversion has been
		completed, the sum of the Average Base Value for such Aircraft as of the
		Payment Date immediately succeeding such completion and the aggregate
		Conversion Payments in respect of such Aircraft) and (b) the quotient obtained
		by dividing the Depreciation Factor applicable to such Aircraft on the
		Calculation Date related to such Payment Date by the Depreciation Factor
		applicable to such Aircraft on the Closing Date on which Notes were issued to
		finance the acquisition of such Aircraft.
	 

	 
		“Assumed Portfolio Value” means, in respect of any Payment Date and for all
		Aircraft in the Portfolio (not including any Aircraft acquired by way of a
		contribution), the sum of the product, with respect to each Aircraft in the
		Portfolio on the Calculation Date preceding such Payment Date, of (a) the
		Average Base Value of such Aircraft and (b) the quotient obtained by
		dividing the Depreciation Factor applicable to such Aircraft on such
		Calculation Date by the Depreciation Factor applicable to such Aircraft on the
		Closing Date on which Notes were issued to finance the acquisition of such
		Aircraft.
	 

	 
		“Authorized Agent” means, with respect to the Notes of any subclass,
		any authorized Paying Agent or Registrar for the Notes of such subclass.
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		“Available Amount” means, subject to the proviso contained in
		Section 3.14(g), at any date of determination, (a) the Maximum Facility
		Commitment at such time less (b) the aggregate amount of each Facility
		Drawing under the Initial Liquidity Facility outstanding at such time;
		provided that following a Downgrade Drawing, a Final Drawing or
		a Non-Extension Drawing, the Available Amount shall be zero.
	 

	 
		“Available Collections” means, as of the close of business on any
		Calculation Date, amounts on deposit in the Collections Account. The Available
		Collections with respect to any payment to be made therefrom shall be
		determined after giving effect to all payments, if any, having priority to such
		payment under Section 3.09.
	 

	 
		“Available Holder Amount” has the meaning given to such term in Section
		3.07(j).
	 

	 
		“Available
		Minimum Principal Amount” has the
		meaning given to such term in Section 3.07(i).
	 

	 
		“Average Base Value” means (a) in the case of each Initial
		Aircraft (other than a Substitute Aircraft), the lesser of the mean and median
		of the Base Values in respect of such Aircraft rendered by each of the
		Appraisers as of December 15, 2006, (b) in the case of any Substitute
		Aircraft, the lesser of the mean and median of the Base Values in respect of
		such Aircraft rendered by each of the Appraisers as of a date not more than six
		months prior to the date of the acquisition of such Aircraft and (c) in
		the case of any Additional Aircraft, the lesser of the mean and median of the
		Base Values in respect of such Aircraft rendered by each of the Appraisers as
		of a date not more than six months prior to the Closing Date for the issuance
		of the relevant Additional Notes.
	 

	 
		“Avoidance Drawing” has the meaning given to such term in Section
		3.15(e).
	 

	 
		“Avoided Payment” means any amount paid or required to be paid in
		respect of the Class G-1 Notes to a Holder of such Class G-1 Notes which is
		avoided under any applicable bankruptcy, insolvency, receivership or similar
		law in an insolvency proceeding by or against the Issuer, any Issuer
		Subsidiary, the Initial Liquidity Facility Provider or any other provider of an
		Eligible Credit Facility and, as a result of such an avoidance event, the
		Trustee or any holder of any such Class G-1 Notes is required to return all or
		any portion of such avoided payment made or to be made in respect of such Class
		G-1 Notes (including any disgorgement from the Holders of the Class G-1 Notes
		resulting from any insolvency proceeding, whether such disgorgement is
		determined on a theory of preferential conveyance or otherwise).
	 

	 
		“Base Aircraft Purchase Price” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Base Value”
		means the value of an Aircraft in an open, unrestricted, stable market
		environment with a reasonable balance of supply and demand, and with full
		consideration of the Aircraft’s “highest and best use”,
		presuming an arm’s-length, cash transaction between willing, able and
		knowledgeable parties, acting prudently, with an absence of duress and with a
		reasonable period of time available for marketing, adjusted to account for the
		maintenance status of such Aircraft (with such assumptions as to use since the
		last reported status as may be reasonably stated in the appraisal setting forth
		such Base Value).
	 

	 
		“Basic Rent Adjustment” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Basic Terms Modification” has the meaning given to such term in Section
		9.01.
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		“BBAM” means
		BBAM Ireland and BBAM US, collectively.
	 

	 
		“BBAM Ireland” means Babcock & Brown Aircraft Management
		(Europe) Limited, a company incorporated under the laws of Ireland 
	 

	 
		“BBAM US”
		means Babcock & Brown Aircraft Management LLC, a limited liability company
		organized under the laws of Delaware.
	 

	 
		“Beneficial Interest” means an indirect beneficial interest in a Global
		Note held through a corresponding Depositary Interest and shown on, and
		transferred only through, records maintained in book-entry form by the
		Depositary (with respect to the Participants) and its Participants. References
		to Beneficial Interests in a Global Note should be understood to mean
		Beneficial Interests in the Depositary Interest issued with respect to such
		Global Note.
	 

	 
		“Board”
		means the Board of Directors of the Issuer.
	 

	 
		“Board Resolution” means a copy of a resolution certified as having
		been duly adopted by the Board of the Issuer and being in full force and effect
		on the date of such certification.
	 

	 
		“Business Day” means (a) any date other than a Saturday, a
		Sunday or a day on which commercial banks and foreign exchange markets are open
		in New York, New York and, with respect to the payment of interest on any
		Floating Rate Note, a day on which U.S. dollar deposits may be dealt in on the
		London inter-bank market and, with respect to payments to or withdrawals from
		the Non-Trustee Accounts, a day on which the financial institution at which
		such account is located is open for business or (b) solely with respect to
		drawings under the Policy, any date other than a Saturday, a Sunday or a day on
		which (i) the fiscal agent under such Policy, at its office specified in
		the Policy, (ii) the Policy Provider, at its office specified in such
		Policy, (iii) commercial banking institutions in the cities in which the
		corporate trust office of the Trustee or (iv) insurance companies in New
		York, New York are, in any such case, required or authorized by law or
		executive order to close or (c) with respect to the determination of the
		rate of interest on any Floating Rate Note, a day on which U.S. dollar deposits
		may be dealt in on the London inter-bank market.
	 

	 
		“Calculation Date” means, with respect to each Payment Date, the
		last day of the calendar month immediately preceding the month in which such
		Payment Date occurs, provided that if
		any Calculation Date would otherwise fall on a day that is not a Business Day,
		such Calculation Date will be the first preceding day that is a Business
		Day.
	 

	 
		“Cape Town Convention” means the Convention on International Interests
		in Mobile Equipment and its Protocol on Matters Specific to Aircraft Equipment,
		concluded in Cape Town on 16 November 2001.
	 

	 
		“Capital Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Capital Markets Advisor” means the Person acting, at the time of
		determination, as the Capital Markets Advisor under the Capital Markets
		Advisory Agreement. The initial Capital Markets Advisor is Credit Suisse
		Securities (USA) LLC.
	 

	 
		“Capital
		Markets Advisory Agreement” means
		the Capital Markets Advisory Agreement dated as of the Initial Closing Date
		between the Capital Markets Advisor and the Issuer.
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		“Cash Collateral Account” means the Senior Cash Collateral Account and each
		other Eligible Credit Facility established as an Account pursuant to Section
		3.01(q). 
	 

	 
		“Cash Management Agreement” means the Cash Management Agreement dated as of
		the Initial Closing Date among the Cash Manager, the Trustee, the Security
		Trustee and the Issuer.
	 

	 
		“Cash Manager” means the Person acting, at the time of
		determination, in the capacity of the cash manager under the Cash Management
		Agreement or any replacement agreement therefor. The initial Cash Manager is
		Deutsche Bank Trust Company Americas.
	 

	 
		“Charitable Trust” means the charitable trust established under the
		laws of Bermuda, which owns 100% of the Class B Shares.
	 

	 
		“Class A Shareholder” means a holder of the Class A Shares.
	 

	 
		“Class A Shareholder Conversion Amount” means, with respect to any Aircraft (a) the
		Conversion Amount for such Aircraft divided by (b) the sum of the Initial
		Leverage Ratio and 1.
	 

	 
		“Class A Shareholder Conversion Deposits” means, as of any date of determination, for any
		Aircraft Conversion, the amount of distributions available to be made by the
		Holders of Class A Shares and Contribution Amounts, if any, for such Aircraft
		Conversion.
	 

	 
		“Class A Shares” means the shares issued by the Issuer and
		designated as such in accordance with its constitutional documents.
	 

	 
		“Class B Share Payment” means, with respect to each Payment Date,
		$[            ].
	 

	 
		“Class B Shares” means the shares issued by the Issuer and
		designated as such in accordance with its constitutional documents.
	 

	 
		“Class B Shareholder Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Class G Cash Collateral Event” has the meaning given to such term in Section
		3.01(m).
	 

	 
		“Class G-1 Note Target Price” means, as of any date of determination thereof
		and with respect to any Aircraft (not including any Aircraft acquired by way of
		a contribution, the Class G-1 Note Target Price for which shall be zero), an
		amount equal to the product of the Designated Percentage with respect to such
		Aircraft and the then (determined after the intended application of Available
		Collections (but without taking into account any Net Sale Proceeds or Total
		Loss Proceeds from the sale, disposition or total loss of such Aircraft) as of
		the next succeeding Payment Date) aggregate Outstanding Principal Balance of
		the Class G-1 Notes (less any Policy Drawings previously paid in respect of
		principal of the Class G-1 Notes).
	 

	 
		“Class G-1 Notes” means the Initial Notes that are designated Class
		G-1 Notes with an initial Outstanding Principal Balance not to exceed
		$853,000,000 and all Notes, if any, issued in replacement or substitution
		therefor.
	 

	 
		“Clearstream” means Clearstream Banking, société anonyme, Luxembourg.
	 

	 
		“Closing Date” means in the case of (a) the Initial Notes
		and the Initial Aircraft, the Initial Closing Date, (b) any Refinancing
		Notes or Additional Notes, the relevant date of issuance of such 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		Securities and (c) any Additional
		Aircraft or Aircraft Conversion, the date of issuance of the Additional Notes
		issued to finance the acquisition of such Additional Aircraft or such Aircraft
		Conversion. 
	 

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

	 
		“Collateral”
		has the meaning given to such term in the Security Trust Agreement.
	 

	 
		“Collections” means without duplication (a) Rental
		Payments and all other amounts received by any Issuer Group Member pursuant to
		any Lease or Related Collateral Document, (b) amounts transferred from any
		Cash Collateral Account (other than the Senior Cash Collateral Account, if
		established) to the Collections Account pursuant to Section 3.01(q),
		(c) amounts received in respect of claims for damages or in respect of any
		breach of contract for nonpayment of any of the foregoing, (d) amounts
		received by an Issuer Group Member in connection with any Aircraft Sale or
		otherwise received under any Aircraft Agreement, including sale proceeds, Total
		Loss Proceeds, Agreed Value Payments, proceeds of Repossession Insurance,
		Requisition Compensation and all Partial Loss Proceeds, less, in each case, any
		expenses payable by such Issuer Group Member to any Person that is not an
		Issuer Group Member in connection therewith, (e) amounts received by any
		Issuer Group Member from insurance with respect to any Aircraft, (f) any
		amounts transferred from a Lessee Funded Account or from the Security Deposit
		Account into the Collections Account in accordance with Section 3.08,
		(g) any Hedge Payments, (h) the proceeds of any Investments of the
		funds in the Accounts (except (i) to the extent that any such proceeds are
		required to be paid over to any Lessee under a Lease or (ii) the proceeds
		of any Investments of the funds in the Liquidity Facility Reserve Account),
		(i) any amounts transferred from any Aircraft Purchase Account into the
		Collections Account in accordance with Section 3.03, 3.04 or 3.05 hereof,
		(j) any amounts transferred from the Aircraft Conversion Account into the
		Collections Account in accordance with Section 3.08(l), (k) any amounts
		received by an Issuer Group Member under an Acquisition Agreement, including
		any Non-Delivery Make-Whole Amount, and (l) any other amounts received by
		any Issuer Group Member (including any amounts received from any other Issuer
		Group Member, whether by way of distribution, dividend, repayment of a loan or
		otherwise, and any proceeds received in connection with any Allowed
		Restructuring); provided that Collections shall not include (i) payments
		under the Policy, (ii) Segregated Funds transferred to a Lessee Funded
		Account, (iii) security deposits under any Lease that are not Segregated
		Funds transferred to the Security Deposit Account, (iv) amounts deposited
		in the Defeasance/Redemption Account or the Refinancing Account in connection
		with a Redemption (except any amounts that are amounts under clauses (a)
		through (l) above), (v) amounts received in connection with a Refinancing,
		(vi) amounts in the Capital Account and, except as provided above with
		respect to any amounts transferred therefrom to the Collections Account,
		amounts in any Cash Collateral Account, the Aircraft Purchase Account and the
		Aircraft Conversion Account, (vii) amounts not payable to an Issuer Group
		Member, expenses incurred in connection with the receipt of any Collections or
		amounts otherwise not to be included as Collections pursuant to any Related
		Document and (viii) payments under the Initial Liquidity Facility, in each
		case subject to the restrictions set forth in this Indenture. 
	 

	 
		“Collections Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Commission”
		means the U.S. Securities and Exchange Commission.
	 

	 
		“Concentration Default” means an Event of Default under Section 4.01(d)
		as a result of a breach of the agreements under Section 5.03(a) which would
		arise if effect were given to any sale, transfer or other disposition or any
		purchase or other acquisition (other than in respect of any Aircraft acquired
		by way of contribution) pursuant to an Aircraft Agreement as of the date of
		such Aircraft Agreement regardless of whether such sale, transfer or other
		disposition or purchase or other acquisition is scheduled or expected to occur
		after the date of such Aircraft Agreement.
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		“Concentration Limits” has the meaning given to such term in Section
		5.03(a).
	 

	 
		“Contribution Amounts” has the meaning given to such term in Section
		3.16.
	 

	 
		“Control”
		has the meaning given to such term in Section 5.02(b). “Controlled”
		and “Controlling” have meanings correlative to the
		foregoing.
	 

	 
		“Controlling Party” means, at any time of determination, the Policy
		Provider until such time as the Class G-1 Notes and the Policy Provider
		Obligations have been paid or repaid in full except that if a Policy Provider
		Default has occurred and is continuing, the Controlling Party shall be the
		Trustee; provided that in the case of the Initial Liquidity Facility
		Provider or, for any other Eligible Credit Facility, if and only if so provided
		in the Board Resolution providing for such Eligible Credit Facility, at any
		time from and including the date that is no earlier than 30 months from
		the earlier to occur of (a) the date on which the entire amount available
		under such Eligible Credit Facility (other than any Eligible Credit Facility in
		the form of a Cash Collateral Account) shall have been drawn (except as a
		result of (i) a Downgrade Drawing or (ii) a Non-Extension Drawing, in
		each case not applied to pay any Required Expenses Shortfalls, Senior Hedge
		Payments Shortfalls or Liquidity Facility Interest Class G Shortfalls) and
		remain unreimbursed and (b) the date on which the Notes shall have been
		Accelerated, the provider of such Eligible Credit Facility shall have the right
		to elect, by at least 15 Business Days’ prior Written Notice to the
		Trustee and the Policy Provider, to become the Controlling Party (in place of
		the Policy Provider or the Trustee, as applicable) thereafter (subject to the
		next succeeding proviso) but only for so long as any Credit Facility
		Obligations due to such provider remain unpaid; provided
		further, that if, notwithstanding the foregoing, within 15
		Business Days after its receipt of any such Written Notice from such provider
		of such Eligible Credit Facility (which notice may be given on or after the
		fifteenth Business Day prior to the end of such 30-month period) the Policy
		Provider pays to such provider of such Eligible Credit Facility all outstanding
		Credit Facility Obligations owing to such provider of such Eligible Credit
		Facility in respect of its Eligible Credit Facility, and interest accrued
		thereon to such date, the Policy Provider (if it otherwise would have been the
		Controlling Party) shall remain the Controlling Party so long as no Policy
		Provider Default has occurred and is continuing. At any time after such
		30-month period, if a Policy Provider Default has occurred and is continuing
		and the provider of such Eligible Credit Facility does not elect to be the
		Controlling Party or if no Credit Facility Obligations remain outstanding, then
		the Trustee shall continue to be the Controlling Party.
	 

	 
		“Conversion Agreement” means any agreement entered into from time to
		time between the Issuer (or its agents) and any maintenance facility with
		respect to the conversion of an Aircraft to a freighter or mixed-use
		aircraft.
	 

	 
		“Conversion Amount” for any Aircraft will be equal to the estimated
		cost (as adjusted from time to time) to convert an Aircraft from a passenger to
		freighter or mixed-use configuration. 
	 

	 
		“Conversion Election” has the meaning given to such term in Section
		3.07(j).
	 

	 
		“Conversion Payment” has the meaning given to such term in
		Section 5.02(i).
	 

	 
		“Core Lease Provisions” has the meaning given to such term in Section
		5.03(e).
	 

	 
		“Corporate Obligations” has the meaning given to such term in Section
		11.02(a).
	 

	 
		“Corporate Trust Office” means, with respect to the Trustee for each
		subclass of Notes, the office of such Trustee at which at any particular time
		its corporate trust business shall be principally administered, which office at
		the date of the execution of this Agreement is [60 Wall Street, MS
		NYC60-
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		2606, New York, NY 10005, Attention:
		Corporate Trust & Agency Services – Structured Finance Services], or
		at such other address as the Trustee may designate from time to time.
	 

	 
		“Costs”
		means liabilities, obligations, damages, judgments, settlements, penalties,
		claims, actions, suits, costs, expenses and disbursements (including, without
		limitation, reasonable fees and disbursements of legal counsel and costs of
		investigation).
	 

	 
		“Covenant Defeasance” has the meaning given to such term in Section
		11.01(b).
	 

	 
		“Credit Facility Advance Obligations” means all Credit Facility Obligations other than
		(a) Credit Facility Expenses and (b) Special Indemnity
		Payments.
	 

	 
		“Credit Facility Expenses” means all Credit Facility Obligations other than
		(a) the principal amounts under, or the principal amount of any drawings
		under, any Eligible Credit Facility, (b) interest accrued on Credit
		Facility Obligations and (c) Special Indemnity Payments.
	 

	 
		“Credit Facility Obligations” means all principal, interest, fees, expenses,
		indemnities, costs and other amounts owing to or incurred by the providers of
		Eligible Credit Facilities.
	 

	 
		“Debt Allocation Amount” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Default”
		means a condition, event or act that, with the giving of notice or the lapse of
		time or both, would constitute an Event of Default.
	 

	 
		“Default Notice” means a notice given pursuant to Section 4.02,
		declaring all outstanding principal of and accrued and unpaid interest on the
		Notes to be immediately due and payable.
	 

	 
		“Defeasance/Redemption Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Deficiency Class G Shortfall” has the meaning given to such term in Section
		3.07(h)(ii).
	 

	 
		“Deficiency Drawing” has the meaning given to such term in Section
		3.15(b).
	 

	 
		“Definitive Notes” has the meaning given to such term in Section
		2.07(a).
	 

	 
		“Delivery”
		of an Aircraft has the meaning given to that term in the Asset Purchase
		Agreement or, in the case of any Additional Aircraft acquired through the
		issuance of Additional Notes, to any comparable term in any other Acquisition
		Agreement. The term “Deliver” or “Delivered” used as a verb
		has a correlative meaning. 
	 

	 
		“Delivery Expiry Date” means, with respect to the Initial Aircraft, the
		meaning given to such term in the Asset Purchase Agreement or, as to any
		Additional Aircraft, the meaning given to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Depositary”
		means The Depository Trust Company, its nominees and its and their respective
		successors, as registered holder of Beneficial Interests representing Global
		Notes.
	 

	 
		“Depositary Interest” means a certificateless depositary interest
		created under this Indenture representing a 100% beneficial interest in a
		Global Note.
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
	 

	 

	 
		“Depreciation Factor” means, with respect to each Aircraft on any date
		of determination, the product of [1 – ((1-R)/L)×A)] and
		(1+I)A, where “R” equals 0.15 for all airframe types,
		“L” equals the Expected Useful Life of such Aircraft expressed in
		months, “A” equals the current age of such Aircraft in years from the
		date of its manufacture (as provided in Schedule 1 hereto or, with respect
		to any Substitute Aircraft or Additional Aircraft, as reasonably determined by
		the Administrative Agent (subject to the approval of the Policy Provider)) and
		I equals 0.02; provided that, with respect to each Additional Aircraft (not
		including any Additional Aircraft acquired solely by way of an Equity
		Contribution), in which case the Depreciation Factor shall be determined by the
		Administrative Agent with consent from the Policy Provider (such consent not to
		be unreasonably withheld), the Depreciation Factor shall be determined by the
		Board (subject to the consent of the Policy Provider) in connection with the
		issuance of the Additional Notes funding the acquisition of such Additional
		Aircraft.
	 

	 
		“Designated Percentage” means, as of any date of determination thereof
		and with respect to any Aircraft, the percentage obtained by dividing the then
		most recent Assumed Base Value of such Aircraft by the then most recent Assumed
		Portfolio Value. 
	 

	 
		“Developed Markets” has the meaning determined, from time to time, in
		accordance with Exhibit B.
	 

	 
		“Direction”
		has the meaning given to such term in Section 1.04(c).
	 

	 
		“Director”
		means a member of board of directors of the Issuer.
	 

	 
		“Downgrade Drawing” has the meaning given to such term in Section
		3.14(c).
	 

	 
		“Downgrade Event” has the meaning given to such term in the Initial
		Liquidity Facility.
	 

	 
		“DSCR”
		means, as of any Calculation Date, the amount obtained by dividing (a) the
		amount of DSCR Available Cash as of such Calculation Date by (b) the sum
		of (i) the DSCR Aggregate Interest Amount for the related Payment Date and
		(ii) the DSCR Aggregate Minimum Principal Amount for such Payment
		Date.
	 

	 
		“DSCR Aggregate Interest Amount” means, with respect to the 35th
		Payment Date and any Payment Date thereafter, the sum of (a) the Interest
		Amount on the Notes for such Payment Date plus the net
		amounts payable (or minus the net
		amounts receivable) under any Hedge Agreement on such Payment Date (whether or
		not actually paid or received on such Payment Date) and (b) (without
		duplication) the aggregate Interest Amount on the Notes for the previous five
		Payment Dates plus the net
		amounts payable (or minus the net
		amounts receivable) under any Hedge Agreement on the related Payment Date
		(whether or not actually paid or received on such Payment Date).
	 

	 
		“DSCR Aggregate Minimum Principal Amount” means, with respect to the 35th
		Payment Date and any Payment Date thereafter, the sum of (a) the Minimum
		Principal Payment Amount for such Payment Date and (b) (without duplication)
		the aggregate Minimum Principal Payment Amount for the previous five Payment
		Dates.
	 

	 
		“DSCR Available Cash” means, as of any Calculation Date, an amount
		equal to the difference between (a) the sum of the aggregate Rental
		Payments (excluding Additional Rent payments) actually received by the Issuer
		Group during the six-month period ending on such Calculation Date and
		(b) the sum of the aggregate Re-leasing Expenses incurred by the Issuer
		Group during the six-month period ending on such Calculation Date.
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
	 

	 

	 
		“DSCR Failure” means the occurrence on two consecutive Payment
		Dates, each occurring on or after the 35th Payment Date and through
		the 59th Payment Date, of the amount of DSCR for each such Payment
		Date equaling less than 1.80.
	 

	 
		“DTC” means
		the Depositary.
	 

	 
		“Eligibility Requirements” has the meaning given to such term in Section
		2.03(b).
	 

	 
		“Eligible Account” means (a) a segregated trust account
		maintained on the books and records of an Eligible Institution in the name of
		the Security Trustee as a Securities Account under, and as defined in, the
		Security Trust Agreement; provided that no
		Cash Collateral Account may be maintained with a liquidity provider at any time
		at which the Issuer holds any participation in the liquidity facility unless
		written confirmation shall have been received from each Rating Agency prior to
		such time to the effect that such maintenance of the Cash Collateral Account
		with the liquidity provider will not result in a withdrawal or downgrading of
		the ratings of the Notes, (b) an account maintained on the books and
		records of an Eligible Institution (so long as such Eligible Institution has a
		long-term unsecured debt rating of at least AA– by Standard & Poor’s, Aa3 by Moody’s
		and AA– by Fitch) in the name of an Issuer Group Member as a Non-Trustee
		Account in compliance with the terms of the Security Trust Agreement and
		(c) the Irish VAT Refund Account.
	 

	 
		“Eligible Credit Facility” means (a) the Initial Liquidity Facility
		provided by the Initial Liquidity Facility Provider, (b) any credit
		agreement, letter of credit, guarantee, financial guarantee insurance policy,
		credit or liquidity enhancement facility, term loan facility or other credit
		facility provided by, or supported by a further such credit facility provided
		by, an Eligible Provider in favor of any Issuer Group Member and subjected to
		the lien of the Security Trust Agreement and designated by the Board as an
		Eligible Credit Facility and (c) any Eligible Account established for the
		purpose of providing like credit or liquidity support and designated by the
		Board as an Eligible Credit Facility.
	 

	 
		“Eligible Institution” means (a) Deutsche Bank Trust Company
		Americas in its capacity as the Operating Bank and as Trustee in respect of any
		Eligible Account, so long as it (i) has either (A) a long-term
		unsecured debt rating of A (or the equivalent) or better by each Rating Agency
		(in the case of Fitch, to the extent rated by such Rating Agency) or (B) a
		short-term unsecured debt rating of A-1 by Standard & Poor’s and P-1
		by Moody’s and, if rated by Fitch, F1 by Fitch and (ii) can act as a
		securities intermediary under the New York Uniform Commercial Code;
		(b) any bank not organized under the laws of the United States of America
		so long as it has either (i) a long-term unsecured debt rating of A or
		better by Standard & Poor’s or A2 or better by Moody’s (in the
		case of Fitch, to the extent rated by such Rating Agency) or (ii) a
		short-term unsecured debt rating of A-1+ by Standard & Poor’s or P-1
		or better by Moody’s and, if rated by Fitch, F1 by Fitch and (c) any
		bank organized under the laws of the United States of America or any state
		thereof, or the District of Columbia (or any branch of a foreign bank licensed
		under any such laws) appointed as the Operating Bank in respect of any Eligible
		Account, so long as it (i) has either (A) a long-term unsecured debt
		rating of AA (or the equivalent) or better by each Rating Agency (in the case
		of Fitch, to the extent rated by such Rating Agency) or (B) a short-term
		unsecured debt rating of A-l+ by Standard & Poor’s and P-1 by
		Moody’s and, if rated by Fitch, F1 by Fitch, and (ii) can act as a
		securities intermediary under the New York Uniform Commercial Code, including a
		Person providing an Eligible Credit Facility so long as such Person shall
		otherwise so qualify and shall have waived all rights of set-off and
		counterclaim with respect to the account to be maintained as an Eligible
		Account.
	 

	 
		“Eligible Provider” means a Person (other than any Issuer Group
		Member or any Affiliate thereof) whose short-term or long-term (as the case may
		be) unsecured debt rating or short-term or long-term (as the case may be)
		unsecured issuer credit rating, as the case may be, issued by each of the
		Rating 
	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
	 

	 

	 
		Agencies or the financial strength rating,
		as the case may be, are equal to or higher than the Threshold Rating, or whose
		obligations under the Initial Liquidity Facility or any other Eligible Credit
		Facility are guaranteed by an Affiliate whose short-term or long-term (as the
		case may be) unsecured debt rating or short-term or long-term (as the case may
		be) unsecured issuer credit rating, as the case may be, issued by each of the
		Rating Agencies or the financial strength rating, as the case may be, are equal
		to or higher than the Threshold Rating, or is otherwise designated as an
		Eligible Provider by the Board subject to the prior written consent of the
		Policy Provider and receipt of a Rating Agency Confirmation.
	 

	 
		“Encumbrance” has the meaning given to such term in Section
		5.02(b).
	 

	 
		“Engine”
		means each engine installed (or constituting a spare for an engine installed)
		on any Aircraft, including any engine replacing a previously installed engine
		under the relevant Lease, and any and all Parts incorporated in, installed on
		or attached to any such engine.
	 

	 
		“Equity Allocation Amount” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Equity Contribution” means any amounts paid by Babcock & Brown Air
		to fund the Issuer’s Capital Account, or, as the context may require, a
		contribution of assets. 
	 

	 
		“Euroclear”
		means Euroclear Bank, S.A./N.V., as operator of the Euroclear System.
	 

	 
		“Event of Default” has the meaning, with respect to a subclass of
		Notes, given to such term in Section 4.01.
	 

	 
		“Excess Policy Rate” has the meaning given to such term in the Policy
		Provider Agreement.
	 

	 
		“Exchange Act” means the U.S. Securities Exchange Act of 1934,
		as amended.
	 

	 
		“Expected Final Payment Date” means with respect to (a) the Class G-1
		Notes, [August 14], 2012 and (b) any Refinancing Notes or Additional
		Notes, the Expected Final Payment Date, if any, established by or pursuant to a
		Board Resolution or in any indenture supplemental hereto providing for the
		issuance of such Notes or specified in the form of such Notes.
	 

	 
		“Expected Useful Life” means, with respect to each Initial Aircraft, 25
		years from the date of manufacture and, with respect to any Additional Aircraft
		(not including any Additional Aircraft acquired solely by way of an Equity
		Contribution) or an Aircraft subject to an Aircraft Conversion, the
		“Useful Life” established by or pursuant to a Board Resolution or in
		any indenture supplemental hereto providing for the issuance of Additional
		Notes to fund the acquisition of such Additional Aircraft or such Aircraft
		Conversion (in any such case, subject to the consent of the Policy Provider and
		the receipt of a Rating Agency Confirmation).
	 

	 
		“Expense Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Expenses”
		means, collectively, any fees, costs or expenses Incurred or other amounts
		payable by an Issuer Group Member in the course of the business activities
		permitted under Section 5.02(e), including, without limitation, (i) any
		fees, expenses and indemnification amounts (including, without limitation, any
		and all claims, expenses, obligations, liabilities, losses, damages and
		penalties) of, or owing to, the Trustee, the Board, any officer of any Issuer
		Group Member, the Security Trustee, the Operating Bank, any Authorized Agent,
		the Administrative Agent, the Cash Manager, the Servicer, the 
	 

	 
		 
	 

	 
		13
	 

	 
		 
	 

	 
	 

	 

	 
		Sellers and any other Service Provider,
		provided, that such indemnification amounts shall not exceed
		$25,000,000 in the aggregate; provided,
		further, that the foregoing limitation
		shall not apply following the delivery of a Default Notice or during the
		continuance of an Acceleration Default, (ii) any premiums on the liability
		insurance required to be maintained for the benefit of the Board,
		(iii) all Taxes payable by the Issuer Group Members by reason of the
		business activities permitted under Section 5.02(e) and the other activities
		described in and permitted under the Related Documents, (iv) any Credit
		Facility Expenses, (v) any Policy Expenses, (vi) any amounts payable
		to Lessees in accordance with the Leases (to the extent not otherwise provided
		for by Segregated Funds), including without limitation, payments relating to
		maintenance reserves, security deposits, guaranties of obligations of any
		Issuer Group Member or otherwise (without any duplication of any funds on
		deposit in any Lessee Funded Account), (vii) subject to a limit of 2% of
		the average monthly head lease rent with respect to the relevant Aircraft (or
		other amount approved by a Board Resolution with a Rating Agency Confirmation
		and the prior written consent of the Policy Provider with respect thereto) with
		respect to each Issuer Subsidiary entitled thereto, the shortfall between
		Rental Payments received by or on behalf of such Issuer Subsidiary in respect
		of a Lease of such Aircraft and the amount payable by such Issuer Subsidiary,
		as head lease rent with respect to such Aircraft, to another Issuer Group
		Member that is the owner of such Issuer Subsidiary and (viii) any up-front
		payments payable on the Initial Closing Date in connection with the entering
		into of the Initial Hedge Agreements, and subject to an aggregate limit of [$
		], any up-front payments payable by an Issuer Group Member in connection with
		any future hedge arrangements permitted under Section 5.02(e)(iv);
		provided, however, that,
		except as expressly provided herein, Expenses shall not include (i) any
		amount payable on the Securities or under any Hedge Agreement, any Policy
		Premium or Policy Redemption Premium or any interest accrued on any Policy
		Premium or Policy Redemption Premium, any Special Indemnity Payment or any
		Credit Facility Advance Obligations or (ii) to the extent there would
		otherwise be a deduction for an Expense of an amount already deducted in the
		determination of “Collections”, any expense referred to in
		clause (d) of the definition of “Collections”.
	 

	 
		“Extended Pool Factor” means, with respect to each subclass of Notes,
		the “Extended Pool Factor” set forth in Schedule 4 hereto or in
		the appendix to such Notes, as the same may be adjusted in accordance with
		Section 3.12.
	 

	 
		“Extension Amount” has the meaning given to such term in Section
		3.10.
	 

	 
		“Facility Drawing” has the meaning given to such term in Section
		3.14(a).
	 

	 
		“Final Drawing” has the meaning given to such term in Section
		3.14(i).
	 

	 
		“Final Maturity Date” means with respect to (a) the Initial Notes,
		[August 14], 2033 and (b) any Refinancing Notes or Additional Notes, the
		date specified in the form of such Notes.
	 

	 
		“Final Order” means in respect of an Avoided Payment, a final,
		nonappealable order of a court exercising jurisdiction in an insolvency
		proceeding by or against the Issuer, any Issuer Group Member, the Initial
		Liquidity Facility Provider or any other provider of an Eligible Credit
		Facility.
	 

	 
		“Final Policy Election” has the meaning given to such term in Section
		3.15(c).
	 

	 
		“Fitch”
		means Fitch, Inc.
	 

	 
		“Fixed Rate Notes” means any Refinancing Notes or Additional Notes
		issued with a fixed rate of interest.
	 

	 
		 
	 

	 
		14
	 

	 
		 
	 

	 
	 

	 

	 
		“Floating Rate Notes” means the Class G-1 Notes and any Refinancing
		Notes or Additional Notes issued with a floating or variable rate of
		interest.
	 

	 
		“Future Lease” means, with respect to each Aircraft, any
		aircraft lease agreement as may be in effect at any time after the Closing Date
		on which Notes were issued to finance the acquisition of such Aircraft between
		an Issuer Group Member (as lessor) and a Person not an Issuer Group Member (as
		lessee), in each case other than any Initial Lease or Additional Lease;
		provided that if, under any sub-leasing arrangement with respect
		to an Aircraft, the lessor thereof agrees to receive payments or collateral
		directly from, or is to make payments directly to, the sub-lessee, in any such
		case to the exclusion of the related Lessee, then the relevant sub-lease shall
		constitute the “Lease”, and the sub-lessee shall constitute the
		related “Lessee” with respect to such Aircraft, but only to the
		extent of the provisions of such sub-lease agreement relevant to such payments
		and collateral and to the extent agreed by the relevant lessor.
	 

	 
		“GAAP” means
		generally accepted accounting principles in the United States of
		America.
	 

	 
		“Global Notes” means any Rule 144A Global Notes and
		Regulation S Global Notes.
	 

	 
		“Guarantee”
		means any obligation, contingent or otherwise, of any Person directly or
		indirectly guaranteeing any Indebtedness or other obligation of any other
		Person and, without limiting the generality of the foregoing, any obligation,
		direct or indirect, contingent or otherwise, of such Person (i) to
		purchase or pay (or advance or supply funds for the purchase or payment of)
		such Indebtedness or other obligation of such other Person or (ii) entered
		into for purposes of assuring in any other manner the obligee of such
		Indebtedness or other obligation of the payment thereof or to protect such
		obligee against loss in respect thereof (in whole or in part); provided that
		the term “Guarantee” shall not include endorsements for collection or
		deposit in the ordinary course of business. The term “Guarantee” when
		used as a verb has a corresponding meaning.
	 

	 
		“Guaranty”
		means the Guaranty dated as of the Initial Closing Date issued by Babcock &
		Brown International Pty Ltd in accordance with the terms of the Asset Purchase
		Agreement.
	 

	 
		“Hedge Agreement” means any interest rate or currency swap, cap,
		floor, Swaption, or other interest rate or currency hedging agreement between
		the Issuer and any Hedge Provider existing on the Initial Closing Date
		(including the Initial Hedge Agreements) or entered into in accordance with
		Section 5.02(e)(iv).
	 

	 
		“Hedge Breakage Costs” means any amounts payable by the Issuer to a
		Hedge Provider as a result of any early termination (however described or
		defined therein) of any Hedge Agreement.
	 

	 
		“Hedge Payment” means a net payment to be made by a Hedge
		Provider into the Collections Account under a Hedge Agreement and includes any
		such payment made by a guarantor under any related guarantee or any termination
		payment received from any counterparty to a Hedge Agreement.
	 

	 
		“Hedge Provider” means the counterparty to the Issuer under any
		Hedge Agreement.
	 

	 
		“Holder” or
		“Noteholder” means (a) in the case of any global note,
		the owner of the securities entitlement thereof and (b) in the case of any
		definitive note, the Person in whose name such Note is registered from time to
		time.
	 

	 
		“Holder Conversion Election” has the meaning given to such term in Section
		3.07(j)
	 

	 
		“Incur” has
		the meaning given to such term in Section 5.02(f).
	 

	 
		 
	 

	 
		15
	 

	 
		 
	 

	 
	 

	 

	 
		“Indebtedness” means, with respect to any Person at any date of
		determination (without duplication), (a) all indebtedness of such Person
		for borrowed money, (b) all obligations of such Person evidenced by bonds,
		debentures, notes or other similar instruments, (c) all obligations of
		such Person in respect of letters of credit or other similar instruments
		(including reimbursement obligations with respect thereto), (d) all the
		obligations of such Person to pay the deferred and unpaid purchase price of
		property or services, which purchase price is due more than six months after
		the date of purchasing such property or service or taking delivery and title
		thereto or the completion of such services, and payment deferrals arranged
		primarily as a method of raising finance or financing the acquisition of such
		property or service, (e) all obligations of such Person under a lease of
		(or other agreement conveying the right to use) any property (whether real,
		personal or mixed) that is required to be classified and accounted for as a
		capital lease obligation under GAAP, (f) all Indebtedness of other Persons
		secured by a lien on any asset of such Person, whether or not such Indebtedness
		is assumed by such Person, and (g) all Indebtedness of other Persons
		Guaranteed by such Person.
	 

	 
		“Indenture”
		has the meaning given to such term in the preamble hereof.
	 

	 
		“Independent Director” means a Person that (A) is not at the time of its
		appointment or at any time when such Person is serving as an Independent
		Director and has not been for the five years prior to its appointment as an
		Independent Director (i) an employee, officer, director, consultant,
		customer or supplier, or the beneficial holder (directly or indirectly) of more
		than 5% of any Ownership Interest, of the initial Servicer, the initial
		Administrative Agent, the Issuer, the Seller or any Affiliate of any such
		Person (collectively, the “Independent Parties”), (ii) a supplier to any of the Independent
		Parties, (iii) a person controlling or under common control with any directors,
		members, partners, shareholder or supplier of any of the Independent Parties or
		(iv) a spouse of, or Person related to (but not more remote than first
		cousins), a Person referred to at (i) and (ii) above and (B) has at least ten
		years of employment experience in general corporate finance or in the areas of
		accounting or corporate law. 
	 

	 
		“Indirect Participant” means a Person who holds an interest through a
		Participant.
	 

	 
		“Initial Aircraft” means each of the aircraft identified in
		Schedule 1 hereto (including any related Engines and Parts and any
		Remaining Aircraft) and any Substitute Aircraft, excluding any such aircraft
		(or related Aircraft Interest) sold or disposed of (directly or indirectly) by
		way of a completed Aircraft Sale and any Remaining Aircraft for which a
		Substitute Aircraft is acquired pursuant to the Asset Purchase
		Agreement.
	 

	 
		“Initial Amortization Date” means the 36th Payment Date following the Initial
		Closing Date.
	 

	 
			
				
				   
				

			 	
				
				  “Initial Closing Date” means [ 
				

			 	
				
				  ], 2007.
				

			 

 

	 
		“Initial Equity Amount” means the amount specified therefor on
		Schedule 2 to the Asset Purchase Agreement.
	 

	 
		“Initial Expenses” means Expenses related to the issuance of the
		Initial Notes and the acquisition of the Initial Aircraft on the Initial
		Closing Date, except that the foregoing shall not include any Expenses related
		to the acquisition of the Remaining Aircraft incurred after the Initial Closing
		Date.
	 

	 
		“Initial Hedge Agreements” means the ISDA Master Agreement (together with
		the schedule, credit support annex and confirmation thereto) dated as of the
		Initial Closing Date between the Issuer and
		[                         ].
	 

	 
		 
	 

	 
		16
	 

	 
		 
	 

	 
	 

	 

	 
		“Initial Lease” means, with respect to each Initial Aircraft,
		each aircraft lease agreement, conditional sale agreement, hire purchase
		agreement or other similar arrangement with respect to such Initial Aircraft in
		existence at the date of this Agreement and specified in Schedule 2 to the
		Asset Purchase Agreement or with respect to any Substitute Aircraft described
		therein, as such agreement may be amended, modified, extended, supplemented,
		assigned or novated from time to time.
	 

	 
		“Initial
		Leverage Ratio” means, as of any
		Payment Date, (a) the Initial Outstanding Principal Balance of the Class G-1
		Notes divided by (b) the excess of (i) the aggregate initial Average Base Value
		for all Initial Aircraft over (ii) the Initial Outstanding Principal Balance of
		the Class G-1 Notes.
	 

	 
		“Initial Liquidity Facility” means the Revolving Credit Agreement dated as of
		the Initial Closing Date among the Initial Liquidity Facility Provider, the
		Issuer and the Cash Manager, as amended from time to time in accordance with
		its terms and as replaced and so designated pursuant to Section
		3.14(e)(iii).
	 

	 
		“Initial Liquidity Facility Non-Consent
		Event” means the occurrence of
		(i) the payment of the Notes in full (other than any Refinancing Notes
		that are Notes so long as the Notes covered by the Initial Liquidity Facility
		have been paid in full with the proceeds of the issuance of such Refinancing
		Notes, such Refinancing Notes are not covered by the Initial Liquidity Facility
		and the Initial Liquidity Facility has been terminated in connection with such
		Refinancing), (ii) the termination of the Initial Liquidity Facility, and
		(iii) the payment of all Credit Facility Obligations owed to the Initial
		Liquidity Facility Provider in full.
	 

	 
		“Initial Liquidity Facility Provider” means BNP Paribas, a société anonyme under French law, and its successors and permitted
		assigns, or any provider of an Eligible Credit Facility so designated by a
		Board Resolution.
	 

	 
		“Initial Liquidity Payment Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Initial Notes” means the Class G-1 Notes issued on the Initial
		Closing Date.
	 

	 
		“Initial Outstanding Balance” means, with respect to any subclass of Notes, the
		initial Outstanding Principal Balance thereof on the date of issuance of such
		Notes.
	 

	 
		“Initial Purchasers” means Credit Suisse Securities (USA) LLC,
		Citigroup Global Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith
		Incorporated and Morgan Stanley & Co. Incorporated.
	 

	 
		“Initial Reserved Cash” means with respect to the Liquidity Facility
		Reserve Account and the Senior Cash Collateral Account, zero.
	 

	 
		“Insolvency Proceeding” means any proceeding of the type referred to in
		Section 4.01(e) or (f) in respect of the Issuer.
	 

	 
		“Insured Minimum Principal Payment Amount” means, with respect to the Payment Date following
		each Calculation Date occurring on or after 24 months after the issuance
		of a Default Notice or an Acceleration of the Notes, the excess, if any, of
		(a) the Outstanding Principal Balance of the Notes as of such Payment Date
		(less any Policy Drawings previously paid in respect of principal of the Class
		G-1 Notes) over (b) the Minimum Target Principal Balance of the Class G-1
		Notes on the Payment Date that preceded such Payment Date by
		24 months.
	 

	 
		“Intercompany Loan” has the meaning given to such term in Section
		5.02(f).
	 

	 
		 
	 

	 
		17
	 

	 
		 
	 

	 
	 

	 

	 
		“Interest Accrual Period” means, as to each subclass of Notes, each of the
		following periods: the period commencing on (and including) the relevant
		Closing Date and ending on (but excluding) the first Payment Date thereafter
		and each successive period beginning on (and including) a Payment Date and
		ending on (but excluding) the next succeeding Payment Date; provided that
		the final Interest Accrual Period with respect to any subclass of Notes shall
		end on but exclude the date such subclass of Notes is repaid in full. Account
		balances with respect to each Interest Accrual Period shall be determined by
		reference to the balances of funds on deposit in the Accounts as of the close
		of business on the Calculation Date immediately preceding the Payment Date at
		the end of such Interest Accrual Period.
	 

	 
		“Interest Amount” means, with respect to each subclass of Notes, on
		any Payment Date, (a) the amount of interest accrued and unpaid to such
		Payment Date at the Applicable Rate of Interest with respect to such subclass
		of Notes for the Interest Accrual Period ending on such Payment Date,
		determined in accordance with the terms of such subclass of Notes, plus
		(b) interest at the rate specified in clause (a) above on any
		Interest Amount due but not paid on any prior Payment Date.
	 

	 
		“Interest Class G Drawing” means a Policy Drawing made pursuant to Section
		3.15(a).
	 

	 
		“Interest Class G Shortfall” has the meaning given to such term in Section
		3.07(h)(i).
	 

	 
		“Investment”
		has the meaning given to such term in Section 5.02(c).
	 

	 
		“Investment Earnings” means investment earnings on funds on deposit in
		any Account net of losses and investment expenses of the Cash Manager in making
		such investments.
	 

	 
		“Investment Proceeds Adjustment” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Irish Account Charge” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Irish Paying Agent” has the meaning given to such term in Section
		2.03(a). The initial Irish Paying Agent shall be Deutsche International
		Corporate Services (Ireland) Limited.
	 

	 
		“Irish VAT Refund Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Issuer” has
		the meaning set forth in the preamble hereof.
	 

	 
		“Issuer Group” means the Issuer and each Issuer
		Subsidiary.
	 

	 
		“Issuer Group Member” means the Issuer or an Issuer Subsidiary.
	 

	 
		“Issuer Subsidiary” means each direct or indirect subsidiary of the
		Issuer (including each trust of which the Issuer or a subsidiary thereof is the
		holder of the beneficial interest) existing on the Initial Closing Date and
		listed on Schedule 2 to this Indenture and any other direct or indirect
		subsidiary (including any such trust) of the Issuer.
	 

	 
		“Junior Claim” means (a) with respect to Expenses, all
		other Obligations and (b) with respect to any other Obligations, all
		Obligations, in each case, as to which the payment of such other Obligations
		constitute a Prior Ranking Amount.
	 

	 
		“Junior Claimant” means the holder of a Junior Claim.
	 

	 
		 
	 

	 
		18
	 

	 
		 
	 

	 
	 

	 

	 
		“Junior Representative” means, as applicable, the Trustee with respect to
		any Junior Claim consisting of any subclass of Notes of which it is the Trustee
		and any other Person acting as the representative of one or more Junior
		Claimants.
	 

	 
		“Leases”
		means the Initial Leases, the Future Leases and the Additional Leases.
	 

	 
		“Legal Defeasance” has the meaning given to such term in Section
		11.01(b).
	 

	 
		“Lessee”
		means each Person who is the lessee of an Aircraft from time to time leased
		from an Issuer Group Member pursuant to a Lease.
	 

	 
		“Lessee Funded Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“LIBOR”
		means the London interbank offered rate for one month U.S. dollar deposits,
		determined pursuant to the Reference Agency Agreement, or such other interest
		rate so denominated, with respect to any Additional Notes or Refinancing Notes,
		in an indenture supplemental hereto for any such Notes or in the form
		thereof.
	 

	 
		“Liquidity Facility Event of Default” has the meaning assigned to such term in the
		Initial Liquidity Facility.
	 

	 
		“Liquidity Facility Interest Class G
		Shortfall” has the meaning given
		to such term in Section 3.07(g).
	 

	 
		“Liquidity
		Facility Reserve Account” has the
		meaning given to such term in Section 3.01(a).
	 

	 
		“Listing Agent” means McCann FitzGerald Listing Services
		Limited.
	 

	 
		“Maintenance Adjustment” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Material Hedge Agreement Terms” means events of default, termination events,
		additional termination events, subordinated hedge payment provisions, Policy
		Provider step-in rights, Policy Provider consent rights to amendments,
		assignments and transfers, provisions relating to the obligation of the Hedge
		Provider to any Issuer Group Member to post collateral, find a replacement
		counterparty or take other remedial action upon a downgrade in its credit
		rating (together with the associated ratings thresholds) and a provision
		stating that the Policy Provider is an intended third party beneficiary;
		provided that this definition shall not include any hedge rate,
		notional schedule, pricing or similar terms.
	 

	 
		“Maximum Commitment” has the meaning assigned to such term in the
		Initial Liquidity Facility.
	 

	 
		“Maximum Facility Commitment” has the meaning assigned to such term in the
		Initial Liquidity Facility.
	 

	 
		“Minimum Class G Principal Shortfall” has the meaning given to such term in Section
		3.07(h)(iii).
	 

	 
		“Minimum Principal Payment Amount” means, with respect to any subclass of Notes, as
		of any Payment Date, the product of (i) the Amortization Percentage for
		such Payment Date (which, prior to the Initial Amortization Date, shall be
		zero) and (ii) the Initial Outstanding Balance of such subclass of Notes,
		
	 

	 
		 
	 

	 
		19
	 

	 
		 
	 

	 
	 

	 

	 
		except that, if an Aircraft Sale occurs with
		respect to any Aircraft (not including any Aircraft acquired by way of
		contribution) prior to the Expected Final Payment Date, any Aircraft is not
		acquired by an Issuer Group Member prior to the Delivery Expiry Date or if
		there is a total loss of an Aircraft, the Minimum Principal Payment Amount
		shall also include, with respect to the Payment Date next occurring after such
		event (and each subsequent Payment Date until paid), an amount equal to the
		Class G-1 Note Target Price for such Aircraft with each remaining installment
		of scheduled Minimum Principal Payment Amount being ratably reduced by the
		ratio equal to (i) the Assumed Base Value of such Aircraft divided by (ii) the
		Assumed Portfolio Value as of such Payment Date (it being agreed that such a
		payment of Minimum Principal Payment Amount in the amount of the Class G-1 Note
		Target Price shall not be treated as a redemption for any purpose herein and no
		Policy Redemption Premium shall be payable in connection therewith).
	 

	 
		“Minimum Target Principal Balance” means, with respect to the Notes on any Payment
		Date, the amount set forth in Schedule 5 to this Indenture for such
		Payment Date, subject to adjustments set forth therein.
	 

	 
		“Modification Payment” has the meaning given to such term in Section
		5.02(i).
	 

	 
		“Monthly Report” has the meaning given to such term in Section
		2.14(a).
	 

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

	 
		“Net Sale Proceeds” means, with respect to any sale or other
		disposition of any assets, the aggregate amount of cash received or to be
		received from time to time (whether as initial or deferred consideration) by or
		on behalf of the seller in connection with such transaction after deducting
		therefrom (without duplication) (a) reasonable and customary brokerage
		commissions and other similar fees and commissions (including fees received by
		the Servicer under the Servicing Agreement), (b) the amount of taxes
		payable in connection with or as a result of such transaction and (c) the
		cost of any modifications to the asset made in connection with its sale or
		other disposition, in each case to the extent, but only to the extent, that the
		amounts so deducted are, at the time of receipt of such cash, actually paid to
		a Person that is not an Affiliate of the seller and are properly attributable
		to such transaction or to the asset that is the subject thereof.
	 

	 
		“No Proceeds Drawing” has the meaning given to such term in Section
		3.15(c).
	 

	 
		“Non-Delivery Make-Whole Amount” means, as to any Initial Aircraft not delivered
		prior to the Delivery Expiry Date, an amount equal to the Aircraft Refund
		Amount, less the Base Aircraft Purchase Price, less any
		Investment Proceeds Adjustment for such Initial Aircraft.
	 

	 
		“Non-Extension Drawing” has the meaning given to such term in Section
		3.14(d).
	 

	 
		“Non-Performance Period” has the meaning given to such term in Section
		3.15(c).
	 

	 
		“Non-Significant Subsidiary” means a direct or indirect subsidiary of the
		Issuer with respect to which an order or decree described in 4.01(e) has been
		entered or an event described in 4.01(f) has occurred if, as of the date of the
		entry of such order or decree or of such event, as the case may be, such
		subsidiary, together with all of the subsidiaries of the Issuer that have been
		and continue to be subject to such an order or decree or event, as the case may
		be, since the Initial Closing Date, own or lease Aircraft having an aggregate
		Assumed Base Value of less than 10% of the then Assumed Portfolio Value as of
		such applicable date of such order or decree or event.
	 

	 
		 
	 

	 
		20
	 

	 
		 
	 

	 
	 

	 

	 
		“Non-Trustee Accounts” has the meaning given to such term in Section
		3.01(g).
	 

	 
		“Non-U.S. Person” means a person who is not a U.S. person, as
		defined in Regulation S.
	 

	 
		“Note Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Note Purchase Agreement” means the Purchase Agreement dated as of
		[             
		], 2007 among the Issuer, Babcock & Brown Air Limited and Credit Suisse
		Securities (USA) LLC, on behalf of the Initial Purchasers.
	 

	 
		“Note Target Price” means, as of any date of determination thereof
		and with respect to any Aircraft (not including any Aircraft acquired by way of
		a contribution, the Note Target Price for which shall be zero), an amount equal
		to 107% of the aggregate Outstanding Principal Balance of the Initial Notes,
		together with any accrued but unpaid interest thereon, the accrued but unpaid
		Hedge Payment and any related Hedge Breakage Costs and any Policy Premium or
		Policy Expenses then due and payable to the Policy Provider, allocable in each
		case to such Aircraft on the date of the sale agreement or Purchase Option
		exercise date, as the case may be. On any date, the Outstanding Principal
		Balance of the Initial Notes and Policy Premium (each an “Allocable Amount”) allocable to an Aircraft shall equal the product
		of (i) (A) the Assumed Base Value of such Aircraft divided by
		(B) the Assumed Portfolio Value and (ii) such Allocable Amount, in
		each case on the most recent Payment Date.
	 

	 
		“Notes”
		means the Initial Notes, all Additional Notes, if any, all Refinancing Notes,
		if any, and all Notes, if any, issued in replacement or substitution of a
		Note.
	 

	 
		“Notice of Avoided Payment” has the meaning given to such term in the
		Policy.
	 

	 
		“Notice of Nonpayment” has the meaning given to such term in the
		Policy.
	 

	 
		“Notices”
		has the meaning given to such term in Section 12.05.
	 

	 
		“Obligations” means the Secured Obligations and the payments
		made to the Issuer, any Shareholder or any other party pursuant to Section
		3.09.
	 

	 
		“Offering Memorandum” means the offering memorandum dated [  
		         ], 2007 issued by the
		Issuer in respect of the offering of the Initial Notes.
	 

	 
		“Officer’s Certificate” means a certificate signed by, with respect to
		the Issuer, any Director and, with respect to any other Person, any authorized
		officer, director, trustee or equivalent representative of such Person.
	 

	 
		“Operating Bank” means the Person acting, at the time of
		determination, as the Operating Bank under the Security Trust Agreement. The
		initial Operating Bank is Deutsche Bank Trust Company Americas.
	 

	 
		“Opinion of Counsel” means a written opinion signed by legal counsel,
		who may be an employee of or counsel to the Issuer, that meets the requirements
		of Section 1.03.
	 

	 
		“Optional Redemption” means a Redemption of Notes pursuant to Section
		3.11(a).
	 

	 
		“Outstanding” means (a) with respect to the Notes of any
		class or subclass at any time, all Notes of such class or subclass theretofore
		authenticated and delivered by the Trustee except (i) any such Notes
		
	 

	 
		 
	 

	 
		21
	 

	 
		 
	 

	 
	 

	 

	 
		cancelled by, or delivered for cancellation
		to, the Trustee; (ii) any such Notes, or portions thereof, for the payment
		of principal of and accrued and unpaid interest on which moneys have been
		deposited in the applicable Note Account or distributed to Holders by the
		Trustee and any such Notes, or portions thereof, for the payment or redemption
		of which moneys in the necessary amount have been deposited in the
		Defeasance/Redemption Account; provided that if
		such Notes are to be redeemed prior to the maturity thereof in accordance with
		the requirements of Section 3.11(a) or 3.11(b), notice of such redemption shall
		have been given as provided in Section 3.11(c), or provision satisfactory to
		the Trustee shall have been made for giving such notice; and (iii) any
		such Notes in exchange or substitution for which other Notes have been
		authenticated and delivered, or which have been paid pursuant to the terms of
		this Indenture (unless proof satisfactory to the Trustee is presented that any
		of such Note is held by a Person in whose hands such Note is a legal, valid and
		binding obligation of the Issuer); and (b) when used with respect to any
		evidence of indebtedness other than any Notes means, at any time, any principal
		amount thereof then unpaid and outstanding (whether or not due or
		payable).
	 

	 
		“Outstanding Amount” has the meaning given to such term in Section
		3.07(h)(iv).
	 

	 
		“Outstanding Balance” has the meaning given to such term in Section
		3.15(c).
	 

	 
		“Outstanding Principal Balance” means, with respect to any Notes Outstanding, the
		total principal amount evidenced by such Outstanding Notes unpaid at any
		time.
	 

	 
		“Ownership Interest” has the meaning given to such term in Section
		5.02(b).
	 

	 
		“Partial Loss” means, with respect to any Aircraft, any event or
		occurrence of loss, damage, destruction or the like which is not a Total
		Loss.
	 

	 
		“Partial Loss Proceeds” means, with respect to any Aircraft, the total
		proceeds of the insurance or reinsurance (other than in respect of liability
		insurance) paid in respect of any Partial Loss to any Issuer Group
		Member.
	 

	 
		“Participant” means, with respect to DTC, Euroclear or
		Clearstream, a Person who has an account with DTC, Euroclear or Clearstream,
		respectively (and, with respect to DTC, shall include Euroclear and
		Clearstream).
	 

	 
		“Parts”
		means any part, component, appliance, accessory, instrument or other item of
		equipment (other than any Engine) installed in or attached to (or constituting
		a spare for any such item installed in or attached to) any Aircraft (other than
		any Engine).
	 

	 
		“Paying Agent” has the meaning given to such term in Section
		2.03(a).
	 

	 
		“Payment Date” means the 14th day of each month,
		commencing on September, 2007, provided
		that if any Payment Date would
		otherwise fall on a day that is not a Business Day, such Payment Date will be
		the first following day that is a Business Day.
	 

	 
		“Periodic Principal Conversion Limit” means, as of any Payment Date, for any Aircraft
		Conversion, the product of the (a) Class A Shareholder Conversion Deposits made
		for such Aircraft Conversion on or prior to such Payment Date and (b) Initial
		Leverage Ratio for such Payment Date.
	 

	 
		“Permitted Account Investments” means, in each case (except with regard to
		clause (f)), book-entry securities, negotiable instruments or securities
		in registered form that evidence:
	 

	 
		 
	 

	 
		22
	 

	 
		 
	 

	 
	 

	 

	 
		(a) direct obligations of, and obligations
		fully Guaranteed as to timely payment by, the United States of America (having
		original maturities of no more than 365 days, or such lesser time as is
		required for the distribution of funds);
	 

	 
		(b) demand deposits, time deposits or
		certificates of deposit of the Operating Bank or of depositary institutions or
		trust companies organized under the laws of the United States of America or any
		state thereof, or the District of Columbia (or any domestic branch of a foreign
		bank) (i) having original maturities of no more than 365 days, or
		such lesser time as is required for the distribution of funds; provided that at
		the time of Investment or contractual commitment to invest therein, the
		short-term debt rating of such depositary institution or trust company shall be
		at least A-1 by Standard & Poor’s and P-1 by Moody’s and, if
		rated by Fitch, F1 by Fitch , or (ii) having maturities of more than
		365 days and, at the time of the Investment or contractual commitment to
		invest therein, a rating of AA by Standard & Poor’s and Aa2 by
		Moody’s and, if rated by Fitch, AA by Fitch; provided that,
		during any applicable period, not more than 20% of the Issuer’s aggregate
		Permitted Account Investments may be made in investments described under this
		clause (b);
	 

	 
		(c) corporate or municipal debt obligations
		(including, without limitation, open market commercial paper) (i) having
		remaining maturities of no more than 365 days, or such lesser time as is
		required for the distribution of funds, having, at the time of the Investment
		or contractual commitment to invest therein, a rating of at least A-1+ or AA by
		Standard & Poor’s and P-1 or Aa2 by Moody’s and, if rated by
		Fitch, F1+ or AA by Fitch; or (ii) having maturities of more than
		365 days and, at the time of the Investment or contractual commitment to
		invest therein, a rating of AA by Standard & Poor’s and Aa2 by
		Moody’s and, if rated by Fitch, AA by Fitch;
	 

	 
		(d) Investments in money market funds
		(including funds in respect of which the Trustee or any of its Affiliates is
		investment manager or advisor) having a rating of at least AA by Standard &
		Poor’s and Aa2 by Moody’s and, if rated by Fitch, AA by Fitch;
	 

	 
		(e) notes or bankers’ acceptances
		(having original maturities of no more than 365 days, or such lesser time
		as is required for the distribution of funds) issued by any depositary
		institution or trust company referred to in (b) above; or
	 

	 
		(f) any other Investments approved pursuant
		to a Rating Agency Confirmation;
	 

	 
		provided, however, that no
		Investment shall be made in any obligations of any depositary institution or
		trust company which has a contractual right to set off and apply any deposits
		held, and other indebtedness owing, by any Issuer Group Member to or for the
		credit or the account of such depositary institution or trust company;
		provided further that if, at any time, the rating of any of the
		foregoing investments falls below “Baa2” by Moody’s, such
		downgraded investment will no longer constitute a “Permitted Account
		Investment”.
	 

	 
		“Permitted Accruals” has the meaning given to such term in Section
		3.09(a)(viii).
	 

	 
		“Permitted Additional Aircraft
		Acquisition” has the meaning given
		to such term in Section 5.02(h).
	 

	 
		“Permitted Encumbrance” has the meaning given to such term in Section
		5.02(b).
	 

	 
		“Person”
		means any natural person, firm, corporation, limited liability company,
		partnership, joint venture, association, joint-stock company, trust,
		unincorporated organization, government or any political subdivision thereof or
		any other legal entity, including public bodies.
	 

	 
		 
	 

	 
		23
	 

	 
		 
	 

	 
	 

	 

	 
		“Pledged Beneficial Interest” has the meaning given to such term in the
		Security Trust Agreement.
	 

	 
		“Pledged Debt” has the meaning given to such term in the
		Security Trust Agreement.
	 

	 
		“Pledged Membership Interest” has the meaning given to such term in the
		Security Trust Agreement.
	 

	 
		“Pledged Shares” has the meaning given to such term in the
		Security Trust Agreement.
	 

	 
		“Policy”
		means the Ambac Assurance Corporation Policy No. [  
		         ] issued as of the
		Initial Closing Date by the Policy Provider, together with all endorsements
		thereto, in favor of the Trustee for the benefit of the Holders of the Class
		G-1 Notes.
	 

	 
		“Policy Drawing” means, with respect to the Policy, any payment of
		a claim under the Policy.
	 

	 
		“Policy Expenses” means all amounts (including, but not limited to,
		all amounts in respect of fees, indemnities or costs and expenses incurred by
		the Policy Provider, including, without limitation, in connection with the
		enforcement, defense or preservation of any rights in respect of any of the
		Related Documents) due to the Policy Provider under the Policy Provider
		Agreement or any other Policy Provider Document other than
		(i) reimbursement of any Policy Drawing, (ii) any Policy Premium or
		Policy Redemption Premium, if any, (iii) any interest accrued on any
		Policy Drawings or any Policy Premium or Policy Redemption Premium, and
		(iv) reimbursement of and interest on any Credit Facility Advance
		Obligations in respect of any Eligible Credit Facility paid by the Policy
		Provider to any provider of an Eligible Credit Facility.
	 

	 
		“Policy Fee Letter” means the fee letter, dated as of [  
		         ], 2007 from the Policy
		Provider to the Issuer and the Trustee setting forth the Policy Premium and
		certain other amounts payable in respect of the Policy.
	 

	 
		“Policy Non-Consent Event” means the occurrence of (i) the payment of
		the Notes in full (other than any Refinancing Notes that are Notes so long as
		the Notes covered by the Policy have been paid in full with the proceeds of the
		issuance of such Refinancing Notes, such Refinancing Notes are not covered by
		the Policy and the Policy has been terminated and surrendered to the Policy
		Provider for cancellation in connection with such Refinancing), (ii) the
		termination and surrender of the Policy to the Policy Provider for cancellation
		and (iii) the payment of all Policy Provider Obligations in full.
	 

	 
		“Policy Premium” has the meaning given to such term in the Policy
		Fee Letter.
	 

	 
		“Policy Provider” means Ambac Assurance Corporation, a Wisconsin
		stock insurance company, or any successor thereto, as issuer of the
		Policy.
	 

	 
		“Policy Provider Agreement” means the Insurance and Indemnity Agreement,
		dated as of the date of issuance of the Initial Notes, among the Trustee, the
		Issuer and the Policy Provider.
	 

	 
		“Policy Provider Default” means the occurrence of any of the following
		events: (a) the Policy Provider fails to make a payment required under the
		Policy in accordance with its terms and such failure remains unremedied for two
		Business Days following the receipt of Written Notice of such failure from the
		Trustee, the Cash Manager or the Operating Bank by the Policy Provider, or
		(b) the Policy Provider (i) files any petition or commences any case
		or proceeding under any provisions of any federal or state law relating to
		insolvency, bankruptcy, rehabilitation, liquidation or reorganization,
		(ii) makes a general 
	 

	 
		 
	 

	 
		24
	 

	 
		 
	 

	 
	 

	 

	 
		assignment for the benefit of its creditors
		or (iii) has an order for relief entered against it under any federal or
		state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
		reorganization that is final and nonappealable, or (c) a court of
		competent jurisdiction, the New York Insurance Department or another competent
		judicial or regulatory authority enters a final and nonappealable order,
		judgment or decree (i) appointing a custodian, trustee, agent or receiver
		for the Policy Provider or for all or any material portion of its property or
		(ii) authorizing the taking of possession by a custodian, trustee, agent
		or receiver of the Policy Provider (or taking of possession of all or any
		material portion of the Policy Provider’s property).
	 

	 
		“Policy Provider Documents” means the Policy, the Policy Fee Letter, the
		Policy Provider Agreement and the Policy Provider Indemnification
		Agreement.
	 

	 
		“Policy Provider Indemnification
		Agreement” means the
		Indemnification Agreement dated as of the date of issuance of the Initial Notes
		entered into between the Policy Provider, the Issuer and the Initial
		Purchasers.
	 

	 
		“Policy Provider Obligations” means all reimbursements and other amounts,
		including without limitation, fees, expenses, interest and indemnities, due to
		the Policy Provider hereunder, or under the Policy Provider Documents, all such
		amounts to be paid only as expressly provided hereunder and without duplication
		whether by reason of any rights of subrogation or otherwise.
	 

	 
		“Policy Redemption Premium” has the meaning given to such term in the Policy
		Fee Letter.
	 

	 
		“Pool Factor” means, with respect to each subclass of Notes on
		any Payment Date, the “Pool Factor” for such Payment Date set forth
		in Schedule 3 hereto or in the appendix to such Notes, as the same may be
		adjusted in accordance with Section 3.12.
	 

	 
		“Portfolio”
		means, at any time, all Aircraft owned by the Issuer Group.
	 

	 
		“Precedent Lease” has the meaning given to such term in Section
		5.03(e).
	 

	 
		“Primary Expenses” means all Expenses other than Modification
		Payments and Refinancing Expenses.
	 

	 
		“Principal Conversion Amount” means, with respect to any Aircraft, as of any
		Calculation Date, the lesser of (a) $1,000,000, (b) the Minimum Principal
		Payment Amounts for the applicable Payment Date and (c) an amount, which when
		added to the previous Principal Conversion Amounts deposited into the Aircraft
		Conversion Account on prior Payment Dates with respect to such Aircraft will
		not exceed the Periodic Principal Conversion Limit. 
	 

	 
		“Principal Conversion Election” has the meaning given to such term in Section
		3.07(i).
	 

	 
		“Prior Ranking Amounts” means, with respect to any amount to be paid (or
		retained in the Collections Account) in accordance with Section 3.09(a) or
		3.09(b) (as applicable), all amounts, if any, to be paid (or retained in the
		Collections Account) prior to the payment (or retention) of such amount in
		accordance with Section 3.09(a) or 3.09(b) (as applicable).
	 

	 
		“Prohibited Countries” has the meaning determined, from time to time, in
		accordance with Section 5.03(a).
	 

	 
		 
	 

	 
		25
	 

	 
		 
	 

	 
	 

	 

	 
		“Purchase Option” means a contractual option granted by the lessor
		or owner under an Aircraft Agreement (including pursuant to a conditional sale
		agreement) as to the purchase of the applicable Aircraft.
	 

	 
		“QIB” means
		a “qualified institutional
		buyer” as defined in
		Rule 144A.
	 

	 
		“Quarterly Report” has the meaning given to such term in Section
		2.14(a).
	 

	 
		“Rating Agency” means each of Moody’s, Standard &
		Poor’s, Fitch and any other nationally recognized rating agency designated
		by the Issuer; provided that such organizations shall only be deemed to be a
		Rating Agency for purposes of this Indenture with respect to the Notes they are
		then rating.
	 

	 
		“Rating Agency Confirmation” means a written confirmation in advance of
		certain actions or transactions contemplated by the Issuer Group from each of
		the Rating Agencies then rating the Notes, that such action or transaction will
		not result in the lowering, qualification or withdrawal by such Rating Agency
		of its then current credit rating, if any, of any subclass of Notes (such
		rating, in the case of the Class G-1 Notes, as determined without regard to the
		Policy).
	 

	 
		“Received Currency” has the meaning given to such term in Section
		12.07(a).
	 

	 
		“Receiver”
		means any Person or Persons appointed as (and any additional Person or Persons
		appointed or substituted as) administrative receiver, receiver, manager or
		receiver and manager.
	 

	 
		“Record Date” means, with respect to each Payment Date, the
		close of business on the day that is 15 days prior to such Payment Date
		or, if 15 days has not passed since the Initial Closing Date, the Initial
		Closing Date, in any event whether or not such day is a Business Day.
	 

	 
		“Redemption”
		has the meaning given to such term in Section 3.11(c).
	 

	 
		“Redemption Date” means the date, which shall in each case be a
		Payment Date, on which Notes of any subclass are to be redeemed pursuant to
		Section 3.11.
	 

	 
		“Redemption Premium” means (a) with respect to any Initial Note
		being redeemed in an Optional Redemption on any Redemption Date, the Redemption
		Premium indicated for such Initial Note with respect to such date in the table
		below:
	 

	  

	 

	 
			
				
				  Redemption Date
				

			 	
				
				   
				

			 	
				
				  Price
				

			 
	
				
				  On or after the Initial Closing Date
				  but before August 14, 2008
				

			 	
				
				   
				

			 	
				
				  102.0%
				

			 
	
				
				  On or after August 14, 2008, but
				  before August 14, 2009
				

			 	
				
				   
				

			 	
				
				  101.0%
				

			 
	
				
				  On or after August 14, 2009
				

			 	
				
				   
				

			 	
				
				  100.0%
				

			 

 

	 
		and (b) with respect to any Additional
		Note or Refinancing Note, the Redemption Premium specified therefore by the
		terms of such Note. 
	 

	 
		“Redemption Price” means an amount (determined as of the Calculation
		Date for the Redemption Date for any Redemption pursuant to Section 3.11(a))
		equal to:
	 

	 
		(a) with respect to any Initial Notes being
		redeemed and except as otherwise provided in clause (b) below, the product
		of the applicable Redemption Premium times the portion of the Outstanding
		Principal Balance being redeemed;
	 

	 
		 
	 

	 
		26
	 

	 
		 
	 

	 
	 

	 

	 
		(b) with respect to any Initial Notes being
		redeemed under Section 3.11(a) after the giving of a Default Notice or the
		Acceleration of any of the Notes, the then Outstanding Principal Balance
		thereof without Redemption Premium; and
	 

	 
		(c) with respect to any Notes other than the
		Initial Notes, as provided in the Board Resolution or indenture supplemental
		hereto providing for the issuance of such Notes.
	 

	 
		“Reference Agency Agreement” means the Reference Agency Agreement dated as of
		the Initial Closing Date, between the Issuer, the Reference Agent and the Cash
		Manager pursuant to which LIBOR is determined from time to time.
	 

	 
		“Reference Agent” means the Person acting, at the time of
		determination, in the capacity of the Reference Agent under the Reference
		Agency Agreement. The initial Reference Agent is Deutsche Bank Trust Company
		Americas.
	 

	 
		“Reference Date” means, with respect to each Interest Accrual
		Period, the day that is two Business Days prior to the commencement of such
		Interest Accrual Period.
	 

	 
		“Refinancing” has the meaning given to such term in Section
		2.10(a).
	 

	 
		“Refinancing Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Refinancing Expenses” means all out-of-pocket costs and expenses
		Incurred in connection with an offering and issuance of Refinancing
		Notes.
	 

	 
		“Refinancing Notes” means any subclass of Notes issued by the Issuer
		under this Indenture at any time and from time to time after the date hereof,
		in a Refinancing in accordance with Section 2.10.
	 

	 
		“Register”
		has the meaning given to such term in Section 2.03.
	 

	 
		“Registrar”
		has the meaning given to such term in Section 2.03.
	 

	 
		“Regulation S” means Regulation S under the Securities
		Act.
	 

	 
		“Regulation S Global Note” has the meaning given to such term in Section
		2.01(b).
	 

	 
		“Related Collateral Document” means any letter of credit, third party or bank
		guarantee or cash collateral provided by or on behalf of a Lessee to secure
		such Lessee’s obligations under a Lease.
	 

	 
		“Related Documents” means the Administrative Services Agreement, the
		Cash Management Agreement, each Eligible Credit Facility, this Indenture, the
		Notes, the Reference Agency Agreement, the Security Documents, the Policy
		Provider Documents, the Servicing Agreement, the Capital Markets Advisory
		Agreement, the Asset Purchase Agreement, the Guaranty and any other Acquisition
		Agreement, any Hedge Agreements and the constitutional documents (including
		trust documents) of the Issuer Group Members. References to
		“Related Documents” will also include, where the context requires,
		any Refinancing Notes and any Additional Notes and any guarantees, asset or
		stock purchase agreements, swap or other interest rate, currency or other
		hedging agreements or any other agreement entered into or security offered by
		any Issuer Group Member in connection with any acquisition of Additional
		Aircraft or Aircraft Conversion and issuance of Additional Notes.
	 

	 
		 
	 

	 
		27
	 

	 
		 
	 

	 
	 

	 

	 
		“Re-leasing Expenses” means, with respect to any period, all
		out-of-pocket costs and expenses incurred by the Issuer Group in connection
		with the re-leasing of Aircraft during such period, including but not limited
		to the following:
	 

	 
		(a) storage, maintenance, test flight,
		navigation, landing, ferry flights, shipping, fuel, reconfiguration,
		modification, refurbishment and repair expenses incurred in connection with the
		re-leasing of such Aircraft during such period;
	 

	 
		(b) insurance premiums, fees and expenses
		incurred by or on behalf of the Issuer Group for possessed hull and liability
		insurance while such Aircraft is off-lease during such period;
	 

	 
		(c) expenses incurred in connection with the
		acceptance of delivery, and in connection with the transition of such Aircraft,
		to such re-lease during such period; and
	 

	 
		(d) outside legal counsel and technical
		consultant fees and expenses and other professional fees and expenses, and all
		court costs, filing fees, bonding costs and other expenses, and other
		governmental fees and costs related to any re-lease of such Aircraft during
		such period.
	 

	 
		“Relevant Information” means any information provided to the Cash
		Manager by the Trustee, the Security Trustee, the Operating Bank, any
		Authorized Agent, the Issuer, the Board or any Service Provider.
	 

	 
		“Remaining Aircraft” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Renewal Lease” has the meaning given to such term in Section
		5.03(e).
	 

	 
		“Rental Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Rental Payments” means all rental payments and other amounts
		equivalent to a rental payment payable by or on behalf of a Lessee under a
		Lease including, including Purchase Option payments and Additional Rent
		payments that are not Segregated Funds.
	 

	 
		“Replacement Liquidity Facility” means, for the Initial Liquidity Facility, an
		irrevocable revolving credit agreement (or agreements), complying with all of
		the requirements of Section 3.14(e), in substantially the form of the Initial
		Liquidity Facility, including reinstatement provisions, or in such other form
		or forms (which may include a letter of credit, surety bond, swap, financial
		insurance policy or guaranty) as shall permit the Rating Agencies to confirm in
		writing their respective ratings then in effect for the Notes (before
		downgrading of such ratings, if any, as a result of the downgrading of the
		ratings of the replaced Initial Liquidity Facility Provider; such rating as
		determined without regard to the Policy) and, if not in form and substance
		substantially the same as the Initial Liquidity Facility as reasonably
		determined by the Policy Provider, that has been approved in writing by the
		Policy Provider, in a face amount (or in an aggregate face amount) equal to the
		then Maximum Commitment under the replaced Initial Liquidity Facility and
		issued by an Eligible Provider or Eligible Providers having, or whose
		obligations thereunder are guaranteed by an Affiliate having, a short-term or
		long-term (as the case may be) unsecured debt rating or a short-term or
		long-term (as the case may be) unsecured issuer credit rating, as the case may
		be, issued by each of the Rating Agencies which are equal to or higher than the
		Threshold Rating (and consented to in writing by the Policy Provider if any
		such rating which is equal to the Threshold Rating shall not have a stable or
		positive outlook according to each Rating Agency) or, with the written consent
		of the Policy Provider, such other ratings and qualifications as shall permit
		the Rating 
	 

	 
		 
	 

	 
		28
	 

	 
		 
	 

	 
	 

	 

	 
		Agencies to confirm in writing their
		respective ratings then in effect for the Notes (before the downgrading of such
		ratings, if any, as a result of the downgrading of the ratings of the replaced
		Initial Liquidity Facility Provider; such rating as determined without regard
		to the Policy). Without limitation of the form that a Replacement Liquidity
		Facility otherwise may have pursuant to the preceding sentence, a Replacement
		Liquidity Facility may have a stated expiration date earlier than 15 days
		after the Final Maturity Date of the Notes so long as such Replacement
		Liquidity Facility provides for a Non-Extension Drawing as contemplated by
		Section 3.14(d).
	 

	 
		“Replacement Liquidity Facility Provider” means a Person (or Persons) who issues a
		Replacement Liquidity Facility.
	 

	 
		“Repossession Insurance” has the meaning given to such term in Section
		5.03(g).
	 

	 
		“Required Amount” means (a) initially (i) with respect to the
		Liquidity Facility Reserve Account, zero; provided that,
		if a Downgrade Drawing or a Non-Extension Drawing shall have occurred, the
		Required Amount shall be an amount equal to the Maximum Facility Commitment and
		(ii) with respect to the Senior Cash Collateral Account, an amount equal to the
		Initial Reserved Cash therefor, and (b) thereafter, on any Payment Date,
		with respect to the Senior Cash Collateral Account and any other Eligible
		Credit Facility, such amounts as the Board has unanimously determined (and for
		which a Rating Agency Confirmation and prior written consent of the Policy
		Provider and the Initial Liquidity Facility Provider have been received), plus
		the increase, if any, in the Required Amount for the applicable Cash Collateral
		Account or Eligible Credit Facility provided for by the terms of any Additional
		Notes or Refinancing Notes.
	 

	 
		“Required Expense Amount” means, with respect to each Payment Date, the
		amount of Expenses of the Issuer Group due and payable on the Calculation Date
		relating to such Payment Date or reasonably anticipated by the Cash Manager
		(after consultation with the Administrative Agent) to become due and payable
		before the next succeeding Payment Date (and with respect to any maintenance
		expenditures, if so elected by the Administrative Agent, in light of future
		expectation of disbursements, before the sixth succeeding Payment Date), the
		accrual of which would be prudent in light of the size and timing of such
		Expenses, to the extent such Expenses consist of (a) Primary Expenses and
		(b) any Modification Payments or Refinancing Expenses in respect of which
		a Permitted Accrual was previously effected by a deposit in the Expense Account
		(whether or not any such deposit has been previously used to pay any other
		Primary Expense but excluding any portion of such deposit previously used to
		pay any Modification Payments or Refinancing Expenses) in each case after
		giving effect to any withdrawal from any Lessee Funded Account, Security
		Deposit Account or any drawing upon a Related Collateral Document that is then
		available for the payment of any such Expense; provided,
		however, that the Required Expense Amount shall not include any
		Initial Expenses. Notwithstanding the foregoing, between the 54th
		Payment Date and the 60th Payment Date, the Administrative Agent,
		unless otherwise instructed by the Policy Provider, shall accrue in full any
		Expense that is expected to be incurred prior to the 60th Payment
		Date.
	 

	 
		“Required Expenses Shortfall” has the meaning given to such term in Section
		3.07(g).
	 

	 
		“Requisition Compensation” means all monies or other compensation receivable
		by any Issuer Group Member from any government, whether civil, military or de
		facto, or public or local authority in relation to an Aircraft in the event of
		its requisition for title, confiscation, restraint, detention, forfeiture or
		compulsory acquisition or seizure or requisition for hire by or under the order
		of any government or public or local authority.
	 

	 
		 
	 

	 
		29
	 

	 
		 
	 

	 
	 

	 

	 
		“Reserved Cash” means the Initial Reserved Cash and any
		additional amounts designated as such by a Board Resolution with the prior
		written consent of the Policy Provider, the Initial Liquidity Facility Provider
		and the Holder of the Class A Shares.
	 

	 
		“Responsible Officer” means (a) with respect to the Trustee, any
		officer within the Corporate Trust Office, including any Vice President,
		Managing Director, Director, Associate, Assistant Vice President, or any other
		officer of the Trustee customarily performing functions similar to those
		performed by any of the above designated officers and also, with respect to a
		particular matter, any other officer to whom such matter is referred because of
		such officer’s knowledge and familiarity with the particular subject,
		(b) with respect to the Issuer, any Director and (c) with respect to
		any Person providing an Eligible Credit Facility and the Cash Manager, any
		authorized officer of such Person.
	 

	 
		“Restricted Period” has the meaning given to such term in Section
		2.12(c)(i).
	 

	 
		“Restrictive Legend” means the legend in the form set forth in Section
		2.02(a).
	 

	 
		“Rule 144A” means Rule 144A under the Securities
		Act.
	 

	 
		“Rule 144A Global Note” has the meaning given to such term in Section
		2.01(b).
	 

	 
		“Secured Obligations” has the meaning given to such term in the
		Security Trust Agreement.
	 

	 
		“Secured Parties” has the meaning given to such term in the
		Security Trust Agreement.
	 

	 
		“Securities”
		means the Initial Notes, all Additional Notes, if any, and all Refinancing
		Notes, if any.
	 

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

	 
		“Security Deposit Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Security Documents” means the Security Trust Agreement and any
		document executed pursuant thereto, or otherwise, for the purpose of granting a
		security interest in any Collateral to the Security Trustee for the benefit of
		the Secured Parties or for the purpose of perfecting such security
		interest.
	 

	 
		“Security Interests” means the security interests granted or expressed
		to be granted in the Collateral pursuant to the Security Trust
		Agreement.
	 

	 
		“Security Trust Agreement” means the Security Trust Agreement dated as of
		the Initial Closing Date, between the Issuer, each other party thereto and the
		Security Trustee.
	 

	 
		“Security Trustee” means the Person appointed, at the time of
		determination, as the trustee for the benefit of the Secured Parties pursuant
		to Section 5.01 of the Security Trust Agreement. The initial Security Trustee
		is Deutsche Bank Trust Company Americas.
	 

	 
		“Segregated Funds” means, with respect to each Lease, (a) all
		security deposits provided for under such Lease that have been received from
		the relevant Lessee or pursuant to the relevant Acquisition Agreement with
		respect to such Lease, (b) any security deposit pledged to the relevant
		Lessee by an Issuer Group Member and (c) all other funds, including any
		Additional Rent payments, received from the relevant Lessee or pursuant to the
		relevant Acquisition Agreement with respect to such Lease and in each 
	 

	 
		 
	 

	 
		30
	 

	 
		 
	 

	 
	 

	 

	 
		case of clause (a), (b) and (c) not
		permitted, pursuant to the terms of such Lease, to be commingled with the funds
		of the Issuer Group.
	 

	 
		“Seller”
		means any of (i) JET-i Leasing LLC, a Delaware limited liability company, (ii)
		Snodell Limited, a company incorporated under the laws of Ireland, (iii)
		Halvana Limited, a company incorporated under the laws of Ireland, (iv)
		Duntington Limited, a company incorporated under the laws of Ireland, and (v)
		any Affiliates thereof that are sellers of either Aircraft or entities that own
		an Aircraft, in each case to an Issuer Group Member on or after the Initial
		Closing Date.
	 

	 
		“Senior Cash Collateral Account” has the meaning given to such term in Section
		3.01(a).
	 

	 
		“Senior Claim” means, with respect to any Obligations (other
		than Expenses), all other Obligations the payment of which constitutes a Prior
		Ranking Amount with respect thereto.
	 

	 
		“Senior Claimant” means the holder of a Senior Claim.
	 

	 
		“Senior Hedge Payment” means, on any Payment Date, a net payment (if any
		due) to a Hedge Provider by the Issuer and any related Hedge Breakage Costs but
		excluding any Subordinated Hedge Payment.
	 

	 
		“Senior Hedge Payments Shortfall” has the meaning given to such term in Section
		3.07(g).
	 

	 
		“Service Provider” means each of the Trustee, the Servicer, the
		Administrative Agent, the Cash Manager, the Operating Bank, the Reference Agent
		and any other service provider retained from time to time by an Issuer Group
		Member pursuant to the Related Documents.
	 

	 
		“Servicer”
		means the Person acting, at the time of determination, in the capacity of the
		Servicer under the Servicing Agreement. The initial Servicer is BBAM.
	 

	 
		“Servicer’s Pro Forma Lease” has the meaning given to such term in Section
		5.03(e).
	 

	 
		“Servicing Agreement” means the Servicing Agreement dated as of the
		Initial Closing Date among the Servicer, the Issuer Subsidiaries party thereto,
		the Policy Provider and the Issuer.
	 

	 
		“Shares”
		means, collectively, the Class A Shares and the Class B
		Shares.
	 

	 
		“Special Distribution Date” means a distribution date established by the
		Trustee for the distribution of the proceeds of an Avoidance Drawing.
	 

	 
		“Special Indemnity Payments” means (a) any indemnity amounts owing at any
		time and from time to time by the Issuer to the Initial Purchasers under the
		Note Purchase Agreement or to the Policy Provider under the Policy Provider
		Indemnification Agreement, (b) any other indemnity amounts owing at any
		time and from time to time to any other Person party to a Related Document
		(other than the Servicer under the Servicing Agreement) which arise from
		violations of the Securities Act, the U.S. Securities Exchange Act of 1934, as
		amended or any other securities law and (c) any indemnification amounts
		(including without limitation, any and all claims, expenses, obligations,
		liabilities, losses, damages and penalties) of, or owing to the Trustee, the
		Board, any officer of any Issuer Group Member, the Security Trustee, the
		Operating Bank, any Authorized Agent, the Administrative Agent, the Cash
		Manager, the Servicer, the Sellers and any other Service Provider that are not
		payable as expenses.
	 

	 
		 
	 

	 
		31
	 

	 
		 
	 

	 
	 

	 

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

	 
		“State of Registration” means, in relation to an Aircraft at any time,
		the country or state on whose national register such Aircraft is registered at
		that time under the laws of such country or state in accordance with the
		applicable provisions of any Lease relating to such Aircraft or, in the absence
		of any such provisions, Applicable Law.
	 

	 
		“Stated Expiration Date” has the meaning given to such term in Section
		3.14(d).
	 

	 
		“Subordinated Hedge Payments” means any amounts payable by any Issuer Group
		Member to a Hedge Provider that are subordinated in accordance with the
		relevant Hedge Agreement (including, but not limited to, any Hedge Breakage
		Costs payable by any Issuer Group Member to a Hedge Provider if such Hedge
		Breakage Costs result from an early termination of the related Hedge Agreement
		with respect to which such Hedge Provider is the “Defaulting Party”
		or a sole “Affected Party” (as such terms are defined in the related
		Hedge Agreement)).
	 

	 
		“Substitute Aircraft” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement and that has been approved by the Policy Provider.
	 

	 
		“Substitute Aircraft Adjustment Amount” has the meaning given to such term in the Asset
		Purchase Agreement or, in the case of any Additional Aircraft acquired through
		the issuance of Additional Notes, to any comparable term in any other
		Acquisition Agreement.
	 

	 
		“Swaption”
		means any option agreement with respect to a Hedge Agreement.
	 

	 
		“Taxes” mean
		any and all taxes, fees, levies, duties, tariffs, imposts, and other charges of
		any kind (together with any and all interest, penalties, loss, damage,
		liability, expense, additions to tax and additional amounts or costs Incurred
		or imposed with respect thereto) imposed or otherwise assessed by the United
		States of America or by any state, local or foreign government (or any
		subdivision or agency thereof) or other taxing authority, including, without
		limitation: taxes or other charges on or with respect to income, franchises,
		windfall or other profits, gross receipts, property, sales, use, capital stock,
		payroll, employment, social security, workers’ compensation, unemployment
		compensation, or net worth and similar charges; taxes or other charges in the
		nature of excise, withholding, ad valorem, stamp, transfer, value added, taxes
		on goods and services, gains taxes, license, registration and documentation
		fees, customs duties, tariffs, and similar charges.
	 

	 
		“Termination Notice” has the meaning assigned to such term in the
		Initial Liquidity Facility.
	 

	 
		“Third Party Event” has the meaning given to such term in Section
		5.03(b).
	 

	 
		“Threshold Rating” means (i) the short-term issuer credit rating of
		A-1 by Standard & Poor’s (or, in the absence of a short-term issuer
		credit rating by Standard & Poor’s, a long-term issuer credit rating
		of AA- by Standard & Poor’s), a short-term unsecured debt rating of
		P-1 by Moody’s (or, in the absence of a short-term unsecured debt rating
		by Moody’s, a long-term unsecured debt rating of A1 by Moody’s) and,
		if rated by Fitch, a long-term unsecured debt rating of AA- by Fitch, or (ii)
		with respect to a monoline insurance company, a financial strength rating of
		AAA.
	 

	 
		“TIA” means
		the U.S. Trust Indenture Act of 1939, as amended.
	 

	 
		 
	 

	 
		32
	 

	 
		 
	 

	 
	 

	 

	 
		“Total Loss”
		means, with respect to any Aircraft (a) if the same is subject to a Lease,
		a Casualty Occurrence, Total Loss or Event of Loss (each as defined in such
		Lease) or the like (however so defined); or (b) if the same is not subject
		to a Lease, (i) its actual, constructive, compromised, arranged or agreed
		total loss, (ii) its destruction, damage beyond repair or being rendered
		permanently unfit for normal use for any reason whatsoever, (iii) its
		requisition for title, confiscation, restraint, detention, forfeiture or any
		compulsory acquisition or seizure or requisition for hire (other than a
		requisition for hire for a temporary period not exceeding 180 days) by or
		under the order of any government (whether civil, military or de facto) or
		public or local authority or (iv) its hijacking, theft or disappearance,
		resulting in loss of possession by the owner or operator thereof for a period
		of 30 consecutive days or longer. A Total Loss with respect to any Aircraft
		shall be deemed to occur on the date on which such Total Loss is deemed
		pursuant to the relevant Lease to have occurred or, if such Lease does not so
		deem or the relevant Aircraft is not subject to a Lease, (A) in the case
		of an actual total loss or destruction, damage beyond repair or being rendered
		permanently unfit, the date on which such loss, destruction, damage or
		rendering occurs (or, if the date of loss or destruction is not known, the date
		on which the relevant Aircraft was last heard of); (B) in the case of a
		constructive, compromised, arranged or agreed total loss, the earlier of
		(1) the date 30 days after the date on which notice claiming such
		total loss is issued to the insurers or brokers and (2) the date on which
		such loss is agreed or compromised by the insurers; (C) in the case of
		requisition for title, confiscation, restraint, detention, forfeiture,
		compulsory acquisition or seizure, the date on which the same takes effect;
		(D) in the case of a requisition for hire, the expiration of a period of
		180 days from the date on which such requisition commenced (or, if
		earlier, the date upon which insurers make payment on the basis of a Total
		Loss); or (E) in the case of clause (iv) above, the final day of the
		period of 30 consecutive days referred to therein.
	 

	 
		“Total Loss Proceeds” means, in relation to an Aircraft, the total net
		proceeds of the insurance and reinsurance paid in respect of a Total Loss
		thereof and includes, in the case of a Total Loss of an airframe which does not
		involve the Total Loss of all Engines or Parts installed thereon at the time
		when such Total Loss occurred, the net sale proceeds of any such surviving
		Engines or Parts.
	 

	 
		“Trustee”
		means, with respect to each subclass of Notes, the Person appointed, at the
		time of determination, as the trustee of such subclass of Notes in accordance
		with this Indenture. The initial Trustee for each subclass of Notes is Deutsche
		Bank Trust Company Americas.
	 

	 
		“U.S. Government Obligations” has the meaning given to such term in Section
		11.02(a). 
	 

	 
		“War Risk Coverage” has the meaning given to that term in
		Exhibit C.
	 

	 
		“Written Notice” means, with reference to the Issuer, the Trustee,
		the Operating Bank, the Cash Manager or the provider of any Eligible Credit
		Facility, a written instrument executed by a Responsible Officer of such
		Person.
	 

	 
		Section 1.02 Rules of Construction. Unless the context otherwise requires:
	 

	 
		(a) A term has the meaning assigned to it
		and an accounting term not otherwise defined has the meaning assigned to it in
		accordance with GAAP.
	 

	 
		(b) The terms “herein”,
		“hereof” and other words of similar import refer to this Indenture as
		a whole and not to any particular Article, Section or other subdivision.
	 

	 
		(c) Unless otherwise indicated in context,
		all references to Articles, Sections, Schedules or Exhibits refer to an Article
		or Section of, or a Schedule or Exhibit to, this Indenture.
	 

	 
		 
	 

	 
		33
	 

	 
		 
	 

	 
	 

	 

	 
		(d) Words of the masculine, feminine or
		neuter gender shall mean and include the correlative words of other genders,
		and words in the singular shall include the plural, and vice versa.
	 

	 
		(e) The terms “include”,
		“including” and similar terms shall be construed as if followed by
		the phrase “without limitation”.
	 

	 
		(f) Unless otherwise indicated, references
		to a subclass of Notes shall be to the Class G-1 Notes or to another subclass
		of Refinancing Notes or Additional Notes, as applicable; and references to a
		class of Notes shall be to the Initial Notes or to a class of Refinancing Notes
		or Additional Notes, as applicable.
	 

	 
		(g) References in this Indenture to an
		agreement or other document (including this Indenture) include references to
		such agreement or document as amended, replaced or otherwise modified (without,
		however, limiting the effect of the provisions of this Indenture with regard to
		any such amendment, replacement or modification), and the provisions of this
		Indenture apply to successive events and transactions. References to any Person
		shall include such Person’s successors in interest and permitted
		assigns.
	 

	 
		(h) References in this Indenture to any
		statute or other legislative provision shall include any statutory or
		legislative modification or re-enactment thereof, or any substitution therefor,
		and references to any governmental Person shall include reference to any
		governmental Person succeeding to the relevant functions of such Person.
	 

	 
		(i) References in this Indenture to the
		Notes of any class or subclass include the conditions applicable to the Notes
		of such class or subclass; and any reference to any amount of money due or
		payable by reference to the Notes of any class or subclass shall include any
		sum covenanted to be paid by the Issuer under this Indenture.
	 

	 
		(j) References in this Indenture to any
		action, remedy or method of judicial proceeding for the enforcement of the
		rights of creditors or of security shall be deemed to include, in respect of
		any jurisdiction other than the state of New York, references to such action,
		remedy or method of judicial proceeding for the enforcement of the rights of
		creditors or of security available or appropriate in such jurisdiction as shall
		most nearly approximate such action, remedy or method of judicial proceeding
		described or referred to in this Indenture.
	 

	 
		(k) Where any payment is to be made, funds
		applied or any calculation is to be made hereunder on a day which is not a
		Business Day, unless any Related Document otherwise provides, such payment
		shall be made, funds applied and calculation made on the next succeeding
		Business Day, and payments (unless otherwise provided for in respect of the
		Notes) shall be adjusted accordingly. Where any calculation is to be made
		hereunder on a Calculation Date or any amount hereunder is in respect of a
		Calculation Date, such calculation shall be made as of the close of business on
		such Calculation Date and such amount shall be in respect of the close of
		business on such Calculation Date.
	 

	 
		Section 1.03 Compliance Certificates and Opinions. Upon any application or request by the Issuer to the
		Trustee to take any action under any provision of this Indenture, the Issuer
		shall furnish to the Trustee an Officer’s Certificate stating that, in the
		opinion of the signers thereof, all conditions precedent, if any, provided for
		in this Indenture relating to the proposed action have been complied with, and
		an Opinion of Counsel stating that, in the opinion of such counsel, all such
		conditions precedent, if any, have been complied with, except that in the case
		of any such application or request as to which the 
	 

	 
		 
	 

	 
		34
	 

	 
		 
	 

	 
	 

	 

	 
		furnishing of such documents is specifically
		required by any provision of this Indenture relating to such particular
		application or request, no additional certificate or opinion need be
		furnished.
	 

	 
		Every certificate or opinion with respect to
		compliance with a condition or covenant provided for in this Indenture or any
		indenture supplemental hereto shall include:
	 

	 
		(a) a statement that each individual signing
		such certificate or opinion has read such covenant or condition and the
		definitions in this Indenture relating thereto;
	 

	 
		(b) a brief statement as to the nature and
		scope of the examination or investigation upon which the statements or opinions
		contained in such certificate or opinion are based;
	 

	 
		(c) a statement that, in the opinion of each
		such individual, he has made such examination or investigation as is necessary
		to enable him to express an informed opinion as to whether or not such covenant
		or condition has been complied with; and
	 

	 
		(d) a statement as to whether, in the
		opinion of each such individual, such condition or covenant has been complied
		with.
	 

	 
		Section 1.04 Acts of Holders.
		(a) Any direction, consent, waiver or other action provided by this Indenture
		in respect of the Notes of any subclass to be given or taken by Holders may be
		embodied in and evidenced by one or more instruments of substantially similar
		tenor signed by such Holders in person or by an agent or proxy duly appointed
		in writing; and, except as herein otherwise expressly provided, such action
		shall become effective when such instrument or instruments are delivered to the
		Trustee, to each Rating Agency where it is hereby expressly required pursuant
		to this Indenture and to the Issuer. Such instrument or instruments (and the
		action embodied therein and evidenced thereby) are herein sometimes referred to
		as the “Act” of the Holders signing such instrument or instruments.
		Proof of execution of any such instrument or of a writing appointing any such
		agent shall be sufficient for any purpose under this Indenture and conclusive
		in favor of the Trustee or the Issuer, if made in the manner provided in this
		Section.
	 

	 
		(b) The fact and date of the execution by
		any Person of any such instrument or writing may be proved by the certificate
		of any notary public or other officer of any jurisdiction authorized to take
		acknowledgments of deeds or administer oaths that the Person executing such
		instrument acknowledged to him the execution thereof, or by an affidavit of a
		witness to such execution sworn to before any such notary or such other officer
		and where such execution is by an officer of a corporation or association,
		trustee of a trust or member of a partnership, on behalf of such corporation,
		association, trust or partnership, such certificate or affidavit shall also
		constitute sufficient proof of his authority. The fact and date of the
		execution of any such instrument or writing, or the authority of the Person
		executing the same, may also be proved in any other reasonable manner which the
		Trustee deems sufficient.
	 

	 
		(c) In determining whether the Holders have
		given any direction, consent, request, demand, authorization, notice, waiver or
		other Act (a “Direction”), under this Indenture, Notes owned by the Issuer
		or any Affiliate of the Issuer shall be disregarded and deemed not to be
		Outstanding for purposes of any such determination. In determining whether the
		Trustee shall be protected in relying upon any such Direction, only Notes which
		a Responsible Officer of the Trustee actually knows to be so owned shall be so
		disregarded. Notwithstanding the foregoing, (i) if any such Person owns
		100% of the Notes of any subclass Outstanding, such Notes shall not be so
		disregarded as aforesaid, and (ii) if any amount of Notes of such subclass
		so owned by any such Person have been pledged in good faith, such Notes shall
		not be disregarded as aforesaid if 
	 

	 
		 
	 

	 
		35
	 

	 
		 
	 

	 
	 

	 

	 
		the pledgee establishes to the satisfaction
		of the Trustee the pledgee’s right so to act with respect to such Notes
		and that the pledgee is not the Issuer or any Affiliate of the Issuer.
	 

	 
		(d) The Issuer may at its option, by
		delivery of Officers’ Certificates to the Trustee, set a record date other
		than the Record Date to determine the Holders in respect of the Notes of any
		subclass entitled to give any Direction in respect of such Notes. Such record
		date shall be the record date specified in such Officer’s Certificate
		which shall be a date not more than 30 days prior to the first
		solicitation of Holders in connection therewith. If such a record date is
		fixed, such Direction may be given before or after such record date, but only
		the Holders of record of the applicable subclass at the close of business on
		such record date shall be deemed to be Holders for the purposes of determining
		whether Holders of the requisite proportion of Outstanding Notes of such
		subclass have authorized or agreed or consented to such Direction, and for that
		purpose the Outstanding Notes of such subclass shall be computed as of such
		record date; provided that no such Direction by the Holders on such record
		date shall be deemed effective unless it shall become effective pursuant to the
		provisions of this Indenture not later than one year after the record
		date.
	 

	 
		(e) Any Direction or other action by the
		Holder of any Note shall bind the Holder of every Note issued upon the transfer
		thereof or in exchange therefor or in lieu thereof, whether or not notation of
		such action is made upon such Note.
	 

	 
		ARTICLE II
  
	 

	 
		THE NOTES
	 

	 
		Section 2.01 Authorized Amount; Terms; Form; Execution and
		Delivery. (a) The Outstanding Principal
		Balance of any subclass of Notes which may be authenticated and delivered from
		time to time under this Indenture shall not exceed the initial Outstanding
		Principal Balance set forth for such subclass of Notes in the definition
		thereof or, with respect to any subclass of Refinancing Notes or Additional
		Notes, authorized in a Board Resolution; provided that at
		no time may the Outstanding Principal Balance of any subclass of Refinancing
		Notes exceed the Redemption Price of the subclass of Notes being refinanced
		thereby plus Refinancing Expenses relating thereto, any Policy Premium and any
		Policy Redemption Premium, if any, due and payable to the Policy Provider and
		any amount to be deposited in any Cash Collateral Account for such Refinancing
		Notes; and provided, further, that
		any Additional Notes shall be issued in accordance with Section 2.11. All Notes
		of any class need not be issued at the same time and any class of Notes may be
		reopened, without the consent of any Holder, for issuances of Additional Notes
		or Refinancing Notes of such class, subject in all cases to Sections 2.10,
		2.11, 3.10, 3.12 and 5.02 and any other applicable provision of this
		Indenture.
	 

	 
		The Initial Notes issuable hereunder on the
		Initial Closing Date shall be issued in a single subclass. The Initial Notes
		shall be designated the Class G-1 Notes.
	 

	 
		Interest at the Applicable Rate of Interest
		shall accrue on any subclass of the Floating Rate Notes from the relevant
		Closing Date and shall be computed for each Interest Accrual Period on the
		basis of a 360-day year and the actual number of days elapsed in such Interest
		Accrual Period on the Outstanding Principal Balance of such Notes on the first
		day of such Interest Accrual Period. Interest at the Applicable Rate of
		Interest shall accrue on any subclass of the Fixed Rate Notes from the relevant
		Closing Date and shall be computed for each Interest Accrual Period on the
		basis of a 360-day year consisting of twelve 30-day months.
	 

	 
		 
	 

	 
		36
	 

	 
		 
	 

	 
	 

	 

	 
		Any amount of interest on any subclass of
		Notes not paid when due shall, to the fullest extent permitted by applicable
		law, bear interest at an interest rate per annum equal to the Applicable Rate
		of Interest for such Notes from the date when due until such amount is paid or
		duly provided for, payable on the next succeeding Payment Date, subject to the
		availability of the Available Collections therefor in accordance with the
		priority of payments under Section 3.09.
	 

	 
		(b) There shall be issued and delivered and
		authenticated on the relevant Closing Date, to each of the Holders, Notes in
		the principal amounts and maturities and bearing the interest rates, in each
		case substantially in the form set forth in the applicable exhibit to this
		Indenture or in any indenture supplemental hereto, with such appropriate
		insertions, omissions, substitutions and other variations as are required or
		permitted by this Indenture, and may have such letters, numbers or other marks
		of identification and such legends or endorsements printed, lithographed or
		engraved thereon, as may be required to comply with the rules of any securities
		exchange on which such Notes may be listed or to conform to any usage in
		respect thereof, or as may, consistently herewith, be prescribed by the
		Director executing such Notes, such determination by the Director to be
		evidenced by his or her execution of the Notes.
	 

	 
		Definitive Notes of each subclass shall be
		printed, lithographed or engraved or produced by any combination of these
		methods or may be produced in any other manner permitted by the rules of any
		securities exchange on which the Notes may be listed, all as determined by the
		Director or other authorized officer executing such Notes, as evidenced by his
		or her execution of such Notes.
	 

	 
		Each subclass of Notes offered and sold in
		reliance on Rule 144A shall be issued initially in the form of one or more
		permanent global Notes in registered form without interest coupons and with
		such applicable legends as are provided for in Section 2.02, substantially in
		the form set forth in the applicable exhibit to this Indenture or in any
		indenture supplemental hereto (each, a “Rule 144A Global Note”), deposited with the Depositary and registered in
		the name of Cede & Co., as nominee of DTC, in accordance with this
		Indenture and duly executed by the Issuer and authenticated by the Trustee as
		hereinafter provided. The aggregate principal amount of each Rule 144A
		Global Note may from time to time be increased or decreased by adjustments made
		by the Trustee on the applicable Global Note or on the records of the Trustee
		as hereinafter provided.
	 

	 
		Each subclass of Notes offered and sold in
		offshore transactions in reliance on Regulation S shall be issued
		initially in the form of one or more permanent global Notes in registered form
		without interest coupons and with such applicable legends as are provided for
		in Section 2.02, substantially in the form set forth in the applicable exhibit
		to this Indenture or in any indenture supplemental hereto (each, a
		“Regulation S Global
		Note”), deposited with the
		Depositary and registered in the name of Cede & Co., as nominee of DTC, in
		accordance with this Indenture and duly executed by the Issuer and
		authenticated by the Trustee as hereinafter provided. Until the 40th day after
		the later of the commencement of the offer of any subclass of Notes initially
		issued in the form of a Regulation S Global Note and the Closing Date of
		the offering of such Notes, interests in such Regulation S Global Note may
		be held only through Participants acting for and on behalf of Euroclear and
		Clearstream. The aggregate principal amount of each Regulation S Global
		Note may from time to time be increased or decreased by adjustments made by the
		Trustee on the applicable Global Note or on the records of the Trustee as
		hereinafter provided.
	 

	 
		(c) On the date of any Refinancing, the
		Issuer shall issue and deliver as provided in Section 2.10 an aggregate
		principal amount of Refinancing Notes having the maturities and bearing the
		interest rates and such other terms authorized by one or more Board Resolutions
		or in any indenture supplemental hereto providing for the issuance of such
		Notes or specified in the form of such Notes, in each case in accordance with
		Section 2.10.
	 

	 
		 
	 

	 
		37
	 

	 
		 
	 

	 
	 

	 

	 
		(d) On the date of the issuance, if any, of
		any Additional Notes, the Issuer shall issue and deliver, as provided in
		Sections 2.11 and 5.02(f), an aggregate principal amount of Additional
		Notes having the maturities and bearing the interest rates and such other terms
		authorized by one or more Board Resolutions or in any indenture supplemental
		hereto providing for the issuance of such Notes or specified in the form of
		such Notes, in each case in accordance with Section 2.11.
	 

	 
		(e) The Notes shall be executed on behalf of
		the Issuer by the manual or facsimile signature of a Director or other
		authorized officer.
	 

	 
		(f) Each Note bearing the manual or
		facsimile signatures of any individual who was at the time such Note was
		executed a Director shall bind the Issuer, notwithstanding that any such
		individual has ceased to hold such office prior to the authentication and
		delivery of such Notes or any payment thereon.
	 

	 
		(g) At any time and from time to time after
		the execution of any Notes, the Issuer may deliver such Notes to the Trustee
		for authentication and, subject to the provisions of clause (h) below, the
		Trustee shall authenticate such Notes by manual or facsimile signature upon
		receipt by it of written orders of the Issuer. The Notes shall be authenticated
		on behalf of the Trustee by any Responsible Officer of the Trustee.
	 

	 
		(h) No Note shall be entitled to any benefit
		under this Indenture or be valid or obligatory for any purpose, unless it shall
		have been executed on behalf of the Issuer as provided in clause (e) above
		and authenticated by or on behalf of the Trustee as provided in clause (g)
		above. Such signatures shall be conclusive evidence that such Note has been
		duly executed and authenticated under this Indenture. Each Note shall be dated
		the date of its authentication.
	 

	 
		(i) The Issuer shall execute and the Trustee
		shall, in accordance with this Section 2.01 and at the written direction of the
		Issuer, authenticate the Global Notes and deliver the Global Notes to the
		Depositary. Upon receipt by the Depositary or a custodian therefor of each
		Global Note authenticated and delivered by the Trustee, the Issuer shall, in
		accordance with the terms of this Indenture, cause the Depositary, acting as
		agent for the Issuer, to issue to the Depositary a Depositary Interest in such
		Global Note by recording such Depositary Interest in the register of the
		Depositary in the name of Cede & Co., as nominee of the Depositary, or such
		other nominee as the Depositary shall specify. The Depositary will credit, on
		its internal system, the respective principal amounts of individual Beneficial
		Interests to the accounts of persons who have accounts with the Depositary.
		Ownership of Beneficial Interests will be limited to Participants or persons
		who hold Beneficial Interests through Participants. Ownership of Beneficial
		Interests will be shown on, and the transfer of that ownership will be effected
		only through, records maintained by the Depositary (with respect to interests
		of Participants) and the records of Participants (with respect to interests of
		persons other than Participants).
	 

	 
		Neither the Depositary nor its Participants
		shall have any rights either under this Indenture or under any Global Note held
		on their behalf by the Depositary. The Holder of any Global Note may be treated
		by the Issuer, the Trustee and any agent of the Issuer or the Trustee as the
		absolute owner of such Global Note for all purposes whatsoever. Notwithstanding
		the foregoing, nothing herein shall prevent the Issuer, the Trustee or any
		agent of the Issuer or the Trustee from giving effect to any written
		certification, proxy or other authorization furnished by the Depositary, as a
		Holder, or impair, as between the Depositary, as a Holder and the Depositary
		and its Participants, the operation of customary practices of such Depositary
		governing the exercise of the rights of an owner of a Beneficial Interest in
		any Global Note. The Depositary, as a Holder, may grant proxies and otherwise
		authorize any person, including the 
	 

	 
		 
	 

	 
		38
	 

	 
		 
	 

	 

	 
	 

	 

	 
		Depositary and the Participants and persons
		that may hold interests through Participants, to take any action which a Holder
		is entitled to take under this Indenture or the Notes.
	 

	 
		Section 2.02 Restrictive Legends. (a) Each Global Note and, except as provided in
		Section 2.12(f), each Definitive Note (and all Notes issued in exchange
		therefor or upon registration of transfer or substitution thereof), except as
		provided in Section 2.12(f), shall bear the following legends (in addition to
		any other applicable legends or restrictions) on the face thereof:
	 

	 
		THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
		U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
		WITH ANY SECURITIES REGULATORY AUTHORITY IN ANY JURISDICTION AND, ACCORDINGLY,
		MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY
		ITS ACQUISITION HEREOF, THE HOLDER (i) REPRESENTS THAT (A) IT IS A
		“QUALIFIED INSTITUTIONAL BUYER” (A “QUALIFIED INSTITUTIONAL
		BUYER”) AS DEFINED IN RULE 144A (“RULE 144A”) UNDER THE
		SECURITIES ACT AND HAS ACQUIRED THIS NOTE IN A TRANSACTION MEETING THE
		REQUIREMENTS OF RULE 144A, (B) IT IS AN INSTITUTIONAL “ACCREDITED
		INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D
		(“REGULATION D”) UNDER THE SECURITIES ACT (COLLECTIVELY, AN
		“INSTITUTIONAL ACCREDITED INVESTOR”) WHO, PRIOR TO ITS PURCHASE OF
		THIS NOTE, SHALL HAVE SIGNED AN AGREEMENT IN THE FORM OF EXHIBIT I TO THE TRUST
		INDENTURE (THE “INDENTURE”) DATED AS OF [  
		         ], 2007 AMONG BABCOCK
		& BROWN AIR FUNDING I LIMITED (THE “ISSUER”), DEUTSCHE BANK TRUST
		COMPANY AMERICAS, BNP PARIBAS AND AMBAC ASSURANCE CORPORATION, OR, (C) IT IS
		NOT A U.S. PERSON (WITHIN THE MEANING OF THE SECURITIES ACT) AND IS ACQUIRING
		THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S
		(“REGULATION S”) UNDER THE SECURITIES ACT; (ii) AGREES THAT IT WILL
		NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE ISSUER OR ITS
		AFFILIATE (AS DEFINED IN RULE 501(b) OF REGULATION D), (B) TO AN INSTITUTIONAL
		ACCREDITED INVESTOR WHO, PRIOR TO ITS PURCHASE OF THIS NOTE, SHALL HAVE SIGNED
		AN AGREEMENT IN THE FORM OF EXHIBIT I TO THE INDENTURE, (C) TO A QUALIFIED
		INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A, (D) IN AN OFFSHORE
		TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S, (E) PURSUANT TO
		AN EXEMPTION FROM REGISTRATION IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES
		ACT (IF AVAILABLE), OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
		REGISTRATION UNDER THE SECURITIES ACT AND, IN EACH OF THE CASES (A) THROUGH (F)
		ABOVE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE IN THE
		UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION; AND (iii) AGREES THAT IT
		WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE
		SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFER IS
		PURSUANT TO AN EXEMPTION FROM REGISTRATION IN ACCORDANCE WITH RULE 144 UNDER
		THE SECURITIES ACT OR PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION
		UNDER THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S UNDER THE
		SECURITIES ACT, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE
		AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS
		EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING
		MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
		REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
		“OFFSHORE TRANSACTION”, “UNITED STATES” AND “U.S.
		PERSONS” 
	 

	 
		 
	 

	 
		39
	 

	 
		 
	 

	 
	 

	 

	 
		HAVE THE MEANINGS GIVEN TO THEM BY
		REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
		REQUIRING THE REGISTRAR TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN
		VIOLATION OF THE FOREGOING RESTRICTIONS.
	 

	 
		THE CLASS G-1 NOTES MAY NOT BE OFFERED OR
		SOLD (A) TO THE EXTENT APPLICABLE, OTHERWISE THAN IN CONFORMITY WITH THE
		PROVISIONS OF THE INVESTMENT INTERMEDIARIES ACT 1995 OF IRELAND, AS AMENDED,
		INCLUDING, WITHOUT LIMITATION, SECTIONS 9 AND 23 (INCLUDING ADVERTISING
		RESTRICTIONS MADE THEREUNDER) THEREOF AND THE CODES OF CONDUCT MADE UNDER
		SECTION 37 THEREOF OR, IN THE CASE OF A CREDIT INSTITUTION EXERCISING ITS
		RIGHTS UNDER THE DIRECTIVE 2006/48/EC OF THE EUROPEAN PARLIAMENT AND OF THE
		COUNCIL OF 14 JUNE 2006 (AS AMENDED OR EXTENDED)) IN CONFORMITY WITH THE CODES
		OF CONDUCT OR PRACTICE MADE UNDER SECTION 117(1) OF THE CENTRAL BANK ACT 1989
		OF IRELAND, AS AMENDED AND (B) OTHERWISE THAN IN CIRCUMSTANCES WHICH WOULD
		REQUIRE THE PUBLICATION OF A PROSPECTUS IN RESPECT OF THE OFFER IN ACCORDANCE
		WITH REGULATION 12 OF THE PROSPECTUS (DIRECTIVE 2003/71/EC) REGULATIONS 2005 OF
		IRELAND. 
	 

	 
		THE CLASS G-1 NOTES MAY NOT BE OFFERED OR
		SOLD TO ANY PERSON RESIDENT OR INCORPORATED IN IRELAND OR ANY PERSON WHICH WILL
		HOLD THE CLASS G-1 NOTES THROUGH A BRANCH, AGENCY OR OTHER PLACE OF BUSINESS
		ESTABLISHED IN IRELAND.
	 

	 
		UNLESS THIS NOTE IS PRESENTED BY AN
		AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
		CORPORATION (“DTC”), TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF
		TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IN EXCHANGE FOR THIS NOTE IS
		REGISTERED IN THE NAME OF CEDE & CO., OR IN SUCH OTHER NAME AS IS REQUESTED
		BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE
		& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
		REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
		OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
		HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
	 

	 
		TRANSFERS OF THIS NOTE SHALL BE LIMITED TO
		TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
		THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS NOTE
		SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
		FORTH ON THE REVERSE HEREOF.
	 

	 
		BY ITS ACQUISITION OR ACCEPTANCE OF THIS
		NOTE OR ANY INTEREST HEREIN, THE HOLDER WILL BE DEEMED TO HAVE REPRESENTED,
		WARRANTED AND AGREED (OR IN THE CASE OF A DEFINITIVE NOTE WILL BE REQUIRED TO
		REPRESENT, WARRANT AND AGREE) THAT EITHER: (A) NO ASSETS OF (I) AN EMPLOYEE
		BENEFIT PLAN SUBJECT TO TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY
		ACT OF 1974, AS AMENDED (“ERISA”),
		(II) A PLAN DESCRIBED IN SECTION 4975(E)(1) OF THE U.S. INTERNAL REVENUE CODE
		OF 1986, AS AMENDED (THE “CODE”),
		(III) A PLAN, ACCOUNT OR ARRANGEMENT (SUCH AS 
	 

	 
		 
	 

	 
		40
	 

	 
		 
	 

	 
	 

	 

	 
		A GOVERNMENTAL, CHURCH OR NON-U.S. PLAN)
		THAT IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER U.S. LAW THAT IS
		SUBSTANTIALLY SIMILAR TO SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
		(“SIMILAR LAW”) OR (IV) AN ENTITY WHOSE UNDERLYING ASSETS ARE
		DEEMED TO INCLUDE ASSETS OF ANY SUCH EMPLOYEE BENEFIT PLAN, PLAN, ACCOUNT OR
		ARRANGEMENT, HAVE BEEN USED TO ACQUIRE OR HOLD THIS NOTE OR ANY INTEREST
		HEREIN; OR (B) THE ACQUISITION AND HOLDING OF THIS NOTE OR ANY INTEREST HEREIN
		BY THE HOLDER DO NOT AND WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
		PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
		OR A VIOLATION OF ANY SIMILAR LAW, AS APPLICABLE.
	 

	 
		(b) Each Regulation S Global Note
		(except as provided in Section 2.12(f)) shall, in addition to the legends
		specified in Section 2.02(a), bear the following legend on the face
		thereof:
	 

	 
		PRIOR TO THE EXPIRATION OF A RESTRICTED
		PERIOD ENDING ON THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (AS DEFINED IN RULE 903(B)(2) OF REGULATION S) OR
		SUCH LATER DATE AS THE ISSUER MAY NOTIFY TO THE TRUSTEE, THIS NOTE, OR ANY
		BENEFICIAL INTEREST HEREIN, MAY NOT BE RESOLD OR OTHERWISE TRANSFERRED EXCEPT
		(A) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S, (B)
		TO AN INSTITUTIONAL ACCREDITED INVESTOR WHO, PRIOR TO ITS PURCHASE OF THIS
		NOTE, SHALL HAVE SIGNED AN AGREEMENT IN THE FORM OF EXHIBIT I TO THE INDENTURE
		OR (C) TO A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A AND
		(D) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
		UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.
	 

	 
		(c) Each Definitive Note (except as provided
		in Section 2.12(f)) shall also bear the following legend on the face
		thereof:
	 

	 
		IN CONNECTION WITH ANY TRANSFER, THE HOLDER
		WILL DELIVER TO THE REGISTRAR SUCH CERTIFICATES AND OTHER INFORMATION AS IT MAY
		REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
		RESTRICTIONS AND THE OTHER RESTRICTIONS CONTAINED IN THE INDENTURE.
	 

	 
		Section 2.03 Registrar and Paying Agent. (a) With respect to each subclass of Notes, there
		shall at all times be maintained (i) an office or agency in the location
		set forth in Section 12.05 where Definitive Notes of such subclass may be
		presented or surrendered for registration of transfer or for exchange (the
		“Registrar”), (ii) an office or agency in the location
		set forth in Section 12.05 (other than Ireland), where Notes of any subclass
		may, to the extent required hereunder, be presented for payment (each, a
		“Paying Agent”) and (iii) an office or agency where notices
		and demands in respect of the payment of such Notes may be served. For so long
		as any Securities are listed on the Irish Stock Exchange, the Issuer shall
		appoint and maintain a Paying Agent in Ireland (the “Irish
		Paying Agent”). The Issuer shall
		cause the Registrar (acting as agent of the Issuer, solely for U.S. federal
		income tax purposes) to keep a register of each subclass of Definitive Notes
		and of their transfer and exchange (the “Register”).
		Written notice of any change of location of such office or agency shall be
		given by the Trustee to the Issuer and the Holders of such subclass. In the
		event that no such office or agency shall be maintained or no such notice of
		location or of change of location shall be given, presentations and demands may
		be made and notices may be served at the Corporate Trust Office of the Trustee,
		who shall act as the Registrar.
	 

	 
		 
	 

	 
		41
	 

	 
		 
	 

	 
	 

	 

	 
		(b) Each Authorized Agent shall be a bank or
		trust company, shall be a corporation organized and doing business under the
		laws of the United States of America or any state or territory thereof or of
		the District of Columbia, with a combined capital and surplus of at least
		$75,000,000 (or having a combined capital and surplus in excess of $5,000,000
		and the obligations of which, whether now in existence or hereafter incurred,
		are fully and unconditionally Guaranteed by a corporation organized and doing
		business under the laws of the United States of America, any state or territory
		thereof or of the District of Columbia and having a combined capital and
		surplus of at least $75,000,000) and shall be authorized under the laws of the
		United States of America or any state or territory thereof to exercise
		corporate trust powers, subject to supervision by federal or state authorities
		(such requirements, the “Eligibility Requirements”). The Trustee shall initially be a Paying Agent
		and Registrar hereunder with respect to the Notes of each subclass.
	 

	 
		(c) Any corporation into which any
		Authorized Agent may be merged or converted or with which it may be
		consolidated, or any corporation resulting from any merger, consolidation or
		conversion to which any Authorized Agent shall be a party, or any corporation
		succeeding to the corporate trust business of any Authorized Agent, shall be
		the successor of such Authorized Agent hereunder, if such successor corporation
		is otherwise eligible under this Section, without the execution or filing of
		any paper or any further act on the part of the parties hereto or such
		Authorized Agent or such successor corporation.
	 

	 
		(d) Any Authorized Agent may at any time
		resign by giving Written Notice of resignation to the Trustee and the Issuer.
		The Issuer may, and at the request of the Trustee shall, at any time terminate
		the agency of any Authorized Agent by giving Written Notice of termination to
		such Authorized Agent and to the Trustee. Upon the resignation or termination
		of an Authorized Agent or if at any time any such Authorized Agent shall cease
		to be eligible under this Section (when, in either case, no other Authorized
		Agent performing the functions of such Authorized Agent shall have been
		appointed by the Trustee), the Issuer shall promptly appoint one or more
		qualified successor Authorized Agents, reasonably satisfactory to the Trustee,
		to perform the functions of the Authorized Agent which has resigned or whose
		agency has been terminated or who shall have ceased to be eligible under this
		Section. The Issuer shall give Written Notice of any such appointment made by
		it to the Trustee; and in each case the Trustee shall mail notice of such
		appointment to all Holders of the related subclass as their names and addresses
		appear on the Register for such subclass.
	 

	 
		(e) The Issuer agrees to pay, or cause to be
		paid, from time to time to each Authorized Agent reasonable compensation for
		its services and to reimburse it for its reasonable expenses to be agreed to
		pursuant to separate agreements with each such Authorized Agent.
	 

	 
		Section 2.04 Paying Agent to Hold Money in Trust. The Trustee shall require each Paying Agent other than
		the Trustee to agree in writing that all moneys deposited with any Paying Agent
		for the purpose of any payment on the Notes or to the Policy Provider shall be
		deposited and held in trust for the benefit of the Holders (with regard to
		payments on the Notes) or the Policy Provider, as the case may be, subject to
		the provisions of this Section. Moneys so deposited and held in trust shall
		constitute a separate trust fund for the benefit of the Holders with respect to
		which such money was deposited.
	 

	 
		The Trustee may at any time, for the purpose
		of obtaining the satisfaction and discharge of this Indenture or for any other
		purpose, direct any Paying Agent to pay to the Trustee all sums held in trust
		by such Paying Agent; and, upon such payment by any Paying Agent to the
		Trustee, such Paying Agent shall be released from all further liability with
		respect to such money.
	 

	 
		 
	 

	 
		42
	 

	 
		 
	 

	 
	 

	 

	 
		Section 2.05 Method of Payment. (a) On each Payment Date, the Trustee shall, or shall
		instruct a Paying Agent (other than the Irish Paying Agent) to, pay, to the
		extent of the Available Collections therefor transferred to a Note Account, to
		the Holders all principal, Redemption Price or Outstanding Principal Balance
		of, and interest on, the Notes of each subclass (other than payments received
		following an Event of Default in respect of any subclass of Notes and payments
		on Notes issued in the form of Definitive Notes); provided, that
		in the event and to the extent receipt of any payment is not confirmed by the
		Trustee or Paying Agent (other than the Irish Paying Agent) by 1:00 p.m.
		(New York City time) on such Payment Date or any Business Day thereafter,
		distribution thereof shall be made on the Business Day following the Business
		Day such payment is received.
	 

	 
		(b) Payments on a Payment Date with respect
		to (i) any Notes in the form of Global Notes shall be made by wire
		transfer to or as instructed by the Depositary at least five Business Days
		before the applicable Payment Date so long as it is the Holder thereof and
		(ii) Notes in the form of Definitive Notes shall be made by check mailed
		to each Holder of a Definitive Note determined on the applicable Record Date,
		at its address appearing in the applicable Register; alternatively, Holders of
		Definitive Notes having an aggregate principal amount of not less than
		$1,000,000, upon application in writing to the Trustee, not later than the
		applicable Record Date, may have such payment made by wire transfer to an
		account designated by such Holder at a financial institution in New York, New
		York. The final payment with respect to any Global Note or Definitive Note,
		however, shall be made only upon presentation and surrender of such Note by the
		Holder or its agent at the Corporate Trust Office or agency of the Trustee or
		Paying Agent (other than the Irish Paying Agent) specified in the notice given
		by the Trustee or Paying Agent with respect to such final payment. The Trustee
		or Paying Agent (other than the Irish Paying Agent) shall mail such notice of
		the final payment of each Note to the Holder thereof, specifying the date and
		amount of such final payment, no later than five Business Days prior to such
		final payment and such notice shall also be published by such publication as
		the Irish Stock Exchange may require and in such other publication as the Irish
		Paying Agent may determine to comply with its obligations hereunder.
	 

	 
		Section 2.06 Minimum Denomination. Each subclass of Notes shall be issued in minimum
		denominations of $200,000 and integral multiples of $1,000 in excess
		thereof.
	 

	 
		Section 2.07 Transfer and Exchange; Cancellation. (ai) Certain Transfers and Exchanges. Transfer of any
		Global Note shall be by delivery. The Issuer represents that it has agreed with
		the Depositary that a Global Note and the corresponding Depositary Interests
		therein shall only be transferred in the circumstances described in this
		Indenture. All Global Notes will be exchanged by the Issuer for Notes in
		definitive registered form substantially as set forth in the applicable exhibit
		to this Indenture (each, a “Definitive Note”) if (i) the Depositary notifies the Issuer
		in writing that it is no longer willing or able to properly discharge its
		responsibilities as depositary with respect to the Depositary Interests and a
		successor depositary is not appointed in accordance with the terms of this
		Indenture by the Depositary at the request of the Issuer within 90 days of
		such notice, (ii) the Issuer or the Depositary advises the Trustee in
		writing that the Depositary is no longer willing or able to properly discharge
		its responsibilities as depositary and the Issuer is unable to appoint a
		successor depositary acceptable to the Trustee within 90 days of such
		notice or (iii) after the occurrence of an Event of Default with respect
		to any subclass of Notes, owners of Beneficial Interests of such subclass
		representing an aggregate of not less than 51% of the aggregate Outstanding
		Principal Balance of Notes of such subclass advise the Issuer, the Trustee, and
		the Depositary through the Participants in writing that the continuation of a
		book-entry system through the Depositary (or a successor thereto) is no longer
		in the best interests of such owners. Upon surrender to the Trustee of the
		Global Notes of any subclass, accompanied by registration instructions from the
		Holder of such Global Note as provided in this Indenture, the Issuer shall
		issue and the Trustee shall authenticate and deliver the Definitive Notes of
		such subclass to the owners thereof.
	 

	 
		 
	 

	 
		43
	 

	 
		 
	 

	 
	 

	 

	 
		None of the Issuer, the Paying Agent or the
		Trustee shall be liable for any delay in delivery of such registration
		instructions and may conclusively rely on, and shall be fully protected in
		relying on, such instructions as provided in accordance with the terms of this
		Indenture. Upon the issuance of Definitive Notes of any subclass, the Trustee
		shall recognize the Persons in whose name the Definitive Notes are registered
		in the Register as Holders of such subclass hereunder. Neither the Issuer nor
		the Trustee shall be liable if the Trustee or the Issuer is unable to appoint a
		successor Depositary.
	 

	 
		The transfer and exchange of Beneficial
		Interests shall be effected through the Depositary, in accordance with this
		Indenture and the Applicable Procedures of the Depositary therefor. Beneficial
		Interests corresponding to Global Notes shall be subject to restrictions on
		transfer comparable to those set forth in Section 2.12 and elsewhere herein.
		The Trustee shall have no obligation to ascertain the Depositary’s
		compliance with any such restrictions on transfer.
	 

	 
		Any Beneficial Interest corresponding to one
		of the Global Notes of any subclass that is transferred to a Person who will
		hold such Beneficial Interest in the form of an interest in the other Global
		Note of such subclass will, upon transfer, cease to be an interest in such
		first Global Note and become an interest in such other Global Note and,
		accordingly, will thereafter be subject to all transfer restrictions, if any,
		and other procedures applicable to Beneficial Interests in such other Global
		Note for as long as it remains such an interest.
	 

	 
		Global Notes may also be exchanged or
		replaced, in whole or in part, as provided in Section 2.08. Every Note
		authenticated and delivered in exchange for, or in lieu of, a Global Note or
		any portion thereof pursuant to Section 2.08 shall be authenticated and
		delivered in the form of, and shall be, a Global Note in registered form. A
		Global Note may not be exchanged for another Note other than as provided in
		Sections 2.07(a) and 2.08.
	 

	 
		(b) Transfer and Exchange of Definitive
		Notes. A Holder may transfer a
		Definitive Note only by written application to the Registrar stating the name
		of the proposed transferee and otherwise complying with the terms of this
		Indenture. No such transfer shall be effected until, and such transferee shall
		succeed to the rights of a Holder only upon, final acceptance and registration
		of the transfer by the Registrar in the Register.
	 

	 
		Prior to the due presentment for
		registration of transfer of a Definitive Note, the Issuer and the Trustee may
		deem and treat the applicable registered Holder as the absolute owner and
		Holder of such Definitive Note for the purpose of receiving payment of all
		amounts payable with respect to such Definitive Note and for all other purposes
		and shall not be affected by any Written Notice to the contrary. The Registrar
		(if different from the Trustee) shall promptly notify the Trustee and the
		Trustee shall promptly notify the Issuer of each request for a registration of
		transfer of a Definitive Note.
	 

	 
		When Definitive Notes are presented to the
		Registrar with a request to register their transfer or to exchange them for an
		equal principal amount of Definitive Notes of other authorized denominations,
		the Registrar shall register the transfer or make the exchange as requested if
		its requirements for such transactions are met (including, in the case of a
		transfer, that such Definitive Notes are duly endorsed or accompanied by a
		written instrument of transfer in form satisfactory to the Trustee and
		Registrar duly executed by the Holder thereof or by an attorney who is
		authorized in writing to act on behalf of the Holder). To permit registrations
		of transfers and exchanges, the Issuer shall execute and the Trustee shall
		authenticate Definitive Notes. Except as set forth in Sections 2.08 and
		2.09, no service charge shall be made for any registration of transfer or
		exchange of any Definitive Notes.
	 

	 
		The Issuer shall not be required to exchange
		or register the transfer of any Definitive Notes as above provided during the
		15-day period preceding the Final Maturity Date of any such Notes or during
		
	 

	 
		 
	 

	 
		44
	 

	 
		 
	 

	 
	 

	 

	 
		the period after the first mailing of any
		notice of Redemption of Notes to be redeemed. The Issuer shall not be required
		to exchange or register the transfer of any Definitive Notes that have been
		selected, called or are being called for Redemption except, in the case of any
		Definitive Notes where notice has been given that such Definitive Notes are to
		be redeemed in part, the portion thereof not so to be redeemed.
	 

	 
		(c) Cancellation.
		The Issuer at any time may deliver Notes to the Trustee for cancellation. Each
		Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
		to them for transfer, exchange, payment or purchase. The Trustee and no one
		else shall cancel and destroy in accordance with its customary practices in
		effect from time to time any such Notes, together with any other Notes
		surrendered to it for registration of transfer, exchange or payment. The Issuer
		may not issue new Notes (other than Refinancing Notes issued in connection with
		any Refinancing) to replace Notes it has redeemed, paid or delivered to the
		Trustee for cancellation.
	 

	 
		Section 2.08 Mutilated, Destroyed, Lost or Stolen
		Notes. If any Definitive Note or Global
		Note shall become mutilated, destroyed, lost or stolen, the Issuer shall, upon
		the written request of the Holder thereof and presentation of such Note or
		satisfactory evidence of destruction, loss or theft thereof to the Trustee or
		Registrar (including, in the case of Definitive Notes or Global Notes listed on
		the Irish Stock Exchange, at the offices of the co-registrar in Ireland, if
		any), issue, and the Trustee shall authenticate and the Trustee or Registrar
		shall deliver in exchange therefor or in replacement thereof, a new Definitive
		Note or Global Note of the same subclass, payable to such Holder in the same
		principal amount, of the same maturity, with the same payment schedule, bearing
		the same interest rate and dated the date of its authentication. If the
		Definitive Note or Global Note being replaced has become mutilated, such Note
		shall be surrendered to the Trustee or the Registrar and forwarded to the
		Issuer by the Trustee or the Registrar. If the Definitive Note or Global Note
		being replaced has been destroyed, lost or stolen, the Holder thereof shall
		furnish to the Issuer, the Trustee or the Registrar (a) such security or
		indemnity as may be required by them to save the Issuer, the Trustee and the
		Registrar harmless and (b) evidence satisfactory to the Issuer, the
		Trustee and the Registrar of the destruction, loss or theft of such Definitive
		Note or Global Note and of the ownership thereof. The Holder(s) will be
		required to pay any tax or other governmental charge imposed in connection with
		such exchange or replacement and any other expenses (including the fees and
		expenses of the Trustee and the Registrar) connected therewith.
	 

	 
		Section 2.09 Payments of Transfer Taxes. Upon the transfer of any Note or Notes pursuant to
		Section 2.07, the Issuer or the Trustee may require from the party requesting
		such new Note or Notes payment of a sum to reimburse the Issuer or the Trustee
		for, or to provide funds for the payment of, any transfer tax or similar
		governmental charge payable in connection therewith.
	 

	 
		Section 2.10 Refinancing of Initial Notes. (a) Subject to Section 2.01(a), the next succeeding
		two sentences, paragraphs (b), (c) and (d) below and Section 5.02(f)(ii),
		the Issuer may issue Refinancing Notes pursuant to this Indenture for the
		purpose of refinancing the Outstanding Principal Balance of the Initial Notes
		(including refinancings of Refinancing Notes). Each refinancing of the Initial
		Notes with the proceeds of an offering of Refinancing Notes (a
		“Refinancing”) shall be authorized pursuant to one or more
		Board Resolutions and shall be effected only following a Rating Agency
		Confirmation and upon obtaining the prior written consent of the Policy
		Provider (unless the Policy Non-Consent Event has occurred or will occur in
		connection with such Refinancing) and the Initial Liquidity Facility Provider
		(unless the Initial Liquidity Facility Non-Consent Event has occurred or will
		occur in connection with such Refinancing). Each Refinancing Note shall
		constitute a “Note” for all purposes under this Indenture, and shall
		have the class or subclass designation and such further designations added or
		incorporated in such title as specified in the related Board Resolutions, in
		any indenture supplemental hereto providing for the issuance of such Notes or
		specified in the form of such Notes, as the case may be.
	 

	 
		 
	 

	 
		45
	 

	 
		 
	 

	 
	 

	 

	 
		(b) A Refinancing of the Initial Notes in
		whole or in part may occur on any Payment Date after the Initial Closing Date
		and shall be effected as an Optional Redemption pursuant to Section 3.11. On
		the date of any Refinancing, the Issuer shall issue and sell an aggregate
		principal amount of Refinancing Notes not to exceed the Redemption Price of the
		Notes being refinanced thereby and any accrued and unpaid interest plus the
		Refinancing Expenses relating thereto, any Policy Premium plus Policy
		Redemption Premium, if any, due and payable to the Policy Provider and any
		amount to be deposited in any Cash Collateral Account for such Refinancing
		Notes. The proceeds of each sale of Refinancing Notes shall be used to make the
		deposit required by Section 3.11(d), to pay such Refinancing Expenses, any
		Policy Premium plus Policy Redemption Premium, if any, due and payable to the
		Policy Provider and to fund such Cash Collateral Account.
	 

	 
		(c) Each Refinancing Note shall contain such
		terms as may be established in or pursuant to the related Board Resolution
		(subject to Section 2.01), in any indenture supplemental hereto providing for
		the issuance of such Notes or specified in the form of such Notes to the extent
		permitted below, and shall have the same ranking pursuant to Section 3.09 with
		respect to all other Obligations as the Notes of the class to which such
		Refinancing Notes belong (and, with respect to other subclasses of such class,
		as provided in Section 3.10). Prior to any Refinancing, any or all of the
		following, as applicable, with respect to the related issue of each subclass of
		Refinancing Notes shall have been determined by the Issuer and set forth in one
		or more Board Resolutions, in any indenture supplemental hereto or specified in
		the form of such Notes, as the case may be:
	 

	 
		(i) the Initial Notes to be refinanced by
		such Refinancing Notes;
	 

	 
		(ii) the aggregate principal amount of such
		Refinancing Notes that may be issued;
	 

	 
		(iii) the proposed date of such
		Refinancing;
	 

	 
		(iv) the Expected Final Payment Date and the
		Final Maturity Date of such Refinancing Notes;
	 

	 
		(v) whether such Refinancing Notes are to
		have the benefit of any Eligible Credit Facility and, if so, the amount and
		other terms thereof and/or any increase in the Required Amount for any Cash
		Collateral Account;
	 

	 
		(vi) the rate at which such Refinancing
		Notes shall bear interest or the method by which such rate shall be
		determined;
	 

	 
		(vii) if other than denominations of
		$200,000 or higher integral multiples of $1,000 (with respect to Notes), the
		denomination or denominations in which such Refinancing Notes shall be
		issuable;
	 

	 
		(viii) whether beneficial owners of
		interests in any such permanent global Refinancing Note may exchange such
		interests for Refinancing Notes of the same class or subclass and of like tenor
		of any authorized form and denomination and the circumstances under which any
		such exchanges may occur, if other than in the manner provided in Section 2.07,
		and the circumstances under which and the place or places where any such
		exchanges may be made and the identity of any initial depositary therefor if
		not the Depositary;
	 

	 
		 
	 

	 
		46
	 

	 
		 
	 

	 
	 

	 

	 
		(ix) any adjustments to be made, consistent
		with Sections 3.10 and 3.12, to the applicable Pool Factors or Extended Pool
		Factors as a result of the issuance of such Refinancing Notes;
	 

	 
		(x) the class and subclass of Notes to which
		such Refinancing Notes belong;
	 

	 
		(xi) whether such Refinancing Notes are to
		have the benefit of the Policy as provided in clause (d) below; and
	 

	 
		(xii) any other terms, conditions, rights
		and preferences (or limitations on such rights and preferences) relating to
		such Refinancing Notes (which terms shall comply with Applicable Law and not be
		inconsistent with the requirements or restrictions of this Indenture, including
		Section 5.02(f)(ii)).
	 

	 
		If any of the terms of any issue of
		Refinancing Notes are established by action taken pursuant to one or more Board
		Resolutions, such Board Resolutions shall be delivered to the Trustee setting
		forth the terms of such Refinancing Notes.
	 

	 
		(d) In connection with any Refinancing of
		any subclass of Notes that has occurred with the prior written consent of the
		Policy Provider, each of the Policy and the Policy Provider Agreement shall be
		amended to cover such subclass of Notes and the Policy Provider shall deliver a
		new Policy or amended Policy, as applicable, to the Trustee; provided,
		however, that notwithstanding anything to the contrary herein,
		only subclasses of Notes that are covered by the Policy may be issued while the
		Policy remains outstanding. In connection with the amendment of the Policy to
		cover the Refinancing Notes, the Policy Provider agrees to deliver to the
		Issuer, on or prior to the date of Refinancing, legal opinions and corporate
		documents in respect of the amended Policy, substantially similar in form,
		scope and substance to the legal opinions and corporate documents delivered by
		the Policy Provider on the Initial Closing Date. The Policy Provider agrees
		that its rights of reimbursement in respect of the Policy Drawings under the
		amended Policy will be the same as its rights of reimbursement set forth in
		Section 3.09, and premium payable in respect of the amended Policy shall be on
		the same basis and terms as the Policy Premium and Policy Redemption Premium
		paid in respect of the Policy issued on the Initial Closing Date (unless
		otherwise agreed to by the Issuer and the Policy Provider).
	 

	 
		(e) In connection with any Refinancing of
		any subclass of Notes that has occurred with the prior written consent of the
		Initial Liquidity Facility Provider, the Initial Liquidity Facility if so
		required by the terms of such Refinancing shall be amended to cover such
		subclass of Notes and the Initial Liquidity Facility Provider shall deliver a
		new Eligible Credit Facility or amended Initial Liquidity Facility, as
		applicable, to the Trustee. In connection with the amendment of the Initial
		Liquidity Facility to cover the Refinancing Notes, the Initial Liquidity
		Facility Provider agrees to deliver to the Issuer, on or prior to the date of
		Refinancing, legal opinions and corporate documents in respect of the amended
		Initial Liquidity Facility, substantially similar in form, scope and substance
		to the legal opinions and corporate documents delivered by the Initial
		Liquidity Facility Provider on the Initial Closing Date. The Initial Liquidity
		Facility Provider agrees that its rights of reimbursement in respect of the
		drawings under the amended Initial Liquidity Facility will be the same as its
		rights of reimbursement set forth in Section 3.09, and fees payable in respect
		of the amended Initial Liquidity Facility shall be on the same basis and terms
		as the fees paid in respect of the Initial Liquidity Facility entered into on
		the Initial Closing Date.
	 

	 
		 
	 

	 
		47
	 

	 
		 
	 

	 
	 

	 

	 
		(f) In connection with any Refinancing of a
		subclass of Notes, the Issuer shall pay to all parties to the Related Documents
		all reasonable costs and expenses related thereto.
	 

	 
		(g) Notwithstanding anything to the contrary
		herein, if the Initial Notes are refinanced in whole with any subclass of Notes
		that are not covered by the Policy, the issuance of such new uninsured subclass
		of Notes shall be subject to the following conditions precedent:
	 

	 
		(i) the payment in full of all outstanding
		Policy Provider Obligations to the Policy Provider; and
	 

	 
		(ii) the return of the Policy to the Policy
		Provider for cancellation and termination.
	 

	 
		Section 2.11 Additional Notes. (a) Subject to the next succeeding two sentences and
		paragraphs (b) and (c) below and Section 5.02(f)(iv), the Issuer may issue
		Additional Notes pursuant to this Indenture, the proceeds of which in each case
		shall be used to acquire Additional Aircraft or make Conversion Payments, as
		the case may be, or to make payments into a Cash Collateral Account or to pay
		expenses related thereto (each, an “Additional Issuance”). Each issuance of Additional Notes shall be
		authorized pursuant to one or more Board Resolutions and shall be effected only
		following a Rating Agency Confirmation and upon obtaining the prior written
		consent of the Policy Provider (unless the Policy Non-Consent Event has
		occurred) and the Initial Liquidity Facility Provider (unless the Initial
		Liquidity Facility Non-Consent Event has occurred) and upon obtaining a legal
		opinion that such Additional Notes are debt for U.S. federal income tax
		purposes. Each Additional Note shall constitute a “Security” for all
		purposes under this Indenture and shall have such subclass and such further
		designations added or incorporated in such title as specified in the related
		Board Resolutions, in any indenture supplemental hereto providing for the
		issuance of such Notes or specified in the form of such Notes, as the case may
		be.
	 

	 
		(b) Each Additional Note shall contain such
		terms as may be established in or pursuant to the related Board Resolutions
		(subject to Section 2.01), in any indenture supplemental hereto providing for
		the issuance of such Notes or specified in the form of such Notes to the extent
		permitted below, and shall have the same ranking pursuant to Section 3.09 with
		respect to all other Obligations as the Notes of the class to which such
		Additional Notes belong (and, with respect to other subclasses of such class,
		as provided in Section 3.10). Prior to any issuance, any or all of the
		following, as applicable, with respect to the related Additional Issuance shall
		have been determined by the Issuer and set forth in such Board Resolutions, in
		any indenture supplemental hereto or specified in the form of such Securities,
		as the case may be:
	 

	 
		(i) the subclass of Additional Notes to be
		issued;
	 

	 
		(ii) with respect to each such subclass of
		Additional Notes:
	 

	 
		(A) the aggregate principal amount of any
		such Additional Notes which may be issued;
	 

	 
		(B) the proposed date of such Additional
		Issuance;
	 

	 
		(C) the Expected Final Payment Date and the
		Final Maturity Date of any such Additional Notes;
	 

	 
		 
	 

	 
		48
	 

	 
		 
	 

	 
	 

	 

	 
		(D) whether any such Additional Notes are to
		have the benefit of any Eligible Credit Facility and/or any increase in
		Required Amount for any Cash Collateral Account for the related class or
		classes of Notes and, if so, the amount and terms thereof;
	 

	 
		(E) the rate at which any such Additional
		Notes shall bear interest or the method by which such rate shall be
		determined;
	 

	 
		(F) if other than denominations of $200,000
		or higher integral multiples of $1,000 (with respect to Notes), the
		denomination or denominations in which any such Additional Notes shall be
		issuable;
	 

	 
		(G) any adjustments to be made, consistent
		with Sections 3.10 and 3.12, to the applicable Pool Factors or Extended Pool
		Factors as result of the issuance of any such Additional Notes;
	 

	 
		(H) any other terms, conditions, rights and
		preferences (or limitations on such rights and preferences) relating to any
		such Additional Notes (which terms shall comply with Applicable Law and not be
		inconsistent with the requirements or restrictions of this Indenture, including
		Section 5.02(f)(iv)); and
	 

	 
		(iii) to what extent the proceeds of such
		Additional Notes are to be used to acquire Additional Aircraft or to make
		Conversion Payments, or both, and
	 

	 
		(A) in the case of Additional Aircraft, a
		description of such Additional Aircraft and the Expected Useful Life of such
		Additional Aircraft; and;
	 

	 
		(B) in the case of Conversion Payments, a
		description of the Aircraft to be modified and the Expected Useful Life of such
		Aircraft.
	 

	 
		If any of the terms of any issue of any such
		Additional Notes are established by action taken pursuant to one or more Board
		Resolutions, such Board Resolutions shall be delivered to the Trustee setting
		forth the terms of such Additional Notes.
	 

	 
		(c) In the event Additional Notes are issued
		with the prior consent of the Policy Provider, each of the Policy and the
		Policy Provider Agreement shall be amended to cover such Additional Notes and
		the Policy Provider shall deliver a new Policy or amended Policy, as
		applicable, to the Trustee; provided,
		however, that, notwithstanding anything to the contrary herein,
		only subclasses of Notes that are covered by the Policy may be issued while the
		Policy remains outstanding. In connection with any such issuance of Additional
		Notes as a subclass of Notes and amendment of the Policy, the Policy Provider
		agrees to deliver to the Issuer, on or prior to the date of issuance, legal
		opinions and corporate documents in respect of the amended Policy,
		substantially similar in form, scope and substance to the legal opinions and
		corporate documents delivered by the Policy Provider on the Initial Closing
		Date. The Policy Provider agrees that its rights of reimbursement in respect of
		any Policy Drawings under the amended Policy will be the same as its rights of
		reimbursement set forth in Section 3.09, and premium payable in respect of the
		amended Policy shall be on the same basis and terms as the Policy Premium and
		the Policy Redemption Premium, if any, paid in respect of the Policy issued on
		the Initial Closing Date (unless otherwise agreed to by the Issuer and the
		Policy Provider).
	 

	 
		 
	 

	 
		49
	 

	 
		 
	 

	 
	 

	 

	 
		(d) In connection with any issuance of
		Additional Notes, the Issuer shall pay to all parties to the Related Documents
		all reasonable costs and expenses related thereto.
	 

	 
		Section 2.12 Special Transfer Provisions. (a) Certain
		Transfers and Exchanges of Beneficial Interests. In connection with all transfers and exchanges of a
		Beneficial Interest in a Global Note for a Beneficial Interest in a Definitive
		Note, the transferor of such Beneficial Interest must deliver to the Depositary
		either (i) (A) instructions given in accordance with the Applicable
		Procedures from a Participant directing the Depositary to credit or cause to be
		credited a Beneficial Interest corresponding to the specified Global Note in an
		amount equal to the Beneficial Interest to be transferred or exchanged,
		(B) a written order given in accordance with the Applicable Procedures
		containing information regarding the Participant account to be credited with
		such increase in connection with such transfer or exchange and
		(C) instructions given by the Depositary to effect the transfer referred
		to in (A) and (B) above or (ii) (A) instructions given in accordance
		with Applicable Procedures from a Participant directing the Depositary to cause
		to be issued a Definitive Note by means of the process set forth in Section
		2.07(a) (if permitted pursuant to Section 2.07) in an amount equal to the
		Beneficial Interest to be transferred or exchanged and (B) instructions
		given by the Holder of the Global Note to effect the transfer referred to in
		(A) above.
	 

	 
		(b) Transfer of Beneficial Interests in the Same Global
		Note. Beneficial Interests in a Global
		Note may be transferred to Persons who will hold such Beneficial Interest in a
		form corresponding to the same Global Note in accordance with the transfer
		restrictions set forth in the Restrictive Legend.
	 

	 
		(c) Transfer of Beneficial Interests to Another Global
		Note. Beneficial Interests
		corresponding to one of the Global Notes of any subclass may be transferred to
		Persons who will hold such Beneficial Interest in the form of a Beneficial
		Interest corresponding to the other Global Note of such subclass if the
		Depositary receives the following:
	 

	 
		(i) if prior to or on the 40th day after the
		later of the commencement of the offering of the Notes and the relevant Closing
		Date (the “Restricted
		Period”), and if the transferee
		will hold such interests in the form of a Beneficial Interest corresponding to
		a Rule 144A Global Note, then the transferor must deliver a certificate in
		the form of Exhibit E hereto, including the certifications in item (1)
		thereof. After the expiration of the Restricted Period the certification
		requirements of this clause (i) will no longer apply to such transfers;
		and
	 

	 
		(ii) if the transferee will hold such
		interests in the form of a Beneficial Interest corresponding to a
		Regulation S Global Note, then the transferor must deliver a certificate
		in the form of Exhibit E hereto, including the certifications in item (2)
		thereof.
	 

	 
		(d) Notation by the Trustee of Transfer of Beneficial
		Interests Among Global Notes. Upon
		satisfaction of the requirements for transfer of Beneficial Interests pursuant
		to paragraphs (a) and (c) above, the Depositary shall present to the
		Trustee the relevant Global Note from which the Beneficial Interests are being
		transferred to reduce the principal amount of such Global Note and the relevant
		Global Note to which the Beneficial Interests are being transferred to increase
		the principal amount of such Global Note, in each case, by the principal amount
		of such Beneficial Interests being transferred (and an appropriate notation
		shall be made thereon by the Trustee). The Trustee shall then promptly deliver
		appropriate instructions to the Depositary to reduce or reflect on its records
		a reduction of the Beneficial Interests in the Global Note from which the
		Beneficial Interests are being transferred by the principal amount of such
		Beneficial Interests, and the Trustee shall promptly deliver appropriate
		instructions to the Depositary 
	 

	 
		 
	 

	 
		50
	 

	 
		 
	 

	 
	 

	 

	 
		concurrently with such reduction, to
		increase or reflect on its records an increase of the Beneficial Interests in
		the Global Note to which Beneficial Interests are being transferred by the
		principal amount of such Beneficial Interests, and to credit or cause to be
		credited to the account of the Participant specified in the instructions
		delivered by the transferor of such Beneficial Interests pursuant to
		paragraph (a) of this Section 2.12 the Beneficial Interests being
		transferred.
	 

	 
		(e) Exchange of Beneficial Interests for Definitive
		Notes. Any Definitive Note delivered in
		exchange for a Beneficial Interest corresponding to a Rule 144A Global
		Note or Regulation S Global Note, as the case may be, pursuant to this
		Indenture and Section 2.07(a) shall, except as otherwise provided by
		paragraph (f) of this Section 2.12, bear the Restrictive Legend set forth
		in Section 2.02.
	 

	 
		(f) Restrictive Legend. Upon the transfer, exchange or replacement of
		Definitive Notes not bearing the Restrictive Legend, the Registrar shall
		deliver Definitive Notes that do not bear the Restrictive Legend. Upon the
		transfer, exchange or replacement of Definitive Notes bearing the Restrictive
		Legend, the Registrar shall deliver only Definitive Notes that bear the
		Restrictive Legend unless, in the case of Initial Notes, there is delivered to
		the Registrar an Opinion of Counsel reasonably satisfactory to the Issuer and
		the Trustee to the effect that neither such legend nor the related restrictions
		on transfer are required in order to maintain compliance with the provisions of
		the Securities Act.
	 

	 
		(g) General. By its
		acceptance of any Note bearing the Restrictive Legend, each Holder of such Note
		acknowledges the restrictions on transfer of such Note set forth in this
		Indenture and in the Restrictive Legend and agrees that it will transfer such
		Note only as provided in this Indenture. By its acceptance of a Depositary
		Interest or Beneficial Interest corresponding to any Global Note, each such
		owner acknowledges the restrictions on transfer of such Depositary Interest or
		Beneficial Interest set forth in this Indenture and agrees that it will
		transfer such Depositary Interest or Beneficial Interest only as set forth in
		this Indenture. The Registrar shall not register a transfer of any Definitive
		Note unless such transfer complies with the restrictions on transfer of such
		Definitive Note set forth in this Indenture. In connection with any transfer of
		Notes or Beneficial Interests corresponding thereto, each Holder or owner
		thereof agrees by its acceptance of such Notes or such Beneficial Interests to
		furnish the Trustee or the Depositary, as the case may be, the certifications
		and legal opinions described herein to confirm that such transfer is being made
		pursuant to an exemption from, or a transaction not subject to, the
		registration requirements of the Securities Act; provided that
		the Trustee or Depositary, as the case may be, shall not be required to
		determine (but may rely on a determination made by the Issuer with respect to)
		the sufficiency of any such legal opinions.
	 

	 
		The Trustee shall retain copies of all
		letters, notices and other written communications received pursuant to this
		Section 2.12 in accordance with its customary procedures. The Issuer shall have
		the right to inspect and make copies of all such letters, notices or other
		written communications at any reasonable time upon the giving of reasonable
		Written Notice to the Trustee.
	 

	 
		Section 2.13 [Reserved]
	 

	 
		Section 2.14 Statements to Holders. (a) The Issuer shall cause the Administrative Agent to
		deliver to the Trustee, the Cash Manager and the Board, and the Trustee shall
		(or shall instruct any Paying Agent to) distribute or make available to each
		Holder (including any beneficial holders with respect to the owners of
		Beneficial Interests by delivery to the Depositary), the Policy Provider, the
		Initial Liquidity Facility Provider and each Rating Agency (any such
		distribution, a “Trustee Report
		Distribution”), on the second
		Business Day before each 
	 

	 
		 
	 

	 
		51
	 

	 
		 
	 

	 
	 

	 

	 
		Payment Date and on any other date for
		distribution of any payments with respect to each subclass of Notes then
		outstanding, a monthly report, substantially in the form attached as
		Exhibit D hereto prepared by the Administrative Agent (after consultation
		with the Cash Manager) and setting forth the information described therein
		after giving effect to such payment (each, a “Monthly Report”). Each Monthly Report provided for each March,
		June, September and December shall be accompanied by a report prepared by the
		Administrative Agent including (i) a statement setting forth an analysis
		of the Collections Account activity for the preceding fiscal quarter ended
		December, March, June and September, respectively, (ii) a discussion and
		analysis of such activity and of any significant developments affecting the
		Issuer Group in such quarter and (iii) an updated description of the
		Aircraft then in the Portfolio and the related Lessees (each, a
		“Quarterly Report”). Each Monthly Report provided for each June
		shall be accompanied by a report including (A) a statement setting forth
		an analysis of the Collections Account activity for the preceding fiscal year
		ended December 31, (B) a discussion and analysis of such activity and
		of any significant developments affecting the Issuer Group in such year and
		(C) updated information with respect to the Aircraft then in the Portfolio
		(each, an “Annual
		Report”). Each Annual Report shall
		include audited consolidated financial statements of the Issuer Group (which
		may be in the form of consolidating statements included as part of the audited
		consolidated financial statements of Babcock & Brown Air Limited) and shall
		contain a comparison to the Issuer’s performance to the assumptions in the
		Offering Memorandum. Each Quarterly Report and Annual Report shall also contain
		a quarterly or annual, as the case may be, statement of the Aircraft on ground
		distinguishing between those on ground due to any repossessions and those
		subject to re-marketing for re-leasing. The Trustee shall deliver a copy of, or
		make available via a website, each Quarterly Report and Annual Report to any
		Holder or other Secured Party who requests a copy thereof.
	 

	 
		(b) The Issuer shall cause the
		Administrative Agent to deliver, after the end of each calendar year but not
		later than the latest date permitted by law, to the Trustee, the Policy
		Provider, the Initial Liquidity Facility Provider and the Board, and the
		Trustee shall (or shall instruct any Paying Agent to) furnish to each Person
		who at any time during such calendar year was a Holder of any subclass of Notes
		during such calendar year, a statement prepared by the Cash Manager (after
		consultation with the Administrative Agent) containing the sum of the amounts
		determined pursuant to Exhibit D hereto with respect to the subclass of
		Notes for such calendar year or, in the event such Person was a Holder of any
		subclass during only a portion of such calendar year, for the applicable
		portion of such calendar year, and such other items as are readily available to
		the Cash Manager (after consultation with the Administrative Agent) and which a
		Holder shall reasonably request as necessary for the purpose of such
		Holder’s preparation of its U.S. federal income or other tax returns. So
		long as any of the Notes are Global Notes held by the Depositary, such report
		and such other items will be prepared on the basis of such information supplied
		to the Cash Manager by the Depositary, and will be delivered by the Trustee,
		when received from the Cash Manager, to the Depositary and the applicable
		beneficial owners in the manner described above. In the event that any such
		information has been provided by any Paying Agent directly to such Person
		through other tax-related reports or otherwise, the Trustee in its capacity as
		Paying Agent shall not be obligated to comply with such request for
		information.
	 

	 
		(c) The Issuer shall cause a copy of each
		statement, report or document described in Section 2.14(a) and Section 6.11 to
		be concurrently delivered by the Cash Manager to each Rating Agency and the
		Administrative Agent.
	 

	 
		(d) At such time, if any, as the Notes of
		any subclass are issued in the form of Definitive Notes, the Trustee shall
		prepare and deliver the information described in Section 2.14(b) to each Holder
		of a Definitive Note of such subclass for the relevant period of ownership of
		such Definitive Note as appears on the records of the Registrar.
	 

	 
		 
	 

	 
		52
	 

	 
		 
	 

	 
	 

	 

	 
		(e) Following each Payment Date and any
		other date specified herein for distribution of any payments with respect to
		the Notes and prior to a Refinancing or Redemption, the Trustee shall cause
		notice thereof to be given (i) by either of (A) publication by the
		Irish Paying Agent in the Irish Times or, if such newspaper shall cease to be
		published or timely publication therein shall not be practicable, in such
		English language newspaper or newspapers as the Trustee shall approve having a
		general circulation in Europe or (B) by way of announcement by the Irish
		Listing Agent at the Companies Announcement office at the Irish Stock Exchange,
		(ii) by either of (A) the information contained in such notice
		appearing on the relevant page of the Reuters Screen or such other medium for
		the electronic display of data as may be approved by the Trustee and notified
		to Holders or (B) publication in the Financial Times (European Edition)
		and The Wall Street Journal (National Edition) or, if either newspaper shall
		cease to be published or timely publication therein shall not be practicable,
		in such English language newspaper or newspapers as the Trustee shall approve
		having a general circulation in Europe and the United States of America and
		(iii) so long as such Notes are registered with the Depositary, Euroclear
		and/or Clearstream, and so long as such Notes are listed on the Irish Stock
		Exchange and traded on the Irish Stock Exchange and the rules of such exchange
		so permit as advised by the Listing Agent, delivery of the relevant notice to
		the Depositary, Euroclear and/or Clearstream for communication by them to
		Holders of such subclass.
	 

	 
		Notwithstanding the above, any notice to the
		Holders of any class or subclass of Floating Rate Notes specifying an interest
		rate for such Notes, any Payment Date, any principal payment or any payment of
		premium, if any, shall be validly given by delivery of the relevant notice to
		the Depositary, Euroclear and/or Clearstream for communication by them to such
		Holders, without the need for publication in the Irish Times, and shall be
		promptly delivered to the Listing Agent and made available at the offices of
		the Irish Paying Agent and the Irish Stock Exchange (other than notices
		required to be delivered by the Cash Manager under the Related Documents). Any
		such notice shall be deemed to have been given on the first day on which any of
		such conditions shall have been met.
	 

	 
		(f) The Trustee shall be at liberty to
		sanction some other method of giving notice to the Holders of any subclass if,
		in its opinion, such other method is reasonable, having regard to the number
		and identity of the Holders of such subclass and/or to market practice then
		prevailing, is in the best interests of the Holders of such subclass and will
		comply with the rules of the Irish Stock Exchange for so long as such Notes are
		listed on the Irish Stock Exchange and traded on the Irish Stock Exchange or
		such other stock exchange (if any) on which the Notes of such subclass are then
		listed, and any such notice shall be deemed to have been given on such date as
		the Trustee may approve; provided that
		notice of such method is given to the Holders of such subclass in such manner
		as the Trustee shall require.
	 

	 
		Section 2.15 CUSIP, CCN and ISIN Numbers. The Issuer in issuing the Notes may use
		“CUSIP”, “CCN”, “ISIN” or other identification
		numbers (if then generally in use), and if so, the Trustee shall use CUSIP
		numbers, CCN numbers, ISIN numbers or other identification numbers, as the case
		may be, in notices of redemption or exchange as a convenience to Holders;
		provided that any such notice shall state that no representation
		is made as to the correctness of such numbers either as printed on the Notes or
		as contained in any notice of redemption or exchange and that reliance may be
		placed only on the other identification numbers printed on the Notes;
		provided further, that
		failure to use “CUSIP”, “CCN”, “ISIN” or other
		identification numbers in any notice of redemption or exchange shall not affect
		the validity or sufficiency of such notice.
	 

	 
		Section 2.16 Holder Representations and Covenants. Each Holder and beneficial owner of a Note, by the
		purchase of such Note or beneficial interest therein, covenants and agrees that
		it will treat 
	 

	 
		 
	 

	 
		53
	 

	 
		 
	 

	 
	 

	 

	 
		such Note as indebtedness for all purposes
		and will not take any action contrary to such characterization, including,
		without limitation, filing any tax returns or financial statements inconsistent
		therewith.
	 

	 
		ARTICLE III
  
	 

	 
		ACCOUNTS; PRIORITY OF PAYMENTS
	 

	 
		Section 3.01 Accounts. (a)
		Establishment of
		Accounts. The Cash Manager, acting on
		behalf of the Security Trustee, shall direct the Operating Bank in writing to
		establish and maintain on its books and records in the name of the Security
		Trustee (i) a collections account (the “Collections Account”), one or more lessee funded accounts as provided
		in the Cash Management Agreement (each, a “Lessee Funded Account”), a security deposit account (the
		“Security Deposit
		Account”), an expense account (the
		“Expense Account”), one note account for the Initial Notes (the
		“Note Account”), one aircraft purchase account for each Initial
		Aircraft not acquired on the Initial Closing Date (each, an
		“Aircraft Purchase
		Account”), a capital surplus
		account (the “Capital
		Account”), an account for the
		holders of the Class B Shares (the “Class B Shareholder Account”), a liquidity reserve account for the Notes (the
		“Liquidity Facility Reserve
		Account”), and a payment account
		for the Initial Liquidity Facility (the “Initial Liquidity Payment Account”), in each case on or before the Initial Closing
		Date and (ii) thereafter one or more rental accounts (each, a
		“Rental Account”) and any additional Lessee Funded Accounts, in
		each case provided for in the Cash Management Agreement, any additional Note
		Accounts, an additional Aircraft Purchase Account for each Additional Aircraft
		not acquired on the Closing Date for the related Additional Notes, an aircraft
		conversion account (the “Aircraft
		Conversion Account”), a cash
		reserve account for the Class G-1 Notes (the “Senior Cash Collateral Account”), a defeasance/redemption account (the
		“Defeasance/Redemption
		Account”), a refinancing account
		(the “Refinancing
		Account”), and any other Account
		(including, any Cash Collateral Account) the establishment of which is set
		forth in a Board Resolution delivered to the Trustee, the Security Trustee and
		the Cash Manager, in each case at such time as is set forth in this Section
		3.01 or in such Board Resolution. The Cash Manager shall establish an Irish
		collections account (the “Irish VAT
		Refund Account”) in the name of
		the Issuer at an Eligible Institution. Each Account shall be established and
		maintained as an Eligible Account in accordance with the terms of, and be
		subject to, the Security Trust Agreement (or, in the case of the Irish VAT
		Refund Account, a charge over bank account governed by Irish law with respect
		thereto (the “Irish Account
		Charge”)) so as to create, perfect
		and establish the priority of the security interest of the Security Trustee in
		such Account and all cash, Investments and other property therein under the
		Security Trust Agreement (or, in the case of the Irish VAT Refund Account, the
		Irish Account Charge) and otherwise to effectuate the Security Trust Agreement
		(or, in the case of the Irish VAT Refund Account, the Irish Account Charge).
		Each new Account established pursuant to Section 2.03(a)(i) of the Cash
		Management Agreement shall, when so established, be the Account of such name
		and purposes for all purposes of this Indenture.
	 

	 
		(b) Withdrawals and Transfers Generally. Any provision of this Indenture relating to any
		deposit, withdrawal or any transfer to or from, any Account shall be effected
		by the Cash Manager directing the Operating Bank by a Written Notice of the
		Cash Manager (such Written Notice to be provided to the Operating Bank by
		1:00 p.m. (New York City time) on the date of such deposit, withdrawal or
		transfer) given in accordance with the terms of this Indenture, the Cash
		Management Agreement and the Security Trust Agreement. Each such Written Notice
		to the Operating Bank shall be also communicated in computer file format or in
		such other form as the Cash Manager, the Operating Bank, the Trustee and the
		Security Trustee agree; provided that,
		in the case of communication in computer file format or any other form other
		than a written tangible form, a written tangible form thereof shall promptly
		thereafter be sent to the Operating Bank. No deposit, withdrawal or transfer to
		or from any Account shall be made except in accordance with the terms of this
		Indenture, the Security Trust Agreement and the Cash Management Agreement or by
		any Person other than the Operating Bank (only upon the Written 
	 

	 
		 
	 

	 
		54
	 

	 
		 
	 

	 
	 

	 

	 
		Notice of the Cash Manager) or, in the case
		of the Note Accounts, the Trustee (in which respect the Trustee agrees it is
		acting as the agent of the Security Trustee). Each of the parties to this
		Agreement acknowledges that the terms of this Indenture contemplate that the
		Cash Manager will receive certain information from other parties to this
		Indenture and the Related Documents in order for the Cash Manager to be able to
		perform all or any part of its obligations hereunder, that the Cash Manager
		will be able to perform its obligations hereunder only to the extent such
		information is provided to the Cash Manager by the relevant parties and that
		the Cash Manager may conclusively rely, absent manifest error, on such
		information as it receives without undertaking any independent verification of
		that information. The Cash Manager agrees that if it does not receive any such
		information it will promptly notify the party who was to provide such
		information of such failure.
	 

	 
		(c) Collections Account. All Collections (including amounts transferred from
		the Rental Accounts) shall be, when received, deposited in the Collections
		Account, and all cash, Investments and other property in the Collections
		Account shall be transferred from or retained as Reserved Cash in the
		Collections Account in accordance with the terms of this Indenture.
	 

	 
		(d) Lessee Funded Account. Any Segregated Funds received from time to time from
		any Lessee or pursuant to any Acquisition Agreement shall be transferred by the
		Operating Bank at the written direction of the Cash Manager from the
		Collections Account into the related Lessee Funded Account. The Cash Manager
		shall not make any withdrawal from, or transfer from or to, any Lessee Funded
		Account in respect of (i) any portion of the Segregated Funds therein
		consisting of a security deposit except, upon the termination of the related
		Lease, as provided in such Lease or (ii) any Segregated Funds that is
		contrary to the requirements of the respective Leases as to Segregated Funds
		and the requirements of the Security Trust Agreement (including the agreement
		of the Security Trustee that it designate on its account records that it holds
		its interest in each Lessee Funded Account for the benefit of the respective
		Lessee in respect of whom such Segregated Funds are held). Without limiting the
		foregoing, no cash, Investment and other property in a Lessee Funded Account
		may be used to make payments, other than as permitted under Section 3.08, in
		respect of the Notes at any time, including after the delivery of a Default
		Notice. Any Segregated Funds relating to an expired or terminated Lease that
		remain in a Lessee Funded Account after expiration or termination of such Lease
		and that are not due and owing to the relevant Lessee under such expired or
		terminated Lease shall, if so required under the terms of a subsequent Lease,
		if any, relating to such Aircraft, be credited in a Lessee Funded Account for
		the benefit of the next Lessee of the relevant Aircraft to the extent required
		under the terms of such subsequent Lease and, to the extent not so required,
		transferred to the Collections Account. When and as provided in the Cash
		Management Agreement the Cash Manager shall cause to be established such
		additional Lessee Funded Accounts.
	 

	 
		(e) Security Deposit Account. Any cash security deposits received from time to time
		from any Lessee or pursuant to any Acquisition Agreement (other than any cash
		security deposit required to be Segregated Funds, which shall be deposited in
		the related Lessee Funded Account) shall be transferred by the Operating Bank
		at the written direction of the Cash Manager from the Collections Account into
		the Security Deposit Account. Any security deposits relating to an expired
		Lease that remain in the Security Deposit Account after expiration or
		termination of such Lease and that are not due and owing to the relevant Lessee
		under such expired or terminated Lease (and not owing to the Issuer Group
		Member) and accordingly not required to be transferred to the Expense Account
		under Section 3.08(c)(ii) shall, if so required under the terms of a subsequent
		Lease, if any, relating to such Aircraft, be credited in the Security Deposit
		Account or a Lessee Funded Account for the benefit of the next Lessee of the
		relevant Aircraft and, to the extent not so required, transferred to the
		Collections Account. No cash, Investment or other 
	 

	 
		 
	 

	 
		55
	 

	 
		 
	 

	 
	 

	 

	 
		property in the Security Deposit Account may
		be used to make payments, other than as permitted under Section 3.08 hereof, in
		respect of the Notes at any time, except that on the earlier of the delivery of
		a Default Notice and the occurrence of an Acceleration Default, the Cash
		Manager shall direct the Trustee to, and the Trustee shall withdraw the
		collected credit balance of the Security Deposit Account and apply such amount
		in accordance with the payment priorities set forth in Section 3.09(b).
	 

	 
		(f) Expense Account.
		On each Payment Date, such amounts as are provided in Section 3.09 in respect
		of the Required Expense Amount and Permitted Accruals shall be deposited into
		the Expense Account from the Collections Account. Expenses shall be paid from
		the Expense Account as provided in Section 3.04.
	 

	 
		(g) Rental Accounts.
		All Rental Payments, Additional Rent and other amounts received pursuant to any
		Related Collateral Document shall be deposited into the applicable Rental
		Account (including any Non-Trustee Account). Except with respect to amounts, if
		any, that for local tax or other regulatory or legal reasons must be retained
		on deposit or as to the transfer of which the Cash Manager determines there is
		any substantial uncertainty, all amounts so deposited shall, within one
		Business Day of their receipt (or with respect to any Non-Trustee Account,
		within three Business Days of their receipt), be transferred by the Cash
		Manager to the Collections Account. If the Cash Manager determines that, for
		any tax or other regulatory or legal reason, any such Collections may not be
		deposited into an account in the name of the Security Trustee, then,
		notwithstanding the requirements of Section 3.01(a), the relevant Issuer Group
		Member may establish one or more Rental Accounts (each, a “Non-Trustee Account”) for such Collections in its own name (but
		subject to the direction and control of the Cash Manager on behalf of the
		Security Trustee) at any Eligible Institution; provided that
		the Issuer Group member that is the lessor under the relevant Lease is or
		becomes a party to a Security Document with respect to such Account.
	 

	 
		(h) Refinancing Account. Upon Written Notice of the Issuer to it of, or a Board
		Resolution provided to it authorizing, a Refinancing, the Cash Manager shall
		cause the Operating Bank to establish and maintain a Refinancing Account
		pursuant to Section 3.01(a) in the name of the Security Trustee for the benefit
		of the Holders of the Initial Notes or Additional Notes, if any, to be
		refinanced. All net cash proceeds of such Refinancing shall be deposited in the
		Refinancing Account and shall be held in such Account until such proceeds are
		applied to pay the Redemption Price of and all accrued and unpaid interest on
		such Initial Notes and Additional Notes, as applicable, until such Notes are
		cancelled by the Trustee and Refinancing Expenses (and any Policy Premium
		and/or Policy Redemption Premium due and payable to the Policy Provider) with
		respect thereto (except to the extent the Board have determined, as evidenced
		by a Board Resolution, to pay the same from funds available therefor as
		Permitted Accruals in the Expense Account) and as otherwise provided in Section
		5.02(f)(ii)(C).
	 

	 
		(i) Defeasance/Redemption Account. Upon Written Notice of the Issuer to it, or a Board
		Resolution provided to it authorizing that any subclass of Notes is to be
		redeemed pursuant to Section 3.11 (other than in a Refinancing) or defeased
		under Article XI, the Cash Manager shall cause the Operating Bank to
		establish and maintain a Defeasance/Redemption Account pursuant to Section
		3.01(a) in the name of the Security Trustee for the benefit of the Holders of
		such subclass. All amounts received for the purpose of any such redemption or
		defeasance shall be deposited in the Defeasance/Redemption Account.
	 

	 
		(j) Aircraft Purchase Accounts. As and to the extent provided in Section 3.03(a) (or,
		in the case of any Additional Aircraft, in the terms of any indenture
		supplemental hereto or a Board 
	 

	 
		 
	 

	 
		56
	 

	 
		 
	 

	 
	 

	 

	 
		Resolution with respect to the related
		Additional Notes), (a) an amount equal to the Debt Allocation Amount for each
		Aircraft not acquired on the Initial Closing Date or, in the case of an
		Additional Aircraft, on the Closing Date for the related Additional Notes, will
		be transferred from the Collections Account out of the proceeds of the Initial
		Notes or Additional Notes (as the case may be, including capital contributions
		in respect of the Class A Shares, after any other deposits or transfer out
		of such proceeds (including in respect of the Initial Expenses)) to the
		Aircraft Purchase Account for that Aircraft. The amount so deposited shall be
		held in such Account and invested in Permitted Account Investments until
		applied as provided in Section 3.04 or Section 3.05, as applicable. The Issuer
		shall give Written Notice to the Security Trustee and the Cash Manager of the
		satisfaction or waiver (specifying which) of all conditions for the payment of
		the Aircraft Purchase Price of any Additional Aircraft, and no amounts may be
		withdrawn or transferred from the Aircraft Purchase Account with respect to the
		Aircraft Purchase Price of such Additional Aircraft until receipt of such
		notice as to such Additional Aircraft.
	 

	 
		(k) Aircraft Conversion Account. As and to the extent provided in Section 3.04 and
		Section 5.02(i) (or in the terms of any indenture supplemental hereto or a
		Board Resolution with respect to the related Additional Notes), an amount equal
		to any expected Conversion Payment (or in the case of a Conversion Election, a
		portion thereof) will be transferred from the Collections Account (i) in the
		event of a Conversion Election for any Payment Date, in an amount equal to the
		sum of (A) the Available Minimum Principal Amount (or a portion thereof) to
		fund all or a portion of the Principal Conversion Amount and (B) the Available
		Holder Amount (or a portion thereof), together with Contribution Amounts, if
		any, to fund the Class A Shareholder Conversion Amount for such Payment Date,
		or (ii) out of the proceeds of the Additional Notes, in each case to the
		Aircraft Conversion Account. The Available Holder Amounts shall constitute
		property of the Issuer until applied towards the payment of the applicable
		Conversion Amount. The amount so deposited will be held in the Aircraft
		Conversion Account and invested in Permitted Account Investments until applied
		as provided in Section 3.04 or 3.09 and upon payment of all Conversion Payments
		required for such Aircraft Conversion, any remaining amounts in the Aircraft
		Conversion Account shall be promptly transferred to the Collections Account.
		The Issuer shall notify the Security Trustee and the Cash Manager of the
		satisfaction or waiver (specifying which) of all conditions for the payment of
		any Conversion Payment, and no amounts may be withdrawn or transferred from the
		Aircraft Conversion Account until receipt of such notice as to such Conversion
		Payment. For the avoidance of doubt, Class A Shareholders may fund the entire
		amount of a Conversion Payment or some or all of the Class A Shareholder
		Conversion Amount with respect to an Aircraft Conversion. In the event of such
		funding by the Class A Shareholders, upon payment of all Conversion Payments
		required for such Aircraft Conversion, any remaining amounts in the Aircraft
		Conversion Account for such Aircraft Conversion may be transferred to an
		Aircraft Conversion Account with respect to another Aircraft Conversion.
	 

	 
		(l) Note Account.
		Upon the issuance of Notes of any subclass for which a Note Account was not
		previously established, the Cash Manager shall cause the Operating Bank to
		establish and maintain a Note Account for such subclass in accordance with
		Section 3.01(a) in the name of the Security Trustee for the benefit of the
		Holders of the Notes of such subclass. Upon the transfer of any amounts to the
		Note Account for any subclass of Notes in accordance with Section 3.09 or
		Section 3.14, the Trustee on the same day shall pay all such amounts to the
		Holders of such subclass of Notes as of the related Record Date in accordance
		with the terms of this Indenture.
	 

	 
		(m) Senior Cash Collateral Account. A Senior Cash Collateral Account will not be
		established on the Closing Date. The Issuer will have the right, following the
		Closing Date, to establish a Senior Cash Collateral Account, with the consent
		of the Policy Provider. Following 
	 

	 
		 
	 

	 
		57
	 

	 
		 
	 

	 
	 

	 

	 
		the establishment of a Senior Cash
		Collateral Account, in the event that the Cash Manager determines that on the
		fourth Business Day prior to any Payment Date after making all withdrawals and
		transfers to be made with respect to such Payment Date (for the avoidance of
		doubt, prior to any drawings under the Initial Liquidity Facility, any
		withdrawals from the Liquidity Facility Reserve Account and any drawings under
		any Policy), there will be insufficient funds in the Collections Account (i) to
		transfer to the Expense Account an amount such that the amount on deposit
		therein is equal to the Required Expense Amount for such Payment Date, (ii) to
		pay the Interest Amount for the Class G-1 Notes, (iii) to pay Senior Hedge
		Payments to each applicable Hedge Provider, in each case as provided in Section
		3.09 and (iv) if such Payment Date is the Final Maturity Date for the Class G-1
		Notes, to pay the Outstanding Principal Balance of the Class G-1 Notes on the
		Final Maturity Date therefor, the Cash Manager shall direct the Operating Bank
		in writing on such Payment Date to withdraw from the Senior Cash Collateral
		Account the lesser of an amount equal to the shortfall in making the payments
		set forth in clauses (i), (ii), (iii) and (iv) above and the amount on deposit
		therein. The amount so withdrawn shall be applied in the following manner:
		first, to the Expense Account an amount such that the amount
		on deposit therein is at least equal to the Required Expense Amount for such
		Payment Date and second, in no order of priority inter se, but pro rata, (A) to
		the Note Accounts for the Class G-1 Notes, the Interest Amount on the Class G-1
		Notes, in no order of priority inter se, but pro rata according to the amount
		of accrued and unpaid interest on the Class G-1 Notes; and (B) pro rata, to any
		Hedge Provider, an amount equal to any Senior Hedge Payment due from any Issuer
		Group Member pursuant to any Hedge Agreement, and third, if such Payment Date
		is the Final Maturity Date for the Class G-1 Notes, to the Note Accounts for
		the Class G-1 Notes, pro rata according to the amount of outstanding principal
		of such subclass. If the Cash Manager determines that the amount that will be
		on deposit in the Senior Cash Collateral Account on any Payment Date, after
		making any withdrawals therefrom to be made on such Payment Date, will exceed
		the aggregate Outstanding Principal Balance of the Notes, the Cash Manager
		shall so notify the Trustee in writing and direct the Operating Bank in writing
		to withdraw the amount on deposit in the Senior Cash Collateral Account on such
		Payment Date and apply such amount: first, to the
		Note Accounts for the Class G-1 Notes, in the order of priority by subclass set
		forth in Section 3.10, an amount equal to the Outstanding Principal Balance of
		each such subclass and second, to the
		Collections Account, for application on such Payment Date in accordance with
		Section 3.09 (any such application, a “Class G Cash Collateral
		Event”). Unless applied in connection with a Class G Cash Collateral Event
		or on the Final Maturity Date for the Class G-1 Notes, amounts on deposit in
		the Senior Cash Collateral Account shall not be available for any shortfall in
		the payment of principal of the Class G-1 Notes. Amounts in the Senior Cash
		Collateral Account are not subject to the payment priorities set forth in
		Section 3.09.
	 

	 
		(n) Liquidity Facility Reserve Account. Following the funding of the Liquidity Facility
		Reserve Account with a Downgrade Drawing, a Final Drawing or a Non-Extension
		Drawing, if the Cash Manager determines that on any Payment Date after making
		all withdrawals and transfers to be made with respect to such Payment Date,
		there will be insufficient funds in the Collections Account (i) to
		transfer to the Expense Account an amount such that the amount on deposit
		therein is equal to the Required Expense Amount for such Payment Date,
		(ii) to pay Senior Hedge Payments to each applicable Hedge Provider, in
		each case as provided in Section 3.09 and (iii) to pay the Interest Amount
		for the Class G-1 Notes, in each case as provided in Section 3.09, the Cash
		Manager shall so notify the Trustee in writing under Section 3.07 and shall
		direct the Operating Bank in writing on such Payment Date to withdraw from the
		Liquidity Facility Reserve Account the lesser of (A) the amount equal to
		the shortfall in making the payments set forth in clauses (i), (ii) and
		(iii) above and (B) the amount on deposit therein. The Trustee shall, as
		set out in the Written Notice from the Cash Manager, apply the amount so
		withdrawn, first, to the Expense Account an amount such that the amount
		on deposit therein is at 
	 

	 
		 
	 

	 
		58
	 

	 
		 
	 

	 
	 

	 

	 
		least equal to the Required Expense Amount
		for such Payment Date and second, in no
		order of priority inter
		se, but pro rata,
		(x) to the Note Accounts for the Class G-1 Notes, in respect of the
		Interest Amount on such subclass of Notes; and (y) pro rata, to any
		Hedge Provider, in respect of any Senior Hedge Payment due from any Issuer
		Group Member pursuant to any Hedge Agreement.
	 

	 
		(o) Capital Account.
		Upon the transfer of any amounts to the Capital Account in accordance with
		Section 3.09 hereof, such amounts shall be available for distribution to the
		holders of the Class A Shares to the extent that the Board has declared a
		dividend or other distribution in respect of such amount.
	 

	 
		(p) Class B Shareholder Account. Upon the transfer of any amounts to the Class B
		Shareholder Account for the holders of the Class B Shares in accordance
		with Section 3.09, the Trustee on the same day shall pay such amounts to the
		holders of the Class B Shares to the extent that the Board has declared a
		dividend in respect of such amount.
	 

	 
		(q) Additional Cash Collateral Accounts. Upon receipt by the Cash Manager and the Trustee of a
		Board Resolution providing for the establishment of any additional Cash
		Collateral Account as an Eligible Credit Facility for one or more subclasses of
		Notes or in respect of any other Obligation, the Cash Manager shall, by Written
		Notice, cause the Operating Bank to establish (within three Business Days of
		the giving of such Written Notice) and maintain such Cash Collateral Account
		pursuant to Section 3.01(a) in the name of the Security Trustee for the benefit
		of the Holders of the Notes of each such subclass and/or the Secured Parties
		holding such other Obligation. All amounts provided in connection with any such
		Board Resolution for deposit in such Account and all amounts to be deposited in
		such Account under Section 3.09 as an Eligible Credit Facility shall be held in
		such Cash Collateral Account for application, and all replenishment shall be
		made, in accordance with the terms of the Board Resolution relating to such
		Eligible Credit Facility, which Board Resolution shall include the basis of any
		replenishment of the Cash Collateral Account.
	 

	 
		(r) Irish VAT Refund Account. All payments of refunds with respect to Irish
		value-added Tax and any similar amounts related to Irish Tax payments payable
		to the Issuer or any Issuer Subsidiary shall be, when received, deposited in
		the Irish VAT Refund Account. Funds held in the Irish VAT Refund Account shall,
		at the direction of the Administrative Agent, be converted into U.S. dollars
		with a recognized foreign exchange dealer or foreign commercial bank (which may
		be the bank where the Irish VAT Refund Account is located or the Cash Manager
		or an affiliate). The conversion of currency into U.S. dollars shall be
		pursuant to the conversion procedures set forth in Section 12.07. Upon
		conversion and receipt of U.S. dollars, the Cash Manager shall cause such
		amounts to be transferred from the Irish VAT Refund Account to the Collections
		Account as soon as administratively practicable. The cost and expense of any
		such conversion shall be added to and reflected in the rate obtained for
		conversion and in no event shall the Cash Manager or any of its affiliates be
		liable in respect of the exchange rate obtained for any such conversion or any
		related cost or expense.
	 

	 
		All amounts held in the Irish VAT Refund
		Account from time to time shall be invested in Permitted Account Investments
		(at the direction of the Administrative Agent) pending conversion to U.S.
		dollars and transfer to the Collections Account.
	 

	 
		Section 3.02 Investments of Cash. (a) For so long as any Notes remain Outstanding, the
		Cash Manager, on behalf of the Security Trustee, shall, or shall direct the
		Operating Bank in writing to, invest and reinvest, at the written direction of
		the Cash Manager acting on the Issuer’s instructions, the funds on 
	 

	 
		 
	 

	 
		59
	 

	 
		 
	 

	 
	 

	 

	 
		deposit in the Accounts in Permitted Account
		Investments; provided, however, that
		the Initial Liquidity Facility Provider shall be entitled to direct the Cash
		Manager to invest the amounts on deposit (if any) in the Liquidity Facility
		Reserve Account in Permitted Account Investments; provided
		further, however, that
		following the giving of a Default Notice or during the continuance of an
		Acceleration Default, the Cash Manager shall, or shall direct the Operating
		Bank in writing to, invest such funds on deposit or such amounts at the written
		direction of the Security Trustee in Permitted Account Investments described in
		clause (d) of the definition thereof (but in the case of a Lessee Funded
		Account only to the extent any such investment credited to such Lessee Funded
		Account or the Security Deposit Account is permitted by the Leases pursuant to
		which such funds were received) from the time of receipt thereof until such
		time as such amounts are required to be distributed pursuant to the terms of
		this Indenture. The Cash Manager shall make such investments and reinvestments
		and the Issuer (or the Cash Manager acting on the Issuer’s instructions),
		the Initial Liquidity Facility Provider and/or the Security Trustee as
		specified in the immediately preceding sentence shall provide such direction,
		all in accordance with the terms of the following provisions:
	 

	 
		(i) the Permitted Account Investments shall
		have maturities and other terms such that sufficient funds shall be available
		to make required payments pursuant to this Indenture (A) before the next
		Payment Date after which such investment is made, in the case of investments of
		funds on deposit in the Collections Account and the Expense Account, or
		(B) in accordance with a Written Notice provided by the Cash Manager
		(after consultation with the Servicer), the requirements of the relevant Leases
		or Aircraft Agreements, in the case of investments of funds on deposit in the
		Lessee Funded Accounts; provided that an
		investment maturing within one year of the date of investment shall
		nevertheless be a Permitted Account Investment if it has been acquired with
		funds which are not reasonably anticipated, at the discretion of the
		Administrative Agent, to be required to be paid to any other Person or
		otherwise transferred from the applicable Account prior to such
		maturity;
	 

	 
		(ii) if any funds to be invested are not
		received in the Accounts by 1:00 p.m., New York City time, on any Business
		Day, such funds shall, if possible, be invested in overnight Permitted Account
		Investments described in clause (d) of the definition thereof;
		provided that none of the Cash Manager, the Trustee, the
		Security Trustee or the Initial Liquidity Facility Provider shall be liable for
		any losses incurred in respect of the failure to invest funds not thereby
		received; and
	 

	 
		(iii) if required by the terms of a Lease,
		any investments of Segregated Funds on deposit in a Lessee Funded Account or
		funds on deposit in the Security Deposit Account shall be made on behalf of the
		relevant Lessee in such investments as may be required thereunder.
	 

	 
		(b) The Trustee or its Affiliates is
		permitted to receive additional compensation (which compensation should be
		decided on an arm’s length basis) that could be deemed to be in their
		respective economic self interest for (i) serving as an investment
		advisor, administrator, shareholder servicing agent, custodian or sub-custodian
		with respect to certain Permitted Account Investments, (ii) using
		Affiliates to effect transactions in certain Permitted Account Investments and
		(iii) effecting transactions in certain Permitted Account Investments.
		
	 

	 
		(c) Except as expressly provided hereunder,
		neither the Cash Manager nor the Operating Bank shall have any obligation to
		invest and reinvest any cash held in the Accounts in the absence of timely and
		specific written investment direction from the Issuer, the Initial Liquidity
		Facility Provider or the Security Trustee, as the case may be. In no event
		shall the Cash Manager 
	 

	 
		 
	 

	 
		60
	 

	 
		 
	 

	 
	 

	 

	 
		or the Operating Bank be liable for the
		selection of investments or for investment losses incurred thereon. Neither the
		Cash Manager nor the Operating Bank shall have any liability in respect of
		losses incurred as a result of the liquidation of any investment prior to its
		stated maturity or the failure of the Issuer, the Initial Liquidity Facility
		Provider or the Security Trustee, as the case may be, to provide timely written
		investment direction. Neither the Cash Manager nor the Trustee guarantees the
		performance of any Permitted Account Investment.
	 

	 
		Section 3.03 Closing Date Deposits, Withdrawals and
		Transfers. The Cash Manager shall, on
		each Closing Date at the written direction of the Issuer, upon the Operating
		Bank’s receipt thereof, make, or direct the Operating Bank to make, the
		following deposits and transfers to and from the Accounts in each case as
		specified in a prior Written Notice of the Cash Manager to the Trustee, the
		Security Trustee and the Operating Bank:
	 

	 
		(a) on the Initial Closing Date,
	 

	 
		(i) (A) deposit in the Collections
		Account the proceeds of the issuance of the Initial Notes, (B) deposit in
		the relevant Aircraft Purchase Account, the Allocable Rent Amount for the
		related Aircraft, (C) deposit in the Collections Account the Initial Equity
		Amount, (D) deposit in the Security Deposit Account the amount of the
		initial security deposits that are not Segregated Funds received pursuant to
		the terms of the Asset Purchase Agreement and (E) deposit in any Lessee
		Funded Account an amount equal to any Segregated Funds for each Lease related
		to any Aircraft being acquired from a Seller on the Initial Closing
		Date;
	 

	 
		(ii) after making the deposits required by
		clause (i) above and in the following order (A) transfer from the
		Collections Account to the Expense Account, such amount as is necessary so that
		the amount on deposit in the Expense Account is an amount equal to the Required
		Expense Amount for the initial Interest Accrual Period and the Initial
		Expenses, as specified in a Written Notice of the Cash Manager to the Trustee,
		(B) pay from the Collections Account to each respective Seller the Aircraft
		Purchase Price for each Aircraft, if any, being acquired from that Seller on
		the Initial Closing Date (in which case the Written Notice of the Issuer shall,
		as a condition to such payment, state that the conditions to the acquisition of
		each such Aircraft specified in the relevant Acquisition Agreement have been
		fulfilled), (C) transfer from the Collections Account the Debt Allocation
		Amount for each Aircraft not acquired on the Initial Closing Date to the
		related Aircraft Purchase Account, (D) deposit in the Collections Account
		the amounts received by the Issuer from the Sellers, pursuant to the Asset
		Purchase Agreement (except to the extent any such amounts constitute
		(i) initial security deposits that are not Segregated Funds, which amounts
		shall have been deposited into the Security Deposit Account as provided in
		subclause (i)(C) above, and (ii) Segregated Funds for each Lease,
		which amounts shall have been deposited into the applicable Lessee Funded
		Account as provided in subclause (i)(D) above), and (F) retain in the
		Collections Account the balance, if any, remaining after making the foregoing
		transfers;
	 

	 
		(iii) transfer to the Collections Account
		any Aircraft Prior Rent Payment as to the Aircraft in respect of which an
		Aircraft Purchase Account has been established; and
	 

	 
		(iv) withdraw from the Expense Account such
		amount as is needed to discharge any portion of the Initial Expenses then due
		and payable on the Initial Closing Date and pay such amount to the appropriate
		payees thereof as specified in the Written Notice of the Cash Manager.
	 

	 
		 
	 

	 
		61
	 

	 
		 
	 

	 
	 

	 

	 
		(b) on any Closing Dates in respect of the
		issuance of any Additional Notes,
	 

	 
		(i) (A) deposit in the Collections
		Account the proceeds of the issuance of such Additional Notes, (B) deposit
		in the Security Deposit Account the amount of the initial security deposits
		that are not Segregated Funds received pursuant to the terms of the relevant
		Acquisition Agreements and (C) deposit in any Lessee Funded Account any
		Segregated Funds received pursuant to any Acquisition Agreement; 
	 

	 
		(ii) after making the deposits required by
		clause (i) above and in the following order (A) transfer from the
		Collections Account to the Expense Account, such amount as is necessary so that
		the amount on deposit in the Expense Account is an amount equal to the Required
		Expense Amount for the next succeeding Payment Date, (B) transfer from the
		Collections Account to any Cash Collateral Account then to be established an
		amount equal to the Required Amount for such Account, (C) pay from the
		Collections Account to each respective Seller the Aircraft Purchase Price for
		each Additional Aircraft being acquired from that Seller on the relevant
		Closing Date (in which case the Written Notice of the Cash Manager shall, as a
		condition to such payment, state that the conditions to the acquisition of each
		such Aircraft specified in the relevant Acquisition Agreement have been
		fulfilled), (D) transfer from the Collections Account the Debt Allocation
		Amount for each Additional Aircraft, if any, not being acquired on that Closing
		Date to the Aircraft Purchase Account for that Aircraft, (E) in the case
		of a Closing Date for any Additional Notes issued to finance any Aircraft
		Conversion, transfer from the Collections Account to the Aircraft Conversion
		Account such amount (to the extent not funded by a capital contribution made by
		the holders of the Class A Shares) as the relevant Conversion Agreement
		requires to be paid on or before that Closing Date and (F) retain in the
		Collections Account the balance, if any, remaining after making the foregoing
		transfers; and
	 

	 
		(iii) transfer from each applicable Aircraft
		Purchase Account to the Collections Account any Aircraft Prior Rent Payment as
		to the Aircraft in respect of which that Account has been established;
		and
	 

	 
		(c) on any Closing Date involving the
		issuance of Refinancing Notes, deposit the proceeds of such Refinancing into
		the Refinancing Account for application in accordance with Section
		3.08(a).
	 

	 
		Section 3.04 Interim Deposits, Transfers and
		Withdrawals. On any Business Day, the
		Cash Manager upon the Operating Bank’s receipt thereof, may make, or
		direct the Operating Bank to make, without duplication, the following deposits,
		transfers and withdrawals to and from the Accounts, in each case as specified
		in a prior Written Notice of the Cash Manager to the Trustee, the Security
		Trustee and the Operating Bank:
	 

	 
		(a) withdraw from a Lessee Funded Account or
		the Security Deposit Account to the extent that funds on deposit therein or
		available thereunder may be withdrawn or drawn pursuant to the terms of the
		related Lease for payment thereof, to discharge any Expense then due and
		payable and pay such amount to the appropriate payees thereof;
	 

	 
		(b) withdraw from the Expense Account (to
		the extent of funds on deposit therein) such amount as is needed to discharge
		(i) any Primary Expenses and (ii) any Modification Payments or
		Refinancing Expenses in respect of which a Permitted Accrual was previously
		effected by a deposit in the Expense Account (whether or not any such deposit
		has been previously used to pay 
	 

	 
		 
	 

	 
		62
	 

	 
		 
	 

	 
	 

	 

	 
		any other Primary Expense but excluding any
		portion of such deposit previously used to pay any Modification Payments or
		Refinancing Expenses) then due and payable and pay such amount to the
		appropriate payees thereof;
	 

	 
		(c) transfer from the Collections Account
		from time to time (but in no event on less than one Business Day’s prior
		Written Notice to the Trustee (unless such one Business Day’s notice
		requirement is waived by the Trustee)) other amounts to the Expense Account, in
		each case only to the extent that such funds are to be applied to Primary
		Expenses that become due and payable during such Interest Accrual Period and
		for the payment of which there are insufficient funds in the Expense Account;
		provided that no such transfer from the Collections Account in
		respect of Primary Expenses shall be made prior to the next succeeding Payment
		Date if, in the reasonable judgment of the Cash Manager, such transfer would
		have a material adverse effect on the ability of the Issuer to make payments of
		accrued and unpaid interest on the Class G-1 Notes then Outstanding on the next
		Payment Date therefor in accordance with Section 3.09;
	 

	 
		(d) withdraw Segregated Funds from a Lessee
		Funded Account or security deposit from the Security Deposit Account or draw
		under or cause to be drawn under any applicable Related Collateral Document, in
		any case to the extent required by or necessary in connection with a Lease or
		any documents related thereto and the Related Collateral Documents, for deposit
		in the Collections Account to satisfy any default in Rental Payments under any
		related Lease;
	 

	 
		(e) transfer any Segregated Funds from the
		Collections Account to a Lessee Funded Account in accordance with the terms of
		any Lease;
	 

	 
		(f) transfer any security deposits that are
		not Segregated Funds from the Collections Account to the Security Deposit
		Account;
	 

	 
		(g) transfer to the Collections Account, or
		any other applicable Account, any Contribution Amounts;
	 

	 
		(h) deposit into the Aircraft Conversion
		Account any capital contributions in respect of an Aircraft Conversion received
		from the holders of the Class A Shares;
	 

	 
		(i) subject to Section 5.02(i), withdraw
		from the Aircraft Conversion Account an amount equal to all or a portion of the
		Conversion Payment for any Aircraft Conversion, to the extent the relevant
		Conversion Agreement requires payment on that or the next Business Day;
		and
	 

	 
		(j) upon written direction to the Cash
		Manager from any Seller that such Seller or a Person on its behalf has in fact
		received any Basic Rent under the Lease of any Aircraft not delivered to an
		Issuer Group Member on a Closing Date, transfer from the Aircraft Purchase
		Account for that Aircraft to the Collections Account the resulting Aircraft
		Subsequent Rent Payment.
	 

	 
		Section 3.05 Withdrawals and Transfers
		Relating to the Acquisition of Aircraft. 
	 

	 
		(a) Acquisition. On
		the Acquisition Date (other than a Closing Date) with respect to an Aircraft,
		the Cash Manager may make, or direct the Operating Bank to make, the following
		deposits, withdrawals and transfers to and from the Accounts, in each case as
		specified in a Written Notice of the Cash Manager to the Trustee, the Security
		Trustee and the Operating Bank (which Written Notice of the Cash Manager shall,
		as a condition to any such deposit, withdrawal and transfer be accompanied by a
		Written Notice of the Administrative Agent stating that the 
	 

	 
		 
	 

	 
		63
	 

	 
		 
	 

	 
	 

	 

	 
		conditions to payment for an Aircraft
		specified in the applicable Acquisition Agreement have been fulfilled):
	 

	 
		(i) deposit into the relevant Lessee Funded
		Account, the amount of any Segregated Funds received in respect of such
		Aircraft under the applicable Acquisition Agreement; 
	 

	 
		(ii) deposit into the relevant Aircraft
		Purchase Account the Equity Allocation Amount (less any portion of the
		Allocable Rent Amount previously deposited in respect of such Aircraft) for
		such Aircraft under the applicable Acquisition Agreement; 
	 

	 
		(iii) to the extent the amount in the
		Aircraft Purchase Account (after making the transfer, if any, contemplated by
		Section 3.04(j)) for such Aircraft is less than the Aircraft Purchase Price for
		such Aircraft, transfer from the Collections Account to such Aircraft Purchase
		Account the amount of such shortfall, if any; 
	 

	 
		(iv) pay out of the Aircraft Purchase
		Account for such Aircraft to the applicable Seller or sellers the Aircraft
		Purchase Price for such Aircraft (after making the transfer, if any,
		contemplated by Sections 3.04(j) and 3.05(a)(ii)); and 
	 

	 
		(v) after making the transfers provided in
		clause (i) through (iv) above, transfer the balance remaining in the related
		Aircraft Purchase Account to the Collections Account (for application in
		accordance with Section 3.09).
	 

	 
		(b) Aircraft Payments. The payments of the Aircraft Purchase Price for any
		Aircraft (other than Additional Aircraft) to be made pursuant to Section
		3.05(a)(iv) to any Seller shall, subject to the delivery as to such Aircraft of
		the Written Notice referred to in Section 3.05(a), be made as so provided
		notwithstanding the giving of any Default Notice or any other exercise of
		remedies hereunder.
	 

	 
		(c) Delivery Expiry Date. Upon Written Notice of the Administrative Agent to the
		Cash Manager, the Trustee, the Security Trustee and the Operating Bank that the
		Issuer is no longer required, pursuant to the terms of the applicable
		Acquisition Agreement, to purchase any Initial Aircraft or Additional Aircraft
		(whether by reason of the passing of the Delivery Expiry Date, the exercise by
		the Issuer of any termination right under that Acquisition Agreement or
		otherwise), the Cash Manager shall direct the Operating Bank to (i) transfer
		from the Aircraft Purchase Account for each Aircraft so affected to the
		Collections Account (for application in accordance with Section 3.09) the
		balance in the Aircraft Purchase Account for such Aircraft and (ii) deposit to
		the Collections Account (for application in accordance with Section 3.09) any
		Non-Delivery Make-Whole Amount received from such Seller.
	 

	 
		Section 3.06 Interim Deposits and Withdrawals for Aircraft
		Sales. The Cash Manager shall direct
		the Operating Bank to deposit any and all proceeds received in respect of any
		Aircraft Sale by or on behalf of any Issuer Group Member in the Collections
		Account (other than in connection with any sale of all or substantially all of
		the assets of the Issuer Group, in which case the Cash Manager shall direct the
		Operating Bank to deposit any and all proceeds thereof into the
		Defeasance/Redemption Account in connection with the redemption of each
		subclass of the Notes) in each case as specified in a Written Notice by the
		Cash Manager to the Trustee, the Security Trustee and the Operating Bank. Any
		funds then on deposit in a Lessee Funded Account or the Security Deposit
		Account related to the Aircraft subject to such sale or other disposition shall
		be applied on a basis consistent with the terms of the Lease related to 
	 

	 
		 
	 

	 
		64
	 

	 
		 
	 

	 
	 

	 

	 
		such Aircraft, if any, or as otherwise
		provided by the relevant agreements related to such sale or other
		disposition.
	 

	 
		Section 3.07 Calculation Date Calculations. (a) Calculation
		of Required Amounts. The Cash Manager
		shall determine, as soon as practicable after each Calculation Date, but in no
		event later than four Business Days preceding the immediately succeeding
		Payment Date, based on information known to the Cash Manager or Relevant
		Information (and, without limitation, in the case of clauses (i) (as it relates
		to the Required Amount with respect to the Senior Cash Collateral Account (if
		established)), (ii), (iii) (as it relates to clauses (ii)(B),
		(iii)(B) and (xi) of Section 3.09(a) and clauses (iv)(B) and (ix) of
		Section 3.09(b)), (iv), (vi) and (vii) below, a Written Notice from the
		Administrative Agent received by the Cash Manager no later than 10:00 a.m.
		New York City time on the day after such Calculation Date setting forth the
		amounts required for the calculations in such clauses) provided to the Cash
		Manager, the Collections received during the period commencing on the close of
		business on the preceding Calculation Date and ending on the close of business
		on such Calculation Date and calculate the following amounts:
	 

	 
		(i) the balance of funds on deposit in the
		Accounts on the Calculation Date, the Required Amount with respect to the
		Senior Cash Collateral Account (if established) and the amount available under
		all Eligible Credit Facilities on such Calculation Date;
	 

	 
		(ii) the Required Expense Amount for such
		Payment Date and any amount to be deposited in respect of Permitted Accruals as
		of such Calculation Date;
	 

	 
		(iii) the Available Collections on such
		Calculation Date (separately listing any Senior Hedge Payments, Subordinated
		Hedge Payments and Hedge Breakage Costs); provided that,
		in making such determination, the Cash Manager may assume that any amount from
		a Hedge Provider to be paid on such Payment Date pursuant to any Hedge
		Agreement will be paid on such Payment Date;
	 

	 
		(iv) the net Segregated Funds, if any, and
		any amounts on deposit in the Security Deposit Account available to be
		transferred into the Collections Account on such Calculation Date as and to the
		extent expressly provided herein;
	 

	 
		(v) any amount to be transferred from any
		Aircraft Purchase Account and the Aircraft Conversion Account to the
		Collections Account as provided, respectively, in Section 3.05(c) or in Section
		3.04(g);
	 

	 
		(vi) the Required Amount for any Cash
		Collateral Account and any amounts to be transferred in respect of Eligible
		Credit Facilities under Section 3.09(a)(iv) or Section 3.09(b)(ii); and
	 

	 
		(vii) the Contribution Amounts, if any, made
		prior to such Calculation Date.
	 

	 
		(b) Calculation of Interest and Other
		Amounts. The Cash Manager shall, not
		later than four Business Days prior to each Payment Date, make the following
		calculations or determinations with respect to Interest Amounts, Policy
		Premiums and fees of the Initial Liquidity Provider due on such Payment
		Date:
	 

	 
		(i) based on Relevant Information provided
		to it by the Reference Agent, the applicable interest rate on each subclass of
		Floating Rate Notes based on LIBOR determined on the Reference Date for the
		relevant Interest Accrual Period;
	 

	 
		 
	 

	 
		65
	 

	 
		 
	 

	 
	 

	 

	 
		(ii) the Interest Amount in respect of each
		class or subclass of Floating Rate Notes on such Payment Date;
	 

	 
		(iii) the Interest Amount in respect of each
		class or subclass of Fixed Rate Notes on such Payment Date;
	 

	 
		(iv) the DSCR Aggregate Interest Amount for
		such Payment Date;
	 

	 
		(v) the Policy Premium due and owing to the
		Policy Provider on such Payment Date;
	 

	 
		(vi) any interest and fees due and owing to
		the Initial Liquidity Facility Provider on such Payment Date; and
	 

	 
		(vii) any interest due and owing to the
		Policy Provider on, or interest amounts that constitute, Policy Provider
		Obligations.
	 

	 
		(c) Calculation of Principal Payment Amounts. The Cash Manager shall, not later than four Business
		Days prior to each Payment Date, calculate or determine the following with
		respect to principal payments due on such Payment Date and certain other
		amounts in respect of such Payment Date:
	 

	 
		(i) the Outstanding Principal Balance of
		each class and subclass of the Notes on such Payment Date immediately prior to
		any principal payment on such date;
	 

	 
		(ii) the Assumed Base Value for each
		Aircraft and the Assumed Portfolio Value on such Payment Date;
	 

	 
		(iii) the DSCR Available Cash on such
		Payment Date (with the amount of Re-leasing Expenses with respect to such
		Payment Date to be certified by the Cash Manager based on information provided
		to it by the Servicer in accordance with the Servicing Agreement on or prior to
		the fifth Business Day prior to each Payment Date);
	 

	 
		(iv) the Minimum Principal Payment Amount on
		such Payment Date with respect to each subclass of the Notes;
	 

	 
		(v) the Aggregate Minimum Principal Payment
		Amount on such Payment Date with respect to each subclass of the Notes;
	 

	 
		(vi) the DSCR Aggregate Minimum Principal
		Payment Amount with respect to such Payment Date;
	 

	 
		(vii) the DSCR on such Payment Date;
	 

	 
		(viii) the Outstanding Principal Balance, if
		any, to be paid with respect to each subclass of the Notes; and 
	 

	 
		(ix) the Principal Conversion Amount, the
		Class A Shareholder Conversion Deposits and the Class A Shareholder
		Amounts.
	 

	 
		(d) Calculation
		of Refinancing Amounts. The Cash
		Manager shall, not later than four Business Days prior to each Payment Date on
		which a Refinancing or Redemption of any class or 
	 

	 
		 
	 

	 
		66
	 

	 
		 
	 

	 
	 

	 

	 
		subclass of Notes is scheduled to occur,
		perform the calculations necessary to determine the Redemption Price of and the
		accrued and unpaid interest on such Notes.
	 

	 
		(e) Application of the Available Collections. The Cash Manager shall, not later than 1:00 p.m.
		New York City time on the third Business Day prior to each Payment Date,
		determine the amounts to be applied on such Payment Date to make each of the
		payments contemplated by Section 3.09(a) or 3.09(b), as applicable, setting
		forth separately, the amount to be applied on such Payment Date pursuant to
		each clause of Section 3.09(a) or 3.09(b), as applicable, including, where
		applicable, the allocation of principal of the Notes in accordance with Section
		3.10. 
	 

	 
		(f) Aircraft Acquisitions. No later than one Business Day prior to the
		anticipated Acquisition Date for each Aircraft, the Administrative Agent shall
		determine, and give the Trustee and Security Trustee a Written Notice setting
		out the amounts to be paid under Section 3.03 or Section 3.05 in respect of the
		applicable Aircraft (as applicable), the Acquisition Date and certifying that
		the conditions to the purchase of such Aircraft set forth in each relevant
		Acquisition Agreement have been fulfilled.
	 

	 
		(g) Calculations in respect of Facility
		Drawings. As soon as practicable after
		each Calculation Date, but in no event later than 12:00 p.m. New York City
		time on the date which is the fourth Business Day prior to each Payment Date,
		the Cash Manager shall determine (after giving effect to any withdrawal from
		the Senior Cash Collateral Account (if established) and to the application of
		Available Collections in accordance with the applicable payment priorities set
		forth in Section 3.09(a)), whether a shortfall exists as of such Calculation
		Date in the Available Collections (i) to pay on the next succeeding
		Payment Date the Required Expense Amount due on such Payment Date (any such
		shortfall in respect of the Required Expense Amount on any Payment Date, a
		“Required Expenses
		Shortfall”), (ii) to pay the
		Senior Hedge Payments due on such Payment Date (any such shortfall of Senior
		Hedge Payments, the “Senior Hedge
		Payments Shortfall”), and
		(iii) to pay the accrued and unpaid interest due on the Class G-1 Notes on
		such Payment Date (any such shortfall in respect of the Interest Amount due
		with respect to the Class G-1 Notes, a “Liquidity Facility Interest Class G
		Shortfall”).
	 

	 
		(h) Calculations in respect of Policy
		Drawings. The Cash Manager shall make
		the following calculations or determinations in respect of the Policy and the
		Class G-1 Notes:
	 

	 
		(i) as soon as practicable after each
		Calculation Date, but in no event later than 12:00 p.m. New York City time
		on the date which is the third Business Day prior to each Payment Date,
		determine (after giving effect to all payments and transfers to be made with
		respect to such Payment Date and the application of Available Collections in
		accordance with the applicable payment priorities set forth in Section 3.09,
		the application of Facility Drawings to be made pursuant to the Initial
		Liquidity Facility (or drawings under any Replacement Liquidity Facility), any
		withdrawals from the Liquidity Facility Reserve Account or the Senior Cash
		Collateral Account (if established) and any withdrawals from the Cash
		Collateral Account, if any, pursuant to Section 3.01(q)), whether a shortfall
		will exist as of the next succeeding Payment Date in the Available Collections
		and such other amounts to make payment on such Payment Date of Accrued
		Class G Interest due on the Class G-1 Notes on such Payment Date (any such
		shortfall in respect of the Class G-1 Notes on any Payment Date, an
		“Interest Class G
		Shortfall” therefor);
	 

	 
		(ii) as soon as practicable after the
		Calculation Date next succeeding the date of a sale or other disposition of an
		Aircraft (not including any Aircraft acquired by way of 
	 

	 
		 
	 

	 
		67
	 

	 
		 
	 

	 
	 

	 

	 
		contribution) or of an Issuer Subsidiary
		which owns an Aircraft (not including any Aircraft acquired by way of
		contribution), in each case by or on behalf of, or at the direction of the
		Controlling Party after an Acceleration of the Notes, but in no event later
		than 12:00 p.m. New York City time on the date which is the third Business
		Day prior to the next succeeding Payment Date, determine the shortfall, if any,
		between the Class G-1 Note Target Price (determined as of the date of such sale
		or other disposition) of the disposed Aircraft (or of the Aircraft owned by the
		disposed Issuer Subsidiary) and the Net Sale Proceeds from the sale or other
		disposition of the relevant Aircraft (or of the Issuer Subsidiary owning such
		Aircraft) (the “Deficiency
		Class G Shortfall” with
		respect to the next succeeding Payment Date);
	 

	 
		(iii) as soon as practicable after each
		Calculation Date on or following the date that is twenty-four months after the
		date (as determined by the Trustee and notified to the Policy Provider in
		writing) of the issuance of a Default Notice or an Acceleration of the Notes,
		but in no event later than 12:00 p.m. New York City time on the date which
		is the third Business Day prior to the immediately succeeding Payment Date,
		determine (after giving effect to all payments and transfers to be made with
		respect to such Payment Date and the application of Available Collections in
		accordance with the applicable payment priorities set forth in Section 3.09 and
		the application of any Facility Drawings (or drawings under any Replacement
		Liquidity Facility) and the application of any withdrawals from the Liquidity
		Facility Reserve Account or the Senior Cash Collateral Account (if established)
		and any withdrawals from the Cash Collateral Account, if any, in accordance
		with the terms hereof) the shortfall (determined as of such Calculation Date),
		if any, of Available Collections and such other amounts for the payment on the
		next succeeding Payment Date of the Insured Minimum Principal Payment Amount,
		if any, of the Class G-1 Notes for such Payment Date (with respect to any such
		Payment Date, a “Minimum
		Class G Principal Shortfall”);
	 

	 
		(iv) as soon as practicable after the
		Calculation Date immediately preceding the Final Maturity Date for the Class
		G-1 Notes, but in no event later than 12:00 p.m. New York City time on the
		date which is the third Business Day prior to the applicable Final Maturity
		Date, determine (after giving effect to all payments and transfers to be made
		hereunder and the application of Available Collections in accordance with the
		applicable payment priorities set forth in Section 3.09 on or prior to the
		Final Maturity Date and the application of any Facility Drawings (or drawings
		under any Replacement Liquidity Facility), any withdrawals from the Liquidity
		Facility Reserve Account or the Senior Cash Collateral Account (if established)
		and any withdrawals from the Cash Collateral Account, if any, as set forth in
		Section 3.01(q), in each case, on such Final Maturity Date) (determined as of
		such Calculation Date) whether any shortfall will exist in the amount necessary
		for the payment in full of the Outstanding Principal Balance of the Class G-1
		Notes on the Final Maturity Date therefor (less any Policy Drawings previously
		paid in respect of principal of the Class G-1 Notes) together with accrued and
		unpaid interest thereon (at the Applicable Rate of Interest for the Class G-1
		Notes) (calculated as of such Final Maturity Date but excluding any accrued and
		unpaid premium in respect of the Class G-1 Notes on such Final Maturity Date)
		(any such shortfall of principal and interest in respect of the Class G-1 Notes
		on the Final Maturity Date, the “Outstanding Amount” therefor); and
	 

	 
		(v) as promptly as practicable after the
		date of any Avoided Payment, calculate the amount of such Avoided Payment.
		
	 

	 
		 
	 

	 
		68
	 

	 
		 
	 

	 
	 

	 

	 
		(i) Notification of Calculations in respect of Available
		Minimum Principal Amounts. So long as a
		Default Notice has not been issued, an Acceleration Default has not occurred or
		a DSCR Failure has not occurred, as soon as practicable after each Calculation
		Date, but in no event later than 12:00 p.m. (New York City time) on the
		date which is the third Business Day prior to the related Payment Date, the
		Cash Manager shall provide notice to the Issuer of its calculations of (i) the
		amount (the “Available Minimum
		Principal Amount”) available
		(after giving effect to all Prior Ranking Amounts) to pay the Minimum Principal
		Payment Amount for the Class G Notes (for application in accordance with
		Section 3.09(a)) for such Payment Date and (ii) the Principal Conversion Amount
		with respect to any proposed Aircraft Conversion and whether the Available
		Minimum Principal Amount (after giving effect to any prior transfer to the
		Aircraft Conversion Account of any Available Minimum Principal Amounts in
		respect of a particular Aircraft Conversion) is sufficient to fund such
		Principal Conversion Amount in full. As soon as practicable after receipt of
		such calculations, but in no event later than 12:00 p.m. (New York City
		time) on the date which is the second Business Day prior to the related Payment
		Date, the Issuer shall notify the Cash Manager in writing as to whether the
		Available Minimum Principal Amount should be applied in accordance with Section
		3.09(a) towards the Minimum Principal Payment Amount payable for such Payment
		Date or should be transferred to the Aircraft Conversion Account (such election
		to transfer the Available Minimum Principal Amount (or such lesser amount as
		may be necessary to fund the Principal Conversion Amount for such Aircraft
		Conversion) to the Aircraft Conversion Account, a “Principal Conversion Election”). For the avoidance of doubt, the sum of the
		Available Minimum Principal Amounts transferred to the Aircraft Conversion
		Account in respect of any proposed Aircraft Conversion may not exceed the
		Periodic Principal Conversion Limit for such Aircraft Conversion. In the
		absence of a Principal Conversion Election, the Available Minimum Principal
		Amount shall be applied in accordance with the payment priorities set forth in
		Section 3.09(a) hereof. A Principal Conversion Election with respect to
		any Aircraft Conversion in relation to any Payment Date will be only permitted
		if a Holder Conversion Election with respect to such Aircraft Conversion or a
		Class A Shareholder contribution to the capital of the Issuer (or a combination
		thereof) in relation to such Payment Date is also made.
	 

	 
		(j) Notification of Calculations in respect of Available
		Holder Amounts. So long as a Default
		Notice has not been issued, an Acceleration Default has not occurred or a DSCR
		Failure has not occurred, as soon as practicable after each Calculation Date,
		but in no event later than 12:00 p.m. (New York City time) on the date
		which is the third Business Day prior to the related Payment Date, the Cash
		Manager shall provide notice to the Issuer of its calculations of (i) the
		amount (the “Available Holder
		Amount”) available (after giving
		effect to all Prior Ranking Amounts) to pay the holders of the Class A Shares in
		accordance with Section 3.09(a) for such Payment Date and (ii) the Class A
		Shareholder Conversion Amount with respect to any proposed Aircraft Conversion
		and whether such Available Holder Amount (after giving effect to any prior
		transfers to the Aircraft Conversion Account of Available Holder Amounts in
		respect of a particular Aircraft Conversion and any Contribution Amounts) is
		sufficient to fund such Class A Shareholder Conversion Amount in full. As soon
		as practicable after receipt of such calculations, but in no event later than
		12:00 p.m. (New York City time) on the date which is the second Business
		Day prior to the related Payment Date, the Issuer (without the consent of the
		Class A Shareholders) shall notify the Cash Manager in writing as to whether
		the Available Holder Amount should be transferred to the Capital Account or
		should, in lieu of such transfer, be transferred in whole or in part to the
		Aircraft Conversion Account to fund the Class A Shareholder Conversion Amount
		(such election to transfer the Available Holder Amount (or such lesser amount
		as may be necessary to fund the Conversion Amount for such Aircraft Conversion)
		to the Aircraft Conversion Account, a “Holder Conversion Election” and, together with a Principal Conversion
		Election, a “Conversion
		Election”). The Available Holder
		Amounts shall 
	 

	 
		 
	 

	 
		69
	 

	 
		 
	 

	 
	 

	 

	 
		constitute property of the Issuer until
		applied towards the payment of the applicable Conversion Amount. For the
		avoidance of doubt, the sum of the Available Holder Amounts transferred to the
		Aircraft Conversion Account in respect of any proposed Aircraft Conversion may
		not exceed the Class A Shareholder Conversion Amount for such Aircraft
		Conversion. In the absence of a Holder Conversion Election, the Available
		Holder Amount shall be deposited in the Capital Account and applied in
		accordance with the payment priorities set forth in Section 3.09(a)
		hereof.
	 

	 
		Section 3.08 Payment Date First Step Withdrawals and
		Transfers. Two Business Days prior to
		each Payment Date, the Cash Manager shall direct the Operating Bank to make, on
		such Payment Date, the following withdrawals from and transfers to the Accounts
		in each case as specified in a Written Notice of the Cash Manager to the
		Trustee, the Security Trustee and the Operating Bank:
	 

	 
		(a) transfer the net proceeds of any
		Refinancing of any Notes from the Refinancing Account to any Cash Collateral
		Account established for the related Refinancing Notes (up to the Required
		Amount therefor in accordance with Section 3.03) and the balance to the
		applicable Note Accounts, in each case in accordance with Sections 2.10(b)
		and 5.02(f);
	 

	 
		(b) transfer any amounts on deposit in the
		Defeasance/Redemption Account in respect of any Redemption that is not a
		Refinancing to the applicable Note Accounts;
	 

	 
		(c) (i) transfer from each Lessee
		Funded Account to the Security Deposit Account or the Collections Account any
		available Segregated Funds that are no longer required to be maintained
		(including by way of the termination of the applicable Leases) in a segregated
		account under the applicable Leases, and to the Expense Account amounts from
		the applicable Lessee Funded Account that are being repaid to the applicable
		Lessees, and (ii) transfer from the Security Deposit Account to the
		Expense Account amounts constituting security deposits relating to expired or
		terminated Leases that are due and owing to the relevant Lessees under such
		expired or terminated Leases;
	 

	 
		(d) transfer from the Security Deposit
		Account to the Collections Account any security deposits relating to an expired
		or terminated Lease that are not required under the terms of a subsequent Lease
		to be retained in the Security Deposit Account as provided in Section
		3.01(e);
	 

	 
		(e) transfer from the Collections Account to
		the relevant Lessee Funded Accounts the amount of any Segregated Funds then on
		deposit in the Collections Account;
	 

	 
		(f) transfer from the Collections Account to
		the Security Deposit Account the amount of any security deposits that are not
		Segregated Funds then on deposit in the Collections Account;
	 

	 
		(g) transfer from any Account (other than
		the Collections Account, the Aircraft Conversion Account, the Initial Liquidity
		Payment Account, the Liquidity Facility Reserve Account, the Senior Cash
		Collateral Account (if established) and the Aircraft Purchase Accounts) to the
		Collections Account the amount of Investment Earnings (net of losses and
		investment expenses), if any, on investments of funds on deposit therein during
		the preceding Interest Accrual Period, except that (i) earnings on any portion
		of the funds on deposit in any Account required under the terms of the related
		Lease to be repaid to the related Lessee shall be retained therein and (ii) in
		the case of the Aircraft Purchase Account, any earnings on any portion of the
		purchase price funds in respect of an Aircraft on deposit in the Aircraft
		Purchase Account shall be retained therein for application in accordance with
		Section 3.05 or Section 3.08; 
	 

	 
		 
	 

	 
		70
	 

	 
		 
	 

	 
	 

	 

	 
		(h) transfer from each Aircraft Purchase
		Account to the Collections Account the amount of Aircraft Subsequent Rent
		Payment, if any, for the related Aircraft;
	 

	 
		(i) transfer to the Expense Account, as
		directed by the Cash Manager, such amounts as are required to pay any fees,
		expenses or other amounts (including Taxes) required to maintain the Issuer in
		good standing under the laws of Bermuda and maintain its tax-exempt
		status;
	 

	 
		(j) after the giving of a Default Notice,
		during the continuation of an Acceleration Default or following the Interest
		Accrual Period in which an Aircraft Sale occurs with respect to the last
		remaining Aircraft, transfer any amounts remaining in the relevant Lessee
		Funded Account (other than amounts required to be maintained in such account
		pursuant to the terms of the related Lease or Aircraft Agreement) into the
		Collections Account; 
	 

	 
		(k) transfer from the Collections Account to
		the Aircraft Conversion Account an amount equal to the Available Minimum
		Principal Amount (or a portion thereof) to fund the Principal Conversion Amount
		(or portion thereof) pursuant to Section 3.07(i) and the Available Holder
		Amount (or a portion thereof) pursuant to Section 3.07(i) to fund the Class A
		Shareholder Conversion Amount (or a portion thereof) in connection with a
		Conversion Election; 
	 

	 
		(l) after payment in full of all Conversion
		Payments to be made for any Aircraft Conversion, transfer any balance of the
		amount originally deposited in the Aircraft Conversion Account in respect of
		such Aircraft Conversion from the Aircraft Conversion Account to the
		Collections Account for application in accordance with Section 3.09; and
	 

	 
		(m) after the giving of a Default Notice,
		the occurrence of an Acceleration Default, or the occurrence of a DSCR Failure,
		transfer any amounts on deposit in the Aircraft Conversion Account (other than
		amounts budgeted for an Aircraft Conversion in progress) into the Collections
		Account for application in accordance with Section 3.09.
	 

	 
		Section 3.09 Payment Date Second Step Withdrawals. (a) On each Payment Date, after the withdrawals and
		transfers provided for in Section 3.08 have been made, the Cash Manager shall
		direct the Operating Bank to distribute from the Collections Account (or retain
		in the Collections Account, if so indicated in the relevant clause below) in
		each case as specified in a Written Notice of the Cash Manager to the Trustee,
		the Security Trustee and the Operating Bank at least two Business Days prior to
		such Payment Date, the amounts set forth below in the order of priority set
		forth below but, in each case, only to the extent that all Prior Ranking
		Amounts then required to be paid (or retained in the Collections Account, as
		applicable) have been paid (or retained in the Collections Account, as
		applicable); provided that the amount to be paid shall be reduced in inverse
		order of priority by the amount of any payment by a Hedge Provider under a
		Hedge Agreement that was assumed pursuant to Section 3.07(a)(iii) to be, but
		has not in fact been, paid on such Payment Date. All payments of Available
		Collections to be made to or for the account of Holders of any subclass of
		Notes pursuant to this Section 3.09 shall be made through a direct transfer of
		funds to the applicable Note Account with respect to such subclass of
		Notes.
	 

	 
		(i) to the Expense Account, an amount such
		that the amount on deposit therein is at least equal to the Required Expense
		Amount for such Payment Date (including Expenses due and payable to the
		Servicer, the Administrative Agent or the Cash Manager, Expenses due and
		payable to Lessees, Credit Facility Expenses due and payable to the Initial
		Liquidity Facility Provider and Policy Expenses due and payable to the Policy
		Provider);
	 

	 
		 
	 

	 
		71
	 

	 
		 
	 

	 
	 

	 

	 
		(ii) in no order of priority inter se, but
		pro rata as to the amounts described below in clauses (A),
		(B) and (C) as follows: (A) to the Note Accounts for each subclass of
		Notes, the Interest Amount on such subclass of Notes (other than any portion
		thereof constituting any interest described in clause (b) of the
		definition of Interest Amount to the extent the Policy Provider has made timely
		payment in respect of any unpaid Interest Class G Shortfall due on the
		related Payment Date on such subclass of Notes) in no order of priority
		inter se but pro
		rata according to the amount of accrued
		and unpaid interest on each such subclass of Notes less the sum of
		(1) the amount of any Interest Class G Drawing, if any, relating to
		such subclass of Notes paid on or before such Payment Date by the Policy
		Provider under the Policy prior to such Payment Date to the extent not
		theretofore reimbursed to the Policy Provider as of such Payment Date and
		(2) the amount of any Facility Drawing, if any, in respect of the Interest
		Amount due on such subclass of Notes paid on or before such Payment Date by the
		Initial Liquidity Facility Provider under the Initial Liquidity Facility to the
		extent not theretofore reimbursed to the Initial Liquidity Facility Provider as
		of such Payment Date; (B) pro
		rata, to any Hedge Provider, an amount
		equal to any Senior Hedge Payment due (and not paid by or on behalf of the
		Issuer) from any Issuer Group Member pursuant to any Hedge Agreement; and
		(C) to the Policy Provider, an amount equal to accrued interest (at the
		Applicable Rate of Interest with respect to the related Notes) on the amount of
		a Policy Drawing paid by the Policy Provider under the Policy in respect of
		such subclass of Notes prior to such Payment Date to the extent not theretofore
		reimbursed to the Policy Provider as of such Payment Date;
	 

	 
		(iii) to the Policy Provider, (A) the
		amounts so paid by the Policy Provider in respect of any such Interest
		Class G Drawings referred to in clause (ii) above and (B) an
		amount equal to any Senior Hedge Payment made by the Policy Provider on behalf
		of an Issuer Group Member, in each case to the extent not theretofore
		reimbursed to the Policy Provider as of such Payment Date;
	 

	 
		(iv) first, in no
		order of priority inter
		se, but pro rata as to
		the amounts described in clauses (A), (B) and (C) as follows: (A) to
		the Liquidity Facility Reserve Account (following a Downgrade Drawing, a Final
		Drawing or a Non-Extension Drawing), such amount so that the amount on deposit
		in such Account is equal to the applicable Required Amount therefor,
		(B) to any Persons providing any Eligible Credit Facilities, any Credit
		Facility Advance Obligations payable to such Persons under the terms of their
		respective Eligible Credit Facilities (after giving effect to any payments made
		by the Policy Provider to the Persons providing such Eligible Credit Facilities
		as provided in the definition of “Controlling Party”) and, to the
		extent any such Eligible Credit Facility consists of a Cash Collateral Account
		(other than the Liquidity Facility Reserve Account and the Senior Cash
		Collateral Account (if established)), such amount so that the amount on deposit
		in each such Account is equal to the applicable Required Amount therefor and
		(C) if the Policy Provider has paid any such Credit Facility Obligations,
		as so provided, to the Policy Provider, the amount of such payments to the
		extent not theretofore reimbursed to the Policy Provider (plus interest accrued
		thereon at the applicable rate under such Eligible Credit Facility that would
		have otherwise been payable to the Persons providing such Eligible Credit
		Facility from the date of such payment) and second to the
		Senior Cash Collateral Account (if established), such amount so that the amount
		on deposit in such Account is equal to the applicable Required Amount
		therefor;
	 

	 
		 
	 

	 
		72
	 

	 
		 
	 

	 
	 

	 

	 
		(v) to the Policy Provider, any Policy
		Premium due and owing to the Policy Provider and any accrued and unpaid
		interest on any Policy Premium and all other Policy Provider Obligations owed
		to the Policy Provider (excluding any Policy Redemption Premium or amounts
		payable pursuant to clause (vii), (ix) and (x) below);
	 

	 
		(vi) to the Note Accounts for each subclass
		of the Notes, in the order of priority by subclass set forth in Section 3.10,
		an amount equal to the Aggregate Minimum Principal Payment Amount of the Notes
		for such Payment Date less the amounts of Policy Drawings in respect of the
		principal (such amount in the aggregate not to exceed such Aggregate Minimum
		Principal Payment Amount for such date) of the Notes, if any, paid by the
		Policy Provider under the Policy for periods prior to such Payment Date to the
		extent not theretofore reimbursed to the Policy Provider;
	 

	 
		(vii) to the Policy Provider, an amount, not
		to exceed the Aggregate Minimum Principal Payment Amount of the Notes for such
		Payment Date, equal to the amount of any such Policy Drawings referred to in
		clause (vi) above in respect of such principal so paid by the Policy
		Provider under the Policy prior to such Payment Date to the extent not
		theretofore reimbursed to the Policy Provider as of such Payment Date;
	 

	 
		(viii) to the Expense Account, such amount
		as an accrual (the “Permitted
		Accruals”) in respect of any
		Modification Payments or Refinancing Expenses as the Cash Manager (after
		consultation with the Administrative Agent) shall determine;
	 

	 
		(ix) to pay Special Indemnity Payments to
		the applicable party pro
		rata;
	 

	 
		(x) to the Policy Provider, an amount equal
		to accrued interest (at the Excess Policy Rate) on any amounts paid by the
		Policy Provider under the Policy prior to such Payment Date and to the extent
		not theretofore reimbursed by the Policy Provider as of such Payment
		Date;
	 

	 
		(xi) payments to Hedge Providers,
		pro rata inter
		se, that are Subordinated Hedge
		Payments;
	 

	 
		(xii) to the Class B Shareholder
		Account, in an amount equal to the Class B Share Payment, if any;
		and
	 

	 
		(xiii) to the
		Capital Account, which amounts therein, to the extent determined by the Board,
		shall be available to be paid as a dividend or distribution to the holders of
		the Class A Shares.
	 

	 
		(b) Anything to the contrary contained in
		Section 3.09(a) notwithstanding, following the earliest of (i) delivery to
		the Issuer and the Cash Manager of a Default Notice or during the continuance
		of an Acceleration Default, (ii) the Expected Final Payment Date and
		(iii) during the continuance of a DSCR Failure, the allocation of payments
		described in Section 3.09(a) shall not apply and the Cash Manager shall direct
		the Operating Bank in writing to cause all amounts on deposit in the
		Collections Account to be applied on each Payment Date in the following order
		of priority:
	 

	 
		(i) to the Expense Account, an amount such
		that the amount on deposit therein is equal to the Required Expense Amount for
		such Payment Date (including Expenses due and payable to the Servicer or the
		Administrative Agent, Expenses due and payable to the Lessees, Credit Facility
		Expenses due and 
	 

	 
		 
	 

	 
		73
	 

	 
		 
	 

	 
	 

	 

	 
		payable to the Initial Liquidity Facility
		Provider and Policy Expenses due and payable to the Policy Provider);
	 

	 
		(ii) in no order of priority inter se, but
		pro rata as to the amounts described in clauses (A) and (B)
		as follows: (A) to any Persons providing any Eligible Credit Facilities,
		pro rata inter
		se, any Credit Facility Advance
		Obligations payable to such Persons under the terms of their respective
		Eligible Credit Facilities (after giving effect to any payments made by the
		Policy Provider to the Persons providing such Eligible Credit Facilities as
		provided in the definition of “Controlling Party”) and (B) if
		the Policy Provider has paid any such Credit Facility Advance Obligations, as
		so provided, to the Policy Provider, the amount of such payments to the extent
		not theretofore reimbursed to the Policy Provider (plus interest accrued
		thereon at the applicable rate under such Eligible Credit Facility that would
		have otherwise been payable to the Persons providing such Eligible Credit
		Facility from the date of such payment);
	 

	 
		(iii) to the Policy Provider, any Policy
		Premium due and payable to the Policy Provider and any accrued and unpaid
		interest on any Policy Premium;
	 

	 
		(iv) in no order of priority inter se, but
		pro rata as to the amounts described below in clauses (A),
		(B) and (C) as follows: (A) first, to the
		Note Accounts for each subclass of Notes, the Interest Amount on such subclass
		of the Notes (other than any portion thereof constituting any interest
		described in clause (b) of the definition of Interest Amount to the extent
		the Policy Provider has made timely payment in respect of any unpaid Interest
		Class G Shortfall due on the related Payment Date on such subclass of
		Notes) in no order of priority inter
		se but pro rata
		according to the amount of accrued and unpaid interest on such subclass of the
		Notes less the sum of (1) the amount of any Interest
		Class G Drawing, if any, relating to such subclass of the Notes paid on or
		before such Payment Date by the Policy Provider under the Policy to the extent
		not theretofore reimbursed to the Policy Provider as of such Payment Date and
		(2) the amount of any Facility Drawing, if any, in respect of the Interest
		Amount due on such subclass of the Notes paid on or before such Payment Date by
		the Initial Liquidity Facility Provider under the Initial Liquidity Facility to
		the extent not theretofore reimbursed to the Initial Liquidity Facility
		Provider as of such Payment Date and second, to the
		Policy Provider, the amounts so paid by the Policy Provider in respect of such
		Interest Class G Drawings to the extent not theretofore reimbursed to the
		Policy Provider as of such Payment Date, (B) pro rata, to any
		Hedge Provider, such amounts required to make any Senior Hedge Payments due
		(and not paid by or on behalf of the Issuer) to such Hedge Provider pursuant to
		any Hedge Agreement, (C) to the Policy Provider, an amount equal to the
		accrued interest (at the Applicable Rate of Interest with respect to the
		relevant subclass of Notes) on any amounts paid by the Policy Provider under
		the Policy in respect of a subclass of Notes prior to such Payment Date to the
		extent not theretofore reimbursed to the Policy Provider and (D) to the
		Policy Provider, an amount equal to any Senior Hedge Payments made by the
		Policy Provider made by the Policy Provider on behalf of an Issuer Group Member
		to the extent not theretofore reimbursed to the Policy Provider as of such
		Payment Date;
	 

	 
		(v) first, to the
		Note Accounts for each subclass of Notes, an amount equal to the Aggregate
		Minimum Principal Payment Amount of the Notes for such Payment Date
		less the amounts of Policy Drawings (such amount in the
		aggregate not to exceed such Aggregate Minimum Principal Payment Amount for
		such date) in respect of the principal of the Notes, if any, paid by the Policy
		Provider under the Policy for periods 
	 

	 
		 
	 

	 
		74
	 

	 
		 
	 

	 
	 

	 

	 
		prior to the related Payment Date to the
		extent not theretofore reimbursed to the Policy Provider and second, to the
		Policy Provider, an amount, not to exceed in the Aggregate Minimum Principal
		Payment Amount of the Notes for such Payment Date, equal to the amount of such
		Policy Drawings in respect of such principal so paid by the Policy Provider
		under the Policy prior to such Payment Date to the extent not theretofore
		reimbursed to the Policy Provider as of such Payment Date;
	 

	 
		(vi) first, to the
		Note Accounts for each subclass of Notes, in the order of priority by subclass
		set forth in Section 3.10, an amount equal to the Outstanding Principal Balance
		of such subclass of Notes in no order of priority inter se but
		pro rata according to the amount of the principal of such
		subclass of Notes less the amounts of Policy Drawings in respect of the
		principal of such subclass of Notes, if any, paid by the Policy Provider under
		the Policy for periods prior to such Payment Date to the extent not theretofore
		reimbursed to the Policy Provider and second, to the
		Policy Provider, an amount equal to the amount of Policy Drawings in respect of
		principal of the Notes paid by the Policy Provider under the Policy prior to
		such Payment Date to the extent not theretofore reimbursed to the Policy
		Provider as of such Payment Date;
	 

	 
		(vii) an amount equal to accrued interest
		(at the Excess Policy Rate) on any amounts paid by the Policy Provider under
		the Policy prior to the related Payment Date and to the extent not theretofore
		reimbursed to the Policy Provider as of such Payment Date, Special Indemnity
		Payments owed to the Policy Provider and all other Policy Provider
		Obligations;
	 

	 
		(viii) to pay Special Indemnity Payments to
		the applicable party pro rata
		(except for such payments made to the
		Policy Provider pursuant to clause (vii) above);
	 

	 
		(ix) payments to Hedge Providers,
		pro rata inter
		se, that are Subordinated Hedge
		Payments;
	 

	 
		(x) to the Class B Shareholder Account,
		in an amount equal to the Class B Share Payment, if any; and
	 

	 
		(xi) to the Capital Account, which amounts
		therein, to the extent determined by the Board, shall be available to be paid
		as a dividend or distribution to the holders of the Class A Shares.
	 

	 
		Section 3.10 Allocations of Principal Payments Among Subclasses of
		the Notes. To the extent that any
		payment of principal pursuant to Section 3.09(a) is allocable to any class of
		Notes on any Payment Date, such payment will be applied to repay all Notes in
		such class in the following order of priority: (i) first, to each
		subclass of such class of Notes, in order of the earliest issued subclass, the
		excess, if any, of the Outstanding Principal Balance of each such subclass over
		the product of the applicable Extended Pool Factor on such Payment Date and the
		initial principal balance of each such subclass (any such difference, the
		“Extension Amount”); provided that in
		the case of two or more subclasses issued on the same date, the Available
		Collections will be applied to each such subclass pro rata
		according to the amount of, but not to exceed, the Extension Amount of such
		subclass, (ii) second, to each
		such subclass, in no order of priority inter se, but
		pro rata according to the amount of, but not to exceed, the
		excess, if any, of the Outstanding Principal Balance of each such subclass
		(after giving effect to any payment under clause (i) above) over the
		product of the applicable Pool Factor on such Payment Date and the initial
		principal balance of each such subclass, (iii) third, to each
		such subclass with an Expected Final Payment Date that falls on or before such
		Payment Date, in order of the earliest issued 
	 

	 
		 
	 

	 
		75
	 

	 
		 
	 

	 
	 

	 

	 
		subclass; provided that in
		the case of two or more subclasses issued on the same date, the Available
		Collections will be applied to such subclasses in order of the subclass with
		the earliest Expected Final Payment Date and, with respect to any two or more
		subclasses having the same Expected Final Payment Date, the Available
		Collections will be applied to such subclasses pro rata
		according to the Outstanding Principal Balance of each such subclass (after
		giving effect to any payment under clauses (i) and (ii) above) on such
		Payment Date and (iv) fourth, to each
		such subclass in order of the earliest Expected Final Payment Date, provided,
		in the case of two or more subclasses having the same Expected Final Payment
		Date, in no order of priority inter
		se, but pro rata,
		according to the Outstanding Principal Balance of each such subclass (after
		giving effect to any payment under clauses (i), (ii), (iii) and (iv)
		above) on such Payment Date.
	 

	 
		Section 3.11 Certain Redemptions; Certain Premiums. (a) Optional
		Redemption. Subject to the provisions
		of Section 3.11(c), on any Payment Date the Issuer may elect to redeem
		(including in connection with any Refinancing) any subclass of the Notes in
		whole or in part, out of amounts available in the Defeasance/Redemption Account
		or, in the case of a Refinancing, the Refinancing Account, for such purpose, if
		any, other than, in either such case, any funds constituting part of the
		Available Collections, at the Redemption Price plus any accrued and unpaid
		interest (after giving effect to any payment thereof on such Redemption Date
		under Section 3.09) on the Notes to be redeemed on the Redemption Date plus the
		Policy Redemption Premium, if any; provided that
		such a redemption may only occur upon the prior written consent of the Policy
		Provider (except that a redemption in full of the Initial Notes shall not
		require any such consent if a Policy Non-Consent Event occurs in connection
		with such redemption) and after the giving of a Default Notice or the
		Acceleration of any Notes, the Notes may be redeemed only in whole but not in
		part pursuant to this Section 3.11(a); and provided
		further that Written Notice of any such Redemption shall be
		given by the Issuer (or the Cash Manager on its behalf) to the Trustee and, for
		so long as any Notes are listed on the Irish Stock Exchange, to the Listing
		Agent and the Irish Stock Exchange not less than thirty days and not more than
		forty-five days prior to such Redemption Date.
	 

	 
		(b) Redemption for Taxation Reasons. Subject to the provisions of Section 3.11(c), if, at
		any time,
	 

	 
		(i) the Issuer is, or on the next succeeding
		Payment Date will be, required to make any withholding or deduction under the
		laws or regulations of any applicable tax authority with respect to any payment
		on any subclass of Notes; or
	 

	 
		(ii) the Issuer is or will be subject to any
		circumstance (whether by reason of any law, regulation, regulatory requirement
		or double-taxation convention, or the interpretation or application thereof, or
		otherwise) that has resulted or will result in the imposition of a tax (whether
		by direct assessment or by withholding at source) or other similar imposition
		by any jurisdiction that would (A) materially increase the cost to the
		Issuer of making payments in respect of any subclass of Notes or of complying
		with its obligations under or in connection with the Notes; or
		(B) otherwise obligate the Issuer or any of its subsidiaries to make any
		material payment on, or calculated by reference to, the amount of any sum
		received or receivable by the Issuer, or by the Cash Manager on behalf of the
		Issuer Group as contemplated by the Cash Management Agreement;
	 

	 
		then the Issuer shall inform the Trustee in
		writing at such time of any such requirement or imposition and shall use
		commercially reasonable efforts to avoid the effect of the same;
		provided that no actions shall be taken by the Issuer to avoid
		such effects without a Rating Agency Confirmation and the prior written consent
		of the Policy Provider (except that a redemption in full of the Initial Notes
		shall not require the consent of the Policy Provider if a Policy Non-Consent
		Event occurs in connection with such 
	 

	 
		 
	 

	 
		76
	 

	 
		 
	 

	 
	 

	 

	 
		redemption). If, after using its
		commercially reasonable efforts to avoid the adverse effects described above,
		any Issuer Group Member has not avoided such effects, the Issuer may, at its
		election, redeem the affected subclass of Notes on any Payment Date, in whole,
		at the Outstanding Principal Balance thereof plus accrued and unpaid interest
		(after giving effect to any payment thereof on such Redemption Date under
		Section 3.09) thereon, but without premium, after paying the Required Expense
		Amount and all unpaid Policy Provider Obligations, Credit Facility Obligations
		and any amounts payable to any such Hedge Provider as of the Redemption Date to
		such Payment Date and plus the Policy Redemption Premium, if any;
		provided, however, that
		any such Redemptions may not occur more than 30 days prior to such time as
		the requirement or imposition described in (i) or (ii) above is to become
		effective and each of the Trustee and the Policy Provider shall have received a
		certification from the Issuer certifying that the applicable Issuer Group
		Member has been unable, after using such commercially reasonable efforts, to
		avoid the adverse effects described above; provided
		further that Written Notice of any such Redemption shall be
		given by the Issuer (or the Cash Manager on its behalf) to the Trustee, the
		Policy Provider not less than 30 days and not more than 45 days
		before such Redemption and, for so long as any Notes are listed on the Irish
		Stock Exchange and traded on the Irish Stock Exchange, to the Listing Agent and
		the Irish Stock Exchange not less than thirty days and not more than forty-five
		business days prior to the Redemption Date for such Redemption.
	 

	 
		(c) Method of Redemption. Upon receipt of notice from the Issuer or the Cash
		Manager under Section 3.11(a) or 3.11(b), the Trustee shall give Written Notice
		in respect of any such redemption of any subclass of Notes under Section
		3.11(a) or 3.11(b) (a “Redemption”) to the Depositary, the Initial Liquidity
		Facility Provider and the Policy Provider, at least ten days before the
		Redemption Date for such Redemption. The Depositary shall forward such Notice
		of Redemption to DTC or its nominee with any additional instructions applicable
		to owners of Beneficial Interests. If a Redemption is of less than all of the
		Notes of any subclass, Notes of such subclass to be redeemed will be repaid
		pro rata according to the Outstanding Principal Balance of each
		such subclass, to the extent moneys are available. Except in the case of a
		Refinancing, the Trustee shall not deliver any notice under this Section
		3.11(c) unless and until the Trustee shall have received certification that all
		conditions precedent to such Redemption have been satisfied and evidence
		satisfactory to it that the amounts required to be deposited pursuant to
		Section 3.11(d) are, or will on or before the Redemption Date be, deposited in
		the Defeasance/Redemption Account. Each notice in respect of a Redemption given
		pursuant to this Section 3.11(c) shall state (i) the applicable Redemption
		Date, (ii) the Trustee’s arrangements for making payments in respect
		of such Redemption, (iii) the Redemption Price or the Outstanding
		Principal Balance of each subclass of Notes to be redeemed, (iv) in the
		case of a Redemption of the Notes of any subclass in whole, the Notes of such
		subclass to be redeemed in whole must be surrendered to the Trustee to collect
		the Redemption Price plus accrued and unpaid interest on such Notes and
		(v) in the case of a Redemption of the Notes of any subclass in whole,
		that, unless the Issuer defaults in the payment of the Redemption Price and any
		accrued and unpaid interest thereon, interest on the subclass of Notes called
		for Redemption shall cease to accrue on and after the Redemption Date.
	 

	 
		(d) Deposit of Redemption Amount. On or before 10:00 a.m. (New York City time) on
		the Redemption Date in respect of a Redemption under Section 3.11(a), the
		Issuer shall, to the extent an amount equal to the Redemption Price of Initial
		Notes to be redeemed and all accrued and unpaid interest (after giving effect
		to any payment thereof on such Redemption Date under Section 3.09) thereon, all
		unpaid Policy Provider Obligations and Credit Facility Obligations (only in
		respect of any amounts drawn from the Liquidity Facility Reserve Account or
		Facility Drawings, as the case may be, in respect of Liquidity Facility
		Interest Class G Shortfalls) as of the Redemption Date is not then held on
		deposit therein, deposit or cause to be deposited in the Defeasance/Redemption
		Account or, in the case of a Refinancing, the Refinancing Account, other
		
	 

	 
		 
	 

	 
		77
	 

	 
		 
	 

	 
	 

	 

	 
		than, in either case, any funds constituting
		part of the Available Collections, an amount in immediately available funds
		equal to such amount. On or before 10:00 a.m. (New York City time) on the
		fifth day preceding any Redemption Date in respect of a Redemption under
		Section 3.11(b), the Issuer shall, to the extent an amount equal to the
		Outstanding Principal Balance of Initial Notes to be redeemed and all accrued
		and unpaid interest (after giving effect to any payment thereof on such
		Redemption Date under Section 3.09) thereon, all unpaid Policy Provider
		Obligations (including any Policy Premium and any Policy Redemption Premium, if
		any) and Credit Facility Obligations (only in respect of any amounts drawn from
		the Liquidity Facility Reserve Account or Facility Drawings, as the case may
		be, in respect of Liquidity Facility Interest Class G Shortfalls) as of the
		Redemption Date is not then held on deposit therein, deposit or cause to be
		deposited in the Defeasance/Redemption Account or, in case of a Refinancing,
		the Refinancing Account, other than, in either case, any funds constituting
		part of Available Collections, an amount in immediately available funds equal
		to such amount. In the event the Initial Notes are redeemed in full, the Policy
		shall be surrendered to the Policy Provider for cancellation.
	 

	 
		(e) Notes Payable on Redemption Date. After notice has been given under Section 3.11(c), the
		Outstanding Principal Balance of the Initial Notes to be redeemed on such
		Redemption Date shall become due and payable at the Corporate Trust Office of
		the Trustee, and from and after such Redemption Date (unless there shall be a
		default in the payment of the applicable amount to be redeemed) such principal
		amount shall cease to bear interest. Upon surrender of any Note for redemption
		in accordance with such notice, the Redemption Price or the Outstanding
		Principal Balance (as applicable) of such Note, together with accrued and
		unpaid interest on such Note shall be paid as provided for in this Section
		3.11. If any Note to be redeemed shall not be so paid upon surrender thereof
		for redemption, the amount in respect thereof shall continue to bear interest
		until paid from the Redemption Date at the interest rate applicable to such
		Note.
	 

	 
		Section 3.12 Adjustment of Certain Percentages, Factors and
		Balances. Upon each acquisition of any
		Additional Aircraft (other than any Additional Aircraft acquired by way of a
		contribution) or the issuance of any Refinancing Notes, subject to
		Sections 5.02(f) and 5.02(h) (as applicable), the Pool Factors and
		Extended Pool Factors for any subclass of Notes may be adjusted to take into
		account such Permitted Additional Aircraft Acquisition or the issuance of such
		Refinancing Notes in the manner specified in the Board Resolution providing for
		such action subject to the prior written consent of the Policy Provider and the
		Initial Liquidity Facility Provider; provided that no
		Pool Factor or Extended Pool Factor for any subclass of Notes may be adjusted
		so as to change the original average life of the affected subclass of Notes.
		The Cash Manager shall include such adjusted Pool Factors, Extended Pool
		Factors and Minimum Target Principal Balances in each Quarterly Report and
		Annual Report.
	 

	 
		Section 3.13 Eligible Credit Facilities. Notwithstanding Section 3.09, Article X, or
		anything else to the contrary contained in this Indenture or the Security Trust
		Agreement, all amounts available in any Cash Collateral Account or drawn
		against any other Eligible Credit Facility shall be paid to Holders of the
		subclass of Notes (and holders of other obligations) for whose benefit such
		Eligible Credit Facility is stated to be established except to the extent
		otherwise provided in the Board Resolutions providing for such Eligible Credit
		Facility.
	 

	 
		Section 3.14 Initial Liquidity Facility. (a) Facility
		Drawings. If the Cash Manager
		determines in accordance with Section 3.07(g) hereof that after making all
		withdrawals (prior to any drawings under the Policy but after giving effect to
		any withdrawals from the Liquidity Facility Reserve Account and the Senior Cash
		Collateral Account (if established)) and transfers to be made with respect to
		the applicable Payment Date, there is (i) a Required Expenses Shortfall,
		(ii) a Senior Hedge Payments 
	 

	 
		 
	 

	 
		78
	 

	 
		 
	 

	 
	 

	 

	 
		Shortfall and/or (iii) a Liquidity
		Facility Interest Class G Shortfall, in each case as calculated in Section
		3.07(g), the Cash Manager shall so notify the Trustee in writing and shall, no
		later than 5:00 p.m. (New York City time) four Business Days prior to such
		Payment Date, request a drawing (each such drawing, a “Facility Drawing”) under the Initial Liquidity Facility, to be paid
		on or prior to such Payment Date, in an amount equal to the lesser of
		(A) the aggregate amount of the shortfall from clauses (i), (ii) and
		(iii) above and (B) the Available Amount under the Initial Liquidity
		Facility.
	 

	 
		(b) Application of Facility Drawings. The proceeds of any Facility Drawing shall be
		deposited into the Initial Liquidity Payment Account and withdrawn by the
		Operating Bank, upon Written Notice from the Cash Manager, for application on
		the applicable Payment Date in the following manner: first, to the
		Expense Account an amount such that the amount on deposit therein is at least
		equal to the Required Expense Amount for such Payment Date and second, in no
		order of priority inter
		se, but pro rata,
		(1) to the Note Account for the Class G-1 Notes, the amount of accrued and
		unpaid interest on the Class G-1 Notes with respect to the applicable Payment
		Date in no order of priority inter
		se, but pro rata; and
		(2) pro rata, to any Hedge Provider, an amount equal to any Senior
		Hedge Payment due from any Issuer Group Member pursuant to any Hedge
		Agreement.
	 

	 
		(c) Downgrade Drawings. The Initial Liquidity Facility Provider shall notify
		the Issuer, the Cash Manager and the Policy Provider promptly upon the
		occurrence of a Downgrade Event. If at any time a Downgrade Event has occurred
		and within 10 days after notice of such Downgrade Event (but not later
		than the expiration date of the Initial Liquidity Facility) (i) the
		Initial Liquidity Facility Provider or the Issuer does not arrange to replace
		the Initial Liquidity Facility with a Replacement Liquidity Facility,
		(ii) the Initial Liquidity Facility Provider shall not have received a
		Rating Agency Confirmation for the Class G-1 Notes with respect to the
		Downgrade Event or (iii) the Policy Provider shall not have confirmed in
		writing that such downgrading will not constitute a Downgrade Event, on such
		10th day (or if such 10th day is not a Business Day, on the next succeeding
		Business Day) (or, if earlier, the expiration date of the Initial Liquidity
		Facility), then the Cash Manager shall, upon the occurrence of a Downgrade
		Event with respect to the Initial Liquidity Facility, request a drawing in
		accordance with and to the extent permitted by the Initial Liquidity Facility
		(such drawing, a “Downgrade
		Drawing”) of the Available Amount.
		Amounts drawn pursuant to a Downgrade Drawing shall be deposited into the
		Liquidity Facility Reserve Account to the extent of the Available
		Amount.
	 

	 
		(d) Non-Extension Drawings. If the Initial Liquidity Facility is to expire on a
		date (the “Stated Expiration
		Date”) prior to the date that is
		15 days after the Final Maturity Date with respect to the Class G-1 Notes,
		then, no earlier than the 60th day and no later than the 30th day prior to the
		applicable Stated Expiration Date then in effect, the Cash Manager shall
		request that the Initial Liquidity Facility Provider extend the Stated
		Expiration Date until the earlier of (i) the date which is 15 days
		after the Final Maturity Date with respect to the Class G-1 Notes and
		(ii) the date that is the 364th day following the Stated Expiration Date
		then in effect (unless the obligations of the Initial Liquidity Facility
		Provider are earlier terminated in accordance with the Initial Liquidity
		Facility). If on or before the date which is 10 days prior to the Stated
		Expiration Date, (A) the Initial Liquidity Facility shall not have been
		replaced in accordance with Section 3.14(e) and (B) the Initial Liquidity
		Facility Provider fails irrevocably and unconditionally to advise the Cash
		Manager that such Stated Expiration Date then in effect shall be so extended
		(whether or not the Cash Manager has in fact requested an extension), the Cash
		Manager shall immediately, in accordance with the terms of the Initial
		Liquidity Facility (a “Non-Extended
		Facility”), request a drawing
		(such drawing, a “Non-Extension
		Drawing”) for the Available
		Amount. Amounts drawn pursuant to a Non-Extension Drawing shall be deposited
		into the Liquidity Facility Reserve Account to the extent of the Available
		Amount.
	 

	 
		 
	 

	 
		79
	 

	 
		 
	 

	 
	 

	 

	 
		(e) Issuance of Replacement Liquidity
		Facility. (1) If the Initial Liquidity
		Facility Provider shall determine not to extend the Stated Expiration Date in
		accordance with Section 3.14(d), then either the Initial Liquidity Facility
		Provider or the Issuer may, at their respective options, arrange for a
		Replacement Liquidity Facility to replace the Initial Liquidity Facility during
		the period no earlier than 35 days and no later than 10 days prior to
		the then effective Stated Expiration Date.
	 

	 
		(ii) If a Downgrade Event shall have
		occurred with respect to the Initial Liquidity Facility in accordance with
		Section 3.14(c), then either the Initial Liquidity Facility Provider or the
		Issuer may, at their respective options, arrange for a Replacement Liquidity
		Facility to replace the Initial Liquidity Facility within 10 days after
		receiving notice of such Downgrade Event (but not later than the expiration
		date of the Initial Liquidity Facility); provided,
		however, that the Initial Liquidity Facility Provider may, at
		its option, arrange for a Replacement Liquidity Facility at any time following
		a Downgrade Drawing so long as the Issuer has not already arranged for a
		Replacement Liquidity Facility.
	 

	 
		(iii) (a) At any time after the Initial
		Closing Date, the Initial Liquidity Facility Provider may, at its option,
		arrange for a Replacement Liquidity Facility to replace the Initial Liquidity
		Facility.
	 

	 
		(B) No Replacement Liquidity Facility
		arranged by the Initial Liquidity Facility Provider or the Issuer in accordance
		with clauses (i), (ii) and (iii)(A) above shall become effective and no
		such Replacement Liquidity Facility shall be deemed an “Eligible Credit
		Facility” under this Indenture, unless and until (x) each of the
		conditions referred to in subclause (C) below shall have been satisfied,
		and (y) in the case of a Replacement Liquidity Facility arranged by the
		Initial Liquidity Facility Provider, such Replacement Liquidity Facility is
		acceptable to the Issuer.
	 

	 
		(C) In connection with the issuance of each
		Replacement Liquidity Facility, (x) the Cash Manager shall, prior to the
		issuance of such Replacement Liquidity Facility, have received a Rating Agency
		Confirmation with respect to the Class G-1 Notes (without regard to any
		downgrading of any rating of the Initial Liquidity Facility Provider being
		replaced pursuant to Section 3.14(c) hereof and without regard to the Policy),
		(y) all Credit Facility Obligations then owing to the replaced Initial
		Liquidity Facility Provider (which payment shall be made first from available
		funds in the Liquidity Facility Reserve Account and thereafter from any other
		available source, including, without limitation, a drawing under the
		Replacement Liquidity Facility) shall be paid by the Operating Bank upon
		receipt of a Written Notice of the Cash Manager setting forth the amount of the
		Credit Facility Obligations then owing to the replaced Initial Liquidity
		Facility Provider and (z) the issuer of the Replacement Liquidity Facility
		shall deliver the Replacement Liquidity Facility to the Cash Manager, together
		with a legal opinion opining that such Replacement Liquidity Facility has been
		duly authorized, executed and delivered by, and is an enforceable obligation
		of, such Replacement Liquidity Facility Provider, such legal opinion to be
		reasonably satisfactory to the Policy Provider unless the legal opinion of
		counsel to the Replacement Liquidity Facility Provider is in form and substance
		substantially the same as the legal opinion of counsel to the Initial Liquidity
		Facility Provider delivered on the Initial Closing Date.
	 

	 
		 
	 

	 
		80
	 

	 
		 
	 

	 
	 

	 

	 
		(D) Upon satisfaction of the conditions set
		forth in clauses (B) and (C) of this Section 3.14(e)(iii) with respect to
		a Replacement Liquidity Facility, (w) the replaced Initial Liquidity
		Facility shall terminate, (x) the Cash Manager shall, if and to the extent
		so requested by the Issuer or the Initial Liquidity Facility Provider being
		replaced, execute and deliver any certificate or other instrument required in
		order to terminate the replaced Initial Liquidity Facility, shall surrender the
		replaced Initial Liquidity Facility to the Initial Liquidity Facility Provider
		being replaced and shall execute and deliver the Replacement Liquidity
		Facility, (y) each of the parties hereto shall enter into any amendments
		to this Indenture and any other Related Documents necessary to give effect to
		(1) the replacement of the applicable Initial Liquidity Facility Provider
		with the applicable Replacement Liquidity Facility Provider and (2) the
		replacement of the applicable Initial Liquidity Facility with the applicable
		Replacement Liquidity Facility and (z) such Replacement Liquidity Facility
		Provider shall be deemed to be a provider of an Eligible Credit Facility with
		the rights and obligations of the Initial Liquidity Facility Provider hereunder
		and under the other Related Documents and such Replacement Liquidity Facility
		shall be deemed to be an Eligible Credit Facility (and, if so designated by the
		Board, the “Initial Liquidity
		Facility”) hereunder and under the
		other Related Documents.
	 

	 
		For purposes of clarification, an assignment
		to an Eligible Provider as permitted thereunder by the provider of the Initial
		Liquidity Facility or any other Eligible Credit Facility shall not be
		considered a Replacement Liquidity Facility; provided, that
		written notification of such assignment shall have been provided to the Rating
		Agencies and the Policy Provider, and the assignee has delivered to the Cash
		Manager legal opinions with respect to due authorization, execution, delivery
		and enforceability substantially similar in scope and substance to the legal
		opinions delivered by counsel to the Initial Liquidity Facility Provider on the
		Initial Closing Date. Following any assignment in accordance with the
		provisions thereof and in the foregoing proviso, the assignee shall be deemed
		to be the “Initial Liquidity Facility Provider” for all purposes of
		the Related Documents.
	 

	 
		(f) Liquidity Facility Reserve Account; Withdrawals;
		Investments. All amounts drawn under
		the Initial Liquidity Facility by the Cash Manager pursuant to Section 3.14(c),
		3.14(d) or 3.14(i) hereof shall be deposited by the Cash Manager into the
		Liquidity Facility Reserve Account. All amounts on deposit in the Liquidity
		Facility Reserve Account, including any amount deposited in accordance with
		clause (iv) of Section 3.09(a), shall be invested and reinvested in
		accordance with Section 3.02. Upon a request by the Initial Liquidity Facility
		Provider, the Cash Manager shall provide the Initial Liquidity Facility
		Provider with the amount of Investment Earnings held in the Liquidity Facility
		Reserve Account as of the Calculation Date. On each Payment Date, the Cash
		Manager shall direct the Operating Bank to pay to the Initial Liquidity
		Facility Provider all Investment Earnings on amounts on deposit in the
		Liquidity Facility Reserve Account. Amounts on deposit in the Liquidity
		Facility Reserve Account shall be withdrawn by or at the direction of the Cash
		Manager under the following circumstances:
	 

	 
		(i) in accordance with Section
		3.01(n);
	 

	 
		(ii) on any Payment Date, if the amount in
		the Liquidity Facility Reserve Account exceeds the Maximum Facility Commitment,
		then the Cash Manager shall direct the Operating Bank to withdraw, upon Written
		Notice from the Cash Manager, from such Account such excess and pay such amount
		to the Initial Liquidity Facility Provider until all Credit Facility
		Obligations owed to such Person shall have been paid in full, and shall deposit
		any remaining amount in the Collections Account;
	 

	 
		 
	 

	 
		81
	 

	 
		 
	 

	 
	 

	 

	 
		(iii) if a Replacement Liquidity Facility is
		established following the date on which funds have been deposited into the
		Liquidity Facility Reserve Account, the Cash Manager shall direct the Operating
		Bank to withdraw, upon Written Notice from the Cash Manager, all amounts on
		deposit in the Liquidity Facility Reserve Account and shall pay such amounts to
		the replaced Initial Liquidity Facility Provider until all Credit Facility
		Obligations owed to such Person shall have been paid in full, and shall deposit
		any remaining amount in the Collections Account;
	 

	 
		(iv) in the event that (x) the Outstanding
		Principal Balance of, and accrued and unpaid interest on, the Notes have been
		paid in full, (y) this Indenture has been terminated with respect to all of the
		Class G-1 Notes issued hereunder or (z) the Class G-1 Notes are no longer
		entitled to the benefits of the Liquidity Facility, the Cash Manager shall
		direct the Operating Bank to withdraw, upon Written Notice from the Cash
		Manager, all amounts from the Liquidity Facility Reserve Account and pay such
		amounts to the Initial Liquidity Facility Provider until all Credit Facility
		Obligations owed to the Initial Liquidity Facility Provider shall have been
		paid in full, and shall deposit any remaining amount in the Collections
		Account; and
	 

	 
		(v) 15 days after the Final Maturity
		Date with respect to the Class G-1 Notes, the Operating Bank shall withdraw,
		upon Written Notice from the Cash Manager, all amounts on deposit in the
		Liquidity Facility Reserve Account and shall pay such amounts to the Initial
		Liquidity Facility Provider until all Credit Facility Obligations owed to such
		Person shall have been paid in full, and shall deposit any remaining amount in
		the Collections Account.
	 

	 
		(g) Reinstatement.
		With respect to any Facility Drawing under the Initial Liquidity Facility, upon
		the reimbursement to the Initial Liquidity Facility Provider in full or in part
		of the amount of such Facility Drawing, together with any accrued interest
		thereon, the Available Amount of the Initial Liquidity Facility shall be
		reinstated by an amount equal to the amount of such Facility Drawing so
		reimbursed to the Initial Liquidity Facility Provider but not to exceed the
		Maximum Commitment; provided,
		however, that the Available Amount shall not be so
		reinstated in part or in full at any time (i) if a Liquidity Facility
		Event of Default shall have occurred and be continuing or (ii) if a
		Downgrade Drawing, Non-Extension Drawing or Final Drawing shall have been
		made.
	 

	 
		(h) Reimbursement.
		The amount of each Facility Drawing under the Initial Liquidity Facility and
		any amounts withdrawn from the Liquidity Facility Reserve Account following a
		Downgrade Drawing, Non-Extension Drawing or a Final Drawing shall be due and
		payable, together with interest thereon, on the dates and at the rates,
		respectively, provided in the Initial Liquidity Facility but only to the extent
		that Available Collections are sufficient to pay such amounts in the order of
		priority set forth in Section 3.09.
	 

	 
		(i) Final Drawing.
		Upon (A) receipt from the Initial Liquidity Facility Provider of a
		Termination Notice with respect to the Initial Liquidity Facility, the Cash
		Manager shall, not later than the date specified in such Termination Notice, in
		accordance with the terms of the Initial Liquidity Facility, or (B) the
		occurrence of an Insolvency Proceeding, the Cash Manager shall promptly,
		request a drawing under the Initial Liquidity Facility of the Available Amount
		(a “Final Drawing”). Proceeds of a Final Drawing shall be deposited
		into the Liquidity Facility Reserve Account to the extent of the Available
		Amount, in accordance with clause (f) above.
	 

	 
		 
	 

	 
		82
	 

	 
		 
	 

	 
	 

	 

	 
		(j) Initial Liquidity Facility Provider
		Consent. To the extent that the Initial
		Liquidity Facility Provider’s consent or approval is required under this
		Indenture or any other Related Document, such consent is not required in the
		event that (i) no Notes are Outstanding and (ii) no Credit Facility
		Advance Obligations are due and owing to the Initial Liquidity Facility
		Provider (and, in the case of any issuance of the Additional Notes, if any, an
		Initial Liquidity Facility Non-Consent Event has occurred).
	 

	 
		Section 3.15 The Policy. The
		Policy Provider shall issue a Policy in favor of the Trustee for the benefit of
		the Holders of the Class G-1 Notes, and the following shall apply to the Policy
		and to the Class G-1 Notes subject thereto:
	 

	 
		(a) Interest Drawings. If the Cash Manager determines that there is an
		Interest Class G Shortfall for any Payment Date (other than the Final
		Maturity Date of the Class G1 Notes and the date of the Final Policy Election)
		in respect of the Class G-1 Notes (calculated as provided in Section
		3.07(h)(i)), the Cash Manager shall, prior to 12:00 p.m. (New York City
		time) on the third Business Day prior to such Payment Date, instruct the
		Trustee to request and the Trustee shall, no later than 12:00 p.m. (New
		York City time) on the second Business Day prior to such Payment Date, request
		a Policy Drawing (each, an “Interest Class G Drawing”) under the Policy in respect of the Class G-1
		Notes (for payment into the related Note Account) in an amount equal to the
		Interest Class G Shortfall for the Class G-1 Notes with respect to such
		Payment Date. Any request received after 12:00 p.m. (New York City time)
		on any Business Day or on any day that is not a Business Day shall be deemed to
		have been received by the Policy Provider on the next Business Day. Upon
		receipt of any such request for a Policy Drawing, the Policy Provider or its
		fiscal agent shall pay, no later than 12:00 p.m. (New York City time) on
		the later of (i) the applicable Payment Date and (ii) the second
		Business Day following the Business Day on which the Policy Provider received
		the Trustee’s request referred to above, into the Note Account for the
		Class G-1 Notes the amount of the Interest Class G Shortfall for each the
		Class G-1 Notes with respect to such Payment Date. Upon receipt, the Trustee
		shall direct the payment of the amount in the applicable Note Account to the
		Holders of the Class G-1 Notes in payment of the Interest Class G
		Shortfall therefor.
	 

	 
		(b) Proceeds Deficiency Drawing. If at any time after an Acceleration of the Notes,
		there is a sale or other disposition of an Aircraft (not including any Aircraft
		acquired by way of contribution) or of an Issuer Subsidiary that owns an
		Aircraft (not including any Aircraft acquired by way of contribution), in each
		case, by, on behalf of or at the direction of the Controlling Party, and there
		is a Deficiency Class G Shortfall resulting therefrom (calculated as
		provided in Section 3.07(h)(ii)), the Cash Manager shall, prior to
		12:00 p.m. (New York City time) on the third Business Day prior to the
		next succeeding Payment Date (other than the Final Maturity Date of the Class
		G1 Notes and the date of the Final Policy Election), instruct the Trustee to
		request and the Trustee, no later than 12:00 p.m. (New York City time) on
		the second Business Day prior to such Payment Date, shall request a Policy
		Drawing (each, a “Deficiency
		Drawing”) under the Policy in
		respect of the Class G-1 Notes in an amount equal to the Deficiency
		Class G Shortfall with respect to such Payment Date (for payment into the
		related Note Account) on such Payment Date. Any request received after
		12:00 p.m. (New York City time) on any Business Day or on any day that is
		not a Business Day shall be deemed to have been received by the Policy Provider
		on the next Business Day. Upon receipt of any such request, the Policy Provider
		or its fiscal agent shall, no later than 12:00 p.m. (New York City time)
		on the later of (i) the applicable Payment Date and (ii) the second
		Business Day following the Business Day on which the Policy Provider received
		the Trustee’s request referred to above, pay under the Policy an amount
		equal to the Deficiency Class G Shortfall for the Class G-1 Notes with
		respect to such Payment Date. 
	 

	 
		 
	 

	 
		83
	 

	 
		 
	 

	 
	 

	 

	 
		Upon receipt, the Trustee shall direct the
		payment of the amount in the applicable Note Account to the holders of the
		Class G-1 Notes in payment of the Deficiency Class G Shortfall
		therefor.
	 

	 
		(c) No Proceeds Drawing. If, on any Payment Date (other than the Final Maturity
		Date of the Class G-1 Notes and the date of the Final Policy Election) falling
		on or after the date that is 24 months after the date of the issuance of a
		Default Notice or an Acceleration of the Notes that is continuing as of the
		Calculation Date immediately preceding such Payment Date or an Acceleration of
		the Notes (the “Non-Performance
		Period”), there is a Minimum
		Class G Principal Shortfall in respect of the Notes for the then next
		succeeding Payment Date (calculated as provided in Section 3.07(h)(iii)
		hereof), the Cash Manager shall, no later than 12:00 p.m. (New York City
		time) on the third Business Day prior to such Payment Date, instruct the
		Trustee to request and the Trustee shall, no later than 12:00 p.m. (New
		York City time) on the second Business Day prior to such Payment Date, request,
		a Policy Drawing (each, a “No
		Proceeds Drawing”) under the
		Policy (for payment into the applicable Note Account) in an amount equal to the
		Minimum Class G Principal Shortfall with respect to such Payment Date. Any
		request received after 12:00 p.m. (New York City time) on any Business Day
		or on any day that is not a Business Day shall be deemed to have been received
		by the Policy Provider on the next Business Day. Upon receipt of such request,
		the Policy Provider or its fiscal agent shall, no later than 12:00 p.m.
		(New York City time) on the later of (i) the applicable Payment Date and
		(ii) the second Business Day following the Business Day on which the
		Policy Provider receives the Trustee’s request referred to above, pay
		under the Policy an amount equal to the Minimum Class G Principal
		Shortfall with respect to such Payment Date. Upon receipt, the Trustee shall
		direct the payment of the amount in the related Note Account to the holders of
		the Class G-1 Notes in payment of the Minimum Class G Principal Shortfall
		therefor.
	 

	 
		Notwithstanding the preceding paragraph,
		with respect to any Payment Date occurring on or after the date of the
		occurrence of an Event of Default with respect to the Class G-1 Notes that is
		continuing on the date of the Final Policy Election, and the occurrence of the
		earlier of (i) the date of a Policy Drawing and (ii) the 60th Payment
		Date, the Policy Provider may, so long as a Policy Provider Default shall not
		have occurred and be continuing and the Policy has not been surrendered for
		cancellation in accordance with Section 3.15(k) hereof, elect (a
		“Final Policy
		Election”), upon at least four
		Business Days’ prior Written Notice to the Trustee (with a copy to the
		Cash Manager), to pay on such Payment Date, an amount sufficient (after giving
		effect to the application of Available Collections in accordance with the
		applicable payment priorities set forth in Section 3.09, the application of any
		Facility Drawings (or drawings under any Replacement Liquidity Facility) and
		the application of any withdrawals from the Liquidity Facility Reserve Account
		or the Senior Cash Collateral Account (if established) and any withdrawals from
		the Cash Collateral Account, if any, in accordance with the terms hereof) to
		pay the then Outstanding Principal Balance of the Class G-1 Notes (less any
		Policy Drawings previously paid in respect of the principal of the Class G
		Notes), plus accrued and unpaid interest thereon (at the Applicable Rate of
		Interest for the Class G-1 Notes), for the period from the immediately
		preceding Payment Date to the date of such payment (any such amount to be paid
		by such Policy Provider, the “Outstanding Balance”). Upon receipt of any such notice, the Cash
		Manager shall (A) calculate the then Outstanding Balance of the Class G-1
		Notes and (B) prior to 12:00 p.m. (New York City time) on the third
		Business Day prior to such Payment Date, instruct the Trustee to request, and
		the Trustee shall request no later than 12:00 p.m. (New York City time) on
		the second Business Day prior to such Payment Date, a Policy Drawing in respect
		of the Class G-1 Notes in the amount of the then Outstanding Balance of the
		Class G-1 Notes. Upon receipt of any such request, the Policy Provider or its
		fiscal agent shall, no later than 12:00 p.m. (New York City time) on the
		later of (x) the applicable Payment Date and (y) the second Business
		Day following the Business Day on which the Policy Provider receives the
		Trustee’s request referred to above, pay under the Policy, in respect of
		the Class G-1 Notes, an amount equal to the Outstanding Balance for the Class
		G-1 Notes. Upon receipt, the Trustee shall pay the amount in the 
	 

	 
		 
	 

	 
		84
	 

	 
		 
	 

	 
	 

	 

	 
		applicable Note Account to the holders of
		the Class G-1 Notes in payment of the Outstanding Balance therefor.
	 

	 
		(d) Final Policy Drawing. If the Cash Manager determines (calculated as provided
		in Section 3.07(h)(iv)) that on the Final Maturity Date of the Class G-1 Notes
		there will be insufficient funds available for the payment in full of the
		Outstanding Amount in respect of the Class G-1 Notes as of such date, the Cash
		Manager shall, prior to 12:00 p.m. (New York City time) on the third
		Business Day prior to such Final Maturity Date, instruct the Trustee in writing
		to request, and the Trustee shall, no later than 12:00 p.m. (New York City
		time) on the second Business Day prior to such Final Maturity Date, request a
		Policy Drawing under the Policy (for payment into the related Note Account) in
		an amount sufficient to pay the Outstanding Amount for the Class G-1 Notes.
		Upon receipt of such request for a Policy Drawing, the Policy Provider or its
		fiscal agent shall, no later than 12:00 p.m. (New York City time) on the
		later of (i) such Final Maturity Date and (ii) the second Business
		Day following the Business Day on which the Policy Provider receives the
		Trustee’s request referred to above, pay under and in accordance with the
		terms of the Policy, in respect of the Class G-1 Notes an amount sufficient to
		pay the Outstanding Amount for the Class G-1 Notes. Any request received by the
		Policy Provider after 12:00 p.m. (New York City time) on any Business Day
		or on any day that is not a Business Day shall be deemed to have been received
		by the Policy Provider on the next Business Day. Upon receipt, the Trustee
		shall direct the payment of the amount in the applicable Note Account to the
		holders of the Class G-1 Notes in payment of the Outstanding Amount
		therefor.
	 

	 
		(e) Avoidance Drawings. If at any time a Responsible Officer of the Trustee
		shall have actual knowledge of the issuance of any Final Order, the Trustee
		shall promptly give notice thereof to the Policy Provider and the Cash Manager.
		The Cash Manager shall thereupon determine the Avoided Payments in respect of
		the Class G-1 Notes resulting therefrom and shall promptly: (i) send to
		the Holders of the Notes a Written Notice of such amounts and (ii) prior
		to the expiration of the Policy, deliver to the Trustee a Written Notice
		instructing the Trustee to, and the Trustee shall immediately, deliver to the
		Policy Provider or its fiscal agent a Notice of Avoided Payment under the
		Policy, together with a copy of the documentation required by the Policy with
		respect thereto, requesting a Policy Drawing (each, an “Avoidance Drawing”) thereunder (for payment to the receiver,
		conservator, debtor-in-possession, trustee in bankruptcy, and/or the Trustee
		for deposit into the related Note Account, as applicable) in an amount equal to
		the amount of the relevant Avoided Payment. To the extent that any portion of
		such Avoidance Drawing is to be paid to the Trustee in respect of the Class G-1
		Notes, such Written Notice shall also set the date for the distribution of such
		portion of the proceeds of such Policy Drawing which date shall constitute a
		Special Distribution Date and shall be the third Business Day following the
		date the Policy Provider has received the documentation referred to in
		clause (ii) above. Upon receipt, the Cash Manager shall pay the proceeds
		of the specified Policy Drawing under the Policy to the Trustee for payment to
		the Holders of the Class G-1 Notes.
	 

	 
		(f) Application of Policy Drawings. Notwithstanding anything to the contrary contained in
		this Indenture, all payments received by the Trustee in respect of a Policy
		Drawing (including, without limitation, that portion, if any, of the proceeds
		of a Policy Drawing for any Avoided Payment that is to be paid to the Trustee
		and not to any receiver, conservator, debtor-in-possession or trustee in
		bankruptcy as provided in the Policy) shall be promptly paid to the Holders of
		the Class G-1 Notes.
	 

	 
		(g) Resubmission of a Notice of Payment. If the Policy Provider at any time informs the Trustee
		in accordance with the Policy that a Notice of Nonpayment or Notice of Avoided
		Payment submitted by the Trustee does not satisfy the requirements of the
		Policy, the Trustee 
	 

	 
		 
	 

	 
		85
	 

	 
		 
	 

	 
	 

	 

	 
		shall, as promptly as possible after being
		so informed, submit to the Policy Provider an amended and revised Notice of
		Nonpayment or Notice of Avoided Payment, as the case may be, and shall transfer
		to the Note Account the amount received pursuant to such amended or revised
		Notice of Nonpayment or Notice of Avoided Payment, as the case may be, when
		received.
	 

	 
		(h) No Discharge of the Issuer’s
		Obligations. Except to the extent
		reimbursed to the Policy Provider, the payment of principal of or interest on
		the Class G-1 Notes with funds drawn under the Policy shall not reduce the
		Outstanding Principal Balance of, or interest due, on the Class G-1 Notes, or
		be deemed to discharge the Issuer’s obligation to repay such funds drawn
		under the Policy to the Policy Provider, which obligation shall continue in
		full force and effect. Following the payment in full by the Policy Provider of
		the Class G-1 Notes, the Policy Provider shall be deemed to be the Holder of
		such Class G-1 Notes and the Trustee shall take any action necessary to
		effectuate such status of the Policy Provider. 
	 

	 
		(i) Interest Coverage. The interest payable by the Policy Provider under the
		Policy shall include interest accruing during the pendency of any bankruptcy,
		insolvency, receivership or other similar proceeding, regardless of whether
		allowed or allowable in such proceeding. The interest payable by the Policy
		Provider under the Policy shall not include any Redemption Premium on the
		Notes.
	 

	 
		(j) Policy Provider Consent. The Policy Provider agrees that to the extent its
		consent or approval is required under this Indenture or any other Related
		Document, such consent is not required in the event that (i) a Policy
		Non-Consent Event has occurred and is continuing or, in the case of any
		issuance of any Additional Notes or Refinancing Notes, a Policy Non-Consent
		Event will occur in connection therewith, or (ii) a Policy Provider
		Default has occurred and is continuing. If the consent of the Policy Provider
		is required pursuant to any provision of Sections 5.02 or 5.03 of this
		Indenture or Section 7.04 of the Servicing Agreement, (A) the Policy
		Provider shall provide the Issuer with a written response confirming its
		consent or rejection of any proposed action submitted to it by the Issuer or
		the Servicer as promptly as practicable following its receipt of a proposal
		from the Issuer or the Servicer and in any event within the time period
		indicated by the Issuer in its proposal, acting reasonably, which time period
		shall in any event not be less than fifteen calendar days after receipt of such
		a proposal by the Policy Provider and (B) such consent, in each case, may
		not be unreasonably withheld. If the Policy Provider fails to provide any party
		hereto with a written response within the time indicated by the Issuer or the
		Servicer in its proposal, the Policy Provider shall be deemed to have not
		approved such proposal. If a response to such proposal is required, the Policy
		Provider will use reasonable efforts to provide its written response within the
		indicated time period, provided
		that failure to provide such response
		shall not constitute a breach under this Indenture by the Policy
		Provider.
	 

	 
		(k) Release of Policy Provider. Notwithstanding anything to the contrary herein, and
		for the avoidance of doubt, if the Policy is terminated and surrendered to the
		Policy Provider for cancellation and all Policy Provider Obligations are paid
		in full, all rights and obligations of the Policy Provider under this Indenture
		(including, but not limited to, all obligations set forth in this Section 3.15)
		shall be terminated and released.
	 

	 
		Section 3.16 Class A Share Cure Rights. In the event that the amounts available for
		distribution under Section 3.09 and from any Eligible Credit Facility are
		insufficient to pay in full any of the Secured Obligations or any other
		Obligations, the Cash Manager shall promptly notify the Issuer and the Issuer
		may, out of funds provided to it by any holder of the Class A Shares by
		way of shareholder contributed surplus (without the issuance of additional
		Class A Shares) (and not out of any amounts in the Collections Account or
		any other Account or any other Collateral), pay such shortfall with respect to
		such 
	 

	 
		 
	 

	 
		86
	 

	 
		 
	 

	 
	 

	 

	 
		Obligations on the applicable Payment Date
		by giving Written Notice of its intention to do so (specifying the amount
		thereof) to the Cash Manager at least two Business Days prior to such Payment
		Date and by transferring funds in such amount (the “Contribution Amounts”) to the Trustee one Business Day prior to such
		Payment Date for deposit into the Collections Account. All Contribution Amounts
		so deposited shall (a) be paid out of such Account to the applicable
		Person or transferred to the applicable Account, in each case as specified by
		the Class A Shareholder, notwithstanding Section 3.09, Article X hereof or
		anything else to the contrary contained in this Indenture or the Security Trust
		Agreement and (b) not constitute an obligation or debt of the
		Issuer.
	 

	 
		Section 3.17 DSCR Failure. In
		the event that the Cash Manager determines, in accordance with Section 3.07(c)
		hereof, that a DSCR Failure for the related Payment Date will occur, it shall
		provide Written Notice thereof (not later than two Business Days prior to such
		Payment Date) to the Issuer, the Trustee and the Policy Provider. In the event
		that a DSCR Failure has occurred and is continuing, all proceeds on deposit in
		the Collections Account shall be applied in accordance with Section 3.09(b)
		hereof.
	 

	 
		ARTICLE IV
  
	 

	 
		DEFAULT AND REMEDIES
	 

	 
		Section 4.01 Events of Default. Each of the following events shall constitute an
		“Event of Default” hereunder with respect to any subclass of Notes,
		and each such Event of Default shall be deemed to exist and continue so long
		as, but only so long as, it shall not have been remedied:
	 

	 
		(a) failure by the Issuer to pay when due
		interest on any Note of such subclass, and the continuance of such default
		unremedied for a period of five Business Days after the same shall have become
		due and payable;
	 

	 
		(b) failure by the Issuer to pay when due
		principal of any Note of such subclass no later than the applicable Final
		Maturity Date;
	 

	 
		(c) failure by the Issuer to pay any amount
		(other than interest) when due and payable in connection with any Note of such
		subclass to the extent that there are, on any Payment Date, amounts available
		for such payment in the Collections Account or the Cash Collateral Account with
		respect to the Notes of such subclass, and the continuance of such default for
		a period of five or more Business Days after such Payment Date;
	 

	 
		(d) failure of any of the representations or
		warranties of the Issuer under this Indenture to be true and correct or failure
		by the Issuer to comply with any of the covenants, obligations, conditions or
		provisions binding on it under this Indenture or any of the Notes (other than a
		payment default for which provision is made in clause (a), (b) or (c) of
		this Section 4.01), if in any such case such failure or breach materially
		adversely affects the Holders of such subclass of Notes and continues for a
		period of 30 days or more (or, if such failure or breach is capable of
		remedy within 90 days (or in the case of a breach with respect to a
		covenant contained in Section 5.03, 180 days) of the date of the written notice
		referred to below and the Cash Manager has promptly provided the Trustee with a
		certificate stating that the Issuer has commenced, or will promptly commence,
		and diligently pursue all reasonable efforts to remedy such failure or breach,
		90 days (or 180 days, as applicable) so long as the Issuer or any Issuer
		Subsidiary is diligently pursuing such remedy but in any event no longer than
		90 days (or 180 days, as applicable)) after written notice thereof has
		been given to the Issuer by the Controlling Party or by the Holders of at least
		a majority of the aggregate Outstanding Principal Balance of the Notes);
	 

	 
		 
	 

	 
		87
	 

	 
		 
	 

	 
	 

	 

	 
		(e) a court having jurisdiction in the
		premises enters a decree or order for (i) relief in respect of the Issuer
		or any direct or indirect subsidiary thereof (other than a Non-Significant
		Subsidiary), under any Applicable Law relating to bankruptcy, insolvency,
		receivership, winding-up, liquidation, reorganization, examination, relief of
		debtors or other similar law now or hereafter in effect; (ii) appointment
		of a receiver, liquidator, examiner, assignee, custodian, trustee, sequestrator
		or similar official of the Issuer or any direct or indirect subsidiary thereof
		(other than a Non-Significant Subsidiary); or (iii) the winding up or
		liquidation of the affairs of the Issuer or any direct or indirect subsidiary
		thereof (other than a Non-Significant Subsidiary) and, in each case, such
		decree or order shall remain unstayed or such writ or other process shall not
		have been stayed or dismissed within 90 days from entry thereof;
	 

	 
		(f) the Issuer or any direct or indirect
		subsidiary thereof (other than a Non-Significant Subsidiary) (i) commences
		a voluntary case under any Applicable Law relating to bankruptcy, insolvency,
		receivership, winding-up, liquidation, reorganization, examination, relief of
		debtors or other similar law now or hereafter in effect, or consents to the
		entry of an order for relief in any involuntary case under any such law;
		(ii) consents to the appointment of or taking possession by a receiver,
		liquidator, examiner, assignee, custodian, trustee, sequestrator or similar
		official of the Issuer or any direct or indirect subsidiary thereof (other than
		a Non-Significant Subsidiary) or for all or substantially all of the property
		and assets of the Issuer or any direct or indirect subsidiary thereof (other
		than a Non-Significant Subsidiary); or (iii) effects any general
		assignment for the benefit of creditors;
	 

	 
		(g) one or more judgments or orders for the
		payment of money that are in the aggregate in excess of 5% of the Assumed
		Portfolio Value shall be rendered against the Issuer or any Issuer Subsidiary
		or any other member of the Issuer Group and either (i) enforcement
		proceedings shall have been commenced by any creditor upon such judgment or
		order or (ii) there shall be any period of 10 consecutive days during
		which a stay of enforcement of such judgment or order, by reason of a pending
		appeal or otherwise, shall not be in effect; provided,
		however, that any such judgment or order shall not be an Event
		of Default under this Section 4.01(g) if and for so long as (i) the amount
		of such judgment or order is covered by a valid and binding policy of insurance
		between the defendant and the insurer covering payment thereof and
		(ii) such insurer, which shall be rated at least “A” by A.M.
		Best Company or any similar successor entity, has been notified of, and has not
		disputed the claim made for payment of, the amount of such judgment or order;
		or
	 

	 
		(h) the constitutional documents creating
		the Issuer cease to be in full force and effect without replacement documents
		having the same terms being in full force and effect.
	 

	 
		Section 4.02 Acceleration, Rescission and Annulment. (a) If an Event of Default with respect to any
		subclass of Notes (other than an Event of Default under clause (e) or (f)
		of Section 4.01 hereof) occurs and is continuing, the Controlling Party may,
		and (if the Controlling Party is the Trustee) upon the written direction of
		Holders of a majority of the aggregate Outstanding Principal Balance of the
		Notes, shall, give a Default Notice to the Issuer, the Cash Manager, the
		Security Trustee and the Trustee (if the Trustee is not the Controlling Party)
		declaring the Outstanding Principal Balance of the Notes and all accrued and
		unpaid interest thereon to be due and payable. If the Controlling Party is the
		Policy Provider or the Initial Liquidity Facility Provider, only it may give a
		Default Notice. Subject to Section 3.16, upon delivery of a Default Notice,
		such Outstanding Principal Balance and all accrued and unpaid interest thereon
		shall be due and payable. At any time after the Controlling Party has declared
		the Outstanding Principal Balance of the Notes to be due and payable and prior
		to the exercise of any other remedies pursuant to this Article IV, the
		Controlling Party may (and if the Controlling Party is the Trustee, upon the
		written direction of Holders of a majority of the aggregate Outstanding
		Principal Balance of the Notes, shall) by Written Notice to the Issuer, the
		Trustee (if not the Controlling Party), the Cash Manager 
	 

	 
		 
	 

	 
		88
	 

	 
		 
	 

	 
	 

	 

	 
		and the Security Trustee, subject to Section
		4.05(a), rescind and annul such declaration and thereby annul its consequences
		if: (i) there has been paid to or deposited with the Trustee an amount
		sufficient to pay all overdue installments of interest on the Notes, and the
		principal or Redemption Price of the Notes that would have become due otherwise
		than by such declaration of acceleration, (ii) the rescission or annulment
		would not conflict with any judgment or decree and (iii) all other
		Defaults and Events of Default, other than nonpayment of interest and principal
		on the Notes that have become due solely because of such acceleration
		(including any Hedge Payments owed to any Hedge Provider) have been cured or
		waived. If the Controlling Party is the Policy Provider or the Initial
		Liquidity Facility Provider, only it may give a notice of annulment. If an
		Event of Default under clause (e) or (f) of Section 4.01 occurs, the
		Outstanding Principal Balance of the Notes and all accrued and unpaid interest
		thereon shall automatically become due and payable without any further action
		by any party.
	 

	 
		(b) No Person other than the Controlling
		Party may give a Default Notice or exercise any such remedy.
	 

	 
		(c) The Trustee shall provide each Rating
		Agency with a copy of any Default Notice it receives pursuant to this
		Indenture.
	 

	 
		Section 4.03 Other Remedies.
		If an Event of Default occurs and is continuing, the Trustee (at the written
		direction of the Controlling Party if the Trustee is not the Controlling Party
		and at the written direction of Holders of a majority of the aggregate
		Outstanding Principal Balance of the Notes if the Controlling Party is the
		Trustee) may pursue any available remedy by proceeding at law or in equity to
		collect the payment of principal or Redemption Price of, or interest on, the
		Notes or to enforce the performance of any provision of the Notes or this
		Indenture.
	 

	 
		The Trustee may maintain a proceeding even
		if it does not possess any of the Notes or does not produce any of them in the
		proceeding.
	 

	 
		Section 4.04 Limitation on Suits. Without limiting the provisions of Section 4.09 and
		the final sentence of Section 12.04(a), no Holder shall have any right to
		institute any proceeding, judicial or otherwise, with respect to this
		Indenture, the Security Trust Agreement or the Notes, or for the appointment of
		a receiver or trustee, or for any other remedy hereunder, unless:
	 

	 
		(a) the Trustee is the Controlling
		Party;
	 

	 
		(b) such Holder holds Class G-1 Notes and
		has previously given written notice to the Trustee of a continuing Event of
		Default;
	 

	 
		(c) the Holders of a majority of the
		aggregate Outstanding Principal Balance of the Notes make a written request to
		the Trustee to pursue a remedy hereunder;
	 

	 
		(d) such Holder or Holders offer to the
		Trustee an indemnity reasonably satisfactory to the Trustee against any costs,
		expenses and liabilities to be incurred in complying with such request;
	 

	 
		(e) the Trustee does not comply with such
		request within 60 days after receipt of the request and the offer of
		indemnity; and
	 

	 
		(f) during such 60-day period, Holders of a
		majority of the Outstanding Principal Balance of the Notes do not give the
		Trustee a revocation or direction inconsistent with such request.
	 

	 
		 
	 

	 
		89
	 

	 
		 
	 

	 
	 

	 

	 
		No one or more Holders may use this
		Indenture to affect, disturb or prejudice the rights of another Holder or to
		obtain or seek to obtain any preference or priority not otherwise created by
		this Indenture and the terms of the Notes over any other Holder or to enforce
		any right under this Indenture, except in the manner herein provided.
	 

	 
		Section 4.05 Waiver of Existing Defaults. (a) The Controlling Party or (if the Controlling Party
		is the Trustee) the Holders of a majority of the Outstanding Principal Balance
		of the Notes by notice to the Trustee and the Issuer may waive any existing
		Default hereunder and its consequences, except no waiver may be given with
		respect to a Default: (i) in the deposit or distribution of any payment
		required to be made on any Notes, (ii) in the payment of the interest on,
		principal of or premium, if any, with respect to any Note or (iii) in
		respect of a covenant or provision hereof which under Article IX cannot be
		modified or amended without the consent of the Holder of each Note affected
		thereby. 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 Indenture, but no such waiver shall extend to any subsequent or
		other Default or impair any right consequent thereon. Each such notice of
		waiver shall also be given to each Rating Agency.
	 

	 
		(b) Any written waiver of a Default or an
		Event of Default given by the Controlling Party or the Holders to the Trustee
		and the Issuer in accordance with the terms of this Indenture shall be binding
		upon the Trustee and the other parties hereto. Unless such writing expressly
		provides to the contrary, any waiver so granted shall extend only to the
		specific event or occurrence which gave rise to the Default or Event of Default
		so waived and not to any other similar event or occurrence which occurs
		subsequent to the date of such waiver.
	 

	 
		Section 4.06 Restoration
		of Rights and Remedies. If the Trustee
		or any Holder of Notes has instituted any proceeding to enforce any right or
		remedy under this Indenture, and such proceeding has been discontinued or
		abandoned for any reason, or has been determined adversely to the Trustee or
		such Holder, then in every such case the Issuer, the Trustee and the Holders
		shall, subject to any determination in such proceeding, be restored severally
		and respectively to their former positions hereunder, and thereafter all rights
		and remedies of the Trustee and the Holders shall continue as though no such
		proceeding has been instituted.
	 

	 
		Section 4.07 Remedies Cumulative. Each and every right, power and remedy herein given to
		the Trustee (or the Controlling Party) specifically or otherwise in this
		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 Trustee
		(or the Controlling Party), 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 Trustee (or the Controlling Party) 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 Issuer or to be an acquiescence therein.
	 

	 
		Section 4.08 Authority of Courts Not Required. The parties hereto agree that, to the greatest extent
		permitted by law, the Trustee shall not be obliged or required to seek or
		obtain the authority of, or any judgment or order of, the courts of any
		jurisdiction in order to exercise any of its rights, powers and remedies under
		this Indenture, and the parties hereby waive any such requirement to the
		greatest extent permitted by law.
	 

	 
		 
	 

	 
		90
	 

	 
		 
	 

	 
	 

	 

	 
		Section 4.09 Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture,
		the right of any Holder to receive payment of principal or Redemption Price of,
		or interest, on its Note on or after the respective due dates therefor
		expressed in such Note, or to bring suit for the enforcement of any such
		payment on or after such respective dates, shall not be impaired or affected
		without the consent of such Holder.
	 

	 
		Section 4.10 Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other
		papers or documents as may be necessary or advisable in order to have the
		claims of the Trustee (including any claim for the reasonable compensation,
		expenses, disbursements and advances of the Trustee, its agents and counsel)
		and of any Holder allowed in any judicial proceedings relating to any obligor
		on the Notes, its creditors or its property and shall be entitled and empowered
		to collect, receive and distribute any money or other property payable or
		deliverable on any such claims and otherwise in accordance with the terms of
		this Indenture, and any custodian in any such judicial proceeding is hereby
		authorized by each obligee to make such payments to the Trustee, as
		administrative expenses associated with any such proceeding, and, in the event
		that the Trustee shall consent to the making of such payments directly to the
		obligee to pay to the Trustee any amount due to it for the reasonable
		compensation, expenses, disbursements and advances of the Trustee, its agents
		and counsel, and any other amounts due to the Trustee under Section 8.01 and
		otherwise in accordance with the terms of this Indenture.
	 

	 
		Section 4.11 Undertaking for Costs. All parties to this Indenture agree, and each Holder
		by its acceptance thereof shall be deemed to have agreed, that in any suit for
		the enforcement of any right or remedy under this Indenture or in any suit
		against the Trustee for any action taken or omitted by it as Trustee, a court
		in its discretion may require the filing by any party litigant in such suit of
		an undertaking to pay the costs of such suit, and the court in its discretion
		may assess reasonable costs, including reasonable attorneys’ fees, against
		any party litigant in such suit, having due regard to the merits and good faith
		of the claims or defense made by the party litigant. This Section 4.11 does not
		apply to a suit instituted by the Trustee, a suit instituted by any Holder for
		the enforcement of the payment of principal or Redemption Price of, or
		interest, on its Note on or after the respective due dates expressed in such
		Note, or a suit by a Holder or Holders of more than 10% of the Outstanding
		Principal Balance of any class or subclass of the Notes.
	 

	 
		Section 4.12 Remedies; Rights of Controlling Party. Subject always to the provisions of this
		Article IV, the Controlling Party shall have the right to direct the time,
		method and place of conducting any proceeding for any remedy available to the
		Trustee; provided that (a) such direction shall not be in conflict
		with any rule of law or other applicable provisions of this Indenture and other
		Related Documents and would not involve the Trustee in personal liability or
		expense; and (b) the Trustee may take any other action deemed proper by
		the Trustee which is not inconsistent with such direction. 
	 

	 
		ARTICLE V
  
	 

	 
		REPRESENTATIONS, WARRANTIES AND
		COVENANTS
	 

	 
		Section 5.01 Representations and Warranties. The Issuer represents and warrants to the parties
		hereto on each Closing Date as follows:
	 

	 
		(a) Due Organization. The Issuer is an exempted company duly organized and
		validly existing under the laws of Bermuda and has the corporate power and
		authority to own or hold its properties and to enter into and perform its
		obligations under the Related Documents to which it is or will be a party, and
		each Issuer Subsidiary is a corporation, trust or limited liability company
		duly organized in its respective jurisdiction of organization, in each case
		with full power and 
	 

	 
		 
	 

	 
		91
	 

	 
		 
	 

	 
	 

	 

	 
		authority to conduct its business; and none
		of the Issuer or any Issuer Subsidiary is in liquidation, bankruptcy or
		suspension of payments.
	 

	 
		(b) Special Purpose Status. The Issuer has not engaged in any activities since its
		incorporation (other than those incidental to its incorporation and other
		appropriate corporate steps including the issue of shares and arrangements for
		the payment of fees to, and director’s and officer’s insurance for,
		the members of its Board, the authorization and the issuance of the Initial
		Notes, the execution of the Related Documents and the activities referred to in
		or contemplated by such agreements), and the Issuer has not paid any dividends
		or other distributions since its incorporation.
	 

	 
		(c) Non-Contravention. The acquisition of the Initial Aircraft and interests
		in the Initial Leases either directly or through the purchase of the Issuer
		Subsidiaries pursuant to the Asset Purchase Agreement, the creation of the
		Initial Notes, the issuance, execution and delivery by the Issuer of, and the
		compliance by the Issuer with the terms of the Initial Notes, and the execution
		and delivery by each Issuer Group Member of, and compliance by it with the
		terms of each of the Related Documents to which it is a party:
	 

	 
		(i) do not and will not at the Initial
		Closing Date or any Payment Date conflict with, or result in a breach of any of
		the terms or provisions of, or constitute a default under, the memorandum of
		association of the Issuer or the constituent documents of any Issuer Subsidiary
		or with any existing law, rule or regulation applying to or affecting the
		Issuer or any Issuer Subsidiary or any judgment, order or decree of any
		government, governmental body or court having jurisdiction over the Issuer or
		any Issuer Subsidiary; and
	 

	 
		(ii) do not and will not at the Initial
		Closing Date or any Payment Date constitute a default under, any deed,
		indenture, agreement or other instrument or obligation to which the Issuer or
		any Issuer Subsidiary is a party or by which any of them or any part of their
		undertaking, assets, property or revenues are bound.
	 

	 
		(d) Due Authorization. The acquisition of the Initial Aircraft and interests
		in the Initial Leases, the creation, execution and issuance of the Initial
		Notes, the execution and issue or delivery by the Issuer and each Issuer
		Subsidiary of the Related Documents executed by it and the performance by each
		of them of their obligations hereunder and thereunder and the arrangements
		contemplated hereby and thereby to be performed by each of them have been duly
		authorized by each of them.
	 

	 
		(e) Validity and Enforceability. This Indenture constitutes, and the Related Documents
		to which it is a party, when executed and delivered and, in the case of the
		Initial Notes, when issued and authenticated, will constitute valid, legally
		binding and (subject to general equitable principles, insolvency, liquidation,
		reorganization and other laws of general application relating to
		creditors’ rights or claims or the concepts of materiality,
		reasonableness, good faith and fair dealing) enforceable obligations of each of
		the Issuer and each Issuer Subsidiary executing the same.
	 

	 
		(f) No Defaults.
		There exists no Default, Event of Default nor any event which, had the Initial
		Notes already been issued, would constitute a Default or an Event of
		Default.
	 

	 
		(g) No Encumbrances.
		Subject to the Security Interests created in favor of the Security Trustee and
		except for Permitted Encumbrances, there exists no Encumbrance over the assets
		or 
	 

	 
		 
	 

	 
		92
	 

	 
		 
	 

	 
	 

	 

	 
		undertaking of (i) the Issuer which
		ranks prior to or pari passu with the obligation to make payments on the
		Initial Notes or (ii) any Issuer Subsidiary.
	 

	 
		(h) No Consents. All
		consents, approvals, authorizations or other orders of all regulatory
		authorities required (excluding any required by the other parties to the
		Related Documents) for or in connection with the execution and performance of
		the Related Documents by the Issuer and each Issuer Subsidiary and the issue
		and performance of the Initial Notes and the offering of the Initial Notes by
		the Issuer have been obtained and are in full force and effect and not
		contingent upon fulfillment of any condition.
	 

	 
		(i) No Litigation.
		There is no action, suit, investigation or proceeding pending against, or to
		the knowledge of the Issuer, threatened against or affecting, the Issuer or any
		Issuer Subsidiary before any court or arbitrator or any governmental body,
		agency or official which in any manner challenges or seeks to prevent, enjoin,
		alter or materially delay the transactions contemplated by this Indenture
		(including the Exhibits and Schedules attached hereto) and the Related
		Documents or which could reasonably be expected to have a material adverse
		effect on the ability of the Issuer or any Issuer Subsidiary to perform its
		obligations under the Related Documents.
	 

	 
		(j) Employees, Subsidiaries. The Issuer and each Issuer Subsidiary have no
		employees. Set forth in Schedule 2 is a true and complete list, as of the
		date hereof, of all Issuer Subsidiaries existing on the Initial Closing Date,
		together with their jurisdictions of incorporation.
	 

	 
		(k) Ownership. The
		Issuer or an Issuer Subsidiary is the beneficial owner of the Pledged Shares,
		the Pledged Debt, the Pledged Beneficial Interest and the Non-Trustee Accounts,
		free from all Encumbrances and claims whatsoever other than Permitted
		Encumbrances.
	 

	 
		(l) No Filings.
		Under the laws of Bermuda, the State of New York, the Federal laws of the
		United States of America or the laws of the jurisdiction of organization of any
		Issuer Subsidiary, it is not necessary or desirable that this Indenture or any
		Related Document to which the Issuer or an Issuer Subsidiary is a party (other
		than evidences of the Security Interests) be filed, recorded or enrolled (other
		than the filing of the Memorandum of Association of the Issuer in Bermuda which
		filing has been made and this Indenture in Bermuda which filing will have been
		made within five Business Days after the Initial Closing Date) with any court
		or other authority in any such jurisdictions or that any stamp, registration or
		similar tax be paid on or in relation to this Indenture or any of the other
		Related Documents.
	 

	 
		(m) Aircraft Assets.
		Schedule 1 contains a true and complete list of all Aircraft constituting
		Initial Aircraft as of the Initial Closing Date and each Person within the
		Issuer Group that is, as of the Initial Closing Date, expected to own such
		Initial Aircraft as of the Acquisition Date for such Aircraft under the Asset
		Purchase Agreement. Except as otherwise set forth therein, after each Initial
		Aircraft listed on Schedule 1 has been delivered under the Asset Purchase
		Agreement on the Acquisition Date therefor, as such Schedule may be amended by
		notice to the parties hereto by the Issuer, each Person within the Issuer Group
		listed as an owner of an Aircraft on such Schedule will have such title to such
		Aircraft as was conveyed to such Person, free and clear of all Liens created by
		or through such Person.
	 

	 
		(n) Aircraft Assets Related Documents. Each Aircraft Assets Related Document is a legal,
		valid and binding agreement of the Person within the Issuer Group that is a
		party thereto (including by way of assignment or novation) and is enforceable
		against such Person within the Issuer Group that is a party thereto in
		accordance with its terms except where enforceability may 
	 

	 
		 
	 

	 
		93
	 

	 
		 
	 

	 
	 

	 

	 
		be limited by general equitable principles,
		insolvency, liquidation, reorganization and other laws of general application
		relating to creditors’ rights or claims or the concepts of materiality,
		reasonableness, good faith and fair dealing. No Person within the Issuer Group
		has modified, amended or waived any provision of or terminated any Aircraft
		Assets Related Document referred to in Schedule 4.02 to the Servicing
		Agreement except as disclosed therein.
	 

	 
		(o) Other Representations. The representations and warranties made by the Issuer
		and each Issuer Subsidiary in any of the other Related Documents are true and
		accurate.
	 

	 
		(p) Insurance. Each
		Lessee under an Initial Lease carries War Risk Coverage in an amount at least
		equal to the Current War Risk Coverage Amount set forth in Schedule 7
		hereto with respect to such Lessee.
	 

	 
		(q) ERISA. Neither
		the Issuer, nor any Issuer Group Member is, or will be, a Plan and no portion
		of the assets of the Issuer or any Issuer Group Member constitute, or will
		constitute, assets of any Plan.
	 

	 
		Section 5.02 General Covenants. The Issuer hereby covenants as follows:
	 

	 
		(a) No Release of Obligations. The Issuer shall not take, or knowingly permit any
		Issuer Subsidiary to take, any action which would amend, terminate (other than
		any termination in connection with the replacement of such agreement with an
		agreement on terms substantially no less favorable to the Issuer Group than the
		agreement being terminated) or discharge or prejudice the validity or
		effectiveness of this Indenture (other than as permitted herein), the Security
		Trust Agreement, any Acquisition Agreement, the Administrative Services
		Agreement, the Cash Management Agreement, any organizational document of the
		Issuer or any Issuer Subsidiary, the Policy (other than as expressly permitted
		hereunder), the Initial Liquidity Facility (other than as expressly permitted
		hereunder), the Reference Agency Agreement, the Servicing Agreement, the
		Capital Markets Advisory Agreement or any other Related Document to which the
		Issuer or any Issuer Subsidiary is a party or permit any party (other than an
		Issuer Group Member) to any such document to be released from such obligations,
		except, in each case, as permitted or contemplated by the terms of such
		document and except that in no event shall the Policy be so terminated (other
		than as expressly permitted hereunder), and provided that
		such actions may be taken or permitted, and such releases may be permitted
		(other than with respect to the termination of the Policy), if the Issuer shall
		have (i) obtained an authorizing resolution of the Board determining that
		such action, permitted action or release does not materially adversely affect
		the interests of the Holders or the Policy Provider (ii) given prior
		notice thereof to the Rating Agencies and (iii) obtained the prior written
		consent of the Policy Provider; and provided
		further that, in any case (i) the Issuer shall not amend
		or modify the conflicts standard or duty of care in the Servicing Agreements,
		(ii) except in the circumstances expressly contemplated in this Indenture,
		the Issuer may not amend the Policy without the unanimous consent of the
		Holders of Notes and without obtaining a Rating Agency Confirmation and
		(iii) there must be at all times an administrative agent with respect to
		the Issuer Group Services (as defined in the Administrative Services Agreement)
		and a servicer (provided that, if the Servicer terminates the Servicing
		Agreement pursuant to Section 10.02(a) thereof, or the Policy Provider
		terminates the Servicing Agreement pursuant to Section 10.02(b) thereof, this
		Section 5.02(a) shall not be violated if the Issuer uses its best efforts to
		obtain a successor servicer) with respect to all Aircraft in the
		Portfolio.
	 

	 
		(b) Limitation on Encumbrances. The Issuer shall not, and shall not permit any Issuer
		Subsidiary to, create, Incur, assume or suffer to exist any mortgage, pledge,
		lien, encumbrance, 
	 

	 
		 
	 

	 
		94
	 

	 
		 
	 

	 
	 

	 

	 
		charge or security interest (in each case,
		an “Encumbrance”), including, without limitation, any conditional
		sale, any sale with recourse against the Issuer or any Issuer Subsidiary (it
		being agreed that for this purpose customary representations, warranties and
		other undertakings with respect to assets sold shall not be considered
		recourse), or any agreement to give any security interest over or with respect
		to, any of the Issuer’s or any Issuer Subsidiary’s assets (other than
		the segregation of the Segregated Funds) including, without limitation, all
		shares of capital stock, all beneficial interests in trusts, all ordinary
		shares and preferred shares and any options, warrants and other rights to
		acquire such shares or interests (“Ownership Interest”) and any Indebtedness of any Issuer Subsidiary
		held by the Issuer or any Issuer Subsidiary.
	 

	 
		Notwithstanding the foregoing, the Issuer
		may create, Incur, assume or suffer to exist (i) any Permitted
		Encumbrance, (ii) any security interest created or required to be created
		under the Security Documents, (iii) Encumbrances over rights in or derived
		from Leases, upon prior written consent of the Policy Provider and receipt of a
		Rating Agency Confirmation (provided that
		any transaction or series of transactions resulting in such Encumbrance, taken
		as a whole, does not materially adversely affect the amount of Collections that
		would have been received by the Issuer and any other Issuer Group Member from
		such Lease had such Encumbrance not been created), (iv) any other
		Encumbrance the validity or applicability of which is being contested in good
		faith in appropriate proceedings by the Issuer or any Issuer Subsidiary,
		(v) any Encumbrance in connection with any transfer of title to or Lease
		of an Aircraft (A) to or in favor of a trust or an entity for the purpose
		of registering the Aircraft under the laws of an applicable jurisdiction, or
		for tax or other regulatory purposes, so long as, however, the Issuer or any
		Issuer Subsidiary retains the beneficial and economic ownership of the Aircraft
		or (B) from such trust or entity to the Issuer or an Issuer Subsidiary
		(subject in the case of subclause (A) of this subclause (v) to the
		limitations set forth in subclause (F) of Section 5.02(g) below) and
		(vi) any lien created in favor of the issuer of a surety bond, letter of
		credit or similar instrument to be obtained by the Issuer or any Issuer
		Subsidiary in connection with the repossession of an Aircraft or other
		enforcement action under a Lease.
	 

	 
		For the purposes of this Indenture,
		“Affiliate” means, with respect to any Person, any other
		Person that, directly or indirectly, Controls, is Controlled by or is under
		common Control with, such Person or is a director or officer of such Person;
		“Control” of a Person means the possession, direct or
		indirect, of the power to direct or cause the direction of the management and
		policies of such Person, whether through the ownership of voting Ownership
		Interest, by contract or otherwise. For the avoidance of doubt, each Issuer
		Group Member shall be an “Affiliate” of each other Issuer Group
		Member. For the purposes of this Indenture, “Permitted Encumbrance” means (i) any lien for taxes, assessments
		and governmental charges or levies not yet due and payable or which are being
		contested in good faith by appropriate proceedings; (ii) in respect of any
		Aircraft, any lien of a repairer (including for modifications, refurbishment,
		repairs or maintenance), carrier or hangar keeper arising in the ordinary
		course of business by operation of law or any engine or parts-pooling
		arrangements or other similar lien; (iii) any permitted lien or
		encumbrances on any Aircraft, Engines or Parts as defined under any Lease
		thereof (other than liens or encumbrances created by the relevant lessor);
		(iv) any lien created by or through or arising from debt or liabilities or
		any act or omission of any Lessee in each case either in contravention of the
		relevant Lease (whether or not such Lease has been terminated) or without the
		consent of the relevant lessor (provided that if
		such lessor becomes aware of any such lien, it shall use commercially
		reasonable efforts to have any such lien lifted); (v) any head lease,
		lease, conditional sale agreement or Purchase Option under or in respect of the
		Initial Lease of any Initial Aircraft existing on the Acquisition Date of such
		Aircraft or otherwise existing on the relevant Closing Date or thereafter
		existing under any other Aircraft Agreement meeting the requirements of
		clause (ii)(C) or (ii)(E) of the second paragraph of Section 5.02(g)
		hereof; (vi) any lien of an insurer for salvage, (vii) any lien for
		air navigation authority, airport authority, airport tending, gate or handling
		(or similar) charges or levies; (viii) any lien created in favor of the
		Issuer, any Issuer Subsidiary or the Security Trustee securing the Secured
		Obligations; (ix) any Encumbrance arising under an Eligible Credit
		Facility or a Conversion Agreement and (x) any other lien 
	 

	 
		 
	 

	 
		95
	 

	 
		 
	 

	 
	 

	 

	 
		not referred to in clauses (i) through
		(ix) of this paragraph which would not adversely affect the owner’s rights
		and does not exceed, individually, $250,000 per Aircraft or, in the aggregate,
		0.25% of the Assumed Portfolio Value.
	 

	 
		(c) Limitation on Restricted Payments. The Issuer shall not, and shall not permit any Issuer
		Subsidiary to:
	 

	 
		(i) declare or pay any dividend or make any
		distribution on its Ownership Interest held by Persons other than the Issuer or
		any Issuer Subsidiary; provided that
		the Issuer may, subject always to the provisions of Article III hereof,
		make payments in respect of the Class A Shares and the Class B
		Shares;
	 

	 
		(ii) purchase, redeem, retire or otherwise
		acquire for value any shares of Ownership Interest in the Issuer or any Issuer
		Subsidiary held by or on behalf of Persons other than the Issuer or any Issuer
		Subsidiary or other Issuer Group Member other than as provided in
		Sections 2.11 and 5.02(l)(ii)(C);
	 

	 
		(iii) make any payment of principal,
		interest or premium, if any, on the Notes or make any voluntary or optional
		repurchase, defeasance or other acquisition or retirement for value of
		Indebtedness of the Issuer or such Issuer Subsidiary that is not owed to the
		Issuer or such Issuer Subsidiary other than in accordance with
		Articles II, III and XI hereof, the Policy Provider Documents and
		otherwise provided for in the Related Documents; provided that
		the Issuer or any of its Affiliates may repurchase, defease or otherwise
		acquire or retire any of the Notes other than from the Available Collections so
		long as any new notes of the Issuer issued in connection with such transaction
		rank pari passu with the Notes being repurchased, defeased, acquired or retired
		and the Board shall determine that such action does not materially adversely
		affect the Holders and shall have obtained prior written consent of the Policy
		Provider and a Rating Agency Confirmation (other than in accordance with
		Articles II, III and XI hereof); or
	 

	 
		(iv) make any Investments (other than
		Permitted Account Investments, Allowed Restructurings, Investments permitted
		under Section 5.02(e) or 5.02(i) and Investments in any Issuer Group Member
		pursuant to any Acquisition Agreement or a Permitted Additional Aircraft
		Acquisition.
	 

	 
		The term “Investment” for purposes
		of the above restriction means any loan or advance to a Person, any purchase or
		other acquisition of any beneficial interest, capital stock, warrants, rights,
		options, obligations or other securities of such Person, any capital
		contribution to such Person or any other Investment in such Person. For the
		avoidance of doubt, “Investment” shall not include any obligation of
		a purchaser of an Aircraft to make deferred or installment payments pursuant to
		any Aircraft Agreement specified in (ii)(C) or (ii)(E) of the second paragraph
		of Section 5.02(g) so long as the Issuer Group retains a security interest in
		the relevant Aircraft until all such obligations are discharged or any payment
		owing to a Lessee.
	 

	 
		(d) Limitation on Dividends and Other Payment
		Restrictions. The Issuer shall not, and
		shall not permit any Issuer Subsidiary to, create or otherwise suffer to exist
		any consensual encumbrance or restriction of any kind on the ability of any
		Issuer Subsidiary to (i) declare or pay dividends or make any other
		distributions permitted by Applicable Law, or purchase, redeem or otherwise
		acquire for value, the Ownership Interest of the Issuer or such Issuer
		Subsidiary, as the case may be; (ii) pay any Indebtedness owed to the
		Issuer or such Issuer Subsidiary; (iii) make 
	 

	 
		 
	 

	 
		96
	 

	 
		 
	 

	 
	 

	 

	 
		loans or advances to the Issuer or such
		Issuer Subsidiary; or (iv) transfer any of its property or assets to the
		Issuer or any other Issuer Subsidiary.
	 

	 
		The foregoing provisions shall not restrict
		any consensual encumbrances or other restrictions, including (i) Permitted
		Encumbrances, (ii) existing on the Initial Closing Date or, in the case of
		any Aircraft, the Acquisition Date of such Aircraft, under any Related
		Document, and any amendments, extensions, refinancings, renewals or
		replacements of such documents; provided that
		such consensual encumbrances and restrictions in any such amendments,
		extensions, refinancings, renewals or replacements are no less favorable in any
		material respect to the Holders than those previously in effect and being
		amended, extended, refinanced, renewed or replaced; or (iii) in the case
		of clause (iv) of the preceding paragraph, that restrict in a
		customary manner the subletting, assignment or transfer of any property or
		asset that is an aircraft, engine, part, lease, license, conveyance or contract
		or similar property or asset, or existing by virtue of any transfer of,
		agreement to transfer, option or right with respect to, or consensual
		encumbrance on, any property or assets of the Issuer or any Issuer Subsidiary
		not otherwise prohibited by this Indenture. 
	 

	 
		(e) Limitation on Engaging in Business
		Activities. The Issuer shall not, and
		shall not permit any Issuer Subsidiary to, engage in any business or activity
		other than:
	 

	 
		(i) acquiring, purchasing, owning, holding,
		converting, maintaining, modifying, managing, operating, leasing, re-leasing
		and selling or otherwise disposing of the Aircraft and entering into all
		contracts and engaging in all related activities incidental thereto, including
		from time to time accepting, exchanging, holding or permitting any Issuer
		Subsidiary to accept, exchange or hold promissory notes, contingent payment
		obligations or equity interests, of Lessees or their Affiliates issued in
		connection with the bankruptcy, reorganization or other similar process, or in
		settlement of delinquent obligations or obligations anticipated to be
		delinquent, of such Lessees or their respective Affiliates in the ordinary
		course of business (an “Allowed
		Restructuring”);
	 

	 
		(ii) providing loans to, guaranteeing or
		otherwise supporting the obligations and liabilities of any Issuer Group
		Member, in each case on such terms and in such manner as the Board sees fit and
		(whether or not the Issuer or any Issuer Subsidiary derives a benefit
		therefrom) so long as such loans, guarantees or other supports are provided in
		connection with the purposes set forth in clause (i) of this Section
		5.02(e); provided that written notification shall have been given to each
		Rating Agency, the Policy Provider and the Initial Liquidity Facility Provider
		of such loan, guarantee or other support, provided that,
		no such notice shall be required for any guarantee provided by an Issuer Group
		Member with respect to any obligations of another Issuer Group Member in
		respect of the lease, purchase, maintenance, modification, refurbishment,
		repair or sale of any Aircraft or otherwise in the ordinary course of the
		aircraft operating lease business;
	 

	 
		(iii) financing or refinancing the business
		activities described in clause (i) of this Section 5.02(e) through the
		offer, sale and issuance of any securities of the Issuer upon such terms and
		conditions as the Board sees fit, for cash or in payment or in partial payment
		for any property purchased or otherwise acquired by any Issuer Group
		Member;
	 

	 
		(iv) engaging in currency and interest rate
		exchange transactions for the purposes of avoiding, reducing, minimizing,
		hedging against or otherwise managing the risk of any loss, cost, expense or
		liability arising, or which may arise, directly or indirectly, from any change
		or changes in any interest rate or currency exchange rate or in the price or
		value of any of the Issuer’s or any Issuer Subsidiary’s property or
		assets, 
	 

	 
		 
	 

	 
		97
	 

	 
		 
	 

	 
	 

	 

	 
		within limits and with providers specified
		by the Board Resolution providing therefor from time to time and submitted to
		the Rating Agencies, the Policy Provider and the Initial Liquidity Facility
		Provider, including dealings, whether involving purchases, sales or otherwise,
		in foreign currency, spot and forward interest rate exchange contracts, forward
		interest rate agreements, caps, floors and collars, futures, options, hedges
		and any other currency, interest rate and other similar hedging arrangements
		and such other instruments as are similar to, or derivatives of, any of the
		foregoing; provided, that the Issuer shall not, and shall not permit any
		Issuer Subsidiary to, enter into any such hedging arrangements or other
		instruments that (A) are not entered into solely for hedging interest rate
		or currency risks associated with the Notes and/or the Leases or (B) are
		not U.S. dollar-denominated interest rate hedges, hedges, currency hedges,
		Swaptions, caps or floors (except in instances where the hedging instrument is
		entered into substantially to hedge risks associated with non-U.S.
		dollar-denominated Leases) without the prior written consent of the Policy
		Provider; provided
		further that the Issuer shall not, and shall not permit any
		Issuer Subsidiary to (unless with respect to any action permitted under Section
		5.02(g) and Section 5.02(j) with respect to disposition or transfer to another
		Issuer Group Member), (x) terminate or transfer (except as expressly
		contemplated by the applicable Hedge Agreements) such hedging arrangements
		without the prior written consent of the Policy Provider and (y) enter
		into any Hedge Agreement after the Initial Closing Date without the prior
		written consent of the Policy Provider unless such Hedge Agreement contains the
		Material Hedge Agreement Terms that are no less favorable to the Issuer, any
		applicable Issuer Subsidiary and the Policy Provider than those contained in
		the Initial Hedge Agreements;
	 

	 
		(v) (A) establishing, promoting and
		aiding in promoting, constituting, forming or organizing companies, trusts,
		syndicates, partnerships or other entities of all kinds in any part of the
		world for the purposes set forth in clauses (i) through (iv) above;
		provided that written notification shall have been given to each
		Rating Agency, the Policy Provider and the Initial Liquidity Facility Provider
		that such company, trust, syndicate, partnership or other entity is set up in
		compliance with this Indenture, (B) acquiring, holding and disposing of
		shares, securities and other interests in any such company, trust, syndicate,
		partnership or other entity and (C) disposing of shares, securities and
		other interests in, or causing the dissolution of, any existing subsidiary;
		provided that any such disposition which results in the
		disposition of an Aircraft meets the requirements set forth in Section
		5.02(g);
	 

	 
		(vi) taking out, acquiring, surrendering and
		assigning policies of insurance and assurances with any insurance company or
		companies which the Issuer or any Issuer Subsidiary may think fit and to pay
		the premiums thereon; and
	 

	 
		(vii) engaging in the transactions
		contemplated by the Policy Provider Documents and the Initial Liquidity
		Facility.
	 

	 
		(f) Limitation on Indebtedness. The Issuer shall not, and shall not permit any Issuer
		Subsidiary to, incur, create, issue, assume, guarantee or otherwise become
		liable for or with respect to, or become responsible for, the payment of,
		contingently or otherwise, whether present or future (in any such case, to
		“Incur”), Indebtedness.
	 

	 
		Notwithstanding the foregoing, the Issuer
		and any Issuer Subsidiary may Incur each and all of the following:
	 

	 
		 
	 

	 
		98
	 

	 
		 
	 

	 
	 

	 

	 
		(i) Indebtedness in respect of any Initial
		Notes issued on the Initial Closing Date;
	 

	 
		(ii) Indebtedness in respect of any
		Refinancing Notes or other Indebtedness described in the proviso to Section
		5.02(c)(iii); provided that (A) such Refinancing Notes or other
		Indebtedness receive ratings from the Rating Agencies at the close of such
		Refinancing or repurchase equal to or higher than those of the subclass being
		refinanced (determined at the date of Incurrence), (B) taking into account
		such Refinancing or repurchase, a Rating Agency Confirmation is obtained prior
		to such Refinancing or repurchase with respect to each subclass of Notes
		Outstanding at such time, (C) the prior written consent of each of the
		Policy Provider and the Initial Liquidity Facility Provider has been obtained
		with respect to such Refinancing or other Indebtedness and (D) the net
		proceeds of any such Refinancing or the Indebtedness shall be applied only
		(x) to repay the Redemption Price plus the Refinancing Expenses of the
		subclass of Notes being so refinanced or repurchased and pay any Policy
		Premium, Policy Redemption Premium, Policy Expenses, Policy Drawings and Policy
		Provider Obligations, if any, due and unpaid to the Policy Provider,
		(y) to fund any Cash Collateral Account established for the related
		Refinancing Notes (up to the Required Amount therefor) and (z) for deposit
		into any Cash Collateral Account (including in connection with an increase in
		any Required Amount effected under this Indenture in connection with the
		issuance of such Refinancing Notes);
	 

	 
		(iii) Indebtedness in respect of guarantees
		by any Issuer Group Member that are in the ordinary course of the aircraft
		operating leasing business and that are in respect of the obligations of any
		Issuer Group Member;
	 

	 
		(iv) Indebtedness in respect of any
		Additional Notes the net proceeds of which are applied (A) to finance a
		Permitted Additional Aircraft Acquisition or to make Conversion Payments,
		(B) to fund any Cash Collateral Account established for such Additional
		Notes (up to the Required Amount therefor), (C) for deposit into any Cash
		Collateral Account (including in connection with an increase in any Required
		Amount effected under this Indenture in connection with the issuance of such
		Additional Notes) and (D) to fund expenses related thereto;
		provided that (w) a Rating Agency Confirmation is obtained
		prior to the Incurrence of such Indebtedness with respect to all of the Notes
		Outstanding at such time, (x) the net proceeds of such Indebtedness shall
		be applied only for the purposes specified above in this clause (iv),
		(y) the prior written consent of the Policy Provider (unless the Policy
		Non-Consent Event has occurred) and the Initial Liquidity Facility Provider
		(unless a Initial Liquidity Facility Non-Consent Event has occurred) is
		obtained prior to the Incurrence of such Indebtedness and (z) such
		Additional Notes will be cross-collateralized with all Secured Obligations by
		the Collateral under the Security Trust Agreement;
	 

	 
		(v) obligations to each Seller under each
		Acquisition Agreement and any related lease assignment and assumption
		agreements and obligations to Lessees and others under the documents related
		thereto, including any Indebtedness owed to any Lessee under any such agreement
		or the Lease with respect to maintenance contributions, redelivery condition
		adjustment payments or “Airworthiness Directive Sharing”;
	 

	 
		(vi) Indebtedness under any agreements
		between the Issuer or any Issuer Subsidiary and any other Issuer Group Members
		(each, an “Intercompany
		Loan”); 
	 

	 
		 
	 

	 
		99
	 

	 
		 
	 

	 
	 

	 

	 
		provided that the agreements or promissory notes evidencing such
		Indebtedness shall be pledged to the Security Trustee;
	 

	 
		(vii) Indebtedness of the Issuer under any
		Eligible Credit Facility, provided that a
		Rating Agency Confirmation and the prior written consent of each of the Policy
		Provider and the Initial Liquidity Facility Provider is obtained prior to
		entering into such new Eligible Credit Facility;
	 

	 
		(viii) Indebtedness of the Issuer under the
		Policy Provider Documents;
	 

	 
		(ix) Indebtedness required in connection
		with repossession or detention of or other enforcement action with respect to
		an Aircraft or any Engine;
	 

	 
		(x) Indebtedness in favor of the issuer of a
		surety, letter of credit or similar instrument to be obtained by the Issuer or
		any Issuer Subsidiary in connection with the repossession or detention of an
		Aircraft or other enforcement action under a Lease; and
	 

	 
		(xi) Obligations (including without
		limitation, payments relating to the purchase price and any security deposits,
		maintenance reserves, and indemnity obligations) to any purchaser of Aircraft
		pursuant to any Aircraft Agreement (including leases or subleases). 
	 

	 
		(g) Limitation on Aircraft Dispositions. The Issuer shall not, and shall not permit any Issuer
		Subsidiary to, sell, transfer or otherwise dispose of any Aircraft or any
		interest therein other than as provided in Section 4(e) of
		Schedule 2.02(a) of the Servicing Agreement.
	 

	 
		Notwithstanding the foregoing, the Issuer
		and any Issuer Subsidiary shall only be permitted to sell, transfer or
		otherwise dispose of, directly or indirectly:
	 

	 
		(i) any Engine or Part purchased on the date
		such Aircraft is acquired or any Engine or Part in connection with the
		replacement or exchange of such Engine or Part in accordance with a Lease or
		any Part that the Servicer has determined is surplus to the Issuer Group’s
		operations or is obsolete, or
	 

	 
		(ii) one or more Aircraft or an interest
		therein:
	 

	 
		(A) with respect to any Substitute Aircraft
		or Additional Aircraft, on the Closing Date therefor as agreed to by the Policy
		Provider,
	 

	 
		(B) within or among the Issuer and the
		Issuer Subsidiaries without limitation and among the Issuer and/or any Issuer
		Subsidiary and any other Issuer Group Member; provided that no
		such sale, transfer or other disposition shall be made unless the Issuer or the
		Administrative Agent has determined that such sale, transfer or other
		disposition would not materially adversely affect the Holders or the Policy
		Provider,
	 

	 
		(C) pursuant to any Aircraft Agreement
		(including any entered into with holders of the Class A Shares or their
		Affiliates), provided that such sale (a) must be for cash only, (b) does not
		result in a Concentration Default, (c) the Net Sale Proceeds thereof are not
		less than the Note Target Price with respect to such Aircraft; (d) such
		Aircraft Agreement is not with any Affiliate of BBAM unless 
	 

	 
		 
	 

	 
		100
	 

	 
		 
	 

	 
	 

	 

	 
		an Independent Representative (as defined in
		the Servicing Agreement) has been appointed to represent the relevant Issuer
		Group Member in connection with such sale or BBAM is no longer the Servicer;
		and (e) not more than ten Aircraft (or, if less than 47 Aircraft are Delivered
		by the Delivery Expiry Date, 20% of the Initial Aircraft that have been
		Delivered) may be sold (including by way of Purchase Option), transferred or
		otherwise disposed of without the prior written consent of the Policy Provider;
		provided, however,
		that with respect to any Aircraft for
		which 25 years or more have elapsed since the date of manufacture or delivery,
		the limit of ten aircraft shall not apply for purposes of this subclause
		(e),
	 

	 
		(D) pursuant to receipt of insurance,
		requisition or condemnation proceeds in connection with a Total Loss,
	 

	 
		(E) pursuant to an Aircraft Agreement
		(including pursuant to a Purchase Option) the Net Sale Proceeds of which is
		less than the Note Target Price, provided that
		(a) such sales must be for cash only; (b) in any one calendar year such
		sales do not exceed 10% of the then Assumed Portfolio Value, (c) a Rating
		Agency Confirmation from Moody’s alone is obtained or each such sale does
		not result in a Concentration Default; (c) prior written notice has been
		provided to Standard & Poor’s and Fitch and (d) the prior written
		consent of the Policy Provider shall have been obtained, or
	 

	 
		(F) in connection with a transfer of title
		or another interest in an Aircraft (1) to or in favor of a trust or entity
		that is not an Issuer Subsidiary for the purposes of registering the Aircraft
		under the laws of an applicable jurisdiction, or for tax or other regulatory
		purposes, where the Issuer or an Issuer Subsidiary retains the beneficial and
		economic ownership of the Aircraft or (2) from such trust or entity to the
		Issuer or an Issuer Subsidiary.
	 

	 
		Notwithstanding the foregoing, no sale,
		transfer or other disposition of any Aircraft contributed by the holders of the
		Class A Shares shall be permitted if a Default or an Event of Default
		would arise after giving effect to such sale, transfer or other
		disposition.
	 

	 
		(h) Limitation on Aircraft Acquisitions. The Issuer shall not, and shall not permit any Issuer
		Subsidiary to, purchase or otherwise acquire, directly or indirectly, any
		Aircraft other than the Initial Aircraft or any interest therein.
	 

	 
		Notwithstanding the foregoing, the Issuer
		may, and may permit any Issuer Subsidiary to (A) purchase or acquire,
		directly or indirectly, Additional Aircraft from time to time (a
		“Permitted Additional Aircraft
		Acquisition”); provided that,
		(i) no Event of Default shall have occurred and be continuing,
		(ii) the acquisition does not result in a Concentration Default,
		(iii) in the case of any Additional Aircraft acquired by means of the
		issuance of Additional Notes, the prior written consent of each of the Policy
		Provider and the Initial Liquidity Facility Provider has been obtained and a
		Rating Agency Confirmation has been received, and (B) purchase or
		otherwise acquire, directly or indirectly, (x) Remaining Aircraft pursuant
		to the Asset Purchase Agreement or (y) Substitute Aircraft,
		provided that, with respect to Substitute Aircraft, each of a
		Rating Agency Confirmation and the prior written consent of the Policy Provider
		has been received, except that that the consent of the Policy Provider shall
		not be required for such substitution if (i) such Substitute Aircraft is
		not a cargo or regional jet aircraft or, if such Substitute Aircraft is a cargo
		or regional jet aircraft, such Substitute Aircraft is being substituted 
	 

	 
		 
	 

	 
		101
	 

	 
		 
	 

	 
	 

	 

	 
		for an Aircraft of the same category and
		(ii) the Rating Agencies have confirmed that such substitution will not
		result in an adverse change to the Policy Provider’s capital charge
		associated with the Class G-1 Notes or the ratings assigned to the Class G-1
		Notes by each Rating Agency (as determined without regard to the Policy), and
		(C) acquire, by way of a contribution from the holders of the Class A
		Shares, any Additional Aircraft. All Additional Aircraft shall hold or are
		capable of holding a noise reduction certificate issued under Chapter 3 of
		Volume I, Part II of annex 16 of the Chicago Convention or comply
		with the Stage 3 noise levels set out in Section 36.3 of Appendix C of
		Part 36 of the United States Federal Aviation Regulations (in each case
		without the use of noise reduction kits).
	 

	 
		(i) Limitation on Modification Payments and Capital
		Expenditures. The Issuer shall not, and
		shall not permit any Issuer Subsidiary to, make any capital expenditures for
		the purpose of effecting any optional improvement or modification of any
		Aircraft, including without limitation the optional conversion (an
		“Aircraft
		Conversion”) of any Aircraft from
		a passenger aircraft to a cargo or mixed use aircraft, or for the purpose of
		purchasing or otherwise acquiring any Engines or Parts outside of the ordinary
		course of business, excluding any capital expenditure made in the ordinary
		course of business in connection with a lease or sale of such Aircraft (each
		such non-excluded expenditure, a “Modification Payment”, and each Modification Payment in respect of an
		Aircraft Conversion, a “Conversion
		Payment”).
	 

	 
		Notwithstanding the foregoing, the Issuer
		may, and may permit any Issuer Subsidiary to (x) make Conversion Payments
		from any amounts on deposit in the Aircraft Conversion Account as a result of
		one or more Conversion Elections; provided that
		(i) the full amount of the cost of such Aircraft Conversion is on deposit in
		the Aircraft Conversion Account prior to any Conversion Payments for such
		Aircraft Conversion being made; (ii)(a) the Issuer has provided an information
		memorandum containing information and analysis with respect to the related
		Aircraft Conversion to the Policy Provider and the Rating Agencies, together
		with a certification by the Issuer that such Aircraft Conversion will not
		materially adversely affect the Holders or the Policy Provider, (b) the Issuer
		has provided written notification to the Initial Liquidity Facility Provider at
		least five Business Days prior to making a Conversion Election, and (c) with
		respect to any narrowbody aircraft, if the estimated aggregate Conversion
		Payments with respect to any Aircraft Conversion is expected to exceed
		$6,000,000 or with respect to any widebody aircraft if the estimated aggregate
		Conversion Payments with respect to any Aircraft Conversion is expected to
		exceed $10,000,000, in each case as determined by a quote from the maintenance
		facility where such Aircraft Conversion is to take place, the prior written
		consent of the Policy Provider and a Rating Agency Confirmation has been
		obtained with respect to any such Aircraft Conversion; (iii) the Aircraft
		Conversion will not result in a Concentration Default; (iv) without derogation
		of the limits set forth in clause (c) above, not more than four Aircraft
		Conversions (or, if less than 47 Aircraft are Delivered by the Delivery Expiry
		Date, 10% of the Initial Aircraft that have been Delivered) in the aggregate
		with respect to any narrowbody aircraft and one Aircraft Conversion with
		respect to widebody aircraft for all of the Issuer Group Members may be made
		without obtaining a Rating Agency Confirmation and the prior written consent of
		the Policy Provider; (v) after the fifth anniversary of the Initial Closing
		Date, or in the event that a Default Notice has been issued, an Acceleration
		Default has occurred or a DSCR Failure has occurred, no Aircraft Conversions
		may be made (which begin after the fifth anniversary of the Initial Closing
		Date or the occurrence of a DSCR Failure) without obtaining a Rating Agency
		Confirmation and the prior written consent of the Policy Provider; and (vi) a
		scheduled conversion slot has been obtained by the relevant Issuer Group Member
		and (y) make Modification Payments (other than Conversion Payments) the
		aggregate net cash cost of all of which Modification Payments made by the
		Issuer Group, taken as a whole, pursuant to this Section 5.02(i) after the
		after the Initial Closing Date, including such Modification Payment, shall not
		exceed (as of the date of such Modification Payment) 5% of the aggregate
		initial Average Base Value of all Aircraft in the Portfolio; provided,
		however, that, if such Modification Payment shall be financed
		through capital contributions from the holders of the Class A Shares, the
		foregoing restrictions shall not apply. For the avoidance of 
	 

	 
		 
	 

	 
		102
	 

	 
		 
	 

	 
	 

	 

	 
		doubt, but subject to the foregoing, any
		Modification Payments permitted to be made without the express prior written
		approval of the Issuer under Section 7.04 of the Servicing Agreement shall be
		expressly permitted under this Indenture, provided that
		the references therein to modifications permitted in the then current
		“Approved Budget” shall not be deemed to permit thereunder any
		Modification Payments that are not permitted under this section.
	 

	 
		(j) Limitation on Consolidation, Merger and Transfer of
		Assets. The Issuer shall not, and shall
		not permit any Issuer Subsidiary to, consolidate with, amalgamate, merge with
		or into, or sell, convey, transfer, lease or otherwise dispose of its property
		and assets (as an entirety or substantially an entirety in one transaction or
		in a series of related transactions) to, any other Person, or permit any other
		Person to consolidate with, amalgamate or merge with or into the Issuer or any
		Issuer Subsidiary, unless:
	 

	 
		(i) the resulting entity is a special
		purpose entity, the charter of which is substantially similar to the charter
		documents of the Issuer or the equivalent charter document of such Issuer
		Subsidiary, as the case may be, and, after such consolidation, amalgamation,
		merger, sale, conveyance, transfer, lease or other disposition
		(A) payments from such resulting entity to the Holders do not give rise to
		any withholding tax payments less favorable to the Holders than the amount of
		any withholding tax payments which would have been required had such event not
		occurred and (B) such entity is not subject to taxation in the United
		States as a corporation or an association or a publicly traded partnership
		taxable as a corporation,
	 

	 
		(ii) in the case of any consolidation,
		amalgamation, merger or transfer by the Issuer, the surviving successor or
		transferee entity shall expressly assume all of the obligations of the Issuer
		under this Indenture, the Notes and each other Related Document to which the
		Issuer is then a party (with, in the case of a transfer only, the Issuer
		thereupon being released) and in the case of any consolidation, amalgamation,
		merger or transfer by any other Issuer Group Member, the surviving successor or
		transferee entity shall expressly assume all of the obligations of such Issuer
		Group Member under each Related Document to which it is then a party (with, in
		the case of a transfer only, the Issuer Group Member thereupon being
		released),
	 

	 
		(iii) each of a Rating Agency Confirmation
		and the prior written consent of each of the Policy Provider (unless the Policy
		Non-Consent Event has occurred) and the Initial Liquidity Facility Provider
		(unless the Initial Liquidity Facility Non-Consent Event has occurred) is
		obtained with respect to such merger, sale, conveyance, transfer, lease or
		disposition,
	 

	 
		(iv) immediately after giving effect to such
		transaction, no Event of Default shall have occurred and be continuing,
		and
	 

	 
		(v) the Issuer delivers to the Trustee an
		Officer’s Certificate and an Opinion of Counsel, in each case stating that
		such consolidation, amalgamation, merger or transfer and such supplemental
		indenture comply with the above criteria and, if applicable, Section 5.02(g)
		and that all conditions precedent provided for herein relating to such
		transaction have been complied with;
	 

	 
		provided that this covenant shall not apply to any such
		consolidation, amalgamation, merger, sale, conveyance, transfer, lease or
		disposition (a) within and among the Issuer Group if the Administrative
		Agent or the Issuer shall have determined that such consolidation,
		amalgamation, merger, sale, 
	 

	 
		 
	 

	 
		103
	 

	 
		 
	 

	 
	 

	 

	 
		conveyance, transfer, lease or disposition,
		as the case may be, (x) would not materially adversely affect the Holders
		or the Policy Provider, and (y) is otherwise consistent with
		Sections 5.02(p) and (q), (b) complying with the terms of Section
		5.02(g) hereof or (c) effected as part of a single transaction providing
		for the redemption or defeasance of Notes in accordance with Section 3.11 or
		Article XI, respectively.
	 

	 
		(k) Limitation on Transactions with
		Affiliates. The Issuer shall not, and
		shall not permit any Issuer Subsidiary, directly or indirectly, to enter into,
		renew or extend any transaction (including, without limitation, the purchase,
		sale, lease or exchange of property or assets, or the rendering of any service)
		with any Affiliate of the Issuer or any Issuer Subsidiary, except upon fair and
		reasonable terms no less favorable to the Issuer or such Issuer Subsidiary than
		could be obtained, at the time of such transaction or at the time of the
		execution of the agreement providing therefor, in a comparable
		arm’s-length transaction with a Person that is not such an Affiliate and
		pursuant to enforceable agreements.
	 

	 
		The foregoing limitation does not limit, and
		shall not apply to: (i) any transaction in connection with the
		establishment of the Issuer Group, its acquisition of the Initial Aircraft or
		pursuant to the terms of the Related Documents; (ii) any transaction
		permitted hereunder within and among the Issuer or any Issuer Subsidiary and
		any other Issuer Group Member; (iii) the payment of reasonable and
		customary fees to, and the provision of reasonable and customary liability
		insurance in respect of the Directors; (iv) any payments on or with
		respect to the Notes or Shares in accordance with this Indenture; (v) any
		Contribution Amounts or contributions in the form of Additional Aircraft made
		by the holders of the Class A Shares and (vi) any capital
		contribution to any Issuer Group Member.
	 

	 
		(l) Limitation on the Issuance, Transfer and Sale of
		Ownership Interests. The Issuer shall
		not (i) issue, deliver or sell any shares, interests, participations or
		other equivalents in equity (however designated, whether voting or non-voting),
		including, without limitation, all ordinary shares of the Issuer (other than
		the issuance of shares, beneficial interests, participations or other
		equivalents existing on the Initial Closing Date), or (ii) sell, or permit
		any Issuer Subsidiary, directly or indirectly, to issue, deliver or sell, any
		shares, beneficial interests, participations or other equivalents in equity
		(however designated, whether voting or non-voting, other than such shares,
		interests, participations or other equivalents existing on the Initial Closing
		Date), except (A) the issuance, sale, delivery, transfer or pledge of
		Ownership Interest in any Issuer Group Member to or for the benefit of any
		other Issuer Group Member, (B) issuances or sales of any Additional Notes
		the proceeds of which are applied to finance a Permitted Additional Aircraft
		Acquisition or make Conversion Payments, as the case may be, provided that
		(x) a Rating Agency Confirmation is obtained prior to such issuance with
		respect to all of the Notes Outstanding at such time and the prior written
		consent of the Policy Provider is obtained in connection therewith,
		(y) the net proceeds of such issuance shall be used only to finance such
		Permitted Additional Aircraft Acquisition and/or the purpose to which the
		proceeds of Additional Notes may be applied in accordance with the provisions
		of Section 2.11 hereof and such issuance otherwise complies with Section 2.11
		and (z) the issuance, delivery and sale of such Additional Notes takes
		place only as permitted by the organizational documents, (C) subject to
		the overall limitation thereon in clause (ii)(F)(1) of Section 5.02(g),
		issuances or sales of Ownership Interests of foreign Issuer Subsidiaries to
		nationals in the jurisdiction of incorporation or organization of such Issuer
		Subsidiary, as the case may be, to the extent required by applicable law or
		necessary in the determination of the Board to avoid adverse tax consequences
		or to facilitate the registration or leasing of Aircraft, (D) the pledge
		of the Pledged Shares, Pledged Membership Interests and Pledged Beneficial
		Interests pursuant to the Security Documents, (E) the issuance, sale,
		delivery, transfer or pledge of any Ownership Interests of an Issuer Subsidiary
		in order to effect the sale of all Aircraft owned by such Issuer Subsidiary in
		compliance with Section 5.02(g) 
	 

	 
		 
	 

	 
		104
	 

	 
		 
	 

	 
	 

	 

	 
		hereof, (F) the issuance of Additional
		Notes to the Holders to the extent such Holder provides funds to the Issuer
		with which to effect a Redemption or discharge the Notes upon their
		Acceleration, (G) the issuance, sale, delivery, transfer or pledge of the
		Class A Shares or the Class B Shares and (H) in connection with
		any sale, conveyance, transfer or other disposition permitted under Section
		5.02(j).
	 

	 
		(m) Bankruptcy and Insolvency; Corporate
		Governance. The Issuer (i) shall
		promptly provide the Trustee, the Policy Provider, the Initial Liquidity
		Facility Provider and the Rating Agencies with Written Notice of the
		institution of any proceeding by or against the Issuer or any Issuer
		Subsidiary, as the case may be, seeking to adjudicate any of them bankrupt or
		insolvent, or seeking liquidation, Irish law examinership, winding up,
		reorganization, arrangement, adjustment, protection, relief or composition of
		their debts under any law relating to bankruptcy, insolvency or reorganization,
		Irish law examinership or relief of debtors, or seeking the entry of an order
		for relief or the appointment of a receiver, trustee, Irish law examiner or
		other similar official for either all or for any substantial part of its
		property; (ii) shall not take any action to waive, repeal, amend, vary,
		supplement or otherwise modify its constitutional documents (including trust
		documents), or those of any Issuer Subsidiary in a manner that would adversely
		affect the rights, privileges or preferences of any Holder of the Notes or the
		Policy Provider, as determined by the Board, and (iii) shall not, without
		an affirmative unanimous written resolution of the Board and the consent of the
		Policy Provider (if materially affected thereby), take any action to waive,
		repeal, amend, vary, supplement or otherwise modify the provisions of its
		constitutional documents or those of any Issuer Subsidiary and shall not permit
		any Issuer Subsidiary to take any such action without an affirmative unanimous
		written resolution of the board of directors of such Issuer Subsidiary. The
		Issuer shall have at least two Independent Directors.
	 

	 
		(n) Payment of Principal, Redemption Premium, if any, and
		Interest. The Issuer shall duly and
		punctually pay or provide for payment of the principal, premium, if any,
		interest on the Notes in accordance with the terms of this Indenture and the
		Notes.
	 

	 
		(o) Limitation on Employees. The Issuer shall not, and shall not permit any Issuer
		Subsidiary to, employ or maintain any employees other than as required by any
		provisions of local law; provided that
		trustees and directors shall not be deemed to be employees for purposes of this
		Section 5.02.
	 

	 
		(p) Compliance and Agreement. The Issuer shall comply, and shall cause each Issuer
		Subsidiary to comply, with the provisions of the Related Documents. The Issuer
		shall ensure that title to each Aircraft shall be held in a separate special
		purpose bankruptcy remote entity (including a trust) (but not the Issuer) whose
		constitutional documents contain restrictions similar to the restrictions
		(including, but not limited to, the provisions regarding limited purpose,
		maintaining separateness from other entities and bankruptcy remoteness)
		contained in the constitutional documents of the Issuer Subsidiaries existing
		on the Initial Closing Date. The constitutional documents of the Issuer
		Subsidiaries shall contain provisions requiring the Issuer Subsidiaries to
		comply with the provisions of the Related Documents and any amendment to such
		provision shall be subject to the prior written consent of the Policy
		Provider.
	 

	 
		(q) Maintenance of Separate Existence. Except to the extent provided in this Indenture or the
		other Related Documents, the Issuer shall, and shall cause each Issuer
		Subsidiary to, maintain certain policies and procedures relating to its
		existence as a separate corporation, company or other legal entity as
		follows:
	 

	 
		 
	 

	 
		105
	 

	 
		 
	 

	 
	 

	 

	 
		(i) the Issuer acknowledges its receipt of a
		copy of that certain opinion letter issued by Conyers Dill & Pearman, dated
		as of the Initial Closing Date addressed to, among others, the Policy Provider,
		the Initial Liquidity Facility Provider and the Rating Agencies and addressing
		the issue of substantive consolidation as it may relate to the Issuer, on the
		one hand, and the Servicer or the Administrative Agent, on the other hand. The
		Issuer hereby agrees to maintain, and to cause each Issuer Subsidiary to
		maintain, in place all policies and procedures, and take and continue to take
		all actions, relating to the Issuer or such Issuer Subsidiaries, as applicable;
		provided, however, that
		the Issuer or any such Issuer Subsidiary may cease to maintain any policy or
		procedure if and to the extent that the Issuer or such Issuer Subsidiary
		delivers to the Trustee, the Initial Liquidity Facility Provider and the Policy
		Provider an Opinion of Counsel reasonably acceptable to the Initial Liquidity
		Facility Provider and the Policy Provider providing that such policy or
		procedure is no longer necessary, due to a change in law or otherwise, for the
		rendering of such earlier opinion relating to the issue of substantive
		consolidation and a Rating Agency Confirmation is obtained with respect to
		ceasing to maintain such policy or procedure.
	 

	 
		(ii) the Issuer shall, and shall cause each
		Issuer Subsidiary to:
	 

	 
		(A) maintain its own books and records and
		bank accounts separate from those of the Servicer, the Administrative Agent and
		any other Person except as otherwise contemplated by the constitutional
		documents of the Issuer Group Members or the Related Documents;
	 

	 
		(B) maintain its assets in such a manner
		that it is not difficult to segregate, identify or ascertain such
		assets;
	 

	 
		(C) except with respect to any Issuer Group
		Member that is a grantor trust, have a board of directors separate from that of
		the Servicer, the Administrative Agent and any other Person; provided that
		the individuals serving as directors of each board of directors may be the same
		individuals on each board of directors;
	 

	 
		(D) except with respect to any Issuer Group
		Member that is a grantor trust, cause its board of directors to meet at least
		quarterly and keep minutes of such meetings and actions and observe all other
		corporate and other legal formalities;
	 

	 
		(E) hold itself out to creditors and the
		public as a legal entity separate and distinct from the Servicer, the
		Administrative Agent and any other Person;
	 

	 
		(F) except as expressly set forth herein,
		prepare separate financial statements and separate tax returns, and if separate
		returns for the Issuer and the Administrative Agent are required under
		applicable tax law, or if part of a consolidated group, then it will be shown
		as a separate member of such group, and pay any taxes required to be paid under
		applicable tax law;
	 

	 
		(G) allocate and charge fairly and
		reasonably any common overhead shared with Affiliates;
	 

	 
		 
	 

	 
		106
	 

	 
		 
	 

	 
	 

	 

	 
		(H) conduct business in its own name, use
		separate invoices, stationery and checks and strictly comply with all
		organizational formalities to maintain its separate existence;
	 

	 
		(I) not commingle its assets or funds with
		those of any other Person (including the Servicer or the Administrative
		Agent);
	 

	 
		(J) not hold out its credit or assets as
		being available to satisfy the obligations of others;
	 

	 
		(K) not assume, guarantee or pay the debts
		or obligations of any other Person or otherwise pledge its assets for the
		benefit of any other Person;
	 

	 
		(L) correct any known misunderstanding
		regarding its separate identity;
	 

	 
		(M) other than as expressly contemplated by
		this Indenture, pay its own liabilities only out of its own funds;
	 

	 
		(N) maintain adequate capital in light of
		its contemplated business purpose, transactions and liabilities;
	 

	 
		(O) not acquire the securities of the
		Servicer or the Administrative Agent; 
	 

	 
		(P) cause its Board and any officers,
		managers, agents and other representatives of the Issuer or such Issuer
		Subsidiary, as applicable, to act at all times with respect to the Issuer or
		such Issuer Subsidiary, as the case may be, consistently and in furtherance of
		the foregoing and in compliance with Applicable Law; and
	 

	 
		(Q) transact all business with Affiliates on
		an arm’s length basis and pursuant to enforceable agreements.
	 

	 
		(iii) Subject to requirements of applicable
		Bermuda law, the Company shall do all things necessary to maintain itself in
		existence as an “exempted company” under the laws of Bermuda.
	 

	 
		(r) Independent Director. The Issuer shall cause each of its Subsidiaries
		(except any trust of which the Issuer or a Subsidiary is the holder of the
		beneficial interest) to have at least one Independent Director, who may be an
		Independent Director serving on the board of directors of the Issuer or any
		other of its Subsidiaries.
	 

	 
		Section 5.03 Operating Covenants. The Issuer covenants with the parties as
		follows:
	 

	 
		(a) Concentration Limits. Without prior written notification to Standard &
		Poor’s and Fitch, receipt of a Rating Agency Confirmation from
		Moody’s alone and the prior written consent of the Policy Provider, the
		Issuer shall not permit any Issuer Subsidiary to lease or re-lease any Aircraft
		if entering into such proposed Lease would cause the Portfolio (including after
		giving effect to the acquisition of any Substitute Aircraft) to exceed any of
		the Concentration Limits set forth in Exhibit B hereto (excluding from
		such limits renewals or extensions of a Lease to an existing Lessee under a
		Lease entered into in compliance with the Concentration Limits and as 
	 

	 
		 
	 

	 
		107
	 

	 
		 
	 

	 
	 

	 

	 
		such limits may be adjusted or changed by
		the Issuer from time to time, subject to a Rating Agency Confirmation from
		Moody’s alone, the delivery of prior written notice to Standard &
		Poor’s and Fitch and the prior written consent of the Policy Provider, the
		“Concentration
		Limits”); provided that
		the Issuer or any Issuer Subsidiary shall be entitled to renew or extend any
		Lease to the existing Lessee thereunder irrespective of the effect of such
		renewal or extension on the Concentration Limits (and if the Concentration
		Limits absent such exception would be exceeded as a result of any such renewal
		or extension, the Issuer shall give written notification thereof to the Rating
		Agencies and the Policy Provider); and provided that,
		unless otherwise elected by the Administrative Agent, the Concentration Limits
		shall be determined without giving effect to any Aircraft contributed (by way
		of Equity Contributions) to the Issuer Group. The Issuer shall not permit any
		Issuer Group Member to (i) lease (including any renewal or extension of
		any existing Lease) any Aircraft to any Lessee habitually based or domiciled in
		any of the jurisdictions set forth as “Prohibited” in the last
		section of the Concentration Limits as set forth on Exhibit B hereto as
		amended from time to time upon the receipt of a Rating Agency Confirmation from
		Moody’s alone, the delivery of prior written notice to Standard &
		Poor’s and Fitch and the prior written consent of the Policy Provider
		(each such jurisdiction, a “Prohibited Country”), (ii) enter into any Lease (including any
		renewal or extension of any existing Lease) that expressly permits the Lessee
		to sublease an Aircraft to a sublessee habitually based or domiciled in a
		Prohibited Country, or (iii) consent to a sublease of an Aircraft to a
		sublessee habitually based or domiciled in a Prohibited Country.
	 

	 
		(b) Compliance with Law, Maintenance of
		Permits. The Issuer shall
		(i) comply, and cause each Issuer Subsidiary to comply, in all material
		respects with all Applicable Laws (including environmental laws, rules,
		regulations and orders of Bermuda), (ii) obtain, and cause each Issuer
		Subsidiary to obtain, all material governmental (including regulatory)
		registrations, certificates, licenses, permits and authorizations required for
		the use and operation of the Aircraft owned by it, including, without
		limitation, a current certificate of airworthiness for each such Aircraft
		(issued by the Applicable Aviation Authority and in the appropriate category
		for the nature of the operations of such Aircraft), except that (A) no
		certificate of airworthiness shall be required for any Aircraft (x) during
		any period when such Aircraft is undergoing maintenance, modification or
		repair, or (y) following the withdrawal or suspension by such Applicable
		Aviation Authority of certificates of airworthiness in respect of all aircraft
		of the same model or period of manufacture as such Aircraft (in which case the
		Issuer shall comply, and cause each Issuer Subsidiary to comply, with all
		directions of such Applicable Aviation Authority in connection with such
		withdrawal or suspension), (B) no registrations, certificates, licenses,
		permits or authorizations required for the use or operation of any Aircraft
		need be obtained with respect to any period when such Aircraft is not being
		operated and (C) no such registrations, certificates, licenses, permits or
		authorizations shall be required to be maintained for any Aircraft that is not
		the subject of a Lease, except to the extent required under Applicable Laws,
		(iii) not cause or knowingly permit, directly or indirectly, through any
		Issuer Subsidiary, any Lessee to operate any Aircraft under any Lease in any
		material respect contrary to any Applicable Law and (iv) not knowingly
		permit, directly or indirectly, through any Issuer Subsidiary, any Lessee not
		to obtain all material governmental (including regulatory) registrations,
		certificates, licenses, permits and authorizations required for such
		Lessee’s use and operation of any Aircraft under any operating Lease
		except as provided, mutatis
		mutandis, in clauses (ii)(A) and (ii)(B) above.
	 

	 
		Notwithstanding the foregoing, no breach of
		this Section 5.03(b) shall be deemed to have occurred by virtue of any act or
		omission of a Lessee or sub-lessee, or of any Person which has possession of
		the Aircraft or any Engine for the purpose of repairs, maintenance,
		modification or storage, or by virtue of any requisition, seizure, or
		confiscation of the Aircraft (other than seizure or confiscation arising from a
		breach by the Issuer or an Issuer Subsidiary of this Section 5.03(b)) (each, a
		“Third Party Event”); 
	 

	 
		 
	 

	 
		108
	 

	 
		 
	 

	 
	 

	 

	 
		provided that (i) neither the Issuer nor any Issuer
		Subsidiary consents or has consented to such Third Party Event; and
		(ii) the Issuer or Issuer Subsidiary which is the lessor or owner of such
		Aircraft promptly and diligently takes such actions as a leading international
		aircraft operating lessor would customarily take in respect of such Third Party
		Event, including, as deemed appropriate (taking into account, inter alia, the
		laws of the jurisdictions in which the Aircraft are located), seeking to compel
		such Lessee or other relevant Person to remedy such Third Party Event or
		seeking to repossess the relevant Aircraft or Engine.
	 

	 
		(c) Maintenance of Assets. The Issuer shall (i) with respect to each
		Aircraft and Engine that is subject to a Lease, cause, directly or indirectly,
		through any Issuer Subsidiary, such Aircraft and Engine to be maintained in a
		state of repair and condition substantially consistent with the customary
		commercial practice of any leading international aircraft operating lessor with
		respect to similar aircraft under lease, taking into consideration, among other
		things, the identity of the relevant Lessee (including operating experience
		thereof), the age and condition of the Aircraft and the jurisdiction in which
		such Aircraft will be operated or registered under such Lease and
		(ii) with respect to each Aircraft that is not subject to a Lease,
		maintain, and cause each Issuer Subsidiary to maintain, such Aircraft in a
		state of repair and condition substantially consistent with the customary
		commercial practice of any leading international aircraft operating lessor with
		respect to aircraft not under lease. Notwithstanding the foregoing, no breach
		of this Section 5.03(c) shall be deemed to have occurred by virtue of any Third
		Party Event; provided that (i) neither the Issuer nor any Issuer
		Subsidiary consents or has consented to such Third Party Event; and
		(ii) the Issuer or such Issuer Subsidiary which is the lessor or owner of
		such Aircraft promptly and diligently takes such customary actions as any
		leading international aircraft operating lessor would take in respect of such
		Third Party Event, including as deemed appropriate, seeking to compel such
		Lessee or other relevant Person to remedy such Third Party Event or seeking to
		repossess the relevant Aircraft or Engine.
	 

	 
		(d) Notification of Trustee, Policy Provider, Initial
		Liquidity Facility Provider and Cash Manager. The Issuer shall notify the Trustee, the Policy
		Provider, the Cash Manager and the Initial Liquidity Facility Provider in
		writing as soon as the Issuer or any Issuer Subsidiary becomes aware of any
		loss, theft, confiscation, requisition, damage or destruction to any Initial
		Aircraft, Additional Aircraft or Engine if the potential cost of repair or
		replacement of such asset (without regard to any insurance claim related
		thereto) may exceed the greater of $2,000,000 and the damage notification
		threshold contained in the applicable Lease.
	 

	 
		(e) Leases.
		(i) The Issuer shall adopt and shall cause the Servicer to utilize the pro
		forma lease in the form provided to the Issuer on the Initial Closing Date as
		such pro forma lease agreement or agreements may be revised for purposes of the
		Issuer Group specifically or generally from time to time by the Servicer (the
		“Servicer’s Pro Forma
		Lease” in a manner consistent with
		the Servicer’s “Standard of Care” and the Servicer’s
		“Conflicts Standard” (as each term is defined in the Servicing
		Agreement”), for use by the Servicer on behalf of the Issuer or any Issuer
		Subsidiary as a starting point in the negotiation of Future Leases with Persons
		who are not Issuer Group Members; provided,
		however, that with respect to any Future Lease entered into in
		connection with (x) the renewal or extension of an Initial Lease,
		(y) the leasing of an Aircraft to a Person that is or was a Lessee under
		an Initial Lease or (z) the leasing of an Aircraft to a Person that is or
		was the lessee under an operating lease of an aircraft that is being managed or
		serviced by the Servicer (such Future Lease, a “Renewal Lease”), a form of lease substantially similar to such
		Initial Lease or operating lease (a “Precedent Lease”), as the case may be, may be used by the Servicer
		in lieu of the Servicer’s Pro Forma Lease on behalf of the Issuer or any
		Issuer Subsidiary as a starting point in the negotiation of such Future Lease
		with Persons who are not Issuer Group Members; and provided
		further, however, that if
		the Board determines, in an 
	 

	 
		 
	 

	 
		109
	 

	 
		 
	 

	 
	 

	 

	 
		annual review of the Servicer’s Pro
		Forma Lease on or before each anniversary of the relevant Closing Date, that
		any revision to the Servicer’s Pro Forma Lease made from time to time
		since the preceding review by the Board (or, with respect to the first
		anniversary of the Initial Closing Date, since the Initial Closing Date) is
		substantially inconsistent with the core lease provisions of the Issuer set
		forth in Exhibit F to this Indenture (as such provisions may be amended
		from time to time, the “Core Lease
		Provisions”) in a manner and to
		such a degree as to have a material adverse effect on the Holders, taking into
		consideration, inter
		alia, such revision and any risk that
		the Aircraft might not be able to be leased on terms substantially consistent
		with the provisions of the Servicer’s Pro Forma Lease without such
		revisions, then the Board shall direct the Servicer not to include such
		revision in the Servicer’s Pro Forma Lease to be used thereafter as the
		starting point in the negotiation of any Future Lease with respect to the
		Aircraft. If the Board determines that any such revision to the Servicer’s
		Pro Forma Lease will not have a material adverse effect on the Holders, then
		the Board shall (i) amend the applicable Core Lease Provisions to
		incorporate such revision and (ii) notify the Rating Agencies and the
		Policy Provider of any Future Lease entered into the terms of which are
		materially less favorable from the point of view of the lessor than any of the
		Leases then in effect, including without limitation, such changes to the Core
		Lease Provisions; provided that
		the Core Lease Provisions may not be amended without the prior written consent
		of the Policy Provider. The Issuer shall not enter into, and shall not permit
		any Issuer Subsidiary to enter into, any Future Lease the rental payments under
		which are denominated in a currency other than U.S. dollars without a Rating
		Agency Confirmation, provided that
		the Issuer may enter any Future Lease the Rental Payments under which are
		denominated in euros if (a) the sum of the Assumed Base Values as of the
		Payment Date immediately preceding any date of determination of each Aircraft
		subject to leases the Rental Payments under which are denominated in euros does
		not exceed 5% of the sum of the Assumed Base Values as of such Payment Date of
		all Aircraft and (b) the currency exposure is hedged in accordance with
		the Issuer’s hedging policy.
	 

	 
		(f) Opinions. The
		Issuer shall not enter into, and shall not permit any Issuer Subsidiary to
		enter into, any Future Lease with any Person that is not an Issuer Group Member
		or change the jurisdiction of registration of any Aircraft that is subject to a
		Lease to a jurisdiction other than Ireland, the United States of America or
		Bermuda, unless, upon entering into such Future Lease or changing the
		jurisdiction of registration of such Aircraft (or within a commercially
		reasonable period thereafter), the Servicer obtains such legal opinions, if
		any, with regard to compliance with the registration requirements of the
		relevant jurisdiction, enforceability of the Future Lease, matters relating to
		the Cape Town Convention and such other matters customary for such transactions
		to the extent that receiving such legal opinions is substantially consistent
		under the circumstances with the customary practice of any leading
		international aircraft operating lessor.
	 

	 
		(g) Insurance. The
		Issuer shall maintain or cause, directly or indirectly through the Issuer
		Subsidiaries, to be maintained with reputable and responsible insurers,
		provided that the applicable reinsurance policy contains a
		cut-through clause requiring the reinsurers to pay the insured directly (other
		than in any instances where local law requirements mandate otherwise), with
		reputable and responsible insurers that maintain relevant reinsurance with
		reputable and responsible reinsurers (i) airline hull insurance for each
		Aircraft in an amount at least equal to the Note Target Price for such Aircraft
		(or the equivalent thereof from time to time if such insurance is denominated
		in a currency other than U.S. dollars that is freely convertible into U.S.
		dollars) and (ii) airline liability insurance for each Aircraft and
		occurrence in an amount at least equal to the relevant amount set forth on
		Exhibit C hereto for each model of aircraft and as amended from time to
		time only pursuant to the prior written consent of the Policy Provider and
		(iii) airline repossession insurance (“Repossession Insurance”) for each Aircraft registered in, habitually
		based in or subject to a Lease with a Lessee domiciled in, a jurisdiction set
		forth under the 
	 

	 
		 
	 

	 
		110
	 

	 
		 
	 

	 
	 

	 

	 
		“Repossession Guidelines” set
		forth in Exhibit B hereto, which may be amended from time to time only
		with a Rating Agency Confirmation and the prior written consent of the Policy
		Provider, in an amount at least equal to the Note Target Price (or the
		equivalent thereof from time to time if such insurance is denominated in a
		currency other than U.S. dollars that is freely convertible into U.S. dollars)
		for such Aircraft; provided that
		with respect to any such insurance for any Aircraft subject to a Lease, such
		insurance may be subject to such deductible and self-insurance arrangements as
		are substantially consistent with the customary practices of major aircraft
		operating lessors and taking into account, inter alia, the type of aircraft,
		the creditworthiness and experience of the Lessee. The coverage and terms
		(including endorsements, deductibles and self-insurance arrangements) of any
		insurance maintained with respect to any Aircraft not subject to a Lease shall
		be substantially consistent with the customary practices of major international
		aircraft operating lessors regarding similar aircraft.
	 

	 
		The Issuer shall cause, or shall cause the
		applicable Issuer Subsidiary to cause, each Lessee to be obligated under its
		respective Lease to maintain War Risk Coverage as part of the insurance
		requirements in such Lease. The Issuer shall cause, or shall cause the
		applicable Issuer Subsidiary to cause, each Lessee to maintain War Risk
		Coverage (as defined in Exhibit C hereto). In the event that a Lessee does not
		maintain such requisite level of War Risk Coverage or allows such War Risk
		Coverage to lapse, the Issuer shall cause the applicable Issuer Subsidiary
		lessor to immediately bring enforcement proceedings against the applicable
		Lessee under the terms of the applicable Lease to repossess the applicable
		Aircraft and use commercially reasonable efforts (substantially consistent with
		the customary practices of major international aircraft operating lessors) to
		ensure that such Aircraft does not operate without War Risk Coverage at such
		required levels; provided, however, that so long as the Issuer is in compliance
		with the requirements set forth in the next succeeding sentence and the
		applicable Lessee is not otherwise in default under the related Lease, the
		Issuer shall have 180 days to cause, or to cause the applicable Issuer
		Subsidiary lessor to cause, the Lessee to comply with the insurance
		requirements set forth herein and under the Lease prior to bringing any such
		enforcement proceedings; provided further, that if, for any reason, neither the
		Issuer nor the applicable Issuer Subsidiary lessor has a right under the
		applicable Lease to require a Lessee to maintain War Risk Coverage at the
		requisite levels, the Issuer shall nevertheless be obligated to cause such
		Lessee to maintain War Risk Coverage at the requisite levels described in
		Exhibit C hereto (by negotiating in good faith with such Lessee or otherwise),
		subject only to the additional time provided in the immediately preceding
		proviso if the Issuer is in compliance with requirements set forth in the next
		succeeding sentence and the applicable Lessee is not otherwise in default under
		the related Lease. The Issuer shall carry contingent and excess War Risk
		Coverage in accordance with the requirements set forth in Exhibit C
		hereto.
	 

	 
		The obligations set forth in the foregoing
		paragraph may only be waived upon receipt of the prior written consent of the
		Policy Provider.
	 

	 
		In determining the amount of insurance
		required to be maintained by this Section 5.03(g), the Issuer may take into
		account any indemnification from, or insurance provided by, any governmental,
		supranational or inter-governmental authority or agency (other than, with
		respect to Repossession Insurance, any governmental authority or agency of any
		jurisdiction for which Repossession Insurance must be obtained), the sovereign
		foreign currency debt rating of which is rated at least A-, or the equivalent,
		by at least one of the Rating Agencies (provided that
		such credit rating requirement shall not apply in the case of any war risk
		insurance maintained through any governmental, supranational or
		inter-governmental authority or agency), against any risk with respect to an
		Aircraft at least in an amount which, when added to the amount of insurance
		against 
	 

	 
		 
	 

	 
		111
	 

	 
		 
	 

	 
	 

	 

	 
		such risk maintained by the Issuer (or which
		the Issuer has caused to be maintained), shall be at least equal to the amount
		of insurance against such risk otherwise required by this Section 5.03(g)
		(taking into account self-insurance permitted by this Section 5.03(g)). Any
		such indemnification or insurance provided by such government shall provide
		substantially similar protection as the insurance required by this Section
		5.03(g). 
	 

	 
		The Issuer shall not be required to maintain
		(or to cause to be maintained) any insurance otherwise required hereunder to
		the extent that such insurance is not generally available in the relevant
		insurance market at commercially reasonable rates from time to time;
		provided that if, in any case, the Issuer determines that it
		shall not maintain insurance because it believes the applicable rates are not
		commercially reasonable, the Issuer shall provide written notification to the
		Rating Agencies and shall obtain the prior written consent of the Policy
		Provider before such decision is implemented and, if the Policy Provider does
		not consent, such insurance shall be procured.
	 

	 
		(h) Indemnity. The
		Issuer shall, and shall cause each Issuer Subsidiary to, include in each Lease
		between the Issuer or such Issuer Subsidiary and a Person who is not an Issuer
		Group Member an indemnity from such Person in respect of any losses or
		liabilities arising from the use or operation of the Aircraft during the term
		of such Lease, subject to such exceptions, limitations and qualifications as
		are substantially consistent with the customary practice of any leading
		international aircraft operating lessor.
	 

	 
		(i) Appraisal of Aircraft. Unless the Class G-1 Notes have been theretofore
		refinanced, the Issuer shall, on each anniversary of the Initial Closing Date
		occurring after the Expected Final Payment Date of the Class G-1 Notes, deliver
		to the Trustee, the Policy Provider and the Rating Agencies three appraisals of
		the Base Value of each of the Aircraft from each of the Appraisers or, if any
		of the Appraisers is unable to provide an appraisal, from the remaining
		Appraisers and such other independent appraiser that is a member of the
		International Society of Transport Aircraft Trading or any similar organization
		selected by the Issuer and approved by the Policy Provider (such approval not
		to be unreasonably delayed or withheld), each such appraisal to be dated within
		30 days prior to its delivery to the Trustee, the Policy Provider and the
		Rating Agencies.
	 

	 
		(j) Consents. Unless
		otherwise expressly permitted herein, the Issuer shall not grant its consent to
		a consent requested of the Issuer under Section 7.04 (a)(v), (vii) or (ix) of
		the Servicing Agreement without first obtaining the Policy Provider’s
		prior written consent thereto. The Issuer shall provide the Servicer with
		written notice of such Policy Provider consent upon its receipt thereof.
		
	 

	 
		Section 5.04 Compliance Through Agents. The Issuer shall be entitled to delegate the
		performance of any of its covenants hereunder to one or more Service Providers
		pursuant to one or more Related Documents entered into in accordance with the
		terms of this Indenture so long as each such Related Document is subject to the
		Lien of the Security Trust Agreement. Nothing in this Section 5.04 is intended
		to, or shall, relieve the Issuer from any liability or consequences hereunder
		arising from the failure of the Issuer or any such Service Provider to perform
		any such covenant strictly in accordance with the terms of this
		Indenture.
	 

	 
		ARTICLE VI
  
	 

	 
		THE TRUSTEE
	 

	 
		 
	 

	 
		112
	 

	 
		 
	 

	 
	 

	 

	 
		Section 6.01 Acceptance of Trusts and Duties. The duties and responsibilities of the Trustee shall
		be as provided by the TIA and as set forth herein. The Trustee accepts the
		trusts hereby created and applicable to it and agrees to perform the same but
		only upon the terms of this Indenture and the TIA and agrees to receive and
		disburse all moneys received by it in accordance with the terms hereof. The
		Trustee in its individual capacity shall not be answerable or accountable under
		any circumstances, except for its own willful misconduct or negligence or
		breach of any of its representations or warranties set forth herein and the
		Trustee shall not be liable for any action or inaction of the Issuer or any
		other parties to any of the Related Documents. The fees and out-of-pocket
		expenses of the Trustee shall be Expenses of the Issuer.
	 

	 
		Section 6.02 Absence of Duties. Except in accordance with written instructions or
		requests furnished hereunder, the Trustee shall have no duty to ascertain or
		inquire as to the performance or observance of any covenants, conditions or
		agreements on the part of any Lessee.
	 

	 
		Section 6.03 Representations or Warranties. The Trustee does not make and shall not be deemed to
		have made any representation or warranty as to the validity, legality or
		enforceability of this Indenture, the Notes or any other document or instrument
		or as to the correctness of any statement contained in any thereof, except that
		the Trustee in its individual capacity hereby represents and warrants
		(i) that each such specified document to which it is a party has been or
		will be duly executed and delivered by one of its officers who is and will be
		duly authorized to execute and deliver such document on its behalf, and
		(ii) this Indenture is the legal, valid and binding obligation of Deutsche
		Bank Trust Company Americas, enforceable against Deutsche Bank Trust Company
		Americas in accordance with its terms, subject to the effect of any applicable
		bankruptcy, insolvency, reorganization, moratorium or similar law affecting
		creditors’ rights generally.
	 

	 
		Section 6.04 Reliance; Agents; Advice of Counsel. The Trustee may conclusively rely and shall be fully
		protected and incur no liability to anyone in acting or refraining from 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
		Trustee shall have no obligation to confirm the veracity of the content of any
		such item provided to it (absent manifest error). The Trustee may accept a copy
		of a resolution of, in the case of the Issuer, the Board and, in the case of
		any other party to any Related Document, the governing body of such Person,
		certified in an accompanying Officer’s Certificate 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 any fact or
		matter the manner of ascertainment of which is not specifically described
		herein, the Trustee shall be entitled to receive and may for all purposes
		hereof conclusively rely on a certificate, signed by an officer of any duly
		authorized Person, as to such fact or matter, and such certificate shall
		constitute full protection to the Trustee for any action taken or omitted to be
		taken by it in good faith in reliance thereon. The Trustee shall furnish to the
		Cash Manager upon written request such information and copies of such documents
		as the Trustee may have and as are necessary for the Cash Manager to perform
		its duties under Articles II and III hereof. The Trustee shall assume, and
		shall be fully protected in assuming, that the Issuer is authorized by its
		constitutional documents to enter into this Indenture and to take all action
		permitted to be taken by it pursuant to the provisions hereof, and shall not
		inquire into the authorization of the Issuer with respect thereto.
	 

	 
		The Trustee shall not be liable for any
		action it takes or omits to take in good faith that it believes to be
		authorized or within its rights or powers or for any action it takes or omits
		to take in accordance with the direction of the Controlling Party, in
		accordance with Section 4.12 relating to the time, method and place of
		conducting any proceeding for any remedy available to the Trustee, or
		exercising any trust or power conferred upon the Trustee, under this
		Indenture.
	 

	 
		 
	 

	 
		113
	 

	 
		 
	 

	 
	 

	 

	 
		The Trustee may execute any of the trusts or
		powers hereunder or perform any duties hereunder either directly or by or
		through agents or attorneys or a custodian or nominee, and the Trustee shall
		not be responsible for any misconduct or negligence on the part of, or for the
		supervision of, any such agent, attorney, custodian or nominee appointed with
		due care by it hereunder.
	 

	 
		The Trustee may consult with counsel as to
		any matter relating to this Indenture and any Opinion of Counsel or any advice
		of such counsel shall be full and complete authorization and protection in
		respect of any action taken or suffered or omitted by it hereunder in good
		faith and in accordance with such advice or Opinion of Counsel.
	 

	 
		The Trustee shall be under no obligation to
		exercise any of the rights or powers vested in it by this Indenture, or to
		institute, conduct or defend any litigation hereunder or in relation hereto, at
		the request, order or direction of any of the Holders, pursuant to the
		provisions of this Indenture, unless such Holders shall have offered to the
		Trustee security or indemnity reasonably satisfactory to it against the costs,
		expenses and liabilities which may be Incurred therein or thereby (the basis of
		such costs, expense or liability, if in respect of any third party liability,
		shall be supported by an Opinion of Counsel).
	 

	 
		The Trustee shall not be required to expend
		or risk its own funds or otherwise Incur any financial liability in the
		performance of any of its duties hereunder, or in the exercise of any of its
		rights or powers, if there is reasonable ground for believing that the
		repayment of such funds or adequate indemnity against such risk or liability is
		not reasonably assured to it, and none of the provisions contained in this
		Indenture shall in any event require the Trustee to perform, or be responsible
		or liable for the manner of performance of, any obligations of the Issuer or
		the Cash Manager under this Indenture or any of the Related Documents.
	 

	 
		The Trustee shall not be liable for any
		Costs or Taxes (except for Taxes relating to any compensation, fees or
		commissions of any entity acting in its capacity as Trustee hereunder) or in
		connection with the selection of Permitted Account Investments or for any
		investment losses resulting from Permitted Account Investments or for the
		failure of the Issuer or Cash Manager to provide timely written
		direction.
	 

	 
		When the Trustee Incurs expenses or renders
		services in connection with an Event of Default specified in Section 4.01(e) or
		4.01(f), such expenses (including the fees and expenses of its counsel) and the
		compensation for such services are intended to constitute expenses of
		administration under any bankruptcy law or law relating to creditors’
		rights generally.
	 

	 
		The Trustee shall not be charged with
		knowledge of an Event of Default unless a Responsible Officer of the Trustee
		obtains actual knowledge of such event, including receiving Written Notice of
		such event from the Issuer, the Policy Provider, the Cash Manager or any
		Holder.
	 

	 
		The Trustee shall have no duty to monitor
		the performance of the Issuer, the Cash Manager or any other party to the
		Related Documents, nor shall it have any liability in connection with the
		malfeasance or nonfeasance by such parties. The Trustee shall have no liability
		in connection with the appointment of the Cash Manager or compliance by the
		Issuer and the Cash Manager or any lessee under a Lease with statutory or
		regulatory requirements related to any Aircraft or any Lease. The Trustee shall
		have no obligation, or liability in respect thereto, to verify or recalculate
		any of the determinations made by the Cash Manager pursuant to the Related
		Documents. The Trustee shall not make or be deemed to have made any
		representations or warranties with respect to any Aircraft or any Lease or the
		validity or sufficiency of any assignment or other disposition of any Aircraft
		or any Lease.
	 

	 
		 
	 

	 
		114
	 

	 
		 
	 

	 
	 

	 

	 
		Section 6.05 No Compensation from Holders. The Trustee agrees that it shall have no right against
		the Holders, the Policy Provider or, except as provided in Article III
		hereof, the property of the Issuer, for any fee as compensation for its
		services hereunder.
	 

	 
		Section 6.06 Notice of Defaults. As promptly as practicable after, and in any event
		within 30 days after, the occurrence of any Default or Event of Default of
		which a Responsible Officer of the Trustee has actual knowledge, the Trustee
		shall transmit by mail to the Issuer, any Paying Agent, the Policy Provider,
		the Initial Liquidity Facility Provider and the Holders holding Notes of the
		related subclass, notice of such Default or Event of Default actually known to
		a Responsible Officer of the Trustee, unless such Default or Event of Default
		shall have been cured or waived; provided,
		however, that, except in the case of a Default or Event of
		Default on the payment of the interest on or principal or Redemption Price of
		any Note, the Trustee shall be fully protected in withholding such notice if
		and so long as a trust committee of Responsible Officers of the Trustee in good
		faith determines that the withholding of such notice is in the best interests
		of the Holders of the related class; provided
		further that the Trustee shall in any event notify the Policy
		Provider and the Initial Liquidity Facility Provider of any such Default or
		Event of Default.
	 

	 
		Section 6.07 May Hold Securities. The Trustee, any Paying Agent, the Registrar or any of
		their Affiliates or any other agent in their respective individual or any other
		capacity, may become the owner or pledgee of Securities and, subject to
		Sections 310(b) and 311of the TIA, may otherwise deal with the Issuer with
		the same rights it would have if it were not Trustee, Paying Agent, Registrar
		or such other agent.
	 

	 
		Section 6.08 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee which shall be
		eligible to act as a trustee under Section 310(a) of the TIA and shall meet the
		Eligibility Requirements. If such corporation publishes reports of conditions
		at least annually, pursuant to law or to the requirements of federal, state,
		territorial or District of Columbia supervising or examining authority, then
		for the purposes of this Section 6.08, the combined capital and surplus of such
		corporation shall be deemed to be its combined capital and surplus as set forth
		in its most recent report of conditions so published.
	 

	 
		In case at any time the Trustee shall cease
		to be eligible in accordance with the provisions of this Section 6.08 to act as
		Trustee, the Trustee shall resign immediately as Trustee in the manner and with
		the effect specified in Section 7.01.
	 

	 
		Section 6.09 Disqualification of Trustee. If this Indenture is qualified under the TIA, the
		Trustee shall be subject to the provisions of Section 310(b) of the TIA during
		the period of time provided for therein. If this Indenture has been qualified
		under the TIA and the Trustee has or shall acquire a conflicting interest
		within the meaning of the TIA, the Trustee shall either eliminate such interest
		or resign, to the extent and in the manner provided by, and subject to the
		provisions of, the TIA and this Indenture. Nothing herein shall prevent the
		Trustee from filing with the Commission the application referred to in the
		second to last paragraph of Section 310(b) of the TIA.
	 

	 
		Section 6.10 Preferential Collection of Claims Against
		Issuer. The Trustee shall comply with
		Section 311(a) of the TIA as if this Indenture were required to be qualified
		under the TIA, excluding any creditor relationship listed in Section 311(b) of
		the TIA. A Trustee who has resigned or been removed shall be subject to Section
		311(a) of the TIA to the extent applicable and to the extent indicated
		therein.
	 

	 
		Section 6.11 Reports by the Issuer. (a) The Issuer shall furnish to the Trustee, within
		120 days after the end of each fiscal year ending December 31, a
		brief certificate from a Director as to his or her knowledge of the
		Issuer’s compliance with all conditions and covenants under this Indenture
		(it 
	 

	 
		 
	 

	 
		115
	 

	 
		 
	 

	 
	 

	 

	 
		being understood that for purposes of this
		Section 6.11, such compliance shall be determined without regard to any period
		of grace or requirement of notice provided under this Indenture).
	 

	 
		(b) The Issuer shall furnish to the Trustee,
		the Policy Provider and the Initial Liquidity Facility Provider within
		45 days after the end of each calendar quarter a certification as to the
		matters set forth in Exhibit H hereto.
	 

	 
		Section 6.12 Holder Lists.
		The Issuer will furnish or cause to be furnished to the Trustee with respect to
		the Notes of each class:
	 

	 
		(a) semi-annually, not later than
		15 days after such semi-annual dates as may be specified by the Trustee, a
		list, in such form as the Trustee may reasonably require, of the names and
		addresses of the Holders as of such semi-annual date, as the case may be,
		and
	 

	 
		(b) at such other times as the Trustee may
		request in writing, within 30 days after the receipt by the Issuer of any
		such request, a list of similar form and content as of a date not more than 15
		days prior to the time such list is furnished, excluding from any such list
		names and addresses received by the Trustee in its capacity as
		Registrar.
	 

	 
		Section 6.13 Preservation of Information; Communications to
		Holders. (a) The Trustee shall
		preserve, in as current a form as is reasonably practicable, the names and
		addresses of Holders contained in the most recent list furnished to the Trustee
		as provided in Section 6.12 and the names and addresses of Holders received by
		the Trustee in its capacity as Registrar. The Trustee may destroy any list
		furnished to it as provided in Section 6.12 upon receipt of a new list so
		furnished.
	 

	 
		(b) If three or more Holders of Notes of any
		subclass (hereinafter referred to as “applicants”) apply in writing to the Trustee, and furnish to
		the Trustee reasonable proof that each such applicant has owned a Note of such
		subclass for a period of at least six months preceding the date of such
		application, and such application states that the applicants desire to
		communicate with other Holders of Notes of such subclass or with the Holders of
		all Notes with respect to their rights under this Indenture or under such Notes
		and is accompanied by a copy of the form of proxy or other communication which
		such applicants propose to transmit, then the Trustee shall, within five
		Business Days after the receipt of such application, afford such applicants
		access to the information preserved at the time by the Trustee in accordance
		with Section 6.13(a).
	 

	 
		If the Trustee shall elect not to afford
		such applicants access to such information, the Trustee shall, upon the written
		request of such applicants, mail to each Holder of a Note of such subclass or
		to all Holders, as the case may be, whose names and addresses appear in the
		information preserved at the time by the Trustee in accordance with Section
		6.13(a) hereof, a copy of the form of proxy or other communication which is
		specified in such request, with reasonable promptness after a tender to the
		Trustee of the material to be mailed and of payment, or provision for the
		payment, of the reasonable expenses in connection with such mailing.
	 

	 
		(c) Every Holder of Notes, by receiving and
		holding the same, agrees with the Issuer and the Trustee that neither the
		Issuer nor the Trustee shall be held accountable by reason of the disclosure of
		any such information as to the names and addresses of the Holders in accordance
		with Section 6.13(b), regardless of the source from which such information was
		derived, and that the Trustee shall not be held accountable by reason of
		mailing any material pursuant to a request made under Section 6.13(b).
	 

	 
		 
	 

	 
		116
	 

	 
		 
	 

	 
	 

	 

	 
		ARTICLE VII
  
	 

	 
		SUCCESSOR TRUSTEES
	 

	 
		Section 7.01 Resignation
		and Removal of Trustee. The Trustee may
		resign as to all or any of the subclasses of the Notes at any time without
		cause by giving at least 45 days’ prior Written Notice to the Issuer, the
		Policy Provider, the Initial Liquidity Facility Provider, the Cash Manager, the
		Administrative Agent and the Holders, such resignation to be effective only
		upon the acceptance of the appointment by a successor Trustee. Holders of a
		majority of the Outstanding Principal Balance of any subclass of the Notes (or,
		with respect to the Class G-1 Notes, (i) the Policy Provider or the Initial
		Liquidity Facility Provider, as applicable, so long as it is the Controlling
		Party) may at any time remove the Trustee as to such subclass without cause by
		an instrument in writing delivered to the Issuer, the Administrative Agent, the
		Cash Manager, the Servicer, the Security Trustee and the Trustee being removed,
		such removal to be effective only upon the acceptance of the appointment by a
		successor Trustee. In addition, the Issuer may remove the Trustee as to any of
		the subclasses of the Notes if: (a) if this Indenture has been qualified
		under the TIA, such Trustee fails to comply with Section 310 of the TIA after
		written request therefor by the Issuer or a Holder of the related subclass who
		has been a bona fide Holder for at least six months, (b) such Trustee
		fails to comply with Section 7.02(c), (c) such Trustee is adjudged a
		bankrupt or an insolvent, (d) a receiver or public officer takes charge of
		such Trustee or its property or (e) such Trustee becomes incapable of
		acting, such removal to be effective only upon the acceptance of the
		appointment by a successor Trustee. References to the Trustee in this Indenture
		include any successor Trustee as to all or any of the subclasses of the Notes
		appointed in accordance with this Article VII.
	 

	 
		Section 7.02 Appointment of Successor. (a) In the case of the resignation or removal of the
		Trustee as to any subclass of the Notes under Section 7.01, the Issuer shall
		promptly appoint a successor Trustee as to such subclass; provided that a majority of the Outstanding Principal Balance of
		such subclass of the Notes may appoint, within one year after such resignation
		or removal, a successor Trustee as to such subclass which may be other than the
		successor Trustee appointed by the Issuer, and such successor Trustee appointed
		by the Issuer shall be superseded by the successor Trustee so appointed by the
		Holders. If a successor Trustee as to any subclass of the Notes shall not have
		been appointed and accepted its appointment hereunder within 60 days after the
		Trustee gives notice of resignation as to such subclass, the retiring Trustee,
		the Issuer, the Cash Manager, the Policy Provider, the Initial Liquidity
		Facility Provider or a majority of the Outstanding Principal Balance of such
		subclass of the Notes may petition any court of competent jurisdiction for the
		appointment of a successor Trustee as to such subclass. Any successor Trustee
		so appointed by such court shall immediately and without further act be
		superseded by any successor Trustee appointed as provided in the first sentence
		of this paragraph within one year from the date of the appointment by such
		court.
	 

	 
		(b) Any successor Trustee as to any subclass
		of the Notes, however appointed, shall execute and deliver to the Issuer, the
		Cash Manager, the Policy Provider, the Initial Liquidity Facility Provider and
		the predecessor Trustee as to such subclass an instrument accepting such
		appointment, and thereupon such successor Trustee, without further act, shall
		become vested with all the estates, properties, rights, powers, duties and
		trusts of such predecessor Trustee hereunder in the trusts hereunder applicable
		to it with like effect as if originally named the Trustee as to such subclass
		herein; provided that, upon the written request of such successor
		Trustee, such predecessor Trustee shall, upon payment of all amounts due and
		owing to it, execute and deliver an instrument transferring to such successor
		Trustee, upon the trusts herein expressed applicable to it, all the estates,
		properties, rights, powers and trusts of such predecessor Trustee, and such
		predecessor Trustee shall duly assign, transfer, deliver and pay over to such
		successor Trustee all 
	 

	 
		 
	 

	 
		117
	 

	 
		 
	 

	 
	 

	 

	 
		moneys or other property then held by such
		predecessor Trustee hereunder solely for the benefit of such subclass of the
		Notes.
	 

	 
		(c) If a successor Trustee is appointed with
		respect to one or more (but not all) subclasses of the Notes, the Issuer, the
		predecessor Trustee and each successor Trustee with respect to each subclass of
		Notes shall execute and deliver an indenture supplemental hereto which shall
		contain such provisions as shall be deemed necessary or desirable to confirm
		that all the rights, powers, trusts and duties of the predecessor Trustee with
		respect to the subclasses of Notes as to which the predecessor Trustee is not
		retiring shall continue to be vested in the predecessor Trustee, and shall add
		to or change any of the provisions of this Indenture as shall be necessary to
		provide for or facilitate the administration of the Notes hereunder by more
		than one Trustee.
	 

	 
		(d) Each Trustee shall be an Eligible
		Institution and shall meet the Eligibility Requirements, if there be such an
		institution willing, able and legally qualified to perform the duties of a
		Trustee hereunder; provided that
		the Rating Agencies shall receive notice of any replacement Trustee.
	 

	 
		(e) Any corporation into which the Trustee
		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
		Trustee shall be a party, or any corporation to which substantially all the
		business of the Trustee may be transferred, shall, subject to the terms of
		paragraph (c) of this Section, be the Trustee under this Indenture without
		further act.
	 

	 
		ARTICLE VIII
  
	 

	 
		INDEMNITY
	 

	 
		Section 8.01 Indemnity. The
		Issuer shall indemnify the Trustee (and its officers, directors, employees and
		agents) for, and hold it harmless against, any loss, liability or expense
		Incurred by it without negligence or bad faith on its part in connection with
		the acceptance or administration of this Indenture and its duties under this
		Indenture, the Notes and the other Related Documents, including the costs and
		expenses of defending itself against any claim or liability and of complying
		with any process served upon it or any of its officers in connection with the
		exercise or performance of any of its powers or duties and hold it harmless
		against, any loss, liability or reasonable expense Incurred without negligence
		or bad faith on its part, arising out of or in connection with actions taken or
		omitted to be taken in reliance on any Officer’s Certificate furnished
		hereunder, or the failure to furnish any such Officers’ Certificate
		required to be furnished hereunder. The Trustee shall notify the Issuer, the
		Rating Agencies, the Policy Provider and the Initial Liquidity Facility
		Provider promptly of any claim asserted against the Trustee for which it may
		seek indemnity; provided, however, that
		failure to provide such notice shall not invalidate any right to indemnity
		hereunder. The Issuer shall defend the claim and the Trustee shall cooperate in
		the defense. The Trustee may have separate counsel and the Issuer shall pay
		reasonable fees and expenses of such counsel. The Issuer need not reimburse any
		expense or indemnity against any loss or liability Incurred by the Trustee
		through gross negligence or bad faith. The provisions of this Section 8.01 and
		Section 8.02 shall survive the termination of this Indenture or the earlier
		resignation or removal of the Trustee.
	 

	 
		Section 8.02 Holders’ Indemnity. The Trustee shall be entitled to be indemnified
		(except with respect to losses, damages or obligations arising from the
		Trustee’s negligence or bad faith) by the Holders of any subclass of the
		Notes before proceeding to exercise any right or power under this Indenture or
		the Cash Management Agreement at the request or direction of such Holders (the
		basis of 
	 

	 
		 
	 

	 
		118
	 

	 
		 
	 

	 
	 

	 

	 
		any loss, damage or obligation, if in
		respect of any third party liability, shall be supported by an Opinion of
		Counsel).
	 

	 
		ARTICLE IX
  
	 

	 
		MODIFICATION
	 

	 
		Section 9.01 Modification with Consent of Holders, the Policy
		Provider, the Initial Liquidity Facility Provider and each Hedge
		Provider. With the consent of Holders
		of a majority of the Outstanding Principal Balance of the Notes on the date of
		any vote of such Holders (voting as a single class), the Policy Provider, the
		Initial Liquidity Facility Provider and each Hedge Provider (if materially
		adversely affected thereby), the Issuer, when authorized by a Board Resolution
		and after the receipt of a Rating Agency Confirmation, may amend or modify this
		Indenture or the Notes; provided that,
		without the consent of each Hedge Provider, the Policy Provider, each provider
		of an Eligible Credit Facility and each Holder of any Notes, in each instance
		affected thereby, no such amendment may, except as otherwise provided in
		Section 3.12, modify the provisions of this Indenture or the Notes setting
		forth the frequency or the currency of payment of, the maturity of, or the
		method of calculation of the amount of, any interest, principal, or Redemption
		Price, Policy Redemption Premium or Policy Premium, if any, payable in respect
		of any subclass of Notes, or reduce the percentage of the aggregate Outstanding
		Principal Balance of any subclass of Notes required to approve any amendment or
		waiver of this Section 9.01 or, except as otherwise provided in Section 3.10,
		alter the manner or priority of payment of such subclass of Notes (each, a
		“Basic Terms
		Modification”).
	 

	 
		It shall not be necessary for the consent of
		the Holders and each provider of an Eligible Credit Facility under this Section
		9.01 to approve the particular form of any proposed amendment or waiver, but it
		shall be sufficient if such consent approves the substance thereof;
		provided, however that it
		shall be necessary for the Policy Provider and the Initial Liquidity Facility
		Provider to approve the particular form of any proposed amendment or waiver.
		Any such modification approved by the required Holders of any class or subclass
		of Notes will be binding on the Holders of the relevant class or subclass of
		Notes and each party to this Indenture.
	 

	 
		The Issuer shall give each Rating Agency,
		the Policy Provider, the Initial Liquidity Facility Provider, each other
		provider of an Eligible Credit Facility and any paying agent, prior notice of
		any amendment under this Section 9.01, and, after an amendment under this
		Section 9.01 becomes effective, the Issuer shall mail to the Holders, the
		Policy Provider, the Initial Liquidity Facility Provider, each other provider
		of an Eligible Credit Facility, each Hedge Provider and the Rating Agencies a
		notice briefly describing such amendment and a copy of such executed amendment.
		Any failure of the Issuer to mail such notice, or any defect therein, shall
		not, however, in any way impair or affect the validity of any such
		amendment.
	 

	 
		After an amendment under this Section 9.01
		becomes effective, it shall bind every Holder whether or not notation thereof
		is made on any Note held by such Holder.
	 

	 
		Section 9.02 Modification Without Consent of Holders, Providers of
		Eligible Credit Facilities and the Policy Provider. Subject to Section 9.01, the Trustee may agree with
		the Issuer, without the consent of any Holder or any provider of an Eligible
		Credit Facility (but in the case of clauses (b), (c) and (d) below, with
		the consent of the Policy Provider and further, in the case of clauses (b)
		and (c) below, with the consent of the Initial Liquidity Facility Provider),
		(a) to any modification (other than a Basic Terms Modification) of, or the
		waiver or authorization of any breach or prospective breach of, any provision
		of any Related Document or of the relevant subclass of Notes to correct a
		manifest error or an error which is of a formal, minor or technical nature,
		(b) to modify the provisions of this Indenture or the 
	 

	 
		 
	 

	 
		119
	 

	 
		 
	 

	 
	 

	 

	 
		Cash Management Agreement relating to the
		timing of movement of Rental Payments or other monies received or Expenses
		Incurred among the Accounts by the Cash Manager, (c) to add or replace any
		Eligible Credit Facility, (d) to any amendment (other than a Basic Terms
		Modification) of an immaterial nature necessary to facilitate the issuance of
		Refinancing Notes and/or Additional Notes and related acquisition of Additional
		Aircraft (all in a manner consistent with the express provisions of this
		Indenture) or (e) to comply with the requirements of the Commission in
		connection with the qualification of this Indenture under the TIA. The Rating
		Agencies and any paying agent shall be given prior notice of any such
		modification, and such modification shall be notified to the Holders as soon as
		practicable thereafter and shall be binding on all the Holders.
	 

	 
		Upon any such modification, the Issuer shall
		deliver to the Holders, the Trustee, the Policy Provider and the Initial
		Liquidity Facility Provider a certificate of the Issuer certifying that such
		modification will not adversely affect the Holders, the Policy Provider or the
		Initial Liquidity Facility Provider.
	 

	 
		In addition, the Issuer may, without
		providing the certificate mentioned in the preceding paragraph, and without the
		consent of the Trustee, any Holder or any provider of an Eligible Credit
		Facility, the Policy Provider or the Initial Liquidity Facility Provider or any
		other party, list the Notes on the Irish Stock Exchange and trade the Notes on
		the Irish Stock Exchange.
	 

	 
		Section 9.03 Subordination and Priority of Payments. The subordination provisions contained in Section
		3.09, Section 3.10 and Article X may not be amended or modified without
		the consent of the Policy Provider (so long as a Policy Non-Consent Event has
		not occurred and is not continuing), the Servicer, each provider of an Eligible
		Credit Facility, each Holder of the subclass of Notes affected thereby and each
		Holder of any subclass of Notes ranking senior thereto. In no event shall the
		provisions set forth in Section 3.09 relating to the priority of the Expenses,
		Senior Hedge Payments and payments under all Eligible Credit Facilities be
		amended or modified.
	 

	 
		Section 9.04 Execution
		of Amendments by Trustee. In executing,
		or accepting the additional trusts created by, any amendment or modification to
		this Indenture permitted by this Article or the modifications thereby of the
		trusts created by this Indenture, the Trustee shall be entitled to receive, and
		shall be fully protected in relying upon, an Officer’s Certificate and an
		Opinion of Counsel stating that the execution of such amendment is authorized
		or permitted by this Indenture and that all conditions precedent to the
		execution of such amendment have been met. The Trustee may, but shall not be
		obligated to, enter into any such amendment which affects the Trustee’s
		own rights, duties, immunities or indemnities under this Indenture or
		otherwise.
	 

	 
		ARTICLE X
  
	 

	 
		SUBORDINATION
	 

	 
		Section 10.01 Subordination of the Securities and Other Subordinated
		Obligations. (a) (i) The Issuer,
		each Holder (by its acceptance of its Note) and each other Secured Party (by
		its acceptance of the benefits of the Security Trust Agreement) agree that the
		Securities and the other Obligations shall be subject to the provisions of this
		Article X and, in the case of the Secured Obligations, to the provisions
		of Article VII of the Security Trust Agreement and (ii) each Junior
		Claimant (and each Junior Representative of any thereof) agrees for the benefit
		of each Senior Claimant (and the Controlling Party and the Trustee acting
		therefor) that each Junior Claim shall be subordinated fully in right of
		payment to each Senior Claim as provided in Section 3.09, Section 3.10 (if
		applicable), this Article X and Article VII of the Security Trust
		Agreement.
	 

	 
		 
	 

	 
		120
	 

	 
		 
	 

	 
	 

	 

	 
		(b) For the purposes of this Agreement, no
		Senior Claims shall be deemed to have been paid in full until and unless the
		Senior Claimant (or the Trustee therefor) of such Senior Claims shall have
		received payment in full in cash of such Senior Claims.
	 

	 
		(c) All payments or distributions upon or
		with respect to any Obligations that are received by any Junior Claimant (or
		any Junior Representative thereof) contrary to the provisions of this Indenture
		or in excess of the amounts to which such Junior Claimant is entitled under
		Section 3.09 shall be received for the benefit of the Senior Claimant, shall be
		segregated from other funds and property held by such Junior Claimant (or any
		Junior Representative thereof) and shall be forthwith paid over to the Trustee
		in the same form as so received (with any necessary endorsement) to be applied
		(in the case of cash) to or held as collateral (in the case of non-cash
		property or securities) for the payment or prepayment of the Senior Claims in
		accordance with the terms hereof.
	 

	 
		(d) Notwithstanding anything contained
		herein to the contrary, payments (i) deposited in any Cash Collateral
		Account or drawn under any Eligible Credit Facility (as provided in Section
		3.13 or Section 3.14), (ii) drawn under the Policy, (iii) of
		Contribution Amounts or (iv) deposited in the Defeasance/Redemption
		Account (or, in the case of a Refinancing, the Refinancing Account) in respect
		of a Redemption under Section 3.11 or in respect of the defeasance of Notes
		pursuant to Article XI shall not be subordinated to the prior payment of
		any Senior Claimants in respect of any Senior Claims or subject to any other
		restrictions set forth in this Article X and Article VII of the
		Security Trust Agreement, and none of the Holders shall be obligated to pay
		over any payments from any such property to the Security Trustee or any other
		creditor of any of the Grantors (as defined in the Security Trust
		Agreement).
	 

	 
		(e) The Senior Representative is hereby
		authorized to demand specific performance of the provisions of this
		Article X at any time when any Junior Claimant (or any Junior
		Representative thereof) shall have failed to comply with any of such provisions
		applicable to them. The Junior Claimants (and each Junior Representative
		thereof) hereby irrevocably waive any defense based on the adequacy of a remedy
		at law that might be asserted as a bar to such remedy of specific
		performance.
	 

	 
		Section 10.02 Rights of Subrogation. The Junior Claimants (and each Junior Representative
		thereof) agree that no payment or distributions to any Senior Claimant (or the
		Trustee therefor) pursuant to the provisions of this Indenture shall entitle
		any Junior Claimant (or any Junior Representative thereof) to exercise any
		rights of subrogation in respect thereof until all Obligations constituting
		Senior Claims with respect to such Person shall have been paid in full.
	 

	 
		Section 10.03 Further Assurances of Junior
		Representatives. Each of the Junior
		Representatives shall, at the expense of the Issuer, at any time and from time
		to time promptly execute and deliver all further instruments and documents, and
		take all further action, that the Controlling Party (or the Policy Provider if
		the Policy Provider is not the Controlling Party; provided that if
		the Junior Representatives receive conflicting requests, the request of the
		Controlling Party shall apply only) may reasonably request, in order to
		effectuate the provisions of this Article X.
	 

	 
		Section 10.04 Enforcement.
		Each Junior Claimant (and the Junior Representative therefor) agrees that the
		provisions of this Article X shall be enforceable against it under all
		circumstances, including without limitation in any proceeding referred to in
		Sections 4.01(e) and 4.01(f).
	 

	 
		Section 10.05 Continued Effectiveness. The provisions of this Article X shall continue
		to be effective or shall be revived or reinstated, as the case may be, if at
		any time any payment of any of the 
	 

	 
		 
	 

	 
		121
	 

	 
		 
	 

	 
	 

	 

	 
		Senior Claims is rescinded or must otherwise
		be returned by any Senior Claimant upon the insolvency, bankruptcy or
		reorganization of any Issuer Group Member, or otherwise, all as though such
		payment had not been made.
	 

	 
		Section 10.06 Senior Claims and Junior Claims
		Unimpaired. Nothing in this
		Article X shall impair, as between the Issuer and any Senior Claimant or
		any Junior Claimant, the obligations of the Issuer to such Person, including
		without limitation the Senior Claims and the Junior Claims; provided that it
		is understood that the enforcement of rights and remedies shall be subject to
		the terms of this Indenture and the Security Trust Agreement.
	 

	 
		ARTICLE XI
  
	 

	 
		DISCHARGE OF INDENTURE;
		DEFEASANCE
	 

	 
		Section 11.01 Discharge of Liability on the Notes;
		Defeasance. (a) When (i) the
		Issuer delivers to the Trustee all Outstanding Notes (other than Notes that
		have been lost, stolen or destroyed and that have been replaced pursuant to
		Section 2.08) for cancellation or (ii) all Outstanding Notes have become
		due and payable, whether at maturity or as a result of the mailing of a notice
		of redemption pursuant to Section 3.11(c) and the Issuer irrevocably deposits
		in the Defeasance/Redemption Account funds sufficient to pay at maturity or
		upon redemption all Outstanding Notes, including interest thereon to maturity
		or the Redemption Date (other than Notes replaced pursuant to Section 2.08) and
		(iii) all amounts owed to any Hedge Provider under any Hedge Agreement and all
		amounts owed to each of the Policy Provider and the Initial Liquidity Facility
		Provider have been paid in full, and if in each case the Issuer pays all other
		sums payable hereunder by the Issuer, then this Indenture shall, subject to
		Section 11.01(c), cease to be of further effect. The Trustee shall acknowledge
		satisfaction and discharge of this Indenture on demand of the Issuer
		accompanied by an Officers’ Certificate and an Opinion of Counsel, at the
		cost and expense of the Issuer, to the effect that any conditions precedent to
		a discharge of this Indenture have been met.
	 

	 
		(b) Subject to Sections 11.01(c) and
		11.02 hereof, the Issuer at any time may terminate (i) all its obligations
		under the Notes and this Indenture (“Legal Defeasance” option) or (ii) its obligations under
		Sections 4.01 (other than with respect to a failure to comply with
		Sections 4.01(a), 4.01(b), 4.01(c), 4.01(e) (only with respect to the
		Issuer), 4.01(f) (only with respect to the Issuer)), 5.02 and 5.03
		(“Covenant
		Defeasance” option). The Issuer
		may exercise its Legal Defeasance option notwithstanding its prior exercise of
		its Covenant Defeasance option.
	 

	 
		If the Issuer exercises its Legal Defeasance
		option, payment of any Notes subject to such Legal Defeasance may not be
		accelerated because of an Event of Default. If the Issuer exercises its
		Covenant Defeasance option, payment of the Notes may not be accelerated because
		of an Event of Default (other than with respect to a failure to comply with
		Sections 4.01(a), 4.01(b), 4.01(c), 4.01(e) (other than with respect to
		the Issuer), 4.01(f) (other than with respect to the Issuer)) and 5.02(n)
		hereof.
	 

	 
		Upon satisfaction of the conditions set
		forth herein and upon written request of the Issuer, the Trustee shall
		acknowledge in writing the discharge of those obligations that the Issuer
		terminates.
	 

	 
		(c) Notwithstanding clauses (a) and (b)
		above, the Issuer’s obligations in Sections 2.01, 2.02, 2.03, 2.04,
		2.05, 2.06, 2.07, 2.08, 2.09 and 5.02(n), Article VI, and
		Sections 8.01, 11.04, 11.05 and 11.06 hereof shall survive until all the
		Notes have been paid in full. Thereafter, the Issuer’s obligations in
		Sections 8.01, 11.04 and 11.05 shall survive.
	 

	 
		 
	 

	 
		122
	 

	 
		 
	 

	 
	 

	 

	 
		Section 11.02 Conditions to Defeasance. The Issuer may exercise its Legal Defeasance option or
		its Covenant Defeasance option only if:
	 

	 
		(a) the Issuer irrevocably deposits in trust
		in the Defeasance/Redemption Account any one or any combination of
		(i) money, (ii) obligations of, and supported by the full faith and
		credit of, the U.S. Government (“U.S. Government Obligations”) or (iii) obligations of corporate issuers
		(“Corporate
		Obligations”) (provided that
		any such Corporate Obligations are rated AA+, or the equivalent, or higher, by
		the Rating Agencies at such time and shall not have a maturity of longer than
		three years from the date of defeasance) for the payment of all principal or
		Redemption Price and interest (A) on the Notes or any class or subclass of
		Notes being defeased, in the case of Legal Defeasance, or (B) on all of
		the Notes in the case of Covenant Defeasance, in either case, to maturity or
		redemption, as the case may be;
	 

	 
		(b) the Issuer delivers to the Trustee a
		certificate from a nationally recognized firm of independent accountants
		expressing their opinion that the payments of principal and interest when due
		and without reinvestment on the deposited U.S. Government Obligations or the
		Corporate Obligations plus any deposited money without investment will provide
		cash at such times and in such amounts as will be sufficient to pay principal
		and interest when due (i) on each class or subclass of Notes being
		defeased, in the case of Legal Defeasance, or (ii) on all of the Notes in
		the case of Covenant Defeasance, in either case, to maturity or redemption, as
		the case may be;
	 

	 
		(c) 91 days pass after the deposit described
		in clause (a) above is made and during the 91-day period no Event of
		Default specified in Section 4.01(e) or (f) with respect to the Issuer occurs
		which is continuing at the end of the period;
	 

	 
		(d) the deposit described in clause (a)
		above does not constitute a default under any other agreement binding on the
		Issuer;
	 

	 
		(e) the Issuer delivers to the Trustee an
		Opinion of Counsel to the effect that the trust resulting from the deposit
		described in clause (a) does not constitute, or is qualified as, a
		regulated investment company under the Investment Company Act of 1940, as
		amended;
	 

	 
		(f) in the case of the Legal Defeasance
		option, the Issuer shall have delivered to the Trustee an Opinion of Counsel
		stating that (i) the Issuer has received from, or there has been published
		by, the U.S. Internal Revenue Service a ruling, or (ii) since the date of
		this Indenture there has been a change in the applicable U.S. federal income
		tax law, in either case to the effect that, and based thereon such opinion of
		counsel shall confirm that the Holders will not recognize income, gain or loss
		for U.S. federal income tax purposes as a result of such Legal Defeasance and
		will be subject to U.S. federal income tax on the same amounts, in the same
		manner and at the same times as would have been the case if such Legal
		Defeasance had not occurred;
	 

	 
		(g) in the case of the Covenant Defeasance
		option, the Issuer shall have delivered to the Trustee an Opinion of Counsel to
		the effect that the Holders will not recognize income, gain or loss for U.S.
		federal income tax purposes as a result of such Covenant Defeasance and will be
		subject to U.S. federal income tax on the same amounts, in the same manner and
		at the same times as would have been the case if such Covenant Defeasance had
		not occurred;
	 

	 
		(h) if the related Notes are then listed on
		any securities exchange, the Issuer delivers to the Trustee an Opinion of
		Counsel to the effect that such deposit, defeasance and discharge will not
		cause such Notes to be delisted;
	 

	 
		 
	 

	 
		123
	 

	 
		 
	 

	 
	 

	 

	 
		(i) a Rating Agency Confirmation and the
		prior written consent of each of the Policy Provider and the Initial Liquidity
		Facility Provider is obtained relating to the defeasance contemplated by this
		Section 11.02;
	 

	 
		(j) the Policy shall be terminated and
		surrendered to the Policy Provider for cancellation;
	 

	 
		(k) all amounts due and owing to the Policy
		Provider and the Initial Liquidity Facility Provider have been paid (or
		provided for under Section 11.02(a)); and
	 

	 
		(l) the Issuer delivers to the Trustee an
		Opinion of Counsel and an Officer’s Certificate that all conditions
		precedent to such defeasance have been satisfied.
	 

	 
		Section 11.03 Application of Trust Money. The Trustee shall hold in trust in the
		Defeasance/Redemption Account money, U.S. Government Obligations or Corporate
		Obligations deposited with it pursuant to this Article XI. Upon payment of
		its fees and expenses, it shall apply the deposited money and the money from
		U.S. Government Obligations or Corporate Obligations in accordance with this
		Indenture to the payment of principal, premium, if any, and interest on the
		class or subclass of Notes.
	 

	 
		Section 11.04 Repayment to Issuer. The Trustee shall promptly turn over to the Issuer
		upon written request any excess money or securities held by it at any time
		after application of the appropriate defeasance option.
	 

	 
		Subject to any applicable abandoned property
		law, the Trustee shall pay to the Issuer upon written request any money held by
		it for the payment of principal or interest that remains unclaimed for two
		years and, thereafter, Holders entitled to the money must look to the Issuer
		for payment as general creditors.
	 

	 
		Section 11.05 Indemnity for Government Obligations and Corporate
		Obligations. The Issuer shall pay and
		shall indemnify the Trustee against any tax, fee or other charge imposed on or
		assessed against deposited U.S. Government Obligations or Corporate
		Obligations, or the principal and interest received on such U.S. Government
		Obligations or Corporate Obligations.
	 

	 
		Section 11.06 Reinstatement.
		If the Trustee is unable to apply any money or U.S. Government Obligations or
		Corporate Obligations in accordance with this Article XI by reason of any
		legal proceeding or by reason of any order or judgment of any court or
		governmental authority enjoining, restraining or otherwise prohibiting such
		application or otherwise, the Issuer’s obligations under this Indenture
		and the Notes shall be revived and reinstated as though no deposit had occurred
		pursuant to this Article XI until such time as the Trustee is permitted to
		apply all such money, U.S. Government Obligations or Corporate Obligations in
		accordance with this Article XI; provided,
		however, that, if the Issuer has made any payment of interest
		on or principal of any Notes because of the reinstatement of its obligations,
		the Issuer shall be subrogated to the rights of the Holders of such Notes to
		receive such payment from the money, U.S. Government Obligations or Corporate
		Obligations held by the Trustee.
	 

	 
		ARTICLE XII
  
	 

	 
		MISCELLANEOUS
	 

	 
		Section 12.01 Right of Trustee to Perform. If the Issuer for any reason fails to observe or
		punctually to perform any of its obligations to the Trustee, whether under this
		Indenture or any of the other Related Documents or otherwise, the Trustee shall
		have power (but shall have no obligation), on behalf of or in the name of the
		Issuer or otherwise, to perform such obligations and to take any steps 
	 

	 
		 
	 

	 
		124
	 

	 
		 
	 

	 
	 

	 

	 
		which the Trustee may, in its absolute
		discretion, consider appropriate with a view to remedying, or mitigating the
		consequences of, such failure by the Issuer; provided that no
		exercise or failure to exercise this power by the Trustee shall in any way
		prejudice the Trustee’s other rights under this Indenture or any of the
		other Related Documents.
	 

	 
		Section 12.02 Waiver. Any
		waiver by any party of any provision of this Indenture or any right, remedy or
		option hereunder shall only prevent and estop such party from thereafter
		enforcing such provision, right, remedy or option if such waiver is given in
		writing and only as to the specific instance and for the specific purpose for
		which such waiver was given. The failure or refusal of any party hereto to
		insist in any one or more instances, or in a course of dealing, upon the strict
		performance of any of the terms or provisions of this Indenture by any party
		hereto or the partial exercise of any right, remedy or option hereunder shall
		not be construed as a waiver or relinquishment of any such term or provision,
		but the same shall continue in full force and effect. No failure on the part of
		the Trustee to exercise, and no delay on its part in exercising, any right or
		remedy under this Indenture will operate as a waiver thereof, nor will any
		single or partial exercise of any right or remedy preclude any other or further
		exercise thereof or the exercise of any other right or remedy. The rights and
		remedies provided in this Indenture are cumulative and not exclusive of any
		rights or remedies provided by law. The Trustee shall notify the Paying Agent
		promptly of any waiver by any party of any provision of this Indenture pursuant
		to this Section 12.02.
	 

	 
		Section 12.03 Severability. In
		the event that any provision of this Indenture or the application thereof to
		any party hereto or to any circumstance or in any jurisdiction governing this
		Indenture shall, to any extent, be invalid or unenforceable under any
		applicable statute, regulation or rule of law, then such provision shall be
		deemed inoperative to the extent that it is invalid or unenforceable and the
		remainder of this Indenture, and the application of any such invalid or
		unenforceable provision to the parties, jurisdictions or circumstances other
		than to whom or to which it is held invalid or unenforceable, shall not be
		affected thereby nor shall the same affect the validity or enforceability of
		this Indenture. The parties hereto further agree that the holding by any court
		of competent jurisdiction that any remedy pursued by the Trustee hereunder is
		unavailable or unenforceable shall not affect in any way the ability of the
		Trustee to pursue any other remedy available to it.
	 

	 
		Section 12.04 Restrictions on Exercise of Certain Rights; Limited
		Recourse. (a) Each of the parties
		hereto (other than the Trustee) hereby agrees with the Trustee that, except as
		otherwise provided in Section 4.04 hereof, it shall not sue for recovery or
		take any other steps for the purpose of recovering any of the obligations
		hereunder or any other debts or liabilities whatsoever owing to it by the
		Issuer or any Issuer Subsidiary. Each of the parties hereto (other than the
		Trustee) hereby agrees with the Trustee that it shall not take any steps for
		the purpose of procuring the appointment of an administrative receiver, Irish
		law examiner, receiver or similar officer or the making of an administration
		order or for instituting any bankruptcy, reorganization, arrangement,
		insolvency, winding up, liquidation, composition, Irish law examinership or any
		like proceedings under the laws of Bermuda or any other jurisdiction in respect
		of either the Issuer or any Issuer Subsidiary or in respect of any of their
		respective liabilities.
	 

	 
		(b) Each of the parties hereto hereby agrees
		that all amounts payable by the Issuer or any Issuer Subsidiary in respect of
		the obligations hereunder shall be recoverable only from and to the extent
		of:
	 

	 
		(i) amounts on deposit in the
		Accounts;
	 

	 
		(ii) any other assets of the Issuer and the
		Issuer Subsidiaries and any proceeds thereof;
	 

	 
		 
	 

	 
		125
	 

	 
		 
	 

	 
	 

	 

	 
		(iii) in the case of any payments by way of
		indemnity to be made by the Issuer pursuant to any Related Document, to any
		liability insurance proceeds payable in respect of such indemnity obligation on
		the part of the Issuer; provided that
		any such liability insurance proceeds shall be held in trust for the Person
		entitled to the relevant indemnity by the recipient thereof; and
	 

	 
		(iv) any other Collateral pledged under the
		Security Trust Agreement,
	 

	 
		and in consequence the Trustee agrees
		(A) that it shall look solely to the foregoing property for payment of all
		amounts payable by the Issuer or any Issuer Subsidiary in respect of the
		obligations hereunder and that none of the Issuer nor any Issuer Subsidiary
		shall be otherwise personally liable therefor and (B) that it shall not
		petition for the bankruptcy, Irish law examinership, insolvency, winding up,
		liquidation, reorganization, amalgamation or dissolution of the Issuer or any
		Issuer Subsidiary (or any of their assets or undertakings); provided that if
		any such proceeding is commenced by any other Person, the Trustee shall be
		entitled to join, claim or prove in such proceeding; provided,
		however, that the foregoing provisions of this Section 12.04(b)
		shall not:
	 

	 
		(1) limit or restrict in any way the accrual
		of interest on any unpaid amount (although the limitations as to the personal
		liability of the Issuer and each Issuer Subsidiary shall apply to such interest
		on such unpaid amount); or
	 

	 
		(2) limit or restrict in any way the
		personal liability of the Issuer or any Issuer Subsidiary for the discharge or
		its nonmonetary obligations in relation to its covenants, undertakings,
		representations and warranties (or any monetary obligations arising from any
		breach thereof) under any Related Document.
	 

	 
		Section 12.05 Notices. All
		notices, demands, certificates, requests, directions, instructions and
		communications hereunder (“Notices”)
		shall be in writing and shall be effective (a) upon receipt when sent
		through the mails, registered or certified mail, return receipt requested,
		postage prepaid, with such receipt to be effective the date of delivery
		indicated on the return receipt, or (b) one Business Day after delivery to
		an overnight courier, or (c) on the date personally delivered to an
		authorized officer of the party to which sent, or (d) on the date
		transmitted by legible telecopier transmission with a confirmation of receipt,
		in all cases addressed to the recipient as follows:
	 

	 
		if to the Issuer, to:
	 

	 
		Babcock & Brown Air Funding I
		Limited
	 

	 
		c/o Codan Services Limited
	 

	 
		Claredon House
	 

	 
		2 Church Street
	 

	 
		Hamilton, HM 11
	 

	 
		Bermuda
	 

	 
		with a copy to:
	 

	 
		Babcock & Brown Aircraft Management Co
		Limited, as Administrative Agent
	 

	 
		West Pier, Dun Laoghaire
	 

	 
		County Dublin
	 

	 
		Ireland
	 

	 
		Attention: [    ] 
	 

	 
		Fax: [    ] 
	 

	 
		 
	 

	 
		126
	 

	 
		 
	 

	 
	 

	 

	 
		if to Deutsche Bank Trust Company Americas,
		the Trustee, the Operating Bank, the Security Trustee, the Reference Agent, the
		Registrar or the Paying Agent, to:
	 

	 
		Deutsche Bank Trust Company Americas
	 

	 
		60 Wall Street, 26th Floor
	 

	 
		MS NYC60-2606
	 

	 
		New York, New York 10005-2858
	 

	 
		Attention: Michele Hy Voon
	 

	 
		Fax: (212) 553-2461
	 

	 
		Telephone: (908) –608-3089
	 

	 
		with a copy to:
	 

	 
		Deutsche Bank National Trust Company
	 

	 
		1761 East St. Andrew Place
	 

	 
		Santa Ana, California 92705
	 

	 
		Attention: Matt A. Bowen
	 

	 
		Fax: 714-247-6409
	 

	 
		Telephone: (714) 247-6346
	 

	 
		if to the Policy Provider, to:
	 

	 
		Ambac Assurance Corporation
	 

	 
		One State Street Plaza
	 

	 
		New York, New York 10004
	 

	 
		Attention: Surveillance Department
	 

	 
		Fax: (212) 208-3527
	 

	 
		with a copy to:
	 

	 
		Ambac Assurance Corporation
	 

	 
		One State Street Plaza
	 

	 
		New York, New York 10004
	 

	 
		Attention: David Nemschoff
	 

	 
		Fax: (212) 208-3527
	 

	 
		if to the Initial Liquidity Facility
		Provider, to:
	 

	 
		BNP Paribas
	 

	 
		787 Seventh Avenue
	 

	 
		New York, New York 10019
	 

	 
		Attention: Aviation Finance Group
	 

	 
		Fax: 212-841-2146
	 

	 
		if to any Holder of a Definitive Note, to
		such Holder at its address set forth in the Register as of the applicable
		Record Date;
	 

	 
		 
	 

	 
		127
	 

	 
		 
	 

	 
	 

	 

	 
		for so long as the Notes are listed on the
		Irish Stock Exchange, if to the Listing Agent to:
	 

	 
		McCann Fitzgerald Listing Services
		Limited
	 

	 
		Riverside One
	 

	 
		Sir John Rogerson’s Quay
	 

	 
		Dublin 2, Ireland
	 

	 
		Attention: [    ] 
	 

	 
		Fax: [    ] 
	 

	 
		A copy of each notice given hereunder to any
		party hereto shall also be given to each of the other parties hereto. Each
		party hereto may, by notice given in accordance herewith to each of the other
		parties hereto, designate any further or different address to which subsequent
		Notices shall be sent.
	 

	 
		Section 12.06 Assignments; Third Party Beneficiary. This Indenture shall be a continuing obligation of the
		Issuer and shall (a) be binding upon the Issuer and its successors and
		assigns and (b) inure to the benefit of and be enforceable by the Trustee,
		and by its successors, transferees and assigns. The Issuer may not assign any
		of its obligations under this Indenture, or other than as provided in Section
		5.04 delegate any of its duties hereunder. Each Eligible Credit Facility shall
		be a third party beneficiary of Sections 3.09, 9.01 and 9.03, as applicable.
		Each Hedge Provider, the Servicer and each of the Sellers shall each be a third
		party beneficiary of each provision of this Indenture that affects any of its
		rights or obligations under this Indenture or any Related Document, including
		(with respect to the Servicer and each of the Sellers only) the provisions
		hereof providing for Priority Expense payment and Lien priority for amounts
		payable to the Servicer or any of the Sellers under the Servicing Agreement or
		the Asset Purchase Agreement or any other Related Document.
	 

	 
		Section 12.07 Currency Conversion. (a) If any amount is received or recovered by the Cash
		Manager or the Trustee in respect of this Indenture or any part thereof
		(whether as a result of the enforcement of the security created under the
		Security Trust Agreement or pursuant to this Indenture or any judgment or order
		of any court or in the liquidation or dissolution of the Issuer or by way of
		damages for any breach of any obligation to make any payment under or in
		respect of the Issuer’s obligations hereunder or any part thereof or
		otherwise) in a currency (the “Received Currency”) other than the currency in which such amount was
		expressed to be payable (the “Agreed Currency”), then the amount in the Received Currency
		actually received or recovered by the Trustee or the Cash Manager shall, to the
		fullest extent permitted by Applicable Law, only constitute a discharge to the
		Issuer to the extent of the amount of the Agreed Currency which the Cash
		Manager or the Trustee was or would have been able in accordance with its
		normal procedures to purchase on the date of actual receipt or recovery (or, if
		that is not practicable, on the next date on which it is so practicable), and,
		if the amount of the Agreed Currency which the Cash Manager or Trustee is or
		would have been so able to purchase is less than the amount of the Agreed
		Currency which was originally payable by the Issuer, the Issuer shall pay to
		the Cash Manager such amount as the Cash Manager shall determine to be
		necessary to indemnify the Trustee and the Cash Manager against any loss
		sustained by it as a result (including the cost of making any such purchase and
		any premiums, commissions or other charges paid or Incurred in connection
		therewith) and so that such indemnity, to the fullest extent permitted by
		Applicable Law, (i) shall constitute a separate and independent obligation
		of the Issuer distinct from its obligation to discharge the amount which was
		originally payable by the Issuer and (ii) shall give rise to a separate
		and independent cause of action and apply irrespective of any indulgence
		granted by the Cash Manager or the Trustee and continue in full force and
		effect notwithstanding any judgment, order, claim or proof for a liquidated
		amount in respect of the amount originally payable by the Issuer or any
		judgment or order and no proof or evidence of any actual loss shall be
		required.
	 

	 
		 
	 

	 
		128
	 

	 
		 
	 

	 
	 

	 

	 
		(b) For the purpose of or pending the
		discharge of any of the moneys and liabilities hereby secured the Cash Manager
		may, or cause the Operating Bank to, convert any moneys received, recovered or
		realized by the Cash Manager under this Indenture (including the proceeds of
		any previous conversion under this Section 12.07) or any funds currently
		maintained in any account hereunder from their existing currency of
		denomination into the currency of denomination (if different) of such moneys
		and liabilities and any conversion from one currency to another for the
		purposes of any of the foregoing shall be made at the Trustee’s then
		prevailing spot selling rate at its office by which such conversion is made. If
		not otherwise required to be applied in the Received Currency, the Cash
		Manager, acting on behalf of the Security Trustee, shall promptly convert any
		moneys in such Received Currency other than U.S. dollars into U.S. dollars.
		Each previous reference in this Section 12.07 to a currency extends to funds of
		that currency and funds of one currency may be converted into different funds
		of the same currency. The cost and expense of any such conversion shall be
		added to and reflected in the rate obtained for conversion and in no event
		shall the Cash Manager or any of its affiliates be liable in respect of the
		exchange rate obtained for any such conversion or any related cost or
		expense.
	 

	 
		Section 12.08 Application to Court. The Trustee may at any time after the service of a
		Default Notice apply to any court of competent jurisdiction for an order that
		the terms of this Indenture be carried into execution under the direction of
		such court and for the appointment of a Receiver of the Collateral or any part
		thereof and for any other order in relation to the administration of this
		Indenture as the Trustee shall deem fit and it may assent to or approve any
		application to any court of competent jurisdiction made at the instigation of
		any of the Holders or the Policy Provider and shall be indemnified by the
		Issuer against all costs, charges and expenses Incurred by it in relation to
		any such application or proceedings.
	 

	 
		Section 12.09 Governing Law.
		THIS 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.
	 

	 
		Section 12.10 Jurisdiction.
		(a)  Each of the parties hereto agrees that the United States of America
		federal and New York State courts located in The City of New York shall have
		jurisdiction to hear and determine any suit, action or proceeding, and to
		settle any disputes, which may arise out of or in connection with this
		Indenture and, for such purposes, submits to the jurisdiction of such courts.
		Each of the parties hereto waives any objection which it might now or hereafter
		have to the United States of America federal or New York State courts located
		in The City of New York being nominated as the forum to hear and determine any
		suit, action or proceeding, and to settle any disputes, which may arise out of
		or in connection with this Indenture and agrees not to claim that any such
		court is not a convenient or appropriate forum. Each of the parties hereto
		(except for the Cash Manager, Operating Bank, Trustee, Initial Liquidity
		Facility Provider and Policy Provider) agrees that the process by which any
		suit, action or proceeding is begun may be served on it by being delivered in
		connection with any suit, action or proceeding in the city of New York to
		[____________], and each of the parties hereby appoints [_________] its
		designee, appointee and agent to receive, accept and acknowledge for and on its
		behalf such service of legal process, with the exception of the Trustee, who
		hereby consents to receive any such service of process directly at the address
		set forth in Section 12.05 herein.
	 

	 
		(b) The submission to the jurisdiction of
		the courts referred to in Section 12.10(a) shall not (and shall not be
		construed so as to) limit the right of the Trustee (and if the Trustee is not
		the Controlling Party, the Controlling Party) to take proceedings against the
		Issuer in any other court of competent jurisdiction nor shall the taking of
		proceedings in any one or more jurisdictions preclude the taking of proceedings
		in any other jurisdiction, whether concurrently or not.
	 

	 
		 
	 

	 
		129
	 

	 
		 
	 

	 
	 

	 

	 
		(c) Each of the parties hereto hereby
		consents generally in respect of any legal action or proceeding arising out of
		or in connection with this Indenture to the giving of any relief or the issue
		of any process in connection with such action or proceeding, including the
		making, enforcement or execution against any property whatsoever (irrespective
		of its use or intended use) of any order or judgment which may be made or given
		in such action or proceeding.
	 

	 
		Section 12.11 Counterparts.
		This Indenture may be executed in two or more counterparts by the parties
		hereto, and each such counterpart shall be considered an original and all such
		counterparts shall constitute one and the same instrument.
	 

	 
		Section 12.12 Table of Contents, Headings, Etc. The Table of Contents and headings of the Articles and
		Sections of this Indenture have been inserted for convenience of reference
		only, are not to be considered a part hereof and shall in no way modify or
		restrict any of the terms and provisions hereof.
	 

	 
		Section 12.13 Compliance with Applicable Anti-Terrorism and Anti-Money
		Laundering Regulations. In order to
		comply with laws, rules, regulations and executive orders in effect from time
		to time applicable to banking institutions, including those relating to the
		funding of terrorist activities and money laundering (“Applicable Regulations”), the Trustee is required to obtain, verify and
		record certain information relating to individuals and entities which maintain
		a business relationship with. Accordingly, each of the parties agrees to
		provide to Trustee upon its request from time to time such identifying
		information and documentation as may be available for such party in order to
		enable the Trustee to comply with Applicable Regulations.
	 

	 
		 
	 

	 
		130
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the parties hereto have
		caused this Indenture to be duly executed, all as of the date first written
		above.
	 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIRFUNDING I
				  LIMITED, as the Issuer
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  DEUTSCHE BANK TRUST COMPANY
				  AMERICAS, as the Operating Bank and Trustee
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	  

	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  DEUTSCHE BANK TRUST COMPANY
				  AMERICAS, as the Cash Manager
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	  

	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
	 

	 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  AMBAC ASSURANCE CORPORATION, as the
				  Policy Provider
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BNP PARIBAS, as the Initial
				  Liquidity Facility Provider
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By 
				

			 	
				
				  

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 1
  
	 

	 
		INITIAL AIRCRAFT
	 

	  

	 

	 
			
				
				  MSN
				

			 	
				
				   
				

			 	
				
				  Type of Aircraft
				

			 	
				
				   
				

			 	
				
				  Aircraft Owner
 [Weil to
				  Update]
				

			 	
				
				   
				

			 	
				
				  Date of Manufacture
				

			 
	
				
				  [TBD]
				

			 	
				
				   
				

			 	
				
				  A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sep 2006
				

			 
	
				
				  743
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sep 1997
				

			 
	
				
				  747
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Oct 1997
				

			 
	
				
				  0533
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Mar 1995
				

			 
	
				
				  0545
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jun 1995
				

			 
	
				
				  0548
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jul 1995
				

			 
	
				
				  0553
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sep 1995
				

			 
	
				
				  0559
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Oct 1995
				

			 
	
				
				  0562
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Oct 1995
				

			 
	
				
				  0566
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Nov 1995
				

			 
	
				
				  0574
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jan 1996
				

			 
	
				
				  0888
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sep 1998
				

			 
	
				
				  1140
				

			 	
				
				   
				

			 	
				
				  A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Nov 1999
				

			 
	
				
				  1159
				

			 	
				
				   
				

			 	
				
				  A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jan 2000
				

			 
	
				
				  2522
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Aug 2005
				

			 
	
				
				  2616
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jan 2006
				

			 
	
				
				  2670
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jan 2006
				

			 
	
				
				  2728
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Apr 2006
				

			 
	
				
				  2740
				

			 	
				
				   
				

			 	
				
				  A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Mar 2006
				

			 
	
				
				  2979
				

			 	
				
				   
				

			 	
				
				  A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jan 2007
				

			 
	
				
				  24528
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sep 1989
				

			 
	
				
				  25232
				

			 	
				
				   
				

			 	
				
				  B737-500
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Feb 1992
				

			 
	
				
				  25233
				

			 	
				
				   
				

			 	
				
				  B737-500
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Mar 1992
				

			 
	
				
				  25402
				

			 	
				
				   
				

			 	
				
				  B737-300QC
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Oct 1991
				

			 
	
				
				  27974
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Nov 1996
				

			 
	
				
				  27975
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Nov 1997
				

			 
	
				
				  27976
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jul 1998
				

			 
	
				
				  28040
				

			 	
				
				   
				

			 	
				
				  B767-300ER
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Apr 1996
				

			 
	
				
				  28595
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  May 1999
				

			 
	
				
				  28608
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Oct 1999
				

			 
	
				
				  29052
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  May 2000
				

			 
	
				
				  29330
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Dec 1998
				

			 
	
				
				  29942
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Apr 1999
				

			 
	
				
				  29944
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jun 1999
				

			 
	
				
				  29945
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jun 1999
				

			 
	
				
				  29946
				

			 	
				
				   
				

			 	
				
				  B757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jun 1999
				

			 
	
				
				  30784
				

			 	
				
				   
				

			 	
				
				  B737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jun 2001
				

			 
	
				
				  30785
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Nov 2001
				

			 
	
				
				  34293
				

			 	
				
				   
				

			 	
				
				  B737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jul 2005
				

			 
	
				
				  34295
				

			 	
				
				   
				

			 	
				
				  B737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jul 2005
				

			 
	
				
				  34704
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Jun 2006
				

			 
	
				
				  34896
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Feb 2006
				

			 
	
				
				  34898
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Nov 2006
				

			 
	
				
				  34899
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Dec 2006
				

			 
	
				
				  35089
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Aug 2006
				

			 
	
				
				  35211
				

			 	
				
				   
				

			 	
				
				  B737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Dec 2006
				

			 

 

	  

	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2
  
	 

	 
		ISSUER
		SUBSIDIARIES*
	 

	 
		[Weil to Provide]
	 

	  

	 

	 
			
				
				  Name of Subsidiary
				

			 	
				
				   
				

			 	
				
				  Jurisdiction of
				  Incorporation
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		______________
	 

	 
		*List to be updated as necessary on Closing
		Date.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 3
  
	 

	 
		POOL FACTORS
	 

	  

	 

	 
			
				
				  Payment Date

				  Occurring In
				

			 	
				
				   
				

			 	
				
				  Pool Factor
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 4
  
	 

	 
		EXTENDED POOL FACTORS

		 
	 

	 
	 

	 

	 
		SCHEDULE 5
  
	 

	 
		MINIMUM TARGET PRINCIPAL
		BALANCE
	 

	  

	 

	 
			
				
				  Payment Date

				  Occurring In
				

			 	
				
				   
				

			 	
				
				  Minimum Target

				  Principal Balance ($)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
	 

	 

	 
		SCHEDULE 6
  
	 

	 
		AMORTIZATION PERCENTAGES
	 

	  

	 

	 
			
				
				  Payment Date

				  Occurring In
				

			 	
				
				   
				

			 	
				
				  Amortization

				  Percentage
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 7
	 

	 
		INITIAL LEASES - CURRENT WAR RISK
		COVERAGE AMOUNTS
	 

	  

	 

	 
			
				
				  Aircraft MSN
				

			 	
				
				  War Risk Coverage

				  Amount – US$
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 

 

	  

	 

	 
		Sch. 7-2
	 

	 
	 

	 

	 
		SCHEDULE 8
	 

	 
		ALLOCABLE RENT AMOUNTS

		 
	 

	 
		Sch. 7-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]