Document:

Exhibit

EXHIBIT 10.20

SIXTH AMENDMENT TO LEASE 
ZENDESK, INC.

This Sixth Amendment to Lease (this "Amendment") is made as of the th day of January 25, 2019 (the "Effective Date") by and between ASB 989 MARKET, LLC, a Delaware limited liability company ("Landlord"), and ZENDESK, INC., a Delaware corporation ("Tenant").

Background

Reference is made to an Office Lease dated April 29, 2011, and that certain Addendum to Office Lease attached thereto (collectively, the "Office Lease"), which lease has been amended by that certain First Amendment to Lease dated June 28, 2011 (the "First Amendment"), that certain Second Amendment to Lease entered into as of August 11, 2011 (the "Second Amendment"), that certain Third Amendment to Lease entered into as of September 11, 2013 (the "Third Amendment"), that certain Fourth Amendment to Lease dated as of January 19, 2017 (the "Fourth Amendment"), and that certain Fifth Amendment to Lease dated August 2, 2017 (the "Fifth Amendment") (the Office Lease, as so amended, being referred to herein as the "Original Lease") between Landlord, as successor-in-interest to HMC Mid-Market Ventures LLC, and Tenant for certain premises containing a total of 86,701 rentable square feet ("RSF") consisting of the entire second floor (17,588 RSF), third floor (17,303 RSF), fourth floor (17,290 RSF), fifth floor (17,298 RSF) and sixth floor (17,222 RSF) of the building located at 989 Market Street, San Francisco, California. Tenant also leases certain storage space pursuant to the terms of the Fourth Amendment and the Fifth Amendment. Capitalized terms used and not otherwise defined in this Amendment shall have the meanings ascribed to them in the Original Lease.

Landlord and Tenant desire to enter into this Amendment to clarify certain matters with respect to Fifth Amendment and extend the Lease Term with respect to certain portions of the Premises on the terms more particularly set forth in this Amendment. All references to the "Lease" shall mean the Original Lease as amended by this Amendment.

Agreement

FOR VALUE RECEIVED, Landlord and Tenant agree as follows:

1.    Floors 4-6 Lease Term.

(a)    4-6 Term Dates. The Lease Term for the 51,810 RSF of space consisting of the entire fourth (4th) (17,290 RSF), fifth (5th) (17,298 RSF) and sixth (6th) (17,222 RSF) floors of the Building (such space defined as the "Added Premises" in the Fifth Amendment, and defined herein for purposes of this Amendment as "Floors 4-6") commenced on August 1, 2018, for a term of sixty-three (63) full calendar months with an Expiration Date of October 31, 2023. The Lease Term for Floors 4-6 is defined as the "Expansion Term" in the Fifth Amendment and shall be defined herein for this Amendment as the "4-6 Term."
 
(b)    4-6 Term Renewal Option. Tenant has one (1) option to extend the 4-6 Term to an Expiration Date of June 30, 2027, pursuant to Section 6 of the Fifth Amendment.

(c)    4-6 Term Base Year; Tenant’s Pro Rata Share. The Base Year for Floors 4-6 is calendar year 2018 and for purposes of calculating Tenant’s Pro Rata Share for Shared Expenses, Tenant’s Pro Rata Share for Floors 4-6 is 46.39% (i.e., 51,810/111,682).

(d)    4-6 Term Base Rent. During the 4-6 Term, Tenant shall pay monthly installments of Base Rent with respect to Floors 4-6 as follows:

	
				
	4-6 Term
	Annual Base Rent
	Monthly Base Rent
	Rate per RSF (51,810 RSF)

	August 1, 2018 through
July 31, 2019
	$3,782,130.00
	$315,177.50
	$73.00

	August 1, 2019 through
July 31, 2020
	$3,895,593.90
	$324,632.83
	$75.19

	August 1, 2020 through
July 31, 2021
	$4,012,684.50
	$334,390.38
	$77.45

	August 1, 2021 through
July 31, 2022
	$4,132,883.70
	$344,406.98
	$79.77

	August 1, 2022 through
July 31, 2023
	$4,256,709.60
	$354,725.80
	$82.16

	August 1, 2023 through
October 31, 2023
	$4,384,680.30
(portion)
	$365,390.03
	$84.63

2.    Floors 2-3 Lease Term.

(a)    2-3 Term Extension. Upon the expiration of the current Lease Term with respect to 34,891 RSF of space consisting of the entire second (17,588 RSF) and third (17,303 RSF) floors of the Building (such space defined as the "Existing Premises" in the Fifth Amendment, and defined herein for purposes of this Amendment as "Floors 2-3"), commencing on November 1, 2019 ("2-3 Extended Term Commencement Date"), the Lease Term for Floors 2-3 shall be extended for an additional period of forty-two (42) full calendar months (the "2-3 Extended Term"), expiring as of April 30, 2023, such extension to be on the same terms as set forth in the Original Lease, except as modified by this Amendment.

(b)    2-3 Extended Term Base Rent. During the 2-3 Extended Term, Tenant shall pay monthly installments of Base Rent with respect to Floors 2-3 as follows:

	
				
	2-3 Extended Term
	Annual Base Rent
	Monthly Base Rent
	Rate per RSF (34,891 RSF)

	November 1, 2019 through
October 31, 2020
	$2,756,389.00
	$229,699.08
	$79.00

	November 1, 2020 through
October 31, 2021
	$2,839,080.67
	$236,590.06
	$81.37

	November 1, 2021 through
October 31, 2022
	$2,924,253.09
	$243,687.76
	$83.81

	November 1, 2022 through April 30, 2023
	$3,011,980.68 (portion)
	$250,998.39
	$86.33

(c)    As-Is. Upon the 2-3 Extended Term Commencement Date, Floors 2-3 shall be leased in their "as-is" condition without representation or warranty by Landlord, and Landlord shall not be required to perform any work in connection with Tenant’s occupancy of Floors 2-3 during the 2-3 Extended Term, subject to any of Landlord’s ongoing obligations of maintenance and repair pursuant to the Original Lease which shall continue in full force and effect during the 2-3 Extended Term.

(d)    2-3 Extended Term Renewal Option. Tenant has exercised its First Renewal Term (as defined in the Third Amendment), as evidenced by this Amendment. Tenant has one (1) option to extend the 2-3 Extended Term for an additional period of fifty (50) months, commencing on May 1, 2023 and expiring on June 30, 2027, pursuant to Section 6(b) of the Third Amendment.

(e)    2-3 Extended Term Base Year. Subject to Section 3 of this Amendment, Tenant shall continue to pay Tenant’s Pro Rata Share of Shared Expenses as a component of Additional Rent pursuant to the Original Lease, except that from and after the 2-3 Extended Term Commencement Date, the Base Year for Floors 2-3 shall mean calendar year 2019. For purposes of calculating Tenant’s Pro Rata Share for Shared Expenses, Tenant’s Pro Rata Share for Floors 2-3 is 31.24% (i.e., 34,891/111,682).

(f)    Tenant Improvements; Tenant Improvement Allowance. Provided Tenant is not in default under the Lease beyond any applicable notice and cure periods, Tenant shall be entitled to a tenant improvement allowance (the "2-3 Tenant Improvement Allowance") in the amount of up to, but not exceeding Ten Dollars ($10.00) per RSF of Floors 2-3 (i.e., up to Three Hundred Forty-Eight Thousand Nine Hundred Ten Dollars ($348,910.00)), for the costs incurred in connection with any Alterations performed by Tenant to Floors 2-3 at any time after the Effective Date (the "2-3 Tenant Improvement Costs"). Tenant may only use the 2-3 Tenant Improvement Allowance for Allowance Items (as defined in Section 4(b)(iii) of the Third Amendment) related to 2-3 Tenant Improvement Costs. For the avoidance of doubt, all work done by or on behalf of Tenant in connection with any Alterations shall be in accordance with the Lease, including, without limitation, Section 10.4 of the Office Lease, Section 4(d) of the Fifth Amendment and Section 2(f) of this Amendment.

(i)    Except as modified by this Section 2(f)(i), disbursements of the 2-3 Tenant Improvement Allowance shall be made in accordance with Section 4(c) of the Third Amendment, and the provisions thereof dealing with the Allowance (as defined under Section 4(b)(i) of the Third Amendment) shall be deemed to be applicable  to the 2-3 Tenant Improvement Allowance for purposes of this Amendment. In addition to the disbursement requirements of Section 4(c) of the Third Amendment, Tenant shall provide to Landlord certifications that the work has been completed in accordance with Landlord’s contractor selection and payment policy as set forth in Section 4(d) of the Fifth Amendment. All 2-3 Tenant Improvement Costs in excess of the 2-3 Tenant Improvement Allowance shall be paid by Tenant without reimbursement by Landlord.
 
(ii)    If Tenant has not used the entire amount of the 2-3 Tenant Improvement Allowance prior to the first  (1st) anniversary of the 2-3 Extended Term Commencement Date in accordance with this Section 2(f), then any unused portion of the 2-3 Tenant Improvement Allowance that Tenant is entitled to use, up to but not in excess of the Converted Allowance Cap (defined below), shall automatically be credited against the monthly installment(s) of Base Rent next due and payable to Landlord under the Lease until exhausted. As used herein, "Converted Allowance Cap" shall mean One Hundred Fifteen Thousand One Hundred Forty Dollars ($115,140.00). Tenant shall have no right to, and Landlord shall have no obligation to fund, any 2-3 Tenant Improvement Allowance not properly requisitioned by Tenant on or before the first (1st) anniversary of the 2-3 Extended Term Commencement Date  or applied towards Base Rent in accordance with this Section 2(f).

3.    Real Estate Taxes. For the avoidance of doubt, Tenant shall be responsible for Tenant’s Pro Rata Share of the Early Childcare and Education Commercial Rents Tax (passed in the City of San Francisco on June 5, 2018, as "Proposition C") (the "Commercial Rents Tax"). Notwithstanding anything in the Lease to the contrary, Tenant shall pay to Landlord as a component of Additional Rent Tenant’s Pro Rata Share of the Commercial Rents Tax for any calendar year (including the Base Year and any Commercial Rents Tax paid by Landlord during the Base Year shall not be included in the calculation of Real Estate Taxes for the Base Year) in which such tax is imposed upon Landlord by the City of San Francisco.

4.    Storage Locker; Suite B3. Upon the expiration of the Lease Term for the Storage Locker and Suite B3, commencing on November 1, 2019 ("Storage Extended Term Commencement Date"), the Lease Term for the Storage Locker and Suite B3 shall be extended to coincide with the 4-6 Term, such extension to be on the same terms as set forth in the Original Lease, except as modified by this Amendment.  Upon the Storage Extended Term Commencement Date, the Storage Locker and Suite B3 shall be leased in their "as-is" condition without representation or warranty by Landlord, and Landlord shall not be required to perform any work in connection with Tenant’s use or occupancy of the Storage Locker and Suite B3; provided however, the foregoing will not be interpreted to diminish Landlord’s ongoing repair and maintenance obligations as set for in the Original Lease.

5.    Letter of Credit Security Deposit. No additional security deposit shall be required in connection with this Amendment.

6.    Brokerage. Each party hereto represents and warrants to the other that it has had no dealings with any broker or agent in connection with this Amendment, except for Sansome Street Advisors and Newmark Cornish & Carey. Each Party hereto covenants to defend (by counsel reasonably acceptable to the other party), pay, hold harmless and indemnify the other party from and against any and all costs, expense or liability for any compensation, commissions, and charges claimed by any broker or agent, with respect to this Amendment or the negotiation thereof arising from a breach of the foregoing warranty. Landlord shall pay all commissions due to Sansome Street Advisors and Newmark Cornish & Carey in connection with this Amendment pursuant to a separate written agreement.

7.    Definitions. References to "Lease Term" in the Original Lease shall be deemed to include the current Lease Term for Floors 2-3, the 2-3 Extended Term and the 4-6 Term. References to "Premises" in the Original Lease shall be deemed to include Floors 2-3, Floors 4-6,
 
the Storage Locker and Suite B3, each for the applicable Lease Term. References to "Base Year" in the Original Lease shall be deemed to mean the Base Year for Floors 2-3 and the Base Year for Floors 4-6, as applicable. References to "Tenant’s Pro-Rata Share" in the Original Lease shall be deemed to mean Tenant’s Pro-Rata Share for Floors 2-3 and Tenant’s Pro-Rata Share for Floors 4-6, as applicable. References to "Base Rent" in the Original Lease shall be deemed to mean Base Rent for Floors 2-3 and Base Rent for Floors 4-6, as applicable.

8.    Ratification. Except as set forth herein, the terms and provisions of the Original Lease are hereby ratified and 

confirmed. In the event of any conflict  or inconsistency between the provisions of the Original Lease and the provisions of this Amendment, the provisions of this Amendment shall control. Tenant hereby warrants and represents that, to the best of its knowledge (a) as of the Effective Date the parties have complied with all of the terms and conditions of the Original Lease, (b) Tenant has no current rights to any credit, claim, cause of action, offset or similar charge against Landlord or the Base Rent existing as of the Effective Date, except as specifically set forth in the Fifth Amendment with respect to the TI Allowance and this Amendment with respect to the 2-3 Tenant Improvement Allowance, and (c) without Landlord’s prior written consent there have been no assignees, sublessees or transferees of the Original Lease, or any person or firm occupying or having the right in the future to occupy the Premises, or any part thereof, except Tenant. Landlord hereby warrants and represents that, to the best of its knowledge, as of the Effective Date, the parties have complied with all of the terms and conditions of the Original Lease.

9.    Miscellaneous. The recitals set forth above in this Amendment  are hereby incorporated by this reference. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective beneficiaries, successors and assigns. This Amendment shall be construed and enforced in accordance with, and governed by, the laws of the State of California. Each party has cooperated in the drafting and preparation of this Amendment and, therefore, in any construction to be made of this Amendment, the same shall not be construed against either party. This Amendment may be executed in counterparts, and when both Landlord and Tenant have signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, shall constitute one Amendment, which shall be binding upon and effective as to Landlord and Tenant. This Amendment may be executed in "pdf’ format and each party has the right to rely upon a pdf counterpart of this Amendment signed by the other party to the same extent as if such party had received an original counterpart. In case any one or more of the provisions contained in this Amendment shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Amendment, and this Amendment shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

[signature page follows]
 
IN WITNESS WHEREOF, this Amendment has been executed as of the Effective Date.

LANDLORD:

ASB 989 MARKET, LLC,
a Delaware limited liability company

By: /s/ David Quigley
Name: David Quigley
Title: Senior Vice President

TENANT:

ZENDESK, INC.,
a Delaware corporation

By: /s/ Elena Gomez
Name: Elena Gomez
Title: Chief Financial OfficerExhibit 10.1

 

EXECUTION COPY

 

 

 

CREDIT AGREEMENT

 

dated as of February 7, 2019

 

among

 

ACY SN 19002 LIMITED

 

ACY SN 19003 LIMITED

 

ACY E-175 LLC

 

and

 

ACY SN 15129 LLC

as Borrowers

 

THE PARTICIPANTS PARTY HERETO

 

NORDDEUTSCHE LANDESBANK GIROZENTRALE,
NEW YORK BRANCH

as Agent

 

NORDDEUTSCHE LANDESBANK GIROZENTRALE

as Swap Counterparty

 

WILMINGTON TRUST COMPANY

as Security Trustee

 

Aircraft Credit Facility

 

Up to $47,000,000

___________________

 

Norddeutsche Landesbank Girozentrale,
New York Branch

Mandated Lead Arranger

  

 

 

     

     

    

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	SECTION 1.	DEFINITIONS	1
	 	 	 
	SECTION 2. 	THE LOANS	1
	 	 	 
	2.1 	Commitments to Lend	1
	2.2	Notice of Borrowing	2
	2.3 	Funding Procedure	2
	2.4 	Deposit; Commitment Cancellation	3
	2.5 	Debt Rate; Hedging; Amortization Schedules	3
	2.6 	Manner of Payment	5
	2.7 	Fees	5
	2.8	Air Nostrum Aircraft Payments	6
	 	 	 
	SECTION 3.	CONDITIONS PRECEDENT	6
	 	 	 
	3.1	Conditions Precedent to the Closing Date	6
	3.2 	Conditions Precedent to a Drawdown Date	8
	3.3 	Conditions Subsequent	14
	 	 	 
	SECTION 4.	REPRESENTATIONS AND WARRANTIES	14
	 	 	 
	4.1 	Borrowers	14
	 	 	 
	SECTION 5.	CERTAIN COVENANTS	18
	 	 	 
	5.1 	The Borrowers	18
	5.2 	Section 2.13 of the Security Agreement	25
	5.3 	No Action Contrary to Lessee’s Rights Under the Lease	25
	5.4 	Ownership Interests	25
	5.5  	Residual Value Guarantees	25
	 	 	 
	SECTION 6. 	THE AGENT AND SECURITY TRUSTEE	26
	 	 	 
	6.1	Appointment, Powers and Immunities	26
	6.2 	Reliance by Agent and Security Trustee	27
	6.3 	Defaults	27
	6.4 	Indemnification	28
	6.5  	Non-Reliance on Agent, Security Trustee and Other Holder of a Loan Certificate	28
	6.6 	Failure to Act	28
	6.7  	Resignation or Removal of Agent and Security Trustee	29
	6.8 	Consents Under Operative Documents	29
	 	 	 
	SECTION 7. 	MISCELLANEOUS	29
	 	 	 
	7.1 	Notices	29
	7.2  	Rights Cumulative	29

 

     i

     

    

  

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	7.3 	Waivers; Amendments	30
	7.4	Assignment	30
	7.5 	Severability	31
	7.6  	Headings	31
	7.7  	Governing Law; Counterpart Form	31
	7.8  	Indemnification	31
	7.9  	Waiver of Jury	32
	7.10 	Jurisdiction	33
	7.11 	Expenses	33
	7.12 	Confidentiality	34
	7.13  	Money Laundering	34
	7.14 	Compliance with Anti-Money Laundering, Sanctions and OFAC Laws	34
	7.15 	Contractual Bail-In	36
	7.16 	Non-Recourse Obligations	36

 

	Annex A 	–	Definitions and Construction
	 	 	 
	Schedule I 	–	Address for Notices and Payment Instructions
	Schedule II 	–	Aircraft; Lessors; Lessees; Loan Amounts; Applicable Margins; Maturity Dates; Leases
	Schedule III	–	Local Law Requirements
	Schedule IV	–	Repayment Schedules
	 	 	 
	Exhibit A	–	Form of Notice of Borrowing
	Exhibit B-1	–	Form of Borrower Pledge Agreement
	Exhibit B-2	–	Form of Borrower Parent Pledge Agreement

 

     ii

     

    

  

CREDIT AGREEMENT, dated as of
February 8, 2019 (this “Agreement”), among ACY SN 19002 LIMITED, a limited liability company
incorporated under the laws of England (the “19002 Borrower”), ACY SN 19003 LIMITED, a
limited liability company incorporated under the laws of England (the “19003 Borrower ”), ACY E-175
LLC, a limited liability company organized under the laws of the State of Delaware (the “Republic
Borrower”), ACY SN 15129 LLC, a limited liability company organized under the laws of the State of Delaware
(the “Adria Borrower” and, together with the 19002 Borrower, the 19003 Borrower and the Republic Borrower,
each individually a “Borrower” and, collectively, the “Borrowers”), each of the
participants that is a signatory hereto identified under the caption “PARTICIPANTS” on the signature pages hereto
or which, pursuant to Section 7.4 hereof, shall become a “Participant” hereunder (individually, a
“Participant” and, collectively, the “Participants”), NORDDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK BRANCH (“Nord/LB”), as agent (in such capacity, the “Agent”), NORDDEUTSCHE
LANDESBANK GIROZENTRALE, as swap counterparty (in such capacity, the “Swap Counterparty”) and WILMINGTON TRUST
COMPANY, as security trustee (the “Security Trustee”).

 

WHEREAS, each of the parties hereto
has agreed to enter into this Agreement to provide for the financing of certain aircraft by the Participants; and

 

WHEREAS, such aircraft will be mortgaged
to, and the Lease associated with such aircraft will be assigned to, the Security Trustee, for the benefit of the Participants,
pursuant to the Security Agreement (as defined in Annex A to this Agreement).

 

NOW THEREFORE, for good and valuable
consideration, the receipt of which has been duly received, the parties hereto agree as follows:

 

Section 1.      
Definitions. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth
in Part I of Annex A to this Agreement and the Loan Operative Documents shall be interpreted in accordance with the rules of construction
set forth in Part II of Annex A to this Agreement.

 

Section 2.      The Loans.

 

2.1       Commitments
to Lend.

 

(a)       Subject
to the terms and conditions of this Agreement, on the Drawdown Date for each Aircraft, each Participant agrees to fund an amount
equal to its Participation Percentage of the Loan Amount for such Aircraft to the Security Trustee to enable a loan (a “Loan”)
for such Aircraft to be made to the Borrower of such Loan during the Availability Period. The 19002 Borrower shall be the “Borrower”
for the Loan secured by the 19002 Aircraft. The 19003 Borrower shall be the “Borrower” for the Loan secured by the
19003 Aircraft. The Republic Borrower shall be the “Borrower” for each of the Loans secured by a Republic Aircraft.
The Adria Borrower shall be the “Borrower” for the Loan secured by the Adria Aircraft. Unless the context shall otherwise
require, for all purposes of this Agreement and the other Loan Operative Documents, the Loan for any Aircraft shall be equal to
the aggregate outstanding principal amount of the Loan Certificates relating thereto.

 

     

     

    

  

[Credit Agreement]

 

(b)       Subject
to Section 5.1(s), no Loan shall be advanced unless the Basic Rent for the related Lease shall, on a Dollar-for-Dollar basis, support
the debt service requirements for such Loan specified in Section 2.5 (other than any balloon pursuant to Section 2.5(c)). If the
condition specified in the first sentence of this Section 2.1(b) is not satisfied, then the Loan Amount of such Loan shall be reduced
to such Loan Amount as shall satisfy the debt service coverage condition.

 

2.2       Notice
of Borrowing. The relevant Borrower of a Loan shall deliver to the Agent a Notice of Borrowing by 2:00 p.m. (New York time)
at least three Business Days (or such shorter period as the Participants may otherwise agree) before the intended Drawdown Date
for such Loan, which notice:

 

(a)       shall specify:

 

(i)       the
Business Day on which the Drawdown Date is proposed to occur (for any Loan, its “Scheduled Drawdown Date”);

 

 (ii)      the Loan Amount of such Loan; and

 

(iii)     wire instructions for the disbursement
of such Loan on the Drawdown Date therefor; and

 

(b)       shall specify the manufacturer’s serial number and registration number of the relevant Aircraft and the manufacturer’s
serial numbers of each Engine relating to such Aircraft; and

 

(c)       shall contain an indemnity by the Borrower of such Loan in favor of the Participants and the Swap Counterparty for any Liquidity
Breakage, any LIBOR Breakage, any Swap Breakage Loss and interest and other expenses incurred pursuant to and in the manner specified
in Sections 2.2(c) in respect of such Loan associated with a failure to borrow such Loan for any reason, other than a failure by
the Participants to fund following the satisfaction of all conditions precedent thereto; such indemnity shall be guaranteed by
the Borrower Parent.

 

Promptly following receipt of any Notice
of Borrowing, the Agent shall transmit the same to each Participant.

 

2.3       Funding
Procedure. Not later than 2:00 p.m. (New York time) on the applicable Scheduled Drawdown Date, the Participants shall make
available their ratable share of the Loan to be funded on such Scheduled Closing Date, in immediately available funds, to the Security
Trustee (such amounts being referred to in the aggregate as the “Deposit”). At such time as the Participants
and the Agent are satisfied that the conditions precedent to a Drawdown Date have been satisfied or will be satisfied concurrently
with funding, the Participants shall direct the Security Trustee to make the funds so received from the Participants immediately
available to the Borrower of such Loan on such Scheduled Drawdown Date to the account specified by such Borrower in the Notice
of Borrowing for such Loan.

 

    	 	2	 

     

    

  

[Credit Agreement]

 

2.4       Deposit;
Commitment Cancellation.

 

(a)       If,
for any reason, any Loan to be made hereunder on its Scheduled Drawdown Date shall not be so made on such date, the Deposit, and
earnings thereon, will be, to the extent available, invested and reinvested by the Security Trustee at the sole discretion, for
the account and at the risk of the relevant Borrower in an overnight deposit selected by the Security Trustee. The Borrower of
such Loan agrees to pay to each Participant interest on the amount of the Deposit furnished by such Participant at the Debt Rate
therefor, which interest (i) shall accrue to but excluding the earlier of the actual Drawdown Date or the fifth Business Day next
succeeding the Scheduled Drawdown Date therefor (the “Cutoff Date”) and (ii) shall be payable on such earlier
date.

 

(b)       If
for any reason, other than the failure of any Participant to comply with the terms hereof, the Drawdown Date with respect to any
Loan shall not have occurred on or prior to the applicable Cutoff Date, then each Participant may cancel, terminate or otherwise
unwind any funding arrangements made in the London interbank market or otherwise to fund its Participation Percentage of the Loan
Amount in respect of such Loan, and such Participant shall notify the Security Trustee thereof, and the Security Trustee shall
return its Commitment to be funded on such Drawdown Date to such Participant.

 

(c)       In
the event of the occurrence of the events described in Section 2.4(b) above, the applicable Borrower agrees to pay within three
Business Days of the applicable Cutoff Date (A) to the Swap Counterparty, any Swap Breakage Loss and (B) to each Participant, without
duplication of the amounts covered by the preceding clause (A), any Liquidity Breakage and any LIBOR Breakage and all reasonable
out-of-pocket costs and expenses of such Participant (including, without limitation, reasonable legal costs and expenses) incurred
by such Participant.

 

(d)       The
Participants’ Commitments for all Loans shall be automatically terminated at 4:00 p.m. (New York time) on the Availability
Termination Date.

 

(e)       If
an Event of Default shall have occurred and be continuing, then in every such case, the Agent shall, upon receipt of written demand
therefor from the Required Participants, at any time by delivery of written notice or notices to the Borrowers cancel all remaining
unutilized Commitments, whereupon such unutilized Commitments shall be cancelled, without presentment, demand, protest or notice,
all of which are hereby waived; provided that all unutilized Commitments will automatically be cancelled without any action by
the Agent or the Participants and without presentment, demand, protest or notice, all of which are hereby waived, in the case of
the occurrence and continuance of an Event of Default under Section 4.02(g) of the Security Agreement.

 

2.5       Debt
Rate; Hedging; Amortization Schedules.

 

(a)       Each
Loan shall bear interest at a floating rate of interest from the relevant Drawdown Date to the relevant Maturity Date. At least
two Business Days prior to each Interest Period, the Agent shall determine the Debt Rate for such Interest Period, which determination
shall be conclusive absent manifest error, and shall notify the relevant Borrower of such Debt Rate. The Agent’s failure
to so notify such Borrower of such Debt Rate shall not relieve such Borrower of its obligation to pay interest payable hereunder
nor shall it give rise to any claim against the Agent or any Participant by such Borrower. The relevant Debt Rate shall include
the Liquidity Margin for such Loan.

 

    	 	3	 

     

    

  

[Credit Agreement]

 

(b)       Two
Business Days prior to the Drawdown Date in respect of a Loan, the relevant Borrower shall enter into a Swap Transaction in respect
of such Loan. Each Swap Transaction shall be evidenced by a Swap Agreement to hedge the interest rate risk arising from the mismatch
between the fixed basic rentals under the relevant Lease to which the relevant Borrower or Lessor, as the case may be, is party
and the relevant Debt Rate (the “Exposure”). At all times, 100% (and not more than 100%) of the Exposure will
be hedged through such Swap Transaction. All payments to be made by the Swap Counterparty to the Borrowers under any Swap Agreement
shall be paid directly by the Swap Counterparty into the relevant Collateral Account relating to the related Lease. All payments
to be made by the Borrowers to the Swap Counterparty under any Swap Agreement shall be sourced exclusively from distributions made
under Article III of the Security Agreement or from the Borrower Parent or other Affiliate of the Borrowers. The Security Trustee
shall be granted a first priority, perfected security interest in each Swap Agreement entered into pursuant hereto. The Borrowers
agree that they shall not enter into any other derivatives agreements or other hedging arrangements not provided for under this
Section 2.5(b).

 

(c)       (i)    Each Loan with respect
to a Republic Aircraft shall amortize monthly on each relevant Payment Date on a mortgage-style basis such that the principal amount
payable on the Maturity Date with respect to such Loan shall be equal to zero in the manner provided in Schedule IV. The principal
balance of such Loan outstanding on such Maturity Date shall be due and payable on such date.

 

(ii)       The
Loan with respect to the Adria Aircraft shall amortize monthly on each relevant Payment Date on a mortgage-style basis with a balloon
payment payable on the Maturity Date with respect to such Loan in the manner provided in Schedule IV.

The principal balance of such Loan outstanding on
such Maturity Date shall be due and payable on such date.

 

(iii)       Each
Loan with respect to an Air Nostrum Aircraft shall amortize quarterly on each relevant Payment Date on a mortgage-style basis with
a balloon payment payable on the Maturity Date with respect to such Loan in the manner provided in Schedule IV. The principal balance
of such Loan outstanding on such Maturity Date shall be due and payable on such date.

 

(iv)       For
the purposes of the foregoing calculations, the interest component of debt service on any particular Loan shall be deemed to be
the amount thereof determined by utilizing the Swap Rate under the related Swap Transaction effected in accordance with the Section
2.5(b) (calculated on the basis of a 360 day year and the actual number of days elapsed).

 

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[Credit Agreement]

 

(v)       The
amortization schedule for each Loan (to be appended to each applicable Loan Certificate) shall be prepared by the Agent based on
the foregoing methodology, which shall be conclusive absent manifest error.

 

(d)       Before
the discontinuation of the LIBOR Rate as a benchmark U.S. Dollar interest rate (which is currently planned to occur on or before
December 31, 2021), each of the Borrowers, the Agent and the Participants will agree:

 

(i)       a
replacement benchmark U.S. Dollar interest rate with respect to interest payable on each Loan, which:

 

(1)       
the Borrowers, the Agent and the Participants anticipate at such time is likely to be a benchmark rate that is generally accepted
and adopted by applicable market participants; and

 

(2)       will
be implemented on a non-discriminatory basis with respect to each Participant’s similar (in terms of structure, product type
and debtor profile) commercial aviation finance transactions; and

 

(ii)      any
related necessary amendments to this Agreement and the other Loan Operative Documents, including any necessary amendments to (or
replacements of) the definitions of “1 Month LIBOR Rate”, “3 Month LIBOR Rate”, “Market Disruption
Event”, “Quotation Day” and “Screen Rate”.

 

2.6       Manner
of Payment. Each Loan shall be disbursed by the Security Trustee to the applicable Borrower at such account or accounts as
shall be directed in accordance with Section 2.2 in immediately available funds.

 

		2.7	Fees.

 

(a)       The
Borrowers agree to pay the fees set forth in the Fee Letter at such times as are required by the terms thereof.

 

(b)       The
Borrowers agree to pay to the Agent annually in advance its administrative fee (the “ Agency Fee ”) in the amount
of $10,000 per Aircraft on the Closing Date and on each anniversary thereof (or, if such anniversary is not a Business Day, the
next immediately succeeding Business Day). To the extent that the Closing Date and the initial Drawdown Date occur on the same
Business Day, the Agency Fee due and payable on the Closing Date shall be set off against the portion of the Loans funded by NordLB
on the initial Drawdown Date.

 

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[Credit Agreement]

 

2.8       Air
Nostrum Aircraft Payments. In respect of each Loan for an Air Nostrum Aircraft, the sum of any amounts paid by Bombardier
Inc. under the relevant Residual Value Guarantee (the “RVG Payment Amount”) and any sales proceeds (including
any purchase deposits) received by the relevant Borrower from the sale of such Air Nostrum Aircraft (together with the relevant
RVG Payment Amount, in respect of such Air Nostrum Aircraft, the “Air Nostrum Proceeds”) shall be applied (i)
first, to any amounts outstanding under the relevant Loan Certificates, together with any Swap Breakage Loss, LIBOR Breakage and
Prepayment Fee (in accordance with Section 2.10 of the Security Agreement) in respect of such Aircraft and (ii) second, to any
amounts outstanding under the relevant Loan Certificates for the other Air Nostrum Aircraft, together with any Swap Breakage Loss,
LIBOR Breakage and Prepayment Fee (in accordance with Section 2.10 of the Security Agreement) in respect of such Aircraft. To
the extent the Air Nostrum Proceeds are in excess of the amounts outstanding under the Loans related to the Air Nostrum Aircraft
on the relevant date of prepayment (such excess, an “Air Nostrum Excess Amount”), such Air Nostrum Excess Amount
shall either be applied to any amounts outstanding under the Loan related to the Adria Aircraft in accordance with Section 2.10
of the Security Agreement or, at the election of the Adria Borrower, deposited in the Cash Collateral Account as security for
such Loan in accordance with the Security Agreement. To the extent the Adria Borrower elects to deposit the Air Nostrum Excess
Amount in the Cash Collateral Account, the Air Nostrum Excess Amount shall remain in the Cash Collateral Account until the Lien
in respect of the Adria Aircraft is terminated in accordance with Section 9.01 of the Security Agreement.

 

		Section 3.	Conditions Precedent.

 

3.1       Conditions
Precedent to the Closing Date. The effectiveness of this Agreement is subject to the following conditions precedent having
been complied with to the satisfaction of or waived in writing by the Participants on or before the Closing Date (each document,
instrument, certificate, opinion or other paper referred to below to be in form and substance reasonably satisfactory to the Participants
and, unless otherwise specified, to be dated the Closing Date):

 

(a)      The
following documents shall have been duly authorized, executed and delivered by the respective party or parties thereto (other than
the Finance Parties), and an executed copy of each (other than with respect to the Finance Parties) shall have been delivered to
each Participant and the Security Trustee:

 

		(i)	this Agreement;

 

		(ii)	the Security Agreement;

 

		(iii)	the Fee Letter;

 

		(iv)	the Borrower Parent Pledge Agreements;

 

		(v)	the Indemnity Agreement; and

 

		(vi)	the Swap Master Agreements.

 

(b)      Each Participant and the Security
Trustee shall have received the following:

 

(i)       a
copy of the organizational documents of each Borrower and the Borrower Parent, certified by an authorized representative of such
Person, a good standing certificate (if applicable), and other evidence authorizing execution, delivery and performance by such
Person of each Operative Document to which such Person is or will be a party;

 

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[Credit Agreement]

 

(ii)       a
copy of the organizational documents of the Security Trustee, certified by a Secretary or an Assistant Secretary of the Security
Trustee, and other evidence authorizing the execution, delivery and performance by the Security Trustee of this Agreement and each
other Operative Document to which the Security Trustee is or will be a party;

 

(iii)       an
incumbency certificate of each Borrower and the Borrower Parent as to the person or persons authorized to execute and deliver Loan
Operative Documents to which it is a party and the specimen signature of such person or persons;

 

(iv)       an
incumbency certificate of or in respect of the Persons authorized to execute documents on behalf of the Security Trustee and the
specimen signature of such persons;

 

(v)       copies
of all documents delivered by the Borrower Parent under the Borrower Parent Pledge Agreements;

 

(vi)       all
documentation and other information (including originals if required under regulation or policy) required by regulatory authorities
under applicable “know your customer” and anti-money-laundering rules and regulations, including without limitation,
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), that has been requested not less than five
Business Days prior to the Closing Date; and

 

(vii)       such
other documents and evidence with respect to each Borrower, the Borrower Parent and the Security Trustee as any Participant or
its counsel may reasonably request in order to establish the consummation of the transactions contemplated by this Agreement and
the other Operative Documents, the taking of all corporate proceedings in connection therewith, compliance with the conditions
herein or therein set forth and compliance with any money laundering informational requirements the Participants may have.

 

(c)        All
approvals and authorizations of any trustee or holder of the indebtedness or obligation of each Borrower, the Borrower Parent or
any of their Affiliates which are required in connection with any of the transactions contemplated by this Agreement shall have
been duly obtained, and evidence thereof shall have been delivered to each Participant and the Security Trustee.

 

(d)        On
the Closing Date, the Security Trustee and the Participants shall have received evidence reasonably satisfactory to it that all
of the Borrower Parent Pledged Collateral is held by the Borrower Parent free and clear of all Liens other than the Borrower Parent
Pledge Agreements.

 

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[Credit Agreement]

 

(e)       The
Uniform Commercial Code financing statements covering all the Liens created by or pursuant to the Borrower Parent Pledge Agreements
and the Security Agreement shall have been authorized by the Borrower Parent and the Borrowers, as applicable, and such financing
statements or other statements or documents for the same purpose shall have been authorized to be filed in all places which the
Security Trustee or its special counsel shall deem necessary or advisable.

 

(f)       The
Security Trustee and the Participants shall have received an opinion addressed to the Security Trustee, the Agent and the Participants
as of the Effective Date, from, in each case in form and substance reasonably satisfactory to such Participants:

 

(i)       Christopher
Tigno, General Counsel to the Borrower Parent, with respect to the Borrower Parent;

 

(ii)       Withers
Bergman LLP, special New York and Delaware counsel to the Borrower Parties; and

 

(iii)      Vedder
Price LLP, special English counsel to the Agent;

 

in each case covering such additional matters as the Security
Trustee or any Participant may reasonably request, including, in respect of clauses (ii) and (iii) above, as to the enforceability
of each Swap Master Agreement under the laws of the State of New York and the due execution of each Swap Master Agreement by the
relevant Borrower.

 

(g)       The
Borrowers shall have paid the fees due on the Closing Date pursuant to the Fee Letter and to Section 2.7(b).

 

(h)       Each
Participant shall have received its internal credit approvals to execute and deliver this Agreement and the other Operative Documents
to which such Participant is party, and to consummate the transactions contemplated hereby and thereby.

 

3.2       Conditions
Precedent to a Drawdown Date. The obligation of the Participants to fund their Participation Percentages of the Loan Amount
in respect of a Loan to be made to the applicable Borrower in respect of an Aircraft on a Drawdown Date is subject to the occurrence
of the Closing Date and the following conditions precedent having been complied with to the satisfaction of or waived in writing
by the Participants on or before such Drawdown Date (each document, instrument, certificate, opinion or other paper referred to
below to be in form and substance reasonably satisfactory to the Participants and, unless otherwise specified, to be dated such
Drawdown Date):

 

(a)       Each
Participant shall have received a Notice of Borrowing with respect to such Loan pursuant to Section 2.2.

 

 (b)       The conditions specified in Section 2.1(b) hereof shall be satisfied.

 

(c)       The
following documents shall have been duly authorized, executed and delivered by the respective party or parties thereto (other than
the Finance Parties), and an executed copy of each (other than with respect to the Finance Parties) shall have been delivered to
each Participant and the Security Trustee:

 

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[Credit Agreement]

 

 (i)          the Security Agreement Supplement in respect of such Aircraft;

 

 (ii)         the Loan Certificate for each Participant, duly completed (the original of each to be delivered to such Participant by the Agent promptly following such Drawdown Date);

 

 (iii)        the Swap Agreement in respect of such Loan;

 

 (iv)        the Funds Flow Agreement in respect of such Loan;

 

 (v)         the Lessee Parties Acknowledgement for such Aircraft;

 

 (vi)        if such Aircraft is the Adria Aircraft, the Adria Repossession Deed;

 

 (vii)       if such Aircraft is an Air Nostrum Aircraft, the relevant Residual Value Guarantee and the relevant RVG Notice and Acknowledgment;

 

 (viii)      if such Aircraft is an Air Nostrum Aircraft, the relevant Lease Management Agreement;

 

 (ix)        if such Aircraft is the 19003 Aircraft, the Consent and Recognition of Rights Agreement;

 

 (x)         the Deregistration Powers of Attorney for such Aircraft, if applicable;

 

 (xi)        the IDERA for such Aircraft, if applicable;

 

 (xii)       the Warranty Agreements for such Aircraft, if applicable;

 

 (xiii)      the Lease Operative Documents with respect to such Aircraft;

 

 (xiv)      the Lease Assignment with respect to such Aircraft, if applicable;

 

 (xv)       the Local Law Mortgage with respect to such Aircraft, if applicable; and

 

 (xvi)      the relevant Borrower Pledge Agreement, if applicable.

 

(d)       Such Aircraft shall not have suffered
an Event of Loss (or an event which, with the passage of time would constitute an Event of Loss) and will be in the condition
and state of repair required under the terms of the Lease with respect to such Aircraft.

 

(e)       Since
September 1, 2018, in the reasonable opinion of the Security Trustee (acting in good faith), no material adverse changes in the
business, operational or financial condition of the relevant Lessee shall have occurred that have materially and adversely affected
its ability to perform its obligations under the relevant Lease.

 

    	 	9	 

     

    

  

[Credit Agreement]

 

(f)       On
such Drawdown Date, no change shall have occurred since the Closing Date in applicable law which, in the reasonable opinion of
any Participant, would make it illegal under applicable law for such Participant to make available its Participation Percentage
of the Loan Amount in respect of such Loan.

 

(g)       On
such Drawdown Date, the following statements shall be correct, and the Security Trustee and the Participants shall have received
evidence reasonably satisfactory to it to the effect that:

 

(i)       (A)in respect of the
Adria Aircraft, the Borrower Parent has transferred title to such Aircraft to the Adria Borrower and (ii) in respect of each Aircraft,
the relevant Lessor or the relevant Borrower, as the case may be, has good and legal title to such Aircraft free and clear of all
Liens other than the Lease with respect to such Aircraft, the security created by the Security Agreement and the other Loan Operative
Documents and the Permitted Liens (as defined in such Lease);

 

(ii)       after
giving effect to the filings and registrations contemplated hereby, the Security Trustee has a first priority and duly perfected
Lien of record in and to such Aircraft and the Airframe and Engines included in such Aircraft, and the Lease with respect thereto;

 

(iii)      the
international interests of the Security Agreement as supplemented by the Security Agreement Supplement for such Aircraft and the
Local Law Mortgage for such Aircraft, if applicable, with respect to the Airframe and each Engine included in such Aircraft shall
be in a position to be registered with the International Registry on such Drawdown Date, and there shall exist no other registered
international interest on the International Registry in relation thereto other than registrations being terminated or further assigned
on such Drawdown Date, including the Lease with respect to such Aircraft;

 

(iv)      all
Local Law Requirements that are specified as conditions precedent in respect of such Aircraft in Schedule III shall have been satisfied
as contemplated in Schedule III; and

 

(v)       no
event shall have occurred and be continuing which constitutes (x) an Event of Default or (y) to the Borrower of such Loan’s
Actual Knowledge, a Lease Default or Lease Event of Default under the Lease with respect to such Aircraft except for, solely in
respect of the Adria Aircraft, any Lease Event of Default that occurs as a result of any default by the Lessee of the Adria Aircraft
in the payment when due of any installment of Rent due under the relevant Lease and such Lease Event of Default has been continuing
for a period equal to or less than 60 days.

 

(h)       All
approvals and authorizations of any trustee or holder of the indebtedness or obligation of each Borrower or any of their Affiliates
which are required in connection with any of the transactions contemplated by this Agreement shall have been duly obtained, and
evidence thereof shall have been delivered to each Participant and the Security Trustee.

 

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[Credit Agreement]

 

(i)        On
such Drawdown Date, the Security Trustee and the Participants shall have received evidence reasonably satisfactory to it that all
of the Borrower Pledged Collateral with respect to the relevant Lessor is held by the related Borrower free and clear of all Liens
other than the relevant Borrower Pledge Agreement.

 

(j)        The
Uniform Commercial Code financing statements covering all the Liens created by or pursuant to the Security Agreement and the relevant
Borrower Pledge Agreement with respect to the relevant Eligible Entities, such Aircraft and the Lease with respect to such Aircraft
shall have been authorized by the Borrower of such Loan, such Lessor or the Lessee of such Aircraft, as the case may be, and such
financing statements or other statements or documents for the same purpose shall have been authorized to be filed in all places
which the Security Trustee or its special counsel shall deem necessary or advisable.

 

(k)       The
Security Trustee shall have received a duly executed letter of undertaking from the insurance broker of the related Lessee, in
form and substance reasonably satisfactory to the Security Trustee and the Participants, together with a certificate of insurance
and/or reinsurance from such broker as to the due compliance with the terms of the Lease with respect to such Aircraft, in each
case, to the extent required under such Lease. In addition, the Agent shall have received from its insurance advisor a favorable
opinion concerning the insurances and reinsurances evidenced by such certificate(s).

 

(l)        The
Security Trustee and the Participants shall have received an opinion addressed to it and each of the Security Trustee, the Agent
and the Participants as of such Drawdown Date, from, in each case in form and substance reasonably satisfactory to such Participants:

 

(i)       Withers
Bergman LLP, special New York and Delaware counsel to the Borrowers and the Borrower Parent; and

 

(ii)       (A)
in respect of each Borrower in respect of a Loan related to an Air Nostrum Aircraft, Vedder Price LLP, special English counsel
to the Agent and (B) in respect of a Loan related to a Republic Aircraft, Morris James LLP, special Delaware counsel to the relevant
Lessor;

 

 (iii)      special counsel in the State of Registration of such Aircraft; and

 

 (iv)      special counsel to the Lessee of such Aircraft,

 

in each case covering such additional matters as the Security
Trustee or any Participant may reasonably request, including, in respect of clauses (i) and (ii) above, as to the enforceability
of the relevant Swap Agreement under the laws of the State of New York and the due execution of such Swap Agreement by the relevant
Borrower.

 

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[Credit Agreement]

 

(m)       On
such Drawdown Date, the statements set forth in this paragraph shall be true and correct and the Security Trustee and each Participant
shall have received a certificate signed by an authorized officer or representative in the name and on behalf of the Borrower of
such Loan and each relevant Lessor certifying that (i) its representations and warranties contained in this Agreement or any other
Loan Operative Document are correct in all material respects as though made on and as of such Drawdown Date, except to the extent
that such representations and warranties relate to an earlier date (in which case such representations and warranties are correct
on and as of such earlier date), (ii) to its Actual Knowledge, there are no Liens affecting the Mortgaged Property or any part
thereof (other than Lessor Liens arising pursuant to the Loan Operative Documents or the Lease (including those permitted by such
Lease) with respect to such Aircraft), (iii) no event has occurred and is continuing which constitutes, or with notice or lapse
of time or both would constitute, due to any action or omission on the part of such officer, an Event of Default, (iv) all of the
covenants and agreements of such person required to be performed on or as of such Drawdown Date, have been performed and (v) to
its Actual Knowledge, no event has occurred and is continuing which constitutes a Lease Default or Lease Event of Default under
the Lease with respect to such Aircraft except for, solely in respect of the Adria Aircraft, any Lease Event of Default that occurs
as a result of any default by the Lessee of the Adria Aircraft in the payment when due of any installment of Rent due under the
relevant Lease and such Lease Event of Default has been continuing for a period equal to or less than 60 days.

 

(n)       The
Security Trustee and the Participants shall have received the most recent unaudited financial statements of such Borrower, certified
by an officer of such Borrower, and the most recent audited financial statements of the Lessee Parties most recently delivered
to such Lessor or such Borrower, as the case may be, in accordance with the Lease with respect to such Aircraft or otherwise delivered
to such Lessor in accordance with the standard of a first class aircraft lessor, and the Participants shall have obtained all necessary
approvals and consents to enter into the transaction.

 

(o)       The
Security Trustee and the Participants shall (i) have received and reviewed the Lease with respect to such Aircraft, the Lease Operative
Documents related thereto and, in respect of each Air Nostrum Aircraft, the relevant Residual Value Guarantee and all conditions
precedent required to be delivered thereunder and (ii) subject to Section 5.1(s), be satisfied that the scheduled Basic Rent payable
under the Lease is sufficient to satisfy the Borrower of such Loan’s debt service obligations in respect of the Loan Certificates
related to such Loan (other than any balloon pursuant to Section 2.5(c)).

 

(p)       On
such Drawdown Date, no material disruption shall have occurred in the London (or other relevant) interbank market that may have
an adverse effect upon any Participant’s ability to raise funds in US Dollars;

 

(q)       The
Agent shall have received (or will receive on such Drawdown Date) copies of (i) the certificate of airworthiness of such Aircraft
issued by the Aviation Authority in respect thereof, (ii) the certificate of registration of such Aircraft issued by the Aviation
Authority in respect thereof, (iii) all other government licenses and certificates required by any governmental entity in the State
of Registration of such Aircraft required for the operation of such Aircraft and (iv) the operator’s license (or similar
license or certificate) of the relevant Lessee, in each case as in effect on such Drawdown Date;

 

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[Credit Agreement]

 

(r)       The
Agent shall have received a copy of each bill of sale (on a back-to-birth basis) for such Aircraft.

 

(s)       The
Collateral Account with respect to the Lease relating to such Aircraft shall have been established and pledged to the Security
Trustee in accordance with the terms of the Security Agreement. The Cash Collateral Account shall have been established and pledged
to the Security Trustee in accordance with the terms of the Security Agreement.

 

(t)       If
such Drawdown Date is in respect of the Adria Aircraft, the relevant Borrower shall have deposited the Adria Cash Collateral Amount
in the Cash Collateral Account.

 

(u)       If applicable,
each Participant and the Security Trustee shall have received the following:

 

(i)       a
copy of the organizational documents of such Lessor, certified by an authorized representative of such Person, a good standing
certificate (if applicable), and other evidence authorizing execution, delivery and performance by such Person of each Operative
Document to which such Person is or will be a party;

 

(ii)      an
incumbency certificate of such Lessor as to the person or persons authorized to execute and deliver Loan Operative Documents to
which it is a party and the specimen signature of such person or persons;

 

(iii)     all
documentation and other information (including originals if required under regulation or policy) required by regulatory authorities
under applicable “know your customer” and anti-money-laundering rules and regulations, including without limitation,
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), that has been requested not less than five
Business Days prior to such Drawdown Date; and

 

(iv)     such
other documents and evidence with respect to such Lessor as any Participant or its counsel may reasonably request in order to establish
the consummation of the transactions contemplated by this Agreement and the other Operative Documents, the taking of all corporate
proceedings in connection therewith, compliance with the conditions herein or therein set forth and compliance with any money laundering
informational requirements the participants may have.

 

(v)       The
Agent shall have received from each of the relevant Borrower and the Borrower Parent a “bring-down” certificate of
an authorized representative of such Person certifying that the organizational documents, evidence authorizing execution, delivery
and performance, incumbency certificate and specimen signatures of such Person certified on the Closing Date pursuant to Sections
3.1(b)(i) and 3.1(b)(iii) are true, correct and complete as of such Drawdown Date.

 

(w)       The
Security Trustee, the Agent and each Participant shall have received evidence of the acceptance of appointment of process agents
in New York in respect of the relevant Borrower, the Borrower Parent and the relevant Lessor, if applicable.

 

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[Credit Agreement]

 

(x)       All
appropriate action required to have been taken by any governmental or political agency, subdivision or instrumentality of the relevant
State of Registration, the relevant jurisdiction of incorporation of the Borrower Parent, the relevant Borrower and the relevant
Lessor, if applicable, or the United States on or prior to such Drawdown Date in connection with the transactions contemplated
by this Agreement to occur on or prior to such Drawdown Date shall have been taken, and all orders, permits, waivers, authorizations,
exemptions and approvals of such entities required to be in effect on such Drawdown Date in connection with the transactions contemplated
by this Agreement to occur on or prior to such Drawdown Date shall have been issued, and all such orders, permits, waivers, authorizations,
exemptions and approvals shall be in full force and effect on such Drawdown Date.

 

(y)       If
applicable, the Agent, the Security Trustee and each Participant shall have received an executed copy of a payoff letter or undertaking,
a release agreement and such other documentation, including any relevant UCC searches, tax lien searches and litigation searches
with respect to such Lessor and/or such Borrower, as the case may be, as it shall reasonably request evidencing that any indebtedness
in respect of such Aircraft, such Lease or any other related Mortgaged Property has been, or will simultaneously with the advance
of such Loan be, paid in full and all security interests and Liens (other than Permitted Liens) on such Aircraft, such Lease or
such Mortgaged Property have been, or will simultaneously with the advance of such Loan be, released.

 

(z)       The
Agent shall have received such other documentation, and such other conditions shall have been fulfilled, as the Agent or its counsel
shall reasonably request in light of circumstances occurring following the Closing Date.

 

3.3       Conditions
Subsequent. Promptly following the closing on a Drawdown Date for an Aircraft:

 

(a)       international
interests in the relevant Airframe and each relevant Engine, in the name of the Security Trustee, shall be duly registered on the
International Registry with respect to the Security Agreement as supplemented by the Security Agreement Supplement with respect
to such Aircraft, and the Local Law Mortgage with respect to such Aircraft, if applicable;

 

(b)       all
Local Law Requirements that are specified as conditions subsequent for such Aircraft in Schedule III shall have been completed
or satisfied in a manner reasonably satisfactory to the Security Trustee within the allotted timeframes specified in such Schedule
III, and evidence of such completion and/or satisfaction shall have been delivered to the Security Trustee;

 

(c)       the
Borrower of such Loan shall have paid to Vedder Price P.C., special New York counsel to the Participants, the Agent and the Security
Trustee, such firm’s reasonable legal fees and expenses (including filing and registration costs) promptly after such Drawdown
Date, as shall have been invoiced at least three Business Days prior to such Drawdown Date.

 

		Section 4.	Representations and Warranties.

 

4.1       Borrowers.
Each Borrower jointly and severally represents and warrants to each Participant and the Security Trustee as follows, such representations
and warranties being made on the date of the execution and delivery of this Agreement, the Closing Date and each Drawdown Date
applicable to such Borrower, except to the extent that such representations and warranties relate to an earlier date (in which
case such representations and warranties are correct on and as of such earlier date):

 

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[Credit Agreement]

 

(a)       Organization,
Corporate Authority, Etc. Such Borrower (i) is duly formed, validly existing, and in good standing (if applicable) under the
laws of its jurisdiction of incorporation and is qualified to do business in all jurisdictions where it does business, except where
the failure to so qualify would not have a material adverse effect on the assets, business, or condition (financial or otherwise)
of such Borrower, (ii) has full power to carry on its business as it is now being conducted and to enter into, legally bind itself
by, and perform its obligations under, this Agreement and each other Loan Operative Document to which it is a party and has complied
with all material statutory and other requirements relative to the business carried on by it and (iii) such Borrower has duly executed
and delivered this Agreement, and each of the Loan Operative Documents to which such Borrower is a party.

 

(b)       Authorization,
Etc. This Agreement and the other Operative Documents to which such Borrower is party have been duly authorized, executed and
delivered by such Borrower. This Agreement and the other Operative Documents to which such Borrower is party constitute the legal,
valid and binding obligations of such Borrower, enforceable against it in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency or other similar laws affecting the rights of creditors generally or by
the general principles of equity (regardless whether such enforceability is considered in a proceeding at law or in equity).

 

(c)       No
Violation. None of the execution, delivery or performance by such Borrower of this Agreement or the other Operative Documents
to which such Borrower is party, nor the consummation of any of the transactions contemplated hereby or thereby, will (i) contravene
any applicable law binding on such Borrower or any of its property, or any provision of the organizational documents of such Borrower,
or will result in a breach of, or constitute a default under, or contravene any provision of, any agreement or instrument to which
such Borrower is a party or by which such Borrower or any of its property is bound; (ii) cause any limitation on such Borrower,
or the power of its officers and directors, whether imposed by or contained in its organizational documents or any existing law,
agreement or otherwise, to be exceeded; or (iii) result in the imposition of, or oblige it to create, any Lessor Lien (other than
pursuant to a Loan Operative Document or the Lease).

 

(d)       No
Consents or Approvals. None of the execution, delivery or performance by such Borrower of this Agreement or any other of the
Operative Documents to which such Borrower is party, nor the consummation by such Borrower of any of the transactions contemplated
hereby and thereby, requires the consent or approval of, the giving of notice to, the registration, recording or filing of any
documents with, or the taking of any other action in respect of, any governmental authority, except such as has been obtained or
effected on or prior to the effective date hereof or is to be obtained or effected on or prior to the Closing Date and/or each
Drawdown Date, except the filings necessary to perfect Liens in favor of the Security Trustee, the notices, filings and registrations
set forth in Section 3.3 and the Local Law Requirements.

 

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[Credit Agreement]

 

(e)       No
Defaults. Such Borrower is not in default under any mortgage, deed of trust, indenture or other instrument or agreement to
which it is a party or by which it or any of its assets may be bound and the Borrower Parent is not subject to any bankruptcy or
similar type of event.

 

(f)       No
Litigation. There are not pending or, to such Borrower’s Actual Knowledge, threatened investigations, suits or proceedings
against such Borrower or affecting such Borrower or its properties.

 

(g)       Liens.
The Mortgaged Property is free and clear of Liens attributable to such Borrower or any Lessor (other than Lessor Liens arising
pursuant to the Loan Operative Documents or any Lease (including those permitted by such Lease) and there are no Liens affecting
the title of the relevant Lessor or such Borrower to any Aircraft or resulting from any act or claim against such Borrower arising
out of any event or condition not related to (i) the ownership, leasing, use or operation of such Aircraft or to (ii) any other
transaction contemplated by this Agreement or any related documents.

 

 (h)       [Intentionally Omitted].

 

(i)        Cape Town Convention. Each
Lessor and such Borrower is (or will be) a transacting user entity or is otherwise duly qualified to consent to the registration
of all applicable international interests or other registrations to be made by or on behalf of the Security Trustee on the International
Registry on a Drawdown Date; is “situated”, for the purposes of the Cape Town Convention, in a “Contracting
State”; and has the power to “dispose” (as such term is used in the Cape Town Convention) of the relevant Airframe
and related Engines, and the relevant Lease (if applicable); the Airframe and related Engines financed on a Drawdown Date are
“aircraft objects” (as defined in the Cape Town Convention).

 

(j)        Filings,
Registrations, etc. With respect to any Aircraft, it is not necessary to ensure the legality, validity or enforceability in
the State of Registration of such Aircraft or the United States of America of the Loan Operative Documents that any of them or
any other instrument be filed, recorded, registered or enrolled in any court, public office or elsewhere in the State of Registration
of such Aircraft or the United States of America, except as expressly specified on Schedule III with respect to such Aircraft,
or that any stamp, registration or similar tax be paid in the State of Registration of such Aircraft or the United States of America
on or in relation to any of the Loan Operative Documents, and no further action in the State of Registration of such Aircraft or
the United States of America, including any filing or recording of any document, is necessary or permissible to establish and perfect
such Borrower’s or any relevant Lessor’s title to and interest in, and the Security Trustee’s security interest
in, such Aircraft, the relevant Lease, the relevant Pledged Collateral and the other relevant Mortgaged Property as against the
relevant Lessee, such Borrower and any third parties except for (1) the filings and registrations set forth in Schedule III with
respect to such Aircraft, (2) the Cape Town Registrations and (3) the filing of financing statements under the Uniform Commercial
Code in any applicable jurisdiction.

 

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[Credit Agreement]

 

(k)       Security
Interest. On the Drawdown Date for a Loan, the security interest in the Mortgaged Property created pursuant to the Security
Agreement on such date will be validly created, and no action (other than the filings referred to in Schedule III with respect
to the relevant Aircraft) is required to be taken by any person (other than the taking and retaining of possession of the original
counterparts of the Lease with respect to such Aircraft and any instruments or investment property), in order for the full benefit
of the security interest created thereby to vest in the Security Trustee on behalf of the Participants. The security interest in
the Pledged Collateral created pursuant to each Borrower Pledge Agreement has been validly created on the date hereof, and no action
(other than, if applicable, the taking and retaining of possession by the Security Trustee of all certificates evidencing the ownership
interests pledged under such document (if any) and the other ancillary documents delivered pursuant to such document) is required
to be taken by any person (other than the filings referred to in Section 4.1(j)) in order for the full benefit of the security
interest created thereby to vest in the Security Trustee on behalf of the Participants or in order to ensure the first priority
perfected security interest of the Security Trustee for the benefit of the Participants in the Pledged Collateral will be maintained.

 

(l)        Title.
Each Lessor and such Borrower will have legal title to its assets including any Aircraft in which it holds title, any Lease in
which it holds title and the related Mortgaged Property which is to be held by it free and clear of Liens attributable to such
Borrower or such Lessor (other than Lessor Liens arising pursuant to the Loan Operative Documents or any such Lease (including
those permitted by such Lease)).

 

(m)      Ownership.
All of the Borrower Pledged Collateral is held by the Borrowers free and clear of all Liens (other than Lessor Liens arising pursuant
to the Loan Operative Documents).

 

(n)       Borrower
Location. The location of each of the 19002 Borrower and the 19003 Borrower for purposes of Article 9 of the New York Uniform
Commercial Code is England. The location of each of the Republic Borrower and the Adria Borrower for purposes of Article 9 of
the New York Uniform Commercial Code is Delaware. The location of each Lessor for purposes of Article 9 of the New York Uniform
Commercial Code is Delaware.

 

(o)       Complete
Documents. On the Drawdown Date for an Aircraft, the copies of the Lease and the related Lease Operative Documents with respect
to such Aircraft and, in respect of each Air Nostrum Aircraft, the relevant Residual Value Guarantee, furnished to the Agent by
the relevant Lessor or such Borrower, as the case may be, are true, correct and complete in all respects, and there are no amendments,
supplements, letters or written or oral understandings modifying the terms of such copies.

 

(p)       Anti-Corruption
Laws and Sanctions . Each Borrower has implemented and maintains in effect policies and procedures designed to promote and
achieve compliance by such Borrower and its directors, officers, employees, agents and Affiliates (including Eligible Entities)
with Anti-Corruption Laws and applicable Sanctions. None of the Borrowers nor any of their Affiliates (including any Lessor), directors
or officers (i) is a Sanctioned Person or (ii) has in the past five years knowingly engaged in any activity or conduct which would
violate any applicable Anti-Corruption Laws. No Borrower will directly or knowingly indirectly use the proceeds of a Loan or knowingly
lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or any other Person, to fund
any activities or business of or with any Sanctioned Person, or in any Sanctioned Country, or in a manner that will constitute
a violation of applicable Anti-Corruption Laws or Sanctions by any Person.

 

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[Credit Agreement]

 

(q)       Special
Purpose. Such Borrower and each Lessor has been formed for the sole purpose of negotiating, entering into and performing the
transactions contemplated by the Operative Documents and matters reasonably incidental thereto, and since its formation, it has
not entered into any transaction or conducted any business except as required or contemplated by the Operative Documents.

 

Section 5.       Certain Covenants.

 

5.1       The
Borrowers. Each Borrower jointly and severally covenants and agrees as follows:

 

(a)       Transfer.
Except as expressly contemplated by the Operative Documents, none of the Borrowers nor any Lessor shall directly or indirectly
assign, convey otherwise transfer any of its right, title or interest in and to the Mortgaged Property, the Pledged Collateral,
this Agreement or any of the other Operative Documents, without the prior written consent of the Security Trustee and the Participants,
which consent may be withheld in their sole discretion.

 

(b)       Event
of Default; an Event of Loss; Claims. Each Borrower shall inform the Agent with reasonable promptness upon its Actual Knowledge
of the occurrence of (i) a Default or an Event of Default as set out in the Security Agreement, (ii) any event which, with or
without the passage of time, could reasonably be expected to constitute an Event of Loss, (iii) any material claim with respect
to any liability filed against Borrower or (iv) the occurrence of a Lease Event of Default under any Lease.

 

(c)       Registration.
Each Borrower covenants that it will not consent to and shall procure that the Lessor of an Aircraft shall not consent to any change
in the State of Registration of such Aircraft without the prior written consent of the Security Trustee, such consent not to be
unreasonably withheld or delayed.

 

(d)       Liens.
Each Borrower covenants that no Borrower Party will directly or indirectly create, incur, assume or suffer to exist any Liens (other
than Lessor Liens arising pursuant to the Loan Operative Documents or any Lease (including any Liens permitted by such Lease))
attributable to it, with respect to any of the properties or assets constituting Mortgaged Property or the Pledged Collateral,
that it shall, at its own cost and expense, promptly take such action as may be necessary to discharge duly any such Lien (other
than Lessor Liens arising pursuant to the Loan Operative Documents or any Lease (including any Liens permitted by such Lease)),
and that it will cause restitution to be made to the Mortgaged Property or the Pledged Collateral in the amount of any diminution
of the value thereof as the result of any Liens thereon attributable to it (other than Lessor Liens arising pursuant to the Loan
Operative Documents or any Lease (including any Liens permitted by such Lease)).

 

(e)       Existence,
Etc. Each Borrower will and will procure that each Lessor will:

 

(i)       preserve
and maintain its legal existence and all of its material rights, privileges, licenses and franchises and not change its location
for purposes of Article 9 of the New York Uniform Commercial Code or name without the Security Trustee’s prior written consent;

 

    	 	18	 

     

    

  

[Credit Agreement]

 

(ii)       comply
with the material requirements of all applicable laws, rules, regulations and orders of governmental or regulatory authorities;

 

(iii)       pay
and discharge all taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of
its property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment
of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained;

 

(iv)       keep
adequate records and books of account, in which complete entries will be made in accordance with generally accepted accounting
principles consistently applied; and

 

(v)       permit
representatives of any Participant, the Agent or the Security Trustee, during normal business hours and with prior written notice,
to examine and copy from the books and records of such Borrower and such Lessor, as the case may be, and to discuss its business
and affairs with their respective representatives or officers, as the case may be, all to the extent reasonably requested by such
Participant, the Agent or the Security Trustee, as the case may be.

 

(f)        Special
Purpose. No Borrower shall, and each Borrower shall not permit any Lessor to, without the prior written consent of the Required
Participants:

 

 (i)         have any employees earning compensation;

 

(ii)        except for (w) Intercompany Indebtedness,
(x) the Loans, (y) any other indebtedness as is consented to by the Agent and (z) as expressly contemplated hereby (including
as a result of engaging in the activities permitted under this Section 5.1(f)), incur or contract to incur any indebtedness;

 

(iii)       engage
in any activity other than the execution, delivery and performance of the Operative Documents and activities incidental thereto
(including any equity infusion made by a Borrower to a Lessor and including the purchase of Aircraft (whether directly or through
Borrower’s acquisition of 100% of the ownership interests in an entity owning an Aircraft), as well as ordinary corporate
or limited liability company, as applicable, housekeeping activities;

 

(iv)       maintain
or have any obligation to make contributions to any “employee benefit plan” or “multiemployer plan” (each
as defined in ERISA);

 

(v)       except
as contemplated or permitted under the Operative Documents (including so as to meet its obligations under the Lease Operative Documents
and the relevant Residual Value Guarantee, if applicable, to which it is a party), make or agree to make any capital expenditure;

 

    	 	19	 

     

    

  

[Credit Agreement]

 

 (vi)        create or own any subsidiary other than any Lessor;

 

(vii)       except as contemplated or permitted
under the Operative Documents (including so as to meet its obligations under the Lease Operative Documents and any Residual Value
Guarantee, if applicable, to which it is a party and including equity infusions made by a Borrower to a Lessor), make any investments
or pledge any of its assets;

 

(viii)      except
as required to perform its obligations under the Operative Documents, declare or make any dividend payment or distribution to its
members, beneficial owners or shareholders, as the case may be (other than in respect of Excluded Payments or any other payments
which either Borrower is entitled to receive under the Security Agreement);

 

(ix)        incur
any material obligation to any third party (excluding any payment or other obligation incurred pursuant to the Operative Documents
and activities incidental thereto, as well as obligations under purchase agreements with respect to Aircraft (or ownership interests
of entities owning Aircraft) and ordinary corporate or limited liability company, as applicable, housekeeping activities); or

 

 (x)         amend its formation or organizational documents.

 

(g)       Obligations. Each Borrower
shall, and shall cause each Lessor to duly and punctually perform its obligations under the Operative Documents to which it is
a party.

 

(h)       Preservation
of the Property. Each Borrower agrees that such Borrower shall, and shall cause each Lessor to, take all steps reasonably required
by the Security Trustee or the Agent to preserve or protect their respective interests and the interests of the Security Trustee
in the Mortgaged Property and the Pledged Collateral. Each Borrower hereby authorizes, and will cause each Lessor to authorize,
the Security Trustee to instruct its counsel to file one or more UCC financing or continuation statements on its behalf, and amendments
thereto, or any similar document, with respect to (i) all or any part of the Mortgaged Property mortgaged by the Borrowers and
all or any part of the Pledged Collateral pledged by the Borrowers and (ii) all or any part of the Mortgaged Property mortgaged
by any Lessor, in each case, without the signature of the Borrowers or such Lessor.

 

(i)        Use
of Proceeds. Each Borrower agrees that it will use the proceeds of each Loan borrowed by it hereunder to refinance the acquisition
of the Aircraft with respect to such Loan (in compliance with all applicable legal and regulatory requirements) and the payment
of fees and other costs associated thereto under this Agreement and the other Operative Documents; provided that none of the Security
Trustee, the Agent or any Participant shall have any responsibility as to the use of any of such proceeds.

 

(j)        Insurance.
Each Borrower shall, or shall procure that the Lessor of an Aircraft will, direct the Lessee of such Aircraft (i) to name the Security
Trustee as the sole loss payee (or, in the case of insurance that incorporates AVN67B, a contract party) and the Finance Parties
as additional insureds in any insurance and reinsurance maintained pursuant to the Lease with respect to such Aircraft, (ii) to
maintain hull and hull war risk insurance at all times in an amount not less than 120% of the amount of the Loan with respect to
such Aircraft and of a scope and coverage at least as comprehensive as customarily maintained by such Lessee’s fleet policy
for similar aircraft, with a financier endorsement at least as comprehensive as AVN67B and (iii) to maintain hull and liability
insurance as required by such Lease.

 

    	 	20	 

     

    

  

[Credit Agreement]

 

(k)       Information.

 

(i)       Each
Borrower shall, or shall procure that the Lessor of an Aircraft will, grant the Agent or its authorized representatives the right
to request information regarding any monthly reports on such Aircraft that are to be delivered by the Lessee of such Aircraft to
such Lessor or such Borrower, as the case may be, under the Lease with respect to such Aircraft in the form set out in such Lease
(A) on an annual basis, (B) after the occurrence of a Lease Event of Default under such Lease that is continuing and

(C) after an Event of Default that has occurred and
is continuing.

 

(ii)       Each
Borrower shall, or shall procure that the Lessor of an Aircraft will, grant the Agent an independent inspection right as and when
permitted under the Lease with respect to such Aircraft or will nominate the Agent as its representative for such inspection thereunder,
and in case the relevant Lessor will not have made use of its annual inspection right under such Lease, the Agent shall be entitled
to instruct such Lessor or such Borrower, as the case may be, to initiate such inspection. If requested by the Security Trustee,
such Borrower and the Lessor of an Aircraft will fully involve the Security Trustee in relation to any inspection of such Aircraft
to the extent permitted by the Lease with respect to such Aircraft.

 

(iii)       Each
Borrower shall permit the Agent (or its designated representative) to periodically inspect, during normal business hours and with
prior written notice, the books and records of such Borrower (and the Lessor owned by such Borrower) relating to the Loans and
associated Aircraft; provided that, so long as no Event of Default is continuing, such inspection may not occur more frequently
than once annually.

 

(l)        Subleasing.
Each Borrower shall, or shall procure that the Lessor of an Aircraft will, take any such action as required by the Security Trustee
(acting reasonably and having regards to the terms of the Lease) in relation to any subleasing of such Aircraft to the extent permitted
by the Lease with respect to such Aircraft.

 

(m)       KYC.
Each Borrower will, upon request, deliver such additional information about itself or any Lessor reasonably requested by a Participant,
the Security Trustee or the Agent based on prevailing banking law requirements in order to satisfy such Participant’s, the
Security Trustee’s or the Agent’s “know your customer” requirements.

 

(n)       Compliance
with the Leases.

 

(i)       Each
Borrower will, or will procure that each Lessor of an Aircraft, take commercially reasonable actions in accordance with the standards
of reputable internationally recognized aircraft lessors to procure compliance with all provisions of the Lease with respect to
such Aircraft that relate to the operation of such Aircraft, including, without limitation, the insurance, maintenance, registration,
possession and use of such Aircraft.

 

    	 	21	 

     

    

  

[Credit Agreement]

 

(ii)       Except
for Day-to-Day Operational Matters, each Borrower will, or will procure that no Lessor of an Aircraft shall, (A) exercise any discretion
granted to it under the Lease with respect to such Aircraft without the consent of the Security Trustee (which consent shall not
be unreasonably withheld) or (B) amend or modify any Lease, Lease Operative Document or Residual Value Guarantee, if applicable,
or grant any waiver of any term or condition of any Lease without the prior written consent of the Security Trustee.

 

(iii)       Subject
to Section 4.03 of the Security Agreement, each Borrower will not, or will procure that no Lessor of an Aircraft will, terminate
the Lease with respect to such Aircraft or waive any Lease Event of Default thereunder without the approval of the Security Trustee.

 

(o)       Blue
Sky Event . Each Borrower agrees and shall cause each Lessor to grant further aircraft mortgages in the event that any mortgage
delivered on the Drawdown Date for an Aircraft becomes unenforceable or inadequate to protect the Security Trustee’s Lien
in the Collateral securing the relevant Loan.

 

(p)       Financial
Statements, Etc. Each Borrower shall deliver and shall cause each Lessor of an Aircraft to, deliver, in English, to the Security
Trustee and each Participant:

 

(i)       within
180 days of the last day of each fiscal year of the Lessee of such Aircraft, commencing with the fiscal year ending in 2018, the
financial statements of such Lessee or the Lessee Parties delivered to the relevant Lessor or such Borrower, as the case may be,
under the Lease with respect to such Aircraft (if any) (provided that if such financial statements are not provided in the English
language, such Borrower shall procure, promptly following receipt thereof, a certified English translation);

 

(ii)       within
180 days of the last day of each fiscal year of the Borrowers, the unaudited financial statements of the Borrowers and each Lessor
certified by an officer of the relevant Borrower;

 

(iii)       promptly
after such Borrower has Actual Knowledge that (x) any Lease Event of Default has occurred, (y) any Default has occurred or (z)
any Lien has been levied on an Aircraft (other than Lessor Liens arising pursuant to the Loan Operative Documents or any Lease
(including any Liens permitted by such Lease)), a notice describing the same in reasonable detail and, together with such notice
or as soon thereafter as possible, a description of the action that such Borrower has taken or proposes to take with respect thereto;

 

(iv)       maintenance
reports with respect to each Aircraft (A) on an annual basis (if requested by the Security Trustee), (B) after each scheduled
maintenance event, (C) after each major unscheduled maintenance event and (D) constituting a utilization report of such Aircraft
(delivered quarterly), in each case to the extent such report is received from the Lessee of such Aircraft;

 

    	 	22	 

     

    

  

[Credit Agreement]

 

(v)       notice
of all material litigation against such Borrower and any Lessor; and

 

(vi)      from
time to time such other information available to such Borrower or the Lessor of an Aircraft pursuant to the Lease with respect
to such Aircraft, or as would otherwise be provided to such Borrower or Lessor, as the case may be, in accordance with the standard
of a first class aircraft lessor, regarding (A) such Aircraft (including, without limitation, its maintenance status) as any Participant
may reasonably request or (B) the financial condition, operations, business or prospects of such Borrower or, to the extent available
the Lessee of such Aircraft, as any Participant may reasonably request.

 

(q)       Anti-Corruption
Laws; Sanctions. Each Borrower will maintain in effect and enforce policies and procedures designed to promote and achieve
compliance by such Borrower, and, in each case, its respective directors, officers, employees, agents and Affiliates (including
Eligible Entities) with Anti-Corruption Laws and applicable Sanctions. No Borrower will directly or knowingly indirectly use the
proceeds of a Loan to fund any activities or business of or with any Sanctioned Person, or in any Sanctioned Country, or in a manner
that will violate Anti-Corruption Laws.

 

(r)       Ownership
Interest. The Borrowers shall not encumber or dispose of the shares or ownership interest in any Lessor to any person other
than the Security Trustee.

 

(s)       Adria
Cash Collateral Amount.

 

(i)       To
the extent the monthly Rent payable on a Basic Rent Payment Date under the Lease related to the Adria Aircraft is less than the
sum of the principal and interest payable on the Payment Date in respect of the Loan related to the Adria Aircraft immediately
following such Basic Rent Payment Date (the relevant “Adria Shortfall”), the Security Trustee shall promptly
transfer an amount equal to such Adria Shortfall from the Cash Collateral Account to the Collateral Account in respect of the Adria
Aircraft for application in accordance with Section 3.01 of the Security Agreement. The amount of the Adria Cash Collateral Amount
in the Cash Collateral Account shall be reduced by the amount of such Adria Shortfall.

 

(ii)       Upon
receipt by the Adria Borrower and/or the Security Trustee of any late Rent from the Lessee in respect of the Adria Aircraft, such
late Rent shall be deposited by the Adria Borrower or the Security Trustee, as the case may be, in the Cash Collateral Account
and the Adria Cash Collateral Amount shall be increased by the amount of such late Rent.

 

(t)       Republic
Aircraft Event of Loss.

 

(i)       With
respect to an Event of Loss in respect of a Republic Aircraft, to the extent the Lessee of such Republic Aircraft elects to replace
such Republic Aircraft in accordance with Section 8(a)(i) of the relevant Lease with a replacement airframe and replacement engines
(together, a “Replacement Republic Aircraft”) in lieu of paying the relevant insurance proceeds in respect of
such Event of Loss to the relevant Lessor, the relevant Borrower may replace such Republic Aircraft with such Replacement Republic
Aircraft hereunder and under the other Loan Operative Documents (a “Republic Replacement”); provided
that:

 

    	 	23	 

     

    

  

[Credit Agreement]

 

(1)       such
Borrower shall provide the Security Trustee with (A) a description of the proposed Replacement Republic Aircraft (including the
model and serial number of the replacement airframe and each replacement engine) and information as to the current maintenance
status of the proposed Replacement Republic Aircraft as soon as possible after such Borrower receives notice from such Lessee of
its election to replace such Republic Aircraft and (B) written notice of the proposed date of such Republic Replacement no later
than ten Business Days prior to the proposed date of such Republic Replacement;

 

(2)       on
or prior to the date of the Republic Replacement, the relevant Borrower shall comply with Section 3.2, to the extent applicable,
as if such Replacement Republic Aircraft was the subject of a Drawdown Date hereunder and as if references to Drawdown Date were
references to the date of such Republic Replacement;

 

(3)       no
Event of Default shall have occurred and be continuing at the time of such Republic Replacement or shall result therefrom;

 

(4)       such
Replacement Republic Aircraft shall be free and clear of all Liens (other than Permitted Liens) on the date of the Republic Replacement;

 

(5)       such
Replacement Republic Aircraft shall be of the same or newer make and model as such Republic Aircraft and shall have a value, utility
and remaining useful life at least equal to such Republic Aircraft; and

 

(6)       such
Republic Replacement shall be subject to the internal appraisal and approval processes of the Participants, in their sole discretion.

 

(ii)       Upon
completion of a Republic Replacement, all references to the relevant replaced Republic Aircraft hereunder and under the other Loan
Operative Documents shall thereafter be deemed to refer to the relevant Replacement Republic Aircraft in lieu of such Republic
Aircraft.

 

(iii)       The
Borrowers and the Finance Parties shall enter into any amendments to this Agreement and the other Loan Operative Documents required
to reflect a Republic Replacement, to the extent reasonably necessary.

 

(iv)       In
connection with a Republic Replacement, after completion of such Republic Replacement in accordance with this Section 5.1(t):

 

(1)       the
relevant Borrower may direct the Security Trustee to execute and deliver to or as directed in writing by such Borrower an appropriate
instrument releasing the relevant Republic Aircraft and the Engines associated therewith from the Lien of the Security Agreement
and the relevant Local Law Mortgage and the Mortgagee shall execute and deliver such instrument as aforesaid and give written notice
thereof to the relevant Lessee;

 

    	 	24	 

     

    

  

[Credit Agreement]

 

(2)       no
mandatory prepayment in respect of the Event of Loss in respect of such Republic Aircraft under Section 2.10(b)(i) of the Security
Agreement shall be required; and

 

(3)       no
mandatory prepayment in respect of the release and disposition of such Republic Aircraft under Section 2.10(b)(ii) of the Security
Agreement shall be required.

 

5.2       Section
2.13 of the Security Agreement. Each of the Participants (on its behalf and the behalf of its Affiliates) and the Borrowers
hereby agree to the terms of Section 2.13 of the Security Agreement and shall be bound by the provisions thereof as if Section
2.13 of the Security Agreement were incorporated in this Credit Agreement mutatis mutandis.

 

5.3       No
Action Contrary to Lessee’s Rights Under the Lease. Notwithstanding any of the provisions of any Loan Operative Document
to the contrary, and so long as no Lease Event of Default shall have occurred and be continuing under a Lease with respect to an
Aircraft, no Participant, or any person lawfully claiming through any of them, will take any action contrary to the Lessee of such
Aircraft’s rights under such Lease, including the right to possession and use of, and the quiet enjoyment of, such Aircraft.

 

5.4       Ownership
Interests. The Borrowers shall procure that the Borrower Parent shall not encumber or dispose of the shares or ownership interest
in the Borrowers to any person other than the Security Trustee.

 

5.5       Residual
Value Guarantees. In respect of the relevant Residual Value Guarantee, each of the 19002 Borrower and the 19003 Borrower shall:

 

(a)       not
amend or agree to any amendment of such Residual Value Guarantee, or waive any right under such Residual Value Guarantee, without
the prior written consent of the Agent;

 

(b)       not
agree to any of the procedures in relation to the obligations under such Residual Value Guarantee, including the return conditions
contemplated thereby, without the prior written consent of the Agent;

 

(c)       exercise
its rights under such Residual Value Guarantee, including any right or requirement to appoint Bombardier Inc. as “remarketing
agent” within the timeframes contemplated by such Residual Value Guarantee, solely on the instruction of the Agent;

 

(d)       procure
that any proceeds payable by Bombardier Inc. under such Residual Value Guarantee will be paid to an account of the Security Trustee
for application in accordance with this Agreement and the Security Agreement;

 

(e)       immediately
notify the Agent about any termination of such Residual Value Guarantee;

 

    	 	25	 

     

    

  

[Credit Agreement]

 

(f)       promptly
deliver to the Agent (i) all information that the Agent may reasonably request in relation to such Residual Value Guarantee and
(ii) a copy of any notice received from Bombardier Inc. under or in accordance with such Residual Value Guarantee;

 

(g)       not
provide any consent under such Residual Value Guarantee without the prior written consent of the Agent;

 

(h)       to
the extent any cooperation is required under such Residual Value Guarantee, provide any such cooperation on the instruction of
the Agent; and

 

(i)       not
rescind, cancel, terminate or permit the termination of such Residual Value Guarantee or enter into any agreement with Bombardier
Inc. and/or the relevant Lessee (in relation to the relevant Lease or otherwise) which would rescind, cancel or terminate such
Residual Value Guarantee (or any part thereof) without the prior written consent of the Agent.

 

		Section 6.	The Agent and Security Trustee.

 

6.1       Appointment,
Powers and Immunities.

 

(a)       Each
holder of a Loan Certificate hereby irrevocably appoints and authorizes Wilmington Trust Company (“Wilmington”)
to act as Security Trustee hereunder and under the other Operative Documents with such powers as are specifically delegated to
the Security Trustee by the terms of this Agreement and of the other Operative Documents, together with such other powers as are
reasonably incidental thereto. Wilmington accepts such appointment. The Security Trustee (which term as used in this sentence and
in Section 6.4 and the first sentence of Section 6.5 shall include reference to Wilmington’s Affiliates and its own and its
Affiliates’ officers, directors, employees and agents): (a) shall have no duties or responsibilities except those expressly
set forth in this Agreement and in the other Operative Documents, and shall not by reason of this Agreement or any other Operative
Document be a trustee for any holder of a Loan Certificate; (b) shall not be responsible to the holder of a Loan Certificate for
(i) any recitals, statements, representations or warranties contained in this Agreement or in any other Operative Document, or
in any certificate or other document referred to or provided for in, or received by any of them under, this Agreement or any other
Operative Document, or for (ii) the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement,
any Loan Certificate or any other Operative Document or any other document referred to or provided for herein or therein or for
any failure by the Borrowers or any other person to perform any of its obligations hereunder or thereunder; (c) shall not be required
to initiate or conduct any litigation or collection proceedings hereunder or under any other Operative Document; and (d) shall
not be responsible to the holder of any Loan Certificate for any action taken or omitted to be taken by it hereunder or under any
other Operative Document or under any other document or instrument referred to or provided for herein or therein or in connection
herewith or therewith, except for its own gross negligence or willful misconduct. The Security Trustee may employ agents and attorneys-in-fact
and shall not be responsible to the holder of any Loan Certificate for the negligence or misconduct of any such agent or attorneys-in-fact
selected by it in good faith.

 

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[Credit Agreement]

 

(b)       Each
holder of a Loan Certificate hereby appoints and authorizes Nord/LB to act as Agent hereunder and under the other Operative Documents
with such powers as are specifically delegated to the Agent by the terms of this Agreement and of the other Operative Documents,
together with such other powers as are reasonably incidental thereto. Nord/LB accepts such appointment. The Agent (which term as
used in this sentence and in Section 6.4 and the first sentence of Section 6.5 hereof shall include reference to Nord/LB’s
Affiliates and its own and its Affiliates’ officers, directors, employees and agents): (a) shall have no duties or responsibilities
except those expressly set forth in this Agreement and in the other Operative Documents, and shall not by reason of this Agreement
or any other Operative Document be a trustee for any holder of a Loan Certificate; (b) shall not be responsible to the holder of
a Loan Certificate for (i) any recitals, statements, representations or warranties contained in this Agreement or in any other
Operative Document, or in any certificate or other document referred to or provided for in, or received by any of them under, this
Agreement or any other Operative Document, or for (ii) the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement, any Loan Certificate or any other Operative Document or any other document referred to or provided for herein
or therein or for any failure by each Borrower or any other person to perform any of its obligations hereunder or thereunder; (c)
shall not be required to initiate or conduct any litigation or collection proceedings hereunder or under any other Operative Document;
and (d) shall not be responsible to any holder of a Loan Certificate for any action taken or omitted to be taken by it hereunder
or under any other Operative Document or under any other document or instrument referred to or provided for herein or therein or
in connection herewith or therewith, except for its own gross negligence or willful misconduct. The Agent may employ agents and
attorneys-in-fact and shall not be responsible to the holder of any Loan Certificate for the negligence or misconduct of any such
agent or attorneys-in-fact selected by it in good faith.

 

6.2       Reliance
by Agent and Security Trustee. The Agent and Security Trustee shall be entitled to rely upon any certification, notice or other
communication (including, without limitation, any thereof by telephone, telecopy or e-mail) believed by it to be genuine and correct
and to have been signed or sent by or on behalf of the proper person or persons, and upon advice and statements of legal counsel,
independent accountants and other experts selected by the Agent or the Security Trustee. As to any matters not expressly provided
for by this Agreement or any other Operative Document, the Agent and the Security Trustee shall in all cases be fully protected
in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions given by the Required Participants.

 

6.3       Defaults.
The Agent and the Security Trustee shall not be deemed to have knowledge or notice of the occurrence of a Default (other than the
non-payment of principal of or interest on the Loan Certificate) unless the Agent or the Security Trustee has received notice from
a holder of a Loan Certificate or a Borrower specifying such Default and stating that such notice is a “Notice of Default”.
In the event that the Agent or the Security Trustee receives such a notice of the occurrence of a Default, the Agent or the Security
Trustee, as the case may be, shall give prompt notice thereof to the holders of Loan Certificates (and shall give each holder of
a Loan Certificate and the Borrowers prompt notice of each such non-payment). The Agent and Security Trustee shall (subject to
Section 6.6) take such action with respect to such Default as shall be directed by the Required Participants.

 

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[Credit Agreement]

 

6.4       Indemnification.
The holders of Loan Certificates agree to indemnify the Agent and Security Trustee ratably in accordance with their respective
Loan Certificates, for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against the Agent or Security
Trustee (including by any holder of a Loan Certificate) arising out of or by reason of any investigation in or in any way relating
to or arising out of this Agreement or any other Operative Document or any other documents contemplated by or referred to herein
or therein or the transactions contemplated hereby or thereby or the enforcement of any of the terms hereof or thereof or of any
such other documents, provided that no holder of a Loan Certificate shall be liable for any of the foregoing to the extent they
arise from the gross negligence or willful misconduct of the Agent or the Security Trustee.

 

6.5       Non-Reliance
on Agent, Security Trustee and Other Holder of a Loan Certificate. Each holder of a Loan Certificate agrees that it has, independently
and without reliance on the Agent, the Security Trustee or any other holder of a Loan Certificate, and based on such documents
and information as it has deemed appropriate, made its own credit analysis of the Lessee and decision to enter into the Operative
Documents to which it is or is to be a party and that it will, independently and without reliance upon the Agent, the Security
Trustee or any other holder of a Loan Certificate, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement. Each of the Agent
and the Security Trustee shall not be required to keep itself informed as to the performance or observance by the Borrowers or
the Lessees of this Agreement or any of the other Operative Documents or any other document referred to or provided for herein
or therein or to inspect their respective properties or books. Except for notices, reports and other documents and information
expressly required to be furnished to the holders of Loan Certificates by the Agent or Security Trustee hereunder, the Agent or
the Security Trustee, as the case may be, shall not have any duty or responsibility to provide any holder of a Loan Certificate
with any credit or other information concerning the affairs, financial condition or business of the Borrowers or the Lessees (or
any of their Affiliates) that may come into the possession of the Agent or Security Trustee or any of its Affiliates.

 

6.6       Failure
to Act. Except for action expressly required of the Agent and the Security Trustee hereunder and under the other Operative
Documents, the Agent and the Security Trustee shall in all cases be fully justified in failing or refusing to act hereunder and
thereunder unless it shall receive further assurances to its satisfaction from the holders of Loan Certificates of their indemnification
obligations under Section 6.4 hereof against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action.

 

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[Credit Agreement]

 

6.7       Resignation
or Removal of Agent and Security Trustee. Subject to the appointment and acceptance of a successor Agent or Security Trustee
as provided below, one or both of the Agent or the Security Trustee may resign at any time by giving notice thereof to the holders
of Loan Certificates and the Borrowers, and the Agent or the Security Trustee may be removed at any time with or without cause
by the Required Participants. Upon any such resignation or removal, the Required Participants shall have the right to appoint a
successor Agent or Security Trustee, as the case may be, which shall be a bank with a combined capital and surplus of at least
$500,000,000 experienced in aircraft financing transactions. If no successor Agent or Security Trustee, as the case may be, shall
have been so appointed by the Required Participants and shall have accepted such appointment within 30 days after the retiring
Agent’s or Security Trustee’s giving of notice of resignation or the Required Participants’ removal of the retiring
Agent or Security Trustee, then the retiring Security Trustee shall, on behalf of the holders of Loan Certificates, appoint a successor
Security Trustee, that shall be a bank with a combined capital and surplus of at least $500,000,000 experienced in aircraft financing
transactions. Upon the acceptance of any appointment as Agent or Security Trustee hereunder by a successor Agent or Security Trustee,
such successor Agent Security Trustee shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Agent or Security Trustee, and the retiring Agent or Security Trustee shall be discharged from its duties
and obligations hereunder. After any retiring Agent or Security Trustee’s resignation or removal hereunder as Agent or Security
Trustee, the provisions of this Section 6 shall continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as the Agent or Security Trustee. Unless an Event of Default has occurred and is continuing,
any successor Agent or Security Trustee shall be reasonably acceptable to the Borrowers.

 

6.8       Consents
Under Operative Documents. Except as otherwise provided in Article VIII of the Security Agreement, the Security Trustee may,
with the prior consent of the Required Participants (but not otherwise), consent to any modification, supplement or waiver under
any of the Operative Documents, provided that, without the prior consent of each Participant, the Security Trustee shall not (except
as provided in the Security Agreement) release any collateral or otherwise terminate any Lien under any Operative Document providing
for collateral security, or agree to additional obligations being secured by such collateral security (unless the Lien for such
additional obligations shall be junior to the Lien in favor of the other obligations secured by such Operative Document), except
that no such consent shall be required, and the Security Trustee is hereby authorized, to release any Lien covering property which
is the subject of a disposition of property permitted hereunder or to which the Required Participants have consented.

 

Section 7.      Miscellaneous.

 

7.1       Notices.
Unless otherwise expressly specified or permitted by the terms hereof, all notices, requests, demands, authorizations, directions,
consents, waivers or documents provided or permitted by this Agreement to be made, given, furnished or filed shall be in writing,
personally delivered or delivered by a commercial carrier, or by facsimile or by e-mail, and addressed to such address as set forth
in Schedule I hereto. Any party hereto may change the address to which notices to such party will be sent by giving notice of such
change to the other parties to this Agreement. Any notice given as provided in this Section 7.1 shall be deemed effective and given
for the purposes of the Operative Documents on the date on which it is received (or delivery refused or rejected) by the addressee.

 

7.2       Rights
Cumulative. The rights and remedies of the Agent, Security Trustee and the Participants under this Agreement, the Security
Agreement, the Loan Certificates and the other Operative Documents shall be cumulative and not exclusive of nor limiting upon any
rights or remedies that it otherwise has, and no failure or delay by the Security Trustee, the Agent or any Participant in exercising
any right shall operate as a waiver of it, nor shall any single or partial exercise of any power or right preclude its other or
further exercise or the exercise of any other power or right.

 

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[Credit Agreement]

 

7.3       Waivers;
Amendments. Notwithstanding any provision in any Loan Operative Document to the contrary, no term or provision of this Agreement
may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the Borrowers and the Required
Participants (or the Agent on behalf of the Required Participants or all the Participants if required by Section 8.01 of the Security
Agreement) with the written approval of the Swap Counterparty if required by Section 8.01 of the Security Agreement; and any waiver
of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

 

		7.4	Assignment.

 

(a)       All
covenants and agreements contained herein shall be binding upon, and inure to the benefit of, each of the parties hereto and the
permitted successors and assigns of each, all as herein provided. Any request, notice, direction, consent, waiver or other instrument
or action by any Participant shall bind the successors and assigns of such holder.

 

(b)       Subject
to the conditions set forth in paragraph (c) and (d) below and specified in Section 2.07 of the Security Agreement, following the
relevant Drawdown Date, without the consent of the Borrowers or any other Person, any Participant may assign to one or more Persons
that is (i) a Participant or an Affiliate of a Participant, (ii) a bank, financial institution, insurance company, trust, fund
(other than a hedge fund) or other entity regularly engaged in or established for the purpose of making, purchasing, or investing
in loans, securities or other financial assets, (iii) a member of the European System of Central Banks or (iv) any special purpose
company or vehicle (each, an “Assignee”) all or a portion of its Loan Certificates in respect of the relevant
Loan (each, an “Assignment” and collectively, the “Assignments”); provided that if an Event
of Default has occurred and is continuing, subject to Section 7.4(d), any Participant may effect an assignment to any Person without
the consent of the relevant Borrower or any other Person.

 

(c)       No
Assignment shall cause any Borrower any increase in any cost, liability or obligation under or in respect of the Operative Documents
at the time of such Assignment (including, without limitation, under Sections 2.02(e), 2.13 and 2.14 of the Security Agreement),
in each case measured based upon the applicable law in effect on the date of such Assignment and laws that have been enacted prior
to such date but are scheduled to take effect after such date. The Assignee shall be responsible for paying the reasonable costs
and expenses (if any) of a single counsel to the Borrowers in connection with any Assignment.

 

(d)       Each
Participant shall be entitled to assign its Participation Percentage in the Loans to a trustee in connection with the issuance
of any Pfandbrief issued in accordance with the German Pfandbrief Act, as amended, so long as such Assignment does
not increase any obligation or cost or diminish any right of the Borrowers, measured based upon the applicable law in effect on
the date of such Assignment and laws that have been enacted prior to such date but are scheduled to take effect after such date.

 

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[Credit Agreement]

 

(e)       Any
Participant may assign and pledge its Participation Percentage in the Loans (and any Loan Certificates) to any Federal Reserve
Bank as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve System (or any successor),
as the same may be modified and supplemented and in effect from time to time, and any operating circular issued by such Federal
Reserve Bank. No such assignment shall release the assigning Participant from its obligations hereunder.

 

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

 

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

 

7.7       Governing
Law; Counterpart Form. THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW. THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK. This Agreement may be executed by the
parties hereto in separate counterparts (or upon separate signature pages bound together into one or more counterparts), each of
which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the
same instrument.

 

		7.8	Indemnification.

 

(a)       General
Indemnification. Subject to Section 7.8(c), each Borrower hereby jointly and severally indemnifies the Security Trustee, the
Agent, the Swap Counterparty and the Participants and agrees to hold the Security Trustee, the Agent, the Swap Counterparty and
the Participants harmless, on an after-Tax basis, against any and all liabilities, damages, losses, claims, reasonable and documented
costs, or expenses whatsoever, and to promptly reimburse the Security Trustee, the Agent, the Swap Counterparty and the Participants
for any reasonable and documented fees or expenses (including but not limited to the fees and expenses of expert witnesses) (it
being agreed and understood that reimbursement for fees, costs and expenses of legal counsel shall be limited to the reasonable
and documented fees and expenses of one primary counsel to all Finance Parties and one local counsel for all Finance Parties in
any relevant jurisdiction and, in the case of an actual or perceived conflict of interest, one additional counsel to each affected
person) (i) incurred by it in connection with any claim or defending or, in the event any Event of Default shall have occurred
and be continuing, prosecuting any action or proceeding relating to this Agreement and any Operative Document or (ii) incurred
by it in connection with the ownership, possession leasing, use, operations, maintenance or design of any Aircraft.

 

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[Credit Agreement]

 

(b)       Additional
Indemnification by Borrowers. Subject to Section 7.8(c), each Borrower hereby jointly and severally indemnifies, on an after-Tax
basis, the Security Trustee, the Agent, the Swap Counterparty and the Participants and agrees to hold the Security Trustee, the
Agent, the Swap Counterparty and the Participants harmless against any and all liabilities, damages, losses, claims, reasonable
and documented costs, or expenses whatsoever and to promptly reimburse the Security Trustee, the Agent, the Swap Counterparty and
the Participants for any reasonable and documented legal or other fees or expenses, without duplication, (including but not limited
to the fees and expenses of expert witnesses) (it being agreed and understood that reimbursement for fees, costs and expenses of
legal counsel shall be limited to the reasonable and documented fees and expenses of one primary counsel to all Finance Parties
and one local counsel for all Finance Parties in any relevant jurisdiction and, in the case of an actual or perceived conflict
of interest, one additional counsel to each affected person) incurred by the Security Trustee, the Agent, the Swap Counterparty
and the Participants in connection with (i) such Borrower’s obligations pursuant to Section 4.2(i), (ii) the consequences
of its own gross negligence or willful misconduct or the failure to use ordinary care in the administration of funds or in the
preservation of the Mortgaged Property pursuant to the terms of the Security Agreement, and (iii) any material breach of warranty
or material misrepresentation by such Borrower or any material misrepresentation or material omission from any certificate, instrument,
or paper delivered or to be delivered by such Borrower to the Agent and Participant pursuant to this Agreement or any Loan Operative
Document or in connection with the transactions contemplated herein or therein.

 

(c)       Exclusions
to Indemnification. None of the foregoing obligations to indemnify the Security Trustee, the Agent, the Swap Counterparty and
the Participants shall apply to the extent that the liabilities, damages, losses, claims, costs, fees, or expenses arise from,
are connected with or related to (i) Taxes (other than amounts necessary to make payments on an after-Tax basis), (ii) the gross
negligence, bad faith or willful misconduct of the Security Trustee, the Agent, the Swap Counterparty or any of the Participants,
(iii) any breach of warranty, misrepresentation or material omission in any Operative Document of the Security Trustee, the Agent,
the Swap Counterparty or any of the Participants, or any breach of, or failure to comply with or perform any obligation under the
Operative Documents by the Security Trustee, the Agent, the Swap Counterparty or any of the Participants, (iv) the offering of
securities or investment interests by the Security Trustee, the Agent, the Swap Counterparty or any of the Participants, (v) ordinary
and usual operating and overhead expenses of the Security Trustee, the Agent, the Swap Counterparty or any of the Participants,
or (vi) disputes between and among Finance Parties.

 

7.9       Waiver
of Jury. EACH BORROWER, EACH PARTICIPANT, THE SWAP COUNTERPARTY, THE AGENT AND THE SECURITY TRUSTEE HEREBY WAIVE TRIAL BY JURY
IN ANY JUDICIAL PROCEEDING TO WHICH THEY ARE PARTIES INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT
OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, THE SECURITY AGREEMENT, THE LOAN CERTIFICATES
OR THE OTHER OPERATIVE DOCUMENTS OR THE RELATIONSHIP ESTABLISHED HEREUNDER.

 

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[Credit Agreement]

 

7.10      Jurisdiction.
Each party hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District
of New York and of any New York state court sitting in New York City for the purpose of all legal proceedings arising out of or
relating to this Agreement, the other Operative Documents or the transactions contemplated hereby and thereby. Each party hereto
irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum.

 

7.11      Expenses.
Each Borrower jointly and severally agrees to pay or reimburse each of the Participants, the Agent, the Swap Counterparty and
the Security Trustee for paying: (a) all documented out-of-pocket costs and expenses of the Participants, the Agent, the Swap
Counterparty and the Security Trustee reasonably incurred by them (including, without limitation, the reasonable fees and out-of-pocket
expenses, each pursuant to properly vouched invoices, of Vedder Price P.C., special New York counsel to the Participants, the
Swap Counterparty and the Agent as a whole, any local counsel to the Agent and of Willis Towers Watson, insurance advisor to the
Agent), in connection with (i) the negotiation, preparation, execution and delivery of this Agreement, the other Operative Documents
and the extension of credit hereunder and (ii) any modification, supplement or waiver of any of the terms of this Agreement or
any of the other Operative Documents which arise from a specific request of a Borrower; (b) all reasonable costs and expenses
of the Participants and the Security Trustee (including, without limitation, reasonable counsels’, fees in each case pursuant
to properly vouched invoices; provided, however, that it is understood that no Borrower will be responsible for the fees and expenses
of separate counsel for the Participants, the Agent, the Swap Counterparty and the Security Trustee, but only for one lead counsel)
in connection with (i) any Default or Event of Default and any enforcement or collection proceedings resulting therefrom or in
connection with the negotiation of any restructuring or “work-out” (whether or not consummated), of the obligations
of any Borrower hereunder other than costs or expenses (x) resulting directly from a
Lease Event of Default for which a Lessee is required to indemnify under any Lease and (y) which do not arise from a specific
request by a Borrower to restructure the transactions contemplated by the Loan Operative Documents, and (ii) the enforcement of
this Section 7.11; and (c) all charges incurred in connection with any filing, registration, recording or perfection of any security
interest contemplated by any Operative Document or any other document referred to therein; it being understood and agreed that,
so long as no Event of Default shall have occurred and be continuing, no Borrower shall pay or reimburse the Participants, the
Agent, the Swap Counterparty or the Security Trustee for any costs and expenses incurred in connection with the preparation, negotiation,
documentation, or execution of any assignment of, transfer of, or participation in this Agreement, any of the other Loan Operative
Documents or the Loans.

 

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[Credit Agreement]

 

7.12      Confidentiality.
Each party hereto agrees (on behalf of itself and each of its Affiliates, directors, officers, employees and representatives)
to keep confidential, in accordance with their customary procedures for handling confidential information of this nature and in
accordance with safe and sound (banking, in the case of the Participant) practices, the terms of this Agreement and the other Operative
Documents and, in the case of the Participant and the Agent, any non-public information supplied to it by the Borrowers pursuant
to the terms of each of this Agreement, the other Operative Documents and any document, agreement or instrument delivered in connection
with the foregoing, provided that nothing herein shall limit the disclosure of any such information (i) to the extent required
by applicable statute, rule, regulation, rule of any applicable regulatory body (including any stock exchange), (ii) to legal counsel,
auditors, bank examiners or accountants for any party hereto, in each case who agree to keep such information, the terms of this
Agreement and the terms of any other Operative Document confidential, (iii) to any subsidiary, shareholder, investor (or potential
investor) in or Affiliate of the Agent or Participant (and any of their respective legal counsel and other advisors), in each case
who agrees to keep such information, the terms of this Agreement and the terms of any other Operative Document confidential, (iv)
to any assignee (or prospective assignee) of Participant (and its legal counsel and other advisors) who agrees to keep such information,
the terms of this Agreement and the terms of any other Operative Document confidential, (v) to the extent such non-public information
is or becomes available in the public domain other than as a result of an authorized disclosure by any party hereto or (vi) with
the prior written consent of the other parties hereto.

 

7.13      Money
Laundering. For the purposes of the German Money Laundering Act (Geldwäschegesetz) (“GMLA”), each Borrower
hereby confirms that it is acting in its own name and for its own account. Each Borrower agrees to provide such information as
each Participant reasonably requests in order to comply with the GMLA (without reference to internal interpretations thereof).

 

 7.14      Compliance with Anti-Money Laundering, Sanctions and OFAC Laws.

 

(a)       Each
Borrower shall comply at all times with the requirements of all applicable Anti-Money Laundering Laws.

 

(b)       Each
Borrower shall provide the Agent, the Security Trustee and the Participants any information regarding such Borrower, its Affiliates
and subsidiaries necessary for the Agent, the Security Trustee and the Participants to comply with all Anti-Money Laundering Laws.

 

(c)       Each
Borrower shall comply at all times with the requirements of all applicable OFAC Laws.

 

(d)       No
Borrower shall knowingly conduct business with or knowingly engage in any transaction with any person or entity named in the OFAC
SDN List or any person or entity included in, owned by, controlled by, acting for or on behalf of, providing assistance, support,
sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or described in
the OFAC SDN List.

 

(e)       If
a Borrower obtains Actual Knowledge or receives any written notice that suche Borrower, any Affiliate, subsidiary or any person
or entity holding any legal or beneficial interest whatsoever therein (whether directly or indirectly) is named on the OFAC SDN
List (such occurrence, an “OFAC Violation”), such Borrower shall immediately (i) give written notice to the
Agent, the Security Trustee and the Participants of such OFAC Violation, and (ii) comply with all applicable laws with respect
to such OFAC Violation (regardless of whether the party included on the OFAC SDN List is located within the jurisdiction of the
United States of America), including the OFAC Laws, and each Borrower hereby authorizes and consents to the Security Trustee’s
taking any and all steps the Security Trustee deems reasonably necessary, in its sole discretion, to comply with all applicable
laws with respect to any such OFAC Violation, including the requirements of the OFAC Laws (including the “freezing”
and/or “blocking” of assets and reporting such action to OFAC).

 

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[Credit Agreement]

 

(f)       Upon
the Agent’s request from time to time, each Borrower shall deliver a certification confirming its compliance with the covenants
set forth in this Section 7.14.

 

(g)       Each
Borrower acknowledges that in order for each Participant to comply with the requirements under Title III of the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”)
(Public Law 107-56), such Borrower must provide such Participant with certain information or supporting documentation (collectively,
“Documentation”) at the time of execution of this Agreement. Each Participant is required by the USA Patriot
Act to verify and record any Documentation provided by the Borrowers to validate each Borrower’s identity. Documentation
that may be requested from the Borrowers may include, but is not limited to, a Federal Employer Identification Number (FEIN), a
certificate of good standing to validate a Borrower’s existence, a certificate of incumbency to authenticate the management
of such Borrower and other government issued certified documents to validate such Borrower’s authorization to conduct business.

 

(h)       In
relation to any provision in any Loan Operative Document that contains a representation or undertaking related to Sanctions (“Sanction
Provision”): Any Sanction Provision shall only apply for the benefit of a Participant to the extent that the Sanctions
would not result in (i) any violation of, conflict with or liability under EU Regulation (EC) 2271/96 or (ii) a violation or conflict
with section 7 foreign trade rules (AWV) (Außenwirtschaftsverordnung) (in connection with section 4 paragraph 1 a no. 3 foreign
trade law (AWG) (Außenwirtschaftsgesetz)) or a similar anti-boycott statute. The preceding sentence does not apply to the
New York branch of Nord/LB.

 

For purposes of this Section 7.14, the following terms
shall mean:

 

“Anti-Money Laundering Laws”
shall mean any laws or regulations relating to money laundering or terrorist financing, including, without limitation, the Bank
Secrecy Act, 31 U.S.C. §§ 5301 et seq.; the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56 (a/k/a the USA Patriot Act); Laundering of Monetary Instruments,
18 U.S.C. § 1956; Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, 18 U.S.C. §
1957; the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulations, 31 C.F.R. part 103; and any similar
laws or regulations currently in force or hereafter enacted.

 

“OFAC” shall mean the
United States Department of Treasury Office of Foreign Assets Control.

 

“OFAC Laws” shall mean
any laws, regulations, and Executive Orders relating to the economic sanctions programs administered by OFAC, including without
limitation, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq.; the Trading with the Enemy Act,
50 App. U.S.C. §§ 1 et seq.; and the Office of Foreign Assets Control, Department of the Treasury Regulations, 31 C.F.R.
parts 500 et seq. (implementing the economic sanctions programs administered by OFAC).

 

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[Credit Agreement]

 

“OFAC SDN List” shall
mean the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC.

 

7.15     Contractual
Bail-In. Notwithstanding any other term of any Loan Operative Document or any other agreement, arrangement or understanding
between the parties hereto, each party hereto acknowledges and accepts that any liability of any such party to any other such party
under or in connection with the Operative Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges,
accepts and agrees to be bound by the effect of:

 

(a)        any
Bail-In Action in relation to any such liability, including (without limitation):

 

(i)       a
reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in
respect of any such liability;

 

(ii)       a
conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred
on, it; and

 

 (iii)      a cancellation of any such liability; and

 

(b)        a variation of any term of any Loan
Operative Document (other than the Lessee Parties Acknowledgement) to the extent necessary to give effect to any Bail-In Action
in relation to any such liability.

 

7.16     Non-Recourse
Obligations.

 

(a)       Each
Borrower and each Lessor, as security for the Secured Obligations, shall mortgage, collaterally assign and create a Lien in favor
of the Security Trustee in and upon the Collateral upon and subject to the terms of the Loan Operative Documents.

 

(b)       In
recognition of each Borrower and each Lessor granting the security referred to in Section 7.16(a), each of the Security Trustee,
the Agent, the Swap Counterparty and each Participant hereby agrees that, notwithstanding the provisions of any Loan Operative
Document to the contrary, any and all liability of the Borrowers and the Lessors that is created hereunder or under any other Loan
Operative Document shall, in the absence of fraud, gross negligence or willful misconduct in performing their respective obligations
under the Loan Operative Documents to which they are a party, be limited to the aggregate assets from time to time of the Borrowers
and the Lessors. Except as specified above, the Borrowers and the Lessors shall not be personally liable for any shortfall that
may arise as a result thereof. The provisions of this Section 7.16(b) shall only limit the personal liability of the Borrowers
and the Lessors for the discharge of its obligations as specified above and shall not (i) limit or restrict in any way the accrual
of interest on any such unpaid amount, or (ii) derogate from or otherwise limit the right of recovery, realization or application
by the Security Trustee, the Agent, the Swap Counterparty and each Participant under or pursuant to any of the Loan Operative Documents
on anything assigned, mortgaged, charged, pledged or secured (by way of security) to or for the benefit of the Security Trustee,
the Agent, the Swap Counterparty and each Participant under or pursuant to any of the Loan Operative Documents.

 

    	 	36	 

     

    

  

[Credit Agreement]

 

(c)       Each
of the Security Trustee, the Agent, the Swap Counterparty and each Participant hereby acknowledges and agrees that each Borrower’s
and each Lessor’s obligations under this Agreement and the other Loan Operative Documents are solely the corporate obligations
of such Borrower or such Lessor, as the case may be, and that none of the Security Trustee, the Agent, the Swap Counterparty or
the Participants shall have any recourse against any of the directors, shareholders, officers or employees of such Borrower or
such Lessor, as the case may be, for any claims, losses, damages, liabilities, indemnities or other obligations of the Borrowers
and the Lessors under this Agreement and the other Loan Operative Documents.

 

*          *          *

 

    	 	37	 

     

    

  

[Credit Agreement]

 

IN WITNESS WHEREOF, the parties
hereto have caused this Credit Agreement to be executed by their duly authorized officers or attorneys in fact all as of the day
and year first written above.

 

	 	BORROWERS
	 	 
	 	ACY SN 19002 LIMITED, as Borrower
	 	 	 
	 	By:	/s/ Barry Mills
	 	Name:	Barry Mills
	 	Title:	Director
	 	 
	 	ACY SN 19003 LIMITED, as Borrower
	 	 	 
	 	By:	/s/ Barry Mills
	 	Name:	Barry Mills
	 	Title:	Director

 

     

     

    

  

[Credit Agreement]

 

	 	ACY E-175 LLC, as Borrower
	 	 
	 	By: AeroCentury Corp., its Manager
	 	 	 
	 	By:	/s/ Toni
    M. Perazzo
	 	Name:	Toni Perazzo
	 	Title:	SVP Finance
	 	 
	 	ACY SN 15129 LLC, as Borrower
	 	 
	 	By: AeroCentury Corp., its Manager
	 	 	 
	 	By:	/s/ Toni
    M. Perazzo
	 	Name:	Toni Perazzo
	 	Title:	SVP Finance

 

     

     

    

  

[Credit Agreement]

 

	 	PARTICIPANTS
	 	 
	 	Norddeutsche Landesbank Girozentrale, NEW YORK BRANCH, as a Participant
	 	 	 
	 	By:	/s/ Oliver Gruenke
	 	Name:	Oliver Gruenke
	 	Title:	Managing Director
	 	 	 
	 	By:	/s/ Andreas Trunk
	 	Name:	Andreas Trunk
	 	Title:	Senior Director

 

     

     

    

  

[Credit Agreement]

 

	 	Norddeutsche Landesbank Girozentrale, as Swap Counterparty
	 	 	 
	 	By:	/s/ Sebastian Schlichting
	 	Name:	Sebastian Schlichting
	 	Title:	Legal Counsel
	 	 	Norddeutsche Landesbank - Girozentrale
	 	 	-authorized signatory-
	 	 	 
	 	By:	/s/ Carsten Meinecke
	 	Name:	Carsten Meinecke
	 	Title:	SENIOR Legal Counsel
	 	 	Norddeutsche Landesbank - Girozentrale
	 	 	-authorized signatory-
	 	 	 
	 	Norddeutsche Landesbank

                    Girozentrale, as Agent

	 	 	 
	 	By:	/s/ Oliver Gruenke
	 	Name:	Oliver Gruenke
	 	Title:	Managing Director
	 	 	 
	 	By:	/s/ Andreas Trunk
	 	Name:	Andreas Trunk
	 	Title:	Senior Director

 

     

     

    

  

[Credit Agreement]

 

	 	WILMINGTON TRUST COMPANY, as Security Trustee
	 	 	 
	 	By:	/s/ Robert P. Hines Jr.
	 	Name:	Robert P. Hines Jr.
	 	Title:	Vice President

 

     

     

    

  

[Credit Agreement]

 

ANNEX A

 

DEFINITIONS AND CONSTRUCTIONS

 

    ANNEX A
 Page 1

     

    

  

[Definitions]

 

ANNEX A

 

DEFINITIONS AND CONSTRUCTION

 

1.       Definitions.
Unless the context otherwise requires, the following terms shall have the following meanings.

 

“17000168 Aircraft”
shall mean the Embraer model E175LR aircraft bearing manufacturer’s serial number 17000168 and on lease to Republic Airways
Inc. (formerly known as Republic Airline Inc.), as more specifically described in the relevant Security Agreement Supplement.

 

“17000172 Aircraft”
shall mean the Embraer model E175LR aircraft bearing manufacturer’s serial number 17000172 and on lease to Republic Airways
Inc. (formerly known as Republic Airline Inc.), as more specifically described in the relevant Security Agreement Supplement.

 

“17000173 Aircraft”
shall mean the Embraer model E175LR aircraft bearing manufacturer’s serial number 17000173 and on lease to Republic Airways
Inc. (formerly known as Republic Airline Inc.), as more specifically described in the relevant Security Agreement Supplement.

 

“19002 Aircraft”
shall mean the Bombardier model CRJ-1000 aircraft bearing manufacturer’s serial number 19002 and on lease to Air Nostrum
Lineas Aereas del Mediterraneo, S.A., as more specifically described in the relevant Security Agreement Supplement.

 

“19002 Borrower”
shall have the meaning set forth in the preamble to the Credit Agreement.

 

“19003 Aircraft”
shall mean the Bombardier model CRJ-1000 aircraft bearing manufacturer’s serial number 19003 and on lease to Air Nostrum
Lineas Aereas del Mediterraneo, S.A., as more specifically described in the relevant Security Agreement Supplement.

 

“19003 Borrower”
shall have the meaning set forth in the preamble to the Credit Agreement.

 

“1 Month LIBOR Rate
” shall mean (i) for an Interest Period commencing on a Drawdown Date for a Loan that is not a Payment Date for such Loan,
the cost of funds for a Participant for such Interest Period, (ii) for an Interest Period commencing on the Payment Date immediately
prior to the Maturity Date for a Loan and terminating on the Maturity Date for such Loan, the cost of funds for a Participant for
such Interest Period and (iii) for any one-month Interest Period or other relevant period, the applicable Screen Rate as of 11:00
a.m. on the applicable Quotation Day for Dollars and a period equal in length to that Interest Period.

 

    	 	Annex A
Page 1
	 

     

    

  

[Definitions]

 

“3 Month LIBOR Rate
” shall mean (i) for an Interest Period commencing on a Drawdown Date for a Loan that is not a Payment Date for such Loan,
the cost of funds for a Participant for such Interest Period, (ii) for an Interest Period commencing on the Payment Date immediately
prior to the Maturity Date for a Loan and terminating on the Maturity Date for such Loan, the cost of funds for a Participant for
such Interest Period and (iii) for any three-month Interest Period or other relevant period, the applicable Screen Rate as of 11:00
a.m. on the applicable Quotation Day for Dollars and a period equal in length to that Interest Period.

 

“Actual Knowledge”
shall mean, as it applies to any Lessor, any Borrower, any Participant, the Swap Counterparty, any Mortgagor or the Mortgagee,
as the case may be, actual knowledge of a Vice President or more senior officer of such person or any other officer of such person
in each case having responsibility for the transactions contemplated by the Operative Documents.

 

“Additional Costs”
shall have the meaning set forth in Section 2.14 of the Security Agreement.

 

“Adria Aircraft”
shall mean the Bombardier model CRJ-900 aircraft bearing manufacturer’s serial number 15129 and on lease to Adria Airways
Slovenski Letalski Prevoznik, d.o.o., as more specifically described in the relevant Security Agreement Supplement.

 

“Adria Borrower”
shall have the meaning set forth in the preamble to the Credit Agreement.

 

“Adria Cash Collateral Amount”
shall mean an amount equal to $750,000.

 

“Adria Prepayment Amount”
shall have the meaning set forth in Section 2.10(a)(iii) of the Security Agreement.

 

“Adria Repossession Deed”
shall mean, in respect of the Adria Aircraft, the notarial repossession deed with direct enforceability dated on or prior to the
relevant Drawdown Date between the Adria Borrower and Adria Airways Slovenski Letalski Prevoznik d.o.o., together with any powers
of attorney granted by the Adria Borrower in favor of Nord/LB and/or the Security Trustee in relation to such repossession deed.

 

“Adria Shortfall”
shall have the meaning set forth in Section 5.1(s) of the Credit Agreement.

 

“Affiliate” of
any Person shall mean any other Person directly or indirectly controlling, directly or indirectly controlled by, or under direct
or indirect common control with, such Person, or if such Person is a partnership, any general partner of such Person or a Person
controlling such general partner. For purposes of this definition, “control” (including “controlled by”
and “under common control with”) shall mean the power, directly or indirectly, to direct or cause the direction of
the management and policies of such Person whether through the ownership of voting securities or by contract or otherwise.

 

“Agent” shall have the meaning
set forth in the preamble to the Credit Agreement.

 

    	 	Annex A
Page 2
	 

     

    

  

[Definitions]

 

“Agreed Investments”
shall mean any of the following investments so long as the issuer thereof has a senior unsecured long term rating of at least “A”
by S&P and “A2” by Moody’s (and the related investment would have the benefit of such ratings): (a) any bond,
note or other obligation which is a direct obligation of or guaranteed by the U.S. or any agency thereof (having original maturities
of no more than 30 days, or such lesser time as is required for the distribution of funds); (b) any obligation which is a direct
obligation of or guaranteed by any state of the U.S. or any subdivision thereof or any agency of any such state or subdivision
(having original maturities of no more than 30 days, or such lesser time as is required for the distribution of funds), and which
has the highest rating published by Moody’s or S&P; or (c) any money market investment instrument relying upon the credit
and backing of any bank or trust company which is a member of the Federal Reserve System and which has a combined capital (including
capital reserves to the extent not included in capital) and surplus and undivided profits of not less than $500,000,000 (including
the Security Trustee and its Affiliates if such requirements as to Federal Reserve System membership and combined capital and surplus
and undivided profits are satisfied), including, without limitation, certificates of deposit, time and other interest-bearing deposits,
bankers’ acceptances, commercial paper, loan and mortgage participation certificates and documented discount notes accompanied
by irrevocable letters of credit and money market funds investing solely in securities backed by the full faith and credit of the
United States.

 

“Air Nostrum Aircraft”
shall mean either or both of the 19002 Aircraft and the 19003 Aircraft, as the context may require.

 

“Air Nostrum Excess Amount”
shall have the meaning set forth in Section 2.8 of the Credit Agreement.

 

“Air Nostrum Proceeds”
shall have the meaning set forth in Section 2.8 of the Credit Agreement.

 

“Aircraft” shall
mean, (i) individually, each Airframe, together with the related Engines, whether or not any of such Engines may at any time of
determination be installed on such Airframe or installed on any other airframe, and the Aircraft Documents in respect thereof and
(ii) collectively, all such Aircraft. Each of the Republic Aircraft, the Air Nostrum Aircraft and the Adria Aircraft are “Aircraft”
hereunder.

 

“Aircraft Documents”
shall mean, with respect to an Aircraft, whether in paper, photographic, digital, electronic or other medium, the documents, data,
logs and records maintained in respect of such Aircraft pursuant to the terms of the relevant Lease, and all additions, renewal,
revisions and replacements from time to time made in accordance with such Lease.

 

“Airframe” shall
mean (i) an airframe associated with the Adria Aircraft, each Air Nostrum Aircraft and each Republic Aircraft bearing the manufacturer’s
serial number and registration and nationality mark as specified on Schedule II to the Credit Agreement and as more specifically
described in the relevant Security Agreement Supplement; and (ii) any and all Parts related to such Airframe so long as the same
shall have been furnished with, installed on or appurtenant to such Airframe on Delivery of such Airframe, or title to which has,
or should have, passed to the relevant Mortgagor pursuant to the Lease with respect to such Airframe.

 

    	 	Annex A
Page 3
	 

     

    

  

[Definitions]

 

“Airframe Warranties”
shall mean, with respect to an Aircraft, all remaining and assignable warranties (if any) relating to such Aircraft and related
equipment manufactured by the relevant Airframe manufacturer that were assigned to the relevant Mortgagor in connection with its
purchase of such Aircraft or that were subsequently granted to such Mortgagor.

 

“Amortization
Schedule” shall mean, with respect to each Loan Certificate for any Loan, the amortization schedule for such Loan
Certificate and Loan established pursuant to Section 2.3 of the Credit Agreement.

 

“Anti -Corruption
Laws” shall mean all laws, rules, and regulations of any jurisdiction applicable to any of the Borrowers or the Borrower
Parent or, in each case, its subsidiaries from time to time concerning or relating to bribery or corruption.

 

“Anti-Money Laundering Laws”
shall have the meaning set forth in Section 7.14 of the Credit Agreement.

 

“Applicable Margin”
shall mean, with respect to any Loan as of any date, the Applicable Margin for such Loan specified in Schedule II to the Credit
Agreement.

 

“Associated Rights” is defined
in the Cape Town Convention.

 

“Availability Period”
shall mean the period from (and including) the Closing Date to (but excluding) the Availability Termination Date.

 

“Availability Termination Date”
shall mean March 31, 2019.

 

“Aviation Authority”
shall mean, with respect to any Aircraft, any governmental authority that is or shall from time to time be vested with the control
and supervision of, or have jurisdiction over, the registration, airworthiness and operation of aircraft or other matters relating
to civil aviation in the State of Registration under applicable law.

 

“Bail-In Action” shall mean
the exercise of any Write-down and Conversion Powers.

 

“Bail-In Legislation”
shall mean, in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive
2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing
law or regulation as described in the EU Bail-In Legislation Schedule from time to time.

 

“Basic Rent” shall
mean, with respect to any Lease, any amounts of “Basic Rent” or similar term (as defined in such Lease) paid by the
applicable Lessee to or for the account of the lessor pursuant to the terms of such Lease.

 

“Basic Rent Payment Date”
shall mean, with respect to any Lease, the first day of each Rental Period under such Lease.

 

“Borrower” shall have the
meaning set forth in the preamble to the Credit Agreement.

 

    	 	Annex A
Page 4
	 

     

    

  

[Definitions]

 

“Borrower Parent”
shall mean AeroCentury Corp., a corporation incorporated under the laws of the State of Delaware.

 

“Borrower Parent Pledge Agreement”
shall mean, in respect of a Borrower, a pledge agreement or share charge in respect of the ownership interests of such Borrower
dated the Closing Date between the Borrower Parent and the Security Trustee, substantially in the form of Exhibit B-2 to the Credit
Agreement or otherwise in form and substance reasonably satisfactory to the Security Trustee.

 

“Borrower Parent Pledged Collateral
” shall mean, the “Pledged Collateral”, “Collateral”, “Shares”, “Security Asset”
or like term as defined in any Borrower Parent Pledge Agreement.

 

“Borrower Parties” shall
mean each Lessor, each Borrower and the Borrower Parent.

 

“Borrower Pledge Agreement”
shall mean, in respect of a Lessor, a membership interest pledge agreement in respect of the ownership interests of such Lessor
between the applicable Borrower and the Security Trustee, substantially in the form of Exhibit B-1 to the Credit Agreement.

 

“Borrower Pledged Collateral”
shall mean, the “Pledged Collateral”, “Collateral”, or like term as defined in any Borrower Pledge Agreement.

 

“Breakage Event”
shall mean (i) any failure to borrow a Loan under Section 2.2 of the Credit Agreement despite all of the conditions precedent set
forth in Section 3.1 and 3.2 of the Credit Agreement having been satisfied, other than due to a failure by the Participants to
fund following the satisfaction of all conditions precedent thereto, (ii) the acceleration of the Loans or (iii) payment or prepayment
(other than by acceleration) of principal or interest on any Loan Certificate held by it not being made on the date irrevocably
scheduled therefor (including a prepayment that is not received by the Security Trustee on the date specified in a notice delivered
by the relevant Borrower pursuant to Section 2.10 of the Security Agreement).

 

“Business Day”
shall mean (a) any day other than (i) a Saturday or Sunday or (ii) a day on which commercial banks are not authorized or required
to close in New York, New York, San Francisco, California and Hannover, Germany and (b) if such day relates to the giving of notices
or quotes in connection with a borrowing of, a payment or prepayment of principal of or interest on, or an Interest Period for,
a Loan or a notice by a Borrower with respect to any such borrowing, payment, prepayment or Interest Period, any day on which dealings
in Dollar deposits are carried out in the London interbank market.

 

“Cape Town Convention”
shall mean the official English language texts of the Convention on International Interests in Mobile Equipment and the Protocol
to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment which were signed in
Cape Town, South Africa on November 16, 2001.

 

    	 	Annex A
Page 5
	 

     

    

  

[Definitions]

 

“Cape Town Registrations”
shall mean, with respect to any Aircraft, the registration on the International Registry of (1) international interests in respect
of the Airframe and each Engine related to such Aircraft to evidence the Security Agreement as supplemented by the Security Agreement
Supplement with respect to such Aircraft, (2) international interests in respect of the Airframe and each Engine related to such
Aircraft to evidence the Local Law Mortgage (if any), (3) if the Lessee of such Aircraft is situated in a Contracting State (as
defined in the Cape Town Convention), the assignment of the international interests in respect of the Airframe and each Engine
related to such Aircraft which evidence the Lease with respect to such Aircraft under the Security Agreement as supplemented by
the Security Agreement Supplement and (4) if the Lessee of such Aircraft is situated in a Contracting State (as defined in the
Cape Town Convention), the transfer of the right to discharge the international interests in respect of the Airframe and each Engine
related to such Aircraft which evidence the Lease with respect to such Aircraft.

 

“Cash Collateral Account”
shall have the meaning set forth in Section 2.03(b) of the Security Agreement.

 

“Closing Date”
shall mean the date on which the conditions specified in Section 3.1 of the Credit Agreement shall be satisfied.

 

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

 

“Collateral Accounts”
shall have the meaning set forth in Section 2.03(a) of the Security Agreement.

 

“Commitment” shall
mean, for each Participant, the obligation of such Participant to fund portions of the Loans at any one time in an aggregate amount
up to but not exceeding the amount set opposite the name of such Participant in Schedule I to the Credit Agreement under the caption
“Commitment” as the same may be varied in accordance with any assignment of Commitments pursuant to Section 7.4 of
the Credit Agreement; provided that no such variation of Schedule I to the Credit Agreement shall change the amount of the Total
Commitment.

 

“Consent and Recognition of
Rights Agreement” shall mean, in respect of the 19003 Aircraft, the consent and recognition of rights agreement,
related to the Engine bearing manufacturer’s serial number 194975 and dated on or about the relevant Drawdown Date, among
the 19003 Borrower, as lessor and owner, Air Nostrum Lineas Aereas del Mediterraneo, S.A., as lessee and sublessor, HEH Aviation
“Sevilla” Beteiligungsgesellschaft mbH & Co. KG, as airframe lessor and airframe owner, Mediterranean Aviation
Operations Company Limited, as sublessee, and the Security Trustee.

 

“Credit Agreement” shall
mean the Credit Agreement.

 

“Cutoff Date”
shall have the meaning set forth in Section 2.4(a) of the Credit Agreement.

 

“Day-to -Day Operational Matters”
shall mean any matter relating to a Lease and/or the relevant Lessee which is purely of administrative or non-material or routine
operational nature.

 

“Debt Rate” shall
mean for each day during an Interest Period and for any Loan, the sum of the LIBOR Rate for such Loan for such day plus the Applicable
Margin for such Loan.

 

    	 	Annex A
Page 6
	 

     

    

  

[Definitions]

 

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

 

“Delivery” shall
mean, with respect to an Aircraft, an Airframe or an Engine, the “Delivery” thereof or similar term (as defined in
any Lease).

 

“Deposit” shall have the
meaning set forth in Section 2.3 of the Credit Agreement.

 

“Deregistration Power of Attorney”
shall mean, with respect to an Aircraft, (i) if and to the extent required under the applicable Lease, the power of attorney executed
by the applicable Lessee related thereto in favor of, inter alios, the Security Trustee and/or (ii) the power of attorney
executed by the applicable Borrower or Lessor, as the case may be, in favor of the Security Trustee, in each case in connection
with the repossession, re-export and deregistration of such Aircraft and as the context may require.

 

“Documentation”
shall have the meaning set forth in Section 7.14(g) of the Credit Agreement.

 

“Dollars” and “$”
shall mean the lawful currency of the United States of America.

 

“Drawdown
Date” shall mean, with respect to any Loan and any Aircraft, the date on which such Loan is advanced by the Participants
to the Borrower of such Loan pursuant to the terms of the Credit Agreement.

 

“EEA Member Country”
shall mean any member state of the European Union, Iceland, Liechtenstein and Norway.

 

“Enforcement Notice”
shall have the meaning set forth in Section 4.04(a) of the Security Agreement.

 

“Engine” shall
mean (i) each engine that is identified by manufacturer’s model and serial number that is associated with an Air Nostrum
Aircraft, a Republic Aircraft or the Adria Aircraft and is set forth in Schedule II to the Credit Agreement and in the applicable
Security Agreement Supplement, whether or not attached to the Airframe related thereto or any other airframe, or (ii) a Replacement
Engine, together in each case with any and all related Parts so long as the same shall have been furnished with, installed on or
appurtenant to such Engines on Delivery of such Aircraft, or title to which has, or should have, passed to the relevant Mortgagor
pursuant to the Lease with respect to such Aircraft.

 

“Engine Warranties”
shall mean, with respect to an Aircraft, all remaining and assignable warranties (if any) relating to the Engines related to such
Aircraft and related equipment manufactured by the Engine manufacturer relating to such Engines that were assigned to the relevant
Mortgagor in connection with its purchase of such Aircraft or that were subsequently granted.

 

“ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended.

 

    	 	Annex A
Page 7
	 

     

    

  

[Definitions]

 

“EU Bail -In Legislation Schedule”
shall mean the document described as such and published by the Loan Market Association (or any successor person) from time to time.

 

“Event of Default”
shall have the meaning specified in Section 4.02 of the Security Agreement.

 

“Event of Loss ”
shall mean, with respect to an Aircraft, an Airframe or an Engine, (i) at any time such Aircraft, Airframe or Engine is subject
to a Lease, a “Total Loss” or similar term (as defined such Lease) or formulation used in such Lease and (ii) at any
time such Aircraft, Airframe or Engine is not subject to a Lease, a “Total Loss” or similar term (as defined in the
Lease with respect to such Aircraft, Airframe or Engine which was in effect on the Drawdown Date for the Aircraft related thereto
or formulation used in such Lease).

 

“Event of Loss Date”
shall mean, with respect to an Aircraft, an Airframe or an Engine, (i) at any time such Aircraft, Airframe or Engine is
subject to a Lease, the “Total Loss Date” or similar term (as defined such Lease) and (ii) at any time such
Aircraft, Airframe or Engine is not subject to a Lease, the “Total Loss Date” or similar term (as defined in the
Lease with respect to such Aircraft, Airframe or Engine which was in effect on the Drawdown Date for the Aircraft related
thereto).

 

“Event of Loss Excess Proceeds”
shall have the meaning set forth in Section 2.10(b)(i) of the Security Agreement.

 

“Event of Loss Prepayment Amount”
shall have the meaning set forth in Section 2.10(b)(i) of the Security Agreement.

 

“Excess Sales Proceeds”
shall have the meaning set forth in Section 2.10(b)(ii) of the Security Agreement.

 

“Excluded Payments” shall
mean:

 

(i)       indemnity payments
or similar obligations paid or payable by any Lessee to or in respect of any Borrower Party, including each of its respective shareholders,
members, partners, Affiliates, directors, officers, employees, servants and agents, pursuant to any Lease;

 

(ii)       proceeds of public
liability insurance in respect of an Aircraft payable as a result of insurance claims made, or losses suffered, by any Borrower
Party, which are payable directly to any Borrower Party for its own account or for the account of any Borrower Party, including
any of its shareholders, members, partners, Affiliates, directors, officers, employees, servants and agents;

 

(iii)       if the related
Aircraft is subject to a Lease, proceeds of insurance maintained with respect to such Aircraft by or for the benefit of any Borrower
Party for its own account or benefit, or for the account or benefit of any Borrower Party, including any of its shareholders, members,
partners, Affiliates, directors, officers, employees, servants and agents;

 

(iv)       any interest that
pursuant to the Operative Documents may from time to time accrue in respect of any of the amounts described in clauses (i) through
(iii) above;

 

    	 	Annex A
Page 8
	 

     

    

  

[Definitions]

 

(v)       any right to enforce
the payment of any amount described in clauses (i) through (iv) above (provided that the rights referred to in this clause (v)
shall not be deemed to include the exercise of any remedies provided for in any Lease other than the right to sue for specific
performance of any covenant to make such payment or to sue for damages in respect of the breach of any such covenant); and

 

(vi)       any right to exercise
any election or option or make any decision or determination, or to give or receive any notice, consent, waiver or approval, or
to take any other action in respect of, but in each case, only to the extent relating to, the foregoing.

 

“Excluded Tax Payment”
shall have the meaning set forth in Section 2.13(m) of the Security Agreement.

 

“Excluded Taxes”
shall mean any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment
to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes,
in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in
the case of any Participant, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Participant, U.S. federal withholding Taxes imposed on amounts
payable to or for the account of such Participant with respect to an applicable interest in a Loan or Commitment pursuant to a
law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an
assignment under Section 2.13(c) of the Security Agreement) or (ii) such Participant changes its lending office, except in each
case to the extent that, pursuant to Section 2.13 of the Security Agreement, amounts with respect to such Taxes were payable either
to such Participant's assignor immediately before such Participant acquires such interest or to such Participant immediately before
it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.13(f) of the Security
Agreement and (d) any withholding Taxes imposed under FATCA.

 

“FATCA” shall have the meaning
set forth in Section 2.13(k) of the Security Agreement.

 

“Fee Letter” shall
mean the Fee Letter, dated as of February 7, 2019, among the Borrowers and the Agent.

 

“Finance Parties”
shall mean, collectively, the Swap Counterparty, the Participants, the Agent and the Security Trustee.

 

“Funds Flow Agreement”
shall mean any funds flow agreement or payment direction letter entered into among any Borrower, the Security Trustee and any existing
security trustee, agent or lender in respect of existing financing being paid off on the relevant Drawdown Date in respect of an
Aircraft, in form and substance reasonably satisfactory to the Security Trustee and the Participants.

 

“GMLA” shall have the meaning
set forth in Section 7.13 of the Credit Agreement.

 

    	 	Annex A
Page 9
	 

     

    

  

[Definitions]

 

“Governmental Authority”
shall have the meaning set forth in Section 5.5 of the Credit Agreement.

 

“Granting Clause”
shall mean the portion of the Security Agreement under the heading “GRANTING CLAUSE.”

 

“Granting Clause Documents”
shall mean, collectively, the documents, contracts and instruments subject to the Granting Clause.

 

“IDERA” shall
mean, in respect of an Aircraft, if the State of Registration of such Aircraft is a “contracting state” as defined
in the Cape Town Convention that has made a declaration pursuant to Article XXX(1) of the Cape Town Convention that Article XIII
of the Cape Town Convention shall apply, an irrevocable deregistration and export request authorization issued by the relevant
Lessee or the relevant Borrower or Lessor, as the case may be, in favor of the Security Trustee, as authorized party.

 

“Illegality Event”
shall mean an event or condition that would cause the making or maintaining of any Loan or Commitment by any Participant or the
performance by any Borrower of any of its obligations under any Loan Operative Documents to be unlawful by reason of any change
after the Closing Date in any law or in any requirement of any monetary authority whether or not having the force of law.

 

“Indemnitee” or
“Indemnitees” shall mean the Security Trustee, the Agent, the Swap Counterparty, the Participants and
each of their respective successors, permitted assigns, directors, officers, and employees, and for purposes of Section 2.13(i)
of the Security Agreement, shall include the Borrower Parties or any Affiliate thereof, and each of their respective successors,
permitted assigns, directors, officers, employees and Affiliates.

 

“Indemnity
Agreement” shall mean that certain indemnity agreement dated on or about the Closing Date among the Borrower Parent,
the Participants, the Agent, the Swap Counterparty and the Security Trustee.

 

“Intercompany Indebtedness”
shall mean debt for borrowed money loaned by the Borrower Parent to any Borrower or Lessor which shall be subordinate to the Secured
Obligations on terms reasonably satisfactory to the Agent.

 

“Interest Period”
shall mean, for each Loan, each period commencing on (and including) a Payment Date (or its Drawdown Date, as the case may be)
and ending on (but excluding) the next Payment Date.

 

“International Interest”
is defined in the Cape Town Convention.

 

“International Registry”
is defined in the Cape Town Convention.

 

“IRS” shall have the meaning
set forth in Section 2.13(a) of the Security Agreement.

 

“Lease” shall
mean, in respect of an Aircraft, the lease agreement entered into by the relevant Borrower or Lessor, as the case may be, in respect
thereof, as amended, supplemented and modified from time to time, pursuant to which such Borrower or such Lessor, as the case
may be, leases such Aircraft to the Lessee related thereto, as identified on the related Security Agreement Supplement.

 

    	 	Annex A
Page 10
	 

     

    

  

[Definitions]

 

“Lease
Assignment” shall mean, in respect of an Aircraft, a security assignment of the relevant Lease between the relevant
Borrower or Lessor, as the case may be, and the Security Trustee.

 

“Lease Default”
shall mean any default under a Lease which is not or has not become, through the giving of notice and/or passage of time or otherwise,
a Lease Event of Default.

 

“Lease Event of Default”
shall mean any default under a Lease which, through the giving of notice, the passage of time or otherwise, has become an “event
of default” or similar term (as defined and used in such Lease) thereunder; provided that, except with respect to
Sections 3.2(g)(v)(y) and 3.2(m)(v) of the Credit Agreement, in respect of the Lease related to the Adria Aircraft, any default
by the relevant Lessee of any installment of Rent due under such Lease that has occurred and been continuing for fewer than 120
days shall not be a Lease Event of Default.

 

“Lease Expiration Date”
shall mean, in respect of a Lease, the date on which the term of such Lease is scheduled to expire in accordance with its terms,
as specified in a Security Agreement Supplement for such Aircraft.

 

“Lease
Management Agreement” shall mean, in respect of an Air Nostrum Aircraft, the lease management agreement for such
Air Nostrum Aircraft entered into by the Borrower Parent and the relevant Borrower.

 

“Lease Operative Documents”
shall mean, with respect to any Lease, such Lease and any credit support agreement or instrument furnished by the related Lessee
or other Lessee Party to the relevant Borrower or Lessor, as the case may be, under such Lease, which are identified in Annex A
to a Security Agreement Supplement relating thereto as “Lease Operative Documents” and any other documents which may
be entered into between the relevant Borrower or Lessor, as the case may be, and any Lessee Parties from time to time.

 

“Lease Termination Notice”
shall have the meaning set forth in Section 4.03(b)(ii) of the Security Agreement.

 

“Lessee” shall
mean, with respect to any Lease with respect to an Aircraft, the lessee under such Lease as specified in Schedule II to the Credit
Agreement and Annex A to the relevant Security Agreement Supplement for such Aircraft (or any further supplement thereto) (it being
understood that “Lessee” shall not include any Borrower or any Lessor).

 

“Lessee
Parties” shall mean, with respect to any Lease, the related Lessee and any of the other Persons obligors under any
Lease Operative Documents (other than the Lease) identified in Annex A to a Security Agreement Supplement relating thereto as “Lessee
Parties”, and any other Person which may enter into an agreement with the relevant Borrower or Lessor, as the case may be,
under such Lease and/or any other Lessee Party in respect of such Lease from time to time.

 

    	 	Annex A
Page 11
	 

     

    

  

[Definitions]

 

“Lessee
Parties Acknowledgement” shall mean, with respect to each Lease, a Notice and Acknowledgement dated the Drawdown
Date for the Aircraft subject to such Lease among the relevant Borrower or Lessor, as the case may be, the Security Trustee and
the Lessee Parties party thereto, in form and substance reasonably satisfactory to the Security Trustee.

 

“Lessor” shall
mean, with respect to a Republic Aircraft, Wells Fargo Delaware Trust Company, National Association, not in its individual capacity
but solely as owner trustee of the trust that owns such Republic Aircraft.

 

“Lessor Lien”
shall mean, with respect to an Aircraft, (i) at any time such Aircraft, is subject to a Lease, a “Lessor Lien”, “Permitted
Lien” or similar term (as defined such Lease) and (ii) at any time such Aircraft is not subject to a Lease, a “Lessor
Lien”, “Permitted Lien” or similar term (as defined in the Lease with respect to such Aircraft which was in effect
on the Drawdown Date for the Aircraft related thereto).

 

“LIBOR Breakage”
shall mean the amount, if any, required to compensate each Participant for any losses (excluding loss of profit and the type of
losses, costs and expenses included in Swap Breakage Loss or Liquidity Breakage) which it incurs (on an actual or notional basis)
as the result of any failure to borrow a Loan under Section 2.2 of the Credit Agreement following the issuance of the relevant
Notice of Borrowing or payment or prepayment (by acceleration or otherwise) of principal or interest on any Loan Certificate held
by it on a date other than a Payment Date or the failure to make any such payment on the date scheduled therefor, including, without
limitation, losses incurred in connection with unwinding or liquidating any deposits or funding arrangements with its funding sources,
as reasonably determined by such Participant, which determination shall be conclusive absent manifest error.

 

“LIBOR Rate” shall
mean (i) in respect of a Loan related to an Air Nostrum Aircraft, the 3 Month LIBOR Rate and (ii) in respect of a Loan related
to a Republic Aircraft or the Adria Aircraft, the 1 Month LIBOR Rate.

 

“Lien” shall mean
any mortgage, pledge, security interest, lien, encumbrance, lease, or other charge of any kind on property.

 

“Liquidity Breakage”
shall mean the amount, if any, required to compensate each Participant for any losses (excluding loss of profit and the type of
losses, costs and expenses included in Swap Breakage Loss or LIBOR Breakage) which it incurs (on an actual or notional basis) as
the result of (x) any failure to borrow a Loan under Section 2.2 of the Credit Agreement following the issuance of the relevant
Notice of Borrowing or (y) any acceleration under Section 4.04(b) of the Security Agreement or prepayment after acceleration under
Section 4.04(b) of the Security Agreement of principal or interest on any Loan Certificate held by it or the failure to make any
such payment on the date scheduled therefor, including, without limitation, losses incurred in connection with unwinding or liquidating
any liquidity arrangements in connection with the establishment of any Liquidity Margin, as reasonably determined by such Participant,
which determination shall be conclusive absent manifest error.

 

    	 	Annex A
Page 12
	 

     

    

  

[Definitions]

 

“Liquidity Margin”
shall mean a rate per annum equal to the liquidity cost to Nord/LB of funding a Loan for the period commencing on the relevant
Drawdown Date through the relevant Maturity Date, as determined by the Treasury desk of Nord/LB on the date that is three Business
Days (or such shorter period agreed to by Nord/LB in its sole discretion) prior to the Scheduled Drawdown Date. The Liquidity Margin,
as so determined, shall be conclusive and binding absent manifest error.

 

“Loan” shall have the meaning
set forth in Section 2.1 of the Credit Agreement.

 

“Loan Amount”
shall mean, in respect of a Loan, the amount of such Loan specified in the Notice of Borrowing relating thereto; provided that,
with respect to any Loan, an indicative maximum of the Loan Amount of such Loan shall be set forth opposite such Aircraft on Schedule
II to the Credit Agreement.

 

“Loan Certificate Register”
shall have the meaning set forth in Section 2.07 of the Security Agreement.

 

“Loan Certificates”
shall mean, with respect to a Loan, the loan certificates in substantially the form of Exhibit B to the Security Agreement outstanding
under the Loan Operative Documents.

 

“Loan Operative Documents”
shall mean this Security Agreement, each Security Agreement Supplement, each Loan Certificate, the Credit Agreement, the Consent
and Recognition of Rights Agreement, the Indemnity Agreement, the Fee Letter, each Swap Agreement, each Lessee Parties Acknowledgement,
each Local Law Mortgage, each RVG Notice and Acknowledgment, any Warranty Agreement, any Funds Flow Agreement, each Borrower Parent
Pledge Agreement and each Borrower Pledge Agreement.

 

“Local Law Mortgage”
shall mean (i) with respect to an Aircraft, a mortgage in respect of such Aircraft governed by a law other than New York law, including,
in respect of the Adria Aircraft, the Slovenian Mortgage or (ii) with respect to an Aircraft registered in the United States of
America, a mortgage of such Aircraft governed by New York law and filed with the Federal Aviation Administration.

 

“Local Law Requirements”
shall mean, with respect to any Aircraft, the conditions precedent and subsequent to the Drawdown Date for such Aircraft set forth
on Schedule III to the Credit Agreement. The Local Law Requirements for any Aircraft shall be determined based on advice received
from local counsel retained by the Agent (with the advice of the relevant Borrower) in the applicable jurisdictions and shall
be reasonably necessary in order to (i) establish and/or maintain the perfection of the Security Trustee’s interests in
the Mortgaged Property, Borrower Pledged Collateral and Borrower Parent Pledged Collateral, (ii) ensure the enforceability and
validity of the Loan Operative Documents and (iii) take all shall mean, in respect of an Interestsuch other action in such jurisdiction as may be recommended or customary,
as determined based on such local counsel’s advice.

 

“Mandated Lead Arranger”
shall mean Nord/LB.

 

“Mandatory Prepayment Event”
shall mean any of the events giving rise to prepayment of a Loan under Section 2.10(b) of the Security Agreement.

 

    	 	Annex A
Page 13
	 

     

    

  

[Definitions]

 

“Market
Disruption Event” shall mean, in respect of an Interest Period with respect to a Loan, (i) the applicable Screen
Rate is not available or (ii) any Participant advises the Agent that the LIBOR Rate for such Interest Period will not accurately
reflect the cost to such Participant of maintaining or funding its respective portion of such Loan for such Interest Period (as
a result of a market-wide disruption and not as a result of an idiosyncratic change to the creditworthiness of such Participant
(unless such change is caused by a market-wide disruption)).

 

“Material Lease Breach”
shall mean, in respect of a Lease, any of (i) subject to Section 4.03(a) of the Security Agreement, a default by the relevant Lessee
in the payment when due of any amounts under such Lease greater than $25,000, (ii) an insolvency or bankruptcy event in respect
of the relevant Lessee, (iii) a failure by the relevant Lessee to insure the relevant Aircraft in accordance with the terms of
such Lease and (iv) a failure by the relevant Lessee to comply with a material maintenance obligation pursuant to the terms of
such Lease.

 

“Maturity Date”
shall mean, with respect to any Loan, the Maturity Date for such Loan specified in Schedule II to the Credit Agreement; provided
that in the case of an Air Nostrum Aircraft, such date shall be the later of (a) such Maturity Date specified in Schedule II to
the Credit Agreement and (b) the earlier of (i) the date of receipt of an RVG Payment Amount under the relevant Residual Value
Guarantee and (ii) 30 days after such Maturity Date specified in Schedule II to the Credit Agreement

 

“Mortgaged Property” shall
have the meaning specified in the Granting Clause.

 

“Mortgagee” shall have the
meaning set forth in the preamble to the Security Agreement.

 

“Mortgagee Event”
shall mean either: (i) the Loan Certificates shall have become due and payable pursuant to Section 4.04(b) of the Security Agreement;
or (ii) the Mortgagee has taken action or notified the Mortgagors that it intends to take action to foreclose the Lien of the Security
Agreement or otherwise commence the exercise of any significant remedy under the Security Agreement or any Lease.

 

“Mortgagee’s Office”
shall mean the Mortgagee’s address set forth in Section 9.06 of the Security Agreement or such other office in the United
States as the Mortgagee may from time to time specify to the Mortgagor and the Lessee.

 

“Mortgagor” shall
have the meaning set forth in the preamble to the Security Agreement.

 

“Nord/LB” shall have the
meaning set forth in the preamble to the Credit Agreement.

 

“Notice of Borrowing”
shall mean, with respect to any Loan, a notice of borrowing delivered by a Borrower to the Agent substantially in the form of Exhibit
A to the Credit Agreement.

 

“OFAC” shall have the meaning
set forth in Section 7.14 of the Credit Agreement.

 

“OFAC Laws” shall have the
meaning set forth in Section 7.14 of the Credit Agreement.

 

    	 	Annex A
Page 14
	 

     

    

  

[Definitions]

 

“OFAC SDN List”
shall have the meaning set forth in Section 7.14 of the Credit Agreement.

 

“OFAC Violation”
shall have the meaning set forth in Section 7.14(e) of the Credit Agreement.

 

“Operative Documents”
shall mean the Loan Operative Documents and the Lease Operative Documents.

 

“Original Amount”
shall mean, for any Loan Certificate, the principal amount of a Loan funded by the applicable Participant on the Drawdown Date
for such Loan or, in respect of any Loan Certificate issued after the Drawdown Date for such Loan, the principal amount of the
applicable Participant’s portion of such Loan outstanding at the time of such Loan Certificate’s original issuance.

 

“Other Connection Taxes”
means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the
jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to,
performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other
transaction pursuant to or enforced any Loan Operative Document, or sold or assigned an interest in any Loan or Loan Operative
Document).

 

“Participant” shall have
the meaning set forth in the preamble to the Credit Agreement.

 

“Participation Percentage”
shall mean, for any Participant, the percentage set opposite the name of such Participant in Schedule I to the Credit Agreement,
or if there is only one Participant, 100%.

 

“Parts”
shall mean, in respect of an Airframe or an Engine, any and all appliances, parts, instruments, components, appurtenances, accessories,
furnishings, seats, and other equipment of whatever nature (other than complete Engines or engines and cargo containers) which
are either (i) furnished with, installed on or appurtenant to the Airframe and Engines at Delivery of the related Aircraft or
title to which has passed to the relevant Borrower or Lessor, as the case may be, under the related Lease.

 

“Past Due Rate”
shall mean, in respect of any principal of or interest on any Loan Certificate or any other amount under any other Loan Operative
Document that is not paid by the relevant Mortgagor when due (whether at stated maturity, by acceleration, by optional or mandatory
prepayment or otherwise), a rate per annum during the period from and including the due date to but excluding the date on which
such amount is paid in full equal to 2.0% plus the Debt Rate.

 

“Payment Date”
shall mean, in respect of a Loan, (i) each day specified as a “Payment Date” in the Amortization Schedule for such
Loan and (ii) the applicable Maturity Date.

 

    	 	Annex A
Page 15
	 

     

    

  

[Definitions]

 

“Person” shall
mean any individual, corporation, company, limited liability company, voluntary association, partnership, joint venture, trust,
unincorporated organization or government (or any agency, instrumentality or political subdivision thereof).

 

“Pledged Collateral”
shall mean, collectively, the Borrower Pledged Collateral and the Borrower Parent Pledged Collateral.

 

“Prepayment Fee”
shall mean, with respect to the prepayment of any Loan pursuant to Section 2.10(a)(i) of the Security Agreement, (i) on or prior
to the one year anniversary of the Drawdown Date for such Loan, an amount equal to 3.0% of the principal amount of such Loan; (ii)
after the one year anniversary of such Drawdown Date but on or prior to the two year anniversary of such Drawdown Date, an amount
equal to 2.0% of the principal amount of such Loan; (iii) after the two year anniversary of such Drawdown Date but on or prior
to the three year anniversary of such Drawdown Date, an amount equal to 1.0% of the principal amount of such Loan. No Prepayment
Fee shall be payable in respect of any prepayment pursuant to Section 2.10(a) of the Security Agreement after the third anniversary
of the Closing Date, or in respect of a prepayment pursuant to Section 2.10(a)(ii) or 2.10(b) of the Security Agreement or, for
the avoidance of doubt, if a Borrower repays its Loan on the relevant Maturity Date.

 

“Regulation D”
shall mean Regulation D of the Board of Governors of the Federal Reserve System (or any successor), as the same may be modified
and supplemented and in effect from time to time.

 

“Regulatory Change”
shall mean, with respect to any Participant, any change that occurs after the date hereof in Federal, state or foreign law or
regulations (including Regulation D) or the adoption or making after such date of any interpretation, directive or request applying
to a class of banks or financial institutions including such Participant of or under any Federal, state or foreign law or regulations
(whether or not having the force of law and whether or not failure to comply therewith would be unlawful so long as compliance
therewith is standard banking practice in the relevant jurisdiction) by any court or governmental or monetary authority charged
with the interpretation or administration thereof. “Regulatory Change” shall include (i) any adoption of risk-based
capital adequacy guidelines described by the Basel Committee on Banking Regulations and Supervisory Practices and commonly known
as Basel III and (ii) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
thereunder or issued in connection therewith

 

“Rental Period”
shall mean, with respect to any Lease, the “Rental Period” or similar term (as defined in such Lease).

 

“Remarketing Agent”
shall mean (i) in respect of the early termination of a Lease prior to the Lease Expiration Date under such Lease by the relevant
Borrower or the relevant Lessor, as the case may be, the Borrower Parent, (ii) in respect of the termination of a Lease related
to an Air Nostrum Aircraft on the Lease Expiration Date for such Lease, Bombardier Inc. and (iii) any other remarketing agent mutually
agreed by the Borrower Parent and the Agent.

 

“Remarketing Period”
shall have the meaning set forth in Section 4.03(b)(ii) of the Security Agreement.

 

    	 	Annex A
Page 16
	 

     

    

  

[Definitions]

 

“Remarketing Period Condition
” shall mean all of the undertakings of the relevant Borrower under Section 4.03(b)(iii) – (v) and (vii) of the Security
Agreement during any Remarketing Period.

 

“Rent” shall mean,
with respect to any Lease, the “Rent” or similar term (as defined in such Lease).

 

“Replacement Engine”
shall mean any engine substituted for an Engine in accordance with Section 7.01 of the Security Agreement.

 

“Replacement Republic Aircraft”
shall have the meaning set forth in Section 5.1(t) of the Credit Agreement.

 

“Republic Aircraft”
shall mean any or all of the 17000168 Aircraft, the 17000172 Aircraft and the 17000173 Aircraft, as the case may be.

 

“Republic Replacement”
shall have the meaning set forth in Section 5.1(t) of the Credit Agreement.

 

“Required Participants”
shall mean, as of any date of the determination thereof, the holders of not less than a majority, in aggregate, of the outstanding
principal amount of all Loan Certificates as of such date. For all purposes of the foregoing definition, in determining as of any
date the then aggregate outstanding principal amount of Loan Certificates, there shall be excluded any Loan Certificates, if any,
held by any Borrower or any of its Affiliates.

 

“Reserve Requirement”
shall mean, for any Loan Certificate, the average maximum rate at which reserves (including, without limitation, any marginal,
supplemental or emergency reserves) are required to be maintained in respect of such Loan Certificate under Regulation D by member
banks of the Federal Reserve System in New York City with deposits exceeding one billion Dollars against “Eurocurrency liabilities”
(as such term is used in Regulation D).

 

“Residual Value Guarantee”
shall mean, in respect of an Air Nostrum Aircraft, the residual value guarantee agreement in respect of such Air Nostrum Aircraft
dated December 17, 2010 between Aviacion RC II, A.LE. and Bombardier Inc., as novated to the relevant Borrower and including any
side letters relating to such residual value guarantee agreement.

 

“Return Compensation Payments”
shall mean, in respect of an Aircraft, any and all amounts paid or payable, as the context may require, from time to time by the
relevant Lessee in relation to the condition of such Aircraft upon any return of such Aircraft pursuant to the relevant Lease.

 

“RVG Notice and Acknowledgment”
shall mean, in respect of an Air Nostrum Aircraft, the notice and acknowledgment of the collateral assignment of the payments and
proceeds payable under the relevant Residual Value Guarantee pursuant to the Security Agreement among the relevant Borrower, the
Security Trustee and Bombardier Inc.

 

"RVG Payment Amount"
shall have the meaning set forth in Section 2.8 of the Credit Agreement.

 

    	 	Annex A
Page 17
	 

     

    

  

[Definitions]

 

“Resolution Authority”
shall mean any body which has authority to exercise any Write-down and Conversion Powers.

 

“Sanction Provision”
shall have the meaning set forth in Section 7.14(h) of the Credit Agreement.

 

“Sanctioned Country”
shall mean at any time, a country or territory, or whose government, which is itself the subject or target of any Sanctions broadly
restricting or prohibiting dealings with such country, territory or government (as of the Closing Date, Crimea, Cuba, Iran, North
Korea, Sudan and Syria).

 

“Sanctioned Person”
shall mean at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S.
Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any Person operating,
organized or resident in a Sanctioned Country or (c) any Person owned or otherwise controlled by any such Person or Persons.

 

“Sanctions” shall
mean economic or financial sanctions or trade embargoes enacted, imposed, administered or enforced from time to time by (a) the
U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council,
the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Screen Rate”
shall mean the one-month U.S. Dollar London interbank offered rate or the three-month U.S. Dollar London interbank offered rate,
as the case may be, administered by ICE Benchmark Administration (or any other person which takes over the administration of that
rate) displayed on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate). If
the agreed page is replaced or service ceases to be available (or if the prevailing practice in the London interbank market is
no longer to use the agreed page for reference), the Agent may, in the case of suspension, for the duration of the suspension,
specify another page or service displaying the appropriate or replacement rate after consultation with the Participants and consent
of the relevant Borrower.

 

“Secured Obligations” shall
have the meaning set forth in the Granting Clause.

 

“Secured Parties” shall
mean the Finance Parties.

 

“Security Agreement”
shall mean the Security Agreement, dated as of the Closing Date, among, inter alios, the Borrowers and the Security Trustee,
as supplemented, modified or amended from time to time.

 

“Security
Agreement Supplement” shall mean a supplement to the Security Agreement, in substantially the form of Exhibit A to
the Security Agreement, executed and delivered by any applicable Borrower or Lessor, which shall particularly describe the Aircraft
and Lease to which such supplement relates and any Replacement Engine, and which joins such Borrower or Lessor, as the case may
be, to the Security Agreement.

 

“Security Trustee”
shall have the meaning set forth in the preamble to the Credit Agreement.

 

    	 	Annex A
Page 18
	 

     

    

  

[Definitions]

 

“Slovenian Mortgage”
shall mean, in respect of the Adria Aircraft, that certain Slovenian-law governed debt acknowledgment and first priority mortgage
agreement dated on or about the Drawdown Date in respect of the Adria Aircraft between the Adria Borrower, as mortgagor, and Norddeutsche
Landesbank Girozentrale, New York Branch, as mortgagee.

 

“Subject Aircraft”
shall have the meaning set forth in Section 4.03(b)(ii) of the Security Agreement.

 

“Swap Agreement”
shall mean, in respect of any Loan, the Swap Master Agreement as modified by a swap confirmation evidencing the Swap Transaction
for such Loan between the Swap Counterparty and the related Borrower.

 

“Swap Break Amount”
shall mean, in connection with any Breakage Event, an amount determined reasonably and in good faith by the Swap Counterparty in
accordance with its standard “Close-out Amount” methodology for Swap Transactions to be the amount necessary on an
after-Tax basis to compensate the Swap Counterparty for any and all losses, costs or expenses (expressed as a positive number (in
respect of amounts payable to the Swap Counterparty) or a negative number (in respect of amounts payable by the Swap Counterparty))
as a consequence of any termination or unwind of the Swap Transaction affected by such Breakage Event.

 

“Swap Breakage Loss”
shall mean the absolute value of the Swap Break Amount if the Swap Break Amount is a negative number.

 

“Swap Counterparty”
shall mean Norddeutsche Landesbank Girozentrale, as floating rate payer under a Swap Agreement.

 

“Swap Margin” shall mean
13 basis points.

 

“Swap Master Agreement”
shall mean, for each Borrower, the 2002 Master Swap Agreement published by ISDA, together with the associated schedules thereto,
between such Borrower and the Swap Counterparty.

 

“Swap Obligations”
shall mean all obligations owing from time to time by a Borrower to the Swap Counterparty under a Swap Agreement (if any).

 

“Swap Rate” shall have the
meaning set forth in the definition of Swap Transaction.

 

“Swap Transaction”
shall mean, with respect to a Loan, (i) an interest rate swap transaction entered into by the Borrower of such Loan and the Swap
Counterparty pursuant to which (A) such Borrower, as fixed rate payer, agrees to pay to the Swap Counterparty on each Payment Date
in respect of such Loan an amount equal to the amount of interest that would accrue on a notional amount equal to the amount of
principal with respect to such Loan scheduled to be outstanding during the Interest Period ending on such Payment Date at the fixed
rate (the “Swap Rate”) determined by the Swap Counterparty to be, in accordance with its market practice, the
fixed rate equivalent of the then-applicable Debt Rate plus the Swap Margin (calculated on the basis of a year of 360 days consisting
of 12 30-day months) and (ii) the Swap Counterparty, as floating rate payer, agrees to pay to such Borrower on each Payment Date
in respect of such Loan an amount equal to the amount of interest that would have accrued on such notional amount of such Loan
for the Interest Period ending on such Payment Date at the applicable Debt Rate (calculated on the basis of a year of 360 days
and actual number of days elapsed) as of 11:00 a.m. on the date that fell two London Business Days prior to the first date of such
Interest Period.

 

    	 	Annex A
Page 19
	 

     

    

  

[Definitions]

 

“Tax” or “Taxes”
shall mean any and all fees (including, without limitation, license, documentation, registration, recording, stamp and document
fees), taxes (including, without limitation, income, gross receipts, sale, rental, use, turnovers, value added, property (tangible
and intangible), excise and stamp taxes), licenses, levies, imposts, duties, recording charges, other charges, fees, assessments
or withholdings of any nature whatsoever, together with any assessment, penalties, fees, additions to tax and interest thereon,
imposed by any taxing authority (which term shall include any other governmental authority).

 

“Total Commitment” shall
mean $47,000,000.

 

“transacting user entity”
is defined in the regulations for the International Registry.

 

“Transferee Participant”
shall have the meaning set forth in Section 2.14 of the Security Agreement.

 

“UCC”
shall mean the Uniform Commercial Code as in effect in the State of New York or, when the laws of any other jurisdiction govern
the perfection or enforcement of any security interest, the Uniform Commercial Code of such jurisdiction.

 

“Unpaid Obligations”
shall have the meaning set forth in Section 4.04(b) of the Security Agreement.

 

“USA PATRIOT Act”
shall have the meaning set forth in Section 7.14(g) of the Credit Agreement.

 

"Warranty Agreements"
shall mean, in respect of an Aircraft and to the extent applicable, any warranty assignment agreement in respect of the relevant
Airframe and Airframe Warranties and/or the relevant Engines and Engine Warranties, in each case among the relevant manufacturer,
the relevant Borrower or Lessor, as the case may be, the relevant Lessee and the Security Trustee.

 

“Withholding Taxes”
shall have the meaning set forth in Section 2.13(a) of the Security Agreement.

 

“Write-down and Conversion Powers”
shall mean:

 

(a)       in relation to
any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation
to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and

 

    	 	Annex A
Page 20
	 

     

    

  

[Definitions]

 

(b)       in relation to
any other applicable Bail-In Legislation, any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued
by a person that is a bank or investment firm or other financial institution or Affiliate of a bank, investment firm or other financial
institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which
that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other
person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend
any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary
to any of those powers.

 

		2.	Rules of Construction.

 

(a)       Section
headings and the table of contents in each Loan Operative Document are inserted for convenience of reference only and shall be
ignored in the interpretation of such Loan Operative Document.

 

(b)       In each
Loan Operative Document, unless the context otherwise requires:

 

(i)       
references to Sections, Clauses, Annexes, Exhibits and Schedules are to be construed as references to the sections of, clauses
of, and appendices, exhibits and schedules to, such Loan Operative Document as in force for the time being and as amended in accordance
with the terms of such Loan Operative Document, or, as the case may be, with the agreement of the relevant parties;

 

(ii)        references
to Sub-sections or Sub-clauses are to be construed as references to a sub-section or sub-clause of the Section or Clause in which
such reference appears;

 

(iii)       references
to any Operative Document include its Annexes, Exhibits and Schedules;

 

(iv)       references
to any Operative Document shall be construed as references to such Operative Document as in force for the time being and as amended
or amended and restated or supplemented from time to time, in accordance with the terms thereof, or, as the case may be, with the
agreement of the relevant parties;

 

(v)        words
importing any gender shall be construed as including every gender;

 

(vi)       words
importing the plural shall include the singular and vice versa;

 

(vii)       any
reference to any Person (including each of the parties to any Operative Document) shall include such Person and its successors,
permitted assigns, and permitted transferees; and

 

(viii)      the
word “including” shall be construed as “including but not limited to.”

 

    	 	Annex A
Page 21
	 

     

    

  

[Credit Agreement]

 

SCHEDULE I

 

PARTICIPATION COMMITMENTS

 

	Participant	 	Participation Percentage	 	 	Commitment	 
	 	 	 	 	 	 	 
	Norddeutsche Landesbank 
Girozentrale, New York Branch	 	 	100	%	 	$	47,000,000	 

 

ADDRESS FOR NOTICES/PAYMENT INSTRUCTIONS

 

Norddeutsche Landesbank Girozentrale, New York Branch

 1114 Avenue of the Americas, 20th Floor

New York, NY 10036

Tel: ****

Attention: ****

Email: ****

 

with copy to:

 

Norddeutsche Landesbank Girozentrale

 Aircraft Finance Department

Friedrichswall 10

30159 Hannover, Germany

Tel: ****

Attention: ****

Email: ****

 

Payment Details:

 

Bank: JP Morgan Chase Bank, New York

Account No.: ****

Swift: CHASUS33

ABA: ****

 

Account Name: Norddeutsche Landesbank, New York

Reference: ACY [Republic Aircraft][Adria Aircraft][Air Nostrum
Aircraft]

 

Wilmington Trust Company

 1100 N. Market Street

Wilmington, DE 19890-1605

Attention: Corporate Trust Administration

Facsimile: ****

Telephone: ****

 

    SCHEDULE I
 Page 1

     

    

  

[Credit Agreement]

 

ACY SN 19002 Limited

 Third Floor

20 Old Bailey

London EC4M 7AN

United Kingdom

Attention: ****

Facsimile: ****

 

With a copy to:

 

AeroCentury Corp.

1440 Chapin Avenue, #310

Burlingame, CA 94010

Attention: General Counsel

Facsimile: ****

 

ACY SN 19003 Limited

 Third Floor

20 Old Bailey

London EC4M 7AN

United Kingdom

Attention: ****

Facsimile: ****

 

With a copy to:

 

AeroCentury Corp.

1440 Chapin Avenue, #310

Burlingame, CA 94010

Attention: General Counsel

Facsimile: ****

 

ACY E-175 LLC

 c/o AeroCentury Corp.

AeroCentury Corp.

1440 Chapin Avenue, #310

Burlingame, CA 94010

Attention: General Counsel

Facsimile: ****

 

ACY SN 15129 LLC

c/o AeroCentury Corp.

AeroCentury Corp.

1440 Chapin Avenue, #310

Burlingame, CA 94010

Attention: General Counsel

Facsimile: ****

 

    SCHEDULE I
 Page 2

     

    

  

[Credit Agreement]

 

SCHEDULE II

 

AIRCRAFT; LESSORS; LESSEES; LOAN AMOUNTS; APPLICABLE
MARGINS; MATURITY DATES; LEASES

 

	Aircraft	 	Lessor	 	Lessee	 	Indicative Loan Amount	 	 	Applicable Margin	 	Maturity Date
	 	 	 	 	 	 	 	 	 	 	 	 
	1.   Bombardier CRJ-1000 bearing MSN 19002 and Spanish registration mark EC-LJR with two CF34-8C5 engines bearing MSNs 194897 and 194896	 	N/A	 	Air Nostrum	 	$	10,000,000	 	 	3.20% p.a.	 	10/3/2020
	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.   Bombardier CRJ-1000 bearing MSN 19003 and Spanish registration mark EC-LJS with two CF34-8C5 engines bearing MSNs 194975 and 194976	 	N/A	 	Air Nostrum	 	$	10,000,000	 	 	3.20% p.a.	 	11/7/2020
	 	 	 	 	 	 	 	 	 	 	 	 	 
	3.   Embraer E175LR bearing MSN 17000168 and US registration number N109HQ with two CF34-8E5 engines bearing MSNs 193478 and 193479	 	Wells Fargo Delaware Trust Company, National Association, as Owner Trustee	 	Republic Airways	 	$	6,500,000	 	 	2.80% p.a.	 	4/30/2025
	 	 	 	 	 	 	 	 	 	 	 	 	 
	4.   Embraer E175LR bearing MSN 17000172 and US registration number N110HQ with two CF34-8E5 engines bearing MSNs 193484 and 193489	 	Wells Fargo Delaware Trust Company, National Association, as Owner Trustee	 	Republic Airways	 	$	6,500,000	 	 	2.80% p.a.	 	5/30/2025
	 	 	 	 	 	 	 	 	 	 	 	 	 
	5.   Embraer E175LR bearing MSN 17000173 and US registration number N111HQ with two CF34-8E5 engines bearing MSNs 193492 and 193499	 	Wells Fargo Delaware Trust Company, National Association, as Owner Trustee	 	Republic Airways	 	$	6,500,000	 	 	2.80% p.a.	 	5/30/2025
	 	 	 	 	 	 	 	 	 	 	 	 	 
	6.   Bombardier CRJ-1000 bearing MSN 15129 and Slovenian registration mark S5-AAL with two CF34-8C5 engines bearing MSNs 194585 and 194584	 	N/A	 	Adria Airways d.d.	 	$	7,500,000	 	 	3.45% p.a.	 	12/11/2022

 

    	 	Schedule II
Page 1
	 

     

    

  

[Credit Agreement]

 

Leases

 

MSN 19002

 

Operating Lease Agreement dated December 16, 2010 between Aviación
RCII, A.I.E., as lessor, and Air Nostrum, Líneas Aéreas del Mediterráneo, S.A., as lessee, as novated, amended
and restated pursuant to the Deed of Novation and Restatement dated August 4, 2016 among Aviación RCII, A.I.E., as existing
lessor, Air Nostrum, Líneas Aéreas del Mediterráneo, S.A., as lessee, and ACY SN 19002 Limited, as new lessor,
as further amended and restated pursuant to the Deed of Amendment and Restatement dated ___________, 2019 between ACY SN 19002
Limited, as lessor, and Air Nostrum, Líneas Aéreas del Mediterráneo, S.A., as lessee.

 

MSN 19003

 

Operating Lease Agreement dated December 16, 2010 between Aviación
RCII, A.I.E., as lessor, and Air Nostrum, Líneas Aéreas del Mediterráneo, S.A., as lessee, as novated, amended
and restated pursuant to the Deed of Novation and Restatement dated August 4, 2016 among Aviación RCII, A.I.E., as existing
lessor, Air Nostrum, Líneas Aéreas del Mediterráneo, S.A., as lessee, and ACY SN 19003 Limited, as new lessor,
as further amended and restated pursuant to the Deed of Amendment and Restatement dated ___________, 2019 between ACY SN 19003
Limited, as lessor, and Air Nostrum, Líneas Aéreas del Mediterráneo, S.A., as lessee.

 

MSN 17000168

 

Lease Agreement [N109HQ] dated as of May 29, 2007 between Wells
Fargo Delaware Trust Company, National Association, as owner trustee, as lessor, and Republic Airways Inc. (formerly known as Republic
Airline Inc.), as lessee, as amended by the Amendment No. 1 to Lease Agreement (N109HQ) dated as of October 10, 2016 between Wells
Fargo Delaware Trust Company, National Association, as owner trustee, as lessor, and Republic Airways Inc. (formerly known as Republic
Airline Inc.), as lessee, as further amended by Lease Amendment No. 2 (N109HQ) dated June 23, 2017 between Republic Airways Inc.
(formerly known as Republic Airline Inc.), as lessee, and Wells Fargo Delaware Trust Company, National Association, not in its
individual capacity but solely as owner trustee, as lessor, as further amended by the Amendment No. 3 to Lease Agreement (N109HQ)
dated as of January 31, 2018 between Republic Airways Inc. (formerly known as Republic Airline Inc.), as lessee, and Wells Fargo
Delaware Trust Company, National Association, not in its individual capacity but solely as owner trustee, as lessor, as further
amended by Lease Amendment No. 4 (N109HQ) dated on or about the relevant Drawdown Date between Republic Airways Inc. (formerly
known as Republic Airline Inc.), as lessee, and Wells Fargo Delaware Trust Company, National Association, not in its individual
capacity but solely as owner trustee, as lessor.

 

    	 	Schedule II
Page 2
	 

     

    

  

[Credit Agreement]

 

Participation Agreement [N110HQ] dated
as of May 29, 2007 among Republic Airways Inc. (formerly known as Republic Airline Inc.), as lessee, Metropolitan Life Insurance
Company, as owner participant, and Wells Fargo Delaware Trust Company, National Association, not in its individual capacity but
solely as owner trustee.

 

MSN 17000172

 

Lease Agreement [N110HQ] dated as of June 28, 2007 between Wells
Fargo Delaware Trust Company, National Association, as owner trustee, as lessor, and Republic Airways Inc. (formerly known as Republic
Airline Inc.), as lessee, as amended by the Amendment No. 1 to Lease Agreement (N110HQ) dated as of October 10, 2016 between Wells
Fargo Delaware Trust Company, National Association, as owner trustee, as lessor, and Republic Airways Inc. (formerly known as Republic
Airline Inc.), as lessee, as further amended by Lease Amendment No. 2 (N110HQ) dated June 23, 2017 between Republic Airways Inc.
(formerly known as Republic Airline Inc.), as lessee, and Wells Fargo Delaware Trust Company, National Association, not in its
individual capacity but solely as owner trustee, as lessor, as further amended by Lease Amendment No. 3 (N110HQ) dated December
31, 2018 between Republic Airways Inc. (formerly known as Republic Airline Inc.), as lessee, and Wells Fargo Delaware Trust Company,
National Association, not in its individual capacity but solely as owner trustee, as lessor, as further amended by Lease Amendment
No. 4 (N110HQ) dated on or about the relevant Drawdown Date between Republic Airways Inc. (formerly known as Republic Airline Inc.),
as lessee, and Wells Fargo Delaware Trust Company, National Association, not in its individual capacity but solely as owner trustee,
as lessor.

 

Participation Agreement [N110HQ] dated
as of June 28, 2007 among Republic Airways Inc. (formerly known as Republic Airline Inc.), as lessee, Metropolitan Life Insurance
Company, as owner participant, and Wells Fargo Delaware Trust Company, National Association, not in its individual capacity but
solely as owner trustee.

 

    	 	Schedule II
Page 3
	 

     

    

  

[Credit Agreement]

 

MSN 17000173

 

Lease Agreement [N111HQ] dated as of June 28, 2007 between Wells
Fargo Delaware Trust Company, National Association, as owner trustee, as lessor, and Republic Airways Inc. (formerly known as Republic
Airline Inc.), as lessee, as amended by the Amendment No. 1 to Lease Agreement (N111HQ) dated as of October 10, 2016 between Wells
Fargo Delaware Trust Company, National Association, as owner trustee, as lessor, and Republic Airways Inc. (formerly known as Republic
Airline Inc.), as lessee, as further amended by Lease Amendment No. 2 (N111HQ) dated June 23, 2017 between Republic Airways Inc.
(formerly known as Republic Airline Inc.), as lessee, and Wells Fargo Delaware Trust Company, National Association, not in its
individual capacity but solely as owner trustee, as lessor, as further amended by Lease Amendment No. 3 (N111HQ) dated December
31, 2018 between Republic Airways Inc. (formerly known as Republic Airline Inc.), as lessee, and Wells Fargo Delaware Trust Company,
National Association, not in its individual capacity but solely as owner trustee, as lessor, as further amended by Lease Amendment
No. 4 (N111HQ) dated on or about the relevant Drawdown Date between Republic Airways Inc. (formerly known as Republic Airline Inc.),
as lessee, and Wells Fargo Delaware Trust Company, National Association, not in its individual capacity but solely as owner trustee,
as lessor.

 

Participation Agreement [N111HQ] dated
as of June 28, 2007 among Republic Airways Inc. (formerly known as Republic Airline Inc.), as lessee, Metropolitan Life Insurance
Company, as owner participant, and Wells Fargo Delaware Trust Company, National Association, not in its individual capacity but
solely as owner trustee.

 

MSN 15129

 

Aircraft Lease Agreement dated as of December 12, 2014 between
AeroCentury Corp., as lessor, and Adria Airways d.o.o., as lessee, as amended by Amendment No. 1 to Aircraft Lease Agreement (15129)
dated as of October 4, 2017 between AeroCentury Corp., as lessor, and Adria Airways Slovenski Letalski Prevoznik d.o.o., as lessee,
as assigned to ACY SN 15129 LLC pursuant to the Lease Novation Agreement dated January 28, 2019 among Aerocentury Corp., as existing
lessor, Adria Airways d.o.o., as lessee, and ACY SN 15129 LLC, as new lessor.

 

    	 	Schedule II
Page 4
	 

     

    

  

[Credit Agreement]

 

SCHEDULE III

 

LOCAL LAW REQUIREMENTS

 

MSNs 19002 and 19003

 

		(a)	Conditions Precedent

 

•             Evidence that the Security Trustee has been appointed
as Professional User Entity in respect of each Air Nostrum Aircraft for the purposes of making all International Registry filings
contemplated by this Agreement.

 

•             Filing with the Moveable Property Registry (“Registro
de Bienes Muebles”) as entry point in Spain the applications in order to request the Authorizing Entry Point codes regarding
the discharge of the following underlying registrations made at the International Registry in respect of each Air Nostrum Aircraft:

 

MSN 19002:

 

-           International
Interest with file number 1312295 (regarding a mortgage agreement);

 

-           International
Interest with file number 1312298 (regarding a security agreement);

 

-           Assignment
of an International Interest with file number 1312304 (regarding the Lease Agreement for MSN 19002).

 

MSN 19003:

 

-           International
Interest with file number 1312280 (regarding a mortgage agreement);

 

-           International
Interest with file number 1312283 (regarding a security agreement);

 

-           Assignment
of an International Interest with file number 1312289 (regarding the Lease Agreement for MSN 19003).

 

•             Filing with the Moveable Property Registry (“Registro
de Bienes Muebles”) as entry point in Spain the applications in order to request the Authorizing Entry Point, regarding
the registration at the International Registry of the (i) Security Agreement and (ii) the Lease Assignment in respect of each Air
Nostrum Aircraft.

 

•             Execution of the revocation of the irrevocable de-registration
and export request authorisations issued in favour of Export Development Canada (“EDC”) as authorised party
in respect of each Air Nostrum Aircraft (the “IDERA Revocations”)

 

    	 	Schedule III
Page 1
	 

     

    

  

[Credit Agreement]

 

•              Execution of the irrevocable de-registration and export
request authorisations issued in favor of the Security Trustee as authorised party in respect of each Air Nostrum Aircraft (the
“New IDERAs”);

 

		(b)	Conditions Subsequent

 

•             Execution of a Spanish law-governed release deed of
the Spanish credit right pledge granted by the 19002 Borrower in favor of EDC by means of a Spanish deed attested by Notary of
Madrid, Mr. Andrés de la Fuente O’Connor, with number 1,699 of his records within three Business Days following the
relevant Drawdown Date

 

•             Execution of a Spanish law governed release deed of
the Spanish credit right pledge granted by the 19003 Borrower in favor of EDC by means of a Spanish deed attested by Notary of
Madrid, Mr. Andrés de la Fuente O’Connor, with number 1,700 of his records within three Business Days following the
relevant Drawdown Date

 

•             Execution and notarization in Spain of a waiver of
the Lessor Deregistration Powers of Attorney granted by the 19002 Borrower and the 19003 Borrower in favor of EDC in respect of
each Air Nostrum Aircraft within one Business Day following the relevant Drawdown Date

 

•             Execution and notarization in Spain of a waiver of
the Lessee Deregistration Powers of Attorney granted by Air Nostrum in favor of the 19002 Borrower and the 19003 Borrower and EDC
in respect of each Air Nostrum Aircraft within three Business Days following the Drawdown Date

 

•             Execution and notarization in Spain of a new Lessor
Deregistration Power of Attorney granted by the 19002 Borrower and the 19003 Borrower in favor of the Security Trustee in respect
of each Air Nostrum Aircraft within one Business Day following the relevant Drawdown Date

 

•             Execution and notarization in Spain of a new Lessee
Deregistration Power of Attorney granted by Air Nostrum in favor of the 19002 Borrower and the 19003 Borrower and the Security
Trustee in respect of each Air Nostrum Aircraft within three Business Days following the relevant Drawdown Date

 

•             Notarization in Spain of the signature (legitimación
de firmas) of the IDERA Revocations within three Business Days following the Drawdown Date;

 

•             Notarization in Spain of the signature (legitimación
de firmas) of the New IDERAs within three Business Days following the Drawdown Date;

 

•             Delivery of the original irrevocable de-registration
and export request authorisations issued in favor of EDC as authorised party in respect of each Air Nostrum Aircraft to Air Nostrum
Líneas Aereas del Mediterráneo, S.A. within 10 Business Days following the Drawdown Date

 

    	 	Schedule III
Page 2
	 

     

    

  

[Credit Agreement]

 

•             Filing of the Revocation IDERAs and the New IDERAs
with the Spanish Aviation Authority (Agencia Estatal de Seguridad Aérea) within five Business Days following the Drawdown
Date;

 

•             Discharge of any international interests granted in
favor of EDC in respect of each Air Nostrum Aircraft on the International Registry;

 

•             Filing of (i) the Security Agreement and (ii) the
Lease Assignment in respect of each Air Nostrum Aircraft on the International Registry

 

•             Registering the Security Agreement and the Lease Assignment
in respect of each Air Nostrum Aircraft with the Registrar of Companies in England within 21 days of execution

 

•             English law deed of release in respect of (i) the
Liens over the 19002 Aircraft and the 19003 Aircraft, (ii) and the Liens over the shares in the 19002 Borrower and the 19003 Borrower
and (iii) the collateral assignment of each Lease Agreement in respect of an Air Nostrum Aircraft in favor of EDC.

 

•             Removal of the existing Liens registered against the
19002 Borrower and the 19003 Borrower with the Registrar of Companies in England.

 

MSNs 17000168, 17000172 and 17000173

 

•             Filing of Local Law Mortgage in respect of each Republic
Aircraft with US Federal Aviation Administration

 

•             Filing of the Security Agreement and the Local Law
Mortgage in respect of each Republic Aircraft on the International Registry

 

MSN 15129

 

		(a)	Conditions Precedent

 

•             Execution of the Adria Repossession Deed in the form
of directly enforceable notarial deed by the Adria Borrower and the Lessee in respect of the Adria Aircraft

 

•             Confirmation or evidence satisfactory to the Security
Trustee exhibiting that there are no undischarged encumbrances pertaining to Adria Aircraft other than the debt acknowledgment
and first priority mortgage in favor of MUFG Union Bank, N.A. (the “MUFG Mortgage”)

 

•             Confirmation that the Deletion Permit in respect of
the MUFG Mortgage is held in escrow, to be released following the relevant Drawdown Date upon filing the request to discharge the
MUFG Mortgage with the competent court in Slovenia

 

•             Adria Borrower issuing a Power
of Attorney to the Security Trustee, authorizing them to exercise its rights under the Adria Repossession Agreement;

 

    	 	Schedule III
Page 3
	 

     

    

 

[Credit Agreement]

 

		(b)	Conditions Subsequent

 

•             Execution of the Slovenian Mortgage in the form of
a directly enforceable notarial deed within one Business Day of the relevant Drawdown Date

 

•             Filing the request to establish the Slovenian Mortgage
with the competent court in Slovenia within three Business Days of the relevant Drawdown Date;

 

•             Filing the request to discharge the MUFG Mortgage
with the competent court in Slovenia within three Business Days of the relevant Drawdown Date;

 

•             Filing the request with the Slovenian Civil Aviation
Authority to enter the Slovenian Mortgage into the Slovenian Aircraft Register;

 

•             Filing the request with the Slovenian Civil Aviation
Authority to remove the discharged MUFG Mortgage from the Slovenian Aircraft Register;

 

•             Confirmation or evidence satisfactory to the Security
Trustee of the due registration of the Slovenian Mortgage with the Slovenian Civil Aviation Agency, within 30 days of the relevant
Drawdown Date;

 

    	 	Schedule III
Page 4
	 

     

    

  

[Credit Agreement]

 

SCHEDULE IV

 

REPAYMENT SCHEDULES

 

    	 	Schedule IV
Page 1
	 

     

    

 

 

AeroCentury Corp.
(ACY) Ctpy # 80124770 80124771 80124772 80124772 80124772 80124773 Lessee Nostrum 02 Nostrum 03 Republic 1 Republic 2 Republic
3 Adria MSN 19002 19003 17000168 17000172 17000173 15129 Ctpy Name ACY SN 19002 Limited ACY SN 19003 Limited ACY E-175 LLC ACY
E-175 LLC ACY E-175 LLC ACY SN 15129 Limited Swap details: Product PV Swap PV Swap PV Swap PV Swap PV Swap Callable Swap Start
Feb 8, 2019 Feb 8, 2019 Feb 8, 2019 Feb 8, 2019 Feb 8, 2019 Feb 8, 2019 End Oct 3, 2020 Nov 7, 2020 Apr 30, 2025 May 30, 2025
May 30, 2025 Dec 11, 2022 Notional amount $9,100,000.00 $9,100,000.00 $6,320,000.00 $6,320,000.00 $6,320,000.00 $7,150,000.00
Frequency Quarterly Quarterly Monthly Monthly Monthly Monthly Day of month due 24th 24th 4th 4th 4th 19th ACY receives p.a. (act/360)
3M USD Libor + 3,2000% 3M USD Libor + 3,2000% 1M USD Libor + 2,8000% 1M USD Libor + 2,8000% 1M USD Libor + 2,8000% 1M USD Libor
+ 3,4500% ACY pays p.a. (act/360) 6.0050% 6.0000% 5.3960% 5.3950% 5.3950% 6.3010% 1st interpolated rate 2.7708% 2.7708% 2.4700%
2.4700% 2.4700% 2.4101% Exercise Date (11:00am NY Time) - - - - - 11/17/2020 Interest Rate: Loan Margin 3.2000% 3.2000% 2.8000%
2.8000% 2.8000% 3.4500% Swap offer rate 2.6750% 2.6700% 2.4660% 2.4650% 2.4650% 2.7210% Swap credit margin 0.1300% 0.1300% 0.1300%
0.1300% 0.1300% 0.1300% Total fixed rate 6.0050% 6.0000% 5.3960% 5.3950% 5.3950% 6.3010% Debt services $619,520.20 $619,432.58
$99,625.42 $98,522.82 $98,522.82 $149,232.78 Nostrum 02 Republic 1 - 3 Adria act. Date Notional act. Date Notional Republic 1
Notional Republic 2 Notional Republic 3 act. Date Notional Feb 8, 2019 $9,100,000.00 Feb 8, 2019 $6,320,000.00 $6,320,000.00 $6,320,000.00
Feb 8, 2019 $7,150,000.00 Mar 25, 2019 $8,548,786.68 Mar 4, 2019 $6,243,109.73 $6,244,208.12 $6,244,208.12 Feb 19, 2019 $7,014,552.81
Jun 24, 2019 $8,059,031.12 Apr 4, 2019 $6,172,493.26 $6,174,693.99 $6,174,693.99 Mar 19, 2019 $6,899,745.89 Sep 24, 2019 $7,563,185.71
May 7, 2019 $6,103,399.05 $6,106,707.61 $6,106,707.61 Apr 23, 2019 $6,792,841.13 Dec 24, 2019 $7,058,469.42 Jun 4, 2019 $6,029,388.92
$6,033,809.21 $6,033,809.21 May 20, 2019 $6,675,755.47 Mar 24, 2020 $6,546,091.89 Jul 5, 2019 $5,957,779.39 $5,963,317.63 $5,963,317.63
Jun 19, 2019 $6,561,626.03 Jun 24, 2020 $6,027,028.74 Aug 5, 2019 $5,885,837.12 $5,892,498.57 $5,892,498.57 Jul 19, 2019 $6,446,896.47
Sep 24, 2020 $5,500,000.00 Sep 4, 2019 $5,812,678.35 $5,820,467.45 $5,820,467.45 Aug 19, 2019 $6,332,693.61 Oct 5, 2020 $0.00
Oct 4, 2019 $5,739,190.60 $5,748,112.48 $5,748,112.48 Sep 19, 2019 $6,217,870.22 Nov 4, 2019 $5,666,232.65 $5,676,293.64 $5,676,293.64
Oct 21, 2019 $6,103,512.78 Nostrum 03 Dec 4, 2019 $5,592,086.39 $5,603,290.50 $5,603,290.50 Nov 19, 2019 $5,985,304.49 act. Date
Notional Jan 6, 2020 $5,520,121.29 $5,532,478.29 $5,532,478.29 Dec 19, 2019 $5,867,544.43 Feb 8, 2019 $9,100,000.00 Feb 4, 2020
$5,444,490.61 $5,457,999.47 $5,457,999.47 Jan 21, 2020 $5,752,250.50 Mar 25, 2019 $8,548,817.42 Mar 4, 2020 $5,368,531.18 $5,383,196.97
$5,383,196.97 Feb 19, 2020 $5,632,256.72 Jun 24, 2019 $8,059,041.91 Apr 6, 2020 $5,295,460.31 $5,311,296.31 $5,311,296.31 Mar
19, 2020 $5,511,653.01 Sep 24, 2019 $7,563,181.31 May 5, 2020 $5,218,853.08 $5,235,856.24 $5,235,856.24 Apr 20, 2020 $5,393,334.48
Dec 24, 2019 $7,058,456.99 Jun 4, 2020 $5,142,695.10 $5,160,872.96 $5,160,872.96 May 19, 2020 $5,271,516.31 Mar 24, 2020 $6,546,077.68
Jul 6, 2020 $5,067,736.33 $5,087,099.40 $5,087,099.40 Jun 19, 2020 $5,150,926.90 Jun 24, 2020 $6,027,018.29 Aug 4, 2020 $4,990,139.23
$5,010,684.98 $5,010,684.98 Jul 20, 2020 $5,029,682.25 Sep 24, 2020 $5,500,000.00 Sep 4, 2020 $4,913,700.77 $4,935,440.27 $4,935,440.27
Aug 19, 2020 $4,906,897.21 Nov 9, 2020 $0.00 Oct 5, 2020 $4,836,907.14 $4,859,846.00 $4,859,846.00 Sep 21, 2020 $4,786,046.73
Nov 4, 2020 $4,759,031.68 $4,783,172.25 $4,783,172.25 Oct 19, 2020 $4,660,302.80 Dec 4, 2020 $4,680,806.03 $4,706,153.78 $4,706,153.78
Nov 19, 2020 $4,536,392.29 Jan 4, 2021 $4,602,930.24 $4,629,494.31 $4,629,494.31 Dec 21, 2020 $4,412,603.63 Feb 4, 2021 $4,524,692.59
$4,552,478.72 $4,552,478.72 Jan 19, 2021 $4,285,800.35 Mar 4, 2021 $4,444,056.80 $4,473,058.61 $4,473,058.61 Feb 19, 2021 $4,159,854.94
Apr 6, 2021 $4,366,413.17 $4,396,656.93 $4,396,656.93 Mar 19, 2021 $4,031,037.80 May 4, 2021 $4,285,113.10 $4,316,582.98 $4,316,582.98
Apr 19, 2021 $3,903,708.11 Jun 4, 2021 $4,205,398.69 $4,238,113.69 $4,238,113.69 May 19, 2021 $3,775,002.32 Jul 6, 2021 $4,125,944.23
$4,159,914.98 $4,159,914.98 Jun 21, 2021 $3,647,604.78 Aug 4, 2021 $4,044,253.38 $4,079,471.04 $4,079,471.04 Jul 19, 2021 $3,516,273.63
Sep 7, 2021 $3,965,238.37 $4,001,734.26 $4,001,734.26 Aug 19, 2021 $3,386,146.91 Oct 4, 2021 $3,881,660.27 $3,919,403.47 $3,919,403.47
Sep 20, 2021 $3,255,906.64 Nov 4, 2021 $3,800,071.20 $3,839,089.00 $3,839,089.00 Oct 19, 2021 $3,123,223.81 Dec 6, 2021 $3,718,672.61
$3,758,976.75 $3,758,976.75 Nov 19, 2021 $2,990,961.41 Jan 4, 2022 $3,635,211.43 $3,676,790.35 $3,676,790.35 Dec 20, 2021 $2,857,980.35
Feb 4, 2022 $3,552,477.22 $3,595,348.78 $3,595,348.78 Jan 19, 2022 $2,723,775.78 Mar 4, 2022 $3,467,761.16 $3,511,912.44 $3,511,912.44
Feb 22, 2022 $2,590,775.18 Apr 4, 2022 $3,384,248.88 $3,429,704.90 $3,429,704.90 Mar 21, 2022 $2,453,803.24 May 4, 2022 $3,299,841.30
$3,346,601.47 $3,346,601.47 Apr 19, 2022 $2,317,043.28 Jun 6, 2022 $3,216,537.99 $3,264,628.99 $3,264,628.99 May 19, 2022 $2,179,994.28
Jul 5, 2022 $3,130,894.15 $3,180,294.16 $3,180,294.16 Jun 20, 2022 $2,042,988.84 Aug 4, 2022 $3,045,347.32 $3,096,069.42 $3,096,069.42
Jul 19, 2022 $1,904,140.68 Sep 6, 2022 $2,960,785.20 $3,012,857.96 $3,012,857.96 Aug 19, 2022 $1,765,254.26 Oct 4, 2022 $2,873,585.86
$2,926,977.43 $2,926,977.43 Sep 19, 2022 $1,625,613.18 Nov 4, 2022 $2,787,312.72 $2,842,052.46 $2,842,052.46 Oct 19, 2022 $1,484,928.41
Dec 5, 2022 $2,700,638.70 $2,756,732.95 $2,756,732.95 Nov 21, 2022 $1,344,284.70 Jan 4, 2023 $2,613,157.15 $2,670,603.95 $2,670,603.95
Dec 12, 2022 $0.00 Feb 6, 2023 $2,526,457.28 $2,585,288.38 $2,585,288.38 Mar 6, 2023 $2,437,435.12 $2,497,613.72 $2,497,613.72
Apr 4, 2023 $2,348,404.69 $2,409,945.47 $2,409,945.47 May 4, 2023 $2,259,339.26 $2,322,257.37 $2,322,257.37 Jun 5, 2023 $2,170,550.64
$2,234,871.07 $2,234,871.07 Jul 5, 2023 $2,080,685.46 $2,146,395.86 $2,146,395.86 Aug 4, 2023 $1,990,416.19 $2,057,522.88 $2,057,522.88
Sep 5, 2023 $1,900,337.69 $1,968,867.03 $1,968,867.03 Oct 4, 2023 $1,808,972.61 $1,878,900.86 $1,878,900.86 Nov 6, 2023 $1,718,294.97
$1,789,669.99 $1,789,669.99 Dec 4, 2023 $1,625,881.05 $1,698,656.83 $1,698,656.83 Jan 4, 2024 $1,533,810.37 $1,608,025.46 $1,608,025.46
Feb 5, 2024 $1,441,541.79 $1,517,214.02 $1,517,214.02 Mar 4, 2024 $1,347,966.36 $1,425,057.60 $1,425,057.60 Apr 4, 2024 $1,254,604.34
$1,333,155.17 $1,333,155.17 May 7, 2024 $1,161,184.61 $1,241,225.36 $1,241,225.36 Jun 4, 2024 $1,066,432.55 $1,147,910.86 $1,147,910.86
Jul 5, 2024 $971,762.37 $1,054,720.89 $1,054,720.89 Aug 5, 2024 $876,652.30 $961,097.99 $961,097.99 Sep 4, 2024 $780,968.89 $866,896.11
$866,896.11 Oct 4, 2024 $684,855.23 $772,270.71 $772,270.71 Nov 4, 2024 $588,412.02 $677,335.63 $677,335.63 Dec 4, 2024 $491,432.50
$581,858.01 $581,858.01 Jan 6, 2025 $394,237.87 $486,212.72 $486,212.72 Feb 4, 2025 $296,326.11 $389,802.97 $389,802.97 Mar 4,
2025 $197,944.34 $292,915.82 $292,915.82 Apr 4, 2025 $99,238.68 $195,753.80 $195,753.80 Apr T, JJJJ / May T, JJJJ $0.00 $98,169.73
$98,169.73 May 30, 2025 $0.00 $0.00

 

     

     

    

  

[Credit Agreement]

 

EXHIBIT A

 

FORM OF NOTICE OF BORROWING

 

__________, 20__

 

Norddeutsche Landesbank Girozentrale, New York Branch

1114 Avenue of the Americas, 20th Floor

New York, New York 10036

Attention: Loan Management/****

Telephone ****

Email: ****

 

Ladies and Gentlemen,

 

One (1) [_____] model [_____] Aircraft bearing MSN [_____]
(the “Aircraft”)

 

We refer to the Credit Agreement, dated
as of February 7, 2019 (as amended, modified and supplemented from time to time, the “Credit Agreement”), among
ACY SN 19002 Limited, ACY SN 19003 Limited, ACY E-175 LLC and ACY SN 15192 LLC [(the “Borrower”)], as borrowers,
each of the participants party thereto), Norddeutsche Landesbank Girozentrale, New York Branch, as agent (the “Agent”),
Norddeutsche Landesbank Girozentrale, as swap counterparty and Wilmington Trust Company, as security trustee. Terms defined in
the Credit Agreement shall have the same meanings in this notice.

 

We hereby give you notice in accordance
with Section 2.2(a) of the Credit Agreement that, pursuant to the Credit Agreement, the Borrower wishes to borrow a Loan in an
amount of $[_________] (or such lesser amount necessary to satisfy the condition precedent specified in Section 3.2(o)(ii) of the
Credit Agreement, in any case as reflected on the face of the Loan Certificate) at an Advance Rate of [_________] upon the terms
and subject to the conditions contained therein.

 

The Drawdown Date for the Loan shall be
[________], 20__, which is a day not less than three Business Days after the date hereof (or such shorter period as the Participants
may agree).

 

We agree to indemnify you on demand for
any Swap Breakage Loss, any LIBOR Breakage, any Liquidity Breakage and any interest and other expenses incurred pursuant to and
in the manner specified in Section 2.2 of the Credit Agreement associated with any failure to borrow the Loan on the date referred
to above, other than a failure by the Participants to fund following the satisfaction of all conditions precedent thereto.

 

The proceeds of the Loan should be credited to:

 

[insert account details]

 

and used in accordance with the Credit Agreement.

 

    Exhibit A
 Page 1

     

    

  

[Credit Agreement]

 

This notice shall be governed by, and construed
and enforced in accordance with, the law of the State of New York.

 

This notice is irrevocable.

 

*          *          *

 

    Exhibit A
 Page 2

     

    

  

[Credit Agreement]

 

	 	Yours faithfully,
	 	 	 
	 	[_______________], as Borrower
	 	 	 
	 	By:	                
	 	Name:	 
	 	Title:	 
	 	 	 
	 	AEROCENTURY CORP., as Borrower Parent
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    Exhibit A
 Page 3

     

    

  

[Credit Agreement]

 

EXHIBIT B-1

 

FORM OF BORROWER PLEDGE AGREEMENT

 

    Exhibit B-1
 Page 1

     

    

  

BENEFICIAL INTEREST PLEDGE

AGREEMENT (MSN [_________])

 

dated as of ___________________

 

between

 

ACY E-175 LLC

as Pledgor

 

and

 

WILMINGTON TRUST
COMPANY

as Security Trustee

_______________________________________

 

Borrower Pledge Agreement

________________________________________

 

     

     

    

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Definitions	1
	 	 	 
	Section 2.	Pledge	1
	 	 	 
	Section 3.	Representations and Warranties of the Pledgor	2
	 	 	 
	Section 4.	Covenants of the Pledgor	3
	 	 	 
	Section 5.	Voting Rights, Distributions etc	5
	 	 	 
	Section 6.	Delivery of Pledged Collateral	5
	 	 	 
	Section 7.	Remedies upon Default	6
	 	 	 
	Section 8.	Cooperation	7
	 	 	 
	Section 9.	Private Sales	7
	 	 	 
	Section 10.	Application of Proceeds of Sale and Cash and Securities	7
	 	 	 
	Section 11.	Limitation on Duties Regarding Preservation of Pledged Collateral	7
	 	 	 
	Section 12.	Further Assurances	8
	 	 	 
	Section 13.	Notices	8
	 	 	 
	Section 14.	No Waiver	8
	 	 	 
	Section 15.	GOVERNING LAW	8
	 	 	 
	Section 16.	Successors and Assigns	8
	 	 	 
	Section 17.	Waivers; Amendments	8
	 	 	 
	Section 18.	Termination	9
	 	 	 
	Section 19.	Severability	9
	 	 	 
	Section 20.	Headings	9
	 	 	 
	Section 21.	Counterparts	9
	 	 	 
	Section 22.	Entire Agreement	9
	 	 	 
	Section 23.	WAIVER OF JURY TRIAL	9
	 	 	 
	Section 24.	Non-Recourse Obligations	9
	 	 	 
	EXHIBIT A	-      Form of Interest Transfer	 

 

     i

     

    

 

THIS BENEFICIAL INTEREST PLEDGE AGREEMENT
(MSN [_______]) dated as of ________________ (this “Agreement”) is between ACY E-175 LLC, a Delaware
limited liability company, as pledgor (the “Pledgor”) and WILMINGTON TRUST COMPANY, as security trustee
(the “Security Trustee”).

 

WITNESSETH:

 

WHEREAS, the Pledgor is the sole
beneficial owner of [__________] Trust (the “Trust”) established under the [Trust Agreement] dated as of [____________]
between Wells Fargo Delaware Trust Company, National Association, not in its individual capacity but solely as owner trustee (the
“Owner Trustee”) and the Pledgor (as further amended, supplemented and modified from time to time, the “Trust
Agreement”) and owns 100% of the Beneficial Interest (as defined below) in the Trust;

 

WHEREAS, the Pledgor has entered
into a Credit Agreement, dated as of ________ __, 2019, among, inter alios, the Pledgor, as a borrower, the participants
party thereto (the “Participants ”), Norddeutsche Landesbank Girozentrale, New York Branch, as agent, Norddeutsche
Landesbank Girozentrale, as swap counterparty, and the Security Trustee (as it may be modified, supplemented or amended from time
to time, the “Credit Agreement”) pursuant to which the Participants agreed to make certain loans available to
refinance the Aircraft; and

 

WHEREAS, it is a condition precedent
to the obligations of the Participants under the Credit Agreement that the Pledgor grant to the Security Trustee, a security interest
in the Beneficial Interest (as defined below).

 

NOW THEREFORE, in consideration of
the premises and the mutual covenants contained herein and in order to induce the Participants to enter into the transactions contemplated
by the Credit Agreement and the other Operative Documents, the Pledgor hereby covenants and agrees with the Security Trustee as
follows:

 

Section 1.      Definitions.
Unless the context otherwise requires, capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Credit Agreement.

 

Section 2.      Pledge. (a)
As security for the payment and performance in full of all of the Secured Obligations (as defined in the Security Agreement), the
Pledgor hereby pledges, hypothecates, assigns, transfers, sets over, delivers and grants to the Security Trustee a first priority
Lien in all right, title and interest of the Pledgor which presently exist or hereafter arise in, to and under the following:

 

(i)       100%
of the beneficial interest in the Trust under and as defined in the Trust Agreement (the “Beneficial Interest”),

 

(ii)       all
interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or
in exchange for any of or all the Beneficial Interest,

 

     

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

(iii)       all
certificates or other instruments or documents representing any of the foregoing,

 

(iv)       all
rights and privileges of the Pledgor with respect to the Beneficial Interest and the other property referred to in clauses (i)
through (iii) above, and

 

(v)       all
proceeds of any of the foregoing and any property of any character whatsoever into which any of the foregoing may be converted
(all items referred to in clauses (i) through (v) being hereinafter collectively referred to as the “Pledged Collateral”).

 

(b)       For
the avoidance of doubt, Excluded Payments (as defined in the Security Agreement) and any supplemental rent, maintenance reserves
and security deposits payable to the Owner Trustee under the relevant Lease (received as distributions or otherwise) shall not
be Pledged Collateral.

 

(c)       The
Pledgor hereby confirms, as of the date hereof, that it does not hold any certificate(s) in respect of the Beneficial Interest
or certificates or other instruments or documents representing the other Pledged Collateral.

 

TO HAVE AND TO HOLD the Pledged Collateral,
together with all rights, title, interests, powers, privileges and preferences pertaining or incidental thereto, unto the Security
Trustee, its successors and assigns permitted by the terms of the Credit Agreement; subject, however, to the terms,
covenants and conditions hereinafter set forth.

 

Section 3.      Representations
and Warranties of the Pledgor. The Pledgor hereby represents and warrants as of the date hereof:

 

(a)       it
is a limited liability company duly formed and validly existing under the laws of the jurisdiction of its formation and has the
requisite power and authority to enter into this Agreement and to carry out the transactions contemplated hereby;

 

(b)       (i)
it has duly authorized, executed and delivered this Agreement and (ii) this Agreement constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as the enforceability thereof may be limited by applicable
bankruptcy, insolvency, receivership, reorganization, moratorium or other similar laws affecting creditors’ rights generally
and by application of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity
or at law);

 

(c)       the
execution, delivery and performance by the Pledgor of this Agreement is not in violation of the Trust Agreement or any indenture,
mortgage, deed of trust or other instrument or agreement to which it is a party or by which it is bound or to which any of its
property or assets may be subject;

 

(d)       neither
the execution and delivery by the Pledgor of this Agreement nor the consummation by it of any of the transactions contemplated
hereby requires the consent or approval of, the giving of notice to, or the registration or filing with, or the taking of any other
action in respect of, any agency or authority, except for the filing of Uniform Commercial Code financing statements (and continuations
thereof) in respect of the security interests created hereby in the State of Delaware;

 

    	 	2	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

(e)       the
Pledgor is the record owner of the Pledged Collateral, free and clear of any and all Liens or claims of any other Person, except
for the Lien granted hereunder (and the rights and remedies of the Security Trustee related to such Lien);

 

(f)       the
Beneficial Interest constitutes the entire Beneficial Interest of the Pledgor at the date hereof;

 

(g)       it
has legal authority to pledge the Pledged Collateral in the manner hereby done or contemplated;

 

(h)       the
Pledgor, as sole beneficial owner of the Trust, has not taken any action or commenced any legal proceedings nor (to the best of
its knowledge and belief) has the Owner Trustee taken any or have any been threatened against the Trust for its winding up, dissolution,
administration or reorganization or for the appointment of a receiver, administrator, administrative receiver, trustee or similar
officer of it or any of all of its assets;

 

(i)       other
than the filing of a UCC -1 financing statement in respect of this Agreement, it is not necessary in order to ensure the validity,
enforceability or admissibility in evidence in proceedings of this Pledge Agreement in New York or Delaware or any other relevant
jurisdiction that it or any other document be filed or registered with any authority in such jurisdiction or elsewhere or that
any tax be paid in respect thereof, and the Lien granted pursuant to this Agreement will constitute a valid, perfected first priority
Lien on the Pledged Collateral.

 

Section 4.      Covenants of the
Pledgor. The Pledgor covenants as follows for so long as any Secured Obligations remain outstanding and/or unperformed (other
than any contingent liabilities that continue past the termination of the Security Agreement and the other Loan Operative Documents):

 

(a)       except
as contemplated hereby and by the Security Agreement, the Pledgor will not make any sale, assignment, pledge, mortgage, hypothecation
or transfer of the Pledged Collateral or the ownership interests of the Trust and, except for the Lien granted hereby, the Pledgor
will be the sole legal owner of the Pledged Collateral, free and clear of any and all Liens other than the Liens granted in favor
of the Security Trustee;

 

(b)       as
the sole beneficial owner of the Trust, it will not cause the Owner Trustee to issue any further beneficial interests of any class
or description or other securities in addition to or in substitution for the Beneficial Interest in existence on the Closing Date;
it will hold in trust and will pledge hereunder, immediately upon its acquisition (direct or indirect) thereof, all property (other
than Excluded Payments and any supplemental rent, maintenance reserves or security deposits payable under the relevant Lease and
other property explicitly permitted to be received and retained by the Trust under the Credit Agreement and the other Loan Operative
Documents) or additional beneficial interest of any class or description or other securities of the Trust;

 

    	 	3	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

(c)       at
any time and from time to time, at no expense to the Security Trustee, it will promptly execute and deliver all further instruments
and documents, and take all further action, that may be necessary, or that the Security Trustee may reasonably request, in order
to perfect and protect any Lien granted or purported to be granted hereby or to enable the Security Trustee to exercise and enforce
its rights and remedies hereunder;

 

(d)       as
sole beneficial owner of the Trust, it shall not authorize or, to the extent within its power or control, consent to the appointment
of a receiver, trustee or liquidator of the Trust or of a substantial part of the Trust’s property, or admit in writing submitted
in connection with judicial or other similar procedures the Trust’s inability to pay its debts generally as they come due,
or make a general assignment for the benefit of creditors or permit any creditor to exercise a contractual right to assume the
operations or financial management of the Trust;

 

(e)       as
sole beneficial owner of the Trust, it shall not authorize the Trust to file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any bankruptcy laws (as now or hereafter in effect) or an answer
admitting the material allegations of a petition filed against the Trust in any such proceedings, or authorize the Trust by voluntary
petition, answer or consent to or seek relief under the provisions of any other now existing or future bankruptcy, insolvency or
other similar law providing for the reorganization or winding-up of corporations, or providing for an agreement, composition, extension
or adjustment with the Trust’s creditors or otherwise for the relief of distressed debtors;

 

(f)        it
shall not commence or join with any other Person in commencing any case, proceeding or action described in the preceding paragraph
or seek an order, judgment or decree appointing a receiver, trustee or liquidator of the Trust of all or substantial part of its
property, or sequestrating of all or any substantial part of the property of the Trust or otherwise file a petition against the
Trust in a proceeding under any bankruptcy, insolvency or other similar laws as now or hereafter in effect;

 

(g)       as
sole beneficial owner of the Trust, it shall not authorize the Trust to incur any indebtedness other than as provided in the Operative
Documents;

 

(h)       as
sole beneficial owner of the Trust, it shall not authorize the Trust to engage in any business other than as contemplated by the
Operative Documents;

 

(i)        it
shall not, unless (i) it has given at least 20 days’ prior written notice to such effect to the Security Trustee and (ii)
all action reasonably necessary to protect and perfect the Lien granted or purported to be granted hereby with respect to the Pledged
Collateral, shall have been taken, either (A) change its name, identity or structure or reorganize or (B) reincorporate under the
laws of another jurisdiction;

 

(j)        if
it receives distributions from the Trust that were made with funds that the Trust was not entitled to receive under the Security
Agreement and the other Loan Operative Documents, it shall hold such funds in trust for the Security Trustee and promptly deposit
such funds in the applicable Collateral Account on behalf of the Trust;

 

    	 	4	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

(k)       it
shall defend the Security Trustee’s right, title and Lien in and to the Pledged Collateral against the claims and demands
of all Persons; and

 

(l)        it
will not amend, repeal or modify the Trust Agreement without the prior written consent of the Security Trustee (not to be unreasonably
withheld, delayed or conditioned).

 

Section 5.      Delivery of Pledged
Collateral. The Pledgor agrees to deliver or cause to be delivered promptly to the Security Trustee any and all other Pledged
Collateral, and any and all certificates or other instruments or documents representing any of the Pledged Collateral, which shall
be in or come into the Pledgor’s possession during the term of this Agreement. The Pledgor agrees to deliver to the Security
Trustee on or prior to the Closing Date a duly executed beneficial interest transfer form in blank in the form of Exhibit A hereto.

 

Section 6.      Remedies
upon Default. If an Event of Default shall have occurred and be continuing, the Security Trustee may exercise all rights of
a secured party under the Uniform Commercial Code, as enacted in any applicable jurisdiction, with respect to the Pledged Collateral
and, in addition, the Security Trustee may, without being required to give any notice except as herein provided or as may be required
by applicable law, sell, assign, transfer, endorse and deliver the whole or, from time to time, any part of the Pledged Collateral
at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for other property,
for immediate or future delivery, and for such price or prices and on such terms as the Security Trustee in its reasonable discretion
shall deem appropriate. The Security Trustee shall be authorized at any sale to restrict the prospective bidders or purchasers
to Persons who will represent and agree that they are purchasing the Pledged Collateral for their own account in compliance with
the Securities Act of 1933, as amended (the “Securities Act”). Upon consummation of any sale, the Security
Trustee shall have the right to assign, transfer, endorse and deliver to the purchaser or purchasers thereof the Pledged Collateral
sold and all of the voting and consensual rights and powers granted and reserved to the Security Trustee pursuant hereto shall
thereupon become vested in such purchaser or purchasers, subject to any reservations or qualifications imposed by the Security
Trustee. Each purchaser at any sale shall hold the property sold absolutely free from any claim or right on the part of the Pledgor,
and the Pledgor hereby waives and releases (to the extent permitted by law) all rights of redemption, stay, appraisal, reclamation
and turnover which the Pledgor now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted. The Security Trustee shall give the Pledgor (with a copy to the Owner Trustee) ten days’ written notice
(which the Pledgor agrees is reasonable notification within the meaning of Section 9-612 of the Uniform Commercial Code, as enacted
in any applicable jurisdiction) of the Security Trustee’s intention to attempt to sell any of the Pledged Collateral. Such
notice, in the case of a public sale, shall state the time and place for such sale, and, in the case of a sale at a broker’s
board or on a securities exchange, shall identify the board or exchange at which such sale is to be made and the day on which
the Pledged Collateral, or a portion thereof, will first be offered for sale. Any public sale of any of the Pledged Collateral
shall be held at such time or times within ordinary business hours and at such place or places as the Security Trustee may state
in the notice or publication (if any) of such sale. At any sale, the Pledged Collateral, or any portion thereof to be sold, may
be sold as an entirety or in separate parcels, as the Security Trustee may (in its sole and absolute discretion) determine. The
Security Trustee shall not be obligated to sell any of the Pledged Collateral if it shall determine not to do so, regardless of
the fact that notice of a sale of such Pledged Collateral may have been given. The Security Trustee may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed
for sale, and such sale may, without further notice, occur at the time and place identified in such announcement. In case all
or any part of the Pledged Collateral is sold on credit or for future delivery, the Pledged Collateral so sold may be retained
by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not
incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Pledged Collateral so sold
and, in case of any such failure, such Pledged Collateral may be sold again upon ten days’ notice (which the Pledgor agrees
is reasonable notification within the meaning of Section 9-612 of the Uniform Commercial Code, as enacted in any applicable jurisdiction).
At any sale made pursuant to this Agreement, to the extent permitted by applicable law, the Security Trustee may bid for or purchase,
free from any right of redemption, stay, appraisal, reclamation or turnover on the part of the Pledgor (all said rights being
also hereby waived and released to the extent permitted by law), any Pledged Collateral offered for sale and may make payment
on account thereof by using the amount of Secured Obligations outstanding to it from the Pledgor as a credit against the purchase
price, and the Security Trustee may, upon compliance with the terms of sale, hold, retain and dispose of the Pledged Collateral
sold without further accountability to the Pledgor therefor. For purposes hereof, a written agreement to purchase all or any part
of the Pledged Collateral shall be treated as a sale thereof and the Security Trustee shall be free to carry out such sale pursuant
to such agreement, and the Pledgor shall not be entitled to the return of any Pledged Collateral subject thereto, notwithstanding
the fact that after the Security Trustee shall have entered into such agreement all Events of Default shall have been remedied.
As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by suit or suits
at law or in equity to foreclose this Agreement and sell the Pledged Collateral or any portion thereof pursuant to a judgment
or decree of a court having competent jurisdiction and/or pursuant to a proceeding of a court-appointed receiver.

 

    	 	5	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

The Pledgor hereby constitutes and appoints
the Security Trustee the attorney-in-fact of the Pledgor for the purpose of carrying out after the occurrence and during the continuance
of an Event of Default, the provisions of this Agreement and taking any action and executing any instrument which the Security
Trustee may deem necessary or reasonably advisable to accomplish the purposes hereof, which appointment is granted as security
for the performance of the Pledgor’s obligations hereunder and for valuable consideration, and is irrevocable and coupled
with an interest. Without limiting the generality of the foregoing, the Security Trustee shall have the right, after the occurrence
and during the continuance of an Event of Default, with full power of substitution either in the Security Trustee’s name
or in the name of the Pledgor, to settle, compromise, prosecute or defend any action, claim or proceeding with respect to the Pledged
Collateral and shall have the right to sell, assign, endorse, pledge, transfer and make any agreement respecting, or otherwise
deal with, the same.

 

Section 7.      Cooperation.
The Pledgor agrees that, upon the occurrence and during the continuance of an Event of Default, if for any reason the Security
Trustee desires to sell any of the Pledged Collateral at a sale, it will, at any time and from time to time, upon the written request
of the Security Trustee, use commercially reasonable efforts to cause the Trust to take such action and prepare, distribute and/or
file such documents as are required for the Security Trustee to permit the sale of such Pledged Collateral.

 

    	 	6	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

Section 8.      Private Sales.
(a) The Pledgor recognizes that the Security Trustee may be unable to effect a public sale of any or all the Pledged Collateral,
by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be
compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among
other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale
thereof. The Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than
if such sale were a public sale. The Security Trustee shall be under no obligation to delay a sale of any of the Pledged Collateral
for the period of time necessary to permit the Trust to register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if the Trust would agree to do so; nor shall the Trust be at any time obligated to register
the Beneficial Interest for a public sale.

 

(b)       The
Pledgor further agrees to use commercially reasonable efforts to do or cause to be done all such other acts as may be necessary
to make such sale or sales of all or any portion of the Pledged Collateral pursuant to this Section 8 valid and binding and in
compliance with applicable laws. The Pledgor further agrees that a breach of any of the covenants contained in this Section 8 will
cause irreparable injury to the Security Trustee, that the Security Trustee has no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section 8 shall be specifically enforceable against the Pledgor,
and the Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no Event of Default has occurred and is continuing.

 

Section 9.      Application of Proceeds
of Sale and Cash and Securities. The proceeds of any sale of or realization upon the whole or any part of the Pledged Collateral
and cash retained by the Security Trustee pursuant to this Agreement shall be applied by the Security Trustee in accordance with
Section 3.03 of the Mortgage.

 

Section 10.     Limitation on Duties
Regarding Preservation of Pledged Collateral. Neither the Security Trustee nor any director, officer, employee or counsel of
the Security Trustee shall be liable for any action taken or omitted to be taken by it or them relative to any of the Pledged Collateral
except for its or their own gross negligence or willful misconduct.

 

Section 11.     Further Assurances.
The Pledgor agrees that at no expense to the Security Trustee, (a) it will duly execute and deliver (to the Security Trustee or
otherwise) or cause to be duly executed and delivered (to the Security Trustee or otherwise) and will file or record such notices,
financing statements or other documents as may be necessary to enable the perfection of the Lien of the Security Trustee hereunder,
or as the Security Trustee may reasonably request, such instruments to be in form and substance reasonably satisfactory to the
Security Trustee, and (b) it will do or cause to be done such further acts and things and execute and deliver (to the Security
Trustee or otherwise) such additional conveyances, assignments, agreements and instruments, as the Security Trustee may at any
time reasonably request in connection with the administration and enforcement of this Agreement or relative to the Pledged Collateral
or any part thereof or in order to assure and confirm unto the Security Trustee its rights, powers and remedies hereunder, including,
without limitation, the protection and perfection of the Security Trustee’s Lien in the Pledged Collateral or any part thereof.

 

    	 	7	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

Section 12.     Notices. All
notices and other communications shall be in writing and shall be given or made by fax, mail or personal delivery and faxed, mailed
or delivered to the intended recipient at the address specified in Schedule 1 to the Credit Agreement or at such other address
as shall be designated by the Pledgor or the Security Trustee in a notice to the other party hereto. All such communications shall
be deemed to have been duly given when transmitted by fax (provided such transmission by fax is in legible form and is accompanied
by or generates a substantially simultaneous confirmation of transmission), or personally delivered or, in the case of a mailed
notice, upon receipt, in each case given or addressed as aforesaid.

 

Section 13.     No Waiver.
No failure on the part of the Security Trustee or any of its agents to exercise, and no course of dealing with respect to, and
no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise by the Security Trustee or any of its agents of any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy.

 

Section 14.     GOVERNING LAW.
THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.

 

Section 15.     Successors and
Assigns. This Agreement and the terms, covenants and conditions hereof shall be binding upon and inure to the benefit of the
parties hereto and all holders of the Secured Obligations secured hereby and their respective successors and permitted assigns,
except that the Pledgor shall not be permitted to assign or otherwise transfer this Agreement or any rights or interests herein
or in the Pledged Collateral or any part thereof, or otherwise to pledge, encumber or grant any option with respect to the Pledged
Collateral or any part thereof. The Pledgor shall not be permitted to delegate any of its duties or obligations hereunder. The
Security Trustee may assign this Agreement or any or all of its rights hereunder in accordance with the provisions of the Operative
Documents.

 

Section 16.     Waivers; Amendments.
No term or provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing
signed by the parties hereto; and any waiver of the terms hereof shall be effective only in the specific instance and for the specific
purpose given.

 

Section 17.     Termination.

 

(a)       Upon
payment in full of the Secured Obligations, this Agreement shall terminate and the Security Trustee, at the request of the Pledgor,
will execute and deliver to the Pledgor, at no cost to the Security Trustee, a proper instrument or instruments acknowledging the
satisfaction and termination of this Agreement and will duly assign, transfer and deliver to the Pledgor all of the rights and
moneys at the time held by the Security Trustee under this Agreement and will execute any other instrument reasonably requested
by the Pledgor in connection with the foregoing.

 

    	 	8	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

(b)       Upon
(or at any time after) payment in full of the principal amount of and interest on and all other amounts due under all Loan Certificates
related to the Republic Aircraft owned by the Trust and provided that no Default or Event of Default shall have occurred and be
continuing, the Pledgor may direct the Security Trustee to execute and deliver to or as directed in writing by the Pledgor an appropriate
instrument releasing the Pledged Collateral from the Lien of this Agreement and the Security Trustee shall execute and deliver
such instrument as aforesaid.

 

Section 18.      Severability.
If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the
other provisions hereof shall remain in full force and effect in such jurisdiction and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.
To the extent permitted by applicable law, the Pledgor hereby waives any provision of law that renders any provision hereof prohibited
or unenforceable in any respect.

 

Section 19.      Headings.
Section headings used herein are for convenience only and are not to affect the construction of or be taken into consideration
in interpreting this Agreement.

 

Section 20.      Counterparts.
This Agreement may be executed in separate counterparts each of which when so executed and delivered shall be an exchangeable original,
but all such counterparts shall together constitute but one and the same agreement.

 

Section 21.      Entire
Agreement. This Agreement together with the Operative Documents constitutes, on and as of the date hereof, the entire agreement
of the Pledgor and the Security Trustee with respect to the subject matter hereof, and all prior or contemporaneous understandings
or agreements, whether written or oral, between the Security Trustee and the Pledgor with respect to such subject matter are hereby
superseded in their entirety.

 

Section 22.      WAIVER
OF JURY TRIAL. EACH PARTY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION ARISING
UNDER THIS AGREEMENT OR ANY OTHER OPERATIVE DOCUMENTS.

 

Section 23.     Non-Recourse Obligations.

 

(a)       In
recognition of the Pledgor granting the security referred to in Section 2, the Security Trustee hereby agrees that, notwithstanding
the provisions of this Agreement or any Loan Operative Document to the contrary, any and all liability of the Pledgor that is created
hereunder shall, in the absence of fraud, gross negligence or willful misconduct in performing its obligations under this Agreement,
be limited to the aggregate assets from time to time of the Pledgor. Except as specified above, the Pledgor shall not be personally
liable for any shortfall that may arise as a result thereof. The provisions of this Section 24(a) shall only limit the personal
liability of the Pledgor for the discharge of its obligations as specified above and shall not (i) limit or restrict in any way
the accrual of interest on any such unpaid amount, or (ii) derogate from or otherwise limit the right of recovery, realization
or application by the Security Trustee, the Agent, the Swap Counterparty and each Participant under or pursuant to any of the Loan
Operative Documents on anything assigned, mortgaged, charged, pledged or secured (by way of security) to or for the benefit of
the Security Trustee, the Agent, the Swap Counterparty and each Participant under or pursuant to any of the Loan Operative Documents.

 

    	 	9	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

(b)       
The Security Trustee hereby acknowledges and agrees that the Pledgor’s obligations under this Agreement and the other Loan
Operative Documents are solely the corporate obligations of the Pledgor and that none of the Security Trustee, the Agent, the Swap
Counterparty or the Participants shall have any recourse against any of the directors, shareholders, officers or employees of the
Pledgor for any claims, losses, damages, liabilities, indemnities or other obligations of the Pledgor under this Agreement and
the other Loan Operative Documents.

 

*         *
     *

 

    	 	10	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

IN WITNESS WHEREOF, each of the parties
hereto has caused this Beneficial Interest Pledge Agreement to be duly executed and delivered by its proper and duly authorized
officers as of the day and year first above written.

 

	 	ACY E-175 LLC, as a Borrower
	 	 	 
	 	By: AeroCentury Corp., its Manager
	 	 	 
	 	By:	 
	 	Name: 
	 	Title: 
	 	 	 
	 	WILMINGTON TRUST COMPANY,
    as Security Trustee
	 	 	 
	 	By:	  
	 	 	Name:
	 	 	Title:

 

	Acknowledged and Agreed:	 
	 	 	 
	WELLS FARGO DELAWARE TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as owner trustee of [_________] Trust	 
	 	 	 
	By:	   	 
		Name:	 
		Title:	 

 

    	 	11	 

     

    

  

[Beneficial Interest Pledge Agreement (MSN
[__________])]

 

EXHIBIT A

 

FORM OF INTEREST TRANSFER

 

ACY E-175 LLC (the “Transferor”),
for value received does hereby transfer to __________________ (the “Transferee”), its beneficial interest,
to hold the same unto the Transferee.

 

	 	ACY E-175 LLC, as a Borrower
	 	 	 
	 	By: AeroCentury Corp., its Manager
	 	 	 
	 	By:	       
	 	Name:
	 	Title:

 

    Exhibit
                                         A
 Page 1

     

    

 

[Credit Agreement]

 

EXHIBIT B-2

 

FORM OF BORROWER PARENT PLEDGE AGREEMENT

 

    Exhibit B-2
 Page 1

     

    

  

MEMBERSHIP INTEREST PLEDGE

AGREEMENT

 

dated as of ___________________

 

between

 

AEROCENTURY CORP.

as Pledgor

 

and

 

WILMINGTON TRUST
COMPANY

as Security Trustee

_______________________________________

 

Borrower Parent Pledge Agreement

________________________________________

 

     

     

    

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Definitions	1
	 	 	 
	Section 2.	Pledge	1
	 	 	 
	Section 3.	Representations and Warranties of the Pledgor	2
	 	 	 
	Section 4.	Covenants of the Pledgor	3
	 	 	 
	Section 5.	Voting Rights, Distributions etc	5
	 	 	 
	Section 6.	Delivery of Pledged Collateral	6
	 	 	 
	Section 7.	Remedies upon Default	7
	 	 	 
	Section 8.	Cooperation	8
	 	 	 
	Section 9.	Private Sales	8
	 	 	 
	Section 10.	Application of Proceeds of Sale and Cash and Securities	9
	 	 	 
	Section 11.	Limitation on Duties Regarding Preservation of Pledged Collateral	9
	 	 	 
	Section 12.	Further Assurances	9
	 	 	 
	Section 13.	Notices	9
	 	 	 
	Section 14.	No Waiver	9
	 	 	 
	Section 15.	GOVERNING LAW	9
	 	 	 
	Section 16.	Successors and Assigns	10
	 	 	 
	Section 17.	Waivers; Amendments	10
	 	 	 
	Section 18.	Termination	10
	 	 	 
	Section 19.	Severability	10
	 	 	 
	Section 20.	Headings	10
	 	 	 
	Section 21.	Counterparts	11
	 	 	 
	Section 22.	Entire Agreement	11
	 	 	 
	Section 23.	WAIVER OF JURY TRIAL	11
	 	 	 
	Section 24.	Non-Recourse Obligations	11
	 	 	 
	EXHIBIT A	-     Form of Interest Transfer	 

  

     i

     

    

 

THIS MEMBERSHIP INTEREST PLEDGE AGREEMENT dated
as of ________________ (this “Agreement”) is between AEROCENTURY CORP., a Delaware corporation, as pledgor
(the “Pledgor”) and WILMINGTON TRUST COMPANY, as security trustee (the “Security Trustee”).

 

WITNESSETH:

 

WHEREAS, the Pledgor is the sole
member and manager of [ACY SN 15129 LLC][ACY E-175 LLC], a Delaware limited liability company (the “Company”)
pursuant to that certain Operating Agreement, dated as of [____________] (as it may be modified, supplemented or amended from time
to time, the “LLC Agreement”) and owns 100% of the Membership Interest (as defined below) in the Company, as
evidenced by [Certificate No. 1] dated ________ (the “Certificate”) issued by the Company to the Pledgor;

 

WHEREAS, the Company has entered
into a Credit Agreement, dated as of ________ __, 2019, among, inter alios, the Company, as a borrower, the participants
party thereto (the “Participants”), Norddeutsche Landesbank Girozentrale, as swap counterparty, Norddeutsche
Landesbank Girozentrale, New York Branch, as agent, and the Security Trustee (as it may be modified, supplemented or amended from
time to time, the “Credit Agreement”) pursuant to which the Participants agreed to make certain loans available
to refinance the Aircraft;

 

WHEREAS, the Company has entered
into a Security Agreement, dated as of ________ __, 2019, among, inter alios, the Company, as a mortgagor, and the Security
Trustee (as it may be modified, supplemented or amended from time to time, the “Mortgage”); and

 

WHEREAS, it is a condition precedent
to the obligations of the Participants under the Credit Agreement that the Pledgor grant to the Security Trustee, a security interest
in the Membership Interest (as defined below).

 

NOW THEREFORE, in consideration of
the premises and the mutual covenants contained herein and in order to induce the Participants to enter into the transactions contemplated
by the Credit Agreement and the other Operative Documents, the Pledgor hereby covenants and agrees with the Security Trustee as
follows:

 

Section 1.      Definitions.
Unless the context otherwise requires, capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Credit Agreement.

 

Section 2.      Pledge. (a)
As security for the payment and performance in full of all of the Secured Obligations (as defined in the Security Agreement), the
Pledgor hereby pledges, hypothecates, assigns, transfers, sets over, delivers and grants to the Security Trustee a first priority
Lien in all right, title and interest of the Pledgor which presently exist or hereafter arise in, to and under the following:

 

(i)       the
limited liability company interest in the Company held by the Pledgor and the rights of the Pledgor as the sole member of the Company
(the “Membership Interest”),

 

     

     

    

  

[Borrower Parent Pledge Agreement]

 

(ii)       all
dividends, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect
of or in exchange for any of or all the Membership Interest and all other options or rights of any nature whatsoever which may
be issued or granted by the Company to the Pledgor in respect of the Membership Interest and the books and records of the Company
evidencing record ownership and registration of the interests pledged hereunder,

 

(iii)       all
certificates or other instruments or documents representing any of the foregoing, including the Certificate,

 

(iv)       all
rights and privileges of the Pledgor with respect to the Membership Interest and the other property referred to in clauses (i)
through (iii) above, and

 

(v)       all
proceeds of any of the foregoing and any property of any character whatsoever into which any of the foregoing may be converted
(all items referred to in clauses (i) through (v) being hereinafter collectively referred to as the “Pledged Collateral”).

 

(b)       For
the avoidance of doubt, Excluded Payments (as defined in the Security Agreement) and any supplemental rent, maintenance reserves
and security deposits payable to the Company under the relevant Lease (received as distributions or otherwise) shall not be Pledged
Collateral.

 

TO HAVE AND TO HOLD the Pledged Collateral,
together with all rights, title, interests, powers, privileges and preferences pertaining or incidental thereto, unto the Security
Trustee, its successors and assigns permitted by the terms of the Credit Agreement; subject, however, to the terms,
covenants and conditions hereinafter set forth.

 

Section 3.      Representations
and Warranties of the Pledgor. The Pledgor hereby represents and warrants as of the date hereof:

 

(a)       it
is a Delaware corporation duly incorporated and validly existing under the laws of the jurisdiction of its formation and has the
requisite power and authority to enter into this Agreement and to carry out the transactions contemplated hereby;

 

(b)       (i)
it has duly authorized, executed and delivered this Agreement and (ii) this Agreement constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as the enforceability thereof may be limited by applicable
bankruptcy, insolvency, receivership, reorganization, moratorium or other similar laws affecting creditors’ rights generally
and by application of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity
or at law);

 

(c)       the
execution, delivery and performance by the Pledgor of this Agreement is not in violation of the LLC Agreement or any indenture,
mortgage, deed of trust or other instrument or agreement to which it is a party or by which it is bound or to which any of its
property or assets may be subject;

 

    	 	2	 

     

    

  

[Borrower Parent Pledge Agreement]

 

(d)       neither
the execution and delivery by the Pledgor of this Agreement nor the consummation by it of any of the transactions contemplated
hereby requires the consent or approval of, the giving of notice to, or the registration or filing with, or the taking of any other
action in respect of, any agency or authority, except for the filing of Uniform Commercial Code financing statements (and continuations
thereof) in respect of the security interests created hereby in the State of Delaware;

 

(e)       the
Pledgor is the record owner of the Pledged Collateral, free and clear of any and all Liens or claims of any other Person, except
for the Lien granted hereunder (and the rights and remedies of the Security Trustee related to such Lien);

 

(f)       the
Membership Interest has been duly authorized and validly issued;

 

(g)       the
Certificate is accurate and the Membership Interest described therein constitutes the entire Membership Interest of the Pledgor
at the date hereof;

 

(h)       it
has legal authority to pledge the Pledged Collateral in the manner hereby done or contemplated;

 

(i)       the
Pledgor, as manager and sole member of the Company, has not taken any action or commenced any legal proceedings nor (to the best
of its knowledge and belief) has the Company taken any or have any been threatened against the Company for its winding up, dissolution,
administration or reorganization or for the appointment of a receiver, administrator, administrative receiver, trustee or similar
officer of it or any of all of its assets;

 

(j)       other
than the delivery of the Certificate to the Security Trustee evidencing the Pledged Collateral and the filing of a UCC-1 financing
statement in respect of this Agreement, it is not necessary in order to ensure the validity, enforceability or admissibility in
evidence in proceedings of this Pledge Agreement in New York or Delaware or any other relevant jurisdiction that it or any other
document be filed or registered with any authority in such jurisdiction or elsewhere or that any tax be paid in respect thereof,
and the Lien granted pursuant to this Agreement will constitute a valid, perfected first priority Lien on the Pledged Collateral.

 

Section 4.      Covenants of the
Pledgor. The Pledgor covenants as follows for so long as any Secured Obligations remain outstanding and/or unperformed (other
than any contingent liabilities that continue past the termination of the Security Agreement and the other Loan Operative Documents):

 

(a)       except
as contemplated hereby and by the Security Agreement, the Pledgor will not make any sale, assignment, pledge, mortgage, hypothecation
or transfer of the Pledged Collateral or the ownership interests of the Company and, except for the Lien granted hereby, the Pledgor
will be the sole legal owner of the Pledged Collateral, free and clear of any and all Liens other than the Liens granted in favor
of the Security Trustee;

 

(b)       as
manager and sole member of the Company, it will not cause the Company to issue any further limited liability company interests
of any class or description or other securities in addition to or in substitution for the Membership Interest in existence on the
Closing Date; it will hold in trust and will pledge hereunder, immediately upon its acquisition (direct or indirect) thereof, all
property (other than Excluded Payments, any supplemental rent, maintenance reserves or security deposits payable under the relevant
Lease and other property explicitly permitted to be received and retained by the Company under the Credit Agreement and the other
Loan Operative Documents) or additional limited liability company interest of any class or description or other securities of the
Company;

 

    	 	3	 

     

    

  

[Borrower Parent Pledge Agreement]

 

(c)       at
any time and from time to time, at no expense to the Security Trustee, it will promptly execute and deliver all further instruments
and documents, and take all further action, that may be necessary, or that the Security Trustee may reasonably request, in order
to perfect and protect any Lien granted or purported to be granted hereby or to enable the Security Trustee to exercise and enforce
its rights and remedies hereunder;

 

(d)       as
manager and sole member of the Company, it shall not authorize or, to the extent within its power or control, consent to the appointment
of a receiver, trustee or liquidator of the Company or of a substantial part of the Company’s property, or admit in writing
submitted in connection with judicial or other similar procedures the Company’s inability to pay its debts generally as they
come due, or make a general assignment for the benefit of creditors or permit any creditor to exercise a contractual right to assume
the operations or financial management of the Company;

 

(e)       as
manager and sole member of the Company, it shall not authorize the Company to file a voluntary petition in bankruptcy or a voluntary
petition or an answer seeking reorganization in a proceeding under any bankruptcy laws (as now or hereafter in effect) or an answer
admitting the material allegations of a petition filed against the Company in any such proceedings, or authorize the Company by
voluntary petition, answer or consent to or seek relief under the provisions of any other now existing or future bankruptcy, insolvency
or other similar law providing for the reorganization or winding-up of corporations, or providing for an agreement, composition,
extension or adjustment with the Company’s creditors or otherwise for the relief of distressed debtors;

 

(f)       it
shall not commence or join with any other Person in commencing any case, proceeding or action described in the preceding paragraph
or seek an order, judgment or decree appointing a receiver, trustee or liquidator of the Company of all or substantial part of
its property, or sequestrating of all or any substantial part of the property of the Company or otherwise file a petition against
the Company in a proceeding under any bankruptcy, insolvency or other similar laws as now or hereafter in effect;

 

(g)       as
manager and sole member of the Company, it shall not authorize the Company to incur any indebtedness other than as provided in
the Operative Documents;

 

(h)       as
manager and sole member of the Company, it shall not authorize the Company to engage in any business other than as contemplated
by the Operative Documents;

 

(i)       it
shall not, unless (i) it has given at least 20 days’ prior written notice to such effect to the Security Trustee and (ii)
all action reasonably necessary to protect and perfect the Lien granted or purported to be granted hereby with respect to the Pledged
Collateral, shall have been taken, either (A) change its name, identity or structure or reorganize or (B) reincorporate under the
laws of another jurisdiction;

 

    	 	4	 

     

    

  

[Borrower Parent Pledge Agreement]

 

(j)       if
it receives distributions from the Company that were made with funds that the Company was not entitled to receive under the Security
Agreement and the other Loan Operative Documents, it shall hold such funds in trust for the Security Trustee and promptly deposit
such funds in the applicable Collateral Account on behalf of the Company;

 

(k)       it
shall defend the Security Trustee’s right, title and Lien in and to the Pledged Collateral against the claims and demands
of all Persons; and

 

(l)        it
will not amend, repeal or modify the LLC Agreement of the Company without the prior written consent of the Security Trustee (not
to be unreasonably withheld, delayed or conditioned).

 

Section 5.      Voting Rights, Distributions
etc. (a) So long as no Event of Default has occurred and is continuing, the Pledgor shall be entitled to exercise any and all
voting and other consensual rights pertaining to the Membership Interest, or any part thereof, for any purpose not inconsistent
with the terms of this Agreement or the other Loan Operative Documents; provided however, that the Pledgor shall not be
entitled to exercise any voting and/or consensual rights and powers with respect to the following without the prior written consent
of the Security Trustee:

 

(i)       the
winding up, dissolution, liquidation or reorganization of the Company or the composition or readjustment of its debts;

 

(ii)       the
merger or consolidation of the Company with any other Person;

 

(iii)       the
sale of all or substantially all the assets of the Company;

 

(iv)       any
amendment to or modification of the LLC Agreement;

 

(v)       except
as otherwise provided in the Operative Documents, the incurrence of any indebtedness or the creation of any Lien by the Company;

 

(vi)       except
as otherwise provided in the Operative Documents, the making by the Company of a general assignment for the benefit of creditors;

 

(vii)      the
commencement by the Company of a voluntary case or other proceeding seeking liquidation, reorganization, winding up or other relief
with respect to the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking
the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or of all or any substantial
part of its property;

 

(viii)      failing
to controvert in a timely and appropriate manner, or acquiescence in writing to, any petition filed against the Company in an involuntary
case under applicable bankruptcy or similar law or in any other action or proceeding against it under any law relating to bankruptcy,
insolvency, reorganization, winding up or composition or readjustment of its debts;

 

    	 	5	 

     

    

  

[Borrower Parent Pledge Agreement]

 

(ix)       other
than with respect to payments permitted or required by the Operative Documents or to be made by the Security Trustee, the payment
of dividends or other distributions other than in cash in respect of the Membership Interest or the repurchase or redemption of
the Membership Interest; and

 

(x)       the
taking of any action necessary for the purpose of effecting any actions specified in the foregoing clauses (i) through (ix);

 

(b)       The
Pledgor shall execute and deliver, or cause to be executed and delivered, to the Security Trustee, as appropriate, all such proxies
and other instruments as the Security Trustee may request for the purpose of enabling the Security Trustee to exercise all rights
and privileges in respect of the Membership Interest and/or the voting and/or consensual rights and powers which the Security Trustee
is entitled to exercise pursuant to this Section 5.

 

(c)       At
any time when an Event of Default has occurred and is continuing, all rights of the Pledgor to exercise the voting and other consensual
rights which it would otherwise be entitled to exercise pursuant to Section 5(a) shall cease and all such rights shall thereupon
become vested in the Security Trustee, without further act who shall thereupon have the sole right to exercise such voting and
other consensual rights and remedies

 

(d)       Upon
any sale or other disposition of any part of the Pledged Collateral by the Security Trustee pursuant to Section 7 hereof, all of
the voting and consensual rights, privileges and powers referred to in the preceding sentence pertaining to such part shall in
any event become vested in the Person to whom such sale or disposition is made, which Person shall thereafter have the sole and
exclusive right to exercise such voting and consensual rights, privileges and powers.

 

Section 6.     Delivery of Pledged
Collateral. The Pledgor agrees to deliver or cause to be delivered promptly to the Security Trustee any and all other Pledged
Collateral, and any and all certificates or other instruments or documents representing any of the Pledged Collateral, including
the Certificate, which shall be in or come into the Pledgor’s possession during the term of this Agreement. The Pledgor agrees
to deliver to the Security Trustee on or prior to the Closing Date a duly executed limited liability company interest transfer
form in blank in the form of Exhibit A hereto.

 

    	 	6	 

     

    

  

[Borrower Parent Pledge Agreement]

 

Section 7.     Remedies upon Default
.. If an Event of Default shall have occurred and be continuing, the Security Trustee may exercise all rights of a secured party
under the Uniform Commercial Code, as enacted in any applicable jurisdiction, with respect to the Pledged Collateral and, in addition,
the Security Trustee may, without being required to give any notice except as herein provided or as may be required by applicable
law, sell, assign, transfer, endorse and deliver the whole or, from time to time, any part of the Pledged Collateral at a public
or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for other property, for
immediate or future delivery, and for such price or prices and on such terms as the Security Trustee in its reasonable discretion
shall deem appropriate. The Security Trustee shall be authorized at any sale to restrict the prospective bidders or purchasers
to Persons who will represent and agree that they are purchasing the Pledged Collateral for their own account in compliance with
the Securities Act of 1933, as amended (the “Securities Act”). Upon consummation of any sale, the Security Trustee
shall have the right to assign, transfer, endorse and deliver to the purchaser or purchasers thereof the Pledged Collateral sold
and all of the voting and consensual rights and powers granted and reserved to the Security Trustee pursuant hereto shall thereupon
become vested in such purchaser or purchasers, subject to any reservations or qualifications imposed by the Security Trustee. Each
purchaser at any sale shall hold the property sold absolutely free from any claim or right on the part of the Pledgor, and the
Pledgor hereby waives and releases (to the extent permitted by law) all rights of redemption, stay, appraisal, reclamation and
turnover which the Pledgor now has or may at any time in the future have under any rule of law or statute now existing or hereafter
enacted. The Security Trustee shall give the Pledgor (with a copy to the Company) ten days’ written notice (which the Pledgor
agrees is reasonable notification within the meaning of Section 9-612 of the Uniform Commercial Code, as enacted in any applicable
jurisdiction) of the Security Trustee’s intention to attempt to sell any of the Pledged Collateral. Such notice, in the case
of a public sale, shall state the time and place for such sale, and, in the case of a sale at a broker’s board or on a securities
exchange, shall identify the board or exchange at which such sale is to be made and the day on which the Pledged Collateral, or
a portion thereof, will first be offered for sale. Any public sale of any of the Pledged Collateral shall be held at such time
or times within ordinary business hours and at such place or places as the Security Trustee may state in the notice or publication
(if any) of such sale. At any sale, the Pledged Collateral, or any portion thereof to be sold, may be sold as an entirety or in
separate parcels, as the Security Trustee may (in its sole and absolute discretion) determine. The Security Trustee shall not be
obligated to sell any of the Pledged Collateral if it shall determine not to do so, regardless of the fact that notice of a sale
of such Pledged Collateral may have been given. The Security Trustee may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such
sale may, without further notice, occur at the time and place identified in such announcement. In case all or any part of the Pledged
Collateral is sold on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until
the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any
such purchaser or purchasers shall fail to take up and pay for the Pledged Collateral so sold and, in case of any such failure,
such Pledged Collateral may be sold again upon ten days’ notice (which the Pledgor agrees is reasonable notification within
the meaning of Section 9-612 of the Uniform Commercial Code, as enacted in any applicable jurisdiction). At any sale made pursuant
to this Agreement, to the extent permitted by applicable law, the Security Trustee may bid for or purchase, free from any right
of redemption, stay, appraisal, reclamation or turnover on the part of the Pledgor (all said rights being also hereby waived and
released to the extent permitted by law), any Pledged Collateral offered for sale and may make payment on account thereof by using
the amount of Secured Obligations outstanding to it from the Pledgor as a credit against the purchase price, and the Security Trustee
may, upon compliance with the terms of sale, hold, retain and dispose of the Pledged Collateral sold without further accountability
to the Pledgor therefor. For purposes hereof, a written agreement to purchase all or any part of the Pledged Collateral shall be
treated as a sale thereof and the Security Trustee shall be free to carry out such sale pursuant to such agreement, and the Pledgor
shall not be entitled to the return of any Pledged Collateral subject thereto, notwithstanding the fact that after the Security
Trustee shall have entered into such agreement all Events of Default shall have been remedied. As an alternative to exercising
the power of sale herein conferred upon it, the Security Trustee may proceed by suit or suits at law or in equity to foreclose
this Agreement and sell the Pledged Collateral or any portion thereof pursuant to a judgment or decree of a court having competent
jurisdiction and/or pursuant to a proceeding of a court-appointed receiver.

 

    	 	7	 

     

    

  

[Borrower Parent Pledge Agreement]

 

The Pledgor hereby constitutes and appoints
the Security Trustee the attorney-in-fact of the Pledgor for the purpose of carrying out after the occurrence and during the continuance
of an Event of Default, the provisions of this Agreement and taking any action and executing any instrument which the Security
Trustee may deem necessary or reasonably advisable to accomplish the purposes hereof, which appointment is granted as security
for the performance of the Pledgor’s obligations hereunder and for valuable consideration, and is irrevocable and coupled
with an interest. Without limiting the generality of the foregoing, the Security Trustee shall have the right, after the occurrence
and during the continuance of an Event of Default, with full power of substitution either in the Security Trustee’s name
or in the name of the Pledgor, to settle, compromise, prosecute or defend any action, claim or proceeding with respect to the Pledged
Collateral and shall have the right to sell, assign, endorse, pledge, transfer and make any agreement respecting, or otherwise
deal with, the same.

 

Section 8.     Cooperation.
The Pledgor agrees that, upon the occurrence and during the continuance of an Event of Default, if for any reason the Security
Trustee desires to sell any of the Pledged Collateral at a sale, it will, at any time and from time to time, upon the written request
of the Security Trustee, use commercially reasonable efforts to cause the Company to take such action and prepare, distribute and/or
file such documents as are required for the Security Trustee to permit the sale of such Pledged Collateral.

 

Section 9.     Private Sales.
(a) The Pledgor recognizes that the Security Trustee may be unable to effect a public sale of any or all the Pledged Collateral,
by reason of certain prohibitions contained in the Securities Act and applicable state securities laws or otherwise, and may be
compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among
other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale
thereof. The Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than
if such sale were a public sale. The Security Trustee shall be under no obligation to delay a sale of any of the Pledged Collateral
for the period of time necessary to permit the Company to register such securities for public sale under the Securities Act, or
under applicable state securities laws, even if the Company would agree to do so; nor shall the Company be at any time obligated
to register the Membership Interest for a public sale.

 

(b)       The
Pledgor further agrees to use commercially reasonable efforts to do or cause to be done all such other acts as may be necessary
to make such sale or sales of all or any portion of the Pledged Collateral pursuant to this Section 8 valid and binding and in
compliance with applicable laws. The Pledgor further agrees that a breach of any of the covenants contained in this Section 8 will
cause irreparable injury to the Security Trustee, that the Security Trustee has no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section 8 shall be specifically enforceable against the Pledgor,
and the Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that no Event of Default has occurred and is continuing.

 

    	 	8	 

     

    

  

[Borrower Parent Pledge Agreement]

 

Section 10.     Application of
Proceeds of Sale and Cash and Securities. The proceeds of any sale of or realization upon the whole or any part of the Pledged
Collateral and cash retained by the Security Trustee pursuant to this Agreement shall be applied by the Security Trustee in accordance
with Section 3.03 of the Mortgage.

 

Section 11.   Limitation on Duties
Regarding Preservation of Pledged Collateral. Neither the Security Trustee nor any director, officer, employee or counsel of
the Security Trustee shall be liable for any action taken or omitted to be taken by it or them relative to any of the Pledged Collateral
except for its or their own gross negligence or willful misconduct.

 

Section 12.   Further Assurances.
The Pledgor agrees that at no expense to the Security Trustee, (a) it will duly execute and deliver (to the Security Trustee or
otherwise) or cause to be duly executed and delivered (to the Security Trustee or otherwise) and will file or record such notices,
financing statements or other documents as may be necessary to enable the perfection of the Lien of the Security Trustee hereunder,
or as the Security Trustee may reasonably request, such instruments to be in form and substance reasonably satisfactory to the
Security Trustee, and (b) it will do or cause to be done such further acts and things and execute and deliver (to the Security
Trustee or otherwise) such additional conveyances, assignments, agreements and instruments, as the Security Trustee may at any
time reasonably request in connection with the administration and enforcement of this Agreement or relative to the Pledged Collateral
or any part thereof or in order to assure and confirm unto the Security Trustee its rights, powers and remedies hereunder, including,
without limitation, the protection and perfection of the Security Trustee’s Lien in the Pledged Collateral or any part thereof.

 

Section 13.   Notices. All
notices and other communications shall be in writing and shall be given or made by fax, mail or personal delivery and faxed, mailed
or delivered to the intended recipient at the address specified in Schedule 1 to the Credit Agreement or at such other address
as shall be designated by the Pledgor or the Security Trustee in a notice to the other party hereto. All such communications shall
be deemed to have been duly given when transmitted by fax (provided such transmission by fax is in legible form and is accompanied
by or generates a substantially simultaneous confirmation of transmission), or personally delivered or, in the case of a mailed
notice, upon receipt, in each case given or addressed as aforesaid.

 

Section 14.   No Waiver.
No failure on the part of the Security Trustee or any of its agents to exercise, and no course of dealing with respect to, and
no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise by the Security Trustee or any of its agents of any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy.

 

Section 15.   GOVERNING LAW.
THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.

 

    	 	9	 

     

    

  

[Borrower Parent Pledge Agreement]

 

Section 16.   Successors and
Assigns. This Agreement and the terms, covenants and conditions hereof shall be binding upon and inure to the benefit of the
parties hereto and all holders of the Secured Obligations secured hereby and their respective successors and permitted assigns,
except that the Pledgor shall not be permitted to assign or otherwise transfer this Agreement or any rights or interests herein
or in the Pledged Collateral or any part thereof, or otherwise to pledge, encumber or grant any option with respect to the Pledged
Collateral or any part thereof. The Pledgor shall not be permitted to delegate any of its duties or obligations hereunder. The
Security Trustee may assign this Agreement or any or all of its rights hereunder in accordance with the provisions of the Operative
Documents.

 

Section 17.   Waivers; Amendments.
No term or provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing
signed by the parties hereto; and any waiver of the terms hereof shall be effective only in the specific instance and for the specific
purpose given.

 

Section 18.   Termination.

 

(a)       Upon
payment in full of the Secured Obligations, this Agreement shall terminate and the Security Trustee, at the request of the Pledgor,
will execute and deliver to the Pledgor, at no cost to the Security Trustee, a proper instrument or instruments acknowledging the
satisfaction and termination of this Agreement and will duly assign, transfer and deliver to the Pledgor all of the rights and
moneys at the time held by the Security Trustee under this Agreement and will execute any other instrument reasonably requested
by the Pledgor in connection with the foregoing.

 

(b)       Upon(or
at any time after) payment in full of the principal amount of and interest on and all other amounts due under all Loan Certificates
related to the Aircraft owned by the Company and provided that no Default or Event of Default shall have occurred and be continuing,
the Pledgor may direct the Security Trustee to execute and deliver to or as directed in writing by the Pledgor an appropriate instrument
releasing the Pledged Collateral from the Lien of this Agreement and the Security Trustee shall execute and deliver such instrument
as aforesaid.

 

Section 19.   Severability.
If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the
other provisions hereof shall remain in full force and effect in such jurisdiction and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.
To the extent permitted by applicable law, the Pledgor hereby waives any provision of law that renders any provision hereof prohibited
or unenforceable in any respect.

 

Section 20.   Headings .
Section headings used herein are for convenience only and are not to affect the construction of or be taken into consideration
in interpreting this Agreement.

 

    	 	10	 

     

    

  

[Borrower Parent Pledge Agreement]

 

Section 21.   Counterparts.
This Agreement may be executed in separate counterparts each of which when so executed and delivered shall be an exchangeable original,
but all such counterparts shall together constitute but one and the same agreement.

 

Section 22.    Entire Agreement
.. This Agreement together with the Operative Documents constitutes, on and as of the date hereof, the entire agreement of the Pledgor
and the Security Trustee with respect to the subject matter hereof, and all prior or contemporaneous understandings or agreements,
whether written or oral, between the Security Trustee and the Pledgor with respect to such subject matter are hereby superseded
in their entirety.

 

Section 23.   WAIVER
OF JURY TRIAL. EACH PARTY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION ARISING
UNDER THIS AGREEMENT OR ANY OTHER OPERATIVE DOCUMENTS.

 

Section 24.   Non-Recourse Obligations.

 

(a)       In
recognition of the Pledgor granting the security referred to in Section 2, the Security Trustee hereby agrees that, notwithstanding
the provisions of this Agreement or any Loan Operative Document to the contrary, any and all liability of the Pledgor that is created
hereunder shall, in the absence of fraud, gross negligence or willful misconduct in performing its obligations under this Agreement,
be limited to the Pledged Collateral. Except as specified above, the Pledgor shall not be personally liable for any shortfall that
may arise as a result thereof. The provisions of this Section 24(a) shall only limit the personal liability of the Pledgor for
the discharge of its obligations as specified above and shall not (i) limit or restrict in any way the accrual of interest on any
such unpaid amount, or (ii) derogate from or otherwise limit the right of recovery, realization or application by the Security
Trustee, the Agent, the Swap Counterparty and each Participant under or pursuant to any of the Loan Operative Documents on anything
assigned, mortgaged, charged, pledged or secured (by way of security) to or for the benefit of the Security Trustee, the Agent,
the Swap Counterparty and each Participant under or pursuant to any of the Loan Operative Documents.

 

(b)       The
Security Trustee hereby acknowledges and agrees that the Pledgor’s obligations under this Agreement and the other Loan Operative
Documents are solely the corporate obligations of the Pledgor and that none of the Security Trustee, the Agent, the Swap Counterparty
or the Participants shall have any recourse against any of the directors, shareholders, officers or employees of the Pledgor for
any claims, losses, damages, liabilities, indemnities or other obligations of the Pledgor under this Agreement and the other Loan
Operative Documents.

 

*     *   
*

 

    	 	11	 

     

    

  

[Borrower Parent Pledge Agreement]

 

IN WITNESS WHEREOF, each of the parties
hereto has caused this Membership Interest Pledge Agreement to be duly executed and delivered by its proper and duly authorized
officers as of the day and year first above written.

 

	 	AEROCENTURY CORP., as Pledgor
	 	 	 
	 	By:	    
	 	 	Name:
	 	 	Title:
	 	 	 
	 	WILMINGTON TRUST COMPANY, as Security Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	Acknowledged and Agreed:	 
	 	 	 
	[_________________]	 
	 	 	 
	By its authorized signatory:	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 	12	 

     

    

 

[Borrower Parent Pledge Agreement]

 

EXHIBIT A

 

FORM OF INTEREST TRANSFER

 

AEROCENTURY CORP. (the “Transferor”),
for value received does hereby transfer to __________________ (the “Transferee”), its limited liability company
interest standing in its name of [____________], represented by Certificate No. 1, to hold the same unto the Transferee.

 

	 	AEROCENTURY CORP.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    Exhibit
                                         A
 Page 1

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