Document:

Financial Guarantee Insurance Policy

    
      FINANCIAL
        GUARANTY INSURANCE COMPANY

       

      FINANCIAL
        GUARANTY INSURANCE POLICY

       

      June
        9,
        2006

       

      Policy
        No. 06030067

      
        	
                 

                Re:

              	
                 

                Continental
                  Airlines Pass Through Trust Certificates, Series 2006-1G (the
                  “Class
                  G Certificates”)

              
	
                 

                Insured

                 

                Obligation:

              	
                 

                Payment
                  of interest at the Stated Interest Rate for the Class G Certificates
                  and
                  principal on the Class G Certificates and payment for reimbursement
                  to the
                  Primary Liquidity Provider pursuant to clause (vii) of the definition
                  of
                  Deficiency Amount set forth herein.

              
	
                 

                Beneficiary:

              	
                 

                Wilmington
                  Trust Company, as Subordination Agent for the benefit of the Class
                  G
                  Trustee and the Class G Certificateholders and as agent for the
                  Primary
                  Liquidity Provider (together with any successor subordination agent
                  duly
                  appointed and qualified under the Intercreditor Agreement (as defined
                  below), the “Subordination
                  Agent”)

              

      

       

      FINANCIAL
        GUARANTY INSURANCE COMPANY (“FGIC”),
        for
        consideration received, hereby unconditionally, absolutely and irrevocably
        guarantees to the Subordination Agent, subject only to the terms of this
        Policy
        (the “Policy”),
        payment of the Insured Obligation. FGIC agrees to pay to the Subordination
        Agent, in respect of each Distribution Date, an amount equal to (each, a
        “Deficiency
        Amount”):

       

      (i) with
        respect to any Regular Distribution Date (other than the Final Legal
        Distribution Date), any shortfall in amounts available to the Subordination
        Agent, after giving effect to the application of (a) available funds in
        accordance with the subordination provisions of Section 3.2 of the Intercreditor
        Agreement, (b) any drawing paid under the Primary Liquidity Facility in respect
        of interest due on the Class G Certificates on such Distribution Date and
        (c)
        any withdrawal from the Primary Cash Collateral Account or the Above-Cap
        Account
        on such Distribution Date in respect of such interest due on the Class G
        Certificates on such Distribution Date in accordance with the Intercreditor
        Agreement, for the payment of all payments due and owing in respect of accrued
        and unpaid interest on the Class G Certificates at the Stated Interest Rate
        for
        the Class G Certificates (calculated assuming that Continental will not cure
        any
        Payment Default);

       

      (ii) with
        respect to any Special Distribution Date (which is not also an Election
        Distribution Date or a Special Distribution Date established pursuant to
        the
        succeeding clause (iii) or clause (iv) below) established by the Subordination
        Agent by reason of its receipt of a Special Payment constituting the proceeds
        from the sale of the Series G Equipment Note (as to which there has been
        a
        payment default or which has been accelerated) or of the Pledged Spare Parts
        comprising all of the Pledged Spare Parts subject to the Lien of the Indenture
        at the time of such sale, as the case may be (each, a 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Disposition”),
        any
        shortfall in the amounts available to the Subordination Agent, after giving
        effect to the application of (a) available funds in accordance with the
        subordination provisions of Section 3.2 of the Intercreditor Agreement, (b)
        any
        drawing paid under the Primary Liquidity Facility in respect of interest
        due on
        the Class G Certificates on such Distribution Date and (c) any withdrawal
        from
        the Primary Cash Collateral Account or the Above-Cap Account on such
        Distribution Date in respect of such interest due on the Class G Certificates
        on
        such Distribution Date in accordance with the Intercreditor Agreement, for
        (x)
        the payment in full of the then outstanding Pool Balance of the Class G
        Certificates and (y) the payment of accrued and unpaid interest thereon at
        the
        Stated Interest Rate for the Class G Certificates for the period from the
        immediately preceding Regular Distribution Date to such Special Distribution
        Date (calculated assuming that Continental will not cure any Payment
        Default);

       

      (iii)
        with respect to the Special Distribution Date (a) that is the 25th
        day (or
        if such 25th
        day is
        not a Business Day, the next Business Day) following the Regular Distribution
        Date on which a Payment Default with respect to the Series G Equipment Note
        (without giving effect to any Acceleration or any payments by any Liquidity
        Provider or the Policy Provider) exists and has been continuing for eight
        consecutive Interest Periods ending on such Regular Distribution Date (the
        “Default
        Period”)
        (regardless of whether the Subordination Agent has received a Special Payment
        constituting proceeds from any Disposition during such Default Period) and
        (b)
        on which such Payment Default continues to exist, the then outstanding principal
        amount of the Series G Equipment Note (less the amount of any Policy Drawings
        previously paid by the Policy Provider in respect of principal) plus accrued
        and
        unpaid interest thereon at the Stated Interest Rate for the Class G Certificates
        (calculated assuming that Continental will not cure any Payment Default)
        for the
        period from the immediately preceding Regular Distribution Date to such Special
        Distribution Date; provided,
        however,
        if a
        Policy Provider Election (as defined below) has been made or deemed to have
        been
        made at least ten (10) days prior to the end of any such 24-month period,
        the
        Deficiency Amount shall be an amount equal to (A) with respect to such Special
        Distribution Date, any shortfall in the scheduled interest payable but not
        paid
        (whether by Continental or by the application of proceeds from the sale of
        any
        Collateral in connection with the exercise of remedies under the Indenture)
        on
        the Series G Equipment Note (calculated assuming that Continental will not
        cure
        any Payment Default) during such 24-month period (reduced by the amount of
        funds
        received from FGIC in connection with any prior Policy Drawing in respect
        of any
“Deficiency Amount” defined in clause (ii) above and from the Primary Liquidity
        Facility, the Primary Cash Collateral Account or the Above-Cap Account or
        from
        FGIC to the extent of any Policy Drawings in respect of any “Deficiency Amount”
defined in clause (i) above as a result of a failure of the Primary Liquidity
        Provider to honor Interest Drawings under the Primary Liquidity Facility
        or a
        failure of the Above-Cap Liquidity Provider and the Liquidity Guarantor to
        make
        an Above-Cap Payment under the Above-Cap Liquidity Facility) and
        (B) thereafter, on each Regular Distribution Date prior to the
        establishment of an Election Distribution Date or a Special Distribution
        Date
        pursuant to the immediately succeeding clause (iv), an amount equal to any
        shortfall in available funds required to pay scheduled principal (without
        regard
        to any Acceleration thereof or any Redemption Notice that Continental has
        failed
        to honor but taking into account any adjustments previously made for
        redemptions) and 

      
        
          
          

        

        
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      interest
        payments (without regard to any funds available under the Primary Liquidity
        Facility, the Primary Cash Collateral Account or the Above-Cap Account and
        calculated assuming that Continental will not cure any Payment Default) at
        the
        Stated Interest Rate for the Class G Certificates scheduled to be paid on
        the
        Series G Equipment Note on the related payment date; except that,
        notwithstanding the foregoing, FGIC shall not be required to pay (x) any
        amount
        in respect of principal under this clause (iii)(B) on any Regular Distribution
        Date if it has theretofore honored Policy Drawings in respect of “Deficiency
        Amounts” defined in clause (ii) above or this clause (iii) in respect of
        principal of the Series G Equipment Note or if in connection with the exercise
        of remedies under the Indenture there has previously been a reduction in
        the
        outstanding principal balance of the Series G Equipment Note as a result
        of the
        application of proceeds from the sale of Collateral, to the extent that after
        giving effect to the distribution of any such amount or such proceeds or
        both in
        accordance with the provisions of the Intercreditor Agreement the Pool Balance
        of the Class G Certificates as of such Regular Distribution Date would be
        less
        than the Pool Balance of the Class G Certificates as of such Regular
        Distribution Date were all payments on the Series G Equipment Note to have
        been
        made by Continental when due (without regard to any Acceleration thereof
        or any
        Redemption Notice that Continental has failed to honor but taking into account
        any adjustments previously made for redemptions) in accordance with Schedule
        1
        to such Series G Equipment Note nor (y) for the avoidance of doubt, any amount
        in respect of interest under this clause (B) on such Regular Distribution
        Date
        other than accrued and unpaid interest (at the applicable Stated Interest
        Rate
        calculated assuming that Continental will not cure any Payment Default) on
        the
        Pool Balance of the Class G Certificates as of such Regular Distribution
        Date
        (calculated without giving effect to any Policy Drawing in respect of principal
        under this clause (iii)(B) on such Regular Distribution Date);

       

      (iv) following
        the giving or deemed giving of any Policy Provider Election, with respect
        to any
        Business Day (other than a Regular Distribution Date) elected by FGIC upon
        twenty (20) days prior written notice (which shall be a Special Distribution
        Date) and upon request by FGIC to the Subordination Agent to make a drawing
        under this Policy, an amount (as determined after giving effect to the
        application of available funds in accordance with the subordination provisions
        of Section 3.2 of the Intercreditor Agreement) equal to the then outstanding
        Pool Balance of the Class G Certificates and accrued and unpaid interest
        on such
        amount at the Stated Interest Rate for the Class G Certificates (calculated
        assuming that Continental will not cure any Payment Default) from the
        immediately preceding Regular Distribution Date to such Special Distribution
        Date; 

       

      (v) with
        respect to any Special Distribution Date which is an Election Distribution
        Date,
        an amount (as determined after giving effect to the application of available
        funds in accordance with the subordination provisions of Section 3.2 of the
        Intercreditor Agreement) equal to the then outstanding Pool Balance of the
        Class
        G Certificates and accrued and unpaid interest on such amount at the Stated
        Interest Rate for the Class G Certificates (calculated assuming that Continental
        will not cure any Payment Default) from the immediately preceding Regular
        Distribution Date to such Election Distribution Date; 

      
        
          
          

        

        
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      (vi) with
        respect to the Final Legal Distribution Date of the Class G Certificates,
        any
        shortfall in amounts available to the Subordination Agent, after giving effect
        to the application of (a) available funds in accordance with the subordination
        provisions of Section 3.2 of the Intercreditor Agreement, (b) any drawing
        paid
        under the Primary Liquidity Facility in respect of interest due on the Class
        G
        Certificates on such Distribution Date and (c) any withdrawal from the Primary
        Cash Collateral Account or the Above-Cap Account on such Distribution Date
        in
        respect of such interest due on the Class G Certificates on such Distribution
        Date in accordance with the Intercreditor Agreement, for the payment in full
        of
        the Final Distributions (calculated as of such date but excluding any accrued
        and unpaid Premium and calculated assuming that Continental will not cure
        any
        Payment Default) on the Class G Certificates; and

       

      (vii) with
        respect to any Distribution Date elected by the Subordination Agent on behalf
        of
        the Primary Liquidity Provider upon twenty (20) days’ prior notice (which notice
        can be given in advance of the expiry of the 24-month period referred to
        below
        but cannot become effective until the Liquidity Provider Reimbursement Date
        (as
        defined below)) to FGIC, which Distribution Date is a Business Day no earlier
        than the earliest to occur of (1) the date on which an Interest Drawing was
        made
        under the Primary Liquidity Facility and remains unreimbursed for twenty-four
        (24) months, (2) the date on which any Downgrade Drawing, Non-Extension Drawing
        or Final Drawing that was deposited into the Primary Cash Collateral Account
        has
        been applied to pay any scheduled payment of interest on the Class G
        Certificates and remains unreplenished to the Primary Cash Collateral Account
        or
        unreimbursed to the Primary Liquidity Provider, as the case may be, for
        twenty-four (24) months and (3) the date on which all of the Equipment Notes
        have been accelerated and remain unpaid for twenty-four (24) months (in each
        case, disregarding any reimbursements from payments by the Policy Provider
        and
        from any Special Payment constituting proceeds from the sale of Equipment
        Notes
        or Collateral during such 24-month period) (such Business Day, the “Liquidity
        Provider Reimbursement Date”),
        the
        amount of all outstanding drawings under the Primary Liquidity Facility
plus
        accrued
        interest thereon (as determined pursuant to the Primary Liquidity Facility).
        

       

      If
        any
        amount paid or required to be paid in respect of the Insured Obligation is
        voided (a “Preference
        Event”)
        pursuant to a final (non-appealable) order of a court of competent jurisdiction
        under any applicable bankruptcy, insolvency, receivership or similar law
        in an
        Insolvency Proceeding, and, as a result of such a Preference Event, the
        Beneficiary, the Primary Liquidity Provider, the Class G Trustee or any Class
        G
        Certificateholder is required to return such voided payment, or any portion
        of
        such voided payment made or to be made in respect of the Class G Certificates
        (including any disgorgement from the Class G Certificateholders, the Class
        G
        Trustee or the Primary Liquidity Provider resulting from any such Insolvency
        Proceeding, whether such disgorgement is determined on a theory of preferential
        conveyance or otherwise) (an “Avoided
        Payment”),
        FGIC
        will pay an amount equal to each such Avoided Payment, irrevocably, absolutely
        and unconditionally, upon receipt by FGIC from the Beneficiary, the Primary
        Liquidity Provider, the Class G Trustee or such Class G Certificateholder
        of (x)
        a certified copy of a final (non-appealable) order of a court of competent
        jurisdiction in such Insolvency Proceeding to the effect that the Beneficiary,
        the Primary Liquidity Provider, the Class G Trustee or such Class G
        Certificateholder is required to return 

      
        
          
          

        

        
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      any
        such
        payment or portion thereof because such payment was voided under applicable
        law,
        with respect to which order the appeal period has expired without an appeal
        having been filed (the “Order”),
        (y)
        an assignment, in the form of Exhibit
        D
        hereto,
        irrevocably assigning to FGIC all rights and claims of the Beneficiary, the
        Primary Liquidity Provider, the Class G Trustee or such Class G
        Certificateholder relating to or arising under such Avoided Payment and
        appointing FGIC as the agent of the Beneficiary, the Primary Liquidity Provider,
        the Class G Trustee or such Class G Certificateholder in respect of such
        Avoided
        Payment (including, without limitation, for purposes of any legal proceedings
        related to such Avoided Payment) and (z) a Notice of Avoided Payment in the
        form
        of Exhibit
        B
        hereto
        appropriately completed and executed by the Beneficiary, the Primary Liquidity
        Provider, the Class G Trustee or such Class G Certificateholder. Such payment
        shall be disbursed to the receiver, conservator, debtor-in-possession or
        trustee
        in bankruptcy named in the Order and not to the Beneficiary, the Primary
        Liquidity Provider, the Class G Trustee or such Class G Certificateholder
        directly unless such Beneficiary, the Primary Liquidity Provider, the Class
        G
        Trustee or such Class G Certificateholder has returned such payment to such
        receiver, conservator, debtor-in-possession or trustee in bankruptcy, in
        which
        case such payment shall be disbursed to the Beneficiary, the Primary Liquidity
        Provider, the Class G Trustee or such Class G Certificateholder, as the case
        may
        be, upon proof of such payment reasonably satisfactory to FGIC.

       

      Notwithstanding
        the foregoing, in no event shall FGIC be obligated to make any payment in
        respect of any Avoided Payment, which payment represents a payment of the
        principal amount of the Class G Certificates, prior to the time FGIC would
        have
        been required to make a payment in respect of such principal pursuant to
        sub-paragraphs (ii)-(vi) of the definition of Deficiency Amount in this Policy;
        provided,
        further,
        that no
        payment of principal under this Policy (not including any payment of outstanding
        drawings under the Primary Liquidity Facility pursuant to sub-paragraph (vii)
        of
        the definition of Deficiency Amount under this Policy) on any Distribution
        Date,
        other than with respect to an Avoided Payment, shall exceed the Net Principal
        Policy Amount (as defined below) for such Distribution Date; provided,
        further,
        that no
        payment, other than with respect to an Avoided Payment, of a Deficiency Amount
        (not including any payment of outstanding drawings under the Primary Liquidity
        Facility and accrued interest thereon pursuant to sub-paragraph (vii) of
        the
        definition of Deficiency Amount under this Policy) shall be in excess of
        the
        then outstanding principal balance of the Class G Certificates and accrued
        and
        unpaid interest thereon at the Stated Interest Rate applicable thereto. This
        Policy does not cover (i) any premium (including, without limitation, any
        Premium), break amount (including, without limitation, any Break Amount),
        interest on interest (for the avoidance of doubt, without limiting sub-paragraph
        (vii) of the definition of Deficiency Amount under this Policy), default
        interest, prepayment penalty or other accelerated payment, which at any time
        may
        become due on or with respect to any Class G Certificate, (ii) shortfalls,
        if
        any, attributable to the liability of the Class G Trust, the Class G Trustee
        or
        the Subordination Agent, for withholding taxes, if any (including interest
        and
        penalties in respect of any such liability) or (iii) any failure of the
        Subordination Agent to make any payment due to the Class G Trustee.

       

      Capitalized
        terms used herein and not otherwise defined herein shall have the meanings
        assigned to them in that certain Intercreditor Agreement, dated as of June
        9,
        2006 (the “Intercreditor
        Agreement”),
        among
        FGIC, as Policy Provider, Morgan Stanley Bank, as Primary Liquidity Provider,
        Morgan Stanley Capital Services Inc., as Above-Cap Liquidity Provider,
        Wilmington Trust Company, as trustee, and the Subordination Agent, without
        regard to any 

      
        
          
          

        

        
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      amendment
        or supplement thereto unless such amendment or supplement has been executed,
        or
        otherwise approved in writing, by FGIC.

       

      “Business
        Day”
means
        any day (i) other than a Saturday or Sunday or a day on which insurance
        companies in New York, New York or commercial banks are required or authorized
        to close in Houston, Texas, New York, New York, or, so long as any Certificate
        is outstanding, the city and state in which any Trustee, the Fiscal Agent
        (as
        defined herein), the Subordination Agent or the Mortgagee maintains its
        Corporate Trust Office or, solely with respect to draws under this Policy,
        the
        city and state in which the office of FGIC specified in this Policy is located
        and (ii) that is a day for trading by and between banks in the London interbank
        Eurodollar market.

       

      “Class
        G Certificateholder”
shall
        mean any person who is the registered owner or beneficial owner of any of
        the
        Class G Certificates and who, on the applicable Distribution Date, is entitled
        under the terms of the Class G Certificates to payment thereunder.

       

      “Continental”
means
        Continental Airlines, Inc.

       

      “Election
        Distribution Date”
shall
        mean any Special Distribution Date established by the Subordination Agent
        upon
        20 days’ notice to the Policy Provider by reason of the occurrence and
        continuation of a Policy Provider Default occurring after a Policy Provider
        Election. 

       

      “Final
        Legal Distribution Date”
shall
        mean June 2, 2015.

       

      “Insolvency
        Proceeding”
means
        the commencement, after the date hereof, of any bankruptcy, insolvency,
        readjustment of debt, reorganization, marshalling of assets and liabilities
        or
        similar proceedings by or against Continental or any Liquidity Provider and
        the
        commencement, after the date hereof, of any proceedings by Continental or
        any
        Liquidity Provider for the winding up or liquidation of its affairs or the
        consent, after the date hereof, to the appointment of a trustee, conservator,
        receiver, or liquidator in any bankruptcy, insolvency, readjustment of debt,
        reorganization, marshalling of assets and liabilities or similar proceedings
        of
        or relating to Continental or any Liquidity Provider.

       

      “Insurance
        Agreement”
shall
        mean the Insurance and Indemnity Agreement (as may be amended, modified or
        supplemented from time to time in accordance with its terms), dated as of
        June
        9,
        2006
        by and
        among FGIC, Continental, Wilmington Trust Company, as trustee, and the
        Subordination Agent.

       

      “Insured
        Amounts”
shall
        mean, with respect to any Distribution Date, the Deficiency Amount for such
        Distribution Date. 

       

      “Net
        Principal Policy Amount”
shall
        mean, with respect to any Distribution Date, the Pool Balance of the Class
        G
        Certificates as of the Closing Date minus
        all
        amounts previously drawn on this Policy with respect to principal of the
        Class G
        Certificates as of such Distribution Date.

      
        
          
          

        

        
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      “Notice
        of Avoided
        Payment”
shall
        mean the notice, substantially in the form of Exhibit
        B
        hereto,
        delivered pursuant to this Policy and sent to the contact person at the address
        and/or fax number set forth in this Policy, and specifying the Avoided Payment
        which shall be due and owing on the applicable Distribution Date.

       

      “Notice
        of Nonpayment”
shall
        mean the notice, substantially in the form of Exhibit
        A
        hereto,
        delivered pursuant to this Policy and sent to the contact person at the address
        and/or fax numbers set forth in this Policy specifying the Insured Amount
        which
        shall be due and owing to the Subordination Agent for distribution to the
        Class
        G Trustee or, in the case of a Deficiency Amount under clause (vii) of the
        definition of “Deficiency Amount”, the Primary Liquidity Provider on the
        applicable Distribution Date.

       

      “Policy
        Provider Election”
shall
        mean a notice given or deemed to have been given by FGIC when no Policy Provider
        Default shall have occurred and be continuing, whereby FGIC elects or is
        deemed
        to have elected to make payments of Deficiency Amounts as defined under the
        proviso to clause (iii) of the definition of Deficiency Amount in lieu of
        applying clause (iii) (without the proviso) of the definition of Deficiency
        Amount, which notice may be given to the Subordination Agent no later than
        the
        date which is ten (10) days prior to the end of the 24-month Default Period
        referred to under clause (iii) of the definition of Deficiency Amount, and
        shall
        be deemed to have been given on such date, unless (x) FGIC shall have
        affirmatively elected by notice to the Subordination Agent to not make such
        election on or prior to such day or (y) a Policy Provider Default shall have
        occurred and be continuing as of such day.

       

      Payment
        of amounts hereunder shall be made in immediately available funds (x) with
        respect to Deficiency Amounts no later than 3:00 p.m., New York City time,
        on
        the later of (a) the relevant Distribution Date and (b) the Business Day
        on
        which a Notice of Nonpayment is received by FGIC, or, if a fiscal agent shall
        have been appointed by FGIC and written notice of such appointment (together
        with pertinent address and notice information) shall have been delivered
        to the
        Beneficiary, then by such fiscal agent or any successor fiscal agent appointed
        by FGIC (the “Fiscal
        Agent”),
        appropriately completed and executed by the Beneficiary (if such Notice of
        Nonpayment is received by 12:00 noon on such day), and (y) with respect to
        Avoided Payments, prior to 3:00 p.m., New York City time, on the third Business
        Day following receipt by FGIC of the documents required under clauses (x)
        through (z) of the second full paragraph of this Policy. Any such documents
        received by FGIC after 12:00 noon New York City time on any Business Day
        or on
        any day that is not a Business Day shall be deemed to have been received
        by FGIC
        prior to 12:00 noon on the next succeeding Business Day. All payments made
        by
        FGIC hereunder in respect of Avoided Payments will be made with FGIC’s own
        funds. A Notice of Nonpayment or Notice of Avoided Payment under this Policy
        may
        be presented to FGIC or the Fiscal Agent, as the case may be, on any Business
        Day by (a) delivery of the original Notice of Nonpayment or Notice of Avoided
        Payment to FGIC or the Fiscal Agent, as the case may be, at its address set
        forth below, or (b) facsimile transmission of the original Notice of Nonpayment
        or Notice of Avoided Payment to FGIC or the Fiscal Agent, as the case may
        be, at
        its facsimile number set forth below. If presentation is made by facsimile
        transmission, the Beneficiary shall (i) simultaneously confirm transmission
        by
        telephone to FGIC or the Fiscal Agent, as the case may be, at its telephone
        number set forth below, and (ii) as soon as reasonably practicable, deliver
        the
        original Notice of Nonpayment or Notice of Avoided Payment to FGIC or the
        Fiscal
        Agent, as the case may be, at its address set forth below. Each

      
        
          
          

        

        
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      Notice
        of
        Nonpayment or Notice of Avoided Payment delivered to the Fiscal Agent shall
        be
        delivered simultaneously by facsimile and mail to FGIC. Each Notice of
        Nonpayment or Notice of Avoided Payment delivered to FGIC shall be delivered
        simultaneously by facsimile and mail to the Fiscal Agent.

       

      If
        any
        Notice of Nonpayment or Notice of Avoided Payment received by FGIC or the
        Fiscal
        Agent, as the case may be, is not in proper form or is otherwise insufficient
        for the purpose of making a claim hereunder, it shall be deemed not to have
        been
        received by FGIC or the Fiscal Agent, as the case may be, and FGIC or the
        Fiscal
        Agent, as the case may be, shall promptly so advise the Beneficiary, and
        the
        Beneficiary may submit an amended Notice of Nonpayment or Notice of Avoided
        Payment, as the case may be.

       

      Payments
        due hereunder unless otherwise stated herein will be disbursed by FGIC or
        the
        Fiscal Agent, as the case may be, to the Subordination Agent for the benefit
        of
        the Class G Trustee or the Primary Liquidity Provider by wire transfer of
        immediately available funds in the amount of such payment. Other than amounts
        payable in respect of Avoided Payments, FGIC’s obligations under this Policy
        shall be discharged to the extent funds to be applied to pay the Insured
        Obligations under and in accordance with the Intercreditor Agreement are
        received by the Subordination Agent (including funds disbursed by FGIC or
        the
        Fiscal Agent, as the case may be, as provided in this Policy and received
        by the
        Subordination Agent) whether or not such funds are properly applied by the
        Subordination Agent. FGIC’s obligations to make payments in respect of any
        Avoided Payments shall be discharged to the extent such payments are made
        by
        FGIC or the Fiscal Agent, as the case may be, hereunder and are received
        by the
        Subordination Agent, the applicable Class G Certificateholder, the Class
        G
        Trustee, the Primary Liquidity Provider or the receiver, conservator,
        debtor-in-possession or trustee in bankruptcy as applicable, whether or not
        such
        payments are properly applied by the Subordination Agent.

       

      The
        Fiscal Agent is the agent of FGIC only, and the Fiscal Agent shall in no
        event
        be liable to Certificateholders for any acts of the Fiscal Agent or any failure
        of FGIC to deposit or cause to be deposited sufficient funds to make payments
        due under this Policy.

       

      Any
        notice hereunder delivered to FGIC may be made at the address listed below
        for
        FGIC or such other address as FGIC shall specify in writing to the Subordination
        Agent.

       

      Any
        notice hereunder delivered to the Fiscal Agent may be made at such address
        as
        FGIC may specify in writing from time to time to the Subordination
        Agent.

       

      All
        notices, presentations, transmissions, deliveries and communications made
        by the
        Beneficiary to FGIC with respect to this Policy shall specifically refer
        to the
        number of this Policy and shall be made to FGIC at:

       

      Financial
        Guaranty Insurance Company

      125
        Park
        Avenue

      New
        York,
        New York 10017

      Attention:
        SF Surveillance 

      Telephone: (212)
        312-3029

      Facsimile: (212)
        312-3222

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      or
        such
        other address, telephone number or facsimile number as FGIC may designate
        to the
        Beneficiary in writing from time to time. Each such notice, presentation,
        transmission, delivery and communication shall be effective only upon actual
        receipt by FGIC.

       

      To
        the
        extent and in the manner specified in the Intercreditor Agreement, FGIC shall
        be
        subrogated to the rights of the Class G Trustee, each Class G Certificateholder
        and the Primary Liquidity Provider, as the case may be, to receive payments
        under the Class G Certificates and, as applicable, pursuant to the Primary
        Liquidity Facility to the extent of any payment made by it
        hereunder.

       

      This
        Policy is neither transferable nor assignable, in whole or in part, except
        to a
        successor Subordination Agent duly appointed and qualified under the
        Intercreditor Agreement. Such transfer and assignment shall be effective
        upon
        receipt by FGIC of a copy of the instrument effecting such transfer and
        assignment signed by the transferor and by the transferee, and a certificate,
        properly completed and signed by the transferor and the transferee, in the
        form
        of Exhibit
        C
        hereto
        (which shall be conclusive evidence of such transfer and assignment), and,
        in
        such case, the transferee instead of the transferor shall, without the necessity
        of further action, be entitled to all the benefits of and rights under this
        Policy in the transferor’s place, provided that,
        in such
        case, the Notice of Nonpayment presented hereunder shall be a certificate
        of the
        transferee and shall be signed by one who states therein that he is a duly
        authorized officer of the transferee.

       

      There
        shall be no acceleration payment due under this Policy unless such acceleration
        is at the sole option of FGIC, in accordance with the definition of Deficiency
        Amount in this Policy.

       

      This
        Policy shall expire and terminate and the obligations of FGIC hereunder shall
        be
        discharged without any action on the part of FGIC or any other Person on
        the
        later of (x) the day which is one year and one day following the Distribution
        Date upon which the Final Distributions on the Class G Certificates are made
        or
        (y) if applicable, the date on which the amount specified in sub-paragraph
        (vii)
        of the definition of Deficiency Amount under this Policy is paid in full.
        The
        foregoing notwithstanding, if an Insolvency Proceeding is existing during
        the
        one year and one day period set forth above, then this Policy and FGIC’s
        obligations hereunder shall terminate on the later of (i) the date of the
        conclusion or dismissal of such Insolvency Proceeding without continuing
        jurisdiction by the court in such Insolvency Proceeding, and (ii) the date
        on
        which FGIC has made all payments required to be made under the terms of this
        Policy in respect of Avoided Payments. Notwithstanding the foregoing, this
        Policy shall terminate and the obligations of FGIC hereunder shall be discharged
        without any further action on the part of FGIC, the Beneficiary or any other
        Person if the Policy is returned to the Policy Provider for cancellation
        by the
        Class G Certificateholders pursuant to Section 5.01 of the Class G Trust
        Agreement.

       

      This
        Policy is not covered by the property/casualty insurance fund specified in
        Article Seventy-Six of the New York State insurance law.

       

      This
        Policy sets forth in full the undertaking of FGIC, and, except as expressly
        provided in the Insurance Agreement and the Intercreditor Agreement, shall
        not
        be modified,

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      altered
        or affected by any other agreement or instrument, including any modification
        or
        amendment to any other agreement or instrument, or by the merger, consolidation
        or dissolution of Continental or any other Person and may not be canceled
        or
        revoked by FGIC prior to the time it is terminated in accordance with the
        express terms hereof. The premium payable to FGIC on this Policy is not
        refundable for any reason.

       

      This
        Policy shall be returned to FGIC upon termination.

       

      To
        the
        fullest extent permitted by applicable law, FGIC hereby waives, solely for
        the
        benefit of the Class G Certificateholders and the Primary Liquidity Provider,
        all defenses of any kind (including, without limitation, the defense of fraud
        in
        inducement or fact, any defense based on any duty claimed to arise from the
        doctrine of “utmost good faith” or any similar or related doctrine or any other
        circumstances that would have the effect of discharging a surety, guarantor
        or
        any other Person in law or in equity) that FGIC otherwise might have asserted
        as
        a defense to its obligation to pay in full any amounts that have become due
        and
        payable in accordance with the terms and conditions of this Policy. Nothing
        in
        this paragraph, however, shall be deemed to constitute a waiver of any rights,
        remedies, claims or counterclaims that FGIC may have, arising from or in
        connection with any amount that becomes due and payable for the benefit of
        the
        Class G Certificateholders or the Primary Liquidity Provider as described
        in the
        preceding sentence, after making payment of such
        amount,  with respect to Continental, any
        Liquidity Provider, the Subordination Agent, Wilmington Trust Company or
        any of
        their respective affiliates or any other Person, whether acquired by
        subrogation, assignment or otherwise, provided, that such
        reservation of rights, remedies, claims and counterclaims arising from or
        in
        connection with any particular payment shall not include any right to assert
        any
        defense of any kind to payment of any subsequent amount that may become due
        and
        payable in accordance with the terms and conditions of this Policy.

       

      THIS
        POLICY SHALL BE CONSTRUED, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
        PARTIES HEREUNDER SHALL BE DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE
        STATE
        OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES OR THE APPLICATION
        OF
        THE LAWS OF ANY OTHER JURISDICTION.

      
         

        
          
            
            

          

          
            -10-

            
              

            

          

          
            
            

          

        

      

       

      IN
        WITNESS WHEREOF, FGIC has caused this Policy to be duly executed on the date
        first written above.

       

      
         

        
          	 	 	 
	 	
                  FINANCIAL
                    GUARANTY INSURANCE

                  COMPANY

                
	 
 	 
 	 
 
	 	 President
	
                   

                   

                	
                   

                   

                
	 	Assistant
                  Secretary 

        

      

       

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

       

      Exhibit
        A to Policy Number 06030067

       

      NOTICE
        OF NONPAYMENT AND DEMAND

      FOR
        PAYMENT OF INSURED AMOUNTS

       

      Date: [____________]

       

      Financial
        Guaranty Insurance Company 

      125
        Park
        Avenue

      New
        York,
        New York 10017

      Attention:
        Martin Joyce

       

      

       

      [Fiscal
        Agent]

      [Address
        of Fiscal Agent]

      Attention:
        [______]

       

      Reference
        is made to Policy No. 06030067, dated June 9, 2006 (the “Policy”),
        issued
        by Financial Guaranty Insurance Company (“FGIC”)
        with
        respect to the Continental Airlines Pass Through Trust Certificates, Series
        2006-1G. Terms capitalized herein and not otherwise defined shall have the
        meanings ascribed to such terms in or pursuant to the Policy unless the context
        otherwise requires or, if not defined therein, in or pursuant to the
        Intercreditor Agreement (as defined in the Policy).

       

      The
        Subordination Agent hereby certifies as follows:

       

      1.  The
        Subordination Agent is the subordination agent under the Intercreditor
        Agreement.

       

      2.  The
        relevant Distribution Date is [__________]. Such Distribution Date is a [Regular
        Distribution Date, Special Distribution Date, Election Distribution Date
        or
        Final Legal Distribution Date].

       

      [3. Payment
        of accrued and unpaid interest on the Class G Certificates at the Stated
        Interest Rate for the Class G Certificates (calculated assuming that Continental
        will not cure any Payment Default) on the outstanding Pool Balance of the
        Class
        G Certificates accrued to such Regular Distribution Date as determined pursuant
        to paragraph (i) of the definition of “Deficiency Amount” in the Policy is an
        amount equal to $____________.]

       

      [3. The
        amount determined for payment to the Class G Certificateholders pursuant
        to
        paragraph (ii) of the definition of “Deficiency Amount” in the Policy on such
        Special Distribution Date in respect of (A) the payment in full of the then
        outstanding Pool Balance of the Class G Certificates and (B) the payment
        of
        accrued and unpaid interest thereon at the Stated Interest Rate for the Class
        G
        Certificates for the period from the immediately preceding Regular Distribution
        Date to such Special Distribution Date (calculated assuming that Continental
        will not cure any Payment Default) is $____________.]

      
        
          
          

        

        
          Exh. A-1

          
            

          

        

        
          
          

        

      

       

      [3. The
        Subordination Agent has not received, and has not been deemed to have received,
        a timely Policy Provider Election pursuant to the Policy and the amount
        determined for payment to the Class G Certificateholders pursuant to paragraph
        (iii) of the definition of “Deficiency Amount” in the Policy on such Special
        Distribution Date in respect of the then outstanding principal amount of
        the
        Series G Equipment Note (less the amount of any Policy Drawings previously
        paid
        by the Policy Provider in respect of principal) plus accrued and unpaid interest
        thereon at the Stated Interest Rate for the Class G Certificates (calculated
        assuming that Continental will not cure any Payment Default) for the period
        from
        the immediately preceding Regular Distribution Date to such Special Distribution
        Date is $________.]

       

      [3. The
        Subordination Agent has received, or has been deemed to have received, a
        timely
        Policy Provider Election pursuant to the Policy and the amount determined
        for
        payment to the Class G Certificateholders pursuant to the provision in paragraph
        (iii)(A) of the definition of “Deficiency Amount” in the Policy on such Special
        Distribution Date in respect of the scheduled interest payable but not paid
        (whether by Continental or by the application of proceeds from the sale of
        any
        Collateral in connection with the exercise of remedies under the Indenture)
        on
        the Series G Equipment Note (calculated assuming that Continental will not
        cure
        any Payment Default) during such 24-month period (reduced by the amount of
        funds
        received from FGIC in connection with any prior Policy Drawing in respect
        of any
“Deficiency Amount” defined in clause (ii) of the definition thereof in the
        Policy and from the Primary Liquidity Facility, the Primary Cash Collateral
        Account or the Above-Cap Account or from FGIC to the extent of any Policy
        Drawings in respect of any “Deficiency Amount” defined in clause (i) of the
        definition thereof in the Policy as a result of a failure of the Primary
        Liquidity Provider to honor Interest Drawings under the Primary Liquidity
        Facility or a failure of the Above-Cap Liquidity Provider and the Liquidity
        Guarantor to make an Above-Cap Payment under the Above-Cap Liquidity Facility)
        is $_________.]

       

      [3. The
        Subordination Agent has received, or has been deemed to have received, a
        timely
        Policy Provider Election pursuant to the Policy, no Election Distribution
        Date
        has been established pursuant to the Policy, no Special Distribution Date
        has
        been established pursuant to clause (iv) of the definition of “Deficiency
        Amount” and the amount determined for payment to the Class G Certificateholders
        pursuant to paragraph (iii)(B) of the definition of “Deficiency Amount” in the
        Policy on the Regular Distribution Date on account of a shortfall in available
        funds required to pay (x) the scheduled principal payment (without regard
        to any
        Acceleration thereof or any Redemption Notice that Continental has failed
        to
        honor but taking into account any reduction previously made for redemptions)
        on
        such Regular Distribution Date (as limited by the exception to paragraph
        (iii)(B) of the definition of “Deficiency Amount” in the Policy) is
        $____________ and (y) interest payments (without regard to any funds available
        under the Primary Liquidity Facility, the Primary Cash Collateral Account
        or the
        Above-Cap Account and calculated assuming that Continental will not cure
        any
        Payment Default) at the Stated Interest Rate for the Class G Certificates
        scheduled to be paid on the Series G Equipment Note on the related payment
        date
        (as limited by the exception to paragraph (iii)(B) of the definition of
“Deficiency Amount” in the Policy) is $____________.]

       

      [3. The
        Subordination Agent has received, or has been deemed to have received, a
        timely
        Policy Provider Election pursuant to the Policy, the Special Distribution
        Date

      
        
          
          

        

        
          Exh. A-2

          
            

          

        

        
          
          

        

      

       

      related
        hereto is a Business Day elected by FGIC upon 20 days’ prior written notice and
        the amount determined for payment to the Class G Certificateholders pursuant
        to
        paragraph (iv) of the definition of “Deficiency Amount” in the Policy in respect
        of an amount equal to the then outstanding Pool Balance of the Class G
        Certificates and accrued and unpaid interest on such amount at the Stated
        Interest Rate for the Class G Certificates (calculated assuming that Continental
        will not cure any Payment Default) from the immediately preceding Regular
        Distribution Date to such Special Distribution Date is
        $__________.]

       

      [3. The
        amount determined for payment to the Class G Certificateholders pursuant
        to
        paragraph (v) of the definition of “Deficiency Amount” in the Policy on the
        Distribution Date which is an Election Distribution Date in respect of an
        amount
        equal to the then outstanding Pool Balance of the Class G Certificates and
        accrued and unpaid interest on such amount at the Stated Interest Rate for
        the
        Class G Certificates (calculated assuming that Continental will not cure
        any
        Payment Default) from the immediately preceding Regular Distribution Date
        to
        such Election Distribution Date is $___________.]

       

      [3. The
        amount determined for payment to the Class G Certificateholders pursuant
        to
        paragraph (vi) of the definition of “Deficiency Amount” in the Policy on the
        Distribution Date which is the Final Legal Distribution Date in respect of
        payment in full of the Final Distributions (calculated as of such date but
        excluding any accrued and unpaid Premium and calculated assuming that
        Continental will not cure any Payment Default) on the Class G Certificates
        is
        $__________.]

       

      [3. The
        amount determined for payment to the Primary Liquidity Provider pursuant
        to
        paragraph (vii) of the definition of “Deficiency Amount” in the Policy on the
        Distribution Date on or after the Liquidity
        Provider Reimbursement Date
        elected
        by the Subordination Agent on behalf of the Primary Liquidity Provider for
        all
        outstanding drawings under the Primary Liquidity Facility plus
        accrued
        interest thereon (as determined pursuant to the Primary Liquidity
        Facility)
        is
        $___________.] 

       

      4. The
        sum
        of $_________________ is the Insured Amount that is due.

       

      5. The
        Subordination Agent has not heretofore made a demand for the Insured Amount
        in
        respect of such Distribution Date.

       

      6. The
        Subordination Agent hereby requests payment of such Insured Amount that is
        due
        for payment be made by FGIC under the Policy and directs that payment under
        the
        Policy be made to the following account by bank wire transfer of federal
        or
        other immediately available funds in accordance with the terms of the Policy
        to:

       

      [____]

      ABA
        #:
        [_____]

      Acct
        #:
        [_____]

      FBO:
        [_____]

      [Policy
        Account number]

       

      7. The
        Subordination Agent hereby agrees that, following receipt of the Insured
        Amount
        from FGIC, it shall (a) cause such funds to be deposited in the Policy Account
        

      
        
          
          

        

        
          
            Exh. A-3

          

          
            

          

        

        
          
          

        

      

       

      and
        not
        permit such funds to be held in any other account, (b) cause such funds
        paid by FGIC pursuant to sub-paragraphs (i) through (vi) of the
        definition of Deficiency Amount under the Policy to be paid to the Subordination
        Agent for distribution to the Class G Trustee for the distribution to the
        Class
        G Certificateholders in payment of the Pool Balance of, or interest on, the
        Class G Certificates (as applicable) and not apply such funds for any other
        purpose, (c) cause such funds paid by FGIC pursuant to sub-paragraph (vii)
        of
        the definition of Deficiency Amount under the Policy to be paid to the Primary
        Liquidity Provider for payment of outstanding
        drawings under the Primary Liquidity Facility and accrued
        interest thereon
        and (d)
        maintain an accurate record of such payments with respect to the Class G
        Certificates and the Primary Liquidity Provider and the corresponding claim
        on
        the Policy and proceeds thereof.

       

      Any
        person who knowingly and with intent to defraud any insurance company or
        other
        person files an application for insurance or statement of claim containing
        any
        materially false information or conceals for the purpose of misleading,
        information concerning any fact material thereto, commits a fraudulent insurance
        act, which is a crime, and shall also be subject to a civil penalty not to
        exceed Five Thousand Dollars ($5,000.00) and the stated value of the claim
        for
        each such violation.

       

      
        
          
            
               

              
                	 	 	 
	 	
                        WILMINGTON
                          TRUST
                          COMPANY,

                          
                          as Subordination Agent

                      
	 
 	 
 	 
 
	 	By:  	 
	 	Name:	 
	 	Title: 	 

              

              

                
                  
                    
                      

                    

                    
                    

                  

                  
                    Exh. A-4

                    
                      

                    

                  

                  
                    
                    

                    
                      

                    

                  

                

              

               

            

          

        

      

      Exhibit
        B to Policy Number 06030067

       

      NOTICE
        OF AVOIDED PAYMENT AND DEMAND

      FOR
        PAYMENT OF AVOIDED PAYMENTS

       

      
         

        Date: [____________]

      

       

      Financial
        Guaranty Insurance Company 

      125
        Park
        Avenue

      New
        York,
        New York 10017

      Attention:
        Martin Joyce

      

       

      [Fiscal
        Agent]

      [Address
        of Fiscal Agent]

      Attention:
        [______]

       

      Reference
        is made to Policy No. 06030067, dated June 9, 2006 (the “Policy”),
        issued by Financial Guaranty Insurance Company (“FGIC”)
        with
        respect to the Continental Airlines Pass Through Trust Certificates, Series
        2006-1G. Terms capitalized herein and not otherwise defined shall have the
        meanings ascribed to such terms in or pursuant to the Policy unless the context
        otherwise requires or, if not defined therein, in or pursuant to the
        Intercreditor Agreement (as defined in the Policy).

       

      The
        [Class G Certificateholder/Subordination Agent/Class G Trustee/Primary Liquidity
        Provider] hereby certifies as follows:

       

      1. The
        Subordination Agent is the subordination agent under the Intercreditor
        Agreement.

       

      [2. The
        Subordination Agent has established ______________ as a Special Distribution
        Date pursuant to the Intercreditor Agreement for amounts claimed
        hereunder.]

       

      3. An
        Order
        (as defined in the Policy) providing for the recovery of an Avoided Payment
        of
        $________________ has been issued.

       

      4. $_________________
        of the amount set forth in item No. 3 above has been paid by the [Class G
        Certificateholder/Subordination Agent/Class G Trustee/Primary Liquidity
        Provider] and $_________________ is required to be paid to the receiver,
        conservator, debtor-in-possession or trustee in bankruptcy named in the
        Order.

       

      5. The
        [Class G Certificateholder/Subordination Agent/Class G Trustee/Primary Liquidity
        Provider] has not heretofore made a demand for such Avoided
        Payment.

      
        
          
          

        

        
          Exh. B-1

          
            

          

        

        
          
          

        

      

       

      6. The
        [Class G Certificateholder/Subordination Agent/Class G Trustee/Primary Liquidity
        Provider] has delivered to FGIC or has attached hereto all documents required
        by
        the Policy to be delivered in connection with such Avoided Payment.

       

      7. The
        [Class G Certificateholder/Subordination Agent/Class G Trustee/Primary Liquidity
        Provider] hereby requests that payment of $______________ of such Avoided
        Payment be made to the receiver, conservator, debtor-in-possession or trustee
        in
        bankruptcy named in the Order and $________________ of such Avoided Payment
        be
        paid to the [Class G Trustee] [Subordination Agent for distribution to the
        Class
        G Trustee] [Primary Liquidity Provider], in each case, by FGIC under the
        Policy
        and directs that payment under the Policy be made to the following account
        by
        bank wire transfer of federal or other immediately available funds in accordance
        with the terms of the Policy to:

       

      For
        the
        portion to be paid to the receiver, conservator, debtor-in-possession or
        trustee, to _________________________:

       

      ABA
        #:
        [_____]

      Acct
        #:
        [_____]

      FBO:
        [_____]

       

      [relevant
        account number]

       

      For
        the
        portion to be paid to the [Class G Certificateholder/Subordination Agent/Class
        G
        Trustee/Primary Liquidity Provider]:

       

      ABA
        #:
        [_____]

      Acct
        #:
        [_____]

      FBO:
        [_____]

       

      [Policy
        Account Number] [relevant account number]

       

      Any
        person who knowingly and with intent to defraud any insurance company or
        other
        person files an application for insurance or statement of claim containing
        any
        materially false information or conceals for the purpose of misleading,
        information concerning any fact material thereto, commits a fraudulent insurance
        act, which is a crime, and shall also be subject to a civil penalty not to
        exceed Five Thousand Dollars ($5,000.00) and the stated value of the claim
        for
        each such violation.

       

      
         

        
          	 	 	 
	 	
                  [Name
                    of Party Giving Notice]

                
	 
 	 
 	 
 
	 	By:  	 
	 	Name:	 
	 	Title: 	 (Officer)

        

         

      

      

      
        
          
            

          

          Exh.
            B-2

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      Exhibit
        C to Policy Number 06030067

       

      Date:
        _________________

       

      

       

      Financial
        Guaranty Insurance Company 

      125
        Park
        Avenue

      New
        York,
        New York 10017

      Attention:
        Martin Joyce

       

       

      Dear
        Sirs:

       

      Reference
        is made to that certain Policy, Number 06030067, dated June 9, 2006 (the
        “Policy”),
        which
        has been issued by Financial Guaranty Insurance Company in favor of the
        Subordination Agent with respect to the Continental Airlines Pass Through
        Trust
        Certificates, Series 2006-1G.

       

      The
        undersigned [Name of Transferor] has transferred and assigned (and hereby
        confirms to you said transfer and assignment) all of its rights in and under
        said Policy to [Name of Transferee] and confirms that [Name of Transferor]
        no
        longer has any rights under or interest in said Policy.

       

      Transferor
        and Transferee have indicated on the face of said Policy that it has been
        transferred and assigned to Transferee.

       

      Transferee
        hereby certifies that it is a duly authorized transferee under the terms
        of said
        Policy and is accordingly entitled, upon presentation of the document(s)
        called
        for therein, to receive payment thereunder.

       

      
         

        
          	 	   
	 	  [Name
                  of
                  Transferor]
	 
 	 	 
 	 
 
	 	 	By:  	 
	 	 	
                  [Name
                    and Title of Authorized Officer of

                  Transferor]

                

        

         

         

         

      

      
        
          
            

          

          
          

        

        
          Exh. C-1

          
            

          

        

        
          
          

          
            

          

        

      

      Exhibit
        D to Policy Number 06030067

       

      Form
        of Assignment

       

      Reference
        is made to that certain Policy No. 06030067, dated June 9, 2006 (the
“Policy”),
        issued by Financial Guaranty Insurance Company (“FGIC”)
        relating to the Continental Airlines Pass Through Trust Certificates, Series
        2006-1G. Unless otherwise defined herein, capitalized terms used in this
        Assignment shall have the meanings assigned thereto in the Policy as
        incorporated by reference therein. In connection with the Avoided Payment
        of
        [$_________] paid by the undersigned (the “[Class
        G Certificateholder/Beneficiary/Class
        G Trustee/Primary Liquidity Provider]”)
        on
        [______] and the payment by FGIC in respect of such Avoided Payment pursuant
        to
        the Policy, the [Class G Certificateholder/Beneficiary/Class G Trustee/Primary
        Liquidity Provider] hereby irrevocably and unconditionally, without recourse,
        representation or warranty (except as provided below), sells, assigns,
        transfers, conveys and delivers to FGIC all of such [Class G
        Certificateholder’s/Beneficiary’s/Class G Trustee’s/Primary Liquidity
        Provider’s] rights, title and interest in and to any rights or claims, whether
        accrued, contingent or otherwise, which the [Class G
        Certificateholder/Beneficiary/Class G Trustee/Primary Liquidity Provider]
        now
        has or may hereafter acquire, against any person relating to, arising out
        of or
        in connection with such Avoided Payment. The [Class G
        Certificateholder/Beneficiary/Class G Trustee/Primary Liquidity Provider]
        represents and warrants that such claims and rights are free and clear of
        any
        lien or encumbrance created or incurred by such [Class G
        Certificateholder/Beneficiary/Class G Trustee/Primary Liquidity Provider].
        In
        addition, the [Class G Certificateholder/Beneficiary/Class G Trustee/Primary
        Liquidity Provider] hereby irrevocably appoints FGIC as its agent and
        attorney-in-fact to take any and all action necessary in connection with
        the
        foregoing assignment (including, without limitation, for purposes of any
        legal
        proceeding related to such Avoided Payment).1 

       

      
        
           

          
            	 	 	 
	 	
                    [Class
                      G Certificateholder/Beneficiary/Class G

                            
                      Trustee/Primary Liquidity Provider]

                  
	 
 	 
 	 
 
	 	By:  	 
	 	Name:	 
	 	Title: 	
                  

          

           

        

      

      

        

        
           

          1  In
            the
            event that the terms of this form of assignment are reasonably determined
            to be
            insufficient solely as a result of a change of law or applicable rules
            after the
            date of the Policy to fully vest all of the [Class G
            Certificateholder’s/Beneficiary’s/Class G Trustee’s/Primary Liquidity
            Provider’s] right, title and interest in such rights and claims, the [Class G
            Certificateholder/Beneficiary/Class G Trustee/Primary Liquidity Provider]
            and
            FGIC shall agree on such other form as is reasonably necessary to effect
            such
            assignment, which assignment shall be without recourse, representation
            or
            warranty except as provided above.

           

          
             

            
              D-1Exhibit No to be provided by Shpaner

     

      
        

      

    

     

     

    INTERCREDITOR
      AGREEMENT

    (2006-1)

    

    Dated
      as
      of

    June
      9,
      2006

    

    AMONG

    

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity

    but
      solely as Trustee under the

    Continental
      Airlines Pass Through Trust 2006-1G

    and

    Continental
      Airlines Pass Through Trust 2006-1B,

    

    

    MORGAN
      STANLEY BANK,

    as
      Primary Liquidity Provider,

    

    MORGAN
      STANLEY CAPITAL SERVICES INC.,

    as
      Above-Cap Liquidity Provider

    

    

    FINANCIAL
      GUARANTY INSURANCE COMPANY,

    as
      Policy
      Provider

    

    AND

    

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity except

    as
      expressly set forth herein but

    solely
      as
      Subordination Agent and Trustee

     

     

    
      
        

      

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    TABLE
      OF CONTENTS

     

    Page

    

    
      	
               

              ARTICLE
                I DEFINITIONS

            	
               

              2

            
	 	
              SECTION
                1.1. Definitions

            	
              2

            
	
               

              ARTICLE
                II TRUST
                ACCOUNTS; CONTROLLING PARTY

            	
               

              21

            
	 	
              SECTION
                2.1. Agreement to Terms of Subordination; Payments
                from Monies Received Only

            	
              21

            
	 	
              SECTION
                2.2. Trust Accounts

            	
              21

            
	 	
              SECTION
                2.3. Deposits to the Collection Account and Special
                Payments Account

            	
              23

            
	 	
              SECTION
                2.4. Distributions of Special
                Payments

            	
              23

            
	 	
              SECTION
                2.5. Designated Representatives

            	
              24

            
	 	
              SECTION
                2.6. Controlling Party

            	
              25

            
	
               

              ARTICLE
                III RECEIPT,
                DISTRIBUTION AND APPLICATION OF AMOUNTS
                RECEIVED

            	
               

              26

            
	 	
              SECTION
                3.1. Written Notice of
                Distribution

            	
              26

            
	 	
              SECTION
                3.2. Distribution of Amounts on Deposit in the
                Collection Account

            	
              29

            
	 	
              SECTION
                3.3. Other Payments

            	
              32

            
	 	
              SECTION
                3.4. Payments to the Trustees, the Primary
                Liquidity Provider and Policy Provider

            	
              32

            
	 	
              SECTION
                3.5. Liquidity Facilities

            	
              32

            
	 	
              SECTION
                3.6. The Policy

            	
              42

            
	
               

              ARTICLE
                IV EXERCISE
                OF REMEDIES

            	
               

              47

            
	 	
              SECTION
                4.1. Directions from the Controlling
                Party

            	
              47

            
	 	
              SECTION
                4.2. Remedies Cumulative

            	
              48

            
	 	
              SECTION
                4.3. Discontinuance of
                Proceedings

            	
              48

            
	 	
              SECTION
                4.4. Right of Certificateholders, Liquidity
                Provider and the Policy Provider to Receive Payments Not

              to
                Be Impaired

            	
              48

            
	 	
              SECTION
                4.5. Undertaking for Costs

            	
              48

            
	
               

              ARTICLE
                V DUTIES
                OF THE SUBORDINATION AGENT; AGREEMENTS OF
                TRUSTEES, ETC.

            	
               

              49

            
	 	
              SECTION
                5.1. Notice of Indenture Default or Triggering
                Event

            	
              49

            
	 	
              SECTION
                5.2. Indemnification

            	
              50

            
	 	
              SECTION
                5.3. No Duties Except as Specified in Intercreditor
                Agreement

            	
              50

            
	 	
              SECTION
                5.4. Notice from the Liquidity Providers and
                Trustees

            	
              51

            
	
               

              ARTICLE
                VI THE
                SUBORDINATION AGENT

            	
               

              51

            
	 	
              SECTION
                6.1. Authorization; Acceptance of Trusts and
                Duties

            	
              51

            
	 	
              SECTION
                6.2. Absence of Duties

            	
              51

            

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    Page

     

    
      	 	
              SECTION
                6.3. No Representations or Warranties as to
                Documents

            	
              51

            
	 	
              SECTION
                6.4. No Segregation of Monies; No
                Interest

            	
              52

            
	 	
              SECTION
                6.5. Reliance; Agents; Advice of
                Counsel

            	
              52

            
	 	
              SECTION
                6.6. Capacity in Which Acting

            	
              52

            
	 	
              SECTION
                6.7. Compensation

            	
              52

            
	 	
              SECTION
                6.8. May Become
                Certificateholder

            	
              53

            
	 	
              SECTION
                6.9. Subordination Agent Required;
                Eligibility

            	
              53

            
	 	
              SECTION
                6.10. Money to Be Held in
                Trust

            	
              53

            
	
               

              ARTICLE
                VII INDEMNIFICATION
                OF SUBORDINATION
                AGENT

            	
               

              53

            
	 	
              SECTION
                7.1. Scope of Indemnification

            	
              53

            
	
               

              ARTICLE
                VIII SUCCESSOR
                SUBORDINATION AGENT

            	
               

              54

            
	 	
              SECTION
                8.1. Replacement of Subordination Agent;
                Appointment of Successor

            	
              54

            
	
               

              ARTICLE
                IX SUPPLEMENTS
                AND AMENDMENTS

            	
               

              55

            
	 	
              SECTION
                9.1. Amendments, Waivers, etc.

            	
              55

            
	 	
              SECTION
                9.2. Subordination Agent
                Protected

            	
              56

            
	 	
              SECTION
                9.3. Effect of Supplemental
                Agreements

            	
              56

            
	 	
              SECTION
                9.4. Notice to Rating Agencies

            	
              57

            
	
               

              ARTICLE
                X MISCELLANEOUS

            	
               

              57

            
	 	
              SECTION
                10.1. Termination of Intercreditor
                Agreement

            	
              57

            
	 	
              SECTION
                10.2. Intercreditor Agreement for Benefit of
                Trustees, Liquidity

              Providers,
                the Policy Provider and Subordination
                Agent

            	
              57

            
	 	
              SECTION
                10.3. Notices

            	
              58

            
	 	
              SECTION
                10.4. Severability

            	
              59

            
	 	
              SECTION
                10.5. No Oral Modifications or Continuing
                Waivers

            	
              60

            
	 	
              SECTION
                10.6. Successors and Assigns

            	
              60

            
	 	
              SECTION
                10.7. Headings

            	
              60

            
	 	
              SECTION
                10.8. Counterpart Form

            	
              60

            
	 	
              SECTION
                10.9. Subordination

            	
              60

            
	 	
              SECTION
                10.10. Governing Law

            	
              61

            
	 	
              SECTION
                10.11. Submission to Jurisdiction; Waiver of Jury
                Trial.

            	
              61

            

    

     

    
      
        
          

           

        

        ii

      

      
        
        

        
          

        

      

      
        BACK

        
          

           

        

      

    

    INTERCREDITOR
      AGREEMENT

     

     

     

    INTERCREDITOR
      AGREEMENT dated as of June 9, 2006, among WILMINGTON TRUST COMPANY, a Delaware
      banking corporation ("WTC"),
      not
      in its individual capacity but solely as Trustee of each Trust (each as defined
      below); MORGAN STANLEY BANK, a Utah industrial bank, as Primary Liquidity
      Provider, MORGAN STANLEY CAPITAL SERVICES INC., a Delaware corporation, as
      Above-Cap Liquidity Provider; FINANCIAL GUARANTY INSURANCE COMPANY, a stock
      insurance corporation incorporated under the laws of the State of New York,
      as
      Policy Provider; and WILMINGTON TRUST COMPANY, not in its individual capacity
      except as expressly set forth herein, but solely as Subordination Agent and
      trustee hereunder (in such capacity, together with any successor appointed
      pursuant to Article VIII hereof, the "Subordination
      Agent").

     

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

     

    WHEREAS,
      pursuant to the Indenture, Continental will issue on a recourse basis up to
      (and
      including) two series of Equipment Notes secured by the Pledged Spare
      Parts;

     

    WHEREAS,
      pursuant to the Note Purchase Agreement, each Trust will acquire the Equipment
      Note having an interest rate equal to the interest rate applicable to the
      Certificates to be issued by such Trust;

     

    WHEREAS,
      pursuant to each Trust Agreement, the Trust created thereby proposes to issue
      a
      single class of Certificates (a "Class")
      bearing the interest rate and having the final distribution date described
      in
      such Trust Agreement on the terms and subject to the conditions set forth
      therein;

     

    WHEREAS,
      pursuant to the Underwriting Agreement, the Underwriter proposes to purchase
      the
      Class G Certificates issued by the Class G Trust and the Class B Certificates
      issued by the Class B Trust in the aggregate face amount set forth opposite
      the
      name of such Trust on Schedule I thereto on the terms and subject to the
      conditions set forth therein;

     

    WHEREAS,
      the Primary Liquidity Provider proposes to enter into a revolving credit
      agreement relating to the Class G Certificates and the Above-Cap Liquidity
      Provider proposes to enter into an irrevocable interest rate cap agreement
      relating to the Class G Certificates, in each case with the Subordination Agent,
      as agent for the Class G Trustee, for the benefit of the Class G
      Certificateholders; 

     

    WHEREAS,
      the Policy Provider proposes to enter into the Policy Provider Agreement
      providing for the issuance by the Policy Provider of the Policy for the benefit
      of the Class G Certificateholders; and

     

    WHEREAS,
      it is a condition precedent to the obligations of the Underwriter under the
      Underwriting Agreement that the Subordination Agent, the Trustees, the Liquidity
      

     

    
      
         

      

      
         

        
          

        

      

      
        BACK

      

    

    Providers
      and the Policy Provider agree to the terms of subordination set forth in this
      Agreement in respect of each Class of Certificates, and the Subordination Agent,
      the Trustees, the Liquidity Providers and the Policy Provider, by entering
      into
      this Agreement, hereby acknowledge and agree to such terms of subordination
      and
      the other provisions of this Agreement.

     

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

     

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.1. Definitions.
      For all
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

     

    (1) the
      terms
      used herein that are defined in this Article have the meanings assigned to
      them
      in this Article, and words importing the plural include the singular and words
      importing the singular include the plural;

     

    (2) all
      references in this Agreement to designated "Articles", "Sections" and other
      subdivisions are to the designated Articles, Sections and other subdivisions
      of
      this Agreement;

     

    (3) the
      words
      "herein", "hereof" and "hereunder" and other words of similar import refer
      to
      this Agreement as a whole and not to any particular Article, Section or other
      subdivision; and

     

    (4) the
      term
      "including" means "including without limitation".

     

    "Above-Cap
      Account"
      means
      an Eligible Deposit Account in the name of the Subordination Agent maintained
      at
      an Eligible Institution, which shall be the Subordination Agent if it shall
      so
      qualify, into which all amounts paid under the Above-Cap Liquidity Facility
      pursuant to Section 3.5(a) shall be deposited.

     

    "Above-Cap
      Collateral Account"
      means
      an Eligible Deposit Account in the name of the Subordination Agent maintained
      at
      an Eligible Institution, which shall be the Subordination Agent if it shall
      so
      qualify, into which all amounts paid under the Above-Cap Liquidity Facility
      pursuant to Section 3.5(c)(iv) shall be deposited.

     

    "Above-Cap
      Liquidity Facility"
      means,
      initially, the ISDA Master Agreement, dated as of the date hereof, between
      the
      Subordination Agent, as agent and trustee for the Class G Trust, and the initial
      Above-Cap Liquidity Provider, together with the Schedule and Confirmation
      attached thereto, relating to the Class G Certificates, and, from and after
      the
      replacement of such ISDA Master Agreement pursuant hereto, the Replacement
      Above-Cap Liquidity Facility therefor, if any, in each case as amended,
      supplemented or otherwise modified from time to time in accordance with its
      terms.

     

    
      
         

      

      
        2

        
          

        

      

      
        BACK

      

    

    "Above-Cap
      Liquidity Provider"
      means
      Morgan Stanley Capital Services Inc., together with any Replacement Above-Cap
      Liquidity Provider which has issued a Replacement Above-Cap Liquidity Facility
      to replace any Above-Cap Liquidity Facility pursuant to Section
      3.5(c)(iv).

     

    "Above-Cap
      Payment"
      has the
      meaning specified in Section 3.5(a).

     

    "Above-Cap
      Withdrawal"
      has the
      meaning specified in

    Section
      3.5(a).

    

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

     

    "Accrued
      Class G Interest"
      has the
      meaning specified in Section 3.6(a).

     

    "Advance"
      means
      any Advance as defined in the Primary Liquidity Facility.

     

    "Affiliate"
      means,
      with respect to any Person, any other Person directly or indirectly controlling,
      controlled by or under common control with such Person. For the purposes of
      this
      definition, "control" means the power, directly or indirectly, to direct or
      cause the direction of the management and policies of such Person whether
      through the ownership of voting securities or by contract or otherwise; and
      the
      terms "controlling" and "controlled" have meanings correlative to the
      foregoing.

     

    "Applicable
      Fraction"
      means,
      with respect to any Special Distribution Date, a fraction, the numerator of
      which shall be the amount of principal of the applicable Equipment Note or
      Equipment Notes being redeemed, purchased or prepaid on such Special
      Distribution Date, and the denominator of which shall be the aggregate
      outstanding principal amount of all Equipment Notes.

     

    "Appraisal"
      means a
      Fair Market Value appraisal (which may be a "desktop" appraisal) performed
      by
      any nationally recognized aircraft or aircraft parts appraiser.

     

    "Available
      Amount"
      means,
      on any date, the Maximum Available Commitment (as defined in the Primary
      Liquidity Facility) on such date.

     

    "Avoided
      Payment"
      has the
      meaning assigned to such term in the Policy.

     

    "Bankruptcy
      Code"
      means
      the United States Bankruptcy Code, 11 U.S.C Section 101 et seq.

     

    "Basic
      Agreement"
      means
      the Pass Through Trust Agreement dated as of September 25, 1997 between
      Continental and WTC, not in its individual capacity, except as otherwise
      expressly provided therein, but solely as trustee.

     

    
      
         

      

      
        3

        
          

        

      

      
        BACK

      

    

    "Business
      Day"
      means
      any day (i) other than a Saturday or Sunday or a day on which insurance
      companies in New York, New York or commercial banks are required or authorized
      to close in Houston, Texas, New York, New York, or, so long as any Certificate
      is outstanding, the city and state in which any Trustee, the Subordination
      Agent
      or the Mortgagee maintains its Corporate Trust Office or, solely with respect
      to
      draws under the Policy, the city and state in which the office of the Policy
      Provider at which notices, presentations, transmissions, deliveries and
      communications are to be made under the Policy is located or the city and state
      in which the corporate trust office of the Fiscal Agent is located (ii) that
      is
      a day for trading by and between banks in the London interbank Eurodollar market
      and (iii) that, solely with respect to draws under any Liquidity Facility,
      also
      is a "Business Day" as defined in such Liquidity Facility.

     

    "Capped
      Interest Rate"
      means,
      at any time, Capped LIBOR at such time plus 0.35% per annum.

     

    "Capped
      LIBOR"
      means,
      at any time, 10% per annum.

     

    "Cash
      Collateral Account"
      means
      the Primary Cash Collateral Account, or the Above-Cap Collateral Account, as
      applicable.

     

    "Certificate"
      means a
      Class G Certificate or a Class B Certificate, as applicable.

     

    "Certificateholder"
      means
      any holder of one or more Certificates.

     

    "Class"
      has the
      meaning assigned to such term in the preliminary statements to this
      Agreement.

     

    "Class
      B Certificateholder"
      means,
      at any time, any holder of one or more Class B Certificates.

     

    "Class
      B Certificates"
      means
      the certificates issued by the Class B Trust, substantially in the form of
      Exhibit A to the Class B Trust Agreement, and authenticated by the Class B
      Trustee, representing fractional undivided interests in the Class B Trust,
      and
      any certificates issued in exchange therefor or replacement thereof pursuant
      to
      the terms of the Class B Trust Agreement.

     

    "Class
      B Trust"
      means,
      the Continental Airlines Pass Through Trust 2006-1B created and administered
      pursuant to the Class B Trust Agreement.

     

    "Class
      B Trust Agreement"
      means,
      the Basic Agreement, as supplemented by the Supplement No. 2006-1B thereto
      dated
      as of the date hereof (the "Class
      B Trust Supplement"),
      governing the creation and administration of the Continental Airlines Pass
      Through Trust 2006-1B and the issuance of the Class B Certificates, as the
      same
      may be amended, supplemented or otherwise modified from time to time in
      accordance with its terms.

     

    "Class
      B Trust Supplement"
      has the
      meaning assigned to such term in the definition of Class B Trust
      Agreement.

     

    
      
         

      

      
        4

        
          

        

      

      
        BACK

      

    

    "Class
      B Trustee"
      means
      WTC, not in its individual capacity except as expressly set forth in the Class
      B
      Trust Agreement, but solely as trustee under the Class B Trust Agreement,
      together with any successor trustee appointed pursuant thereto.

     

    "Class
      G Certificateholder"
      means,
      at any time, any holder of one or more Class G Certificates.

     

    "Class
      G Certificates"
      means
      the certificates issued by the Class G Trust, substantially in the form of
      Exhibit A to the Class G Trust Agreement, and authenticated by the Class G
      Trustee, representing fractional undivided interests in the Class G Trust,
      and
      any certificates issued in exchange therefor or replacement thereof pursuant
      to
      the terms of the Class G Trust Agreement.

     

    "Class
      G Trust"
      means
      the Continental Airlines Pass Through Trust 2006-1G created and administered
      pursuant to the Class G Trust Agreement. 

     

    "Class
      G Trust Agreement"
      means
      the Basic Agreement, as supplemented by the Supplement No. 2006-1G thereto
      dated
      as of the date hereof (the “Class
      G Trust Supplement”),
      governing the creation and administration of the Continental Airlines Pass
      Through Trust 2006-1G and the issuance of the Class G Certificates, as the
      same
      may be amended, supplemented or otherwise modified from time to time in
      accordance with its terms.

     

    "Class
      G Trust Supplement"
      has the
      meaning assigned to such term in the definition of Class G Trust
      Agreement.

     

    "Class
      G Trustee"
      means
      WTC, not in its individual capacity except as expressly set forth in the Class
      G
      Trust Agreement, but solely as trustee under the Class G Trust Agreement,
      together with any successor trustee appointed pursuant thereto.

     

    "Closing
      Date"
      means
      June 9, 2006.

     

    "Code"
      means
      the Internal Revenue Code of 1986, as amended from time to time, and the
      Treasury Regulations promulgated thereunder.

     

    "Collateral"
      has the
      meaning specified in the Indenture.

     

    "Collateral
      Maintenance Agreement"
      has the
      meaning specified in the Indenture.

     

    "Collection
      Account"
      means
      the Eligible Deposit Account established by the Subordination Agent pursuant
      to
      Section 2.2(a)(i) which the Subordination Agent shall make deposits in and
      withdrawals from in accordance with this Agreement.

     

    "Consent
      Period"
      has the
      meaning specified in Section 3.5(d).

     

    "Continental"
      means
      Continental Airlines, Inc., a Delaware corporation, and its successors and
      assigns.

     

    
      
         

      

      
        5

        
          

        

      

      
        BACK

      

    

    "Continental
      Bankruptcy Event"
      means
      the occurrence and continuation of any of the following:

     

    (a) Continental
      shall consent to the appointment of or the taking of possession by a receiver,
      trustee or liquidator of itself or of a substantial part of its property, or
      Continental shall admit in writing its inability to pay its debts generally
      as
      they come due, or does not pay its debts generally as they become due or shall
      make a general assignment for the benefit of creditors, or Continental shall
      file a voluntary petition in bankruptcy or a voluntary petition or an answer
      seeking reorganization, liquidation or other relief in a case under any
      bankruptcy laws or other insolvency laws (as in effect at such time) or an
      answer admitting the material allegations of a petition filed against
      Continental in any such case, or Continental shall seek relief by voluntary
      petition, answer or consent, under the provisions of any other bankruptcy or
      other similar law providing for the reorganization or winding-up of corporations
      (as in effect at such time) or Continental shall seek an agreement, composition,
      extension or adjustment with its creditors under such laws, or Continental's
      board of directors shall adopt a resolution authorizing corporate action in
      furtherance of any of the foregoing; or

     

    (b) an
      order,
      judgment or decree shall be entered by any court of competent jurisdiction
      appointing, without the consent of Continental, a receiver, trustee or
      liquidator of Continental or of any substantial part of its property, or any
      substantial part of the property of Continental shall be sequestered, or
      granting any other relief in respect of Continental as a debtor under any
      bankruptcy laws or other insolvency laws (as in effect at such time), and any
      such order, judgment or decree of appointment or sequestration shall remain
      in
      force undismissed, unstayed and unvacated for a period of 60 days after the
      date
      of entry thereof; or

     

    (c) a
      petition against Continental in a case under any bankruptcy laws or other
      insolvency laws (as in effect at such time) is filed and not withdrawn or
      dismissed within 60 days thereafter, or if, under the provisions of any law
      providing for reorganization or winding-up of corporations which may apply
      to
      Continental, any court of competent jurisdiction assumes jurisdiction, custody
      or control of Continental or of any substantial part of its property and such
      jurisdiction, custody or control remains in force unrelinquished, unstayed
      and
      unterminated for a period of 60 days.

     

    "Continental
      Provisions"
      has the
      meaning specified in Section 9.1(a).

     

    "Controlling
      Party"
      means
      the Person entitled to act as such pursuant to the terms of Section
      2.6.

     

    "Corporate
      Trust Office"
      means,
      with respect to any Trustee, the Subordination Agent or the Mortgagee, the
      office of such Person in the city at which, at any particular time, its
      corporate trust business shall be principally administered.

     

    "Credit
      Downgrade"
      has the
      meaning specified in the Above-Cap Liquidity Facility.

     

    
      
         

      

      
        6

        
          

        

      

      
        BACK

      

    

    "Credit
      Support Event"
      has the
      meaning specified in the Above-Cap Liquidity Facility.

     

    "Current
      Distribution Date"
      means a
      Distribution Date specified as a reference date for calculating the Expected
      Distributions with respect to the Certificates of any Trust as of such
      Distribution Date.

     

    "Current
      Fair Market Value",
      with
      respect to any Pledged Spare Parts, means the Fair Market Value of such Pledged
      Spare Parts as determined on the basis of the most recent Appraisal obtained
      under Section 4.1(a)(iii) or (iv).

     

    "Default
      Period"
      has the
      meaning specified in Section 3.6(c).

     

    "Deficiency
      Amount"
      has the
      meaning specified in Section 3.5(a).

     

    "Designated
      Representatives"
      means
      the Subordination Agent Representatives, the Trustee Representatives and the
      Provider Representatives identified under Section 2.5.

     

    "Disposition"
      has the
      meaning specified in Section 3.6(b).

     

    "Distribution
      Date"
      means a
      Regular Distribution Date or a Special Distribution Date.

     

    "Dollars"
      or
      "$"
      means
      United States dollars.

     

    "Downgrade
      Drawing"
      has the
      meaning specified in Section 3.5(c).

     

    "Downgrade
      Event"
      has the
      meaning assigned to such term in the Primary Liquidity Facility.

     

    "Downgraded
      Facility"
      has the
      meaning specified in Section 3.5(c).

     

    "Drawing"
      means
      an Interest Drawing, a Final Drawing, a Non-Extension Drawing or a Downgrade
      Drawing, as the case may be.

     

    "DTC"
      means
      the Depositary Trust Company.

     

    "Early
      Termination Date"
      has the
      meaning assigned to such term in the Above-Cap Liquidity Facility.

     

    "Early
      Termination Fee"
      has the
      meaning assigned to such term in the Policy Fee Letter.

     

    "Election
      Distribution Date"
      has the
      meaning specified in Section 3.6(c).

     

    "Election
      Interest Payment"
      has the
      meaning specified in Section 3.6(c).

     

    "Eligible
      Deposit Account"
      means
      either (a) a segregated account with an Eligible Institution or (b) a segregated
      trust account with the corporate trust department of a depository 

     

    
      
         

      

      
        7

        
          

        

      

      
        BACK

      

    

    institution
      organized under the laws of the United States of America or any one of the
      states thereof or the District of Columbia (or any U.S. branch of a foreign
      bank), having corporate trust powers and acting as trustee for funds deposited
      in such account, so long as any of the securities of such depository institution
      has a long-term unsecured debt rating of at least A3 from Moody’s and a
      long-term unsecured issuer credit rating of at least A- from Standard &
Poor’s. An Eligible Deposit Account may be maintained with the Primary Liquidity
      Provider so long as it is an Eligible Institution; provided
      that the
      Primary Liquidity Provider shall have waived all rights of set-off and
      counterclaim with respect to such account.

     

    "Eligible
      Institution"
      means
      (a) the corporate trust department of the Subordination Agent or any Trustee,
      as
      applicable, or (b) a depository institution organized under the laws of the
      United States of America or any one of the states thereof or the District of
      Columbia (or any U.S. branch of a foreign bank), which has a long-term unsecured
      debt rating of at least A3 from Moody’s and a long-term unsecured issuer credit
      rating of at least A- from Standard & Poor’s.

     

    "Eligible
      Investments"
      means
      (a) investments in obligations of, or guaranteed by, the United States
      Government having maturities no later than 90 days following the date of such
      investment, (b) investments in open market commercial paper of any corporation
      incorporated under the laws of the United States of America or any state thereof
      with a short-term unsecured debt rating issued by Moody's of at least P-1 and
      a
      short-term issuer credit rating issued by Standard & Poor's of at least A-1
      having maturities no later than 90 days following the date of such investment
      or
      (c) investments in negotiable certificates of deposit, time deposits, banker's
      acceptances, commercial paper or other direct obligations of, or obligations
      guaranteed by, commercial banks organized under the laws of the United States
      or
      of any political subdivision thereof (or any U.S. branch of a foreign bank)
      with
      a short-term unsecured debt rating by Moody's of at least P-1 and a short-term
      issuer credit rating by Standard & Poor's of at least A-1, having maturities
      no later than 90 days following the date of such investment; provided,
      however,
      that
      (x) all Eligible Investments that are bank obligations shall be denominated
      in
      U.S. dollars; and (y) the aggregate amount of Eligible Investments at any one
      time that are bank obligations issued by any one bank shall not be in excess
      of
      5% of such bank's capital surplus; provided further
      that any
      investment of the types described in clauses (a), (b) and (c) above may be
      made
      through a repurchase agreement in commercially reasonable form with a bank
      or
      other financial institution qualifying as an Eligible Institution so long as
      such investment is held by a third party custodian also qualifying as an
      Eligible Institution; provided further,
      however,
      that in
      the case of any Eligible Investment issued by a domestic branch of a foreign
      bank, the income from such investment shall be from sources within the United
      States for purposes of the Code. Notwithstanding the foregoing, no investment
      of
      the types described in clause (b) above which is issued or guaranteed by
      Continental or any of its Affiliates, and no investment in the obligations
      of
      any one bank in excess of $10,000,000, shall be an Eligible Investment unless
      written approval has been obtained from the Policy Provider and a Ratings
      Confirmation shall have been received with respect to the making of such
      investment.

     

    "Equipment
      Notes"
      means,
      at any time, the Series G Equipment Note and the Series B Equipment Note,
      collectively, and in each case, any Equipment Notes issued in exchange therefor
      or replacement thereof pursuant to the terms of the Indenture.

     

    
      
         

      

      
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    "Excess
      Reimbursement Obligations"
      means
      (a) in the event of any Policy Provider Election, the portion of the Policy
      Provider Obligations that represents, when added to that portion of any
      Liquidity Obligations that represents, interest on the Series G Equipment Note,
      in excess of 24 months of interest at the interest rate applicable to such
      Equipment Note, (b) any interest on the Liquidity Obligations in respect of
      the
      Primary Liquidity Facility paid by the Policy Provider to the Primary Liquidity
      Provider from and after the end of the 24-month period referred to in Section
      3.6(c) hereof and (c) interest on Policy Drawings as set forth in the Policy
      Provider Agreement (other than any such interest that constitutes a Policy
      Provider Obligation).

     

    "Expected
      Distributions"
      means,
      with respect to the Certificates of any Trust on any Current Distribution Date,
      the sum of (x) accrued and unpaid interest on the outstanding Pool Balance
      of
      such Certificates and (y) the difference between (A) the Pool Balance of such
      Certificates as of the immediately preceding Distribution Date (or, if the
      Current Distribution Date is the first Distribution Date, the Pool Balance
      as of
      the Closing Date) and (B) the Pool Balance of such Certificates as of the
      Current Distribution Date calculated on the basis that (i) the principal of
      any Performing Equipment Note held in such Trust has been paid when due (whether
      at stated maturity, upon redemption, prepayment, purchase, Acceleration or
      otherwise) and such payments have been distributed to the holders of such
      Certificates, (ii) the principal of any Non-Performing Equipment Note held
      in such Trust has been paid in full and such payments have been distributed
      to
      the holders of such Certificates and (iii) the principal of any Equipment Note
      formerly held in such Trust that has been sold pursuant to the terms hereof
      has
      been paid in full and such payments have been distributed to the holders of
      such
      Certificates. For purposes of calculating Expected Distributions with respect
      to
      the Certificates of any Trust, any Premium paid on the Equipment Notes held
      in
      such Trust which has not been distributed to the Certificateholders of such
      Trust (other than such Premium or a portion thereof applied to the payment
      of
      interest on the Certificates of such Trust or the reduction of the Pool Balance
      of such Trust) shall be added to the amount of such Expected Distributions.
      For
      the purposes of the application of any Special Payment in accordance with
      Section 3.2 hereof, clause (x) of this definition shall be deemed to read as
      follows: “(x) accrued, due and unpaid interest on the outstanding Pool Balance
      of such Certificates together with (without duplication) accrued and unpaid
      interest on a portion of the outstanding Pool Balance of such Certificates
      equal
      to the outstanding principal amount of the Equipment Notes held in such Trust
      and being redeemed, purchased or prepaid (immediately prior to such redemption,
      purchase or prepayment).”

     

    "Expiry
      Date"
      has the
      meaning set forth in the Primary Liquidity Facility.

     

    "Fair
      Market Value"
      has the
      meaning specified in the Indenture.

     

    "Fee
      Letters"
      means,
      collectively, (i) the Fee Letter dated as of the date hereof between the
      Subordination Agent and the initial Primary Liquidity Provider with respect
      to
      the initial Primary Liquidity Facility and (ii) any fee letter entered into
      between the Subordination Agent and any Replacement Primary Liquidity Provider
      in respect of any Replacement Primary Liquidity Facility.

     

    "Final
      Distributions"
      means,
      with respect to the Certificates of any Trust on any Distribution Date, the
      sum
      of (x) the aggregate amount of all accrued and unpaid interest on such

    
      
         

      

      
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    Certificates
      and (y) the Pool Balance of such Certificates as of the immediately preceding
      Distribution Date. For purposes of calculating Final Distributions with respect
      to the Certificates of any Trust, any Premium paid on the Equipment Notes held
      in such Trust which has not been distributed to the Certificateholders of such
      Trust (other than such Premium or a portion thereof applied to the payment
      of
      interest on the Certificates of such Trust or the reduction of the Pool Balance
      of such Trust) shall be added to the amount of such Final
      Distributions.

     

     

    "Final
      Drawing"
      has the
      meaning assigned to such term in Section 3.5(i).

     

    "Final
      Legal Distribution Date"
      means,
      (i) with respect to the Class G Certificates, June 2, 2015, and (ii) with
      respect to the Class B Certificates, June 2, 2013.

     

    "Fiscal
      Agent"
      has the
      meaning assigned to such term in the Policy.

     

    "Indenture"
      means
      the Trust Indenture and Mortgage entered into by the Mortgagee and Continental,
      pursuant to the Note Purchase Agreement, as the same may be amended,
      supplemented or otherwise modified from time to time in accordance with its
      terms.

     

    "Indenture
      Default"
      means
      an Event of Default (as such term is defined in the Indenture) under the
      Indenture.

     

    "Interest
      Drawing"
      has the
      meaning specified in Section 3.5(a).

     

    "Interest
      Payment Date"
      means
      each date on which interest is due and payable under the Primary Liquidity
      Facility on a Downgrade Drawing, Non-Extension Drawing or Final Drawing
      thereunder, other than any such date on which interest is due and payable under
      the Primary Liquidity Facility only on an Applied Provider Advance (as such
      term
      is defined in the Primary Liquidity Facility).

     

    "Interest
      Period"
      has the
      meaning specified in the Indenture.

     

    "Investment
      Earnings"
      means
      investment earnings on funds on deposit in the Trust Accounts net of losses
      and
      investment expenses of the Subordination Agent in making such
      investments.

     

    "Lending
      Office"
      has the
      meaning set forth in the Primary Liquidity Facility.

     

    "LIBOR"
      has the
      meaning specified in the Reference Agency Agreement.

     

    "Lien"
      means
      any mortgage, pledge, lien, charge, claim, disposition of title, encumbrance,
      lease, sublease, sub-sublease or security interest of any kind, including,
      without limitation, any thereof arising under any conditional sales or other
      title retention agreement.

     

    "Liquidity
      Event of Default"
      has the
      meaning assigned to such term in the Primary Liquidity Facility.

     

    
      
         

      

      
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    "Liquidity
      Expenses"
      means
      all Liquidity Obligations other than (i) the principal amount of any Drawings
      under the Primary Liquidity Facility and (ii) any interest accrued on any
      Liquidity Obligations.

     

    "Liquidity
      Facility"
      means,
      at any time, the Primary Liquidity Facility or the Above-Cap Liquidity Facility,
      as applicable.

     

    “Liquidity
      Guarantee”
means
      the Guarantee Agreement, dated as of the date hereof, providing for the
      guarantee by the Liquidity Guarantor of the obligations of the Above-Cap
      Liquidity Provider under the Above-Cap Liquidity Facility.

     

    “Liquidity
      Guarantor”
means
      Morgan Stanley, a Delaware corporation, as guarantor of the Above-Cap Liquidity
      Facility.

     

    "Liquidity
      Obligations"
      means
      all principal, interest, fees and other amounts owing to the Primary Liquidity
      Provider under the Primary Liquidity Facility, Section 8.1 of the Note Purchase
      Agreement or the Fee Letters.

     

    "Liquidity
      Provider"
      means,
      at any time, the Primary Liquidity Provider or Above-Cap Liquidity Provider,
      as
      applicable.

     

    "Liquidity
      Provider Reimbursement Date"
      has the
      meaning specified in Section 3.6(d).

     

    "Mandatory
      Termination Event"
      has the
      meaning specified in Section 3.5(c)(iv).

    

    "Minimum
      Sale Price"
      means,
      with respect to (a) any Pledged Spare Parts proposed to be sold, 75% of the
      aggregate Current Fair Market Value of such Pledged Spare Parts and (b) the
      Equipment Notes, the lesser of (i) 75% of the Current Fair Market Value of
      all
      Pledged Spare Parts then subject to the Lien of the Indenture and (ii) the
      aggregate outstanding principal amount of the Equipment Notes, plus accrued
      and
      unpaid interest thereon.

     

    "Moody's"
      means
      Moody's Investors Service, Inc.

     

    "Mortgagee"
      has the
      meaning specified in the Indenture.

     

    "Non-Controlling
      Party"
      means,
      at any time, any Trustee, Liquidity Provider or Policy Provider which is not
      the
      Controlling Party at such time.

     

    "Non-Extended
      Facility"
      has the
      meaning specified in Section 3.5(d).

     

    "Non-Extension
      Drawing"
      has the
      meaning specified in Section 3.5(d).

     

    "Non-Performing
      Equipment Note"
      means
      an Equipment Note that is not a Performing Equipment Note.

     

    "Note
      Holder"
      has the
      meaning specified in the Indenture.

     

    
      
         

      

      
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    "Note
      Purchase Agreement"
      means
      the Note Purchase Agreement, dated as of the date hereof, among Continental,
      each Trustee, the Subordination Agent and the Mortgagee, as amended,
      supplemented or otherwise modified from time to time in accordance with its
      terms.

     

    "Notice
      of Avoided Payment"
      has the
      meaning assigned to such term in the Policy.

     

    "Notice
      for Payment"
      means a
      Notice of Nonpayment as such term is defined in the Policy.

     

    "Officer's
      Certificate"
      of any
      Person means a certification signed by a Responsible Officer of such
      Person.

     

    "Operative
      Agreements"
      means
      this Agreement, the Liquidity Facilities, the Liquidity Guarantee, the Policy,
      the Policy Provider Agreement, the Policy Fee Letter, the Indenture, the
      Collateral Maintenance Agreement, the Trust Agreements, the Underwriting
      Agreement, the Fee Letters, the Reference Agency Agreement, the Note Purchase
      Agreement, the Equipment Notes and the Certificates, together with all exhibits
      and schedules included with any of the foregoing.

     

    "Order"
      has the
      meaning assigned to such term in the Policy.

     

    "Outstanding"
      means,
      when used with respect to each Class of Certificates, as of the date of
      determination, all Certificates of such Class theretofore authenticated and
      delivered under the related Trust Agreement, except:

     

    (i) Certificates
      of such Class theretofore canceled by the Registrar (as defined in such Trust
      Agreement) or delivered to the Trustee thereunder or such Registrar for
      cancellation;

     

    (ii) Certificates
      of such Class for which money in the full amount required to make the Final
      Distributions with respect to such Certificates pursuant to Section 11.01 of
      such Trust Agreement has been theretofore deposited with the related Trustee
      in
      trust for the holders of such Certificates as provided in Section 4.01 of such
      Trust Agreement pending distribution of such money to such Certificateholders
      pursuant to such Final Distributions payment; and

     

    (iii) Certificates
      of such Class in exchange for or in lieu of which other Certificates have been
      authenticated and delivered pursuant to such Trust Agreement;

     

    provided,
      however,
      that in
      determining whether the holders of the requisite Outstanding amount of such
      Certificates have given any request, demand, authorization, direction, notice,
      consent or waiver hereunder, any Certificates owned by Continental or any of
      its
      Affiliates shall be disregarded and deemed not to be Outstanding, except that,
      in determining whether such Trustee shall be protected in relying upon any
      such
      request, demand, authorization, direction, notice, consent or waiver, only
      Certificates that such Trustee knows to be so owned shall be so disregarded.
      Certificates so owned that have been pledged in good faith may be regarded
      as
      Outstanding if the pledgee establishes to the satisfaction of the applicable
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    right
      so
      to act with respect to such Certificates and that the pledgee is not Continental
      or any of its Affiliates.

     

    "Overdue
      Scheduled Payment"
      means
      any Scheduled Payment which is not in fact received by the Subordination Agent
      within five days after the Scheduled Payment Date relating thereto.

     

    "Payee"
      has the
      meaning specified in Section 2.4(c).

     

    "Payment
      Default"
      has the
      meaning specified in the Indenture.

     

    "Performing
      Equipment Note"
      means
      an Equipment Note with respect to which no Payment Default has occurred and
      is
      continuing (without giving effect to any Acceleration); provided
      that in
      the event of a bankruptcy proceeding under the Bankruptcy Code in which
      Continental is a debtor any Payment Default existing during the 60-day period
      under Section 1110(a)(2)(A) of the Bankruptcy Code (or such longer period as
      may
      apply under Section 1110(b) of the Bankruptcy Code or as may apply for the
      cure
      of such Payment Default under Section 1110(a)(2)(B) of the Bankruptcy Code)
      shall not be taken into consideration until the expiration of the applicable
      period.

     

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

     

    "Pledged
      Spare Parts"
      has the
      meaning assigned to such term in the Indenture.

     

    "Policy"
      means
      Financial Guaranty Insurance Company Policy No. 06030067 issued as of the
      Closing Date with respect to the Class G Certificates, as amended, supplemented
      or otherwise modified from time to time in accordance with its
      terms.

     

    "Policy
      Account"
      means
      the Eligible Deposit Account established by the Subordination Agent pursuant
      to
      Section 2.2(a)(iv) which the Subordination Agent shall make deposits in and
      withdrawals from in accordance with this Agreement.

     

    "Policy
      Drawing"
      means
      any payment of a claim under the Policy.

     

    "Policy
      Expenses"
      means
      all amounts (including amounts in respect of premiums, fees, expenses or
      indemnities) due to the Policy Provider under the Policy Provider Agreement
      or
      the Note Purchase Agreement other than (i) any amounts due under the Policy
      Fee
      Letter, (ii) the amount of any Excess Reimbursement Obligations, (iii) any
      Policy Drawing, (iv) any interest accrued on any Policy Provider Obligations,
      (v) any amounts that the Policy Provider is entitled to receive by virtue of
      the
      subrogation rights of the Policy Provider hereunder and (vi) reimbursement
      of
      and interest on the Liquidity Obligations in respect of the Primary Liquidity
      Facility paid by the Policy Provider to the Primary Liquidity Provider; provided
      that if, at the time of determination, a Policy Provider Default exists, Policy
      Expenses shall not include any indemnity payments owed to the Policy
      Provider.

     

    
      
         

      

      
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    "Policy
      Fee Letter"
      means
      the fee letter, dated as of the date hereof, from the Policy Provider to
      Continental and acknowledged by the Subordination Agent, setting forth the
      fees
      and premiums payable with respect to the Policy.

    

    "Policy
      Provider"
      means
      Financial Guaranty Insurance Company, a New York stock insurance company, and
      its successors and permitted assigns.

     

    "Policy
      Provider Agreement"
      means
      the Insurance and Indemnity Agreement dated as of the date hereof among the
      Subordination Agent, as agent and trustee for the Class G Trustee, Continental
      and the Policy Provider, as amended, supplemented or otherwise modified from
      time to time in accordance with its terms.

     

    "Policy
      Provider Amounts"
      means
      all Policy Provider Obligations, Policy Expenses, amounts due under the Policy
      Fee Letter (excluding any Early Termination Fee and without duplication of
      any
      Policy Provider Obligations or Policy Expenses) and Excess Reimbursement
      Obligations.

     

    "Policy
      Provider Default"
      means
      the occurrence of any of the following events: (a) the Policy Provider
      fails to make a payment required under the Policy in accordance with its terms
      and such failure remains unremedied for two Business Days following the delivery
      of Written Notice of such failure to the Policy Provider or (b) the Policy
      Provider (i) files any petition or commences any case or proceeding under any
      provisions of any federal or state law relating to insolvency, bankruptcy,
      rehabilitation, liquidation or reorganization, (ii) makes a general assignment
      for the benefit of its creditors or (iii) has an order for relief entered
      against it under any federal or state law relating to insolvency, bankruptcy,
      rehabilitation, liquidation or reorganization that is final and nonappealable,
      or (c) a court of competent jurisdiction, the New York Insurance Department
      or
      another competent regulatory authority enters a final and nonappealable order,
      judgment or decree (i) appointing a custodian, trustee, agent or receiver
      for the Policy Provider or for all or any material portion of its property
      or
      (ii) authorizing the taking of possession by a custodian, trustee, agent or
      receiver of the Policy Provider (or taking of possession of all or any material
      portion of the Policy Provider's property).

     

    "Policy
      Provider Documents"
      means
      the Policy, the Policy Provider Agreement and the Policy Fee
      Letter.

     

    "Policy
      Provider Election"
      has the
      meaning specified in Section 3.6(c).

     

    “Policy
      Provider Interest Obligations”
means
      any interest on any Policy Drawing made to cover any shortfall attributable
      to
      any failure of the Primary Liquidity Provider to honor any Interest Drawing
      in
      accordance with Section 2.02(e) of the Primary Liquidity Facility in an amount
      equal to the amount of interest that would have accrued on such Interest Drawing
      if such Interest Drawing had been made in accordance with Section 2.02(e) of
      the
      Primary Liquidity Facility at the interest rate applicable to such Interest
      Drawing until such Policy Drawing has been repaid in full.

     

    "Policy
      Provider Obligations"
      means
      all reimbursement and other amounts, including, without limitation, fees and
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    Expenses),
      due to the Policy Provider under the Policy Provider Agreement but shall not
      include (i) amounts under the Policy Fee Letter and (ii) any interest on Policy
      Drawings other than Policy Provider Interest Obligations.

     

    "Pool
      Balance"
      means,
      with respect to each Trust or the Certificates issued by any Trust, as of any
      date, (i) the original aggregate face amount of the Certificates of such Trust
      less
      (ii) the
      aggregate amount of all payments made as of such date in respect of the
      Certificates of such Trust other than payments made in respect of interest
      or
      Premium thereon or reimbursement of any costs and expenses in connection
      therewith. The Pool Balance for each Trust or for the Certificates issued by
      any
      Trust as of any date shall be computed after giving effect to any payment of
      principal of the Equipment Notes, payments under the Policy, if any, for such
      Trust (other than in respect of interest on the Certificates) or payment with
      respect to other Trust Property held in such Trust and the distribution thereof
      to be made on that date.

     

    “Premium”
means
      any “Premium” or any “Break Amount”, as such terms are defined in the
      Indenture.

     

    "Primary
      Cash Collateral Account"
      means
      an Eligible Deposit Account in the name of the Subordination Agent maintained
      at
      an Eligible Institution, which shall be the Subordination Agent if it shall
      so
      qualify, into which all amounts drawn under the Primary Liquidity Facility
      pursuant to Section 3.5(c), 3.5(d) or 3.5(i) shall be deposited.

     

    "Primary
      Liquidity Facility"
      means,
      initially, the Revolving Credit Agreement, dated as of the date hereof, between
      the Subordination Agent, as agent and trustee for the Class G Trust, and the
      initial Primary Liquidity Provider, and from and after the replacement of the
      Revolving Credit Agreement pursuant hereto, the Replacement Primary Liquidity
      Facility therefor, if any, in each case as amended, supplemented or otherwise
      modified from time to time in accordance with its terms.

     

    "Primary
      Liquidity Provider"
      means
      Morgan Stanley Bank, together with any Replacement Primary Liquidity Provider
      which has issued a Replacement Primary Liquidity Facility to replace the Primary
      Liquidity Facility pursuant to Section 3.5(e).

     

    "Prior
      Funds"
      means,
      on any Distribution Date, any Drawing paid under the Primary Liquidity Facility
      in respect of interest due on the Class G Certificates on such Distribution
      Date
      and any funds withdrawn from the Primary Cash Collateral Account or from the
      Above-Cap Account on such Distribution Date in respect of such
      interest.

     

    "Proceeding"
      means
      any suit in equity, action at law or other judicial or administrative
      proceeding.

    

    "Provider
      Incumbency Certificate"
      has the
      meaning specified in Section 2.5(c).

     

    "Provider
      Representatives"
      has the
      meaning specified in Section 2.5(c).

     

    "PTC
      Event of Default"
      means,
      with respect to each Trust Agreement, the failure to pay within 10 Business
      Days
      of the due date thereof: (i) the outstanding Pool Balance of the applicable
      Class of Certificates on the Final Legal Distribution Date for such Class
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    case
      of
      the Class G Trust Agreement, the Subordination Agent shall have made a drawing
      under the Policy with respect thereto in an amount sufficient to pay such
      outstanding Pool Balance and shall have distributed such amount to the Trustee
      entitled thereto) or (ii) interest due on such Certificates on any Distribution
      Date (unless, in the case of the Class G Trust, the Subordination Agent shall
      have made an Interest Drawing, a withdrawal from the Primary Cash Collateral
      Account, a withdrawal from the Above-Cap Account or a drawing under the Policy
      with respect thereto in an aggregate amount sufficient to pay such interest
      and
      shall have distributed such amount to the Class G Trustee).

     

    "Rating
      Agencies"
      means,
      collectively, at any time, and with respect to a Class of Certificates, each
      nationally recognized rating agency which shall have been requested by
      Continental to rate such Class of Certificates and which shall then be rating
      such Class of Certificates. The initial Rating Agencies for each Class of
      Certificates will be Moody's and Standard & Poor's.

     

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

     

    "Redemption
      Notice"
      means a
      notice of redemption issued by Continental pursuant to Section 2.12 of the
      Indenture.

     

    "Reference
      Agency Agreement"
      means
      the Reference Agency Agreement, dated as of the date hereof, among Continental,
      WTC, as the reference agent thereunder, and the Subordination
      Agent.

     

    "Regular
      Distribution Dates"
      means
      each March 2, June 2, September 2 and December 2, commencing on September 2,
      2006; provided,
      however,
      that,
      if any such day shall not be a Business Day, the related distribution shall
      be
      made on the next succeeding Business Day, with additional interest for such
      additional period.

     

    "Replacement
      Above-Cap Liquidity Facility"
      means
      an irrevocable interest rate cap agreement (or agreements) for the same term
      as
      the Above-Cap Liquidity Facility being replaced, in substantially the form
      of
      the Above-Cap Liquidity Facility being replaced or in such other form (which
      may
      include a letter of credit) as shall permit the Rating Agencies to confirm
      in
      writing their respective ratings then in effect for the Class G Certificates
      (before the downgrading of such ratings, if any, as a result of the downgrading
      of the Above-Cap Liquidity Provider and without regard to the Policy), and
      be
      consented to by the Policy Provider, which consent shall not be unreasonably
      withheld or delayed, issued by a Person (or Person(s)) having a short-term
      unsecured debt rating issued by Moody's and a short-term issuer credit rating
      issued by Standard & Poor's that are equal to or higher than the applicable
      Threshold Rating.

     

    "Replacement
      Above-Cap Liquidity Provider"
      means a
      Person (or Persons) who issues a Replacement Above-Cap Liquidity
      Facility.

    

    
      
         

      

      
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    "Replacement
      Liquidity Facility"
      means
      any of a Replacement Above-Cap Liquidity Facility or a Replacement Primary
      Liquidity Facility.

     

    "Replacement
      Primary Liquidity Facility"
      means
      an irrevocable revolving credit agreement (or agreements) in substantially
      the
      form of the replaced Primary Liquidity Facility, including reinstatement
      provisions, or in such other form (which may include a letter of credit) as
      shall permit the Rating Agencies to confirm in writing their respective ratings
      then in effect for the Class G Certificates (before downgrading of such ratings,
      if any, as a result of the downgrading of the Primary Liquidity Provider but
      without regard to the Policy), and be consented to by the Policy Provider,
      which
      consent shall not be unreasonably withheld or delayed, in a face amount (or
      in
      an aggregate face amount) equal to the amount of interest payable on the Class
      G
      Certificates (at the Capped Interest Rate, and without regard to expected future
      principal payments) on the eight Regular Distribution Dates following the date
      of replacement of the Primary Liquidity Facility and issued by a Person (or
      Persons) having unsecured short-term debt rating or issuer credit rating, as
      the
      case may be, issued by both Rating Agencies which are equal to or higher than
      the Threshold Rating. Without limitation of the form that a Replacement Primary
      Liquidity Facility otherwise may have pursuant to the preceding sentence, a
      Replacement Primary Liquidity Facility may have a stated expiration date earlier
      than 15 days after the Final Legal Distribution Date of the Class G Certificates
      so long as such Replacement Primary Liquidity Facility provides for a
      Non-Extension Drawing as contemplated by Section 3.5(d) hereof.

     

    "Replacement
      Primary Liquidity Provider"
      means a
      Person (or Persons) who issues a Replacement Primary Liquidity
      Facility.

     

    "Required
      Amount"
      means
      with respect to the Primary Liquidity Facility or the Primary Cash Collateral
      Account, for any day, the sum of the aggregate amount of interest, calculated
      at
      the rate per annum equal to the Capped Interest Rate, that would be payable
      on
      the Class G Certificates on each of the eight successive Regular Distribution
      Dates immediately following such day or, if such day is a Regular Distribution
      Date, on such day and the succeeding seven Regular Distribution Dates, in each
      case calculated on the basis of the Pool Balance of the Class G Certificates
      on
      such date and without regard to expected future payments of principal on the
      Class G Certificates. The Pool Balance solely for purposes of the definition
      of
      Required Amount with respect to the Primary Liquidity Facility shall, in the
      event of any Policy Provider Election, be deemed to be reduced to
      zero.

     

    "Responsible
      Officer"
      means
      (i) with respect to the Subordination Agent and each of the Trustees, any
      officer in the corporate trust administration department of the Subordination
      Agent or such Trustee or any other officer customarily performing functions
      similar to those performed by the Persons who at the time shall be such
      officers, respectively, or to whom any corporate trust matter is referred
      because of his knowledge of and familiarity with a particular subject, (ii)
      with
      respect to each Liquidity Provider, any authorized officer of such Liquidity
      Provider, and (iii) with respect to the Policy Provider, any authorized officer
      of the Policy Provider.

     

    
      
         

      

      
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    "Scheduled
      Payment"
      means,
      with respect to any Equipment Note, (i) any payment of principal or interest
      on
      such Equipment Note (other than an Overdue Scheduled Payment) due from the
      obligor thereon, which payment represents the installment of principal scheduled
      to be paid pursuant to the Indenture (without giving effect to Acceleration)
      on
      such Equipment Note (including after giving effect to any change in the amount
      of such installment due to an optional redemption pursuant to the Indenture),
      the payment of regularly scheduled interest accrued on the unpaid principal
      amount of such Equipment Note, or both, (ii) any payment of interest on the
      Class G Certificates with funds drawn under the Primary Liquidity Facility
      (or
      the Primary Cash Collateral Account) or withdrawn from the Above-Cap Account
      or
      (iii) any payment of interest on or principal of the Class G Certificates with
      funds drawn under the Policy, which payment in any such case represents the
      installment of principal scheduled to be paid pursuant to the Indenture (without
      giving effect to Acceleration) on such Equipment Note (including after giving
      effect to any change in the amount of such installment due to an optional
      redemption pursuant to the Indenture), the payment of regularly scheduled
      interest accrued on the unpaid principal amount of such Equipment Note, or
      both;
provided
      that any
      payment of principal, Premium, if any, or interest resulting from the redemption
      or purchase of any Equipment Note shall not constitute a Scheduled
      Payment.

     

    "Scheduled
      Payment Date"
      means,
      with respect to any Scheduled Payment, the date on which such Scheduled Payment
      is scheduled to be made.

     

    "Series
      B Equipment Note"
      means
      the Series B Equipment Note issued pursuant to the Indenture by Continental
      and
      authenticated by the Mortgagee thereunder, and any such Equipment Note issued
      in
      exchange therefor or replacement thereof pursuant to the terms of the
      Indenture.

     

    "Series
      G Equipment Note"
      means
      the Series G Equipment Note issued pursuant to the Indenture by Continental
      and
      authenticated by the Mortgagee thereunder, and any such Equipment Note issued
      in
      exchange therefor or replacement thereof pursuant to the terms of the
      Indenture.

     

    "Special
      Distribution Date"
      means,
      with respect to any Special Payment, (i) the date chosen by the Subordination
      Agent pursuant to Section 2.4(a) for the distribution of such Special Payment
      in
      accordance with this Agreement or (ii) the date chosen by the Subordination
      Agent pursuant to Section 3.6(b), 3.6(c) or Section 3.6(f), as the
      case may be, for the distribution of such Special Payment in accordance with
      the
      provisions thereof or otherwise designated as a Special Distribution
      Date.

     

    "Special
      Distribution Withdrawal"
      has the
      meaning specified in Section 3.5(f) hereof.

     

    "Special
      Payment"
      means
      any payment (other than a Scheduled Payment) in respect of, or any proceeds
      of,
      any Equipment Note or Collateral.

     

    "Special
      Payments Account"
      means
      the Eligible Deposit Account created pursuant to Section 2.2(a)(ii) as a
      sub-account to the Collection Account.

     

    "Special
      Termination"
      has the
      meaning specified in Section 3.5(n).

     

    
      
         

      

      
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    "Standard
      & Poor's"
      means
      Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
      Inc.

     

    "Stated
      Amount"
      means
      the Maximum Commitment (as defined in the Primary Liquidity Facility) of the
      Primary Liquidity Provider.

     

    "Stated
      Expiration Date"
      has the
      meaning specified in Section 3.5(d).

     

    "Stated
      Interest Rate"
      means
      (i) with respect to the Class G Certificates, in the case of the first Interest
      Period, 5.6325% per annum and, in the case of any subsequent Interest Period,
      LIBOR for such Interest Period plus 0.35% per annum, and (ii) with respect
      to
      the Class B Certificates, in the case of the first Interest Period, 8.4075%
      per
      annum and, in the case of any subsequent Interest Period, LIBOR for such
      Interest Period plus 3.125% per annum; provided that if a Payment Default has
      occurred and is continuing on any Regular Distribution Date, the Stated Interest
      Rate for the Class G Certificates for the Interest Period commencing on such
      Regular Distribution Date shall not exceed the Capped Interest
      Rate.

     

    "Subordination
      Agent"
      has the
      meaning assigned to it in the preliminary statements to this
      Agreement.

     

    "Subordination
      Agent Incumbency Certificate"
      has the
      meaning specified in Section 2.5(a).

     

    "Subordination
      Agent Representatives"
      has the
      meaning specified in Section 2.5(a).

     

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

     

    "Termination
      Amount"
      has the
      meaning assigned to such term in the Above-Cap Liquidity Facility.

     

    "Termination
      Event"
      has the
      meaning assigned to such term in the Above-Cap Liquidity Facility.

     

    "Termination
      Notice"
      has the
      meaning assigned to such term in the Primary Liquidity Facility.

     

    
      
         

      

      
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    "Threshold
      Rating"
      means
      the short-term unsecured debt rating of P-1 by Moody's and the short-term issuer
      credit rating of A-1 by Standard & Poor's.

     

    "Treasury
      Regulations"
      means
      regulations, including proposed or temporary regulations, promulgated under
      the
      Code. References herein to specific provisions of proposed or temporary
      regulations shall include analogous provisions of final Treasury Regulations
      or
      other successor Treasury Regulations.

     

    "Triggering
      Event"
      means
      (x) the occurrence of an Indenture Default resulting in a PTC Event of Default
      with respect to the most senior Class of Certificates then Outstanding, (y)
      the
      Acceleration of all of the outstanding Equipment Notes or (z) the occurrence
      of
      a Continental Bankruptcy Event.

     

    "Trust"
      means
      any of the Class G Trust or the Class B Trust.

     

    "Trust
      Accounts"
      has the
      meaning specified in Section 2.2(a).

     

    "Trust
      Agreement"
      means
      any of the Class G Trust Agreement or the Class B Trust Agreement.

     

    "Trust
      Property"
      with
      respect to any Trust, has the meaning set forth in the Trust Agreement for
      such
      Trust.

     

    "Trust
      Supplement"
      means
      any of the Class G Trust Supplement or the Class B Trust
      Supplement.

     

    "Trustee"
      means
      any of the Class G Trustee or the Class B Trustee.

     

    "Trustee
      Incumbency Certificate"
      has the
      meaning specified in Section 2.5(b).

     

    "Trustee
      Representatives"
      has the
      meaning specified in Section 2.5(b).

     

    "Unapplied
      Provider Advance"
      has the
      meaning specified in the Primary Liquidity Facility.

     

    "Underwriter"
      means
      Morgan Stanley & Co. Incorporated.

     

    "Underwriting
      Agreement"
      means
      the Underwriting Agreement dated May 24, 2006 between the Underwriter and
      Continental, relating to the purchase of the Class G Certificates and the Class
      B Certificates by the Underwriter, as the same may be amended, supplemented
      or
      otherwise modified from time to time in accordance with its terms.

     

    "Withdrawal
      Notice"
      has the
      meaning specified in Section 3.5(d).

     

    "Written
      Notice"
      means,
      from the Subordination Agent, any Trustee, any Liquidity Provider or the Policy
      Provider, a written instrument executed by the Designated Representative of
      such
      Person. An invoice delivered by the Primary Liquidity Provider pursuant

     

    
      
         

      

      
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    to
      Section 3.1 in accordance with its normal invoicing procedures shall constitute
      Written Notice under such Section.

     

    "WTC"
      has the
      meaning assigned to such term in the recital of parties to this
      Agreement.

     

     

    ARTICLE
      II

     

    TRUST
      ACCOUNTS; CONTROLLING PARTY

     

    SECTION
      2.1. Agreement
      to Terms of Subordination; Payments from Monies Received Only.
      (a)
      Each Trustee hereby acknowledges and agrees to the terms of subordination and
      distribution set forth in this Agreement in respect of each Class of
      Certificates and agrees to enforce such provisions and cause all payments in
      respect of the Equipment Notes, the Liquidity Facilities and the Policy to
      be
      applied in accordance with the terms of this Agreement. In addition, each
      Trustee hereby agrees to cause the Equipment Notes purchased by the related
      Trust to be registered in the name of the Subordination Agent or its nominee,
      as
      agent and trustee for such Trustee, to be held in trust by the Subordination
      Agent solely for the purpose of facilitating the enforcement of the
      subordination and other provisions of this Agreement.

     

    (b) Except
      as
      otherwise expressly provided in the next succeeding sentence of this Section
      2.1, all payments to be made by the Subordination Agent hereunder shall be
      made
      only from amounts received by it that constitute Scheduled Payments, Special
      Payments or payments under Section 8.1 of the Note Purchase Agreement, and
      only
      to the extent that the Subordination Agent shall have received sufficient income
      or proceeds therefrom to enable it to make such payments in accordance with
      the
      terms hereof. Each of the Trustees and the Subordination Agent hereby agrees
      and, as provided in each Trust Agreement, each Certificateholder, by its
      acceptance of a Certificate, the Primary Liquidity Provider, by entering into
      the Primary Liquidity Facility, and the Policy Provider, by entering into the
      Policy Provider Agreement, has agreed to look solely to such amounts to the
      extent available for distribution to it as provided in this Agreement and that
      none of the Trustees, Mortgagee nor the Subordination Agent is personally liable
      to any of them for any amounts payable or any liability under this Agreement,
      any Trust Agreement, any Liquidity Facility, the Policy Provider Agreement,
      the
      Policy or such Certificate, except (in the case of the Subordination Agent)
      as
      expressly provided herein or (in the case of the Trustees) as expressly provided
      in each Trust Agreement or (in the case of the Mortgagee) as expressly provided
      in any Operative Agreement.

     

    SECTION
      2.2. Trust
      Accounts.
      (a)
      Upon the execution of this Agreement, the Subordination Agent shall establish
      and maintain in its name (i) the Collection Account as an Eligible Deposit
      Account, bearing a designation clearly indicating that the funds deposited
      therein are held in trust for the benefit of the Trustees, the
      Certificateholders, the Primary Liquidity Provider and the Policy Provider,
      (ii) as a sub-account in the Collection Account, the Special Payments
      Account as an Eligible Deposit Account, bearing a designation clearly indicating
      that the funds deposited therein are held in trust for the benefit of the
      Trustees, the Certificateholders, the Primary Liquidity Provider and the Policy
      Provider, (iii) an Above-Cap Account, as an Eligible Deposit Account, bearing
      a
      designation clearly indicating that the funds 

     

    
      
         

      

      
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    deposited
      therein are held in trust for the benefit of the Class G Trustee and Class
      G
      Certificateholders and (iv) a Policy Account, as an Eligible Deposit Account,
      bearing a designation clearly indicating that the funds deposited therein are
      held in trust for the benefit of the Class G Trustee and the Class G
      Certificateholders. The Subordination Agent shall establish and maintain the
      Cash Collateral Accounts pursuant to and under the circumstances set forth
      in
      Section 3.5(f) hereof. The Above-Cap Collateral Account shall bear a designation
      clearly indicating that the funds deposited therein are held in trust for the
      benefit of the Class G Trustee and Class G Certificateholders. Upon such
      establishment and maintenance under Section 3.5(f) hereof, the Cash Collateral
      Accounts shall, together with the Collection Account, the Above-Cap Account
      and
      the Policy Account, constitute the "Trust
      Accounts"
      hereunder. Without limiting the foregoing, all monies credited to the Trust
      Accounts shall be, and shall remain, the property of the relevant
      Trusts.

     

    (b) Funds
      on
      deposit in the Trust Accounts shall be invested and reinvested by the
      Subordination Agent in Eligible Investments selected by the Subordination Agent
      if such investments are reasonably available and have maturities no later than
      the earlier of (i) 90 days following the date of such investment and (ii) the
      Business Day immediately preceding the Regular Distribution Date or the date
      of
      the related distribution pursuant to Section 2.4 hereof, as the case may be,
      next following the date of such investment (provided
      that the
      Subordination Agent shall invest and reinvest funds on deposit in the Above-Cap
      Account and Above-Cap Collateral Account in the manner specified in Schedule
      2.2(b) attached hereto); provided,
      however,
      that
      following the making of a Downgrade Drawing or a Non-Extension Drawing under
      the
      Primary Liquidity Facility, the Subordination Agent shall invest and reinvest
      such amounts in Eligible Investments at the direction of Continental (or, if
      and
      to the extent so specified to the Subordination Agent by Continental, the
      Primary Liquidity Provider); provided further,
      however,
      that,
      notwithstanding the foregoing proviso, following the making of a Non-Extension
      Drawing under the initial Primary Liquidity Facility, the Subordination Agent
      shall invest and reinvest the amounts in the Primary Cash Collateral Account
      in
      Eligible Investments pursuant to the written instructions of the Primary
      Liquidity Provider funding such Drawing; provided further,
      however,
      that
      upon the occurrence and during the continuation of a Triggering Event, the
      Subordination Agent shall invest and reinvest such amounts in Eligible
      Investments in accordance with the written instructions of the Controlling
      Party. Unless otherwise expressly provided in this Agreement (including, without
      limitation, with respect to Investment Earnings on amounts on deposit in the
      Cash Collateral Accounts and in the Above-Cap Account, in each case pursuant
      to
      Section 3.5(f) hereof), any Investment Earnings shall be deposited in the
      Collection Account when received by the Subordination Agent and shall be applied
      by the Subordination Agent in the same manner as the other amounts on deposit
      in
      the Collection Account are to be applied and any losses shall be charged against
      the principal amount invested, in each case net of the Subordination Agent's
      reasonable fees and expenses in making such investments. The Subordination
      Agent
      shall not be liable for any loss resulting from any investment, reinvestment
      or
      liquidation required to be made under this Agreement other than by reason of
      its
      willful misconduct or gross negligence. Eligible Investments and any other
      investment required to be made hereunder shall be held to their maturities
      except that any such investment may be sold (without regard to its maturity)
      by
      the Subordination Agent without instructions whenever such sale is necessary
      to
      make a distribution required under this Agreement. Uninvested funds held
      hereunder shall not earn or accrue interest.

     

    
      
         

      

      
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    (c) The
      Subordination Agent shall possess all right, title and interest in all funds
      on
      deposit from time to time in the Trust Accounts and in all proceeds thereof
      (including all income thereon, except as otherwise expressly provided in Section
      3.3(b) with respect to Investment Earnings). The Trust Accounts shall be held
      in
      trust by the Subordination Agent under the sole dominion and control of the
      Subordination Agent for the benefit of the Trustees, the Certificateholders,
      the
      Primary Liquidity Provider and the Policy Provider, as the case may be. If,
      at
      any time, any of the Trust Accounts ceases to be an Eligible Deposit Account,
      the Subordination Agent shall within 10 Business Days (or such longer period,
      not to exceed 30 calendar days, for which a Ratings Confirmation for each Class
      of Certificates and the consent of the Policy Provider (which consent shall
      not
      be unreasonably withheld or delayed) shall have been obtained) establish a
      new
      Collection Account, Special Payments Account, Policy Account, Cash Collateral
      Account or Above-Cap Account, as the case may be, as an Eligible Deposit Account
      and shall transfer any cash and/or any investments to such new Collection
      Account, Special Payments Account, Policy Account, Cash Collateral Account
      or
      Above-Cap Account, as the case may be. So long as WTC is an Eligible
      Institution, the Trust Accounts shall be maintained with it as Eligible Deposit
      Accounts.

     

    SECTION
      2.3. Deposits
      to the Collection Account and Special Payments Account.
      (a) The
      Subordination Agent shall, upon receipt thereof, deposit in the Collection
      Account all Scheduled Payments received by it (other than any Scheduled Payment
      which by the express terms hereof is to be deposited to a Policy Account or
      a
      Cash Collateral Account).

     

    (b) The
      Subordination Agent shall, on each date when one or more Special Payments are
      made to the Subordination Agent as holder of the Equipment Notes, deposit in
      the
      Special Payments Account the aggregate amount of such Special
      Payments.

     

    SECTION
      2.4. Distributions
      of Special Payments.
      (a) Notice
      of Special Payment. 
      Except as provided in Section 2.4(c) below, upon receipt by the
      Subordination Agent, as registered holder of the Equipment Notes, of any notice
      of a Special Payment (or, in the absence of any such notice, upon receipt by
      the
      Subordination Agent of a Special Payment), the Subordination Agent shall
      promptly give notice thereof to each Trustee, the Primary Liquidity Provider
      and
      the Policy Provider.  The Subordination Agent shall promptly calculate the
      amount of the redemption or purchase of all or any portion of any Equipment
      Note, the amount of any Overdue Scheduled Payment or the proceeds of any portion
      of any Equipment Note or the Collateral, as the case may be, comprising such
      Special Payment under the Indenture and shall promptly send to each Trustee,
      the
      Primary Liquidity Provider and the Policy Provider a Written Notice of such
      amount and the amount allocable to each Trust.  Such Written Notice shall
      also set the distribution date for such Special Payment, which shall be the
      Business Day which immediately follows the later to occur of (x) the 15th
      day after the date of such Written Notice or (y) the date the Subordination
      Agent has received or expects to receive such Special Payment. For purposes
      of
      calculating any such distribution, if the Special Payment to be distributed
      on
      any Special Distribution Date results from the redemption, purchase or
      prepayment of any portion of any Equipment Note prior to the occurrence of
      a
      Payment Default under the Indenture, the amount of accrued and unpaid Liquidity
      Expenses and Policy Expenses which are not yet due that are payable pursuant
      to
      clause “second” of Section 3.2 and any unpaid amounts which are not yet due
      that are payable to the Policy Provider under the Policy Fee Letter pursuant
      to
      clause “ninth” of Section 3.2 shall be multiplied by the Applicable
      Fraction. Amounts on deposit in the 

     

    
      
         

      

      
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    Special
      Payments Account shall be distributed in accordance with Section 2.4(b), 2.4(c)
      and Article III hereof, as applicable. 

     

    (b) Investment
      of Amounts in Special Payments Account.
      Any
      amounts on deposit in the Special Payments Account prior to the distribution
      thereof pursuant to Article III hereof shall be invested in accordance with
      Section 2.2(b). Investment Earnings on such investments shall be distributed
      in
      accordance with Article III hereof.

     

    (c) Certain
      Payments.
      Except
      for amounts constituting Liquidity Obligations, Policy Expenses or Policy
      Provider Obligations which shall be distributed on a Distribution Date as
      provided in Section 3.2, the Subordination Agent will distribute promptly upon
      receipt thereof (i) any indemnity payment or expense reimbursement received
      by
      it from Continental in respect of any Trustee, any Liquidity Provider or the
      Policy Provider (collectively, the "Payees")
      and
      (ii) any compensation received by it from Continental under any Operative
      Agreement in respect of any Payee, directly to the Payee entitled thereto.
      

     

    SECTION
      2.5. Designated
      Representatives.
      (a) With
      the delivery of this Agreement, the Subordination Agent shall furnish to each
      Liquidity Provider, the Policy Provider and each Trustee, and from time to
      time
      thereafter may furnish to each Liquidity Provider, the Policy Provider and
      each
      Trustee, at the Subordination Agent's discretion, or upon any Liquidity
      Provider's, the Policy Provider's or any Trustee's request (which request shall
      not be made more than one time in any 12-month period), a certificate (a
      "Subordination
      Agent Incumbency Certificate")
      of a
      Responsible Officer of the Subordination Agent certifying as to the incumbency
      and specimen signatures of the officers of the Subordination Agent and the
      attorney-in-fact and agents of the Subordination Agent (the "Subordination
      Agent Representatives")
      authorized to give Written Notices on behalf of the Subordination Agent
      hereunder. Until each Liquidity Provider, the Policy Provider and each Trustee
      receives a subsequent Subordination Agent Incumbency Certificate, it shall
      be
      entitled to rely on the last Subordination Agent Incumbency Certificate
      delivered to it hereunder.

     

    (b) With
      the
      delivery of this Agreement, each Trustee shall furnish to the Subordination
      Agent, and from time to time thereafter may furnish to the Subordination Agent,
      at such Trustee's discretion, or upon the Subordination Agent's request (which
      request shall not be made more than one time in any 12-month period), a
      certificate (a "Trustee
      Incumbency Certificate")
      of a
      Responsible Officer of such Trustee certifying as to the incumbency and specimen
      signatures of the officers of such Trustee and the attorney-in-fact and agents
      of such Trustee (the "Trustee
      Representatives")
      authorized to give Written Notices on behalf of such Trustee hereunder. Until
      the Subordination Agent receives a subsequent Trustee Incumbency Certificate,
      it
      shall be entitled to rely on the last Trustee Incumbency Certificate delivered
      to it hereunder.

     

    (c) With
      the
      delivery of this Agreement, each Liquidity Provider and the Policy Provider
      shall furnish to the Subordination Agent, and from time to time thereafter
      may
      furnish to the Subordination Agent, at such Liquidity Provider's or Policy
      Provider's discretion, or upon the Subordination Agent's request (which request
      shall not be made more than one time in any 12-month period), a certificate
      (each, a "Provider
      Incumbency Certificate")
      of any
      Responsible Officer of such Liquidity Provider or Policy Provider certifying
      as
      to the 

     

    
      
         

      

      
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    incumbency
      and specimen signatures of any officer, attorney-in-fact, agent or other
      designated representative of such Liquidity Provider or Policy Provider (in
      each
      case, the "Provider
      Representatives"
      and,
      together with the Subordination Agent Representatives and the Trustee
      Representatives, the "Designated
      Representatives")
      authorized to give Written Notices on behalf of such Liquidity Provider or
      Policy Provider hereunder. Until the Subordination Agent receives a subsequent
      Provider Incumbency Certificate, it shall be entitled to rely on the last
      Provider Incumbency Certificate delivered to it hereunder by the relevant
      Liquidity Provider or the Policy Provider.

     

    SECTION
      2.6. Controlling
      Party.
      (a)  The Trustees, the Policy Provider and the Liquidity Providers
      hereby agree that, at any given time, the Mortgagee will be directed (i) in
      taking, or refraining from taking, any action under the Indenture or with
      respect to the Equipment Notes, so long as no Indenture Default has occurred
      and
      is continuing thereunder, by the holders of at least a majority of the
      outstanding principal amount of the Equipment Notes (provided that, for so
      long
      as the Subordination Agent is the registered holder of the Equipment Notes,
      the
      Subordination Agent shall act with respect to this clause (i) in accordance
      with
      the directions of the Trustees (in the case of each such Trustee, with respect
      to the Equipment Notes issued under such Indenture and held as Trust Property
      of
      such Trust) constituting, in the aggregate, directions with respect to at least
      a majority of outstanding principal amount of Equipment Notes except as provided
      in Section 9.1(b)), and (ii) after the occurrence and during the continuance
      of
      an Indenture Default thereunder, in taking, or refraining from taking, any
      action under the Indenture or with respect to the Equipment Notes, including
      exercising remedies thereunder (including Accelerating the Equipment Notes
      issued thereunder or foreclosing the Lien on the Collateral), by the Controlling
      Party.

     

    (b) The
      Person who shall be the "Controlling Party" with respect to the Indenture upon
      the occurrence of an Indenture Default shall be (x) the Policy Provider (or,
      (i)
      if any Policy Provider Default shall have occurred and be continuing or (ii)
      the
      Policy has been surrendered to the Policy Provider for cancellation thereby
      releasing the Policy Provider from its obligations under the Policy and all
      Policy Provider Amounts (other than any amount referred to in clause (c) of
      the
      definition of Excess Reimbursement Obligations) have been paid in full as set
      forth in clause (d) below, the Class G Trustee); and (y) upon (i) payment of
      Final Distributions to the holders of Class G Certificates and (ii) unless
      a
      Policy Provider Default shall have occurred and be continuing, payment of all
      Policy Provider Amounts (other than Excess Reimbursement Obligations) to the
      Policy Provider, the Class B Trustee; provided,
      that if
      the Policy Provider makes a payment in full on a Policy Drawing in respect
      of an
      Avoided Payment after the payment of the Final Distributions to the Class G
      Certificateholders, so long as no Policy Provider Default has occurred and
      is
      continuing, the Policy Provider will be the Controlling Party until no Policy
      Provider Amounts (other than any Excess Reimbursement Obligations) remain
      outstanding, and thereafter, the Class B Trustee. For purposes of giving effect
      to the provisions of Section 2.6(a) and this Section 2.6(b), the Trustees (other
      than the Controlling Party) irrevocably agree (and the Certificateholders (other
      than the Certificateholders represented by the Controlling Party) shall be
      deemed to agree by virtue of their purchase of Certificates) that the
      Subordination Agent, as record holder of the Equipment Notes, and subject always
      to the provisions of Article IX hereof, shall exercise its voting rights in
      respect of the Equipment Notes as directed by the Controlling Party and any
      vote
      so exercised shall be binding upon the Trustees and all
      Certificateholders.

     

    
      
         

      

      
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    The
      Subordination Agent shall give Written Notice to all of the other parties to
      this Agreement promptly upon a change in the identity of the Controlling Party.
      Each of the parties hereto agrees that it shall not exercise any of the rights
      of the Controlling Party at such time as it is not the Controlling Party
      hereunder; provided,
      however,
      that
      nothing herein contained shall prevent or prohibit any Non-Controlling Party
      from exercising such rights as shall be specifically granted to such
      Non-Controlling Party hereunder and under the other Operative
      Agreements.

     

    (c) Notwithstanding
      the foregoing, at any time after the Liquidity Provider Reimbursement Date,
      if a
      Policy Provider Default attributable to a failure to make a payment referred
      to
      in Section 3.6(d) shall have occurred and be continuing, the Primary Liquidity
      Provider (so long as the Primary Liquidity Provider has not defaulted in its
      obligation to make any Drawing under the Primary Liquidity Facility) shall
      have
      the right to elect, by Written Notice to the Subordination Agent, each of the
      Trustees and the Policy Provider, to become the Controlling Party hereunder
      at
      any time from and including the Liquidity Provider Reimbursement Date;
provided,
      however,
      that if
      the Policy Provider subsequently pays to the Primary Liquidity Provider all
      outstanding Drawings, together with accrued interest thereon, under the Primary
      Liquidity Facility, then, the Person determined in accordance with Section
      2.6(b), rather than the Primary Liquidity Provider, shall be the Controlling
      Party. 

     

    (d) Subject
      to clause (b) above and the rights of the Primary Liquidity Provider under
      clause (c) above, following the surrender of the Policy to the Policy Provider
      for cancellation and the payment in full of all Policy Provider Amounts (other
      than any amount referred to in clause (c) of the definition of Excess
      Reimbursement Obligations), all in accordance with Section 5.01 of the Class
      G
      Trust Supplement and, if applicable, Section 5.01 of the Class B Trust
      Supplement, the Class G Trustee shall be the Controlling Party. Upon the
      delivery of the Policy to the Policy Provider for cancellation, the Policy
      Provider shall be released from its obligations under the Policy.

     

    (e) The
      exercise of remedies by the Controlling Party under this Agreement shall be
      expressly limited by Section 4.1(a)(ii) hereof.

     

    (f) The
      Controlling Party shall not be entitled to require or obligate any
      Non-Controlling Party to provide funds necessary to exercise any right or remedy
      hereunder.

     

     

    ARTICLE
      III

     

    RECEIPT,
      DISTRIBUTION AND APPLICATION 

    OF
      AMOUNTS RECEIVED

     

    SECTION
      3.1. Written
      Notice of Distribution.
      (a) No
      later than 3:00 P.M. (New York City time) on the Business Day immediately
      preceding each Distribution Date, each of the following Persons shall deliver
      to
      the Subordination Agent a Written Notice setting forth the following information
      as at the close of business on such Business Day:

     

    (i) With
      respect to the Class G Certificates, the Class G Trustee shall separately set
      forth the amounts to be paid in accordance with clause "first" (to reimburse
      

     

    
      
         

      

      
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    payments
      made by such Trustee or the Class G Certificateholders, as the case may be,
      pursuant to subclause (ii) or (iv) of clause "first"), subclauses (ii) and
      (iii)
      of clause "seventh" of Section 3.2 hereof and clause "eighth" of Section 3.2
      hereof;

     

    (ii) With
      respect to the Class B Certificates, the Class B Trustee shall separately set
      forth the amounts to be paid in accordance with clause "first" (to reimburse
      payments made by such Trustee or the Class B Certificateholders, as the case
      may
      be, pursuant to subclause (ii) or (iv) of clause "first"), subclauses (ii)
      and
      (iii) of clause "seventh" of Section 3.2 hereof and clause "tenth" of Section
      3.2 hereof;

     

    (iii) The
      Primary Liquidity Provider shall separately set forth the amounts to be paid
      to
      it in accordance with subclause (iv) of clause "first", subclause (i) of clause
      "second", subclause (i) of clause "third", subclause (I) of clause "fourth"
      and
      clause "fifth" of Section 3.2 hereof;

     

    (iv) The
      Policy Provider shall (A) separately set forth the amounts to be paid to it
      in
      accordance with subclauses (iii) and (iv) of clause "first", subclause (ii)
      of
      clause "second", subclauses (ii) and (iii) of clause "third", subclause (II)
      of
      clause "fourth", clause "ninth" and clause "eleventh" of Section 3.2 hereof
      and
      (B) confirm to the Subordination Agent that none of the amounts referred to
      in
      this clause (iv) have been previously paid by Continental after demand therefor
      under any Policy Provider Document; and

     

    (v) Each
      Trustee shall set forth the amounts to be paid in accordance with clause
      "seventh" of Section 3.2 hereof.

     

    The
      notices required under this Section 3.1(a) may be in the form of a schedule
      or
      similar document provided to the Subordination Agent by the parties referenced
      therein or by any one of them, which schedule or similar document may state
      that, unless there has been a prepayment of the Certificates, such schedule
      or
      similar document is to remain in effect until any substitute notice or amendment
      shall be given to the Subordination Agent by the party providing such
      notice.

     

    (b) Following
      the occurrence of a Triggering Event, the Subordination Agent shall request
      the
      following information from the following Persons, and each of the following
      Persons shall, upon the request of the Subordination Agent, deliver a Written
      Notice to the Subordination Agent setting forth for such Person the following
      information:

     

    (i) With
      respect to the Class G Certificates the Class G Trustee shall separately set
      forth the amounts to be paid in accordance with clause "first" (to reimburse
      payments made by such Trustee or the Class G Certificateholders pursuant to
      subclause (ii) or (iv) of clause "first"), subclauses (ii) and (iii) of clause
      "seventh" of Section 3.2 hereof and clause "eighth" of Section 3.2
      hereof;

     

    (ii) With
      respect to the Class B Certificates, the Class B Trustee shall separately set
      forth the amounts to be paid in accordance with clause "first" (to reimburse
      payments made by such Trustee or the Class B Certificateholders, as the case
      may
      be;

     

    
      
         

      

      
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    (iv) The
      Primary Liquidity Provider shall separately set forth the amounts to be paid
      to
      it in accordance with subclause (iv) of clause "first" of Section 3.2 hereof,
      subclause (i) of clause "second" of Section 3.2 hereof, subclause (i) of clause
      "third" of Section 3.2 hereof, subclause (I) of clause "fourth" of Section
      3.2
      hereof and clause "fifth" of Section 3.2 hereof;

     

    (v) The
      Policy Provider shall (A) separately set forth amounts to be paid to it in
      accordance with subclauses (iii) and (iv) of clause "first" of Section 3.2
      hereof, subclause (ii) of clause "second" of Section 3.2 hereof, subclauses
      (ii)
      and (iii) of clause "third" of Section 3.2 hereof, subclause (II) of clause
      "fourth" of Section 3.2 hereof, clause "ninth" of Section 3.2 hereof and clause
      "eleventh" of Section 3.2 hereof and (B) confirm to the Subordination Agent
      that
      none of the amounts referred to in this clause (v) have been previously paid
      by
      Continental after demand therefor under any Policy Provider Document;
      and

     

    (vi) Each
      Trustee shall set forth the amounts to be paid in accordance with clause
      "seventh" of Section 3.2 hereof.

     

    (c) At
      such
      time as a Trustee, the Primary Liquidity Provider or the Policy Provider shall
      have received all amounts owing to it (and, in the case of a Trustee, the
      Certificateholders for which it is acting) pursuant to Section 3.2 or 3.6
      hereof, as applicable, and, in the case of the Primary Liquidity Provider or
      the
      Policy Provider, its commitment or obligations under the Primary Liquidity
      Facility or the Policy, as the case may be, shall have terminated or expired,
      such Person shall, by a Written Notice, so inform the Subordination Agent and
      each other party to this Agreement.

     

    (d) As
      provided in Section 6.5 hereof, the Subordination Agent shall be fully protected
      in relying on any of the information set forth in a Written Notice provided
      by
      any Trustee, the Primary Liquidity Provider or the Policy Provider pursuant
      to
      paragraphs (a) through (c) above and shall have no independent obligation to
      verify, calculate or recalculate any amount set forth in any Written Notice
      delivered in accordance with such paragraphs.

     

    (e) Any
      Written Notice delivered by a Trustee, the Primary Liquidity Provider, the
      Policy Provider or the Subordination Agent, as applicable, pursuant to Section
      3.1(a), 3.1(b), 3.1(c) or 3.6 hereof, if made prior to 10:00 A.M. (New York
      City
      time) on any Business Day, shall be effective on the date delivered (or if
      delivered later on a Business Day or if delivered on a day which is not a
      Business Day shall be effective as of the next Business Day). Subject to the
      terms of this Agreement, the Subordination Agent shall as promptly as
      practicable comply with any such instructions; provided,
      however,
      that
      any transfer of funds pursuant to any instruction received after 10:00 A.M.
      (New
      York City time) on any Business Day may be made on the next succeeding Business
      Day.

     

    (f) In
      the
      event the Subordination Agent shall not receive from any Person any information
      set forth in paragraph (a) or (b) above which is required to enable the
      Subordination Agent to make a distribution to such Person pursuant to Section
      3.2 hereof, the Subordination Agent shall request such information and, failing
      to receive any such information, the Subordination Agent shall not make such
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    Subordination
      Agent shall make distributions pursuant to clauses "first"
      through
      "
      thirteenth
      " of
      Section 3.2 to the extent it shall have sufficient information to enable it
      to
      make such distributions, and shall continue to hold any funds remaining, after
      making such distributions, until the Subordination Agent shall receive all
      necessary information to enable it to distribute any funds so
      withheld.

     

    (g) On
      such
      dates (but not more frequently than monthly) as the Primary Liquidity Provider,
      the Policy Provider or any Trustee shall request, but in any event automatically
      at the end of each calendar quarter, the Subordination Agent shall send to
      such
      party a written statement reflecting all amounts on deposit with the
      Subordination Agent pursuant to Section 3.1(f) hereof.

     

    SECTION
      3.2. Distribution
      of Amounts on Deposit in the Collection Account.
      Except
      as otherwise provided in Sections 2.4(c), 3.1(f), 3.3, 3.5(b), 3.5(k) and 3.6,
      amounts on deposit in the Collection Account (or, in the case of any Special
      Payment, on deposit in the Special Payments Account) shall be promptly
      distributed on each Regular Distribution Date (or, in the case of any Special
      Payment, on the Special Distribution Date thereof) in the following order of
      priority and in accordance with the information provided to the Subordination
      Agent pursuant to Section 3.1(a) or (b), as applicable:

     

    first,
      such
      amount as shall be required to reimburse (i) the Subordination Agent for any
      reasonable out-of-pocket costs and expenses actually incurred by it (to the
      extent not previously reimbursed) in the protection of, or the realization
      of
      the value of, the Equipment Notes or any Collateral, shall be applied by the
      Subordination Agent in reimbursement of such costs and expenses, (ii) each
      Trustee for any amounts of the nature described in clause (i) above actually
      incurred by it under the applicable Trust Agreement (to the extent not
      previously reimbursed), shall be distributed to such Trustee, (iii) the Policy
      Provider for any amounts of the nature described in clause (i) above actually
      incurred by it under the Policy Provider Agreement (to the extent not previously
      reimbursed), shall be distributed to the Policy Provider, and (iv) the Primary
      Liquidity Provider, the Policy Provider or any Certificateholder for payments,
      if any, made by it to the Subordination Agent or any Trustee in respect of
      amounts described in clause (i) above, shall be distributed to the Primary
      Liquidity Provider, the Policy Provider or to the applicable Trustee for the
      account of such Certificateholder, in each such case, pro rata on the basis
      of
      all amounts described in clauses (i) through (iv) above;

     

    second,
      such
      amount as shall be required to pay (i) all accrued and unpaid Liquidity Expenses
      owed to the Primary Liquidity Provider and (ii) all accrued and unpaid Policy
      Expenses owed to the Policy Provider, shall be distributed to the Primary
      Liquidity Provider and the Policy Provider pro rata on the basis of the amount
      of Liquidity Expenses and Policy Expenses owed to the Primary Liquidity Provider
      and the Policy Provider;

     

    third,
      such
      amount as shall be required to pay (i) the aggregate amount of accrued and
      unpaid interest on all Liquidity Obligations (at the rate, or in the amount,
      provided in the Primary Liquidity Facility and determined after application
      of
      the proceeds of any Policy Drawing pursuant to Section 3.6(d) or other payment
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    Primary
      Liquidity Provider in respect of any interest on Drawings in accordance with
      the
      provisions of Section 2.6(c)), (ii) the aggregate amount of accrued and unpaid
      Policy Provider Interest Obligations and (iii) if the Policy Provider has paid
      pursuant to Section 3.6(d) or the proviso to Section 2.6(c) to the Primary
      Liquidity Provider all outstanding Drawings and interest thereon owing to the
      Primary Liquidity Provider under the Primary Liquidity Facility, the amount
      of
      such payments made to the Primary Liquidity Provider attributable to interest
      accrued on Drawings under the Primary Liquidity Facility, shall be distributed
      to the Primary Liquidity Provider and the Policy Provider, as the case may
      be,
      pro rata on the basis of the amounts owed to the Primary Liquidity Provider
      and
      the Policy Provider under subclauses (i), (ii) and (iii) of this clause
“third”;

     

    fourth,
      such
      amount as shall be required (I)(A) if the Primary Cash Collateral Account had
      been previously funded as provided in Section 3.5(f), unless (i) on such
      Distribution Date, any Equipment Note is a Non-Performing Equipment Note and
      a
      Liquidity Event of Default shall have occurred and be continuing or (ii) a
      Final Drawing shall have occurred, to fund the Primary Cash Collateral Account
      up to its Required Amount (less the amount of any repayments of Interest
      Drawings under the Primary Liquidity Facility while subclause (A)(i) above
      is
      applicable) shall be deposited in the Primary Cash Collateral Account, (B)
      if
      the Primary Liquidity Facility shall become a Downgraded Facility or a
      Non-Extended Facility at a time when unreimbursed Interest Drawings under the
      Primary Liquidity Facility have reduced the Available Amount thereunder to
      zero,
      unless (i) on such Distribution Date, any Equipment Note is a Non-Performing
      Equipment Note and a Liquidity Event of Default shall have occurred and be
      continuing or (ii) a Final Drawing shall have occurred, to deposit into the
      Primary Cash Collateral Account an amount equal to the Required Amount (less
      the
      amount of any repayments of Interest Drawings under the Primary Liquidity
      Facility while subclause (B)(i) above is applicable) shall be deposited in
      the
      Primary Cash Collateral Account, and (C) if, with respect to the Primary
      Liquidity Facility, neither subclause (I)(A) nor subclause (I)(B) of this clause
      "fourth" are applicable, to pay in full the outstanding amount of all Liquidity
      Obligations then due under the Primary Liquidity Facility (other than amounts
      payable pursuant to clause "second" or "third" of this Section 3.2) (net of
      any
      and all payments made by the Policy Provider to the Primary Liquidity Provider)
      shall be paid to the Primary Liquidity Provider and (II) if the Policy Provider
      has paid pursuant to Section 3.6(d) or the proviso to Section 2.6(c) to the
      Primary Liquidity Provider all outstanding Drawings and interest thereon owing
      to the Primary Liquidity Provider under the Primary Liquidity Facility or if
      the
      Policy Provider has honored any Policy Drawings pursuant to Section 3.6(a)
      as a
      result of the failure of the Primary Liquidity Provider to honor Interest
      Drawings in accordance with Section 2.02(a) of the Primary Liquidity Facility,
      the amount of such payments made to the Primary Liquidity Provider in respect
      of
      principal of Drawings under the Primary Liquidity Facility and the amount of
      such Policy Drawings, as applicable, shall be paid to the Policy Provider,
      pro
      rata on the basis of the amounts of all such deficiencies and/or unreimbursed
      Liquidity Obligations payable to the Primary Liquidity Provider and the amount
      of such unreimbursed Policy Provider Obligations payable to the Policy Provider,
      in each instance, under this clause “fourth”;

     

    
      
         

      

      
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    fifth,
      if any
      amounts are to be distributed pursuant to either subclause (I)(A) or (I)(B)
      of
      clause "fourth" above, then the Primary Liquidity Provider shall be paid the
      excess of (x) the aggregate outstanding amount of unreimbursed Advances (whether
      or not then due) over (y) the Required Amount (less the amount of any repayments
      of Interest Drawings under the Primary Liquidity Facility while subclause
      (I)(A)(i) or (I)(B)(i), as the case may be, of clause "fourth" above is
      applicable);

     

    sixth,
      such
      amount as shall be required, if the Above-Cap Collateral Account had been
      previously funded as provided in Section 3.5(f), unless (i) on such Distribution
      Date, any Equipment Note is a Non-Performing Equipment Note and a Liquidity
      Event of Default shall have occurred and be continuing or (ii) a Final
      Drawing shall have occurred, to fund the Above-Cap Collateral Account up to
      an
      amount equal to the applicable Termination Amount (as recalculated on such
      Distribution Date) less any amount then on deposit in the Above-Cap Account
      shall be deposited in the Above-Cap Collateral Account;

     

    seventh,
      such
      amount as shall be required to reimburse or pay (i) the Subordination Agent
      for
      any Tax (other than Taxes imposed on compensation paid hereunder), expense,
      fee,
      charge or other loss incurred by or any other amount payable to the
      Subordination Agent in connection with the transactions contemplated hereby
      (to
      the extent not previously reimbursed), shall be applied by the Subordination
      Agent in reimbursement of such amount, (ii) each Trustee for any Tax (other
      than
      Taxes imposed on compensation paid under the applicable Trust Agreement),
      expense, fee, charge, loss or any other amount payable to such Trustee under
      the
      applicable Trust Agreements (to the extent not previously reimbursed), shall
      be
      distributed to such Trustee, and (iii) each Certificateholder for payments,
      if
      any, made by it pursuant to Section 5.2 hereof in respect of amounts described
      in clause (i) above, shall be distributed to the applicable Trustee for the
      account of such Certificateholder, in each such case, pro rata on the basis
      of
      all amounts described in clauses (i) through (iii) above;

     

    eighth,
      such
      amount as shall be required to pay in full Expected Distributions on the Class
      G
      Certificates on such Distribution Date shall be distributed to the Class G
      Trustee;

     

    ninth,
      such
      amount as shall be required to pay all Policy Provider Obligations then due
      (other than amounts payable pursuant to clauses "first", "second", "third"
      and
      "fourth" of this Section 3.2 and any Excess Reimbursement Obligations) and
      amounts due under the Policy Fee Letter (other than any Early Termination Fee)
      shall be paid to the Policy Provider; 

     

    tenth,
      such
      amount as shall be required to pay in full Expected Distributions on the Class
      B
      Certificates on such Distribution Date shall be distributed to the Class B
      Trustee;

     

    eleventh,
      such
      amount as shall be required to pay any Excess Reimbursement Obligations shall
      be
      distributed to the Policy Provider;

     

    
      
         

      

      
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    twelfth,
      such
      amount as shall be required, if the Above-Cap Collateral Account had been
      previously funded as provided in Section 3.5(f), unless (i) any Equipment Note
      is a Non-Performing Equipment Note and a Liquidity Event of Default shall have
      occurred and be continuing or (ii) a Final Drawing shall have occurred, to
      fund the Above-Cap Collateral Account up to an amount equal to the applicable
      Termination Amount (as recalculated on such Distribution Date) shall be
      deposited in the Above-Cap Collateral Account; and

     

    thirteenth,
      the
      balance, if any, of any such amount remaining thereafter shall be held in the
      Collection Account for later distribution in accordance with this Article
      III.

     

    SECTION
      3.3. Other
      Payments.
      (a)  Any payments received by the Subordination Agent for which no
      provision as to the application thereof is made in this Agreement shall be
      distributed by the Subordination Agent in the order of priority specified in
      Section 3.2 hereof.

     

    (b) Notwithstanding
      the priority of payments specified in Section 3.2, in the event any Investment
      Earnings on amounts on deposit in the Primary Cash Collateral Account resulting
      from an Unapplied Provider Advance are deposited in the Collection Account
      or
      the Special Payments Account, such Investment Earnings shall be used to pay
      interest payable in respect of such Unapplied Provider Advance to the extent
      of
      such Investment Earnings. 

     

    (c) Except
      as
      otherwise provided in Section 3.2 hereof, if the Subordination Agent receives
      any Scheduled Payment after the Scheduled Payment Date relating thereto, but
      prior to such payment becoming an Overdue Scheduled Payment, then the
      Subordination Agent shall deposit such Scheduled Payment in the Collection
      Account and promptly distribute such Scheduled Payment in accordance with the
      priority of distributions set forth in Section 3.2 hereof; provided
      that,
      for the purposes of this Section 3.3(c) only, each reference in clause
      "eighth"
      and
      "tenth"
      of
      Section 3.2 to "Distribution Date" shall be deemed to refer to such Scheduled
      Payment Date.

     

    SECTION
      3.4. Payments
      to the Trustees, the Primary Liquidity Provider
      and
      Policy Provider.
      Any
      amounts distributed hereunder to the Primary Liquidity Provider or Policy
      Provider shall be paid to the Primary Liquidity Provider or Policy Provider
      by
      wire transfer of funds to the address the Primary Liquidity Provider or Policy
      Provider shall provide to the Subordination Agent. The Subordination Agent
      shall
      provide a Written Notice of any such transfer to the Primary Liquidity Provider
      or Policy Provider, as the case may be, at the time of such transfer. Any
      amounts distributed hereunder by the Subordination Agent to any Trustee which
      shall not be the same institution as the Subordination Agent shall be paid
      to
      such Trustee by wire transfer funds at the address such Trustee shall provide
      to
      the Subordination Agent.

     

    SECTION
      3.5. Liquidity
      Facilities.
      (a)
 Interest
      Drawings and Above-Cap Payments.
      If on
      any Distribution Date, after giving effect to the subordination provisions
      of
      this Agreement, the Subordination Agent shall not have sufficient funds for
      the
      payment of any amounts due and owing in respect of accrued interest on the
      Class
      G Certificates (at the Stated Interest Rate for the Class G Certificates
      calculated assuming that Continental will not cure any Payment Default), then,
      prior to 12:00 p.m. (New York City time) on such Distribution Date, (i)

     

    
      
         

      

      
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    the
      Subordination Agent shall request a drawing (each such drawing, an "Interest
      Drawing")
      under
      the Primary Liquidity Facility (and concurrently with the making of such
      request, the Subordination Agent will give notice to the Policy Provider of
      such
      insufficiency of funds) in an amount equal to the lesser of (x) an amount
      sufficient to pay the amount of such accrued interest (at the Stated Interest
      Rate for the Class G Certificates calculated assuming that Continental will
      not
      cure any Payment Default) and (y) the Available Amount under the Primary
      Liquidity Facility, and shall pay such amount to the Class G Trustee in payment
      of such accrued interest; and (ii) if LIBOR for the Interest Period ending
      on
      such Distribution Date (or, if such Distribution Date is not the last day of
      an
      Interest Period, LIBOR for the Interest Period including such Distribution
      Date)
      exceeds Capped LIBOR and if the Stated Interest Rate for the Class G
      Certificates for the Interest Period ending on such Distribution Date (or,
      if
      such Distribution Date is not the last day of an Interest Period, the Stated
      Interest Rate for the Interest Period including such Distribution Date) exceeds
      the Capped Interest Rate, the Subordination Agent shall (if it can make the
      certification described in the last sentence of this Section 3.5(a) and the
      Above-Cap Liquidity Facility has not been terminated or expired in accordance
      with its terms) request an interest rate cap payment (each such payment, an
      "Above-Cap
      Payment")
      under
      the Above-Cap Liquidity Facility for credit to the Above-Cap Account in an
      amount equal to the excess of (1) the product of (x) the difference between
      LIBOR for the Interest Period ending on such Distribution Date (or, if such
      Distribution Date is not the last day of an Interest Period, LIBOR for the
      Interest Period including such Distribution Date) and Capped LIBOR, multiplied
      by (y) the Pool Balance with respect to the Class G Certificates as of such
      Distribution Date (and before giving effect to any distribution on such date),
      multiplied by (z) the actual number of days elapsed in such Interest Period
      to such Distribution Date divided by 360 over (2) the amount, if any, on deposit
      in the Above-Cap Account, and upon the receipt thereof the Subordination Agent
      shall immediately deposit such Above-Cap Payment into the Above-Cap Account.
      If
      the Interest Drawing on such Distribution Date pursuant to clause (i) above
      with
      respect to the Class G Certificates, together with all other amounts available
      to the Subordination Agent on such Distribution Date (after giving effect to
      the
      subordination provisions of this Agreement and any withdrawals from the Primary
      Cash Collateral Account), is insufficient to pay accrued interest (at the
      applicable Stated Interest Rate with respect to the Class G Certificates)
      payable with respect to the Class G Certificates on such Distribution Date
      (such
      deficiency, the "Deficiency
      Amount"),
      the
      Subordination Agent shall, prior to 4:00 p.m. (New York City time) on such
      Distribution Date, withdraw (each, an "Above-Cap
      Withdrawal")
      from
      the Above-Cap Account an amount equal to the lesser of (x) such Deficiency
      Amount and (y) the amount on deposit in the Above-Cap Account (including any
      amounts deposited, or to be deposited, on such Distribution Date pursuant to
      clause (ii) above), and shall pay such amount to the Class G Trustee in payment
      of such accrued interest with respect to the Class G Certificates. In
      connection with a request for an Above-Cap Payment under the Above-Cap Liquidity
      Facility pursuant to clause (ii) above, the Subordination Agent shall certify
      to
      the Above-Cap Liquidity Provider that at least one of the following statements
      is true as of such Distribution Date: (i) the Available Amount under the Primary
      Liquidity Facility (prior to giving effect to any Interest Advances to be made
      on such Distribution Date) is greater than zero; or (ii) the amount on deposit
      in the Primary Cash Collateral Account (prior to giving effect to any withdrawal
      to be made from such account on such Distribution Date) is greater than
      zero.

     

    (b) Application
      of Interest Drawings and Above-Cap Withdrawals.
      Notwithstanding anything to the contrary contained in this Agreement, (i) all
      payments received 

     

    
      
         

      

      
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    by
      the
      Subordination Agent in respect of an Interest Drawing under the Primary
      Liquidity Facility and all amounts withdrawn by the Subordination Agent from
      the
      Primary Cash Collateral Account, and payable in each case to the Class G
      Certificateholders or the Class G Trustee, shall be promptly distributed to
      the
      Class G Trustee, provided
      that if
      (x) the Subordination Agent shall receive any amount in respect of an Interest
      Drawing under the Primary Liquidity Facility or a withdrawal from the Primary
      Cash Collateral Account to pay Accrued Class G Interest after such Accrued
      Class
      G Interest has been fully paid to the Class G Trustee by a Policy Drawing under
      the Policy pursuant to Section 3.6(a) hereof or (y) the Subordination Agent
      shall receive any amount in respect of a Policy Drawing under the Policy
      pursuant to Section 3.6(a) hereof to fully pay Accrued Class G Interest after
      such Accrued Class G Interest has been paid (in full or in part) to the Class
      G
      Trustee by an Interest Drawing under the Primary Liquidity Facility or a
      withdrawal from the Primary Cash Collateral Account, the Subordination Agent,
      in
      the case of either clause (x) or (y), shall pay an amount equal to the amount
      of
      such Interest Drawing or withdrawal directly to the Policy Provider as
      reimbursement of such Policy Drawing rather than to the Class G
      Certificateholders or the Class G Trustee (except for any such amount
      constituting an Election Interest Payment with respect to the Series G Equipment
      Note, which shall be paid directly to the Primary Liquidity Provider as
      reimbursement for such Interest Drawing or to the Primary Cash Collateral
      Account as replenishment for such withdrawal, as applicable), and (ii)
all
      payments received by the Subordination Agent in respect of an Above-Cap
      Withdrawal from the Above-Cap Account, and payable to the Class G
      Certificateholders or the Class G Trustee, shall be promptly distributed to
      the
      Class G Trustee,
      provided
      that if
      (x) the Subordination Agent shall receive any amount in respect of such
      Above-Cap Withdrawal to pay Accrued Class G Interest after such Accrued Class
      G
      Interest has been fully paid to the Class G Trustee by a Policy Drawing under
      the Policy pursuant to Section 3.6(a) hereof or (y) the Subordination Agent
      shall receive any amount in respect of a Policy Drawing under the Policy
      pursuant to Section 3.6(a) hereof to fully pay Accrued Class G Interest after
      such Accrued Class G Interest has been paid (in full or in part) to the Class
      G
      Trustee by an Above-Cap Withdrawal, the Subordination Agent, in the case of
      either clause (x) or (y), shall pay an amount equal to the amount of such
      Above-Cap Withdrawal directly to the Policy Provider as reimbursement of such
      Policy Drawing rather than to the Class G Certificateholders or the Class G
      Trustee.

     

    (c) Downgrade
      Drawings.
      (i) The
      Subordination Agent shall request a Downgrade Drawing under the Primary
      Liquidity Facility as provided in Section 3.5(c)(iii), if at any time a
      Downgrade Event shall have occurred with respect to the Primary Liquidity
      Facility (a "Downgraded
      Facility"),
      unless an event described in Section 3.5(c)(ii) occurs with respect to the
      Primary Liquidity Facility.

     

    (ii)
      If
      at any time the Primary Liquidity Facility becomes a Downgraded Facility, the
      Subordination Agent shall request a Downgrade Drawing thereunder in accordance
      with Section 3.5(c)(iii), unless the Primary Liquidity Provider or Continental
      arranges for a Replacement Primary Liquidity Provider to issue and deliver
      a
      Replacement Primary Liquidity Facility to the Subordination Agent within 10
      days
      of a Downgrade Event (but not later than the expiration date of such Downgraded
      Facility).

     

    (iii)
      Upon the occurrence of any Downgrade Event with respect to the Primary Liquidity
      Facility, unless any event described in Section 3.5(c)(ii) occurs with respect
      

     

    
      
         

      

      
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    thereto,
      the Subordination Agent shall, on the 10th day referred to in Section 3.5(c)(ii)
      (or if such 10th day is not a Business Day, on the next succeeding Business
      Day)
      (or, if earlier, the expiration date of such Downgraded Facility), request
      a
      drawing in accordance with and to the extent permitted by such Downgraded
      Facility (such drawing, a "Downgrade
      Drawing")
      of the
      Available Amount thereunder. Amounts drawn pursuant to a Downgrade Drawing
      shall
      be maintained and invested as provided in Section 3.5(f) hereof. The Primary
      Liquidity Provider may also arrange for a Replacement Primary Liquidity Provider
      to issue and deliver a Replacement Primary Liquidity Facility at any time after
      such Downgrade Drawing so long as such Downgrade Drawing has not been reimbursed
      in full to the Primary Liquidity Provider.

     

    (iv)
      If a
      Termination Event, a Credit Downgrade or a Credit Support Event (each such
      event, a "Mandatory
      Termination Event")
      shall
      occur under the Above-Cap Liquidity Facility, the Above-Cap Liquidity Provider
      shall provide prompt notice of such Mandatory Termination Event in writing
      to
      Continental, the Subordination Agent, the Policy Provider, the Class G
      Trustee and the Class B Trustee, and within the time period specified in
      the Above-Cap Liquidity Facility (but in no event later than the expiration
      date
      of the Above-Cap Liquidity Facility) Continental or the Above-Cap Liquidity
      Provider may, in each case at its own expense, arrange for one or more
      Replacement Above-Cap Liquidity Providers to issue and deliver a Replacement
      Above-Cap Liquidity Facility to the Subordination Agent.  In the event that
      the Above-Cap Liquidity Provider or Continental makes arrangements for a
      Replacement Above-Cap Liquidity Facility in accordance with the terms of the
      Above-Cap Liquidity Facility, (y) the Subordination Agent shall, if and to
      the extent so requested by the Above-Cap Liquidity Provider or Continental,
      execute and deliver any certificate or other instrument required to give effect
      to such replacement and (z) each of the parties hereto shall enter into any
      amendments to this Agreement necessary to give effect to such replacement. 
If the Above-Cap Liquidity Facility is subject to a Mandatory Termination Event
      and has not been replaced in accordance with its terms and the terms of this
      paragraph or if an Early Termination Date has been designated under the
      Above-Cap Liquidity Facility after the occurrence of an Event of Default (as
      defined in the Above-Cap Liquidity Facility) which is not otherwise a Mandatory
      Termination Event, the Above-Cap Liquidity Provider shall, on the applicable
      Early Termination Date, pay to the Subordination Agent, for the benefit of
      the
      Class G Trustee on behalf of the Class G Certificateholders, the applicable
      Termination Amount for credit to the Above-Cap Collateral Account, to be applied
      as provided in Section 3.5(f) hereof plus the amount of all other unpaid
      sums due and payable by the Above-Cap Liquidity Provider thereunder on or prior
      to such date, and upon such payment, the Above-Cap Liquidity Facility shall
      be
      terminated.  Nothing contained herein shall limit the rights of the
      Above-Cap Liquidity Provider to transfer its rights and obligations under the
      Above-Cap Liquidity Facility or otherwise arrange for a Replacement Above-Cap
      Liquidity Facility, subject to and in accordance with the provisions of the
      Above-Cap Liquidity Facility.

     

    (d) Non-Extension
      Drawings.
      If the
      Primary Liquidity Facility is scheduled to expire on a date (the "Stated
      Expiration Date")
      prior
      to the date that is 15 days after the Final Legal Distribution Date for the
      Class G Certificates, then, no earlier than the 60th day and no later than
      the
      40th day prior to the then Stated Expiration Date, the Subordination Agent
      shall
      request that the Primary Liquidity Provider extend the Stated Expiration Date
      until the earlier of (i) the date which is 15 days after such Final Legal
      Distribution Date and (ii) the date that is the day immediately preceding the
      364th
      day
      occurring after the last day of the applicable Consent 

     

    
      
         

      

      
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    Period
      (as hereinafter defined) (unless the obligations of the Primary Liquidity
      Provider under the Primary Liquidity Facility are earlier terminated in
      accordance with the Primary Liquidity Facility). Whether or not the Primary
      Liquidity Provider has received a request from the Subordination Agent, the
      Primary Liquidity Provider shall advise the Subordination Agent, no earlier
      than
      the 40th
      day (or,
      if earlier, the date of the Primary Liquidity Provider's receipt of such
      request, if any, from the Subordination Agent) and no later than the
      25th
      day
      prior to the Stated Expiration Date then in effect for the Primary Liquidity
      Facility (such period, with respect to the Primary Liquidity Facility, the
      "Consent
      Period"),
      whether, in its sole discretion, it agrees to extend such Stated Expiration
      Date. 

     

    If
      (A) on
      or before the date on which such Consent Period ends, the Primary Liquidity
      Facility shall not have been replaced in accordance with Section 3.5(e) and
      (B)
      the Primary Liquidity Provider fails irrevocably and unconditionally to advise
      the Subordination Agent on or before the date on which such Consent Period
      ends
      that such Stated Expiration Date then in effect shall be so extended for the
      Primary Liquidity Facility, the Subordination Agent shall, on the date on which
      such Consent Period ends (or as soon as possible thereafter), in accordance
      with
      the terms of the expiring Primary Liquidity Facility (a "Non-Extended
      Facility"),
      request a drawing under the expiring Primary Liquidity Facility (such drawing,
      a
      "Non-Extension
      Drawing")
      of all
      available and undrawn amounts thereunder. Amounts drawn pursuant to a
      Non-Extension Drawing shall be maintained and invested in accordance with
      Section 3.5(f) hereof.

     

    (e) Issuance
      of Replacement Primary Liquidity Facility.
      (i)  At any time, Continental may, at its option, with cause or
      without cause, arrange for a Replacement Primary Liquidity Facility to replace
      the Primary Liquidity Facility (including any Replacement Primary Liquidity
      Facility provided pursuant to Section 3.5(e)(ii) hereof); provided,
      however,
      that
      the initial Primary Liquidity Provider for the Primary Liquidity Facility shall
      not be replaced by Continental as the Primary Liquidity Provider without the
      consent of such initial Primary Liquidity Provider unless (A) there shall have
      become due to the initial Primary Liquidity Provider, or the initial Primary
      Liquidity Provider shall have demanded, amounts pursuant to Section 3.01, 3.02
      or 3.03 of the Primary Liquidity Facility and the replacement of such initial
      Primary Liquidity Provider would reduce or eliminate the obligation to pay
      such
      amounts or Continental determines in good faith that there is a substantial
      likelihood that the initial Primary Liquidity Provider will have the right
      to
      claim any such amounts (unless such initial Primary Liquidity Provider waives,
      in writing, any right it may have to claim such amounts), which determination
      shall be set forth in a certificate delivered by Continental to such initial
      Primary Liquidity Provider setting forth the basis for such determination and
      accompanied by an opinion of outside counsel selected by Continental and
      reasonably acceptable to such initial Primary Liquidity Provider verifying
      the
      legal conclusions, if any, of such certificate relating to such basis,
provided
      that, in
      the case of any likely claim for such amounts based upon any proposed, or
      proposed change in, law, rule, regulation, interpretation, directive,
      requirement, request or administrative practice, such opinion may assume the
      adoption or promulgation of such proposed matter, (B) it shall become unlawful
      or impossible for the initial Primary Liquidity Provider (or its Lending Office)
      to maintain or fund its LIBOR Advances as described in Section 3.10 of the
      Primary Liquidity Facility, (C) the Primary Liquidity Facility of such initial
      Primary Liquidity Provider shall become a Downgraded Facility or a Non-Extended
      Facility or a Downgrade Drawing or a Non-Extension Drawing shall have occurred
      under the Primary Liquidity Facility 

     

    
      
         

      

      
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    of
      such
      initial Primary Liquidity Provider or (D) the initial Primary Liquidity Provider
      shall have breached any of its payment (including, without limitation, funding)
      obligations under the Primary Liquidity Facility in respect of which it is
      the
      Primary Liquidity Provider. If such Replacement Primary Liquidity Facility
      is
      provided at any time after a Downgrade Drawing or Non-Extension Drawing has
      been
      made, all funds on deposit in the Primary Cash Collateral Account will be
      returned to the Primary Liquidity Provider being replaced. 

     

    (ii) If
      the
      Primary Liquidity Provider shall determine not to extend its Primary Liquidity
      Facility in accordance with Section 3.5(d), then the Primary Liquidity Provider
      may, at its option, arrange for a Replacement Primary Liquidity Facility to
      replace the Primary Liquidity Facility during the period no earlier than 40
      days
      and no later than 25 days prior to the then effective Stated Expiration Date
      of
      the Primary Liquidity Facility. In addition, so long as the initial Primary
      Liquidity Provider for the Primary Liquidity Facility is the Primary Liquidity
      Provider for the Primary Liquidity Facility, at any time after a Non-Extension
      Drawing has been made under the Primary Liquidity Facility, the Primary
      Liquidity Provider may, at its option, arrange for a Replacement Primary
      Liquidity Facility to replace the Primary Liquidity Facility.

     

    (iii) No
      Replacement Primary Liquidity Facility arranged by Continental or the Primary
      Liquidity Provider in accordance with clause (i) or (ii) above or pursuant
      to
      Section 3.5(c), respectively, shall become effective and no such Replacement
      Primary Liquidity Facility shall be deemed a "Primary Liquidity Facility" under
      the Operative Agreements, unless and until (A) each of the conditions referred
      to in sub-clauses (iv)(x) and (z) below shall have been satisfied, (B) if such
      Replacement Primary Liquidity Facility shall materially adversely affect the
      rights, remedies, interests or obligations of the Class G Certificateholders
      or
      the Class B Certificateholders under any of the Operative Agreements, the
      applicable Trustee shall have consented, in writing, to the execution and
      issuance of such Primary Replacement Liquidity Facility and (C) in the case
      of a
      Primary Replacement Liquidity Facility arranged by the Primary Liquidity
      Provider under Section 3.5(e)(ii) or pursuant to Section 3.5(c), such
      Replacement Primary Liquidity Facility is acceptable to
      Continental.

     

    (iv) In
      connection with the issuance of each Replacement Primary Liquidity Facility,
      the
      Subordination Agent shall (x) prior to the issuance of such Replacement Primary
      Liquidity Facility, obtain written confirmation from each Rating Agency that
      such Replacement Primary Liquidity Facility will not cause a reduction,
      withdrawal or suspension of any rating then in effect for any Class of
      Certificates by such Rating Agency (without regard to any downgrading of any
      rating of any Primary Liquidity Provider being replaced pursuant to Section
      3.5(c) hereof and, without regard to the Policy) and the written consent of
      the
      Policy Provider (which consent will not be unreasonably withheld or delayed),
      (y) pay all Liquidity Obligations then owing to the replaced Primary
      Liquidity Provider (which payment shall be made first from available funds
      in
      the Primary Cash Collateral Account as described in clause (v) of Section 3.5(f)
      hereof, and thereafter from any other available source, including, without
      limitation, a drawing under the Replacement Primary Liquidity Facility) and
      (z)
      cause the issuer of the Replacement Primary Liquidity Facility to deliver the
      Replacement Primary Liquidity Facility to the Subordination Agent, together
      with
      a legal opinion opining that such Replacement Primary Liquidity Facility is
      an
      enforceable obligation of such Replacement Primary Liquidity Provider. In
      connection with the issuance of each Replacement Primary Liquidity Facility,
      the

     

    
      
         

      

      
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    Primary
      Liquidity Provider being replaced agrees to return its certified copy of the
      Policy to the Policy Provider prior to the issuance of such Replacement Primary
      Liquidity Facility.

     

    (v) Upon
      satisfaction of the conditions set forth in clauses (iii) and (iv) of this
      Section 3.5(e) with respect to a Replacement Primary Liquidity Facility, (w)
      the
      replaced Primary Liquidity Facility shall terminate, (x) the Subordination
      Agent
      shall, if and to the extent so requested by Continental or the Primary Liquidity
      Provider being replaced, execute and deliver any certificate or other instrument
      required in order to terminate the replaced Primary Liquidity Facility, shall
      surrender the replaced Primary Liquidity Facility to the Primary Liquidity
      Provider being replaced and shall execute and deliver the Replacement Primary
      Liquidity Facility and any associated Fee Letter, (y) each of the parties hereto
      shall enter into any amendments to this Agreement necessary to give effect
      to
      (1) the replacement of the Primary Liquidity Provider with the Replacement
      Primary Liquidity Provider and (2) the replacement of the Primary Liquidity
      Facility with the Replacement Primary Liquidity Facility and (z) the Replacement
      Primary Liquidity Provider shall be deemed to be a Primary Liquidity Provider
      with the rights and obligations of the Primary Liquidity Provider hereunder
      and
      under the other Operative Agreements and such Replacement Primary Liquidity
      Facility shall be deemed to be the Primary Liquidity Facility hereunder and
      under the other Operative Agreements.

     

    (f) Cash
      Collateral Accounts; Above-Cap Accounts; Withdrawals;
      Investments.
      In the
      event the Subordination Agent shall draw all available amounts under the Primary
      Liquidity Facility pursuant to Section 3.5(c), 3.5(d) or 3.5(i) hereof, or
      in
      the event amounts are to be deposited in the Primary Cash Collateral Account
      pursuant to subclause (i)(A) or (i)(B) of clause "fourth" of Section 3.2,
      amounts so drawn or to be deposited, as the case may be, shall be deposited
      by
      the Subordination Agent in the Primary Cash Collateral Account. If the Above-Cap
      Liquidity Provider shall at any time make a Termination Amount payment under
      the
      Above-Cap Liquidity Facility, such Termination Amount payment shall be deposited
      by the Subordination Agent in the Above-Cap Collateral Account, to be applied
      as
      specified below in this Section 3.5(f). All amounts on deposit in each Cash
      Collateral Account shall be invested and reinvested in Eligible Investments
      in
      accordance with Section 2.2(b) hereof. 

     

    On
      each
      Interest Payment Date (or, in the case of any Special Distribution Date
      occurring in connection with the redemption, purchase or prepayment of any
      Equipment Note as contemplated in Section 2.4(a) hereof occurring (a
“Special
      Distribution Withdrawal”),
      on
      such Special Distribution Date), Investment Earnings on amounts on deposit
      in
      the Primary Cash Collateral Account (or, in the case of any Special Distribution
      Withdrawal, a fraction of such Investment Earnings equal to the Applicable
      Fraction) shall be deposited in the Collection Account (or, in the case of
      a
      Special Distribution Withdrawal, the Special Payments Account) and applied
      on
      such Interest Payment Date (or Special Distribution Date, as the case may be)
      in
      accordance with Section 3.2 or 3.3 (as applicable). Investment Earnings on
      amounts on deposit in the Above-Cap Collateral Account shall be credited to
      such
      account and applied in the same manner as the applicable Termination Amount
      payment credited thereto. Investment Earnings on amounts on deposit in the
      Above-Cap Account shall be credited to such account and applied in the same
      manner as Above-Cap Payments credited thereto. The Subordination Agent shall
      deliver a written statement to Continental, each Liquidity Provider and the
      Policy Provider one day prior to each Interest Payment Date and Special
      Distribution Date setting forth the aggregate amount of Investment Earnings
      held
      in the Cash Collateral Accounts as of such date. The 

     

    
      
         

      

      
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    Subordination
      Agent shall also deliver a written statement to Continental, each Liquidity
      Provider and the Policy Provider one day after each Distribution Date on which
      amounts have been deposited in the Above-Cap Account and/or withdrawn from
      the
      Above-Cap Collateral Account setting forth the amount of such deposit and/or
      withdrawal. In addition, from and after the date funds are so deposited, the
      Subordination Agent shall make withdrawals from such accounts as
      follows:

     

    (i) on
      each
      Distribution Date, the Subordination Agent shall, to the extent it shall not
      have received funds to pay accrued and unpaid interest due and owing on the
      Class G Certificates (at the applicable Stated Interest Rate for the Class
      G
      Certificates) after giving effect to the subordination provisions of this
      Agreement, (A) withdraw from the Primary Cash Collateral Account, and pay to
      the
      Class G Trustee, an amount equal to the lesser of (x) an amount necessary
      to pay accrued and unpaid interest (at the applicable Stated Interest Rate
      for
      the Class G Certificates) on such Class G Certificates and (y) the amount on
      deposit in the Primary Cash Collateral Account and (B) if an “Above-Cap Payment”
would have been required to be made on such Distribution Date pursuant to the
      terms of the Above-Cap Liquidity Facility were such Liquidity Facility still
      in
      effect, withdraw from the Above-Cap Collateral Account and deposit in the
      Above-Cap Account, an amount (if any) equal to the lesser of (x) an amount
      equal
      to such Above-Cap Payment and (y) the amount on deposit in the Above-Cap
      Collateral Account;

     

    (ii) on
      each
      date on which the Pool Balance of the Class G Trust shall have been reduced
      by
      payments made to the Class G Certificateholders pursuant to Section 3.2 hereof
      or otherwise, the Subordination Agent shall withdraw from the Primary Cash
      Collateral Account such amount as is necessary so that, after giving effect
      to
      the reduction of the Pool Balance on such date (and any reduction in the amounts
      on deposit in the Primary Cash Collateral Account resulting from a prior
      withdrawal of amounts on deposit in the Primary Cash Collateral Account on
      such
      date) and any transfer of Investment Earnings from such Cash Collateral Account
      to the Collection Account or the Special Payments Account on such date, an
      amount equal to the sum of the Required Amount plus (if on a Distribution Date
      not coinciding with an Interest Payment Date) Investment Earnings on deposit
      in
      the Primary Cash Collateral Account (after giving effect to any such transfer
      of
      Investment Earnings) will be on deposit in the Primary Cash Collateral Account
      and shall first, pay such withdrawn amount to the Primary Liquidity Provider
      until the Liquidity Obligations owing to the Primary Liquidity Provider shall
      have been paid in full, and second, deposit any remaining withdrawn amount
      in
      the Collection Account;

     

    (iii) if
      a
      Replacement Primary Liquidity Facility shall be delivered to the Subordination
      Agent following the date on which funds have been deposited into the Primary
      Cash Collateral Account, the Subordination Agent shall withdraw all amounts
      on
      deposit in the Primary Cash Collateral Account and shall pay such amounts to
      the
      replaced Primary Liquidity Provider until all Liquidity Obligations owed to
      such
      Person shall have been paid in full, and shall deposit any remaining amount
      in
      the Collection Account; and

     

    
      
         

      

      
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    (iv) (x)
      following the payment of Final Distributions with respect to the Class G
      Certificates, on the date on which the Subordination Agent shall have been
      notified by the Primary Liquidity Provider that the Primary Liquidity
      Obligations owed to the Primary Liquidity Provider have been paid in full,
      the
      Subordination Agent shall withdraw all amounts on deposit in the Primary Cash
      Collateral Account and shall deposit such amount in the Collection Account
      and
      (y) on the first Business Day occurring immediately after the earlier of (1)
      the
      date of the payment of Final Distributions with respect to the Class G
      Certificates and (2) the Final Legal Distribution Date for the Class G
      Certificates (after giving effect to all distributions to be made on such date),
      the Subordination Agent shall pay to the Above-Cap Liquidity Provider an amount
      equal to the sum of the amounts (if any) on deposit in (A) the Above-Cap Account
      and (B) the Above-Cap Collateral Account by wire transfer of funds to the
      account identified by the Above-Cap Liquidity Provider in writing to the
      Subordination Agent.

     

    (g) Reinstatement.
      With
      respect to any Interest Drawing under the Primary Liquidity Facility, upon
      the
      reimbursement of the Primary Liquidity Provider for all or any part of the
      amount of such Interest Drawing, together with any accrued interest thereon,
      the
      Available Amount of the Primary Liquidity Facility shall be reinstated by an
      amount equal to the amount of such Interest Drawing so reimbursed to the Primary
      Liquidity Provider but not to exceed the Stated Amount for the Primary Liquidity
      Facility; provided,
      however,
      that
      the Primary Liquidity Facility shall not be so reinstated in part or in full
      at
      any time if (x) any Equipment Note is a Non-Performing Equipment Note and a
      Liquidity Event of Default shall have occurred and be continuing or (y) a Final
      Drawing shall have occurred; provided
      further,
      that
      any payment by the Policy Provider to the Primary Liquidity Provider of any
      amounts pursuant to Section 3.6(d) or the proviso to Section 2.6(c) shall not
      reinstate the Primary Liquidity Facility, but the Primary Liquidity Facility
      (so
      long as the Primary Liquidity Facility is in effect) shall be reinstated, pro
      tanto, to the extent the Policy Provider receives any reimbursement in respect
      of such payment under clause “fourth” of Section 3.2, unless (x) any Equipment
      Note is a Non-Performing Equipment Note and a Liquidity Event of Default shall
      have occurred and be continuing or (y) a Final Drawing shall have occurred.
      In
      the event that, with respect to the Primary Liquidity Facility, (i) funds
      are withdrawn from the Primary Cash Collateral Account pursuant to clause (i)
      of
      Section 3.5(f) hereof or (ii) the Primary Liquidity Facility shall become a
      Downgraded Facility or a Non-Extended Facility at a time when unreimbursed
      Interest Drawings under the Primary Liquidity Facility have reduced the
      Available Amount thereunder to zero, then funds received by the Subordination
      Agent at any time other than (x) any time when a Liquidity Event of Default
      shall have occurred and be continuing and any Equipment Note is a Non-Performing
      Equipment Note or (y) any time after a Final Drawing shall have occurred, shall
      be deposited in such Cash Collateral Account as and to the extent provided
      in
      clause "fourth"
      of
      Section 3.2 and applied in accordance with Section 3.5(f) hereof.

     

    (h) Reimbursement.
      The
      amount of each drawing under the Primary Liquidity Facility shall be due and
      payable, together with interest thereon, on the dates and at the rates,
      respectively, provided in the Primary Liquidity Facility. The Subordination
      Agent shall have no obligation to reimburse the Above-Cap Liquidity Provider
      for
      any Above-Cap Payments and the Above-Cap Liquidity Provider shall have no
      interest in any monies credited to any Trust Account.

     

    
      
         

      

      
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    (i) Final
      Drawing.
      Upon
      receipt from the Primary Liquidity Provider of a Termination Notice with respect
      to the Primary Liquidity Facility, the Subordination Agent shall, not later
      than
      the date specified in such Termination Notice, in accordance with the terms
      of
      the Primary Liquidity Facility, request a drawing under the Primary Liquidity
      Facility of all available and undrawn amounts thereunder (a "Final
      Drawing").
      Amounts drawn pursuant to a Final Drawing shall be maintained and invested
      in
      accordance with Section 3.5(f) hereof.

     

    (j) Reduction
      of Stated Amount.
      Promptly following each date on which the Required Amount of the Primary
      Liquidity Facility is reduced as a result of a reduction in the Pool Balance
      with respect to the Class G Certificates (including by reason of a Policy
      Provider Election) or otherwise, the Stated Amount of the Primary Liquidity
      Facility shall automatically be reduced to an amount equal to the Required
      Amount with respect to the Primary Liquidity Facility (as calculated by the
      Subordination Agent after giving effect to such payment).

     

    (k) Relation
      to Subordination Provisions.
      Subject
      in the case of the Primary Liquidity Facility to the proviso contained in clause
      (i) of Section 3.5(b), Interest Drawings under the Primary Liquidity Facility
      and withdrawals from the Primary Cash Collateral Account and the Above-Cap
      Account, in each case, in respect of interest on the Class G Certificates,
      will
      be distributed to the Class G Trustee, notwithstanding Sections 2.1(b) and
      3.2.

     

    (l) Assignment
      of Liquidity Facility.
      The
      Subordination Agent agrees not to consent to the assignment by any Liquidity
      Provider of any of its rights or obligations under any Liquidity Facility or
      any
      interest therein, unless (i) Continental shall have consented to such
      assignment and (ii) each Rating Agency shall have provided a Ratings
      Confirmation in respect of such assignment and (iii) in the case of the Primary
      Liquidity Facility only, the Policy Provider shall have consented to such
      assignment (which consent shall not be unreasonably withheld or delayed);
provided,
      that
      the Subordination Agent shall consent to such assignment if the conditions
      in
      the foregoing clauses (i), (ii) and (iii) are satisfied, and the foregoing
      is
      not intended to and shall not be construed to limit the rights of the Primary
      Liquidity Provider under Section 3.5(e)(ii).

     

    (m) Interest
      Coverage.
      The
      interest payable by the Liquidity Provider under any Liquidity Facility shall
      include interest accruing during the pendency of any bankruptcy, insolvency,
      receivership or other similar proceeding, regardless of whether allowed or
      allowable in such proceeding.

     

    (n) Termination
      upon Release of Policy.
      In the
      event that (x) one or more Class B Certificateholders elect to purchase all
      of
      the Class G Certificates pursuant to Section 5.01 of the Trust Supplements
      and,
      in connection therewith, elect to surrender the Policy to the Policy Provider
      for cancellation (thereby releasing the Policy Provider from its obligations
      under the Policy) or (y) the Class G Certificateholders shall have otherwise
      elected to so surrender the Policy pursuant to Section 5.01(b) of the Class
      G
      Trust Supplement, the Primary Liquidity Facility shall be terminated (such
      termination, the "Special
      Termination")
      upon
      (i) the payment of all Policy Provider Amounts (other than amounts referred
      to
      in clause (c) of the definition of Excess Reimbursement Obligations) to the
      Policy Provider and (ii) the payment of all outstanding Liquidity Obligations
      to
      the Primary Liquidity Provider, in each case, as required by Section 5.01 of
      the
      Trust Supplements.

     

     

    
      
         

      

      
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    SECTION
      3.6. The
      Policy.
      (a)  Interest
      Drawings.
      If on
      any Regular Distribution Date (other than the Final Legal Distribution Date)
      after
      giving effect to the application of available funds in accordance with the
      subordination provisions of this Agreement and to the application of Prior
      Funds,
      the
      Subordination Agent does not then have sufficient funds available for the
      payment of all amounts due and owing in respect of accrued and unpaid interest
      on the Class G Certificates at the applicable Stated Interest Rate (calculated
      assuming that Continental will not cure any Payment Default) ("Accrued
      Class G Interest"),
      then
      the Subordination Agent (A) prior to 12:00 p.m. (New York City time) on such
      Distribution Date shall deliver a Notice for Payment, as provided in the Policy,
      to the Policy Provider and its Fiscal Agent, requesting a Policy Drawing under
      the Policy (for payment into the Policy Account) in an amount sufficient to
      enable the Subordination Agent to pay such Accrued Class G Interest and
      (B) upon receipt shall pay such amount from the Policy Account to the Class
      G Trustee in payment of such Accrued Class G Interest.

     

    (b) Proceeds
      Deficiency Drawing.
      If on
      any Special Distribution Date (which is not also an Election Distribution Date
      or a Special Distribution Date established pursuant to the second paragraph
      of
      Section 3.6(c)) established by the Subordination Agent by reason of its receipt
      of a Special Payment constituting the proceeds from the sale of the Series
      G
      Equipment Note (as to which there has been a payment default or which has been
      accelerated) or of the Pledged Spare Parts comprising all of the Pledged Spare
      Parts subject to the Lien of the Indenture at the time of such sale, as the
      case
      may be (each, a “Disposition”),
      after
      giving effect to the application of such proceeds in accordance with the
      subordination provisions of this Agreement and to the application of Prior
      Funds, the Subordination Agent does not then have sufficient funds available
      for
      (A) the payment in full of the then outstanding Pool Balance of the Class G
      Certificates and (B) the payment of accrued and unpaid interest thereon at
      the
      Stated Interest Rate for the Class G Certificates for the period from the
      immediately preceding Regular Distribution Date to such Special Distribution
      Date (calculated assuming that Continental will not cure any Payment Default),
      then the Subordination Agent (i) prior to 12:00 p.m. (New York City time)
      on such Special Distribution Date shall deliver a Notice for Payment, as
      provided in the Policy, to the Policy Provider and its Fiscal Agent, requesting
      a Policy Drawing under the Policy (for payment into the Policy Account) in
      an
      amount sufficient to enable the Subordination Agent to pay the outstanding
      Pool
      Balance of the Class G Certificates and the amount of such accrued and unpaid
      interest and (ii) upon receipt shall pay such amount from such Policy Account
      to
      the Class G Trustee in payment of such reduction in the outstanding Pool Balance
      of the Class G Certificates plus such accrued and unpaid interest.

     

    (c) No
      Proceeds Drawing.
      If a
      Payment Default exists with respect to the Series G Equipment Note (without
      giving effect to any Acceleration or any payments by any Liquidity Provider
      or
      the Policy Provider) for a period of eight consecutive Interests Periods (such
      period, the “Default
      Period”)
      (regardless of whether the Subordination Agent has received a Special Payment
      constituting proceeds from any Disposition during such Default Period) and
      continues to exist on the Regular Distribution Date on which such eighth
      Interest Period ends, on the 25th
      day
      following such Regular Distribution Date (or if such 25th
      day is
      not a Business Day, the next Business Day), unless a Policy Provider Election
      has been made, the Subordination Agent shall deliver a Notice for Payment,
      as
      provided in the Policy, to the Policy Provider and its Fiscal Agent, requesting
      a Policy Drawing under such Policy (for payment into the Policy Account) in
      an
      amount equal to the then outstanding principal amount of the Series G Equipment
      

     

    
      
         

      

      
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    Note
      (less the amount of any Policy Drawings previously paid by the Policy Provider
      in respect of principal) plus accrued and unpaid interest thereon at the Stated
      Interest Rate for the Class G Certificates (calculated assuming that Continental
      will not cure any Payment Default) from the immediately preceding Regular
      Distribution Date to such Special Distribution Date. Unless a Policy Provider
      Election has been made or deemed to have been made, the Subordination Agent
      shall promptly, but not less than 25 days prior to such Special Distribution
      Date, send to the Class G Trustee and the Policy Provider a Written Notice
      setting forth the non-receipt of any such Special Payment and establishing
      such
      Special Distribution Date as the date for the distribution of the proceeds
      of
      such Policy Drawing. No later than 12:00 p.m. (New York City time) on the
      specified Special Distribution Date, the Subordination Agent shall make the
      specified Policy Drawing and upon its receipt of the proceeds thereof pay the
      amount thereof from the Policy Account to the Class G Trustee in reduction
      of
      the outstanding Pool Balance of the Class G Certificates together with such
      accrued and unpaid interest thereon. For the avoidance of doubt, after the
      payment in full of such amount under this Section 3.6(c), the Subordination
      Agent shall have no right to make any further Policy Drawings under this Section
      3.6(c) except for Avoided Payments as provided in Section 3.6(f).

     

    Notwithstanding
      the foregoing, the Policy Provider has the right, by Written Notice to the
      Subordination Agent given at least 10 days prior to the end of any such 24-month
      period, so long as no Policy Provider Default shall have occurred and be
      continuing, to make an election (the "Policy
      Provider Election")
      (which
      Policy Provider Election shall be deemed to have been given on the day that
      is
      ten days prior to end of such 24-month period, unless (x) the Policy Provider
      shall have affirmatively elected by notice to the Subordination Agent to not
      make such Policy Provider Election on or prior to such day or (y) a Policy
      Provider Default shall have occurred and be continuing as of such day) instead
      (a) to pay on such Special Distribution Date an amount equal to any shortfall
      in
      the scheduled interest payable but not paid (whether by Continental or by the
      application of proceeds from the sale of any Collateral in connection with
      the
      exercise of remedies under the Indenture) on the Series G Equipment Note
      (calculated assuming that Continental will not cure any Payment Default), during
      such 24-month period (reduced by the amount of funds received from the Policy
      Provider in connection with any prior Policy Drawing made under Section 3.6(b)
      hereof and from the Primary Liquidity Facility, the Primary Cash Collateral
      Account, the Above-Cap Account or the Policy Provider to the extent of any
      Policy Drawings pursuant to Section 3.6(a) made as a result of a failure of
      the
      Primary Liquidity Provider to honor Interest Drawings under Section 2.02(a)
      of
      the Primary Liquidity Facility or a failure of the Above-Cap Liquidity Provider
      and the Liquidity Guarantor to make an Above-Cap Payment under the Above-Cap
      Liquidity Facility), (b) thereafter, on each Regular Distribution Date until
      the
      establishment of an Election Distribution Date or a Special Distribution Date
      referred to in clause (c)(i) below, to permit drawings under the Policy for
      an
      amount equal to the scheduled principal (without regard to any Acceleration
      thereof or any Redemption Notice that Continental has failed to honor but taking
      into account any adjustments previously made for redemptions) and interest
      payments (without regard to any funds available under the Primary Liquidity
      Facility, the Primary Cash Collateral Account or the Above-Cap Account and
      calculated assuming Continental will not cure any Payment Default) at the Stated
      Interest Rate for the Class G Certificates scheduled to be paid on the Series
      G
      Equipment Note on the related payment date (each such interest payment on the
      Series G Equipment Note, an “Election
      Interest Payment”),
      except that the Policy Provider shall not be required to pay (x) any amount
      in
      respect of principal under this clause (b) on any Regular Distribution Date
      (1)  if it has 

     

    
      
         

      

      
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    theretofore
      honored Policy Drawings under Section 3.6(b) or (c) hereof in respect of
      principal of the Series G Equipment Note or (2) if in connection with
      exercise of remedies under the Indenture there has previously been a reduction
      in the outstanding principal balance of the Series G Equipment Note as a result
      of the application of proceeds from the sale of Collateral, to the extent that
      after giving effect to the distribution of any such amount or proceeds or both
      in accordance with the provisions of this Agreement the Pool Balance of the
      Class G Certificates as of such Regular Distribution Date would be less than
      the
      Pool Balance of the Class G Certificates as of such Regular Distribution Date
      were all payments on the Series G Equipment Note to have been made by
      Continental when due (without regard to Acceleration or any Redemption Notice
      that Continental has failed to honor but taking into account any adjustments
      previously made for redemptions) in accordance with Schedule 1 to such Series
      G
      Equipment Note nor (y) for the avoidance of doubt, any amount in respect of
      interest under this clause (b) on such Regular Distribution Date other than
      accrued and unpaid interest (at the applicable Stated Interest Rate calculated
      assuming that Continental will not cure any Payment Default) on the Pool Balance
      of the Class G Certificates as of such Regular Distribution Date (calculated
      without giving effect to any Policy Drawing in respect of principal under this
      clause (b) on such Regular Distribution Date) and (c) (i) on any Business Day
      (other than a Regular Distribution Date) elected by the Policy Provider upon
      20
      days' Written Notice to the Subordination Agent and the Class G Trustee (which
      shall be a Special Distribution Date), have the right to direct the
      Subordination Agent, or (ii) following the occurrence of a Policy Provider
      Default, on any Business Day (which shall be a Special Distribution Date)
      specified by the Subordination Agent upon 20 days' Written Notice to the Class
      G
      Trustee (each such Business Day in the case of clause (ii) an "Election
      Distribution Date"),
      permit the Subordination Agent, in each case, to make a Policy Drawing under
      the
      Policy for an amount (as determined after giving effect to the application
      of
      available funds in accordance with the subordination provisions of this
      Agreement on such Special Distribution Date) equal to the then outstanding
      Pool
      Balance of the Class G Certificates and accrued and unpaid interest on such
      amount at the Stated Interest Rate for the Class G Certificates (calculated
      assuming that Continental will not cure any Payment Default) from the
      immediately preceding Regular Distribution Date to such Election Distribution
      Date or such Special Distribution Date, as the case may be, without derogation
      of the Policy Provider's continuing obligations for all previous Policy Drawings
      that remain unpaid in respect of the Series G Equipment Note. The Subordination
      Agent shall make each such drawing referred to in this paragraph under the
      Policy (for payment into the Policy Account) no later than 12:00 p.m. (New
      York
      City time) on each such date and upon its receipt of the proceeds thereof pay
      the amount thereof from the Policy Account to the Class G Trustee in reduction
      of the outstanding Pool Balance of the Class G Certificates, together with
      such
      accrued and unpaid interest thereon. 

     

    (d) Primary
      Liquidity Provider Drawing.
      On or
      after the Business Day which is the earliest to occur of (i) the date on which
      an Interest Drawing shall have been made under the Primary Liquidity Facility
      and remains unreimbursed for 24 months, (ii) the date on which any Downgrade
      Drawing, Non-Extension Drawing or Final Drawing that was deposited into the
      Primary Cash Collateral Account shall have been applied to pay any scheduled
      payment of interest on the Class G Certificates and remains unreplenished to
      the
      Primary Cash Collateral Account or unreimbursed to the Primary Liquidity
      Provider, as the case may be, for 24 months and (iii) the date on which all
      of
      the Equipment Notes have been Accelerated and remain unpaid for 24 months (in
      each case, disregarding any reimbursements from payments by the Policy Provider
      and from any Special Payment constituting proceeds from the sale of Equipment
      Notes 

     

    
      
         

      

      
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    or
      Collateral during such 24-month period) (such Business Day, the “Liquidity
      Provider Reimbursement Date”),
      the
      Policy Provider (upon at least 20 days’ prior notice from the Subordination
      Agent on behalf of the Primary Liquidity Provider, which notice can be given
      in
      advance of the expiry of such 24-month period but cannot become effective until
      the Liquidity Provider Reimbursement Date) will be required to honor drawings
      under the Policy by the Subordination Agent on behalf of the Primary Liquidity
      Provider in an amount sufficient to repay all outstanding drawings under the
      Primary Liquidity Facility, together with interest accrued thereon in accordance
      with the Primary Liquidity Facility. The Primary Liquidity Provider hereby
      appoints the Subordination Agent as its agent for purposes of making the drawing
      pursuant to this clause (d) and clause (vii) of the definition of “Deficiency
      Amount” in the Policy and the Subordination Agent hereby accepts such
      appointment and agrees to make such drawing at the direction of the Primary
      Liquidity Provider and to promptly distribute all amounts received in respect
      of
      such drawing to the Primary Liquidity Provider.

     

    (e) Final
      Policy Drawing.
      If on
      the Final Legal Distribution Date of the Class G Certificates after giving
      effect to the application of available funds in accordance with the
      subordination provisions of this Agreement and to the application of Prior
      Funds, the Subordination Agent does not then have sufficient funds available
      on
      such date for the payment in full of the Final Distributions (calculated as
      of
      such date but excluding any accrued and unpaid Premium and calculated assuming
      that Continental will not cure any Payment Default) on the Class G Certificates,
      then the Subordination Agent shall (i) prior to 12:00 p.m. (New York City time)
      on such date deliver a Notice for Payment, as provided in the Policy, to the
      Policy Provider and its Fiscal Agent, requesting a Policy Drawing under such
      Policy (for payment into the Policy Account) in an amount equal to the minimum
      amount sufficient to enable the Subordination Agent to pay the Final
      Distributions (calculated as of such date but excluding any accrued and unpaid
      Premium and calculated assuming that Continental will not cure any Payment
      Default) on the Class G Certificates and (ii) upon receipt pay such amount
      from the Policy Account to the Class G Trustee in payment of such
      amount.

     

    (f) Avoidance
      Drawings.
      If at
      any time the Subordination Agent shall have actual knowledge of the issuance
      of
      any Order, the Subordination Agent shall promptly give notice thereof to the
      Class G Trustee, the Primary Liquidity Provider and the Policy Provider. The
      Subordination Agent shall thereupon calculate the relevant Avoided Payments
      resulting therefrom and shall promptly: (a) send to the Class G Trustee a
      Written Notice of such amounts and (b) prior to the expiration of the
      Policy, deliver to the Policy Provider and its Fiscal Agent a Notice of Avoided
      Payment under such Policy, together with a copy of the documentation required
      by
      such Policy with respect thereto, requesting a Policy Drawing thereunder (for
      payment to the receiver, conservator, debtor-in-possession, trustee in
      bankruptcy or the Subordination Agent, as applicable (for deposit into the
      Policy Account)) in an amount equal to the amount of relevant Avoided Payment.
      To the extent that any portion of such Avoided Payment is to be paid to the
      Subordination Agent, such Written Notice shall also set the date for the
      distribution of such portion of the proceeds of such Policy Drawing which date
      shall constitute a Special Distribution Date and shall be the earlier of three
      Business Days after the date of the expiration of the Policy and the Business
      Day that immediately follows the 25th
      day
      after the date of such Written Notice. Upon receipt, the Subordination Agent
      shall pay the proceeds of the specified Policy Drawing under the Policy to
      the
      Class G Trustee.

     

    

      
        
           

        

        
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    (g) Application
      of Policy Drawings.
      Notwithstanding anything to the contrary contained in this Agreement (including,
      without limitation, Sections 2.4 and 3.2), except as provided in Sections 3.5(b)
      and 3.6(d) hereof, all payments received by the Subordination Agent in respect
      of a Policy Drawing (including, without limitation, that portion, if any, of
      the
      proceeds of a Policy Drawing for any Avoided Payment that is to be paid to
      the
      Subordination Agent and not to any receiver, conservator, debtor-in-possession
      or trustee in bankruptcy as provided in the Policy) shall be promptly paid
      from
      the Policy Account to the Class G Trustee for distribution to the Class G
      Certificateholders. 

     

    (h) Limitation
      to Outstanding Pool Balance; Interest on Policy Drawings.
      Notwithstanding anything to the contrary in this Section 3.6, except as provided
      in Section 3.6(f), at no time shall the Subordination Agent make any Policy
      Drawing under the Policy under clause (b), (c) or (e) of this Section 3.6 in
      excess of the then outstanding Pool Balance of the Class G Certificates and
      accrued and unpaid interest at the Stated Interest Rate on the Class G
      Certificates (calculated assuming that Continental will not cure any Payment
      Default). Nothing contained in this Intercreditor Agreement shall alter or
      amend
      the liabilities, obligations, requirements or procedures of the Policy Provider
      under the Policy, and the Policy Provider shall not be obligated to make payment
      except at the times and in the amounts and under the circumstances expressly
      set
      forth in the Policy.

     

    (i) Resubmission
      of Notice for Payment.
      If the
      Policy Provider at any time informs the Subordination Agent in accordance with
      the Policy that a Notice for Payment or Notice of Avoided Payment submitted
      by
      the Subordination Agent does not meet the requirements of such Policy, the
      Subordination Agent shall, as promptly as possible after being so informed,
      submit to the Policy Provider and its Fiscal Agent an amended and revised Notice
      for Payment or Notice of Avoided Payment, as the case may be, and shall pay
      to
      the Class G Trustee out of the Policy Account the amount received pursuant
      to
      such amended or revised Notice for Payment or Notice of Avoided Payment, as
      the
      case may be, when received.

     

    (j) Subrogation.
      The
      Policy Provider will be subrogated to all of the rights of (i) the Class G
      Certificateholders to payment on the Class G Certificates only to the extent
      of
      payment made in respect thereof under the Policy as set forth herein and (ii)
      the rights of the Primary Liquidity Provider to payment under the Primary
      Liquidity Facility only to the extent of payment made in respect thereof under
      the Policy as set forth herein, such subrogation rights to be expressly subject
      to Section 3.2 hereof and the other provisions of this Agreement, and without
      duplication of any amounts payable to the Policy Provider under this Agreement
      or any Policy Provider Document.

     

    (k) Interest
      Coverage.
      The
      interest payable by the Policy Provider under the Policy shall include interest
      accruing during the pendency of any bankruptcy, insolvency, receivership or
      other similar proceeding, regardless of whether allowed or allowable in such
      proceeding.

    
      

        
          
             

          

          
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    ARTICLE
      IV

     

    EXERCISE
      OF REMEDIES

     

    SECTION
      4.1. Directions
      from the Controlling Party.
      (a) (i)
      Following the occurrence and during the continuation of an Indenture Default
      under the Indenture, the Controlling Party shall direct the Subordination Agent,
      which in turn shall direct the Mortgagee under the Indenture, in the exercise
      of
      remedies available to the holders of the Equipment Notes, including, without
      limitation, the ability to vote all the Equipment Notes in favor of Accelerating
      the Equipment Notes in accordance with the provisions of the Indenture. Subject
      to the provisions of the next paragraph, if the Equipment Notes have been
      Accelerated following an Indenture Default, the Controlling Party may direct
      the
      Subordination Agent to sell, assign, contract to sell or otherwise dispose
      of
      and deliver some or all of the Pledged Spare Parts or all (but not less than
      all) of the Equipment Notes to any Person at public or private sale, at any
      location at the option of the Controlling Party, all upon such terms and
      conditions as it may reasonably deem advisable in accordance with applicable
      law.

     

    (ii) Notwithstanding
      the foregoing, so long as any Certificates remain Outstanding, during the period
      ending on the date which is nine months after the earlier of (x) the
      Acceleration of the Equipment Notes or (y) the occurrence of a Continental
      Bankruptcy Event, without the consent of each Trustee, no Pledged Spare Parts
      or
      Equipment Notes may be sold if the net proceeds from such sale would be less
      than the Minimum Sale Price.

     

    (iii) At
      the
      request of the Controlling Party, the Subordination Agent shall from time to
      time during the continuance of an Indenture Default (and before the occurrence
      of a Triggering Event) commission an Appraisal with respect to the Collateral
      subject to the Indenture.

     

    (iv) After
      a
      Triggering Event occurs and any Equipment Note is a Non-Performing Equipment
      Note, the Subordination Agent shall obtain an Appraisal with respect to the
      Collateral as soon as practicable and an additional Appraisal on or prior to
      each anniversary of the date of such initial Appraisal; provided
      that if
      the Controlling Party reasonably objects to the appraised value of the
      Collateral shown in such Appraisal, the Controlling Party shall have the right
      to obtain or cause to be obtained a substitute Appraisal (including any
      Appraisal based upon physical inspection of the Collateral). For the avoidance
      of doubt, the obligation of the Subordination Agent to obtain an Appraisal
      under
      this Section 4.1(a)(iv) shall not in any way diminish or discharge Continental’s
      obligation to provide Appraisals under the Collateral Maintenance
      Agreement.

     

    (b) Following
      the occurrence and during the continuance of an Indenture Default, the
      Controlling Party shall take such actions as it may reasonably deem most
      effectual to complete the sale or other disposition of the Collateral or the
      Equipment Notes. In addition, in lieu of any sale, assignment, contract to
      sell
      or other disposition, the Controlling Party may maintain or cause the
      Subordination Agent to maintain possession of the Equipment Notes and continue
      to apply monies received in respect of the Equipment Notes in accordance with
      Article III hereof. In addition, in lieu of such sale, assignment, contract
      to
      sell or other disposition, or in lieu of such maintenance of possession, the
      Controlling Party may, subject to the terms and 

     

    
      
         

      

      
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    conditions
      of the Indenture, instruct the Mortgagee to foreclose on the Lien on the
      Collateral or to take any other remedial action permitted under the Indenture
      or
      under any applicable law.

     

    SECTION
      4.2. Remedies
      Cumulative.
      Each and
      every right, power and remedy given to the Trustees, each Liquidity Provider,
      the Policy Provider, the Controlling Party or the Subordination Agent
      specifically or otherwise in this Agreement shall be cumulative and shall be
      in
      addition to every other right, power and remedy herein specifically given or
      now
      or hereafter existing at law, in equity or by statute, and each and every right,
      power and remedy whether specifically herein given or otherwise existing may,
      subject always to the terms and conditions hereof, be exercised from time to
      time and as often and in such order as may be deemed expedient by any Trustee,
      any Liquidity Provider, the Policy Provider, the Controlling Party or the
      Subordination Agent, as appropriate, and the exercise or the beginning of the
      exercise of any power or remedy shall not be construed to be a waiver of the
      right to exercise at the same time or thereafter any other right, power or
      remedy. No delay or omission by any Trustee, any Liquidity Provider, the Policy
      Provider, the Controlling Party or the Subordination Agent in the exercise
      of
      any right, remedy or power or in the pursuit of any remedy shall impair any
      such
      right, power or remedy or be construed to be a waiver of any default or to
      be an
      acquiescence therein.

     

    SECTION
      4.3. Discontinuance
      of Proceedings.
      In case
      any party to this Agreement (including the Controlling Party in such capacity)
      shall have instituted any Proceeding to enforce any right, power or remedy
      under
      this Agreement by foreclosure, entry or otherwise, and such Proceeding shall
      have been discontinued or abandoned for any reason or shall have been determined
      adversely to the Person instituting such Proceeding, then and in every such
      case
      each such party shall, subject to any determination in such Proceeding, be
      restored to its former position and rights hereunder, and all rights, remedies
      and powers of such party shall continue as if no such Proceeding had been
      instituted.

     

    SECTION
      4.4. Right
      of Certificateholders, Liquidity Provider and the Policy Provider to Receive
      Payments Not to Be Impaired.
      Anything
      in this Agreement to the contrary notwithstanding but subject to each Trust
      Agreement, the right of any Certificateholder, any Liquidity Provider or the
      Policy Provider, respectively, to receive payments hereunder (including without
      limitation pursuant to Section 2.4 or 3.2 hereof) when due, or to institute
      suit
      for the enforcement of any such payment on or after the applicable Distribution
      Date, shall not be impaired or affected without the consent of such
      Certificateholder, Liquidity Provider or Policy Provider,
      respectively.

     

    SECTION
      4.5. Undertaking
      for Costs.
      In any
      Proceeding for the enforcement of any right or remedy under this Agreement
      or in
      any Proceeding against any Controlling Party or the Subordination Agent for
      any
      action taken or omitted by it as Controlling Party or Subordination Agent,
      as
      the case may be, a court in its discretion may require the filing by any party
      litigant in the suit of an undertaking to pay the costs of the suit, and the
      court in its discretion may assess reasonable costs, including reasonable
      attorneys' fees and expenses, against any party litigant in the suit, having
      due
      regard to the merits and good faith of the claims or defenses made by the party
      litigant. The provisions of this Section do not apply to a suit instituted
      by
      the Subordination Agent, a Liquidity Provider, the Policy Provider or a Trustee
      or a suit by Certificateholders holding more than 10% of the original principal
      amount of any Class of Certificates.

     

     

     

    
      
         

      

      
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    ARTICLE
      V

     

    DUTIES
      OF
      THE SUBORDINATION AGENT;

    AGREEMENTS
      OF TRUSTEES, ETC.

     

    SECTION
      5.1. Notice
      of Indenture Default or Triggering Event.
      (a) In
      the event the Subordination Agent shall have actual knowledge of the occurrence
      of an Indenture Default or a Triggering Event, as promptly as practicable,
      and
      in any event within 10 days after obtaining knowledge thereof, the Subordination
      Agent shall transmit by mail or courier to the Rating Agencies, the Liquidity
      Providers, the Policy Provider and the Trustees notice of such Indenture Default
      or Triggering Event, unless such Indenture Default or Triggering Event shall
      have been cured or waived. For all purposes of this Agreement, in the absence
      of
      actual knowledge on the part of a Responsible Officer, the Subordination Agent
      shall not be deemed to have knowledge of any Indenture Default or Triggering
      Event unless notified in writing by one or more Trustees, one or more of the
      Liquidity Providers, the Policy Provider or one or more
      Certificateholders.

     

    (b) Other
      Notices.
      The
      Subordination Agent will furnish to each Liquidity Provider, the Policy Provider
      and each Trustee, promptly upon receipt thereof, duplicates or copies of all
      reports, notices, requests, demands, certificates, financial statements and
      other instruments furnished to the Subordination Agent as registered holder
      of
      the Equipment Notes or otherwise in its capacity as Subordination Agent to
      the
      extent the same shall not have been otherwise directly distributed to such
      Liquidity Provider, Policy Provider or Trustee, as applicable, pursuant to
      the
      express provision of any other Operative Agreement.

     

     

    (c) Upon
      the
      occurrence of an Indenture Default, the Subordination Agent shall instruct
      each
      Trustee to, and each Trustee shall, request that DTC post on its internet
      bulletin board a securities position listing setting forth the names of all
      the
      parties reflected on DTC's books as holding interests in the
      Certificates.

     

    (d) Reports.
      Promptly after the occurrence of a Triggering Event or an Indenture Default
      resulting from the failure of Continental to make payments on any Equipment
      Note
      and on every Regular Distribution Date while the Triggering Event or such
      Indenture Default shall be continuing, the Subordination Agent will provide
      to
      each Trustee, the Liquidity Providers, the Policy Provider, the Rating Agencies
      and Continental a statement setting forth the following
      information:

     

    (i)
      after
      a Continental Bankruptcy Event, whether the Pledged Spare Parts are
      (A) subject to the 60-day period of Section 1110 of the Bankruptcy
      Code, (B) subject to an election by Continental under Section 1110(a)
      of the Bankruptcy Code, (C) covered by an agreement contemplated by
      Section 1110(b) of the Bankruptcy Code or (D) not subject to any of
      (A), (B) or (C);

     

    (ii)
      to
      the best of the Subordination Agent's knowledge, after requesting such
      information from Continental, the location of the Pledged Spare
      Parts;

     

    
      
         

      

      
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    (iii)
      the
      current Pool Balance of each Class of Certificates and the outstanding principal
      amount of all Equipment Notes;

     

    (iv)
      the
      expected amount of interest which will have accrued on the Equipment Notes
      and
      on the Certificates as of the next Regular Distribution Date;

     

    (v)
      the
      amounts paid to each person on such Distribution Date pursuant to this
      Agreement;

     

    (vi)
      details of the amounts paid on such Distribution Date identified by reference
      to
      the relevant provision of this Agreement and the source of payment (by party,
      if
      applicable);

     

    (vii)
      if
      the Subordination Agent has made a Final Drawing under the Primary Liquidity
      Facility;

     

    (viii)
      the amounts currently owed to each Liquidity Provider;

     

    (ix)
      the
      amounts drawn under each Liquidity Facility; 

    

    (x)
      the
      amounts owed to the Policy Provider; and

    

    (xi)
      after a Continental Bankruptcy Event, any operational reports filed by
      Continental with the bankruptcy court which are available to the Subordination
      Agent on a non-confidential basis.

     

    SECTION
      5.2. Indemnification.
      The
      Subordination Agent shall not be required to take any action or refrain from
      taking any action under Section 5.1 (other than the first sentence thereof)
      or
      Article IV hereof unless the Subordination Agent shall have been indemnified
      (to
      the extent and in the manner reasonably satisfactory to the Subordination Agent)
      against any liability, cost or expense (including counsel fees and expenses)
      which may be incurred in connection therewith. The Subordination Agent shall
      not
      be under any obligation to take any action under this Agreement and nothing
      contained in this Agreement shall require the Subordination Agent to expend
      or
      risk its own funds or otherwise incur any financial liability in the performance
      of any of its duties hereunder or in the exercise of any of its rights or powers
      if it shall have reasonable grounds for believing that repayment of such funds
      or adequate indemnity against such risk or liability is not reasonably assured
      to it. The Subordination Agent shall not be required to take any action under
      Section 5.1 (other than the first sentence thereof) or Article IV hereof, nor
      shall any other provision of this Agreement be deemed to impose a duty on the
      Subordination Agent to take any action, if the Subordination Agent shall have
      been advised by counsel that such action is contrary to the terms hereof or
      is
      otherwise contrary to law.

     

    SECTION
      5.3. No
      Duties Except as Specified in Intercreditor Agreement.
      The
      Subordination Agent shall not have any duty or obligation to take or refrain
      from taking any action under, or in connection with, this Agreement, except
      as
      expressly provided by the terms of this Agreement; and no implied duties or
      obligations shall be read into this Agreement against the Subordination Agent.
      The Subordination Agent agrees that it will, in its individual capacity

     

    
      
         

      

      
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    and
      at
      its own cost and expense (but without any right of indemnity in respect of
      any
      such cost or expense under Sections 5.2 or 7.1 hereof) promptly take such action
      as may be necessary to duly discharge all Liens on any of the Trust Accounts
      or
      any monies deposited therein which result from claims against it in its
      individual capacity not related to its activities hereunder or any other
      Operative Agreement.

     

    SECTION
      5.4. Notice
      from the Liquidity Providers and Trustees.
      If any
      Liquidity Provider or Trustee has notice of an Indenture Default or a Triggering
      Event, such Person shall promptly give notice thereof to all other Liquidity
      Providers, the Policy Provider and Trustees and to the Subordination Agent,
      provided,
      however,
      that no
      such Person shall have any liability hereunder as a result of its failure to
      deliver any such notice.

     

     

    ARTICLE
      VI

     

    THE
      SUBORDINATION AGENT

     

    SECTION
      6.1. Authorization;
      Acceptance of Trusts and Duties.
      The
      Class G Trustee hereby designates and appoints the Subordination Agent as the
      agent and trustee of the Class G Trustee under the Liquidity Facilities and
      the
      Policy Provider Agreement and authorizes the Subordination Agent to enter into
      each Liquidity Facility and the Policy Provider Agreement as agent and trustee
      for the Class G Trustee. Each of the Liquidity Providers, the Policy Provider
      and the Trustees hereby designates and appoints the Subordination Agent as
      the
      Subordination Agent under this Agreement. WTC hereby accepts the duties hereby
      created and applicable to it as the Subordination Agent and agrees to perform
      the same but only upon the terms of this Agreement and agrees to receive and
      disburse all monies received by it in accordance with the terms hereof. The
      Subordination Agent shall not be answerable or accountable under any
      circumstances, except (a) for its own willful misconduct or gross negligence
      (or
      ordinary negligence in the handling of funds), (b) as provided in Sections
      2.2
      or 5.3 hereof and (c) for liabilities that may result from the material
      inaccuracy of any representation or warranty of the Subordination Agent made
      in
      its individual capacity in any Operative Agreement. The Subordination Agent
      shall not be liable for any error of judgment made in good faith by a
      Responsible Officer of the Subordination Agent, unless it is proved that the
      Subordination Agent was negligent in ascertaining the pertinent
      facts.

     

    SECTION
      6.2. Absence
      of Duties.
      The
      Subordination Agent shall have no duty to see to any recording or filing of
      this
      Agreement or any other document, or to see to the maintenance of any such
      recording or filing.

     

    SECTION
      6.3. No
      Representations or Warranties as to Documents.
      The
      Subordination Agent in its individual capacity does not make nor shall be deemed
      to have made any representation or warranty as to the validity, legality or
      enforceability of this Agreement or any other Operative Agreement or as to
      the
      correctness of any statement contained in any thereof, except for the
      representations and warranties of the Subordination Agent, made in its
      individual capacity, under any Operative Agreement to which it is a party.
      The
      Certificateholders, the Trustees, the Liquidity Providers and the Policy
      Provider make no representation or warranty hereunder whatsoever.

     

     

    
      
         

      

      
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    SECTION
      6.4. No
      Segregation of Monies; No Interest.
      Any
      monies paid to or retained by the Subordination Agent pursuant to any provision
      hereof and not then required to be distributed to any Trustee, the Primary
      Liquidity Provider or the Policy Provider as provided in Articles II and III
      hereof or deposited into one or more Trust Accounts need not be segregated
      in
      any manner except to the extent required by such Articles II and III and by
      law,
      and the Subordination Agent shall not (except as otherwise provided in Section
      2.2 hereof) be liable for any interest thereon; provided,
      however,
      that
      any payments received or applied hereunder by the Subordination Agent shall
      be
      accounted for by the Subordination Agent so that any portion thereof paid or
      applied pursuant hereto shall be identifiable as to the source
      thereof.

     

    SECTION
      6.5. Reliance;
      Agents; Advice of Counsel.
      The
      Subordination Agent shall not incur liability to anyone in acting upon any
      signature, instrument, notice, resolution, request, consent, order, certificate,
      report, opinion, bond or other document or paper believed by it to be genuine
      and believed by it to be signed by the proper party or parties. As to the Pool
      Balance of any Trust as of any date, the Subordination Agent may for all
      purposes hereof rely on a certificate signed by any Responsible Officer of
      the
      applicable Trustee, and such certificate shall constitute full protection to
      the
      Subordination Agent for any action taken or omitted to be taken by it in good
      faith in reliance thereon. As to any fact or matter relating to the Liquidity
      Providers, the Policy Provider or the Trustees the manner of ascertainment
      of
      which is not specifically described herein, the Subordination Agent may for
      all
      purposes hereof rely on a certificate, signed by any Responsible Officer of
      the
      applicable Liquidity Provider, Policy Provider or Trustee, as the case may
      be,
      as to such fact or matter, and such certificate shall constitute full protection
      to the Subordination Agent for any action taken or omitted to be taken by it
      in
      good faith in reliance thereon. The Subordination Agent shall assume, and shall
      be fully protected in assuming, that each of the Liquidity Providers, the Policy
      Provider and each of the Trustees are authorized to enter into this Agreement
      and to take all action to be taken by them pursuant to the provisions hereof,
      and shall not inquire into the authorization of each of the Liquidity Providers,
      the Policy Provider and the Trustees with respect thereto. In the administration
      of the trusts hereunder, the Subordination Agent may execute any of the trusts
      or powers hereof and perform its powers and duties hereunder directly or through
      agents or attorneys and may consult with counsel, accountants and other skilled
      persons to be selected and retained by it, and the Subordination Agent shall
      not
      be liable for the acts or omissions of any agent appointed with due care or
      for
      anything done, suffered or omitted in good faith by it in accordance with the
      advice or written opinion of any such counsel, accountants or other skilled
      persons.

     

    SECTION
      6.6. Capacity
      in Which Acting.
      The
      Subordination Agent acts hereunder solely as agent and trustee herein and not
      in
      its individual capacity, except as otherwise expressly provided in the Operative
      Agreements.

     

    SECTION
      6.7. Compensation.
      The
      Subordination Agent shall be entitled to reasonable compensation, including
      expenses and disbursements, for all services rendered hereunder and shall have
      a
      priority claim to the extent set forth in Article III hereof on all monies
      collected hereunder for the payment of such compensation, to the extent that
      such compensation shall not be paid by others. The Subordination Agent agrees
      that it shall have no right against any Trustee, Liquidity Provider or the
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    services
      as agent under this Agreement. The provisions of this Section 6.7 shall survive
      the termination of this Agreement.

     

    SECTION
      6.8. May
      Become Certificateholder.
      The
      institution acting as Subordination Agent hereunder may become a
      Certificateholder and have all rights and benefits of a Certificateholder to
      the
      same extent as if it were not the institution acting as the Subordination
      Agent.

     

    SECTION
      6.9. Subordination
      Agent Required; Eligibility.
      There
      shall at all times be a Subordination Agent hereunder which shall be a
      corporation organized and doing business under the laws of the United States
      of
      America or of any State or the District of Columbia having a combined capital
      and surplus of at least $100,000,000 (or the obligations of which, whether
      now
      in existence or hereafter incurred, are fully and unconditionally guaranteed
      by
      a corporation organized and doing business under the laws of the United States
      of America, any State thereof or of the District of Columbia and having a
      combined capital and surplus of at least $100,000,000), if there is such an
      institution willing and able to perform the duties of the Subordination Agent
      hereunder upon reasonable or customary terms. Such corporation shall be a
      citizen of the United States and shall be authorized under the laws of the
      United States or any State thereof or of the District of Columbia to exercise
      corporate trust powers and shall be subject to supervision or examination by
      federal, state or District of Columbia authorities. If such corporation
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of any of the aforesaid supervising or examining authorities,
      then,
      for the purposes of this Section 6.9, the combined capital and surplus of such
      corporation shall be deemed to be its combined capital and surplus as set forth
      in its most recent report of condition so published.

     

    In
      case
      at any time the Subordination Agent shall cease to be eligible in accordance
      with the provisions of this Section, the Subordination Agent shall resign
      immediately in the manner and with the effect specified in Section
      8.1.

     

    SECTION
      6.10. Money
      to Be Held in Trust.
      All
      Equipment Notes, monies and other property deposited with or held by the
      Subordination Agent pursuant to this Agreement shall be held in trust for the
      benefit of the parties entitled to such Equipment Notes, monies and other
      property. All such Equipment Notes, monies or other property shall be held
      in
      the Trust Department of the institution acting as Subordination Agent
      hereunder.

     

     

    ARTICLE
      VII

     

    INDEMNIFICATION
      OF SUBORDINATION AGENT

     

    SECTION
      7.1. Scope
      of Indemnification.
      The
      Subordination Agent shall be indemnified hereunder to the extent and in the
      manner described in Section 8.1 of the Note Purchase Agreement. The indemnities
      contained in such Sections of such agreements shall survive the termination
      of
      this Agreement.

     

     

     

    
      
         

      

      
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    ARTICLE
      VIII

     

    SUCCESSOR
      SUBORDINATION AGENT

     

    SECTION
      8.1. Replacement
      of Subordination Agent; Appointment of Successor.
      The
      Subordination Agent may resign at any time by so notifying the Trustees, the
      Liquidity Providers and the Policy Provider. The Controlling Party may remove
      the Subordination Agent for cause by so notifying the Subordination Agent and
      may appoint a successor Subordination Agent. The Controlling Party shall remove
      the Subordination Agent if:

     

    (1) the
      Subordination Agent fails to comply with Section 6.9 hereof;

     

    (2) the
      Subordination Agent is adjudged bankrupt or insolvent;

     

    (3) a
      receiver or other public officer takes charge of the Subordination Agent or
      its
      property; or

     

    (4) the
      Subordination Agent otherwise becomes incapable of acting.

     

    If
      the
      Subordination Agent resigns or is removed or if a vacancy exists in the office
      of Subordination Agent for any reason (the Subordination Agent in such event
      being referred to herein as the retiring Subordination Agent), the Controlling
      Party shall promptly appoint a successor Subordination Agent.

     

    A
      successor Subordination Agent shall deliver (x) a written acceptance of its
      appointment as Subordination Agent hereunder to the retiring Subordination
      Agent
      and (y) a written assumption of its obligations hereunder and under each
      Liquidity Facility and the Policy Provider Agreement to each party hereto,
      upon
      which the resignation or removal of the retiring Subordination Agent shall
      become effective, and the successor Subordination Agent shall have all the
      rights, powers and duties of the Subordination Agent under this Agreement.
      The
      successor Subordination Agent shall mail a notice of its succession to the
      Liquidity Providers, the Policy Provider and the Trustees. The retiring
      Subordination Agent shall promptly transfer its rights under each of the
      Liquidity Facilities and all of the property held by it as Subordination Agent
      to the successor Subordination Agent.

     

    If
      a
      successor Subordination Agent does not take office within 60 days after the
      retiring Subordination Agent resigns or is removed, the retiring Subordination
      Agent or one or more of the Trustees may petition any court of competent
      jurisdiction for the appointment of a successor Subordination
      Agent.

     

    If
      the
      Subordination Agent fails to comply with Section 6.9 hereof (to the extent
      applicable), one or more of the Trustees, one or more of the Liquidity Providers
      or the Policy Provider may petition any court of competent jurisdiction for
      the
      removal of the Subordination Agent and the appointment of a successor
      Subordination Agent.

     

    Notwithstanding
      the foregoing, no resignation or removal of the Subordination Agent shall be
      effective unless and until a successor has been appointed. No appointment of
      a

     

    
      
         

      

      
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    successor
      Subordination Agent shall be effective unless and until the Rating Agencies
      shall have delivered a Ratings Confirmation.

     

     

    ARTICLE
      IX

     

    SUPPLEMENTS
      AND AMENDMENTS

     

    SECTION
      9.1. Amendments,
      Waivers, etc.
      (a)  This Agreement may not be supplemented, amended or modified
      without the consent of each Trustee (acting, except in the case of any amendment
      pursuant to Section 3.5(e)(v)(y) hereof with respect to any Replacement Primary
      Liquidity Facility, any amendment pursuant to Section 3.5(c)(iv) hereof with
      respect to any Replacement Above-Cap Liquidity Facility or any amendment
      contemplated by the last sentence of this Section 9.1(a), with the consent
      of
      holders of Certificates of the related Class evidencing interests in the related
      Trust aggregating not less than a majority in interest in such Trust or as
      otherwise authorized pursuant to the relevant Trust Agreement), the
      Subordination Agent, each Liquidity Provider and the Policy Provider;
provided,
      however,
      that
      this Agreement may be supplemented, amended or modified without the consent
      of
      any Trustee if such supplement, amendment or modification cures an ambiguity
      or
      inconsistency or does not materially adversely affect such Trustee or the
      holders of the related Class of Certificates; provided further,
      however,
      that,
      if such supplement, amendment or modification (A) would (x) directly or
      indirectly modify or supersede, or otherwise conflict with, Section 2.2(b),
      Section 3.5(e), Section 3.5(f)(other than the last sentence thereof), Section
      3.5(l), the last sentence of this Section 9.1(a), the second sentence of Section
      10.6 or this proviso (collectively, the "Continental
      Provisions")
      or (y)
      otherwise adversely affect the interests of a potential Replacement Primary
      Liquidity Provider or of Continental with respect to its ability to replace
      the
      Primary Liquidity Facility or with respect to its payment obligations under
      any
      Operative Agreement or (B) is made pursuant to the last sentence of this Section
      9.1(a), then such supplement, amendment or modification shall not be effective
      without the additional written consent of Continental. Notwithstanding the
      foregoing, without the consent of each Certificateholder, each Liquidity
      Provider and the Policy Provider, no supplement, amendment or modification
      of
      this Agreement may (i) reduce the percentage of the interest in any Trust
      evidenced by the Certificates issued by such Trust necessary to consent to
      modify or amend any provision of this Agreement or to waive compliance therewith
      or (ii) except as provided in this Section 9.1(a), modify Section 2.4 or 3.2
      hereof, relating to the distribution of monies received by the Subordination
      Agent hereunder from the Equipment Notes or pursuant to the Liquidity Facilities
      or the Policy. Nothing contained in this Section shall require the consent
      of a
      Trustee at any time following the payment of Final Distributions with respect
      to
      the related Class of Certificates. If the Replacement Primary Liquidity Facility
      for the Primary Liquidity Facility in accordance with Section 3.5(e) hereof
      is
      to be comprised of more than one instrument as contemplated by the definition
      of
      the term "Replacement Primary Liquidity Facility", then each of the parties
      hereto agrees to amend this Agreement to incorporate appropriate mechanics
      for
      multiple Primary Liquidity Facilities for an individual Trust. If the
      Replacement Above-Cap Liquidity Facility for the Above-Cap Liquidity Facility
      in
      accordance with Section 3.5(c)(iv) hereof is to be comprised of more than one
      instrument as contemplated by the definition of the term "Replacement Above-Cap
      Liquidity Facility", then each of the parties hereto agrees to amend this
      Agreement to incorporate appropriate mechanics for multiple Above-Cap Liquidity
      Facilities for an individual Trust.

     

    
      
         

      

      
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    (b) In
      the
      event that the Subordination Agent, as the registered holder of any Equipment
      Note, receives a request for the giving of any notice or for its consent to
      any
      amendment, supplement, modification, approval, consent or waiver under such
      Equipment Note, the Indenture, the Note Purchase Agreement or other related
      document, (i) if no Indenture Default shall have occurred and be continuing,
      the
      Subordination Agent shall request directions with respect to each Series of
      Equipment Notes from the Trustee of the Trust which holds such Series of
      Equipment Notes and shall vote or consent in accordance with the directions
      of
      such Trustee except that so long as (A) Final Distributions on the Class G
      Certificates have not been made or any Policy Provider Amounts (other than
      any
      Excess Reimbursement Obligations) remain outstanding and (B) no Policy Provider
      Default shall have occurred and be continuing, the Subordination Agent shall
      request directions from the Policy Provider rather than the Class G Trustee
      with
      respect to the Series G Equipment Note, and (ii) if any Indenture Default shall
      have occurred and be continuing with respect to such Indenture, the
      Subordination Agent will exercise its voting rights as directed by the
      Controlling Party, subject to Sections 4.1 and 4.4 hereof; provided
      that no
      such amendment, modification or waiver shall, without the consent of each
      Liquidity Provider, the Policy Provider and each affected Certificateholder,
      (x)
      reduce the amount of principal or interest payable by Continental, or change
      the
      time of payment or method of calculation of any amount, under any Equipment
      Note, (y) modify any of the provisions of Section 5.01, 5.02(c), 5.02(d), 6.02,
      10.01, or of Article II or III of the Indenture, the definitions of “Break
      Amount”, “Default”, “Event of Default”, “Interest Period”, “Majority in Interest
      of Note Holders”, “Note Holder”, “Premium” or “Special Default” or the
      percentage of Note Holders required to take or approve any action under the
      Indenture or (z) reduce, modify or amend any indemnities in favor of the
      Mortgagee or the Note Holders (except that the Mortgagee may consent to any
      waiver or reduction of an indemnity payable to it) or permit the creation of
      any
      Lien on the Collateral or any part thereof (other than Permitted Liens (as
      defined in the Indenture)) or deprive any Note Holder of the benefit of the
      Lien
      of the Indenture on the Collateral, except in connection with the exercise
      of
      remedies.
      In
      addition, the Subordination Agent shall not consent to any amendment or
      modification of (i) the definitions of “Maximum Available Commitment” or
“Liquidity Event of Default” under the Primary Liquidity Facility or (ii) the
      definition of “LIBOR” or Section 6(b) of the Reference Agency Agreement, in each
      case, without the prior written consent of the Above-Cap Liquidity
      Provider.

     

    SECTION
      9.2. Subordination
      Agent Protected.
      If, in
      the reasonable opinion of the institution acting as the Subordination Agent
      hereunder, any document required to be executed pursuant to the terms of Section
      9.1 affects any right, duty, immunity or indemnity with respect to it under
      this
      Agreement or any Liquidity Facility or the Policy, the Subordination Agent
      may
      in its discretion decline to execute such document.

     

    SECTION
      9.3. Effect
      of Supplemental Agreements.
      Upon the
      execution of any amendment, consent or supplement hereto pursuant to the
      provisions hereof, this Agreement shall be and be deemed to be and shall be
      modified and amended in accordance therewith and the respective rights,
      limitations of rights, obligations, duties and immunities under this Agreement
      of the parties hereto and beneficiaries hereof shall thereafter be determined,
      exercised and enforced hereunder subject in all respects to such modifications
      and amendments, and all the terms and conditions of any such supplemental
      agreement shall be and be deemed to be and shall be part of the terms and
      conditions of this Agreement for any and all purposes. In executing or accepting
      any supplemental agreement permitted by this Article IX, the Subordination
      Agent

     

    
      
         

      

      
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    shall
      be
      entitled to receive, and shall be fully protected in relying upon, an opinion
      of
      counsel stating that the execution of such supplemental agreement is authorized
      or permitted by this Agreement.

     

    SECTION
      9.4. Notice
      to Rating Agencies.
      Promptly
      upon receipt of any amendment, consent, modification, supplement, waiver or
      direction by the Policy Provider contemplated by this Article IX and prior
      to
      taking any action required to be taken thereunder, the Subordination Agent
      shall
      send a copy thereof to each Rating Agency.

     

    Upon
      the
      reasonable request of any Rating Agency in writing, the Subordination Agent
      and
      the Trustees shall provide to such Rating Agency such information available
      to
      the Subordination Agent and the Trustees as may be relevant to maintaining
      such
      Rating Agency's rating on the Certificates. During the continuance of a
      Triggering Event or an Indenture Default resulting from a Payment Default,
      the
      Subordination Agent and Trustees shall permit each Rating Agency, upon
      reasonable notice and on a periodic basis, to be provided copies of documents
      in
      the possession of the Subordination Agent and Trustees in their respective
      capacities as such reasonably related to the transactions contemplated by the
      Operative Agreements and, on a reasonable periodic basis, to meet or confer
      with
      officers and employees of the Subordination Agent and Trustees in their
      respective capacities as such to discuss such transactions, so long as such
      actions are reasonably related to maintaining such Rating Agency's rating on
      the
      Certificates.

     

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    SECTION
      10.1. Termination
      of Intercreditor Agreement.
      Following payment of Final Distributions with respect to each Class of
      Certificates and the payment in full of all Liquidity Obligations to the Primary
      Liquidity Provider and all Policy Provider Amounts to the Policy Provider and
      provided
      that
      there shall then be no other amounts due to the Certificateholders, the
      Trustees, the Primary Liquidity Provider, the Policy Provider and the
      Subordination Agent hereunder or under the Trust Agreements, and that the
      commitment of the (i) Primary Liquidity Provider under the Primary Liquidity
      Facility and (ii) Policy Provider under the Policy shall have expired or been
      terminated, this Agreement and the trusts created hereby shall terminate and
      this Agreement shall be of no further force or effect. Except as aforesaid
      or
      otherwise provided, this Agreement and the trusts created hereby shall continue
      in full force and effect in accordance with the terms hereof.

     

    SECTION
      10.2. Intercreditor
      Agreement for Benefit of Trustees, Liquidity Providers, the Policy Provider
      and
      Subordination Agent.
      Subject
      to the second sentence of Section 10.6 and the provisions of Sections 4.4 and
      9.1, nothing in this Agreement, whether express or implied, shall be construed
      to give to any Person other than the Trustees, the Liquidity Providers, the
      Policy Provider and the Subordination Agent any legal or equitable right, remedy
      or claim under or in respect of this Agreement.

     

     

    
      
         

      

      
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    SECTION
      10.3. 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, mailed by certified mail, postage prepaid, or by confirmed
      telecopy and

     

    (i) if
      to the
      Subordination Agent, addressed to it at its office at:

     

    Wilmington
      Trust Company

    One
      Rodney Square

    1100
      N.
      Market Street

    Wilmington,
      DE 19890-1605

    Attention:
      Corporate Capital Market Services

    Telecopy:
      (302) 636-4140

     

    (ii) if
      to any
      Trustee, addressed to it at its office at:

     

    Wilmington
      Trust Company

    One
      Rodney Square

    1100
      N.
      Market Street

    Wilmington,
      DE 19890-1605

    Attention:
      Corporate Capital Market Services

    Telecopy:
      (302) 636-4140

     

    (iii) if
      to the
      Primary Liquidity Provider, addressed to it at its office at:

     

    Morgan
      Stanley Bank

    2500
      Lake
      Park Blvd., Suite #3C

    West
      Valley City, Utah 84120

    Attention:
      Richard Felix, Chairman and Chief Credit Officer

    Telephone:
      (212) 276-2972

    Telecopy:
      (212) 507-3669

    

    with
      a
      copy of any Notice of Borrowing to:

     

    Morgan
      Stanley

    1585
      Broadway, 38th
      Floor

    New
      York,
      NY 10036

    Attention:
      Su Bai, Executive Director

    Telephone:
      (212) 761-4729

    Fax:
      (212) 507-5834

    

    and

    

    Morgan
      Stanley

    1221
      Avenue of the Americas, 27th
      Floor

    New
      York,
      NY 10020

    
      
         

      

      
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    Attention:
      Andrew Neuberger, Managing Director 

    Telephone:
      (212) 762-6401

    Fax:
      (212) 507-4137

    

    (iv) if
      to the
      Above-Cap Liquidity Provider, addressed to it at its office at:

     

    Morgan
      Stanley Capital Services Inc.

    Transaction
      Management Group

    1585
      Broadway

    New
      York,
      NY 10036-8293

    Attention:
      Chief Legal Officer

    Telecopy:
      (212) 507-4622

    

    (v) if
      to the
      Policy Provider, addressed to it at its office at:

     

    Financial
      Guaranty Insurance Company

    125
      Park
      Avenue

    New
      York,
      NY 10017

    Attention:
      SF Surveillance

    Facsimile:  (212)
      312-3222

    
      	 	 	
              Telephone:
                (212) 312-3029

            

    

    
      	 	 	 

    

    with
      a
      copy to:

    

    Latham
      & Watkins LLP

    885
      Third
      Avenue

    Suite
      1000

    New
      York,
      NY 10022

    Attention:
      Robert A. Greenspon

    Telephone:
      (212) 906-1375

    
      	 	 	
              Telecopy:
                (212) 751-4864 

            

    

    

    Whenever
      any notice in writing is required to be given by any Trustee, Liquidity
      Provider, Policy Provider or the Subordination Agent to any of the other of
      them, such notice shall be deemed given and such requirement satisfied when
      such
      notice is received. A copy of any notice given by the Trustee, the Liquidity
      Providers or the Subordination Agent shall be given to the Policy Provider;
      provided
      that the
      failure to do so shall not impair the validity of any such notice or the Policy
      Provider's obligations hereunder and under the Policy. 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.

     

    SECTION
      10.4. 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.

     

     

    
      
         

      

      
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    SECTION
      10.5. No
      Oral Modifications or Continuing Waivers.
      No terms
      or provisions of this Agreement may be changed, waived, discharged or terminated
      orally, but only by an instrument in writing signed by the party or other Person
      against whom enforcement of the change, waiver, discharge or termination is
      sought and any other party or other Person whose consent is required pursuant
      to
      this Agreement and any waiver of the terms hereof shall be effective only in
      the
      specific instance and for the specific purpose given.

     

    SECTION
      10.6. Successors
      and Assigns.
      All
      covenants and agreements contained herein shall be binding upon, and inure
      to
      the benefit of, each of the parties hereto and the successors and assigns of
      each, all as herein provided. In addition, the Continental Provisions shall
      inure to the benefit of Continental and its successors and assigns, and (without
      limitation of the foregoing) Continental is hereby constituted, and agreed
      to
      be, an express third party beneficiary of the Continental Provisions.

     

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

     

    SECTION
      10.8. Counterpart
      Form.
      This
      Agreement may be executed by the parties hereto in separate counterparts, each
      of which when so executed and delivered shall be an original, but all such
      counterparts shall together constitute but one and the same
      agreement.

     

    SECTION
      10.9. Subordination.
      (a)  As between the Liquidity Providers and the Policy Provider, on
      the one hand, and the Trustees and the Certificateholders, on the other hand,
      and as among the Trustees and the related Certificateholders, this Agreement
      shall be a subordination agreement for purposes of Section 510 of the
      United States Bankruptcy Code, as amended from time to time.

     

    (b) Notwithstanding
      the provisions of this Agreement, if prior to the payment in full to the (i)
      Primary Liquidity Provider of all Liquidity Obligations then due and payable
      and
      (ii) Policy Provider of all Policy Provider Amounts then due and payable, any
      party hereto shall have received any payment or distribution in respect of
      Equipment Notes or any other amount under the Indenture or other Operative
      Agreements which, had the subordination provisions of this Agreement been
      properly applied to such payment, distribution or other amount, would not have
      been distributed to such Person, then such payment, distribution or other amount
      shall be received and held in trust by such Person and paid over or delivered
      to
      the Subordination Agent for application as provided herein.

     

    (c) If
      any
      Trustee, the Primary Liquidity Provider, the Policy Provider or the
      Subordination Agent receives any payment in respect of any obligations owing
      hereunder (or, in the case of the Primary Liquidity Provider or the Policy
      Provider, in respect of the Liquidity Obligations or the Policy Provider
      Amounts, as the case may be), which is subsequently invalidated, declared
      preferential, set aside and/or required to be repaid to a trustee, receiver
      or
      other party, then, to the extent of such payment, such obligations (or, in
      the
      case of the Primary Liquidity Provider or the Policy Provider, such Liquidity
      Obligations or the Policy Provider Amounts, as the case may be) intended to
      be
      satisfied shall be revived and continue in full force and effect as if such
      payment had not been received.

     

    
      
         

      

      
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    (d) The
      Trustees (on behalf of themselves and the holders of Certificates), the Primary
      Liquidity Provider, the Policy Provider and the Subordination Agent confirm
      that
      the payment priorities specified in Section 3.2 shall apply in all
      circumstances, notwithstanding the fact that the obligations owed to the
      Trustees and the holders of Certificates are secured by certain assets and
      the
      Liquidity Obligations and Policy Provider Amounts may not be so secured. The
      Trustees expressly agree (on behalf of themselves and the holders of
      Certificates) not to assert priority over the holders of Liquidity Obligations
      or Policy Provider Amounts (except as specifically set forth in Section 3.2)
      due
      to their status as secured creditors in any bankruptcy, insolvency or other
      legal proceeding.

     

    (e) Each
      of
      the Trustees (on behalf of themselves and the holders of Certificates), the
      Primary Liquidity Provider, the Policy Provider and the Subordination Agent
      may
      take any of the following actions without impairing its rights under this
      Agreement:

     

    (i) obtain
      a
      Lien on any property to secure any amounts owing to it hereunder, including,
      in
      the case of the Primary Liquidity Provider and the Policy Provider, the
      Liquidity Obligations or the Policy Provider Amounts, as the case may
      be,

     

    (ii) obtain
      the primary or secondary obligation of any other obligor with respect to any
      amounts owing to it hereunder, including, in the case of the Primary Liquidity
      Provider and the Policy Provider, any of the Liquidity Obligations or the Policy
      Provider Obligations, as the case may be,

     

    (iii) renew,
      extend, increase, alter or exchange any amounts owing to it hereunder,
      including, in the case of the Primary Liquidity Provider and the Policy
      Provider, any of the Liquidity Obligations or the Policy Provider Obligations,
      as the case may be, or release or compromise any obligation of any obligor
      with
      respect thereto,

     

    (iv) refrain
      from exercising any right or remedy, or delay in exercising such right or
      remedy, which it may have, or

     

    (v) take
      any
      other action which might discharge a subordinated party or a surety under
      applicable law;

     

    provided,
      however,
      that
      the taking of any such actions by any of the Trustees, the Primary Liquidity
      Provider, the Policy Provider or the Subordination Agent shall not prejudice
      the
      rights or adversely affect the obligations of any other party under this
      Agreement.

     

    SECTION
      10.10. Governing
      Law.
      THIS
      AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION,
      VALIDITY AND PERFORMANCE.

     

    SECTION
      10.11. Submission
      to Jurisdiction; Waiver of Jury Trial.

    
       

      (a) Each
        of
        the parties hereto hereby irrevocably and unconditionally:

      

        
          
             

          

          
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    (i) submits
      for itself and its property in any legal action or proceeding relating to this
      Agreement or any other Operative Agreement, or for recognition and enforcement
      of any judgment in respect hereof or thereof, to the nonexclusive general
      jurisdiction of the courts of the State of New York, the courts of the United
      States of America for the Southern District of New York, and the appellate
      courts from any thereof;

     

    (ii) consents
      that any such action or proceeding may be brought in such courts, and waives
      any
      objection that it may now or hereafter have to the venue of any such action
      or
      proceeding in any such court or that such action or proceeding was brought
      in an
      inconvenient court and agrees not to plead or claim the same;

     

    (iii) agrees
      that service of process in any such action or proceeding may be effected by
      mailing a copy thereof by registered or certified mail (or any substantially
      similar form of mail), postage prepaid, to each party hereto at its address
      set
      forth in Section 10.3 hereof, or at such other address of which the other
      parties shall have been notified pursuant thereto; and

     

    (iv) agrees
      that nothing herein shall affect the right to effect service of process in
      any
      other manner permitted by law or shall limit the right to sue in any other
      jurisdiction.

     

    (b) EACH
      OF
      THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL
      OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT
      OR
      ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT
      AND
      THE RELATIONSHIP THAT IS BEING ESTABLISHED, including, without limitation,
      contract claims, tort claims, breach of duty claims and all other common law
      and
      statutory claims. Each of the parties warrants and represents that it has
      reviewed this waiver with its legal counsel, and that it knowingly and
      voluntarily waives its jury trial rights following consultation with such legal
      counsel. THIS WAIVER IS IRREVOCABLE, AND CANNOT BE MODIFIED EITHER ORALLY OR
      IN
      WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
      SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

     

    

     

    
      
        
          

           

        

         

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective officers thereunto duly authorized, as of the
      day
      and year first above written, and acknowledge that this Agreement has been
      made
      and delivered in the City of New York, and this Agreement has become effective
      only upon such execution and delivery.

     

    
      
        
          
            	 	 	 
	 	
                    WILMINGTON
                      TRUST COMPANY,

                    
                      not
                        in its individual capacity but solely as

                      Trustee
                        for each of the Trusts

                    

                  
	 
 	 
 	 
 
	 	
                    By:

                  	 
	 	Name:	 
	 	Title:	 

          

            

           

        

      

       

    

     

    
      
         

      

      
        
        

        
          

        

      

      
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                      MORGAN
                        STANLEY BANK,

                      
                        as
                          Primary Liquidity Provider

                      

                    
	 
 	 
 	 
 
	 	
                      By:

                    	 
	 	Name:	 
	 	Title:	 

            

            
              	
                    	
                       

                      By:

                    	 
	 	Name:	 
	 	Title:	 

               

            

          

        

      

    

    
       

       

      

        
          
             

          

          
            
            

            
              

            

          

          
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                        MORGAN
                          STANLEY CAPITAL SERVICES INC.,

                        
                          as
                            Above-Cap Liquidity Provider

                        

                      
	 
 	 
 	 
 
	 	
                        By:

                      	 
	 	Name:	 
	 	Title:	 

              

              
                	
                         

                         

                      	
                         

                        By:

                      	 
	 	Name:	 
	 	Title:	 

                 

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
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                    FINANCIAL
                      GUARANTY INSURANCE

                    COMPANY,
                      as Policy Provider

                  
	 
 	 
 	 
 
	 	
                    By:

                  	 
	 	Name:	 
	 	Title:	 

          

           

           

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
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                      WILMINGTON
                        TRUST COMPANY, 

                      not
                        in its individual capacity except as expressly

                      set
                        forth herein but solely as Subordination

                      Agent
                        and trustee

                    

                  
	 
 	 
 	 
 
	 	
                    By:

                  	 
	 	Name:	 
	 	Title:	 

          

           

           

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
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    Schedule
      2.2(b)

     

    Upon
      the
      funding of the Above-Cap Account or the Above-Cap Collateral Account or the
      maturity or redemption of any investment of funds in any such account (such
      funds, the "Funds"), the Above-Cap Liquidity Provider shall send a notice to
      the
      Subordination Agent containing a list of Eligible Investments (the "Specified
      Investments") which shall contain at least 10 investments in open market
      commercial paper of corporations incorporated under the laws of the United
      States of America or any state thereof.

     

    Following
      receipt of such notice, the Subordination Agent shall use its best efforts
      to
      invest or reinvest the Funds in any Specified Investment. If no Specified
      Investment is then available, the Subordination Agent shall invest or reinvest
      the Funds in any other Eligible Investment selected by the Subordination
      Agent.

     

    Following
      such investment or reinvestment of the Funds by the Subordination Agent in
      any
      Specified Investment or other Eligible Investment, the Subordination Agent
      shall
      deliver a written statement to the Above-Cap Liquidity Provider setting forth
      for each such Specified Investment or Eligible Investment the CUSIP number
      or
      other similar number for such obligation (or, if such obligation does not have
      such a number, (i) the name of the issuer, (ii) its maturity date, (iii) its
      yield or rate of return and (iv) its rating, if rated by any nationally
      recognized rating agency).

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