Document:

Exhibit

Exhibit 10.5

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“Agreement”), is made and entered into as of the 20th day of January, 2015, with an effective date of April 1, 2015 (the “Effective Date”) between Crestwood Operations LLC, a Delaware limited liability company (“Employer”), and Robert Halpin (“Employee”), and amends and restates in its entirety the employment agreement entered into by and between Employer and Employee dated January 21, 2014 (the “Prior Employment Agreement”).
W I T N E S S E T H:
WHEREAS, Employer and Employee desire to amend and restate the Prior Employment Agreement in its entirety as of the Effective Date, and Employer desires to employ Employee, and Employee desires to be employed by Employer, pursuant to the terms and conditions set forth in this Agreement.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants, and obligations contained herein, Employer and Employee agree as follows:
SECTION 1:  EMPLOYMENT AND DUTIES.

1.1    Employer agrees to employ Employee, and Employee agrees to be employed solely by Employer, beginning as of the Effective Date and, except as set forth below, continuing through December 31, 2016 (the “Initial Term”), unless earlier terminated pursuant to Section 3 of this Agreement.  Following expiration of the Initial Term, this Agreement will be automatically renewed for successive 1-year terms following the Initial Term (each, a “Renewal Term” and, together with the Initial Term, the “Term”) unless either party gives the other party no less than 30 days’ written notice prior to the expiration of the Term of such Party’s intent not to renew the Agreement (a “Notice of Non-Renewal”).  Notwithstanding the foregoing, the Term (including any Renewal Terms) and Employee’s employment pursuant to this Agreement may be terminated at any time as set forth below, subject to the terms of this Agreement.  At the expiration of the Term following delivery of a Notice of Non-Renewal, Employee’s employment with Employer (and any affiliates or assignees of Employer) shall terminate, and this Agreement shall have no further force or effect except with respect to Employee’s obligations pursuant to Section 3.5.
1.2    Beginning as of the Effective Date, Employee shall be employed as Chief Financial Officer.  Employee shall also serve in such other executive capacities as may be reasonably requested from time to time by Employer or the Board of Directors (the “Board”) of the Employer, and shall report directly to the Chief Executive Officer of the Employer.  Employee agrees to perform diligently and to the best of Employee’s abilities, and in a trustworthy, competent, businesslike, and efficient manner, the duties and services pertaining to any such position as reasonably determined by Employer, as well as such additional or different duties and services that Employee from time to time may be reasonably directed to perform by Employer.  Employee shall, during the period of Employee’s employment by Employer, devote Employee’s full business time, energy, and best efforts to the business and affairs of Employer.

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1.3    Employee shall at all times comply with and be subject to such policies and procedures that Employer may establish from time to time for Employer’s executives and employees, including, without limitation, Employer’s Code of Business Conduct as adopted by Employer and as amended from time to time (the “Code of Business Conduct”). 
1.4    Except with the advance written permission of the Board, Employee may not engage or participate, directly or indirectly, in any other business, investment, or activity that (a) could interfere with Employee’s performance of Employee’s duties hereunder, (b) is contrary to the best interests of Employer, Crestwood Equity Partners, LP, Crestwood Midstream Partners, LP, or any of their respective subsidiaries (each a “Related Entity”), or (c) requires any significant portion of Employee’s business time. Notwithstanding the foregoing, the parties recognize that Employee may engage in passive personal investments and other non-competitive business activities that do not conflict with the business and affairs of Employer or any Related Entities or materially interfere with Employee’s performance of Employee’s duties hereunder; provided, that with the exception of any civic, charitable, or educational boards or committees that do not unreasonably interfere with Employee’s performance of Employee’s duties hereunder, Employee may not serve as a manager or on the board of directors or similar body of any entity other than Employer or a Related Entity during the Term without prior approval therefor by the Board.  
1.5    Employee acknowledges and agrees that Employee has a fiduciary duty of loyalty, fidelity, and allegiance to act at all times in the best interests of Employer and the other Related Entities and to do no act that could, directly or indirectly, injure any such entity’s business, interests, or reputation.  In furtherance of the foregoing, Employee shall present to the Employer all material business opportunities or ventures known to Employee, independently or with others, that are within the purposes of Employer or any Related Entity, including, without limitation, opportunities that may compete with Employer or a Related Entity or could reasonably be expected to be implemented by Employer or a Related Entity.  It is agreed that any direct or indirect interest in connection with, or any benefit from, any outside activities, particularly commercial activities, which might in any way adversely affect Employer or any of the Related Entities involves a possible conflict of interest.  In keeping with Employee’s fiduciary duties to Employer, Employee agrees that during the employment relationship Employee shall not knowingly become involved in a conflict of interest with Employer or any of the Related Entities, whether directly or indirectly through a spouse or other family member, or upon discovery thereof, allow such a conflict to continue.  Moreover, Employee agrees that Employee shall disclose to the Employer any facts which might involve such a conflict of interest that has not been approved in writing by the Employer.
SECTION 2:    COMPENSATION AND BENEFITS.

2.1    Employee’s base salary during the Term shall be Three Hundred Seventy-Five Thousand Dollars ($375,000) per annum, subject to increase at the discretion of the Board (“Base Salary”), which shall be paid in accordance with Employer’s standard payroll practice.  In addition to the Base Salary, Employee shall be eligible to be considered for a target bonus (a “Bonus”) in each calendar year during the Term, payable in accordance with and pursuant to Employer’s then-

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current bonus plan (“Bonus Plan”).  For the 2015 bonus year, the target bonus for Employee will be equal to 80% of his Base Salary and shall be subject to such terms and conditions as are established by the Board (including, if applicable, its Compensation Committee) for awards of equity compensation made to similarly situated executives of the Employer.  Thereafter, the target bonus for Employee will be comparable to the bonus opportunity provided to similarly situated executives of the Employer. The Bonus Plan will be implemented and administered by the Board, and any Bonuses payable thereunder shall be based upon a number of factors determined and set by the Board in its sole discretion.  Such factors may include, but not be limited to, the achievement by Employer of certain performance objectives, and the operation of Employer within the budgets approved by the Board.  Employee must be employed by Employer at the time a Bonus is declared as a condition of receiving any such Bonus.
2.2    During the Term, Employee shall be eligible to receive annual awards under the terms of the Crestwood Equity Partners LP Long Term Incentive Plan and the Crestwood Midstream Partners LP Long Term Incentive Plan.  For the 2015 grant cycle, the Employee received an award of restricted units, with a total target equity grant level for Employee equal to 140% of his Base Salary.  These restricted units were granted equally from both plans and are subject to such terms and conditions as are established by the Board (including, if applicable, its Compensation Committee) for awards of equity compensation made to similarly situated executives of the Employer.  Beginning in the 2016 grant cycle, the target grant level for Employee will be comparable to the level of equity granted to similarly situated executives of the Employer, provided such grants shall be made at the discretion of the Board.  Equity awards granted to Employee under the foregoing plans shall include provisions that provide for accelerated vesting in the event of a Change in Control, upon termination of Employee’s employment by the Employer without Cause, or upon Employee’s resignation with Employee Cause (for purposes of this Section 2.2 only, each of “Change in Control,” “Cause” and “Employee Cause” to be as such terms are defined in the respective award agreements).
2.3    During the Term, Employer shall pay or reimburse Employee for all reasonable and customary business expenses actually incurred by Employee during the Term in the course of Employee’s employment; provided that such expenses are incurred and accounted for in accordance with Employer’s applicable policies and procedures.  Employer shall provide to Employee officer/director liability insurance coverage to cover any claims that may be made arising from Employee’s past, present, or future activities on behalf of Employer or any Related Entity, in the same manner and of the same kind as such insurance is provided to the other officers and directors of Employer.
2.4    During the Term, Employer shall furnish Employee with such fringe benefit programs that are maintained by Employer and that are made available to Employer’s management generally, under the same terms as those provided to Employer’s management generally.  Employee shall bear any tax effects or obligations stemming from any such policies and programs or their amounts.
2.5    Employee acknowledges that Employee shall have no vested rights under or in respect of Employee’s participation in any employee benefit program, plan, or coverage except as expressly provided under the terms thereof.  Notwithstanding anything in this Agreement, it is 

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specifically understood and agreed that Employer shall not be obligated to institute, maintain, or refrain from changing, amending, or discontinuing any employee benefit program, plan, or coverage applicable to Employee, so long as any such actions or inactions in this regard by Employer are similarly applicable to covered executive employees of Employer generally.
2.6    Employee shall be entitled to four (4) weeks of paid vacation per calendar year, to be provided in accordance with Employer’s standard policy and to be taken at such time as mutually agreed by Employee and Employer.
2.7    Notwithstanding the foregoing, Employee and the Employer agree that, immediately following the Effective Date, the compensation levels set forth in this Section 2 will, as necessary, be adjusted to market compensation levels as may be mutually agreed upon by Employee and the Employer, provided, however, that the compensation levels set forth in this Section 2 shall not be reduced as a result of such adjustment.
SECTION 3:    TERMINATION OF EMPLOYMENT AND EFFECTS OF SUCH  
TERMINATION.

3.1    Termination Generally.  Employee’s employment with Employer (a) shall be terminated prior to the end of the Term (i) upon the death of Employee, or (ii) upon Employee’s Permanent Disability (as defined below), and (b) may be terminated prior to the end of the Term (i) at any time by Employer upon notice to Employee, (ii) at any time by Employee upon thirty (30) days’ prior written notice to Employer, or (iii) at any time by Employee if Employee has Employee Cause and complies with the notice procedures described below.  The date of termination is referred to herein as the “Termination Date.” 
3.2    Bad Leaver Termination.  If Employee’s employment is terminated under any of the circumstances set forth in Section 3.2(a), Employee shall be entitled to receive only the benefits set forth in Section 3.2(b) below:
(a)    Bad Leaver Conditions.
(i)    Termination by Employer for Employer Cause.  Employer termination of Employee’s employment for “Employer Cause” shall mean termination by Employer for any of the following: if Employee (a) has been indicted or convicted of, or has entered a plea of guilty or nolo contendere to, a felony charge or crime involving moral turpitude, or, in the course of Employee’s employment has engaged in fraudulent or criminal activity (whether or not prosecuted), (b) has failed to follow reasonable directions of Employer, provided that the foregoing failure shall not be “Employer Cause” if Employee in good faith believes that such direction is illegal and promptly so notifies the Board, (c) has failed to devote all of Employee’s professional time to the Employer and affiliates of Employer, except as permitted by the Employer, (d) has materially breached any policy or code of conduct of the Employer, (e) has materially breached any provision of this Agreement or any other agreement between Employee and the Employer or Related Entity, (f) has received a kickback or rebate of any fee or expense paid by Employer, (g) has engaged 

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in the use of illegal drugs, the persistent excessive use of alcohol, or any other activity that materially impairs Employee’s ability to perform Employee’s duties hereunder or results in conduct bringing Employer or any Related Entity into substantial public disgrace or disrepute, or (h) engages in intentional, reckless, or grossly negligent conduct that has or is reasonably likely to have a material adverse effect on Employer or any Related Entity; provided, however, that with respect to subsections (c), (d) and (e) of this Section 3.2(a)(i), the Board may elect, in its sole discretion, to allow Employee a period of time as determined by the Board to cure the act, conduct or event constituting Employer Cause under such subsections.
(ii)    Employee Resignation. Employee resigns for any reason other than having Employee Cause (as defined below in Section 3.3(a)(i)).

(b)    Bad Leaver Consequences. 
(i)    Employee shall be entitled to receive, within 30 days of the Termination Date or such shorter period as may be required by applicable state law, any Base Salary that was accrued (on a pro rata basis) but unpaid as of the Termination Date (“Accrued Salary”) and such other benefits provided to Employee pursuant to the terms of Employer’s employee benefit plans (which, for the avoidance of doubt, does not include any Bonus payments) that were accrued by Employer in its books and records, but not forfeited, cancelled, or previously paid, as of the Termination Date (“Accrued Benefits,” or, collectively with Accrued Salary, “Accrued Compensation”); and
(ii)    Except for Accrued Compensation, Employee shall forfeit, from and after the Termination Date, Employee’s rights to any and all future compensation from Employer or any Related Entity to which Employee may be entitled and to all future benefits for which Employee may be eligible, in either case under this Agreement or otherwise, including without limitation any Bonus payments (including any earned but unpaid Bonus payments or portions thereof) that would have been payable had Employee remained employed through the date such Bonus payments would have been paid.  Except for Accrued Compensation, Employer’s obligations to pay or provide Employee with future compensation or benefits shall fully and forever cease and terminate as of the Termination Date.

3.3    Good Leaver Termination.  Subject to Section 3.8, if Employee’s employment is terminated under any of the circumstances set forth in Section 3.3(a), and Employee complies with the requirements of Section 3.7, Employee shall be entitled to receive Accrued Compensation as well as the benefits set forth in Section 3.3(b) below (“Severance Benefits”):
(a)    Good Leaver Conditions.  
(iii)    Employee Resignation with Employee Cause.  “Employee Cause” will exist if one of the following occurs: (A) a substantial and continuing diminution in the nature of Employee’s responsibilities (provided, however, that neither a change in Employee’s reporting relationship, nor a diminution in responsibilities as a result of Employer exercising its rights under 

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Section 3.7 will trigger this provision); (B) a material breach by Employer of any material provision of this Agreement; (C) a material and continuing reduction in the aggregated total of Employee’s Base Salary, target Bonus percentage and target equity percentage; or (D) reassignment by the Company of the Employee’s principal place of employment to a location more than fifty (50) miles from his principal place of employment on the Effective Date, but excluding normal business travel consistent with Employee’s duties, responsibilities and position.  For Employee to terminate for Employee Cause: (i) Employer must be notified by Employee in writing within 30 days of the date Employee becomes aware of the event that would allow Employee to terminate employment for Employee Cause, with such notice setting forth such event in reasonable detail; (ii) the event must remain uncorrected by Employer for 30 days following Employer’s receipt of such notice (the “Notice Period”); and (iii) such termination must occur within 30 days after the expiration of the Notice Period.  
(iv)    Employer Termination without Cause.  Employer Termination without Cause shall mean termination by Employer for any reason other than for Employer Cause.  
(v)    Death.  Death shall mean Employee’s death.  
(vi)    Permanent Disability.  Termination due to Employee’s “Permanent Disability” shall mean the inability of Employee, with or without reasonable accommodation, by reason of illness, incapacity, or other disability, to perform Employee’s duties or fulfill Employee’s employment obligations to Employer, as determined by the Board and as certified in writing by a competent medical physician chosen by the Board, for a cumulative total of 180 days in any 12 month period; provided, however, that such period of absence may be extended if required by applicable law.  

(b)    Good Leaver Consequences.  
(i)    A severance payment equal to two (2) times the sum of (A) the Base Salary calculated as of the Termination Date or, if greater, before any reduction not consented to by the Employee and (B) the average of the annual Bonus paid to Employee for the prior two (2) year period.  In the event Employee has not worked one full bonus year as the Chief Financial Officer as of the Termination Date, the amount for purposes of Section 3.3(b)(i)(B) shall be Employee’s target Bonus amount for 2015 pursuant to Section 2.1; and in the event Employee has only worked one full bonus year as the Chief Financial Officer as of the Termination Date, the amount for purposes of Section 3.3(b)(i)(B) shall be shall be the average of the annual Bonus paid to Employee for the prior year and Employee’s target Bonus amount for 2015 pursuant to Section 2.1.  The severance payment shall be paid in equal installments in accordance with the Employer’s normal payroll procedures over the period commencing on the Termination Date and ending on the date that is eighteen (18) months following the Termination Date; provided, however that in the event that (1) Employee serves a Severance Waiver Notice in accordance with Section 4.1, or (2) Employee violates any of the covenants set forth in this Agreement or in any separation agreement, general release, or similar agreement with Employer, Employee shall thereafter forfeit the right to 

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receive any further severance payment installments payable hereunder.  During the period that Employee is entitled to receive severance payments pursuant to this Section 3.3(b), the Employer shall also provide medical benefits to Employee under terms and conditions that are not less favorable than provided to executive officers of the Employer; provided, however, that (X) Employee must elect to receive continuation of health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act (COBRA); (Y) Employee will be required to pay the amount that an active employee of the Employer would pay to receive such coverage and the Employer will be responsible for the employer portion of the insurance premium payments (which amount will be treated as imputed income to the Employee); and (Z) the Employer’s obligation to pay a portion of the Employee’s COBRA premiums shall cease on the first day of the month after Employee obtains reasonably comparable health care coverage from a subsequent employer or other source.
(ii)    Except as set forth in this Section 3.3(b) and as provided in Section 2.2, from and after the Termination Date, (A) Employee forfeits Employee’s rights to any and all compensation from Employer or any Related Entity to which Employee may be entitled and to all future benefits for which Employee may be eligible, in either case under this Agreement or otherwise, including without limitation any Bonus payments (excluding Employee’s Bonus payment for the calendar year of termination, pro-rated for the portion of the calendar year of termination during which Employee was employed by Employer, such pro-rated Bonus to be payable on the date that such bonuses are otherwise paid by the Employer to its employees), and (B) Employer’s obligations to pay or provide Employee with any such future compensation or future benefits shall fully and forever cease and terminate.
(iii)    If Employee’s employment is terminated by reason of Employee’s death, Employee’s estate will be entitled to payment of all amounts due under Section 3.3(b).  If Employee’s employment is terminated because of Employee’s Permanent Disability, Employee’s legal guardian will be entitled to payment of the amounts due under Section 3.3(b) in accordance with the terms and conditions set forth therein.  
3.4    Expiration.  If the Agreement expires and Employee’s employment terminates as a result of the delivery of a Notice of Non-Renewal by Employer to Employee, Employee shall be entitled to receive the Severance Benefits provided pursuant to the terms and conditions of Section 3.3(b); provided, however, that if Employer terminates the Agreement and Employee’s employment for Employer Cause following Employee’s delivery of a Notice of Non-Renewal but prior to the expiration of the Term, or Employee refuses to remain employed through the expiration of the Term, Employee shall forfeit and not be entitled to the Severance Benefits.  If the Agreement expires and Employee’s employment terminates as a result of the delivery of a Notice of Non-Renewal by Employee to Employer, Employee shall only be entitled to receive the Accrued Compensation pursuant to the terms and conditions of Section 3.2(b).
3.5    Continuing Obligations.  Termination or expiration of this Agreement and the employment relationship does not terminate those obligations of Employee imposed by this 

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Agreement that are continuing obligations, including, without limitation, Employee’s obligations under Section 4.
3.6    Post-Termination Assistance.  During any period during which any Severance Benefits or other monies are being paid to Employee under this Agreement after the Termination Date, Employee shall provide to Employer reasonable levels of assistance to Employer in answering questions or otherwise cooperating concerning the business of Employer, transition of responsibility, or litigation; provided that Employee shall be fully and promptly reimbursed for all out of pocket expenses of Employee reasonably incurred in connection with such assistance and any such assistance after the period during which any Severance Benefits or other monies are being paid shall not interfere or conflict with the obligations that Employee may owe to any other employer.
3.7    Reduction or Alteration in Duties.  When either the Employer or Employee serves a notice of termination or a Notice of Non-Renewal, the Employer will have the right in its absolute discretion to (i) assign reduced, alternative, or no duties to the Employee, and require the Employee to act as directed by the Employer, including excluding the Employee from the premises of the Employer or other Related Entity, and (ii) prohibit the Employee from discussing the Employee’s termination with employees, agents, or any third party except with respect to Employee’s communication with federal, state or local governmental agencies as may be legally required or otherwise protected by law; provided, however, that in the event of a reduction or alteration of duties in accordance with Section 3.7(i), Employer will still be required to make the Base Salary payments pursuant to Section 2.1 through the date of termination of Employee’s employment.
3.8    Release.  As a condition to the payment of any severance benefit hereunder, including the Severance Benefits, Employer, in its sole discretion, may require Employee (or Employee’s executor, legal guardian, or other legal representative in the case of the Employee’s death or Permanent Disability) to first execute and not revoke a waiver and release of all claims against Employer and the Related Entities in a form reasonably acceptable to Employer within 21 days following the Termination Date. 
3.9    Forfeiture of Benefits.  Except as otherwise provided in Section 4.1 hereof, in the event Employee breaches any of Employee’s obligations under Section 4 of this Agreement, and if Employee is otherwise entitled to receive Severance Benefits under Section 3.3, Employee shall fully, completely, and permanently forfeit any and all rights to such Severance Benefits, and Employer and each Related Entity shall have the right to fully, completely, and permanently terminate payment of any amounts to which Employee would otherwise be entitled pursuant to these provisions and recover the amount equal to the Severance Benefits previously paid to Employee under Section 3.3.  The foregoing forfeiture of rights to the Severance Benefits shall not in any way limit or restrict Employer’s rights and remedies pursuant to Section 4, including the right to seek injunctive relief to enforce compliance with such obligations and to recover damages for any breach.  Employee agrees that all disputes relating to Employee’s employment or termination of employment shall be resolved through Employer’s Dispute Resolution Plan as provided in Section 5.6 hereof.

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3.10    Severance Benefits Not an Offer of Employment.  The payment of any Severance Benefits or other monies to Employee under this Agreement after the Termination Date shall not constitute an offer or a continuation of employment of Employee.  In no event shall Employee represent or hold himself out to be an employee of Employer after the Termination Date.  Except where Employer is required by law to withhold any federal, state, or local taxes, Employee shall be responsible for any and all federal, state, or local taxes that arise out of any payments to Employee hereunder.
3.11    Recharacterization of Termination.  Notwithstanding any other provision of this Agreement, if following the termination of employment Employer discovers that grounds existed as of the Termination Date for a termination for Employer Cause, then such termination shall be deemed to be a termination for Employer Cause and Employee shall only be entitled to the payments and benefits provided in Section 3.2.  In the event Employee’s termination is reclassified as a termination for Employer Cause pursuant to this Section 3.11, Employee’s termination shall be so treated and classified for all purposes under this Agreement and any other agreements between Employee and Employer, and Employee shall repay to Employer any monies or benefits received by Employee following termination to which Employee would not have been entitled upon being terminated for Employer Cause. 
SECTION 4:    COVENANT NOT TO COMPETE; CONFIDENTIALITY.

4.1    Non-Compete.  The parties hereto recognize that Employee is retained by Employer as part of a professional, management, and executive staff of Employer whose duties include the formulation and execution of management policy.  Therefore, in exchange for the consideration specified herein and as a material incentive for Employer to enter into this Agreement, and to enforce Employee’s obligations regarding confidentiality pursuant to Section 4.5 hereof, Employee hereby agrees that during the term of Employee’s employment hereunder (including any period of employment in which Employee has reduced or altered duties pursuant to Section 3.7) and, in the event of a termination of Employee’s employment pursuant to Section 3.3 (Good Leaver Termination), for a period of eighteen (18) months following the Termination Date (the “Non-Compete Period”), Employee shall not, within North America, act or engage in material competition with the activities or plans of Employer or any Related Entity as they exist up to the time of Employee’s termination of employment.  “Material Competition” by Employee shall mean (A) engaging in or conducting any business or investment activity in any capacity that directly competes with or has a material adverse economic effect on any of the material business activities or business plans of Employer or any Related Entity, or with respect to a business or asset that was being evaluated by Employer or any Related Entity at any time during the Term and prior to the termination of employment, or (B) rendering advice or services to, whether as an employee, consultant, advisor, agent, shareholder, independent contractor, investor, partner, member, owner, or otherwise, any company, business or other entity that derives a material part of its business from activities that directly compete with the business activities or business plans of Employer or any Related Entity; provided, however, that Employee shall be permitted to acquire a passive stock interest in such a 

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business provided that the stock acquired is publicly traded and Employee does not beneficially own more than 2% of the outstanding interest in such business.  Notwithstanding the foregoing, at any time during the eighteen-month period following the Termination Date, Employee may, at Employee’s option, serve on the Employer a written notice waiving the right to any and all future installments of the Severance Benefit payments pursuant to Section 3.3(b)(i) (a “Severance Waiver Notice”), and upon delivery of the Severance Waiver Notice, Employee shall no longer be bound by the restrictions set forth in this Section 4.1 for the period on and after the date on which the Severance Waiver Notice is delivered to the Employer; provided, however, that notwithstanding the delivery of a Severance Waiver Notice, Employee will continue to be bound by the remaining obligations set forth in this Agreement, including but not limited to those covenants of Employee set forth in Section 4.2 and Section 4.5 hereof.
4.2    Non-Solicit.  During the term of Employee’s employment hereunder (including any period of employment in which Employee has reduced or altered duties pursuant to Section 3.7) and for a period of eighteen (18) months following the Termination Date (the “Non-Solicitation Period”), Employee will not, directly or indirectly, solicit or induce (i) any person who is employed by Employer or any of the Related Entities or was so employed within the six-month period prior to the Termination Date (A) to interfere with the activities or businesses of Employer or any Related Entity or (B) to discontinue such person’s employment with Employer or any of the Related Entities, nor shall Employee (or any business or entity with which Employee is then involved) employ any such person or (ii) any customer of Employer to discontinue or reduce its business with Employer (either through the transition of such business to a competitor of Employer or otherwise); provided, however, that general solicitation of the public for employment shall not constitute a solicitation hereunder so long as such general solicitation is not designed to target any such person.
4.3    Recognition of Limitations as Reasonable.  Employee understands that the provisions of Sections 4.1 and 4.2 hereof may limit Employee’s ability to earn a livelihood in a business similar to the business in which Employee is involved, but as a member of the management group of Employer Employee nevertheless agrees and hereby acknowledges that (i) such provisions do not impose a greater restraint than is necessary to protect the goodwill, trade secrets, or other business interests of Employer and any of the Related Entities; (ii) such provisions contain reasonable limitations as to time, scope of activity, and geographical area to be restrained; and (iii) the consideration provided hereunder, including without limitation, any amounts or benefits provided under Section 3 hereof and the Confidential Information provided pursuant to Section 4.5, is sufficient to compensate Employee for the restrictions contained in Sections 4.1 and 4.2 hereof.  In consideration of the foregoing and in light of Employee’s education, skills, and abilities, Employee agrees that Employee will not assert that, and it should not be considered that, any provisions of Section 4.1 or 4.2 otherwise are void, voidable, or unenforceable or should be voided or held unenforceable.
4.4    Modifications to Section 4.  If, at the time of enforcement of Section 4 of this Agreement, a court shall hold that the period, scope, or geographical area restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum 

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period, scope, or geographical area reasonable under such circumstances shall be substituted for the stated period, scope, or geographical area and that the court shall revise the restrictions contained herein to cover the maximum period, scope, and geographical area permitted by law.  If, in any proceeding, a court refuses to enforce all of the separate covenants deemed included herein because, taken together, they are deemed more extensive than necessary to assure Employer of the intended benefit of this Agreement, it is expressly understood and agreed that those of such covenants or portions of such covenants that, if eliminated, would permit the remaining separate covenants or portions thereof to be enforced in such proceeding shall, for the purpose of such proceeding, be deemed eliminated from the provisions hereof.  Employee acknowledges that Employee is a member of Employer’s management group with access to Employer’s confidential business information and Employee’s services are unique to Employer and the Related Entities.  Employee therefore agrees that the remedy at law for any breach by Employee of any of the covenants and agreements set forth in this Section 4 will be inadequate and that in the event of any such breach, Employer may, in addition to the other remedies that may be available to it at law, apply to any court of competent jurisdiction to obtain specific performance and/or injunctive relief prohibiting Employee (together with all those persons associated with Employee) from the breach of such covenants and agreements and to enforce, or prevent any violations of, the provisions of this Agreement.  In addition, in the event of an alleged breach or violation by Employee of this Section 4, the applicable Non-Compete Period and Non-Solicitation Period set forth in this Section shall be tolled until such breach or violation has been cured.
4.5    Confidential Information.  Employee acknowledges that pursuant to the employment hereunder, Employee occupies a position of trust and confidence.  Accordingly, in order to facilitate the performance of this Agreement and the activities contemplated by this Agreement, Employee shall be provided with or given access to, or Employee may develop, certain proprietary or confidential information (“Confidential Information”) of Employer or a Related Entity.  Confidential Information includes, without limitation, information pertaining to Employer’s or the Related Entities’ past, current and future business plans, corporate opportunities, operations, acquisition, merger or sale strategies, production, product development, product names and marks, marketing, cost and pricing structure, margins, profitability, operation or production procedures or results, partners, partnership or other business arrangements or agreements with third parties, customers, customer sales volumes, customer contracts, books, records and documents, technical information, equipment, services and processes.  Subject to the last sentence of this Section, during the term of Employee’s employment and after the termination of Employee’s employment, Employee hereby agrees not to use or to disclose to any person, other than in the discharge of Employee’s duties under this Agreement, any Confidential Information of Employer or any Related Entities.  Information shall not be deemed to be Confidential Information for purposes of this Agreement that: (i) is or hereafter becomes publicly known through no act or omission of Employee; (ii) is received by Employee without restriction on disclosure from a third party who disclosed the information without violating any restriction on confidentiality or disclosure; or (iii) is independently developed after the termination of Employee’s employment with Employer by Employee without reference to the Confidential Information and without violation of any confidentiality restriction.  If Employee violates this agreement of confidentiality, Employer shall, in addition to any other 

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remedy provided by law, be permitted to pursue an action for injunctive relief; monetary damages, or both. Employee acknowledges that all such Confidential Information constitutes confidential and/or proprietary information of Employer and the Related Entities and agrees that such Confidential Information shall be kept confidential, such Confidential Information shall be used solely for the purpose of performing the obligations hereunder or activities contemplated by this Agreement, and that Employee shall not otherwise disclose or make use of such Confidential Information except in response to a court order, provided that when responding to a court order, Employee shall provide written notice of the court order to Employer in advance of any disclosure in response thereto.
4.6    Intangible Rights.  Employee agrees that all ideas, concepts, processes, discoveries, devices, machines, tools, materials, designs, improvements, inventions, computer software, and other things of value (“Intangible Rights”), if patented or subject to a patent application, and Confidential Information, which are conceived, made, invented or suggested either by Employee alone or in collaboration with others during the Term and relating to the business of Employer or a Related Entity, shall be promptly disclosed in writing to Employer and shall be the sole and exclusive property of Employer.  Employee hereby assigns to Employer all of Employee’s right, title, and interest in and to all such intangible rights that are patented or subject to a patent application by Employer and its successors or assigns, and in and to Confidential Information.  In the event that any of said Intangible Rights shall be deemed by Employer to be patentable or otherwise registerable under any federal, state or foreign law, Employee further agrees that during the Term plus 60 days, at the expense of Employer, Employee will execute all documents and do all things necessary, advisable, or proper to obtain patents therefor or registration thereof; and to vest in Employer full title thereto.  Employee agrees that all right, title, and interest in any and all copyrights, copyright registrations, and copyrightable subject matter that occur as a result of Employee’s employment with Employer, shall be the sole and exclusive property of Employer, and agrees that such works comprise “works for hire.”  Employee hereby assigns and agrees to assign to Employer all right, title, and interest in any such copyrights, copyright registrations, and copyrightable subject matter that occur because of such employment.
4.7    Non-Disparagement.  Employee shall refrain, both during the employment relationship and after the employment relationship terminates, from publishing any oral or written statements about Employer or any Related Entity, or any of their respective officers, employees, shareholders, investors, directors, agents or representatives that are malicious, obscene, threatening, harassing, intimidating or discriminatory and which are designed to harm any of the foregoing.  The foregoing restriction shall include, but not be limited to, statements made, whether directly or indirectly, to or on social media, internet websites, blogs and electronic bulletin boards, as well as statements to the media, including writers, researchers, reporters, magazines, newspapers, book publishers, television stations, radio stations, the motion picture industry, public interest groups, and the publishing industry generally.  In the event such a communication is made to anyone, it will be considered a material breach of the terms of this Agreement, and all commitments to make any payments under Section 3.3(b) will be null and void.  Additionally, in the event any such communication materially damages the reputation of Employer, any Related Entity, or their 

12

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respective agents, officers, directors, or employees, the Employee will be required to reimburse the Employer for any and all Severance Benefits made under the terms of this Agreement.  This provision is not intended to limit Employee’s right to give non-malicious and truthful testimony should Employee be subpoenaed to give such testimony, and the foregoing restrictions in this Section 4.7 shall not apply with respect to Employee’s communication with federal, state or local governmental agencies as may be legally required or otherwise protected by law.  
4.8    Agreement to Covenants.  Each of the covenants of this Section 4 are given by Employee as part of the consideration for this Agreement and as an inducement to Employer to enter into this Agreement and accept the obligations hereunder.  Employee has had adequate time to consider these covenants and to consult with an attorney or other advisor concerning them. Employee acknowledges that Employee understands these covenants and agrees to them freely and voluntarily.
SECTION 5:    MISCELLANEOUS.
5.1    Employee and Employer expressly understand and agree that Employer may at its sole discretion assign this Agreement and transfer Employee’s employment to another Related Entity (“Subsequent Employer”) as of, or at any time after, the Effective Date, and no such assignment and transfer shall be deemed to be a termination of employment for purposes of Section 3, or grounds for termination for Employee Cause; provided, however, that, effective with such assignment and transfer, all of Employer’s obligations hereunder shall be unchanged, assumed by, and be binding upon, and all of Employer’s rights hereunder shall be assigned to, such Subsequent Employer and the defined term “Employer” as used herein shall thereafter refer to such Subsequent Employer.  Employee expressly consents to such assignment and transfer.  Except for Employee’s title, as applicable, and as otherwise provided in this Section 5.1, all of the terms and conditions of this Agreement, including without limitation, Employee’s rights and obligations, shall remain in full force and effect following any such assignment and transfer of employment.
5.2    Except as otherwise required by law, any written notice hereunder shall be deemed validly given, made or served (i) on the date on which it is delivered personally, (ii) five business days after it shall have been sent by registered or certified mail (receipt requested and postage prepaid), (iii) one business day after it is sent by overnight courier (charges prepaid), or (iv) on the same business day when sent before 5:00 p.m., recipient’s time, and on the next business day when sent after 5:00 p.m., recipient’s time, by facsimile.
If to Employer, addressed to:         Crestwood Operations LLC
700 Louisiana, Suite 2060
Houston, TX 77002
Facsimile: (832) 519-2200
Attention: Chief Executive Officer

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Copy to:        Crestwood Operations LLC 
700 Louisiana, Suite 2060
Houston, TX 77002
Facsimile: (832) 519-2200
Attention:  Senior Vice President and General
Counsel 

If to Employee:        Robert Halpin
6158 Meadow Lake Ln
Houston, TX 77057
or to Employee’s last known personal address.  
5.3    This Agreement shall be construed and enforced, and this Agreement and any disputes or controversies related hereto shall be governed by, in all respects in accordance with, the law of the State of Texas, without regard to principles of conflicts of law that would apply the laws of any other jurisdiction, unless preempted by federal law, in which case federal law shall govern.
5.4    No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
5.5    It is a desire and intent of the parties that the terms, provisions, covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the application thereof to any person, association, or entity or circumstances shall, to any extent, be construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant, or remedy shall be construed or re-written in a manner so as to permit its enforceability under the applicable law to the fullest extent permitted by law. In any case, the remaining provisions of this Agreement or the application thereof to any person, association, or entity or circumstances other than those to which they have been held invalid or unenforceable, shall remain in full force and effect.
5.6    It is the mutual intention of the parties to have the option to resolve any dispute concerning this Agreement out of court.  Accordingly, the parties agree that either party may elect to have any such dispute submitted for resolution through Employer’s Dispute Resolution Plan or, if no such plan is in place, then pursuant to binding arbitration to be held in Harris County, Texas, in accordance with the employment arbitration rules (except as modified below) of the American Arbitration Association and with the Expedited Procedures thereof (collectively, the “Rules”); provided, however, that Employer, on its own behalf and on behalf of any of the Related Entities, shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any breach, threatened breach, or the continuation of any breach of the provisions of Sections 4 and 5 and Employee hereby consents that such restraining order or injunction may be granted without the necessity of Employer posting any bond.  Each of the parties hereto agrees that arbitration 

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pursuant to this Section 5.6 shall be conducted by a single arbitrator selected in accordance with the Rules; provided that such arbitrator shall be experienced in deciding cases concerning the matter which is the subject of the dispute.  Each of the parties agrees that in any such arbitration that the award shall be made in writing no more than 30 days following the end of the proceeding, that the arbitration shall not be conducted as a class action, that the arbitration award shall include factual findings or conclusions of law, and that no punitive damages shall be awarded.  Any award rendered by the arbitrator shall be final and binding and judgment may be entered on it in any court of competent jurisdiction.  Each of the parties hereto agrees to treat as confidential the results of any arbitration (including, without limitation, any findings of fact and/or law made by the arbitrator) and not to disclose such results to any unauthorized person.  In any dispute related to a termination of Employee’s employment pursuant to Section 3.2(a)(i), Employee shall only be permitted to dispute or contest whether or not a determination of Employer Cause was made in good faith by the Board.  Employer shall bear all administrative fees and expenses of the arbitration and unless the arbitrator directs otherwise, each party shall bear its own counsel fees and expenses.  Either party may appeal the arbitration award and judgment thereon and, in actions seeking to vacate an award, the standard of review to be applied to the arbitrator’s findings of fact and conclusions of law will be the same as that applied by an appellate court reviewing a decision of a trial court sitting without a jury.
5.7    This Agreement shall be binding upon and inure to the benefit of Employer, its successors in interest, or any other person, association, or entity that may hereafter acquire or succeed to all or substantially all of the business assets of Employer by any means, whether indirectly or directly, and whether by purchase, merger, consolidation, or otherwise.  Employee’s rights and obligations under this Agreement are personal and such rights, benefits, and obligations of Employee shall not be voluntarily or involuntarily assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior written consent of Employer, other than in the case of death or Permanent Disability of Employee. 
5.8    As of the Effective Date, this Agreement and the other agreements and arrangements referred to in this Agreement supersede and replace any previous agreements, including the Prior Employment Agreement, and any prior discussions pertaining to the subject matter covered herein.  This Agreement and any Exhibit hereto (collectively, the “Employment Documents”) shall, as of the Effective Date, constitute the entire agreement of the parties with regard to the terms of Employee’s employment, termination of employment and severance benefits, and contain all of the covenants, promises, representations, warranties, and agreements between the parties with respect to such matters.  Each party to this Agreement acknowledges that no representation, inducement, promise, or agreement, oral or written, has been made by either party with respect to the foregoing matters that is not embodied in the Employment Documents, and that, as of the Effective Date, no agreement, statement, or promise relating to the employment of Employee by Employer that is not contained in the Employment Documents shall be valid or binding.  Any modification or waiver of this Agreement will be effective only if it is in writing and signed by each party whose rights hereunder are affected thereby.

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5.9    The parties recognize and acknowledge, and hereby expressly waive, any right any of them may have to punitive damages.
5.10    Employee represents that Employee is fully competent to manage Employee’s business affairs, has read this document carefully, understands all of its contents, fully understands the final and binding effect of this Agreement, has had the opportunity to consult with Employee’s attorney, and executes this Agreement freely and voluntarily.  Employee represents and acknowledges that in executing this Agreement Employee does not rely and has not relied upon any representation or statement not set forth herein made by Employer or the Board or by any of their respective agents, representatives, or attorneys with regard to the subject matter, basis, or effect of this Agreement or otherwise.
5.11    The parties to this Agreement hereby agree that no special relationship of trust and reliance is, has been, or will be created by the provisions of this Agreement or Employee’s employment arrangement.
5.12    This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.
5.13    Employer may withhold from any compensation or benefits payable under this Agreement all federal, state, city or other taxes as may be required pursuant to any law or governmental regulation or ruling, as well as any other authorized deduction or withholding. Furthermore, should Employee owe Employer or a Related Entity any money at the time of termination of employment, Employee authorizes and consents to Employer deducting the amount owed by Employee from compensation otherwise owed Employee.
5.14    The provisions of this Section 5.14 shall apply solely to the extent that a payment under this Agreement is subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).   
(a)    General Suspension of Payments.  If Employee is a “specified employee,” as such term is defined within the meaning of Section 409A of the Code, any payments or benefits payable or provided as a result of Employee’s termination of employment that would otherwise be paid or provided prior to the first day of the seventh month following such termination (other than due to death) shall instead be paid or provided on the earlier of (i) the six months and one day following Employee’s termination, (ii) the date of Employee’s death, or (iii) any date that otherwise complies with Section 409A of the Code.  In the event that Employee is entitled to receive payments during the suspension period provided under this Section, Employee shall receive the accumulated benefits that would have been paid or provided under this Agreement within the suspension period on the first payroll date next following the earliest day that would be permitted under Section 409A of the Code.  In the event of any delay in payment under this provision, the deferred amount shall bear interest at the prime rate (as stated in the Wall Street Journal) in effect on his termination date until paid.

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(b)    Release Payments.  In the event that Employee is required to execute a release to receive any payments from the Employer that constitute nonqualified deferred compensation under Section 409A of the Code, payment of such amounts shall not be made or commence until the sixtieth (60th) day following such termination of employment.  Any payments that are suspended during the sixty (60) day period shall be paid on the date the first regular payroll is made immediately following the end of such period.
(c)    Reimbursement Payments.  The following rules shall apply to payments of any amounts under this Agreement that are treated as “reimbursement payments” under Section 409A of the Code: (i) the amount of expenses eligible for reimbursement in one calendar year shall not limit the available reimbursements for any other calendar year (other than an arrangement providing for the reimbursement of medical expenses referred to in Section 105(b) of the Code); (ii) Employee shall file a claim for all reimbursement payments not later than thirty (30) days following the end of the calendar year during which the expenses were incurred, (iii) the Employer shall make such reimbursement payments within thirty (30) days following the date Employee delivers written notice of the expenses to the Employer; and (iv) Employee’s right to such reimbursement payments shall not be subject to liquidation or exchange for any other payment or benefit.
(d)    Separation from Service.  For purposes of this Agreement, any reference to “termination” of Employee’s employment shall be interpreted consistent with the meaning of the term “separation from service” in Section 409A(a)(2)(A)(i) of the Code and no portion of the Severance Payments shall be paid to Employee prior to the date such Employee incurs a separation from service under Section 409A(a)(2)(A)(i) of the Code.
(e)    Installment Payments.  For purposes of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (including without limitation Treasury Regulations Section 1.409A-2(b)(2)(iii)), all payments made under this Agreement (whether severance payments or otherwise) will be treated as a right to receive a series of separate payments and, accordingly, each installment payment under this Agreement will at all times be considered a separate and distinct payment.
(f)    PPACA.  To the extent that any post-termination continuation of health or medical coverage pursuant to this Agreement would violate either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010 (“PPACA”) and related regulations and guidance promulgated thereunder, the Employer may reform this Agreement in such manner as is reasonably necessary to provide the Employee with the intended benefit hereunder in a manner that complies with the PPACA; provided, however, that such reformation shall not result in a violation of Code Section 409A.
(g)    General.  Notwithstanding anything to the contrary in this Agreement, it is intended that the severance benefits and other payments payable under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5), and 1.409A-(b)(9) 

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and this Agreement will be construed to the greatest extent possible as consistent with those provisions.  The commencement of payment or provision of any payment or benefit under this Agreement shall be deferred to the minimum extent necessary to prevent the imposition of any excise taxes or penalties on the Employer or Employee.
5.15    The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.

IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple originals to be effective on the Effective Date.
EMPLOYER
CRESTWOOD OPERATIONS LLC

By:                        
Name:  Robert G. Phillips
Title: Chief Executive Officer

EMPLOYEE
                            
Name:  Robert Halpin                

18

 HOU:0024197/00000:1771700V3EX-10.58

 EXHIBIT 10.58 

EXECUTION VERSION 

FACILITY AGREEMENT 

[Virgin/Bank 6935] 
 dated as
of October 27, 2015 
 among 

VIRGIN AMERICA INC., 

Borrower, 
 EACH LOAN PARTICIPANT

 IDENTIFIED ON SCHEDULE I HERETO, 

Loan Participants, 
 CREDIT
AGRICOLE CORPORATE AND INVESTMENT BANK, 
 Senior Agent, 

NOVUS TAMWEEL AVIATION FINANCE GP LIMITED, 

Junior Agent 
 and 

BANK OF UTAH, 

Security Trustee 
  

 
 Credit Agricole
Corporate and Investment Bank 
 Senior Underwriter and Arranger 

Novus Tamweel Aviation Finance GP Limited 

Junior Underwriter 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 SECTION 1.
	 	CERTAIN DEFINITIONS	  	 	1	  
			
	 SECTION 2.
	 	THE COMMITMENT; FUNDING PROCEDURES; CLOSING PROCEDURE	  	 	3	  
			
	 (a)
	 	Commitment; Loan Certificates; Special Funding Elections	  	 	3	  
			
	 (b)
	 	Funding Procedures	  	 	4	  
			
	 (c)
	 	Registrations Upon Closing	  	 	6	  
			
	 (d)
	 	Funding Mechanics	  	 	6	  
			
	 (e)
	 	Closing Location	  	 	6	  
			
	 SECTION 3.
	 	LOAN ECONOMICS	  	 	6	  
			
	 (a)
	 	Principal Amortization	  	 	6	  
			
	 (b)
	 	Senior Interest	  	 	6	  
			
	 (c)
	 	Junior Interest	  	 	8	  
			
	 (d)
	 	Past Due Interest	  	 	9	  
			
	 (e)
	 	Upfront Fees	  	 	9	  
			
	 (f)
	 	Agency Fee	  	 	9	  
			
	 (g)
	 	Commitment Fees	  	 	9	  
			
	 (h)
	 	Market Disruption	  	 	9	  
			
	 SECTION 4.
	 	CONDITIONS PRECEDENT	  	 	12	  
			
	 (a)
	 	Conditions Precedent to the Effectiveness of the Commitments	  	 	12	  
			
	 (b)
	 	Conditions Precedent to the Loan Participants’ Participation in the Designated Aircraft	  	 	13	  
			
	 (c)
	 	Conditions Subsequent	  	 	17	  
			
	 SECTION 5.
	 	CLOSING PROCEDURE	  	 	17	  
			
	 (a)
	 	Filings with FAA	  	 	17	  
			
	 (b)
	 	Registrations by FAA Counsel	  	 	18	  
			
	 (c)
	 	Discharges in Event of Failure to Fund	  	 	18	  
			
	 (d)
	 	International Registry Filings	  	 	18	  
			
	 SECTION 6.
	 	EXTENT OF INTEREST OF HOLDERS	  	 	18	  
			
	 SECTION 7.
	 	REPRESENTATIONS AND WARRANTIES	  	 	18	  
			
	 (a)
	 	Borrower’s Representations and Warranties	  	 	19	  
			
	 (b)
	 	Representations and Warranties of the Security Trustee and Loan Participants	  	 	23	  

  
 i 

 Table of Contents 

(continued) 
  

							
	 	 	 	  	Page	 
	 SECTION 8.
	 	INDEMNITIES	  	 	24	  
			
	 (a)
	 	General Indemnity	  	 	24	  
			
	 (b)
	 	Tax Indemnities	  	 	27	  
			
	 (c)
	 	Interest	  	 	27	  
			
	 (d)
	 	Illegality	  	 	27	  
			
	 SECTION 9.
	 	COVENANTS OF THE BORROWER	  	 	29	  
			
	 (a)
	 	Borrower Merger	  	 	29	  
			
	 (b)
	 	U.S. Air Carrier	  	 	30	  
			
	 (c)
	 	Further Assurances	  	 	30	  
			
	 (d)
	 	Sanctions, Etc.	  	 	31	  
			
	 (e)
	 	Financial Information	  	 	32	  
			
	 SECTION 10.
	 	NOTICES	  	 	32	  
			
	 SECTION 11.
	 	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	 	33	  
			
	 (a)
	 	Governing Law	  	 	33	  
			
	 (b)
	 	Submission to Jurisdiction	  	 	33	  
			
	 (c)
	 	Forum	  	 	33	  
			
	 (d)
	 	Service of Process	  	 	33	  
			
	 (e)
	 	Waiver of Jury Trial	  	 	33	  
			
	 SECTION 12.
	 	INVOICES AND PAYMENT OF EXPENSES	  	 	33	  
			
	 SECTION 13.
	 	SUCCESSORS AND ASSIGNS	  	 	34	  
			
	 (a)
	 	Benefits	  	 	34	  
			
	 (b)
	 	Assignments by Borrower	  	 	34	  
			
	 (c)
	 	Assignments by Loan Participants	  	 	34	  
			
	 SECTION 14.
	 	THE AGENTS; THE SECURITY TRUSTEE	  	 	35	  
			
	 (a)
	 	Appointment, Powers and Immunities	  	 	35	  
			
	 (b)
	 	Reliance by Agent	  	 	36	  
			
	 (c)
	 	Non-Receipt of Funds by the Agents	  	 	36	  
			
	 (d)
	 	Defaults	  	 	36	  

  
 ii 

 Table of Contents 

(continued) 
  

							
	 	 	 	  	Page	 
	 (e)
	 	Indemnification	  	 	37	  
			
	 (f)
	 	Non Reliance on Agents and Other Loan Participants	  	 	37	  
			
	 (g)
	 	Failure to Act	  	 	37	  
			
	 (h)
	 	Resignation or Removal of Agent	  	 	37	  
			
	 (i)
	 	Consents under Operative Documents	  	 	38	  
			
	 (j)
	 	The Security Trustee	  	 	38	  
			
	 (k)
	 	Junior Agent	  	 	38	  
			
	 SECTION 15.
	 	MISCELLANEOUS	  	 	38	  
			
	 (a)
	 	Section 1110 Compliance	  	 	38	  
			
	 (b)
	 	Survival of Agreements	  	 	39	  
			
	 (c)
	 	Separate Counterparts	  	 	39	  
			
	 (d)
	 	No Liability of Loan Participants	  	 	39	  
			
	 (e)
	 	Approvals by Loan Participants	  	 	39	  
			
	 (f)
	 	Non-Disclosure of Purchase Agreement	  	 	39	  
			
	 (g)
	 	Confidentiality	  	 	39	  
			
	 (h)
	 	Quiet Enjoyment	  	 	40	  
			
	 Schedules:
	 		  			
		
	 I.
	 	Notice and Account Information	  
	 II.
	 	Participations in Original Amount	  
	 III.
	 	Tax Provisions	  
	 3(a)(i)
	 	Amortization Schedule (Senior Loans)	  
	 3(a)(ii)
	 	Amortization Schedule (Junior Loans)	  

  

					
	Exhibits	  		  	
			
	Exhibit A	  	 –
	  	Form of Borrowing Notice
	Exhibit B	  	 –
	  	Form of Assignment Agreement
	Exhibit C	  	 –
	  	Form of Loan Certificate
	Exhibit D-1	  	 –
	  	Form of U.S. Tax Compliance Certificate
	Exhibit D-2	  	 –
	  	Form of U.S. Tax Compliance Certificate
	Exhibit D-3	  	 –
	  	Form of U.S. Tax Compliance Certificate
	Exhibit D-4	  	 –
	  	Form of U.S. Tax Compliance Certificate
	Exhibit E	  	 –
	  	Form of Swap Confirmation
	Appendix A	  	 –
	  	Definitions and Rules of Usage

  
 iii 

 FACILITY AGREEMENT [VIRGIN/BANK 6935] 

THIS FACILITY AGREEMENT [Virgin/Bank 6935] dated as of October 27, 2015 (as modified, amended or supplemented from time to time,
this “Agreement”) among VIRGIN AMERICA INC., a Delaware corporation (the “Borrower”), each Loan Participant identified on Schedule I hereto (collectively, together with their successors, permitted
assigns and permitted transferees, the “Loan Participants”), CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as Senior Agent hereunder (together with its successors hereunder in such capacity, the “Senior
Agent”), NOVUS TAMWEEL AVIATION FINANCE GP LIMITED, as Junior Agent hereunder (together with its successors hereunder in such capacity, the “Junior Agent”) and Bank of Utah, as Security Trustee hereunder
(together with its successors hereunder in such capacity, the “Security Trustee”). 
 W I T N E S S E T H: 

WHEREAS, certain terms are used herein as defined in Section 1 hereof; and 

WHEREAS, concurrently with the execution and delivery of this Agreement, the Borrower and the Security Trustee are entering into the
Mortgage and Security Agreement [Virgin/Bank 6935] dated as of the date hereof (as modified, amended or supplemented from time to time, the “Mortgage”) pursuant to which the Borrower agrees, among other things, to issue one or more
Loan Certificates in respect of the Designated Aircraft as evidence of the Borrower’s indebtedness to the Loan Participants, which Loan Certificates will be issued upon the financing of the Designated Aircraft and which Loan Certificates will
be secured by the mortgage and security interest on the Designated Aircraft created by the Borrower in favor of the Security Trustee, and the Borrower shall execute and deliver a Mortgage Supplement covering the Designated Aircraft, supplementing
the Mortgage at the time of such delivery and financing. 
 NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows: 
 Section 1. Certain Definitions. Except as otherwise defined in this
Agreement, including its annexes, schedules and exhibits, terms used herein in capitalized form shall have the meanings attributed thereto in Appendix A hereto, and the rules of usage specified therein shall be applicable to this Agreement. In
addition, the following terms shall have the following meanings: 
 “Balloon” means, in respect of the
Senior Loan, $4,500,000. 
 “Commitment” means, as the context requires, the Senior Commitment and/or
the Junior Commitment. 
 “Commitment Termination Date” means the last Business Day of April 2016.

 “Designated Aircraft” means the Airbus A320-200 aircraft with manufacturer’s serial number
6935, scheduled to be delivered under the Purchase Agreement in January 2016. 

 “Federal Funds Rate” for any day, means the weighted
average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is
not so published for any day that is a Business Day, the average of the quotations for the day of such transactions received by the relevant Agent from three federal funds brokers of recognized standing selected by it. 

“Fixed Base Rate” means the sum of the Swap Rate plus the Fixed Rate Margin. 

“Fixed Rate Margin” means, for any Senior Loan Certificate, 0.11% per annum. 

“Junior Commitment” shall have the meaning ascribed thereto in Section 2(a)(ii). 

“Junior Loan Interest Rate” means, for the Junior Loans, 6.50% per annum. 

“Junior Maturity Date” means the seven year anniversary of the Delivery Date. 

“Minimum Liability Insurance Amount” means $600,000,000. 

“Obsolete Part Amount” means $780,000, escalated annually on January 1st of each year (commencing
January 1, 2016) by 4.0% per annum. 
 “Original Amount” means $40,000,000. 

“Partial Loss Threshold” means $3,000,000. 

“Past Due Rate” means (A) in the case of any Floating Rate Loan, the lesser of (a) the
applicable Floating Rate plus 2.00%; and (b) the maximum interest rate permitted under applicable law; (B) in the case of any Fixed Rate Loan, the lesser of (a) 2.00% plus the higher of (i) the applicable Floating Rate and
(ii) the applicable Fixed Rate; and (b) the maximum interest rate permitted under applicable law; and (C) in the case of any Junior Loan, the lesser of (a) the Junior Loan Interest Rate plus 2.00% and (b) the maximum
interest rate permitted under applicable law. 
 “Prepayment Fee” means, with respect to any
acceleration of the Junior Loan or Voluntary Prepayment of any Junior Loan, a fee equal to 4% of the amount so accelerated or prepaid. 

“Senior Applicable Margin” means, for any Senior Loans and Senior Loan Certificates, 1.75% per
annum. 
 “Senior Commitment” shall have the meaning ascribed thereto in Section 2(a)(ii). 

“Senior Maturity Date” means, for any Senior Loans, the 12 year anniversary of the Delivery Date. 

  
 2 

 “Stipulated Insured Amount” means, as of any date of
determination, an amount equal to the sum of (A) in the case of the Senior Loans, (i) if such Loans are Floating Rate Loans, 110% of the aggregate principal amount then outstanding on all Senior Loan Certificates and (ii) if such
loans are Fixed Rate Loans, 115% of the aggregate principal amount then outstanding on all Senior Loan Certificates plus (B) in the case of the Junior Loans, 115% of the aggregate principal amount then outstanding on all Junior Loans. 

“Swap Rate” means, as of any Swap Effective Date and as relates to any fixed rate setting provided in
Section 3(b)(ii)(1) for any Senior Loan Certificates, the rate as at the time of rate-set on such date, determined by the swap desk of the Senior Agent on a reasonable market basis, to effect a swap transaction consistent with the swap
described in Hedging Transaction (without taking into account the Fixed Rate Margin). 
 “Voluntary
Prepayment” means a prepayment effected pursuant to Section 2.09(a) of the Mortgage. 
 Unless the context
otherwise requires, any reference herein to any of the Operative Documents refers to such document as it may be modified, amended or supplemented from time to time in accordance with its terms and the terms of each other agreement restricting the
modification, amendment or supplement thereof. 
 Section 2. The Commitment; Funding Procedures; Closing Procedure. 

(a) Commitment; Loan Certificates; Special Funding Elections. 

(i) The Loans. Subject to the terms and conditions of this Agreement, each of the Loan Participants severally agrees to
make secured loans to the Borrower (the “Loans”) in respect of the Designated Aircraft on a date to be designated pursuant to Section 2(b)(i) hereof, but in no event later than the Commitment Termination Date, in
two classes (each, a “Class”): (A) one senior class of Loans to be made by the Senior Loan Participants in an aggregate principal amount of $34,000,000 (the “Senior Loans”) and
(B) one junior class of Loans to be made by the Junior Loan Participants in an aggregate principal amount of $6,000,000 (the “Junior Loans”). The aggregate original principal amount of the Loans for the Designated
Aircraft shall not exceed the Original Amount (which amount, for the avoidance of any doubt, shall not be subject to any appraisal or other test or condition precedent). 

(ii) Commitment. Each Loan Participant’s funding obligation in respect of any Class shall be its Commitment of the
amount thereof (respectively, its “Senior Commitment” and its “Junior Commitment”). Each Loan Participant shall receive, as evidence of the Senior Loan and/or Junior Loan made by it, a
Loan Certificate(s) of the applicable Class in the amount of such Loan. 
 (iii) Class. Loan Certificates shall be
issued by reference to a particular “Class”. The “Class” of any Loan Certificate, designated as “Senior” or “Junior”, shall indicate whether such
Loan Certificate is issued in respect of a Senior Loan or a Junior Loan. The Class of a Loan Certificate shall be indicated on the face of such Loan Certificate. Each Loan and the related Commitment may be designated as being of the Class of its
related Loan Certificates. 

  
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 (iv) Loan Participants’ Elections. Schedule 1 to Exhibit A
hereto sets out the Class of Loan Certificates that each Loan Participant has irrevocably elected to receive on behalf of itself and its successors, permitted assigns and permitted transferees. Any Loan Certificate initially issued to a Senior Loan
Participant shall be and remain a Senior Loan Certificate, and any Loan Certificate initially issued to a Junior Loan Participant shall be and remain a Junior Loan Certificate, in each case, regardless of the Holder thereof. A Loan Certificate, once
issued as a particular Class, shall only be transferred, assigned and/or reissued as such Class, as the case may be, entitling its Holder to the rights, and subjecting such Holder to the obligations, applicable to such Class only, as further set
forth herein. 
 (v) Loan Certificates. The Loan Certificates shall be substantially in the form set forth in
Exhibit C. On the Delivery Date, the Borrower shall issue Loan Certificates in an aggregate amount equal to the Original Amount constituting (A) the Senior Commitment advanced by the Senior Loan Participants and (B) the Junior
Commitment advanced by the Junior Loan Participants. 
 (b) Funding Procedures. 

(i) Funding Date. In connection with the financing of the Designated Aircraft hereunder, the Borrower agrees to give
each Loan Participant, each Agent and the Security Trustee at least (A) in the case of the Senior Loan Participants, two Business Days’ and (B) in the case of the Junior Loan Participants, 10 days’, prior written notice of the
anticipated Delivery Date of the Designated Aircraft (the “Funding Date”), which date shall be a Business Day not later than the Commitment Termination Date, and which notice shall be (i) in substantially the form of the Notice
of Borrowing attached hereto as Exhibit A, (ii) in the case of the notice to the Senior Loan Participants received prior to 1:00 p.m. New York City time and (iii) irrevocable if not revoked within two Business Days of the Funding
Date. 
 (ii) Account. In order to facilitate the timely closing of the transactions contemplated hereby on the
Funding Date, the Borrower, by delivery of the Notice of Borrowing to the Loan Participants and each Agent, irrevocably instructs such Loan Participants to wire transfer (for receipt by no later than 10:00 a.m. New York City time) on the
Funding Date its Commitment by the wiring of immediately available funds (reference: Virgin/Bank 6935) to the account of the Security Trustee at the Payment Office (the “Account”). 

(iii) Deposit. The funds so paid by each Loan Participant (the “Deposit”) into the Account are to be
held by the Security Trustee for the account of such Loan Participant. Subject to paragraph (vi) below, upon the satisfaction (as determined by each Loan Participant) or waiver of the conditions precedent set forth in Section 4(b) hereof
in respect of the Designated Aircraft, such Loan Participant (or its special counsel acting on its behalf) shall instruct the Security Trustee to disburse the Deposit for application of its Commitment for the Designated Aircraft as instructed by the
Borrower. 

  
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 (iv) Investment of Deposit. If, for any reason, the Designated Aircraft to
be financed hereunder on the Funding Date shall not be so financed on such date, the Deposit, and earnings thereon, will be invested and reinvested by the Security Trustee at the sole direction, for the account, and at the risk of the Borrower in an
overnight investment selected by the Borrower and acceptable to the Security Trustee having consulted with the Loan Participants. Upon the Borrower’s oral (to be confirmed in writing) instructions, earnings on any such investments shall be
applied to the Borrower’s payment obligations to each Loan Participant under this Section 2(b) or released to the Borrower to the extent of such earnings. 

(v) Interest After Funding Date. If the actual Delivery Date is a date falling after the Funding Date, the Borrower
shall pay interest hereunder to each Loan Participant on the amount of its Commitment transferred to the Security Trustee for each Loan Certificate as indicated on Schedule 1 to the Notice of Borrowing for the period from and including the
Funding Date to but excluding the earlier of (A) the Delivery Date or (B) the Cutoff Date (as defined below). For each Loan Participant, such interest shall accrue on the amount of such Loan Participant’s Commitment transferred to the
Security Trustee at the Applicable Rate. Interest on the Commitments accrued pursuant to the preceding sentence shall (I) if accrued to the Delivery Date, be paid on the first Interest Payment Date and (II) if accrued to the Cutoff Date,
be due and payable to each Loan Participant within three Business Days of such date. 
 (vi) Cutoff Date. If for any
reason, other than the failure of any Loan Participant to comply with the terms hereof, the Delivery Date shall not have occurred on or prior to seven Business Days (or such longer period as mutually agreed by the Borrower and the Underwriters)
after the Funding Date for the Aircraft (the “Cutoff Date”), the Borrower hereby irrevocably agrees that each Senior Loan Participant may cancel, terminate or otherwise unwind its funding arrangements made in the London interbank
market or otherwise to fund its Commitment on the Funding Date, and the Security Trustee shall return each Loan Participant’s Commitment to it, subject, however, to such Loan Participant’s continuing commitment to fund as provided herein.

 (vii) Unwinding. In the event of the occurrence of the events described in paragraph (vi) above, (1) the
Borrower agrees to pay each Senior Loan Participant promptly (but in any event within three Business Days of the relevant Cutoff Date) (A) in the case of the Senior Loan Participant only, an amount of liquidated damages equal to any Swap
Breakage Loss plus any loss incurred in connection with the unwinding or liquidating of any deposits or funding or financing arrangement with its funding sources and (B) without duplication of the amounts covered by the preceding
clause (A), all reasonable out-of-pocket costs and expenses of such Loan Participant (including, without limitation, reasonable legal costs and expenses) incurred by such Loan Participant described in the definition of Transaction Expenses in
Section 12 hereof; and (2) each Senior Loan Participant agrees, so long as no Event of Default shall have occurred and be continuing, to pay to the Borrower promptly (but in any event within three Business Days of the relevant Cutoff Date)
any Swap Breakage Gain in connection with the unwinding or liquidating of any deposits or funding or financing arrangement with its funding sources. 

  
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 (c) Registrations Upon Closing. Subject to the terms and conditions of this Agreement, and
simultaneously with receipt by the Borrower of the proceeds of the Loans made in connection with the Designated Aircraft pursuant to this Section 2, the Borrower shall authorize (i) the delivery and filing for record at the FAA of the
Mortgage and the Mortgage Supplement for the Designated Aircraft and (ii) the registration at the International Registry of the Security Trustee’s international interest in the related Airframe and each Engine. 

(d) Funding Mechanics. On the Delivery Date specified in the Borrower’s notice referred to in Section 2(b)(i) hereof, subject
to the terms and conditions of this Agreement, each Loan Participant, through the Security Trustee, agrees to pay the amount of its Commitment to the Borrower by wire transferring such amounts to the account of the Borrower as set forth on
Schedule I hereto or to such other account as the Borrower shall direct the Security Trustee in writing, upon closing. 
 (e)
Closing Location. The closing with respect to the financing of the Designated Aircraft shall take place at the offices of Vedder Price P.C., 1633 Broadway, New York, New York 10019. 

Section 3. Loan Economics. 

(a) Principal Amortization. 

(i) Senior Loans. The aggregate principal amount of the Senior Loan Certificates shall amortize quarterly on each
Interest Payment Date (the first of which being the first Interest Payment Date following the Delivery Date), as provided in Schedule 3(a)(i) hereto. 

(ii) Junior Loans. The aggregate principal amount of the Junior Loan Certificates shall amortize quarterly on each
Interest Payment Date (the first of which being the first Interest Payment Date following the Delivery Date) as provided in Schedule 3(a)(ii) hereto. 

(iii) Amortization Schedules. The aggregate amortization schedules for the Loans of each Class shall, based on the
foregoing, be appended to the Mortgage Supplement delivered in connection with such Loans (reflecting the Interest Payment Dates applicable thereto). 

(b) Senior Interest. The Borrower shall, subject to the terms and conditions of this Section 3(b), have the right to elect on or
prior to the date that is two Business Days prior to the Funding Date that the Senior Loans bear interest either at a Floating Rate or a Fixed Rate. 

(i) Floating Rate. If the Borrower shall not have notified the Senior Loan Participants of its request, pursuant to the
Notice of Borrowing, to have the Senior Loans bear interest at a Fixed Rate, then the Applicable Rate for the Senior Loans and related Senior Loan Certificates shall be, for each Interest Period, the applicable Floating Rate for such Interest
Period. Interest on each Senior Loan payable by reference to the Floating Rate shall be payable quarterly in arrears on each Interest Payment Date and shall be calculated on the basis of a year of 360 days and actual number of days elapsed. 

  
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 (ii) Fixed Rate Setting. The Borrower may notify the Senior Loan
Participants of its request, pursuant to the Notice of Borrowing, for the Senior Loans to bear interest at a Fixed Rate, which Fixed Rate shall be fixed two Business Days prior to the Funding Date (the “Swap Effective
Date”). Upon delivery by the Borrower of the Notice of Borrowing relating to any Fixed Rate Loans to the Senior Agent and Senior Loan Participants, the following procedures shall apply to determine the “Fixed Rate” for such
Senior Loans: 
 (1) Notification of Rate. No later than 11:30 a.m. New York time (but no earlier than
11:00 a.m. New York time) on the second Business Day prior to the Funding Date, the Senior Agent, the Senior Loan Participants and the Borrower shall convene a conference call during which the Senior Agent will notify the Borrower of a single
fixed rate of interest to be used as the basis for the calculation of the Fixed Rate for the Senior Loans. Such Fixed Rate for the Senior Loan Certificates shall be the sum of (A) the Swap Rate plus (B) 1.7743% per annum plus (C) the
Fixed Rate Margin, and shall be the “Fixed Rate” for the Senior Loan Certificates, effective on the Swap Effective Date; provided that if such Fixed Rate cannot be established because the Borrower does not agree to the Swap Rate quoted by
the Senior Agent, then Section 3(b)(i) shall apply to such Loans as though the Borrower never requested such Senior Loans to bear interest at a Fixed Rate. 

(2) Fixed Rate Stipulation. The Fixed Rate, as so established for the Senior Loan Certificates, shall be included on the
cover page of the Senior Loan Certificates at issuance thereof and specified in the Mortgage Supplement for the Designated Aircraft. 

(3) Rate Swaps Sophistication. The Borrower understands and acknowledges that, in order to provide any Fixed Rate, the
Senior Loan Participants may be entering into one or more interest rate swaps or other hedging transactions (which may be effected internally (including on a notional basis) or externally), and that it has assessed the risks (including but not
limited to risks in relation to any Swap Breakage Loss), benefits and consequences of obtaining a fixed interest so as to procure a fixed rate funding. The Borrower confirms that it is solely responsible for any decision to select a Fixed Rate for
any Senior Loan, having relied on its own independent business judgment and advisers in connection herewith. 
 (iii)
Fixed Rate. If the Applicable Rate for the Senior Loan Certificates and the related Senior Loans is calculated by reference to a Fixed Rate: 

(1) Interest Generally. Interest on such Fixed Rate Loan shall be payable quarterly in arrears on each Interest Payment
Date and shall be calculated on the basis of a year of 360 days consisting of 12 30-day months. 

  
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 (2) Swap Breakage on Prepayment. On the date of any prepayment of such
Senior Loan Certificates, the Borrower may request that each Senior Loan Participant advise the Security Trustee and the Borrower by 11:00 a.m., New York time, on such date of the Swap Break Amount applicable to such event. 

(3) Payment of Swap Breakage Gain. Each Senior Loan Participant agrees that, so long as no Special Default or Event of
Default shall have occurred and be continuing, it shall promptly pay to the Borrower at such account as the Borrower may specify any Swap Breakage Gain in respect of the Senior Loan Certificates, except that it may first deduct therefrom any amounts
then due and owing to it under the Operative Documents and apply any amount so retained to the satisfaction thereof. Each Holder may retain any Swap Breakage Gain that arises after the occurrence of a Special Default or an Event of Default as
security for the obligations of the Borrower until the earlier of (i) the date that such Special Default or Event of Default is cured by the Borrower (or, if such Holder reasonably anticipates that its costs and expenses incurred in connection
with such Special Default or Event of Default cannot be determined at such time, the earlier of (x) the date such costs and expenses can be determined and (y) five Business Days after the date such Special Default or Event of Default is
cured), promptly following which date such amount shall be paid over to the Borrower, except that such Holder may first deduct therefrom any amounts then due and owing to it under the Operative Documents and apply any amount so retained to the
satisfaction thereof, or (ii) the date that Section 9.07 of the Mortgage shall be applicable, promptly following which date such amounts shall be remitted to the Security Trustee for application as provided in such Section 9.07. 

(4) Swap Breakage Estimate. Upon the request of the Borrower to the Senior Agent, the Senior Agent shall obtain from
each Senior Loan Participant, and each Senior Loan Participant shall provide to the Senior Agent, a good faith written estimate of the Swap Breakage Loss or Swap Breakage Gain, as the case may be, in connection with the occurrence, or anticipated
occurrence, of any event contemplated by the Operative Documents that might give rise to an obligation to pay Swap Breakage Loss or the right to receive Swap Breakage Gain. 

(5) Confirmation of Swap Breakage Estimate. Upon determination by a Senior Loan Participant of any Swap Breakage Loss or
Swap Breakage Gain payable to or by it, as the case may be, such Senior Loan Participant will provide to the Borrower a written confirmation confirming such Swap Breakage Loss or Swap Breakage Gain, which confirmed amount shall be determined in
accordance with the procedures set out in the definition of “Swap Break Amount”. 
 (c) Junior Interest. The Junior Loans
shall bear interest at the Junior Loan Interest Rate payable quarterly in arrears on each Interest Payment Date and shall be calculated on the basis of a year of 360 days and actual number of days elapsed. 

  
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 (d) Past Due Interest. Overdue payments of principal of any Class of Loan (and to the
extent permitted by applicable law, overdue payments of interest and other amounts overdue under the Operative Documents) shall bear interest at the Past Due Rate, payable on demand, for any period during which the same shall be overdue. 

(e) Upfront Fees. The Borrower agrees to pay to the Security Trustee for account of each Underwriter as and when due the upfront fee
specified for such Underwriter in its Fee Letter. 
 (f) Agency Fee. The Borrower agrees to pay an agency fee to the Senior Agent in
an amount equal to $5,000 per year, which fee shall be payable annually in advance to such Agent on the Funding Date and each of the anniversary dates thereof (or, if such day is not a Business Day, the next following Business Day). Such fee shall
not be refundable. The agency fee specified in this Section 3(f) shall cease to be payable from and after the date the Senior Loan Certificates shall have been paid in full. 

(g) Commitment Fees. The Borrower agrees to pay to the Security Trustee for account of each Loan Participant a commitment fee accrued
for the period from and including the Effective Date to the earlier of (i) the Delivery Date and (ii) the Commitment Termination Date, equal to the Commitment Fee Rate calculated on the average daily amount of such Loan Participant’s
unutilized Commitment during the period for which payment of the commitment fee is made (calculated on the basis of a year of 360 days and actual days elapsed), payable quarterly in arrears on each three monthly anniversary dates of the Effective
Date and on the date the commitment fee ceases to accrue in accordance with the foregoing. As used herein, “Commitment Fee Rate” means (A) for any Senior Commitment, 0.75% per annum and (B) for any
Junior Commitment, 1.00% per annum. 
 (h) Market Disruption. 

(i) If with respect to any Interest Period: 

(1) LIBOR Screen Unavailable. In the case of a Floating Rate Loan, the Senior Agent determines that, by reason of
circumstances affecting the London interbank market or any other applicable financial market, adequate and reasonable means do not exist for ascertaining the LIBOR screen rate for an Interest Period and that no more than one of the Reference Banks
was able to provide the Senior Agent with its offered quotation for US dollar deposits for a period most comparable to such Interest Period to prime banks in the relevant interbank market; or 

(2) Cost of Funds. In the case of a Fixed Rate Loan or a Floating Rate Loan, the Majority Senior Lenders advise the
Senior Agent that the LIBOR screen rate as determined in accordance with the definition thereof will not adequately and fairly reflect the cost to such Loan Participants of maintaining or funding their respective Loans for any Interest Period,
provided that such inadequacy is the result of circumstances affecting banks and other financial institutions participating in the relevant interbank market generally and is not directly and solely the result of a deterioration in the financial or
other condition of such Loan Participant, 

  
 9 

 (each, a “Market Disruption Event”), then so long as such circumstances shall
continue, the portion of the Senior Loan that relates to each affected Senior Loan Certificate shall bear interest, for each Interest Period (A) in the case of subclause (1) above, at the Market Disruption Cost of Funds for such Loan
Participant, plus the Senior Applicable Margin and (B) in the case of subclause (2) above, at the applicable Interest Rate (whether a Fixed Rate or a Floating Rate) plus a per annum rate equal to their respective incremental
cost of funds for such Interest Period over the then-current LIBOR. 
 (ii) Market Disruption Cost of Funds. If the
provisions of this Section 3(h) are applicable, then each affected Senior Loan Participant shall report, as provided in paragraph (iv) below, to the Security Trustee, the Senior Agent and the Borrower its cost of funding its share of the
Loans for such Interest Period, expressed as a percentage rate per annum (such Loan Participant’s “Market Disruption Cost of Funds”). Based on the report of each affected Loan Participant, the Senior Agent shall calculate the
weighted average (all in) interest amount (and equivalent per annum rate) due by the Borrower on the applicable Loan for such Interest Period and provide such calculation to the Borrower and the Security Trustee. 

(iii) Report as Certification. The report by any affected Senior Loan Participant to the Security Trustee, the Senior
Agent and the Borrower of its cost of funds for any Interest Period shall be conclusive, absent manifest error, and shall constitute a certification by such Senior Loan Participant that the interest rate so provided is an accurate, fair and
non-discriminatory calculation of its treasury (or comparable) desk’s assessed funding costs which assessment has been made on a fair and non-discriminatory basis for such period relative to similarly situated borrowers from which it is
entitled to assess market disruption costs and does not include any mark-up, fees, overhead allocations or other amounts not constituting the interest expense-type cost of obtaining such funding. 

(iv) Notice of Cost of Funds. If the provisions of this Section 3(h) are applicable, each affected Senior Loan
Participant shall report to the Security Trustee, the Senior Agent and the Borrower its cost of funds for each affected Interest Period as soon as practicable and, in any event, prior to the first day of such Interest Period (or promptly thereafter
under circumstances where such costs of funds are generally not available to lenders similarly situated to any affected Senior Loan Participant); provided that if any affected Senior Loan Participant is not able to obtain deposits in the London
interbank (or other relevant) market matching such Interest Period, notice of its cost of funds rate shall be provided as follows: (i) prior to the first day of such Interest Period (or promptly thereafter under circumstances where such costs
of funds are generally not available to lenders similarly situated to any affected Senior Loan Participant), such Senior Loan Participant shall provide to the Security Trustee, the Senior Agent and the Borrower an approximation of the cost to such
Loan Participant of such funding for such Interest Period; and (ii) prior to the last day of such Interest Period (or earlier, to the extent practicable if deposits of a duration longer than one day are obtained), such Senior Loan Participant
shall provide to the Security Trustee, the Senior Agent and the Borrower the actual cost to such Loan Participant of such funding for such Interest Period. 

  
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 (v) Actual/360. All amounts payable under this Section 3(h) shall be
calculated on the basis of a year of 360 days and actual number of days elapsed. 
 (vi) Termination of Market Disruption
Event. Upon any Senior Loan Participant affected by a Market Disruption Event confirming to the Security Trustee, the Senior Agent and the Borrower that the event(s) giving rise to such Market Disruption Event have ceased (which confirmation
shall be provided promptly on the cessation of such event(s)), the rate of interest applicable to such Loan Participant’s Loans will revert to such rate of interest immediately in effect prior to the occurrence of such Market Disruption Event.

 (vii) Substitute Basis for Determination of Cost of Funds. If a Market Disruption Event occurs and is continuing
and the Senior Loan Participants or the Borrower so requests, the Senior Loan Participants affected by such Market Disruption Event and the Borrower shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing on a
substitute basis for determining the rate of interest payable in respect of the affected Senior Loan Certificates, provided that any alternative basis agreed shall, with the prior consent of each affected Senior Loan Participant and the
Borrower, be binding on such parties. If within such 30 day period each of the affected Senior Loan Participants and the Borrower agree upon a substitute basis for determining the rate of interest payable in respect of the affected Senior Loan
Certificates, such alternative basis shall be retroactive to and effective from the first day of the applicable Interest Period until and including the last day of such Interest Period. For the avoidance of doubt, during any such period of
negotiation, the Borrower shall be required to perform its obligations under this Section 3(h). 
 (viii) Prepayment
of Holders affected by a Market Disruption Event. The Borrower shall have the right but not the obligation to prepay the Senior Loans of any Holder affected by a Market Disruption Event (without any Prepayment Fee), together with accrued
interest thereon and any Break Amount, or direct the affected Holder to transfer such Holder’s Loans to another person for a purchase price equal to the amount that would otherwise have been paid on such a prepayment. 

  
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 Section 4. Conditions Precedent. 

(a) Conditions Precedent to the Effectiveness of the Commitments. It is agreed by each of the parties hereto that the respective
Commitments of each Loan Participant in respect of the Designated Aircraft and the effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent: 

(i) Effectiveness Documents. The following documents shall have been duly authorized, executed and delivered by the
respective party or parties thereto, shall each be satisfactory in form and substance to each Loan Participant and shall be in full force and effect and executed counterparts shall have been delivered to each Loan Participant and its counsel: 

(1) this Agreement; 

(2) the Mortgage; and 

(3) the Intercreditor Agreement. 

(ii) Corporate Documents. Each Loan Participant shall have received the following, in each case in form and substance
satisfactory to it: 
 (1) Constitutional Documents of Borrower. A certified copy of the certificate of incorporation
and bylaws of the Borrower and a copy of resolutions of the board of directors of the Borrower or the executive committee thereof, certified by the Secretary, an Assistant Secretary or other officer of the Borrower, duly authorizing the execution,
delivery and performance by the Borrower of this Agreement, the Mortgage and each other document required to be executed and delivered by the Borrower on the Delivery Date in accordance with the provisions hereof and thereof; 

(2) Signatories of Borrower. A certificate of the Borrower as to the person or persons authorized to execute and deliver
this Agreement, the other Operative Documents, and any other documents to be executed on behalf of the Borrower in connection with the transactions contemplated hereby and as to the signature of such person or persons; 

(3) Incumbency Certificate of Security Trustee. An incumbency certificate of the Security Trustee as to the person or
persons authorized to execute and deliver this Agreement, the Mortgage, and any other documents to be executed on behalf of the Security Trustee in connection with the transactions contemplated hereby and as to the signatures of such person or
persons (which may be in the form of a general “authorized signatories” certificate); 
 (4) Security
Trustee’s Resolutions. Copy of the resolutions of the board of directors of the Security Trustee, certified by the Secretary or an Assistant Secretary of the Security Trustee, duly authorizing the transactions contemplated hereby and the
execution and delivery of each of the documents required to be executed and delivered on behalf of the Security Trustee in connection with the transactions contemplated hereby (which may be in the form of general standing resolutions to carry out
its business in the manner contemplated by this Agreement); and 
 (5) Security Trustee. A copy of the articles of
association and by-laws of the Security Trustee, each certified by the Secretary, an Assistant Secretary or other officer of the Security Trustee. 

  
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 (iii) Know Your Customer of Borrower. Such Loan Participant shall have
received any document reasonably requested from the Borrower (not less than five Business Days prior to the Effective Date) by such Loan Participant in order for such Loan Participant to satisfy any “know your customer” requirements with
respect to the Borrower. 
 (iv) Opinions of Counsel. Such Loan Participant shall have received an opinion addressed
to such Loan Participant, each Agent and the Security Trustee from (A) Milbank, Tweed, Hadley & McCloy, special New York counsel to the Borrower and (B) the Associate General Counsel or other duly authorized in-house counsel for
the Borrower, in each case, in form and substance reasonably satisfactory to the addressees thereof. 
 (b) Conditions Precedent to the
Loan Participants’ Participation in the Designated Aircraft. It is agreed by each of the parties hereto that the respective obligations of each Loan Participant to lend its Commitment to the Borrower in respect of the Designated Aircraft is
subject to the satisfaction prior to or on the Delivery Date of the following conditions precedent: 
 (i) Notice of
Delivery Date. Such Loan Participant shall have received due notice with respect to the Delivery Date pursuant to Section 2 hereof. 

(ii) No Change in Law. No change shall have occurred after the date of the execution and delivery of this Agreement in
applicable law or regulations thereunder or interpretations thereof by appropriate regulatory authorities which, in the reasonable opinion of such Loan Participant would make it a violation of law or regulations for such Loan Participant to make its
Commitment available to acquire its Loan Certificate(s) or to realize the benefits of the security afforded by the Mortgage. 

(iii) No Material Adverse Change. On the Delivery Date, no material adverse change in the financial condition of the
Borrower shall have occurred since December 31, 2014 that would materially and adversely affect the Borrower’s ability to perform its obligations under the Operative Documents. 

(iv) Fees and Expenses. (A) Each Underwriter shall have received its upfront fee specified in Section 3(e),
(B) the Senior Agent shall have received its agency fee specified in Section 3(f) and (C) each Underwriter shall have received all invoiced Transaction Expenses (as defined in Section 12) then due and owing. 

(v) Certain Documents. The following documents shall have been duly authorized, executed and delivered by the respective
party or parties thereto, shall each be satisfactory in form and substance to each Loan Participant (acting reasonably) and shall be in full force and effect and executed counterparts shall have been delivered to such Loan Participant and its
counsel, provided that only such Loan Participant shall receive an executed original of its Loan Certificate(s) to be issued to it: 

(1) the Mortgage Supplement covering the Designated Aircraft and dated the Delivery Date; 

  
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 (2) the Loan Certificates relating to the Designated Aircraft, with
Annex A for each Class of Loan Certificate duly completed as provided in Section 3(a) hereof; 
 (3) the
Airframe Warranties Agreement and the Engine Consent and Agreement, in each case, in respect of the Designated Aircraft; 

(4) the Warranty Bill of Sale and FAA Bill of Sale for the Designated Aircraft; and 

(5) if necessary, a copy of that portion of the Purchase Agreement and Engine Agreement relating to the Designated Aircraft
certified by the Secretary, an Assistant Secretary or other officer of the Borrower as being a true and accurate copy of the same that relates to the Assigned Warranties and the related obligations of the Borrower or a successor in interest to the
Borrower which has the right to exercise any such warranty. 
 (vi) Financing Statements. A Uniform Commercial Code
financing statement or statements covering all the security interests created by or pursuant to the granting clause of the Mortgage that are not covered by the recording system established by the Federal Aviation Act shall have been duly
prepositioned for filing on closing in all places deemed necessary or advisable in the reasonable opinion of counsel for the Loan Participants, and any additional Uniform Commercial Code financing statements deemed advisable by such Loan Participant
shall have been duly prepositioned for filing on closing and all other action shall have been taken as is deemed necessary or advisable, in the reasonable opinion of counsel for the Loan Participants, to establish and perfect the Security
Trustee’s security interest in the Designated Aircraft. 
 (vii) FAA Actions. All appropriate action required to
have been taken by the Federal Aviation Administration, or any governmental or political agency, subdivision or instrumentality of the United States, on or prior to the Delivery Date in connection with the transaction contemplated by this Agreement
shall have been taken, and all orders, permits, waivers, authorizations, exemptions and approvals of such entities required to be in effect on the Delivery Date in connection with the transaction contemplated by this Agreement shall have been
issued, and all such orders, permits, waivers, authorizations, exemptions and approvals shall be in full force and effect on the Delivery Date. 

(viii) Evidence of Title and Security Interests. On the Delivery Date, the following statements shall be true, and such
Loan Participant shall have received evidence satisfactory to it (including a printout of the “priority search certificates” (as defined in the Cape Town Convention from the International Registry relating to the Aircraft (and the
constituent Airframe and Engines)) to the effect that: 
 (1) the Borrower has good title to the Designated Aircraft, free
and clear of Liens other than (subject to filing and recording of the FAA Bill of Sale with the Federal Aviation Administration and the registration of a contract of 

  
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sale on the International Registry between the Manufacturer as seller and the Borrower as buyer with respect to the Airframe and Engines of the Designated Aircraft, if the Borrower does not
already own the Designated Aircraft) the mortgage and security and international interests created by the Mortgage and the Mortgage Supplement for the Designated Aircraft; 

(2) the FAA Bill of Sale, the Mortgage (if not previously filed) and the Mortgage Supplement for the Designated Aircraft have
been duly filed with the FAA for recordation (or are in form suitable for recordation and are in the process of being so filed for recordation) and there exist no Liens of record on the Designated Aircraft; 

(3) the international interest of the Mortgage Supplement with respect to the Airframe and Engines associated with the
Designated Aircraft shall have been registered with the International Registry, and there exists no registered international interest on the International Registry; 

(4) the Designated Aircraft has a valid export certificate of airworthiness issued by the Direction générale de
l’aviation civile of France; 
 (5) the Borrower is a U.S. Air Carrier (and such Loan Participant shall have received a
copy of the Borrower’s air carrier operating certificate); 
 (6) the Security Trustee is entitled to the protection of
Section 1110 of the United States Bankruptcy Code in connection with its right to take possession of the Designated Aircraft in the event of a case under Chapter 11 of the United States Bankruptcy Code in which the Borrower is a debtor; and

 (7) the Designated Aircraft is ETOPS-compliant. 

(ix) Representations and Warranties. On the Delivery Date, (A) the representations and warranties of the Borrower
contained in Section 7 of this Agreement shall be true and accurate as though made on and as of such date except to the extent that such representations and warranties relate solely to an earlier date (in which case such representations and
warranties shall be true and accurate on and as of such earlier date), and (B) no event shall have occurred and be continuing which constitutes (or would, with the passage of time or the giving of notice or both, constitute) an Event of
Default. 
 (x) Opinion of New York Counsel. Such Loan Participant shall have received an opinion addressed to such
Loan Participant, each Agent and the Security Trustee from Milbank, Tweed, Hadley & McCloy, special New York counsel to the Borrower, confirming, among other things, the statement set forth in Section 4(b)(viii)(6) hereof, in form and
substance reasonably satisfactory to the addressees thereof. 
 (xi) Opinion of FAA Counsel. Such Loan Participant
shall have received an opinion addressed to such Loan Participant, each Agent and the Security Trustee, and the Borrower from FAA Counsel, in form and substance reasonably satisfactory to the addressees thereof. 

  
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 (xii) Opinion of Airbus. Such Loan Participant shall have received an
opinion addressed to such Loan Participant, each Agent and the Security Trustee from counsel to Airbus S.A.S., in respect of the Bills of Sale, in form and substance reasonably satisfactory to the addressees thereof. 

(xiii) Certificate of Borrower. Such Loan Participant shall have received a certificate signed by the President, a Vice
President, the Chief Financial Officer, the General Counsel or the Treasurer of the Borrower, dated the Delivery Date, addressed to such Loan Participant and certifying as to the matters stated in paragraphs (ix), (xv) and (xvi) of this
Section 4(b). 
 (xiv) Insurance Certificate and Report. Such Loan Participant shall have received an independent
insurance brokers’ report and certificate(s) of insurance, in form and substance reasonably satisfactory to such Loan Participant as to the due compliance with the terms of Article VI of the Mortgage relating to insurance with respect to
the Designated Aircraft and a certificate, in form and substance reasonably acceptable to such Loan Participant, signed by the Treasurer, Chief Financial Officer, the President, a Vice President or General Counsel of the Borrower confirming
indemnification or insurance provided by the United States and evidence of such indemnification or insurance, if any. 
 (xv)
No Event of Loss. On the Delivery Date it shall be true that no Event of Loss (or event which with the passage of time would become an Event of Loss) with respect to the Designated Aircraft (or constituent Airframe) or any associated Engine
has occurred. 
 (xvi) No Governmental Action. No action or proceeding shall have been instituted nor shall
governmental action be threatened before any court or governmental agency, nor shall any order, judgment or decree have been issued or proposed to be issued by any court or governmental agency at the time of the Delivery Date to set aside, restrain,
enjoin or prevent the completion and consummation of this Agreement or the transaction contemplated hereby. 
 (xvii) Know
Your Customer of Security Trustee. Such Loan Participant shall have received any document reasonably requested from the Security Trustee (not less than five Business Days prior to the initial Funding Date) by such Loan Participant in order for
such Loan Participant to satisfy any “know your customer” requirements with respect to the Security Trustee; provided that, should the Security Trustee fail to provide any such document or the Security Trustee fails to pass a
“know your customer” test of a Loan Participant, the Loan Participants shall appoint a successor Security Trustee pursuant to Section 14(h). 

  
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 (xviii) Internal Approvals. Each Finance Party shall have duly obtained
all internal approvals necessary to consummate the transactions contemplated herein; each Finance Party hereby confirms that all such approvals for itself have been obtained. 

Promptly upon the recording of the Mortgage and the Mortgage Supplement at the FAA covering the Designated Aircraft pursuant to the Federal Aviation Act, the
Borrower will cause FAA counsel to deliver to each Loan Participant and the Borrower an opinion as to the due and valid registration of the Designated Aircraft in the name of the Borrower, the due recording of the FAA Bill of Sale, the Mortgage and
the Mortgage Supplement covering the Designated Aircraft and the lack of filing of any intervening documents with respect to the Designated Aircraft. Following the Delivery Date, the Loan Participants may, if required by applicable law to perfect
the security interest granted in any Assigned Warranties, cause a huissier to serve a copy of a notice delivered on the Delivery Date to the Aircraft Manufacturer in accordance with Article 1690 of the French Civil Code. 

(c) Conditions Subsequent. The following conditions shall be conditions subsequent to the financing of the Designated Aircraft on the
Delivery Date: 
 (i) Within two Business Days of the Delivery Date, each Loan Participant shall have received evidence that
the Designated Aircraft has been duly certified as to type and airworthiness by the FAA, and the Borrower has authority to operate the Designated Aircraft (and each Loan Participant shall have received a copy of the airworthiness certificate for the
Designated Aircraft); and 
 (ii) Within 10 days of the Delivery Date, each Loan Participant shall have received evidence
that the Designated Aircraft has been duly registered in the name of the Borrower under the Federal Aviation Act, and such Loan Participant shall have received a copy of the FAA certificate of registration for the Designated Aircraft. 

Failure to satisfy these conditions subsequent within such time frame shall, on notice of the Security Trustee to the Borrower, constitute an
automatic Event of Default. 
 Section 5. Closing Procedure. 

(a) Filings with FAA. Following the Borrower’s notice of the Delivery Date as provided in Section 2 hereof, the parties will
pre-position the executed Mortgage and/or Mortgage Supplement with FAA Counsel in Oklahoma City, Oklahoma, together with the FAA Bill of Sale (and photocopy of the Warranty Bill of Sale) for the Designated Aircraft, the AC Form 8050-1 Aircraft
Registration Application for the Designated Aircraft in the name of the Borrower, and an AC Form 8050-135 FAA Entry Point Filing Form (which the parties agree shall be prepared by FAA Counsel). On the Delivery Date and in sufficient time to permit
the closing to occur during business hours of the FAA in Oklahoma City, Oklahoma, each Loan Participant will wire transfer its Commitment prior to 10:00 a.m. New York time to the Security Trustee. On the Delivery Date, by conference telephone
call among the Manufacturer, the Borrower, the Loan Participants (and/or their counsel acting on their behalf), each Agent, the Security Trustee, FAA Counsel and the Manufacturer will authorize the filing of the FAA Bill of Sale for the Designated
Aircraft to be delivered on the Delivery Date and the Borrower will 

  
 17 

 
cause the ownership interest of the Airframe and each Engine associated with the Designated Aircraft to be duly registered with the International Registry as a contract of sale and Borrower will
authorize the filing of each of the AC Form 8050-135 FAA Entry Point Filing Form, the AC Form 8050-1 Aircraft Registration Application, the Mortgage and/or the Mortgage Supplement for the Designated Aircraft upon receipt by the Manufacturer of the
purchase price for the Designated Aircraft and receipt by the Borrower (or its order) of the Loans for the Designated Aircraft. The irrevocable authorization to FAA Counsel to date and file the FAA Bill of Sale, the AC Form 8050-135 FAA Entry Point
Filing Form, the AC Form 8050-1 Aircraft Registration Application, and the Mortgage and/or Mortgage Supplement for the Designated Aircraft will occur prior to the transfer of the Loan for the Designated Aircraft to or for account of the Borrower,
but the filing will not occur until the Borrower’s (or its order) receipt of the funds at the designated account and the Manufacturer has released the Warranty Bill of Sale. The Loan Certificate(s) will be delivered to the Loan Participants and
legal opinions delivered to all parties immediately following the transfer of the related Loan as provided in Section 2(c). 
 (b)
Registrations by FAA Counsel. The Borrower irrevocably authorizes FAA counsel to file with the FAA the Mortgage and/or Mortgage Supplement and register the appropriate international interests with the International Registry for the Designated
Aircraft following the closing of the financing for the Designated Aircraft. FAA counsel may rely, without any further investigation, on any statement or certification by the Security Trustee that the closing of the financing for the Designated
Aircraft has occurred. 
 (c) Discharges in Event of Failure to Fund. If the financing for the Designated Aircraft shall fail to
occur utilizing the Commitments hereunder, the Security Trustee agrees to register, at the Borrower’s cost, a discharge at the International Registry of any international interest in favor of the Security Trustee in respect of the related
Airframe and the Engines. 
 (d) International Registry Filings. Each of the parties hereto consents to the registration with the
International Registry of the international interests with respect to the Mortgage and each Mortgage Supplement, and each party hereto covenants and agrees that it will take all such action reasonably requested by the Borrower or the Security
Trustee in order to make any registrations with the International Registry, including becoming a transacting user entity with the International Registry and providing consents to any registration as may be contemplated by the Operative Documents.

 Section 6. Extent of Interest of Holders. No Holder shall have any further interest in, or other right with respect
to, the mortgage and security interests created by the Mortgage when and if the Original Amount of and interest on all Loan Certificates in respect of the Designated Aircraft held by such Holder and all other sums payable to such Holder hereunder,
under the Mortgage and under such Loan Certificates shall have been paid in full, provided, however, to the extent, for any reason, any such sums paid to a Holder are rescinded or must otherwise be restored by such Holder, the obligations of the
Borrower and the security interests created by the Mortgage shall be automatically reinstated with respect to such Holder and the Security Trustee, as applicable. 

Section 7. Representations and Warranties. 

  
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 (a) Borrower’s Representations and Warranties. The Borrower represents and warrants
that on the date hereof and on the Delivery Date: 
 (i) Existence. The Borrower is a corporation duly organized and
validly existing in good standing pursuant to the laws of the State of Delaware; is duly qualified to do business as a foreign corporation in each jurisdiction in which its operations or the nature of its business requires to be so qualified, except
where the failure to be so qualified would not have a material adverse effect on the Borrower or its business; is a U.S. Air Carrier; and has the corporate power and authority to engage in air transport and to carry on scheduled passenger service as
presently conducted, to own the Designated Aircraft and to enter into and perform its obligations under the Operative Documents. 

(ii) Authorization. The execution, delivery and performance by the Borrower of the Operative Documents will, on the
Delivery Date, have been duly authorized by all necessary corporate action on the part of the Borrower, do not require any stockholder approval, or approval or consent of any trustee or holders of any indebtedness or obligations of the Borrower
except such as have been duly obtained by the Delivery Date and will on the Delivery Date be in full force and effect, and none of such Operative Documents contravenes any law, judgment, government rule, regulation or order binding on the Borrower
or the certificate of incorporation or bylaws of the Borrower or contravenes the provisions of, or constitutes a default under, or results in the creation of any Lien (other than Permitted Liens) upon the property of the Borrower under, any
indenture, mortgage, contract or other agreement to which the Borrower is a party or by which it or its properties may be bound or affected. 

(iii) No Additional Authorization. Neither the execution and delivery by the Borrower of the Operative Documents nor the
performance by the Borrower of its obligations thereunder requires the consent or approval of, the giving of notice to, or the registration with, or the taking of any other action in respect of any Federal, state or foreign government authority or
agency, except for (A) the orders, permits, waivers, exemptions, authorizations and approvals of the regulatory authorities having jurisdiction over the operation of the Designated Aircraft by the Borrower, which orders, permits, waivers,
exemptions, authorizations and approvals have been duly obtained or will on or prior to the Delivery Date be duly obtained, and will on the Delivery Date be in full force and effect, (B) any normal periodic and other reporting requirements
under the Federal Aviation Act and the regulations promulgated thereunder and the applicable rules and regulations of the FAA, in each case to the extent required to be given or obtained only after the Delivery Date and (C) any filings,
registrations or applications specifically described in this Agreement. 
 (iv) Enforceability. The Operative
Documents to which the Borrower is a party delivered on or prior to the date hereof or the Delivery Date, as the case may be, each constitute legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with
the terms thereof except as such may be limited by equitable principles or applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally. 

  
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 (v) No Pending Actions. There are no pending or threatened actions or
proceedings before any court, arbitrator or administrative agency which individually (or in the aggregate in the case of any group of related lawsuits) is expected to have a material and adverse effect on the financial condition of the Borrower or
the ability of the Borrower to perform its obligations under the Operative Documents. 
 (vi) Validity of Security
Interests. Except for (A) the filing with the FAA of an FAA Entry Point Filing Form – AC Form 8050-135 and the procurement of unique authorization code for the following registrations on the International Registry and the registration
of such interests on the International Registry: (i) the contracts of sale with respect to the Airframe and Engine constituted by the FAA Bill of Sale and/or the Warranty Bill of Sale with the Manufacturer as seller and the Borrower as buyer,
and (ii) the international interests with respect to the Airframe and each Engine constituted by the Mortgage and the related Mortgage Supplement (incorporating the terms of the Mortgage) with the Security Trustee as creditor and the Owner as
debtor, (B) the filing for recording pursuant to the Federal Aviation Act of the FAA Bill of Sale for the Designated Aircraft (and the application for registration of the Designated Aircraft in the name of the Borrower) and the Mortgage with
the Mortgage Supplement for the Designated Aircraft and (C) the filing of financing statements (and continuation statements at periodic intervals) with respect to the interests created by such documents under the Uniform Commercial Code of
Delaware and such other states as may be specified in the opinion furnished pursuant to Section 4(b)(x) hereof, no further action, including any filing or recording of any document (including any financing statement in respect thereof under
Article 9 of the Uniform Commercial Code of any applicable jurisdiction), is necessary or advisable in order to establish and perfect the first mortgage Lien on the Designated Aircraft in favor of the Security Trustee pursuant to the Mortgage
or to establish as against third parties the international interest under the Mortgage in any applicable jurisdiction in the United States. 

(vii) No Defaults. There has not occurred any event which constitutes a Default or an Event of Default under the
Mortgage which is presently continuing. 
 (viii) Finances of Borrower. (x) On the date hereof (in the case of
the December 31, 2014 financial statements) and on the Delivery Date, the statements of financial position of the Borrower as of December 31, 2014 and June 30, 2015 and the related statements of earnings and cash flow of the Borrower
in all material respects for the year and fiscal quarter, as the case may be, then ended, copies of which have been furnished to each Loan Participant, fairly present the financial condition of the Borrower at such date and the results of operations
and cash flow of the Borrower for the period ended on such dates, in accordance with generally accepted accounting principles consistently applied, subject, in the case of the June 30, 2015 statements, to normal year-end adjustments, and
(y) since December 31, 2014 there has been no material adverse change in such condition having a material adverse effect on the Borrower’s ability to perform its obligations under the Operative Documents. 

  
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 (ix) Liens on Aircraft. On the Delivery Date, the Borrower will have good
title to the Designated Aircraft free and clear of all Liens, except the Lien of the Mortgage. On the Delivery Date, the Designated Aircraft (A) shall have a valid export certificate of airworthiness as to type and airworthiness, (B) will
have been insured by the Borrower in accordance with the terms of the Mortgage, will have suffered no Event of Loss and will be in the condition and state of repair required under the terms of the Mortgage and (C) will have the necessary
instruments filed with the FAA in order to duly register the Designated Aircraft in the name of the Borrower under the Federal Aviation Act. 

(x) Securities Compliance. Assuming the Loan Participants are acquiring their Loan Certificates in the ordinary course
of their commercial banking business, none of the transactions contemplated by this Agreement will violate or result in a violation of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any regulations issued
pursuant thereto. 
 (xi) No Public Offering. Neither the Borrower nor anyone acting on behalf of the Borrower has
directly or indirectly offered any interest in the Loan Certificates for sale to, or solicited any offer to acquire any of the same from, anyone other than the Loan Participants and not more than 35 other institutions believed capable of evaluating
and bearing the risks of investment in the transactions contemplated hereby. 
 (xii) No ERISA Violation. (v) The
Borrower has not engaged in any transaction in connection with which the Borrower could be subjected to either a material civil penalty assessed pursuant to Section 502(i) of ERISA, or a material tax imposed by Section 4975 of the Code;
(w) no material liability to the Pension Benefit Guaranty Corporation (other than liability for premiums) has been incurred by the Borrower with respect to any Plan; (x) there has been no event or condition which presents a material risk
of termination of any Plan by the Pension Benefit Guaranty Corporation; (y) the Borrower and any affiliate (as defined below) has not committed, or does not expect to commit, a failure described in ERISA Section 303(k)(1) or
Section 430(k)(1) of the Code (whether or not waived) with respect to any Plan; and (z) no material amount of “withdrawal liability,” as that term is used in Section 4201 of ERISA, has been or is expected to be incurred by
the Borrower nor has the Borrower or any affiliate of the Borrower been notified by any multi-employer plan (within the meaning of Section 3(37)(A) of ERISA) that such multi-employer plan is in reorganization or insolvency within the meaning of
Section 4241 or Section 4245 of ERISA or that such multi-employer plan intends to terminate or has been terminated under Section 4041A of ERISA (for purposes of subclauses (y) and (z), the term “affiliate” shall mean
any corporation or person (within the meaning of ERISA Section 3(9)) which together with the Borrower and any other related entity would be deemed to be a “single employer” within the meaning of Section 414(b), (c), (m) or
(o) of the Code. 
 (xiii) No “Prohibited Transactions”. Assuming the accuracy of the representations
set forth in Section 7(b)(ii) (and Section 6(ii) of each Assignment and Assumption Agreement, if any), the purchase and holding of the Loan Certificates will not result in a “prohibited transaction,” within the meaning of
Section 406 of ERISA or Section 4975 of the Code which could subject the Borrower to any tax or penalty pursuant to Section 4975 of the Code or Section 502(i) of ERISA. 

  
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 (xiv) Investment Company. The Borrower is not an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of 1940. 
 (xv) No Material
Misstatement or Omission. None of the reports, financial statements, certificates or other information furnished by or on behalf of the Borrower to the Security Trustee, any Agent or any Loan Participant in connection with the negotiation of
this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. 
 (xvi) Federal Reserve Regulations. No part of the
proceeds of any Loan hereunder will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board of Governors of the Federal Reserve, including Regulations U and X. 

(xvii) Cape Town Matters. (A) The Borrower: is a “transacting user entity” (as such term is defined in
the Regulations of the International Registry); is “situated”, for the purposes of the Cape Town Convention, in the United States; and on the Delivery Date will have the power to “dispose” (as such term is used in the Cape Town
Convention) of the Airframe and related Engines financed on the Delivery Date; (B) the Airframe and related Engines financed on the Delivery Date are “aircraft objects” (as defined in the Cape Town Convention); (C) the United
States is a Contracting State under the Cape Town Convention; and (D) the FAA Bill of Sale for the Airframe and/or the Warranty Bill of Sale for the Airframe and related Engines constitutes a “contract of sale” (as defined in the Cape
Town Convention) and the Mortgage and the Mortgage Supplement for the Designated Aircraft conveys an international interest in the Airframe and related Engines. 

(xviii) AML Laws; Anti-Corruption Laws and Sanctions. The Borrower has implemented and maintains in effect policies and
procedures designed to ensure compliance by the Borrower, its subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable AML Laws and applicable Sanctions. None of (a) the Borrower, any
subsidiary or any of their respective directors or officers, or, to the knowledge of the Borrower, any of their respective employees or Affiliates, or (b) to the knowledge of the Borrower, any agent of the Borrower or any subsidiary or other
Affiliate that will act in any capacity in connection with or benefit from the credit facility established hereby, (i) is a Sanctioned Person, or (ii) is in violation of AML Laws, Anti-Corruption Laws, or Sanctions. No Loans, use of
proceeds or other transaction contemplated by this Agreement will cause a violation of AML Laws, Anti-Corruption Laws or applicable Sanctions by any person participating in the transactions contemplated by this Agreement, whether as lender,
borrower, guarantor, agent, or otherwise. The Borrower represents that, except as disclosed to each Agent and the Loan Participants prior to the date hereof, neither it nor any of its subsidiaries, nor its parent company, or, to the knowledge of the
Borrower, any other Affiliate has engaged in or intends to engage in any dealings or transactions with, or for the benefit of, any Sanctioned Person or with or in any Sanctioned Country. 

  
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 (b) Representations and Warranties of the Security Trustee and Loan Participants. 

(i) The Security Trustee represents and warrants that: 

(1) Authorization. It has all power, authority, and legal right to execute, deliver, and carry out the terms of each of
the Operative Documents to which the Security Trustee is a party. 
 (2) Execution. It has duly authorized the
execution and delivery of this Agreement and the other Operative Documents to which it is a party. 
 (3) No
Violation. The Security Trustee’s execution and delivery of each Operative Document to which it is a party will not result in any violation of, or be in conflict with, or constitute a default under, any of the provisions of its
organizational documents, or of any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, note or bond purchase agreement, license, bank loan, credit agreement, or other agreement to which it is a party or by which
it is bound, and will not contravene any existing law, governmental rule or regulation of the State of Utah, any existing law, governmental rule or regulation of the United States of America which governs the Security Trustee’s banking and
trust powers, judgment or order applicable to or binding on the Security Trustee. 
 (4) No Approvals. Neither the
Security Trustee’s execution and delivery of the Operative Documents to which it is a party, nor the Security Trustee’s consummation of any of the transactions contemplated thereby, requires the consent or approval of, giving of notice to,
or registration with any governmental authority. 
 (5) The Security Trustee is a transacting user entity. 

(ii) Loan Participants’ Representations and Warranties. Each Loan Participant severally represents and warrants
that on the date hereof and on the Delivery Date: 
 (1) it is acquiring its interest in its Loan Certificates either
(A) in the ordinary course of its general banking business or (B) for investment and not with a view to any distribution thereof that would require registration under the Securities Act of 1933, as amended, subject, however, to the
disposition of its property being at all times within its control; 

  
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 (2) the Operative Documents to which it is a party delivered on or prior to the
date hereof or the Delivery Date, as the case may be, each constitute legal, valid and binding obligations of such Loan Participant enforceable against such Loan Participant in accordance with the terms thereof except as such may be limited by
equitable principles or applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally; and 

(3) either (i) no part of the funds to be used by it for the purchase of the Loan Certificates shall constitute “plan
assets” as defined in Section 3(42) of ERISA or otherwise, nor shall its interest become “plan assets” during the period it holds the Loan Certificates or (ii) its purchase and holding of the Loan Certificates shall be
covered by a prohibited transaction class exemption issued by the U.S. Department of Labor. 
 Section 8. Indemnities.

 (a) General Indemnity. 

(i) Subject to the next following paragraph, the Borrower hereby agrees to indemnify each Indemnitee against, and agrees to
protect, save and keep harmless each of them from any and all Expenses imposed on, incurred by or asserted against any Indemnitee arising out of or directly resulting from (A) the operation, possession, use, maintenance, overhaul, testing,
registration, reregistration, delivery, non-delivery, lease, nonuse, modification, alteration, or sale of the Aircraft, the Airframe or any Engine, or any engine used in connection with the Airframe or any part of any of the foregoing by the
Borrower, any lessee or any other Person whatsoever, whether or not such operation, possession, use, maintenance, overhaul, testing, registration, reregistration, delivery, non-delivery, lease, nonuse, modification, alteration, or sale is in
compliance with the terms of the Mortgage, including, without limitation, claims for death, personal injury or property damage or other loss or harm to any person whatsoever and claims relating to any laws, rules or regulations pertaining to such
operation, possession, use, maintenance, overhaul, testing, registration, reregistration, delivery, non-delivery, lease, non-use, modification, alteration, sale or return including environmental control, noise and pollution laws, rules or
regulations; (B) the manufacture, design, purchase, acceptance, rejection, delivery, or condition of the Aircraft, the Airframe or any Engine, any engine used in connection with the Airframe, or any part of any of the foregoing including,
without limitation, latent and other defects, whether or not discoverable, or trademark or copyright infringement; (C) any breach of or failure to perform or observe, or any other noncompliance with, any covenant or agreement to be performed,
or other obligation of the Borrower under any of the Operative Documents to which it is a party, or the falsity of any representation or warranty of the Borrower in any of the Operative Documents to which it is a party; (D) the offer, sale and
delivery by the Borrower or anyone acting on behalf of the Borrower of any Loan Certificates or successor debt obligations issued in connection with the refunding or refinancing thereof (including, without limitation, any claim arising out of the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other Federal or state statute, law or regulation, or at common law or otherwise relating to securities (collectively “Securities
Liabilities”)) (the indemnity provided in this clause (D) to 

  
 24 

 
extend also to any Person who controls an Indemnitee, its successors, assigns, employees, directors, officers, servants and agents within the meaning of Section 15 of the Securities Act of
1933, as amended); and (E) the transactions contemplated by the Operative Documents or any lease under the Mortgage, any Event of Default under the Mortgage or the enforcement against the Borrower of any of the terms thereof (including, without
limitation, Article IX of the Mortgage). 
 (ii) Limitations on Indemnity. The foregoing indemnity shall not
extend to any Expense of any Indemnitee to the extent attributable to one or more of the following: (1) acts or omissions involving the willful misconduct or gross negligence of such Indemnitee or any Person acting on behalf of such Indemnitee
(other than gross negligence imputed to such Indemnitee solely by reason of its interest in the Aircraft); (2) the failure by such Indemnitee to perform or observe any agreement, covenant or condition in any of the Operative Documents
applicable to it, including, without limitation, the creation or existence of a Security Trustee Lien or a Lender Lien (except to the extent such failure was caused directly by the failure of the Borrower to perform any of its obligations under the
Operative Documents); (3) any representation or warranty by such Indemnitee in the Operative Documents or in connection therewith being incorrect in any material respect; (4) with respect to any Indemnitee, a disposition (voluntary or
involuntary) by such Indemnitee of all or any part of such Indemnitee’s interest in the Airframe, any Engine or in any Operative Document other than during the continuance of an Event of Default; (5) other than amounts necessary to make
payments on an after-tax basis pursuant to Section 8(a)(iii), any Tax, or increase in Tax liability under any applicable law whether or not the Borrower is required to indemnify for such Tax pursuant to Schedule III hereto; (6) acts
or events occurring after the transfer of possession of the Aircraft pursuant to Article IX of the Mortgage except to the extent that such Claim is attributable to acts occurring in connection with the exercise of remedies pursuant to
Section 9.01 of the Mortgage following the occurrence and continuance of an Event of Default; (7) a failure on the part of the Security Trustee or either Agent to distribute in accordance with this Agreement or the Mortgage any amounts
received and distributable by it hereunder or thereunder; and (8) any Expense which is payable or borne by a Person other than the Borrower pursuant to any provision of any Operative Document. 

(iii) Taxes. The Borrower further agrees that any payment or indemnity pursuant to this Section 8(a) in respect of
any “Expense” shall be in an amount which, after deduction of all Taxes required to be paid by such recipient with respect to such payment or indemnity under the laws of any Federal, state or local government or taxing authority in the
United States, or under the laws of any taxing authority or governmental subdivision of a foreign country, or any territory or possession of the United States or any international authority, shall be equal to the excess, if any, of (A) the
amount of such Expense over (B) the net reduction in Taxes required to be paid by such recipient resulting from the accrual or payment of such Expense. 

(iv) Claims Against Indemnities. If a claim is made against an Indemnitee involving one or more Expenses and such
Indemnitee has notice thereof, such Indemnitee shall promptly after receiving such notice give notice of such claim to the 

  
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Borrower; provided that the failure to provide such notice shall not release the Borrower from any of its obligations to indemnify hereunder except to the extent that the Borrower is prejudiced
as a result of the failure to give such notice in a timely fashion, and no payment by the Borrower to an Indemnitee pursuant to this Section 8(a) shall be deemed to constitute a waiver or release of any right or remedy which the Borrower may
have against such Indemnitee for any actual damages as a result of the failure by such Indemnitee to give the Borrower such notice. The Borrower shall be entitled, at its sole cost and expense, acting through counsel reasonably acceptable to the
respective Indemnitee, so long as the Borrower has acknowledged in writing its responsibility for such Expense hereunder (unless such Expense is covered by clause (ii) of this Section 8(a), except that such acknowledgment does not apply if
the decision of a court or arbitrator provides that the Borrower is not liable hereunder), (A) in any judicial or administrative proceeding that involves solely a claim for one or more Expenses, to assume responsibility for and control thereof,
(B) in any judicial or administrative proceeding involving a claim for one or more Expenses and other claims related or unrelated to the transactions contemplated by the Operative Documents, to assume responsibility for and control of such
claim for Expenses to the extent that the same may be and is severed from such other claims (and such Indemnitee shall use its reasonable efforts to obtain such severance), and (C) in any other case, to be consulted by such Indemnitee with
respect to judicial proceedings subject to the control of such Indemnitee and to be allowed, at the Borrower’s sole expense, to participate therein. The Indemnitee may participate at its own expense and with its own counsel in any judicial
proceeding controlled by the Borrower pursuant to the preceding provisions. Notwithstanding any of the foregoing, the Borrower shall not be entitled to assume responsibility for and control of any such judicial or administrative proceedings if any
Event of Default shall have occurred and be continuing, if such proceedings will involve a material risk of the sale, forfeiture or loss of the Aircraft unless the Borrower shall have posted a bond or other security reasonably satisfactory to the
relevant Indemnitee with respect to such risk or if such proceedings could entail any risk of criminal liability being imposed on such Indemnitee. 

(v) Information for Borrower. The Indemnitee shall supply the Borrower with such information reasonably requested by the
Borrower as is necessary or advisable for the Borrower to control or participate in any proceeding to the extent permitted by this Section 8(a). Such Indemnitee shall not enter into a settlement or other compromise with respect to any Expense
without the prior written consent of the Borrower, which consent shall not be unreasonably withheld or delayed, unless such Indemnitee waives its right to be indemnified with respect to such Expense under this Section 8(a). 

(vi) Information for Indemnitees. The Borrower shall supply the Indemnitee with such information reasonably requested by
the Indemnitee as is necessary or advisable for the Indemnitee to control or participate in any proceeding to the extent permitted by this Section 8(a). 

  
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 (vii) Expenses Covered by Insurance. In the case of any Expense
indemnified by the Borrower hereunder which is covered by a policy of insurance maintained by the Borrower (or any Lessee) pursuant to Article VI of the Mortgage or otherwise, it shall be a condition of such indemnity with respect to any
particular Indemnitee that such Indemnitee shall cooperate with the insurers in the exercise of their rights to investigate, defend or compromise such Expense as may be required to retain the benefits of such insurance with respect to such Expense.
Notwithstanding any of the foregoing to the contrary, with respect to any Expense which is covered under policies of insurance maintained by the Borrower (or any Lessee) pursuant to Article VI of the Mortgage or otherwise, the rights of an
Indemnitee to control or participate in any proceedings shall be modified to the extent necessary to comply with the requirements of such policies and the rights of the insurers thereunder. 

(viii) Subrogation. To the extent of any payment of any Expense pursuant to this Section 8(a), the Borrower,
without any further action, shall be subrogated to any claims the Indemnitee may have relating thereto. The Indemnitee agrees to give such further assurances or agreements and to cooperate with the Borrower to permit the Borrower to pursue such
claims, if any, to the extent reasonably requested by the Borrower. 
 (ix) Reimbursement. In the event that the
Borrower shall have paid an amount to an Indemnitee pursuant to this Section 8(a), and such Indemnitee subsequently shall be reimbursed in respect of such indemnified amount from any other Person, such Indemnitee shall promptly pay the Borrower
the amount of such reimbursement, including interest received attributable thereto, provided that no Event of Default has occurred and is continuing. 

(b) Tax Indemnities. The general tax and withholding tax indemnities are specified in Schedule III hereto, which provisions are
incorporated herein by reference. 
 (c) Interest. The Borrower will pay to each Indemnitee on demand, to the extent permitted by
applicable law, interest on any amount of indemnity not paid when due pursuant to this Section 8 until the same shall be paid, at the Past Due Rate. 

(d) Illegality. 

(i) Change in Law or Illegality Event. Notwithstanding any other provision in this Agreement, if any Change in Law or
Illegality Event shall make it unlawful for any Loan Participant to maintain its Commitment or its portion of the Loans in respect of the Designated Aircraft, then the affected Loan Participant shall deliver to the Borrower and the Security Trustee
a written certification describing in reasonable detail the events giving rise to such unlawfulness. Upon receipt by Borrower of such notice, the Borrower and such Loan Participant shall negotiate for a period of 60 days in an effort to mitigate
such illegality. During such mitigation period the affected Loan Participant shall not be required to advance any Loans to the Borrower hereunder. If after such mitigation period, such unlawfulness cannot be resolved, then the provisions of
clause (ii) below shall apply. 

  
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 (ii) Impaired Loan Participants. If there shall have occurred and be
continuing an event with respect to a Loan Participant of the type described in clause (i) above (an “Impaired Loan Participant”), then such Impaired Loan Participant may and, if so instructed by the Borrower shall: 

(x) Assumption of Remaining Commitment. Notify the Borrower and each other Loan Participant that such unlawfulness has
occurred and give notice that (A) if no Loan shall then have been made by such Impaired Loan Participant, no Loan shall be made to the Borrower by such Impaired Loan Participant or (B) if a Loan shall then have been made by such Impaired
Loan Participant and remain outstanding, no further Loans shall be made to the Borrower by such Impaired Loan Participant, and request each other Loan Participant to take up the relevant portion of such Impaired Loan Participant’s unfunded
Commitments, if any, in which case each such other Loan Participant may (but shall not be obligated to) in its sole discretion assume its pro rata share of such Impaired Loan Participant’s Commitment by providing written notice of such
assumption to such Impaired Loan Participant, the Security Trustee, the relevant Agent and the Borrower within five Business Days, and if such other Loan Participant does not so elect in writing to assume its pro rata share of the Impaired Loan
Participant’s Commitments, such Impaired Loan Participant shall send a further notice to each remaining Loan Participant, which in turn may (but shall not be obligated to) in its sole discretion assume the remaining available Commitments of
such Impaired Loan Participant on a pro rata basis by providing written notice of such assumption to such Impaired Loan Participant, the Security Trustee, each Agent and the Borrower within five Business Days; and 

(y) Assumption by Remaining Loan Participants. Notify the Borrower and each other Loan Participant that such
unlawfulness has occurred and, to the extent that applicable laws do not require the immediate repayment of all or a portion of such Impaired Loan Participant’s Loans, request each other Loan Participant to assume the relevant portion of such
Impaired Loan Participant’s Loans, in which case each such other Loan Participant may (but shall not be obligated to) in its sole discretion assume its pro rata share of such Impaired Loan Participant’s Loans by providing written notice of
such assumption to such Impaired Loan Participant, the Security Trustee and the Borrower within five Business Days and otherwise complying with the procedure set out in Section 13(c) hereof, and if any other Loan Participant does not so elect
in writing to assume its pro rata share of the Impaired Loan Participant’s Loans, such Impaired Loan Participant shall send a further notice to each remaining Loan Participant and the Borrower, and each remaining Loan Participant in turn may
(but shall not be obligated to) in its sole discretion assume the remaining available Loans of such Impaired Loan Participant on a pro rata basis by providing written notice of such assumption to such Impaired Loan Participant, the Security Trustee,
the relevant Agent and the Borrower within five Business Days and otherwise complying with the procedure set out in Section 13(c) hereof; and 

(z) Payment of Break Amount. To the extent that any of such Impaired Loan Participant’s Loans are not assumed by
one or more of the other Loan Participants or a third party as contemplated in clause (x) or (y) above, or that applicable 

  
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laws require the immediate repayment of all or a portion of such Impaired Loan Participant’s Loans, require the Borrower to repay the Loans advanced by such Impaired Loan Participant in full
together with accrued interest and Break Amount, and all other amounts accrued and owing to such Impaired Loan Participant under the Operative Documents but without any Prepayment Fee, premium or penalty, whereupon the Borrower shall on the date
specified in such notice (which shall be the earlier of the date on which applicable laws require the immediate repayment of all or a portion of such Impaired Loan Participant’s Loans and the Interest Payment Date first occurring not earlier
than ten Business Days from the date of such notice), repay in full all such amounts. 
 (iii) Presumption. For the
avoidance of doubt, the failure by any Loan Participant to provide written notice of assumption of an Impaired Loan Participant’s Commitments or Loans within the relevant time frame contemplated by clause (x) or (y) above, as
applicable, shall be conclusive evidence that such Loan Participant has elected not to assume any such additional Commitments or Loans. To the extent that any of such Impaired Loan Participant’s Commitments or Loans are not assumed by one or
more of the other Loan Participants as contemplated in clause (x) or (y) above, as applicable, the unassumed portion will be cancelled and the Commitments will be reduced accordingly. Nothing in this Section (d) shall affect the
obligation of any Loan Participant other than an Impaired Loan Participant to make or maintain its Loan in accordance with the terms of this Agreement. 

Section 9. Covenants of the Borrower. 

(a) Borrower Merger. For so long as the Lien constituted by the Mortgage remains in force, the Borrower shall not enter into any merger
or consolidation, or sell, transfer, lease or convey all or substantially all of its assets, unless: 
 (i) No
Default. No Event of Default has occurred and is continuing or would result therefrom; 
 (ii) U.S. Air Carrier.
The Borrower is the surviving corporation or, if otherwise, such other Person or continuing corporation (herein called “Successor Corporation”) is a corporation or limited liability company incorporated under the laws
of a state of the United States, and shall be a U.S. Air Carrier; 
 (iii) Requirements of Successor Corporation. In
the case of Successor Corporation, the Successor Corporation shall (A) execute, prior to or contemporaneously with the consummation of such transaction, such agreements, if any, as are in the reasonable opinion of the Security Trustee necessary
or advisable to evidence the assumption by the Successor Corporation of liability for all of the obligations of the Borrower under the Mortgage and the other Operative Documents, (B) make such registrations, recordings and filings, and take
such other action with respect to the Operative Documents, as shall be necessary or advisable in the reasonable opinion of the Loan Participants to protect their security interest in the Aircraft, and (C) cause to be delivered to the Security
Trustee, each Agent and the Loan Participants such legal 

  
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opinions (which may be from in-house counsel) as any of them may reasonably request in connection with the matters specified in the preceding clauses (A) and (B), provided that if by
operation of law (x) assumption by the Successor Corporation of liability for all of the obligations of the Borrower under the Mortgage and the other Operative Documents and (y) protection of the Loan Participants’ security interest
in the Aircraft, occurs automatically, to the extent applicable, the agreements, registrations, recordations, filings and legal opinions described in this Section 9(a)(iii) shall not be required; and 

(iv) Tangible Net Worth of Successor Corporation. Prior to such transaction, the Loan Participants shall obtain evidence
to the effect that the Tangible Net Worth of the Borrower or Successor Corporation after giving effect to such transaction is no less than the Tangible Net Worth of the Borrower immediately prior to such transaction. 

As used herein, 

“Tangible Net Worth” means, as at any date for any Person, the sum for such Person and its Subsidiaries
(determined on a consolidated basis without duplication in accordance with generally accepted accounting principles), of the following: 

(a) the amount of capital stock, plus 

(b) the amount of surplus and retained earnings (or, in the case of a surplus or retained earnings deficit, minus the amount of such
deficit), minus 
 (c) the sum of the following: cost of treasury shares and the book value of all assets which should be classified
as intangibles, including goodwill, minority interests, research and development costs, trademarks, trade names, copyrights, patents and franchises, and unamortized debt discount and expense. 

Upon any consolidation or merger in accordance with this Section 9(a), the Successor Corporation shall succeed to, and be substituted
for, and may exercise every right and power of, the Borrower under this Agreement with the same effect as if such Successor Corporation had been named as the Borrower herein. 

(b) U.S. Air Carrier. The Borrower covenants and agrees that at all times until the Lien of the Mortgage shall be discharged, released
or terminated pursuant to Section 14.01 of the Mortgage, it will be an “air carrier” within the meaning of Section 40102(a) of the Federal Aviation Act operating under certificates issued pursuant to such Act and shall otherwise
meet the standards of the definition of U.S. Air Carrier. 
 (c) Further Assurances. The Borrower covenants and agrees with each
party hereto as follows: 
 (i) Further Acts. The Borrower will cause to be done, executed, acknowledged and delivered
all and every such further acts, conveyances and assurances as any Holder shall reasonably require for accomplishing the purposes of this Agreement and the other Operative Documents; provided that any instrument or other document so

  
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executed by the Borrower will not expand any obligations or limit any rights of the Borrower in respect of the transactions contemplated by any Operative Documents. The Borrower shall cause the
Aircraft to remain duly registered, in the name of the Borrower, except as otherwise permitted under Section 3.01(b) of the Mortgage, under the Federal Aviation Act. 

(ii) Maintenance of Security Interests. The Borrower, at its expense, will cause (A) the Mortgage, all Mortgage
Supplements and all amendments to the Mortgage to be promptly filed and recorded, or filed for recording, to the extent permitted under the Federal Aviation Act, or required under any other applicable law, (B) subject only to the consent of the
Security Trustee (or the Manufacturer, in the case of the FAA Bill of Sale and the Warranty Bill of Sale), the registration with the International Registry of the contract of sale and the international interests with respect to the FAA Bill of Sale
and/or Warranty Bill of Sale, the Mortgage and Mortgage Supplement and (C) the Lien of the Mortgage to at all times be and remain a first priority and perfected Lien on the Mortgage Estate. The Borrower agrees to furnish the Security Trustee,
each Agent and the Loan Participants with copies of the foregoing documents with recording and registration data as promptly as practicable following the issuance of same by the FAA and the International Registry. 

(iii) Costs and Expenses. The Borrower shall pay all reasonable costs and expenses (including costs and disbursements of
counsel) incurred by the Security Trustee, each Agent and the Holders after the date hereof in connection with (x) any supplements or amendments of the Operative Documents (including, without limitation, any related recording and registration
costs) (other than any supplement or amendment associated with the syndication of the Loan Certificates or the sale of participation interests therein), (y) any Event of Default and any enforcement or collection proceedings resulting therefrom
or in connection with the negotiation of any restructuring or “work-out” (whether or not consummated), or (z) the enforcement of this Section 9. 

(d) Sanctions, Etc. 

(i) Compliance with Anti-Corruption Laws and Sanctions. The Borrower will maintain in effect and enforce policies and
procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws, applicable AML Laws and applicable Sanctions. 

(ii) Use of Proceeds. The Borrower will not request any Loans, and the Borrower shall not use, and shall procure that
its subsidiaries and its or their respective directors, officers, employees, Affiliates and agents shall not use, directly or indirectly, the proceeds of any Loans, or lend, contribute or otherwise make available such proceeds to any subsidiary,
other Affiliate, joint venture partner or other Person, (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption
Laws or AML Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any 

  
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Sanctioned Country, or involving any goods originating in or with a Sanctioned Person or Sanctioned Country, or (C) in any manner that would result in the violation of any Sanctions by any
Person (including any Person participating in the transactions contemplated hereunder, whether as underwriter, advisor lender, investor or otherwise). 

(e) Financial Information. The Borrower shall provide to the Agents and the Security Trustee (i) (x) within 60
days after the end of each of the first three quarterly periods in each fiscal year of the Borrower, either (1) a consolidated balance sheet of the Borrower and its consolidated subsidiaries prepared by it as of the close of such period,
together with the related consolidated statements of income for such period, certified by the Borrower’s chief executive officer or chief financial officer as having been prepared on a consolidated basis in accordance with GAAP consistently
applied (except for inconsistencies required by changes to GAAP and changes approved by the accountants referred to in clause (y)(1) below in accordance with GAAP), subject to normal year-end audit adjustments and the absence of footnotes or
(2) a report of the Borrower on Form 10-Q in respect of such period in the form filed with the Securities and Exchange Commission; and (y) within 120 days after the close of each fiscal year of the Borrower, either
(1) a consolidated balance sheet of the Borrower and its consolidated subsidiaries as of the close of such fiscal year, together with the related consolidated statements of income for such fiscal year, as certified by independent public
accountants of recognized national standing selected by the Borrower to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its
subsidiaries on a consolidated basis in accordance with GAAP consistently applied (except for inconsistencies required by changes to GAAP and changes approved by such accountants in accordance with GAAP), or (2) a report of the Borrower
on Form 10-K in respect of such year in the form filed with the Securities and Exchange Commission; and (ii) such other non-confidential information readily available to the Borrower as the Agents or the Security Trustee shall reasonably
request. The items required to be furnished pursuant to clause (i) above shall be deemed to have been furnished on the date on which such item is posted on the Securities and Exchange Commission’s website at www.sec.gov, and such posting
shall be deemed to satisfy the requirements of clause (e). 
 Section 10. Notices. All notices, demands, instructions and
other communications required or permitted to be given to or made upon any party hereto shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, or by facsimile, or by prepaid courier service,
and shall be effective upon receipt. 
 Unless otherwise specified in a notice sent or delivered in accordance with the foregoing provisions
of this Section 10, notices, demands, instructions and other communications in writing shall be given to or made upon the respective parties hereto at their respective addresses (or to their respective facsimile numbers) as follows: (a) if
to the Borrower or the Security Trustee, to the respective addresses set forth in Section 14.06 of the Mortgage; (b) if to a Loan Participant, to the address set forth on Schedule I hereto; or (c) if to any subsequent Holder,
addressed to such Holder at its address set forth in the Certificate Register maintained pursuant to the Mortgage. 

  
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 Section 11. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. 

(a) 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. 
 (b) Submission to Jurisdiction. Each party hereby
irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Operative Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Operative Document shall affect any
right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any other Operative Document against another party or its properties in the courts of any jurisdiction. 

(c) Forum. Each party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(d) Service of Process. Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in
Section 10. Nothing in this Agreement or any other Operative Document will affect the right of any party to this Agreement or any other Operative Document to serve process in any other manner permitted by law. 

(e) Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 12. Invoices and Payment of Expenses. The Security Trustee, each Agent and the Loan Participants shall promptly
submit to the Borrower for its prompt approval copies of invoices of the Transaction Expenses (as defined below) as they are received. The Borrower 

  
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agrees to pay Transaction Expenses promptly upon receipt of invoices of such Transaction Expenses. For the purposes hereof, “Transaction Expenses” means
(i) with respect to the preparation, negotiation, execution and delivery of this Agreement and the closing or anticipated closing of the Designated Aircraft on the Delivery Date, the reasonable fees, and out-of-pocket expenses and disbursements
of FAA Counsel and of Vedder Price P.C., special counsel to the Loan Participants, (ii) all fees, taxes and other charges payable in connection with the recording or filing of instruments and financing statements, or registration of any
international interest with the International Registry, (iii) all other fees, taxes and charges payable in connection with the execution, maintenance and enforcement of the Loan Participants’ security interests, (iv) the
Underwriters’ and each other Loan Participant’s reasonable out-of-pocket travel expenses relating to the negotiation and closing of this transaction, and (v) the Security Trustee’s fee as separately agreed; provided the
Transaction Expenses of a Loan Participant which fails (a) to negotiate this Agreement and each other Operative Document in good faith, (b) to fund any Loan notwithstanding the satisfaction of the applicable conditions precedent or
(c) to obtain the internal credit approvals necessary to consummate the transactions contemplated herein, shall not be subject to reimbursement. 

Section 13. Successors and Assigns. 

(a) Benefits. This Agreement shall be binding upon and shall inure to the benefit of, and shall be enforceable by, the parties hereto
and their respective successors and permitted assigns including each successive holder of any Loan Certificate(s) issued and delivered pursuant to this Agreement or the Mortgage whether or not an express assignment to any such holder of rights under
the Agreement has been made. 
 (b) Assignments by Borrower. The Borrower may not assign any of its rights or obligations under this
Agreement or the other Operative Documents except to the extent expressly provided thereby. 
 (c) Assignments by Loan Participants.
Each Loan Participant may assign its Commitments and/or Loan Certificates (A) without the consent of the Borrower, to any Permitted Transferee and (B) with the prior written consent of the Borrower (which consent shall not be unreasonably
withheld or delayed) to any other Person; provided that, in the case of any assignment by a Senior Loan Participant of all or any portion of its Commitment, such Senior Loan Participant shall have received the prior written consent of the Borrower,
which consent shall not be unreasonably withheld. Any such assignment shall be subject to the following terms: 
 (i) it
shall be effected pursuant to an agreement substantially in the form of the Assignment and Assumption Agreement; 
 (ii) it
shall be in a minimum original principal amount of $5,000,000 (in the case of Senior Loans); and $2,000,000 (in the case of Junior Loans); and 

(iii) there shall be no more than four Senior Loan Participants in the aggregate for the Senior Loans after giving effect to
such assignment. 

  
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 Notwithstanding anything to the contrary set forth herein, no assignment or other transfer
hereunder shall (1) other than in the case of an assignment by the Original Junior Loan Participant to Norddeutsche Landesbank Girozentrale, require the Borrower as a result thereof to pay any greater amount hereunder than the assignor or
transferor Loan Participant was entitled to hereunder or (2) other than in the case of an assignment by the Original Junior Loan Participant to Norddeutsche Landesbank Girozentrale, otherwise increase the obligations of the Borrower under any
Operative Document by reference to the laws in effect at the time of the assignment or transfer or (3) in the case of an assignment or transfer of a Junior Commitment or a Junior Loan (x) to Norddeutsche Landesbank Girozentrale or
(y) by Norddeutsche Landesbank Girozentrale following an Event of Default to the Junior Agent or any Affiliate thereof, the minimum amount requirement specified in clause (ii) above shall not be applicable. Subject to Section 2(a),
effective upon the assignment of any Commitment, the assigning Loan Participant shall be relieved of its obligations in respect of such Commitment to the extent the assignee thereof shall have become obligated in respect thereof. The Borrower shall
not be liable for any costs, fees or expenses in connection with any assignment or transfer of Commitments or Loan Certificates except that, if an Event of Default shall have occurred and be continuing, the Borrower shall be liable for any
associated legal expenses reasonably incurred. 
 Section 14. The Agents; the Security Trustee. 

(a) Appointment, Powers and Immunities. Each Senior Loan Participant hereby irrevocably appoints and authorizes Credit Agricole
Corporate and Investment Bank to act as Senior Agent hereunder and under the other Operative Documents with such powers as are specifically delegated to the Senior Agent by the terms of this Agreement and of the other Operative Documents, together
with such other powers as are reasonably incidental thereto, and Credit Agricole Corporate and Investment Bank accepts such appointment. Each Junior Loan Participant hereby irrevocably appoints and authorizes Novus Tamweel Aviation Finance GP
Limited to act as Junior Agent hereunder and under the other Operative Documents with such powers as are specifically delegated to the Junior Agent by the terms of this Agreement and of the other Operative Documents, together with such other powers
as are reasonably incidental thereto, and Novus Tamweel Aviation Finance GP Limited accepts such appointment. Each Agent (which term as used in this sentence and in Section 14(e) and the first sentence of Section 14(f) hereof shall include
reference to such Agent and its affiliates and such Agent’s and its affiliates’ officers, directors, employees and agents): (i) shall have no duties or responsibilities except those expressly set forth in this Agreement and in the
other Operative Documents, and shall not by reason of this Agreement or any other Operative Document be a trustee for any Loan Participant; (ii) shall not be responsible to the Loan Participants for any recitals, statements, representations or
warranties contained in this Agreement or in any other Operative Document, or in any certificate or other document referred to or provided for in, or received by any of them under, this Agreement or any other Operative Document, or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement, any Loan Certificate or any other Operative Document or any other document referred to or provided for herein or therein or for any failure by the Borrower or any
other Person to perform any of its obligations hereunder or thereunder; (iii) shall not be required to initiate or conduct any litigation or collection proceedings hereunder or under any other Operative Document; and (iv) shall not be
responsible for any action taken or omitted to be taken by it hereunder or under any other Operative Document or under any other document or instrument referred to or provided for 

  
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herein or therein or in connection herewith or therewith, except for its own gross negligence or willful misconduct. Each Agent may employ agents and attorneys in fact and shall not be
responsible for the negligence or misconduct of any such agents or attorneys in fact selected by it in good faith. 
 (b) Reliance by
Agent. Each Agent shall be entitled to rely upon any certification, notice or other communication (including, without limitation, any thereof by telephone, telecopy, telex, telegram or cable) believed by it to be genuine and correct and to have
been signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by such Agent. As to any matters not expressly provided for by this Agreement or
any other Operative Document, each Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions given by the Controlling Creditor or all of the Loan Participants as is
required in such circumstance, and such instructions of such Loan Participants and any action taken or failure to act pursuant thereto shall be binding on all of the Loan Participants. 

(c) Non-Receipt of Funds by the Agents. Unless an Agent shall have been notified by a Loan Participant or the Borrower (the
“Payor”) prior to the date on which the Payor is to make payment to such Agent of (in the case of a Loan Participant) the proceeds of a Loan to be made by it hereunder or (in the case of the Borrower) a payment to such Agent for
account of one or more of the Loan Participants hereunder (such payment being herein called the “Required Payment”), which notice shall be effective upon receipt, that the Payor does not intend to make the Required Payment to such
Agent, such Agent may assume that the Required Payment has been made and may, in reliance upon such assumption (but shall not be required to), make the amount thereof available to the intended recipient(s) on such date and, if the Payor has not in
fact made the Required Payment to such Agent, the recipient(s) of such payment shall, on demand, repay to such Agent the amount so made available together with interest thereon in respect of each day during the period commencing on the date such
amount was so made available by such Agent until the date such Agent recovers such amount at a rate per annum equal to the Federal Funds Rate for such day and, if such recipient(s) shall fail promptly to make such payment, such Agent shall be
entitled to recover such amount, from the Payor, together with interest as aforesaid. 
 (d) Defaults. Neither Agent shall be deemed
to have knowledge or notice of the occurrence of a Default or Event of Default (other than the non-payment of principal of or interest on Loan Certificates) unless such Agent has received notice from a Loan Participant or the Borrower specifying
such Default and stating that such notice is a “Notice of Default”. In the event that such Agent receives such a notice of the occurrence of a Default, such Agent shall give prompt notice thereof to the Loan Participants (and shall give
each Loan Participant prompt notice of each such non-payment). Each Agent shall (subject to Section 13.01 of the Mortgage) take such action with respect to any Event of Default as shall be directed by the Controlling Creditor, provided that,
unless and until such Agent shall have received such directions, such Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as it shall deem advisable in the best
interest of the Loan Participants except to the extent that the Mortgage expressly requires that such action be taken, or not be taken, only with the consent or upon the authorization of the Controlling Creditor or all of the Loan Participants. 

  
 36 

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

(f) Non Reliance on Agents and Other Loan Participants. Each Loan Participant agrees that it has, independently and without reliance on
either Agent or any other Loan Participant, and based on such documents and information as it has deemed appropriate, made its own credit analysis of the Borrower and its own decision to enter into this Agreement and the other Operative Documents to
which it is or is to be a party and that it will, independently and without reliance upon either Agent or any other Loan Participant, and based on such documents and information as it shall deem appropriate at the time, continue to make its own
analysis and decisions in taking or not taking action under this Agreement. Neither Agent shall be required to keep itself informed as to the performance or observance by the Borrower of this Agreement or any of the other Operative Documents or any
other document referred to or provided for herein or therein or to inspect the properties or books of the Borrower. Except for notices, reports and other documents and information expressly required to be furnished to the Loan Participants by such
Agent hereunder, neither Agent shall have any duty or responsibility to provide any Loan Participant with any credit or other information concerning the affairs, financial condition or business of Borrower (or any of its affiliates) that may come
into the possession of such Agent or any of its affiliates. 
 (g) Failure to Act. Except for action expressly required of an Agent
hereunder and under the other Operative Documents, such Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances to its satisfaction from the Loan Participants of
their indemnification obligations under Section 14(e) hereof against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. 

(h) Resignation or Removal of Agent. Subject to the appointment and acceptance of a successor Agent as provided below, either Agent may
resign at any time by giving notice thereof to the Loan Participants and the Borrower. Upon any such resignation of the Senior Agent, the Majority Senior Holders shall have the right to appoint a successor Senior Agent which shall be, so long as no
Event of Default is continuing, reasonably acceptable to the 

  
 37 

 
Borrower, upon any such resignation of the Junior Agent, the Majority Junior Holders shall have the right to appoint a successor Junior Agent which shall be, so long as no Event of Default is
continuing, reasonably acceptable to the Borrower. If no successor Agent shall have been so appointed by the Majority Senior Holders or the Majority Junior Holders, as the case may be, and shall have accepted such appointment within 30 days after
the retiring Agent’s giving of notice of resignation, then the retiring Agent may, on behalf of the Loan Participants, appoint a successor Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. After the retiring Agent’s
resignation hereunder as Agent, the provisions of this Section 14 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Agent. The Borrower consents to any change in the
identity of such Agent on the International Registry as a result of the appointment of a successor Agent pursuant to this Section 14(h), and if required by the International Registry to reflect such change, will provide its further consent
thereto. 
 (i) Consents under Operative Documents. Subject to Section 13.01 of the Mortgage, no Agent may, without the prior
consent of the Controlling Creditor, consent to any modification, supplement, waiver, amendment or take any other action under any of the Operative Documents, or otherwise grant its consent, approval or waiver of any matter hereunder or under the
Mortgage, provided that, without the prior consent of each Loan Participant, such Agent shall not (except as provided herein or in the Operative Documents) release any collateral or otherwise terminate any Lien under any Operative Document providing
for collateral security, or agree to additional obligations being secured by such collateral security (unless the Lien for such additional obligations shall be junior to the Lien in favor of the other obligations secured by such Operative Document),
except that no such consent shall be required, and such Agent is hereby authorized, to release any Lien covering property which is the subject of a disposition of property permitted hereunder or under any other Operative Document or to which the
Controlling Creditor have consented. 
 (j) The Security Trustee. Each Loan Participant hereby acknowledges its irrevocable
appointment and authorization of Bank of Utah to act as its security trustee under the Mortgage and under the other Operative Documents with such powers as are specifically delegated to the Security Trustee by the terms of the Mortgage and of the
other Operative Documents, together with such other powers as are reasonably incidental thereto. The provisions of Article XI of the Mortgage are hereby incorporated herein by reference, with the same force and effect as though set forth herein
in their entirety. 
 (k) Junior Agent. The Junior Agent agrees to make the payments to the Junior Loan Participants as provided in
Section 2.03 of the Mortgage. 
 Section 15. Miscellaneous. 

(a) Section 1110 Compliance. Notwithstanding any provision herein or elsewhere contained to the contrary, it is understood and
agreed among the parties hereto that the transactions contemplated by this Agreement, and the other Operative Documents are expressly intended to be, shall be and should be construed so as to be, entitled to the full benefits of 11 U.S.C.
Section 1110, as amended from time to time, and any successor provision thereto. 

  
 38 

 (b) Survival of Agreements. The representations, warranties, indemnities and agreements of
the Borrower, the Security Trustee and each Loan Participant provided for in this Agreement and each party’s obligations under any and all thereof, shall survive the expiration or other termination of this Agreement or any other Operative
Document, except as expressly provided herein or therein. 
 (c) Separate Counterparts. 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 instrument. Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified, except by an instrument in writing signed by the party or parties thereto. 
 (d)
No Liability of Loan Participants. No Loan Participant shall have any obligation or duty to the Borrower, or to other Persons with respect to the transactions contemplated hereby except those obligations or duties of such Loan Participant
expressly set forth in this Agreement and the other Operative Documents and no Loan Participant shall be liable for performance by any other party hereto of such other party’s obligations or duties hereunder. Without limitation of the
generality of the foregoing, under no circumstances whatsoever shall any Loan Participant be liable to the Borrower for any action or inaction on the part of the Security Trustee in connection with the transactions contemplated herein, whether or
not such action or inaction is caused by willful misconduct or gross negligence of the Security Trustee. 
 (e) Approvals by Loan
Participants. Any reference herein to an approval, consent or waiver to be given by the Loan Participants shall be deemed hereunder to be an approval, consent or waiver, as the case may be, if the Controlling Creditor approves, consents or
waives, as the case may be. 
 (f) Non-Disclosure of Purchase Agreement. The Loan Participants agree that they shall not disclose to
any person (other than its legal counsel) the terms of the Purchase Agreement or the Airframe Warranties Agreement, except (i) as required by applicable law or governmental regulations, (ii) to their respective auditors, counsel or bank
examiners, (iii) in connection with any legal proceedings arising from the Airframe Warranties Agreement or the Purchase Agreement, or (iv) with the prior written consent of the Manufacturer, such consent not to be unreasonably withheld or
delayed. This paragraph is for the benefit of the Manufacturer who is a third party beneficiary of this Section 15(f). 
 (g)
Confidentiality. Each of the Loan Participants and the Security Trustee covenants and agrees to keep confidential, and not to disclose to any third parties, all non-public information received by it from the Borrower pursuant to the Operative
Documents, including any insurance report received pursuant to Article VI of the Mortgage, provided that such information may be made available: 

(1) to prospective and permitted transferees of a Loan Participant’s Loan Certificates or the Security Trustee’s
respective interest in the Aircraft, who agree to hold such information confidential, 

  
 39 

 (2) to any Holder’s counsel or independent certified public accountants,
independent insurance advisors or other agents who agree to hold such information confidential, 
 (3) as may be required by
applicable law or by any statute, court or administrative order or decree or governmental ruling or regulation (or, in the case of any Holder, to any bank examiner or other regulatory personnel) or 

(4) as may be necessary for purposes of enforcement of any Operative Document. 

Notwithstanding the foregoing, the legal obligations of confidentiality hereunder do not extend to the U.S. federal or state tax structure or
the U.S. federal or state tax treatment of this transaction. If any U.S. federal or state tax analyses or materials are provided to any party, such party is free to disclose any such analyses or materials without limitation. 

(h) Quiet Enjoyment. The Security Trustee, each Agent, each Loan Participant and each Holder agrees that neither it nor any Person
claiming by, through or under it shall take any action in violation of the Borrower’s or any Permitted Lessee’s rights, including the right to quiet enjoyment, possession and use of the Aircraft so long as no Event of Default shall have
occurred and be continuing under the Mortgage. 

*        *        * 

  
 40 

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

			
	VIRGIN AMERICA INC., as Borrower
		
	By:	 	/s/ Peter D. Hunt
		 	Name: Peter D. Hunt
		 	Title: SVP & Chief Financial Officer

  

			
	BANK OF UTAH, as Security Trustee
		
	By:	 	/s/ Brett R. King
		 	Name: Brett R. King
		 	Title: Vice President

  

			
	 CREDIT AGRICOLE CORPORATE

AND INVESTMENT BANK, as a Senior
 Loan
Participant

		
	By:	 	/s/ Yevgeniya Levitin
		 	Name: Yevgeniya Levitin
		 	Title: Managing Director
		
	By:	 	/s/ Thomas Jean
		 	Name: Thomas Jean
		 	Title: Director

  

			
	 CREDIT AGRICOLE CORPORATE

AND INVESTMENT BANK, as Senior
 Agent

		
	By:	 	/s/ Yevgeniya Levitin
		 	Name: Yevgeniya Levitin
		 	Title: Managing Director
		
	By:	 	/s/ Thomas Jean
		 	Name: Thomas Jean
		 	Title: Director

  
 41 

 
			
	 TAF FUNDING LIMITED, as a Junior

Loan Participant

		
	By:	 	/s/ Hani Kuzbari
		 	Name: Hani Kuzbari
		 	Title: Director

  

			
	 NOVUS TAMWEEL AVIATION

FINANCE GP LIMITED, as Junior Agent

		
	By:	 	/s/ Mounir Kuzbari
		 	Name: Mounir Kuzbari
		 	Title: Director

  
 42 

 APPENDIX A 

[VIRGIN/BANK 6935] 

DEFINITIONS AND RULES OF USAGE 

(a) Unless a contrary indication appears, a reference in this Agreement to: 

(i) the “agreed form” of any Operative Document means the form of such Operative Document which on the date hereof has been agreed by
the Borrower and the Security Trustee (acting on the instructions of the Loan Participants); 
 (ii) any “applicable law” means
(a) applicable laws, statutes, decrees, decree laws, acts, codes, regulations, legislation, treaties, conventions and similar instruments and, in respect of any of the foregoing, unless the context otherwise requires, any instrument passed in
substitution therefor or for the purposes of consolidation thereof with any other instrument or instruments, in each case, unless the context otherwise requires, as amended, modified, varied or supplemented from time to time, (b) applicable
final judgments, orders, determinations or awards of any court from which there is no right of appeal or if there is a right of appeal such appeal is not prosecuted within the allowable time and (c) applicable orders, guidelines, notices,
guidance, rules and regulations of any state or government or any government entity, in each case having the force of law; 
 (iii) any
person includes its and any subsequent successors in title, permitted assigns and permitted transferees; 
 (iv) “assets” includes
present and future properties, revenues and rights of every description; 
 (v) “indebtedness” includes any obligation (whether
incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent; 
 (vi) an
“Operative Document” or any other agreement or instrument is a reference to that Operative Document or other agreement or instrument as amended, supplemented or novated in accordance with the terms thereof and of this Agreement or any
other Operative Document, together with all exhibits, schedules and other attachments thereto; 
 (vii) a “regulation” includes
any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or
organization; 
 (viii) a reference to a “Schedule” is a reference to such Schedule as it may be amended from time to time in
accordance herewith; 
 (ix) unless the context shall otherwise require, a provision of law is a reference to that provision as amended or
reenacted; and 
 (x) a time of day is, unless stated otherwise, a reference to New York time. 

  
 APPENDIX A 

 (b) Section and Schedule headings are for ease of reference only. 

(c) Unless a contrary indication appears, a term used in any other Operative Document or in any notice given under or in connection with any
Operative Document has the same meaning in that Operative Document or notice as in this Agreement. 
 DEFINED TERMS 

“Additional Insured(s)” means the Security Trustee and the Holders. 

“Affected Person” means (i) the Borrower, (ii) any subsidiary of the Borrower, (iii) any
Affiliate of the Borrower (other than any Person that is an Affiliate of the Borrower solely by reason of its ownership of shares of the Borrower), or (iv) any officer, director, trustee or agent of the Borrower or such subsidiary or such
Affiliate that will act in any capacity with respect to this Agreement. 
 “Affiliate” means, with
respect to any Person, any other Person which directly or indirectly controls, is controlled by, or under common control with, such Person. The term “control” means the possession, directly or indirectly of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

“Agent” or “Agents” means either or both, as the context may require, of the
Senior Agent and the Junior Agent. 
 “Aircraft” means the Airframe together with the two Engines
referenced in a Mortgage Supplement, including buyer furnished equipment, whether or not such Engines are installed on the Airframe or any other airframe, and, where the context permits, all logs, manuals and data and inspection, modification and
overhaul records required to be maintained with respect to the foregoing property. 
 “AML Laws” means
all laws, rules, and regulations of any jurisdiction applicable to any Loan Participant, the Borrower or any subsidiary or Affiliate of the Borrower from time to time concerning or relating to anti-money laundering. 

“Airframe” means: (i) the Airbus A320-200 aircraft (excluding Engines or engines from time-to-time
installed thereon) specified by United States Registration Number and Manufacturer’s Serial Number in the Mortgage Supplement; (ii) any and all related Parts; and (iii) any Replacement Airframe which may from time to time be
substituted for the Airframe then subject to the Mortgage pursuant to Section 5.01(b) of the Mortgage. 
 “Airframe
Warranties Agreement” means each agreement dated the Delivery Date, between, inter alios, the Manufacturer, the Borrower and the Security Trustee in respect of the airframe warranties associated with the Designated
Aircraft. 

  
 APPENDIX A 

 “Anti-Corruption Law” means all laws, rules, and
regulations of any jurisdiction applicable to the Borrower or any subsidiary or Affiliate of the Borrower from time to time concerning or relating to bribery or corruption. 

“Anti-Terrorism Law” means, with respect to any Person, any applicable law, rule or regulation related
to financing terrorism including (a) the Patriot Act, (b) the Currency and Foreign Transactions Reporting Act (31 U.S.C. §§ 5311-5330) (also known as the “Bank Secrecy Act”), (c) the Trading With the Enemy Act
(50 U.S.C. § 1 et seq.), the International Economic Emergency Powers Act (15 U.S.C. § 1701 et seq.) and (d) Executive Order 13224 (effective September 24, 2001). 

“Applicable Rate” means, for any Interest Period (A) with respect to any Senior Loan, a rate per
annum equal to (i) in the case of a Floating Rate Loan, the relevant Floating Rate for such Interest Period and (ii) in the case of a Fixed Rate Loan, the relevant Fixed Rate and (B) with respect to any Junior Loan, the Junior Loan
Interest Rate. 
 “Assigned Warranties” means the warranties referenced in the Airframe Warranties
Agreement and the Engine Consent. 
 “Assignment and Assumption Agreement” means an agreement
substantially in the form of Exhibit B to the Facility Agreement. 

“Basel II” means the agreements on capital requirements, a leverage ratio and
liquidity standards contained in, or methods of calculating capital adequacy pursuant to, “Basel II: International Convergence of Capital Measurement and Capital Standards: a Revised Framework – Comprehensive Version” published
by the Basel Committee on Banking Supervision in June 2006, as amended, supplemented or restated (other than by Basel III), or any implementation, adoption (whether voluntary or compulsory) thereof, whether by an EC Directive or the FSA
Integrated Prudential Sourcebook or any other law or regulation. 
 “Basel III” means the
agreements on capital requirements, a leverage ratio and liquidity standards contained in, or methods of calculating capital adequacy pursuant to, “Basel III: A global regulatory framework for more resilient banks and banking
systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel
Committee on Banking Supervision on 16 December 2010, each as amended, supplemented or restated, or any implementation, adoption (whether voluntary or compulsory) thereof, whether by an EC Directive or the FSA Integrated Prudential Sourcebook
or any other law or regulation. 
 “Bills of Sale” means the FAA Bill of Sale and the Warranty Bill of
Sale in favor of Borrower in respect of the Aircraft. 
 “Break Amount” means, as of any date of
determination and for the Loan Certificates, the amount, if any, equal to the sum of (i) LIBOR Break Amount and (ii) Swap Breakage Loss. 

  
 APPENDIX A 

 “Business Day” means any day other than a Saturday or
Sunday or a day on which commercial banks are required or authorized to close in New York, New York and, if such day relates to (i) the giving of notices or quotes in connection with the LIBOR, the city and state in which the Payment Office is
located, New York, New York and London, England or (ii) the borrowing of any Loan or payment or prepayment of principal of or interest on the Loan Certificates, the city and state in which the Payment Office is located, New York, New York and
London, England. 
 “CA-CIB” means Credit Agricole Corporate and Investment Bank. 

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

“Certificate Register” has the meaning specified in Section 2.06 of the Mortgage. 

“Change in Law” means the occurrence, after the date of the Facility Agreement, of any of the following:
(a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Body or
(c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform
and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of
the date enacted, adopted or issued and all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or
foreign regulatory authorities, pursuant to Basel II shall not be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 

“Civil Reserve Air Fleet Program” or “CRAF” means the Civil Reserve Air
Fleet Program administered by the United States Government or any substantially similar program. 

“Class” means, with respect to any Loan Certificate, a designation of whether such Loan Certificate is a
Senior Loan Certificate or Junior Loan Certificate. 
 “Code” means the Internal Revenue Code of 1986,
as amended from time to time, and any successor statute. 
 “Collateral” means, separately and
collectively, the collateral described in the Granting Clause of the Mortgage as constituting the Mortgage Estate. 

“Commitment” has the meaning specified in Section 2(a) of the Facility Agreement. 

“Commitment Termination Date” has the meaning specified in Section 1 of the Facility Agreement.

  
 APPENDIX A 

 “Controlling Creditor” has the meaning specified in the
Intercreditor Agreement. 
 “Default” means any event which with the giving of notice or the lapse of
time or both if not timely cured or remedied would become an Event of Default pursuant to Article VIII of the Mortgage. 

“Delivery Date” means the date of the initial Mortgage Supplement, which date shall be the date the Loan
Participants advance the Loans to or for account of the Borrower. 
 “Designated Aircraft” has the
meaning set forth in Section 1 of the Facility Agreement. 
 “Dollars”,
“Dollar” and “$” means the lawful currency of the United States of America. 

“Effective Date” means the date the Facility Agreement becomes effective as provided in
Section 4(a) of the Facility Agreement. 
 “Engine” means (i) each of the two CFM
International Inc. model CFM56-5B4 engines listed by Manufacturer’s Serial Numbers in the initial Mortgage Supplement, whether or not from time to time installed on the Airframe or any other airframe; (ii) any Replacement Engine which may
from time to time be substituted for any Engine pursuant to the terms of the Mortgage; and (iii) in each case, any and all related Parts. 

“Engine Agreement” means the General Terms Agreement CFM-04-0012B, dated June 14, 2004 between the
Borrower and Engine Manufacturer. 
 “Engine Consent and Agreement” means the Engine Consent and
Agreement [Virgin/Bank 6935] dated as of the Delivery Date of the Engine Manufacturer in respect of the Aircraft. 

“Engine Manufacturer” means CFM International Inc. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

“Event of Default” has the meaning specified in Article VIII of the Mortgage. 

“Event of Loss” means, with respect to the Aircraft or the Airframe or any Engine, any of the following
events with respect to such property: 
 (a) the loss of such property or of the use thereof due to destruction, damage beyond economic
repair or rendition of such property permanently unfit for normal use for any reason whatsoever; 
 (b) any damage to such property that
results in an insurance settlement with respect to such property on the basis of a total loss or a constructive total loss; 
 (c) the
requisition for use or hire of such property by any government (other than the government of the country of registry of the Aircraft) that shall have resulted in the loss of possession of such property by the Borrower (or any Permitted Lessee) for a
period in excess of nine consecutive months; 

  
 APPENDIX A 

 (d) requisition of title or other compulsory acquisition, capture, seizure, deprivation,
confiscation or detention for any reason of the Aircraft or the Airframe or any Engine associated with the Aircraft by any government, whether de facto or de jure, but shall exclude requisition for use or hire not involving requisition of title;

 (e) as a result of any law, rule or regulation, order or other action by the FAA or other government of the country of registry, the use
of the Aircraft or Airframe in the normal business of air transportation shall have been prohibited by virtue of a condition affecting all aircraft of the same type for a period of 12 consecutive months, unless the Borrower (or Permitted Lessee),
prior to the expiration of such 12 month period, shall be diligently carrying forward all steps that are necessary or desirable to permit the normal use of the Aircraft or Airframe or, in any event, if such use shall have been prohibited for a
period of 18 consecutive months; and 
 (f) with respect to an Engine only, any divestiture of title to or interest in such Engine or any
event with respect to such Engine that is deemed to be an Event of Loss with respect to such Engine pursuant to Section 3.03(a) or 5.02 of the Mortgage. 

An Event of Loss with respect to the Aircraft shall be deemed to have occurred if an Event of Loss occurs with respect to the Airframe related
to the Aircraft. 
 “Excluded Taxes” has the meaning specified in Schedule III to the Facility
Agreement. 
 “Expense” or “Expenses” means any and all
liabilities, obligations, losses, damages, penalties, claims, actions, suits, out of pocket costs, expenses and disbursements (including reasonable legal fees and expenses) of whatever kind and nature but excluding internal costs and expenses such
as salaries, any amounts that would be included in Break Amount, and overhead of whatsoever kind and nature. 
 “FAA Bill
of Sale” means a bill of sale on AC Form 8050-2 or such other form as may be approved by the FAA in favor of the Borrower from the Manufacturer in respect of the Aircraft. 

“FAA Counsel” means McAfee & Taft A Professional Corporation. 

“Facility Agreement” means that certain Facility Agreement [Virgin/Bank [6935]], dated as of
October 27, 2015, among the Borrower, the Loan Participants, the Agents and the Security Trustee as such Facility Agreement may be amended or supplemented from time to time pursuant to the applicable provisions thereof. 

“FATCA” has the meaning specified in Schedule III to the Facility Agreement. 

“FCPA” means the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd 1, et seq. 

“Federal Aviation Act” means subtitle VII of Title 49 of the United States Code, or any successor
provision. 

  
 APPENDIX A 

 “Federal Aviation Administration” and “FAA” mean
the United States Federal Aviation Administration and any successor agency or agencies thereto. 

“FedWire” means the funds transfer system used to transfer reserve balances for immediately available
credit among the member banks of the United States Federal Reserve System. 
 “Fee Letter” means each
of (i) in the case of CA-CIB, the letter agreement between the Borrower and CA-CIB, pursuant to which the Borrower has agreed to pay certain fees and (ii) in the case of Tamweel, the letter agreement between the Borrower and Tamweel,
pursuant to which the Borrower has agreed to pay certain fees. 
 “Finance Parties” means, together,
the Loan Participants, each Agent and the Security Trustee (each, a “Finance Party”). 

“Fixed Base Rate” has the meaning specified in Section 1 of the Facility Agreement. 

“Fixed Rate” means, if the Senior Loan Certificates are to bear interest at a fixed rate, the fixed rate
for such Loan Certificates determined in accordance with Section 3(b)(ii) of the Facility Agreement (calculated on the basis of a year of 360 days consisting of 12 30-day months). The Fixed Rate for any Senior Loan Certificate shall be the rate
specified on Schedule I to the Mortgage Supplement. 
 “Fixed Rate Loan” means a Senior Loan
evidenced by Loan Certificates which bear interest at a Fixed Rate. 
 “Fixed Rate Margin” has the
meaning specified in Section 1 of the Facility Agreement. 
 “Floating Rate” means, for any
Interest Period and Floating Rate Loan, the sum of (1) LIBOR for such Interest Period, plus (2) the Senior Applicable Margin (calculated on a basis of actual number of days elapsed in a year of 360 days). 

“Floating Rate Loan” means a Senior Loan evidenced by Loan Certificates which bear interest at a
Floating Rate. Each Senior Loan shall be a Floating Rate Loan unless the Borrower shall have made an election to have such Senior Loan bear interest at a Fixed Rate in accordance with Section 3(b)(ii) of the Facility Agreement. 

“Foreign Air Carrier” means any air carrier which is not a U.S. Air Carrier and which performs
maintenance, preventative maintenance and inspections for the Aircraft, the Airframe and/or any Engine or engine to standards which are approved by, or which are substantially equivalent to those required by, the Federal Aviation Administration, the
Civil Aviation Authority of the United Kingdom, the Direction Generale de l’Aviation Civile of the French Republic, the Luftfahrt Bundesamt of the Federal Republic of Germany, the Nederlandse Luchtvaart Authoriteit of the Kingdom of the
Netherlands, the Ministry of Transportation of Japan or the Federal Ministry of Transport of Canada (and any agency or instrumentality of the applicable government succeeding to the functions of any of the foregoing entities). 

“Funding Date” has the meaning specified in Section 2(b)(i) of the Facility Agreement. 

  
 APPENDIX A 

 “GAAP” means generally accepted accounting principles then in
effect in the United States, consistently applied. 
 “Governmental Body” means (a) any federal,
state or similar government, and any body, board, department, commission, court, tribunal, authority, agency or other instrumentality of any such government or otherwise exercising any executive, legislative, judicial, administrative or regulatory
functions of such government or (b) any other government entity having jurisdiction over any matter contemplated by the Operative Documents or relating to the observance or performance of the obligations of any of the parties to the Operative
Documents. 
 “Hedging Transaction” means, for any Holder of a Fixed Rate Loan and in respect of the
Loan Certificates for such Senior Loan, an interest rate swap transaction entered into by such Holder (on an actual or notional basis) with a Swap Counterparty in connection with such Fixed Rate Loan on customary terms consistent with market
practice (documented (or deemed documented)) by the Swap Form and a hedge confirmation in substantially the form of Exhibit E to the Facility Agreement.  

“Holder” means, at any time, any holder of any Senior Loan Certificate or any Junior Loan Certificate.

 “Illegality Event” means the occurrence of any of the following events or circumstances: 

(a) it becomes unlawful or contrary to any applicable law for any party to any of the Operative Documents to perform any of its material
obligations under the Operative Documents and/or to continue as a party to any of the Operative Documents; or 
 (b) all or any material
part of any Operative Document becomes void, illegal, invalid, unenforceable or of limited force and effect. 
 “Impaired
Loan Participant” has the meaning specified in Section 8(d) of the Facility Agreement. 

“Inchoate Liens” means inchoate Liens of the type described in Section 7.01(ii) of the Mortgage for taxes
not yet due and 7.01(iii) (other than, in the case of said clause (iii), contested Liens); for the avoidance of doubt, “Inchoate Liens” shall not include any such Lien registered with the International Registry. 

“Increased Cost Notice” has the meaning specified in Section 2.11 of the Mortgage. 

“Increased Costs” has the meaning specified in Section 2.11 of the Mortgage. 

“Indemnitee” or “Indemnitees” means the Security Trustee, the Holders and each of their
respective successors, permitted assigns, and directors, officers, and employees. 
 “Intercreditor
Agreement” means the Intercreditor Agreement [Virgin/Bank 6935], dated as of October 27, 2015, among the Borrower, the Senior Loan Participants, the Junior Loan Participants, the Agents and the Security Trustee. 

  
 APPENDIX A 

 “Interest Payment Date” means, in respect of any Loan
Certificates, each of the four quarterly anniversary dates of the Funding Date of the Aircraft (or if there is no comparable day in any applicable month, the last day of such month); provided that, (i) in the case of a Floating Rate
Loan, if any such date shall not be a Business Day, then the relevant Interest Payment Date shall be the next succeeding Business Day unless by virtue of such extension such date would fall in the next succeeding calendar month, in which case the
relevant Interest Payment Date shall be the next preceding Business Day and (ii) in the case of a Fixed Rate Loan, there shall be no adjustment to period end dates by virtue of non-Business Days for the purpose of interest accrual. The Interest
Payment Dates shall be the dates specified in the amortization schedule relating thereto attached to the Loan Certificates (subject to modification by the above proviso). 

“Interest Period” means (a) initially, the period commencing on the Funding Date and
ending on the first Interest Payment Date thereafter and (b) thereafter, each successive three-month (or other applicable) period commencing on the final day of the preceding Interest Period and ending on the next succeeding Interest Payment
Date. 
 “international interest” is defined in the Cape Town Convention. 

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

“Junior Agent” has the meaning specified in the preamble to the Facility Agreement. 

“Junior Loan Certificate” means each loan certificate issued by the Borrower to the Junior Loan
Participants pursuant to Section 2.02 of the Mortgage and any such Certificate issued in exchange or replacement therefor pursuant to Section 2.08 or Section 2.09 of the Mortgage. 

“Junior Loan Interest Rate”, in respect of the Junior Loans, has the meaning set forth in Section 1
of the Facility Agreement. 
 “Junior Loan Participants” means TAF Funding Limited, and each
successor, permitted assignee or permitted transferee thereof as a Holder of a Junior Loan Certificate. 
 “Junior
Loans” means the loans made by the Junior Loan Participants to the Borrower to finance the Aircraft pursuant to the terms of Section 2.02 of the Mortgage, and outstanding from time to time under the Mortgage. 

“Lease” means any lease agreement permitted by the terms of Section 3.03 of the Mortgage. 

“Lender Lien” means any Lien which arises from acts or claims against a Loan Participant not related to
the transactions contemplated by the Operative Documents. 
 “Lessee” means any lessee under a Lease.

 “LIBOR” means, for any Interest Period for any Loan, the rate per annum equal to: 

(a) the Screen Rate for such Interest Period for such Loan; or 

  
 APPENDIX A 

 (b) (i) if no such Screen Rate is available for Dollars or for such Interest Period, the
rate for deposits of an amount comparable to the aggregate outstanding principal amount of such Loan for such Interest Period in Dollars for that period determined to be the arithmetic mean of the rates offered at or about 11:00 a.m. (London
time) on the relevant Quotation Date by at least two Reference Banks to prime banks in the London interbank market and (ii) if the rate specified in (b)(i) is not available, then the rate for deposits of an amount comparable to the
aggregate outstanding principal amount of such Loan for such Interest Period in Dollars for that period determined to be the arithmetic mean of the rates offered at or about 11:00 a.m. New York time on the relevant Quotation Date by at least
two Reference Banks to prime banks in the New York interbank market; provided, that for any Interest Period having a duration of less than three months, LIBOR for such Interest Period shall be the interpolated LIBOR determined using the
Screen Rate and standard interpolation methodologies by reference to the next higher and next lower available maturities (as determined by the Agent for such Loan). 

“LIBOR Break Amount” means the amount, if any, required to compensate each Holder for any losses, costs
or expenses (excluding loss of profit) which it may incur as the result of the prepayment (including any by virtue of an acceleration) (or the failure to make any such prepayment on the date irrevocably scheduled therefor) of any Loan Certificate
held by it on a date other than the last day of the then current Interest Period therefor, including, without limitation, losses, costs or expenses incurred in connection with unwinding or liquidating any deposits or funding or financing arrangement
with its funding sources, as reasonably determined by such Holder. Without limiting the effect of the preceding sentence, such compensation shall include an amount equal to the excess, if any, of (i) the amount of interest which otherwise would
have accrued on the principal amount so prepaid (including any by virtue of an acceleration) from the date of such prepayment (including any by virtue of an acceleration) to the last day of such Interest Period (the “Break
Period”) at the LIBOR therefor in excess of (ii) the interest component of the amount the affected Holder would have bid in the London interbank market for Dollar deposits of leading banks in amounts comparable to such principal
amount and with maturities comparable to the Break Period (as reasonably determined by such Holder). Each Holder shall provide a certificate to the Borrower documenting its calculation of LIBOR Break Amount. 

“Lien” means any mortgage, pledge, lien, claim, encumbrance, lease, security interest or other lien of
any kind on property. “Lien” shall include any interest registered on the International Registry other than the Borrower’s ownership interest registered on the International Registry as a contract of sale with respect to the Aircraft.

 “Loan Certificate” means either or both, as the context may require, of a Senior Loan Certificate
or a Junior Loan Certificate and “Loan Certificates” means all Loan Certificates, whether a Junior Loan Certificate or Senior Loan Certificate, issued pursuant to Section 2.02 of the Mortgage and any such
certificates issued in exchange or replacement therefor pursuant to Section 2.08 or 2.09 of the Mortgage. 
 “Loan
Participant” means each Holder initially a party to the Facility Agreement, and its successors and assigns. 

  
 APPENDIX A 

 “Loans” means the Senior Loans and Junior Loans made by the
Senior Loan Participants and Junior Loan Participants, respectively, to the Borrower pursuant to Section 2.02 of the Mortgage as evidenced by the Loan Certificates. 

“Maintenance Program” means the maintenance program for the Aircraft which is approved by the FAA or (if
different), the aviation authority of the jurisdiction of registry of the Aircraft. 
 “Majority Junior
Holders” means, as of any date of the determination thereof, (i) if no amount in respect of any Junior Loan is then outstanding, a Junior Loan Participant or Junior Loan Participants whose Junior Commitments aggregate more
than 50% of the aggregate Junior Commitments of all Junior Loan Participants, or (ii) otherwise, the Holders of more than 50% in aggregate outstanding principal amount of all Junior Loan Certificates. For all purposes of the foregoing
definition, in determining as of any date the then aggregate outstanding principal amount of any Junior Loan Certificates or amount of the Junior Commitments, there shall be excluded all Junior Loan Certificates and Junior Commitments, if any, held
by the Borrower or any Affiliate thereof. 
 “Majority Senior Holders” means, as of any date of the
determination thereof, (i) if no amount in respect of any Senior Loan is then outstanding, a Senior Loan Participant or Senior Loan Participants whose Senior Commitments aggregate more than 50% of the aggregate Senior Commitments of all Senior
Loan Participants, or (ii) otherwise, the Holders of more than 50% in aggregate outstanding principal amount of all Senior Loan Certificates. For all purposes of the foregoing definition, in determining as of any date the then aggregate
outstanding principal amount of any Senior Loan Certificates or amount of the Senior Commitments, there shall be excluded all Senior Loan Certificates and Senior Commitments, if any, held by the Borrower or any Affiliate thereof. 

“Manufacturer” means Airbus S.A.S., in its capacity as manufacturer of the Aircraft, and its successors
and assigns. 
 “Market Disruption Cost of Funds” has the meaning specified in Section 3(h)(ii)
of the Facility Agreement. 
 “Market Disruption Event” has the meaning specified in
Section 3(h)(i) of the Facility Agreement. 
 “Mortgage” means the Mortgage and Security
Agreement [Virgin/Bank 6935] dated as of October 27, 2015 between the Borrower and the Security Trustee, including any Mortgage Supplement and each other supplement from time to time entered into pursuant hereto. 

“Mortgage Estate” is defined in the Granting Clause to the Mortgage. 

“Mortgage Supplement” means a supplement to the Mortgage substantially in the form of Exhibit A,
which shall particularly describe the Airframe and Engines, or any Replacement Airframe or Replacement Engine, included in the property of the Borrower covered by the Mortgage, or any other supplement hereto. 

  
 APPENDIX A 

 “Non-U.S. Person” means any Person other than (i) a
citizen or resident of the United States of America (for purposes of this definition, the “United States”), (ii) a corporation, partnership, limited liability company or other entity created or organized under the laws of the United
States or any political subdivision thereof or therein or (iii) an estate or trust that is subject to United States federal income taxation regardless of the source of its income. 

“Obligations” is defined in the Granting Clause of the Mortgage. 

“Obsolete Part Amount” has the meaning specified in Section 1 of the Facility Agreement. 

“Operative Documents” means the Facility Agreement, the Mortgage, any Mortgage Supplement, each Loan
Certificate, each Fee Letter, the Intercreditor Agreement, the Airframe Warranties Agreement, the Engine Consent and Agreement and any amendments or supplements of any of the foregoing. 

“Original Amount” means, with respect to the Loan Certificates, the stated aggregate original principal
amount of such Loan Certificates, which shall, on the Delivery Date, equal the amount of the Loans issued in respect of the Aircraft. The Original Amount for the Loan Certificates shall be as specified in Section 1 of the Facility Agreement.

 “Original Junior Loan Participant” means TAF Funding Limited. 

“Original Senior Loan Participant” means Credit Agricole Corporate and Investment Bank. 

“Other Borrower” means VX 2016-1 LLC. 

“Other Agreement” means the Facility Agreement [Virgin/NPA 2016-1], dated on or about October 27,
2015, among the Other Borrower, each financier party thereto, Massachusetts Mutual Life Insurance Company, as senior agent, Novus Tamweel Aviation Finance GP Limited, as junior agent, and Bank of Utah as Security Trustee. 

“Other Junior Lender” means, collectively, the Persons acting as junior purchasers under the Other
Agreement and their successors and permitted assigns. 
 “Other Junior Obligations” means the
“Primary Obligations” under and as defined in the Other Agreement to the extent distributable to the Other Junior Lenders under clause sixth of the “Intercreditor Agreement” under and as defined in the Other Agreement; provided
that “Other Junior Obligations” shall be deemed to be zero if the Original Junior Loan Participants are not (a) the Majority Junior Holders under the Facility Agreement and (b) “Majority Junior Holders” under and as
defined in the Other Agreement. 
 “Parts” means all appliances, parts, instruments, appurtenances,
accessories, furnishings and other equipment of whatever nature (other than (i) complete Engines or engines or (ii) PCE), which are from time to time incorporated or installed in or attached to the Airframe or any Engine and all such items
which are subsequently removed therefrom so long as the Lien of the Mortgage shall cover the same pursuant to the terms of the Mortgage. 

  
 APPENDIX A 

 “Past Due Rate” has the meaning specified in Section 1
of the Facility Agreement. 
 “Payment Office” means the Security Trustee’s office and bank and
account number referred to in Schedule I to the Facility Agreement. 
 “PCE” means passenger
convenience equipment. 
 “Permitted Lessee” means (i) any United States air carrier as to which
there is in force at the time of entering into such sublease or other transfer a certificate issued pursuant to 49 U.S.C. 44705 or any successor provisions that give like authority and that is not subject to bankruptcy proceedings; or (ii) any
manufacturer of airframes or engines or any air carrier that is listed in Schedule 1 to the Mortgage; provided that for any entity described in clause (ii), (x) such entity is based in a country with which the United States
maintains normal diplomatic relations, (y) such entity is not subject to bankruptcy proceedings and (z) such transfer of possession shall not deprive the Finance Parties of their perfected and enforceable security interest. 

“Permitted Investments” means those investments described in Section 12.01 of the Mortgage. 

“Permitted Lien” means any Lien permitted under Section 7.01 of the Mortgage. 

“Permitted Transferee” means (i) the Borrower or any of its Affiliates, (ii) any Loan
Participant or any Affiliate of a Loan Participant, (iii) any reputable bank or other reputable financial institution that is regularly engaged in or established for the purposes of making, purchasing or investing in commercial loans;
provided that, without the prior written consent of the Borrower, no airline or Affiliate of an airline shall be a Permitted Transferee. 

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

“Plan” means an “employee benefit plan” (as such term is defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended) or any “plan” (as such term is defined in Section 4975(e)(1) of the Code) which has been established or maintained or contributed to by the Borrower or an Affiliate (other
than a multiemployer plan within the meaning of Section 3(37) of ERISA) that, together with the Borrower, is treated as a single employer under Section 414(b), (c) or (m) of the Code. 

“Prepayment Fee” has the meaning specified in Section 1 of the Facility Agreement. 

“Primary Obligations” is defined in the Granting Clause of the Mortgage. 

“prospective international interest” is defined in the Cape Town Convention. 

“Purchase Agreement” means those provisions of the Airbus A320 Family Purchase Agreement between the
Borrower and the Manufacturer dated as of December 29, 2010 relating to the purchase by the Borrower of, inter alia, the Designated Aircraft, as originally executed or as modified, amended or supplemented in accordance with the terms thereof,
but only insofar as the foregoing relates to the Designated Aircraft. 

  
 APPENDIX A 

 “Quotation Date” means, in relation to any Interest Period,
two London business days before the first day of such Interest Period. 
 “Reference Banks” means,
with respect to any Loan, the principal London offices of CA-CIB and JPMorgan Chase or such other bank or banks as may from time to time be designated by the Senior Agent for such Senior Loan and as may be reasonably acceptable to the Borrower. 

“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System (or any
successor), as the same may be modified and supplemented and in effect from time to time. 
 “Replacement
Aircraft” means any aircraft substituted for the Aircraft pursuant to Section 10.01 of the Mortgage. 

“Replacement Airframe” means any airframe substituted for the Airframe pursuant to Section 10.01 of
the Mortgage. 
 “Replacement Engine” means any engine substituted for an Engine pursuant to
Section 10.01 of the Mortgage. 
 “Reserve Requirement” means, for any Loan Certificate, the
average maximum rate at which reserves (including, without limitation, any marginal, supplemental or emergency reserves) are required to be maintained during the Interest Period in respect of such Loan Certificate under Regulation D by member banks
of the Federal Reserve System in New York City with deposits exceeding one billion Dollars against “Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the effect of the foregoing, the Reserve Requirement
includes any other reserves required to be maintained by such member banks by reason of any Change in Law with respect to (i) any category of liabilities that includes deposits by reference to which the LIBOR is to be determined or
(ii) any category of extensions of credit or other assets that includes the Loan Certificates. 
 “Sanctioned
Country” means, at any time, a country or territory which is, or whose government is, the subject or target of any Sanctions broadly restricting or prohibiting dealings with such country, territory or government (currently, Cuba,
Iran, Burma, North Korea, Sudan, and Syria). 
 “Sanctioned Person” means, at any time, any Person
with whom dealings are restricted or prohibited under Sanctions, including (a) any Person listed in any Sanctions-related list of designated Persons maintained by the United States (including by the Office of Foreign Assets Control of the U.S.
Department of the Treasury, the U.S. Department of State, or the U.S. Department of Commerce), the United Nations Security Council, the European Union or any of its member states, Her Majesty’s Treasury, Switzerland or any other relevant
authority, (b) any Person located, organized or resident in, or any Governmental Entity or governmental instrumentality of, a Sanctioned Country or (c) any Person 25% or more directly or indirectly owned by, controlled by, or acting for
the benefit or on behalf of, any Person described in clauses (a) or (b) hereof. 

  
 APPENDIX A 

 “Sanctions” means economic or financial sanctions or trade
embargoes or restrictive measures enacted, imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S.
Department of State, or the U.S. Department of Commerce (b) the United Nations Security Council; (c) the European Union or any of its member states; (d) Her Majesty’s Treasury; (e) Switzerland; or (f) any other relevant
authority. 
 “Screen Rate” means, for any Interest Period with respect to any Loan, the London
Interbank Offered Rate administered by ICE Benchmark Administration Limited (or any other successor person which takes over the administration of that rate) for Dollar deposits for a three-month period (without rounding), which rate is displayed on
the relevant Bloomberg page (or such other screen as may replace such Bloomberg page) at or about 11:00 a.m. (London time) on the Quotation Date for such Interest Period. If the agreed page is replaced or service ceases to be
available, the Security Trustee may specify another page or service displaying the appropriate rate after consultation with the Loan Participants and the Borrower. 

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

“Security Trustee” means Bank of Utah in its capacity as Security Trustee hereunder, and any successor
thereto in such capacity. 
 “Security Trustee Lien” means any Lien which arises as a result of
(A) claims against the Security Trustee not related to its interest in the Aircraft, (B) acts of the Security Trustee not permitted by, or failure of the Security Trustee to take any action required by, the Operative Documents to the
extent such acts arise or such failure arises from or constitutes gross negligence or willful misconduct, (C) claims against the Security Trustee relating to Taxes or Expenses which are excluded from the indemnification provided by
Section 8 of the Facility Agreement, or (D) claims against the Security Trustee arising out of the transfer by the Security Trustee of all or any portion of its interest in the Aircraft or the Operative Documents other than a transfer of
the Aircraft pursuant to Article IX of the Mortgage while an Event of Default has occurred and is continuing and prior to the time that the Security Trustee has received all amounts due pursuant to the Mortgage. 

“Senior Agent” has the meaning specified in the preamble to the Facility Agreement. 

“Senior Applicable Margin”, in respect of the Senior Loans, has the meaning set forth in Section 1
of the Facility Agreement. 
 “Senior Loan Certificate” means each loan certificate issued by the
Borrower to the Senior Loan Participants pursuant to Section 2.02 of the Mortgage and any such Senior Loan Certificate issued in exchange or replacement therefor pursuant to Section 2.08 or Section 2.09 of the Mortgage. 

“Senior Discharge Date” means the date on which all Senior Obligations have been fully and indefeasibly
discharged in full. 

  
 APPENDIX A 

 “Senior Loan Participants” means Credit Agricole Corporate
and Investment Bank and each successor, permitted assignee or permitted transferee thereof as a Holder of a Senior Loan Certificate. 

“Senior Loans” means the loans made by the Senior Loan Participants to the Borrower to finance the
Aircraft pursuant to the terms of Section 2.02 of the Mortgage, and outstanding from time to time under the Mortgage. 

“Senior Secured Obligations” means all obligations payable in respect of the Senior Loans under the
Facility Agreement. 
 “Senior Underwriter” means CA-CIB. 

“Special Default” means a Default under any of Section 8.01, 8.02, 8.06 or 8.07 of the Mortgage.

 “Specified Jurisdiction” means any of France, Germany, Ireland, Luxembourg, The Netherlands, the
United Kingdom or the United States. 
 “Specified Transferee Jurisdiction” has the meaning specified
in Schedule III to the Facility Agreement. 
 “Stipulated Insured Amount” has the meaning
specified in Section 1 of the Facility Agreement. 
 “Swap Break Amount” means, as of any date on
which Break Amount may be payable under the Operative Documents in respect of a Fixed Rate Loan and for any Holder’s related Hedging Transaction, the amount a Swap Counterparty would require in accordance with market practice on the basis of
the “Close-out Amount” (as defined in the Swap Form) approach to have paid to such Swap Counterparty on such date by such Holder (such amount to be expressed as a positive number), or the amount such Swap Counterparty would be willing to
pay in accordance with market practice on the basis of “Close-out Amount” to such Holder on such date (such amount to be expressed as a negative number), in either case, to terminate such Hedging Transaction on such date with respect to,
and to the extent of, such Holder’s then outstanding principal amount of all of the Loan Certificates held by such Holder relating to Fixed Rate Loans that are subject to prepayment or purchase (or the entire Commitment), but excluding any
unpaid amounts under such Hedging Transaction due to or payable by such Swap Counterparty prior to such date in respect of interest payments received by such Holder); provided that where a Holder has not entered into a Hedging Transaction,
such amount shall be calculated on the basis of a deemed fixed-for-floating interest rate swap on market terms that meets the definition of Hedging Transaction for a notional amount equal to the outstanding principal amount of the Fixed Rate Loans
of such Holder (taking into account any required amortization of such Fixed Rate Loans). 
 “Swap Breakage
Gain” means, as to any Holder of a Fixed Rate Loan, the absolute value of the Swap Break Amount payable to such Holder if the Swap Break Amount is a negative number. 

  
 APPENDIX A 

 “Swap Breakage Loss” means, as to any Holder, the value of
the Swap Break Amount payable by such Holder if the Swap Break Amount is a positive number. 
 “Swap
Counterparty” means, for any Hedging Transaction, a floating rate payor counterparty sourced by the applicable Holder, or in the case of an internal Hedging Transaction, such Holder’s swap or treasury desk. For the avoidance
of doubt, the Borrower shall not be a Swap Counterparty to any Hedging Transaction. 
 “Swap Effective
Date” has the meaning specified in Section 3(b)(ii) of the Facility Agreement. 
 “Swap
Form” means a 2002 Master Agreement of the International Swaps and Derivatives Association in the form published in 2002 (or any comparable form) and supplemented by the 2006 ISDA Definitions (as amended). 

“Tamweel” means Novus Tamweel Aviation Finance GP Limited. 

“Tax” or “Taxes” is defined in Schedule III to the Facility
Agreement. 
 “Taxing Authority” is defined in Schedule III to the Facility Agreement. 

“Tax Indemnitee” shall mean the Lessor and each Indemnitee. 

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

“Treaty Loan Participant” has the meaning specified in Schedule III to the Facility Agreement. 

“U.S. Air Carrier” means any United States air carrier as to which there is in force a certificate
issued pursuant to Section 41102(a) of the Federal Aviation Act, and which is a citizen of the United States (as defined in 49 U.S.C. § 40102(a)(15)) holding an air carrier operating certificate issued by the Secretary of
Transportation pursuant to chapter 447 of title 49 (or the equivalent authority issued by the Civil Aeronautics Board under the predecessor regulatory laws, rules and regulations) for aircraft capable of carrying 10 or more individuals or 6,000
pounds or more of cargo or which may operate as an air carrier by certification or otherwise under any successor or substitute provisions therefor or in the absence thereof. 

“UCC” means the Uniform Commercial Code as in effect in the State of New York as at any date of
determination. 
 “Underwriters” means the Loan Participants originally party to the Facility
Agreement on the date of the Facility Agreement. 
 “War Risk Insurance” has the meaning assigned to
such term in Section 6.02 of the Mortgage. 
 “Warranty Agreements” means the Airframe Warranties
Agreement and the Engine Agreement. 

  
 APPENDIX A 

 “Warranty Bill of Sale” means a full warranty bill of sale
in favor of the Borrower from the Manufacturer in respect of the Aircraft. 
 “Wet Lease” means any
arrangement whereby the Borrower agrees to furnish the Airframe and associated Engines or engines installed thereon to a third party pursuant to which the Airframe and Engines or engines (i) are operated by pilots who are regular employees of
the Borrower, and (ii) such property is maintained by the Borrower. 

  
 APPENDIX A

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