Document:

exv10w2

Exhibit 10.2

EXECUTION VERSION

 

TERM LOAN CREDIT AGREEMENT

dated as of

March 30, 2011

among

TEMESCAL AIRCRAFT INC., as Borrower

INTERNATIONAL LEASE FINANCE CORPORATION, as an Obligor,

PARK TOPANGA AIRCRAFT INC., as an Obligor,

CHARMLEE AIRCRAFT INC., as an Obligor

BALLYSKY AIRCRAFT IRELAND LIMITED, as an Obligor,

the lenders identified herein, as Lenders,

CITIBANK, N.A., as Administrative Agent,

CITIBANK, N.A., as Collateral Agent,

CITIGROUP GLOBAL MARKETS INC.

and

CREDIT SUISSE SECURITIES (USA) LLC,

as Joint Lead Structuring Agents and Joint Lead Placement Agents,

and

BNP PARIBAS, as Joint Placement Agent

 

Term Loan Credit Agreement

 

 

TABLE
OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1

Definitions

	 
	 	 	 	 
	Section 1.01. Defined Terms

	 	 	1	 
	Section 1.02. Terms Defined in the Cape Town Convention

	 	 	30	 
	Section 1.03. Terms Generally

	 	 	30	 
	Section 1.04. Accounting Terms; Changes in GAAP

	 	 	31	 
	Section 1.05. Times

	 	 	31	 
	 
	 	 	 	 
	ARTICLE 2

The Credits

	 
	 	 	 	 
	Section 2.01. Commitment

	 	 	31	 
	Section 2.02. Request to Advance Loans

	 	 	32	 
	Section 2.03. Advances of Aggregate Requested Advance Amount

	 	 	32	 
	Section 2.04. Interest

	 	 	33	 
	Section 2.05. Payment at Maturity; Scheduled Payments; Evidence of Debt

	 	 	33	 
	Section 2.06. Optional and Mandatory Prepayments

	 	 	34	 
	Section 2.07. Fees

	 	 	35	 
	Section 2.08. Taxes; Increased Costs; Etc.

	 	 	35	 
	Section 2.09. Payments Generally; Pro Rata Treatment; Sharing of Set-offs

	 	 	41	 
	Section 2.10. Changes to the Designated Pool; Intermediate Lessees; Release of a
Subsidiary Holdco

	 	 	43	 
	Section 2.11. Defaulting Lenders

	 	 	50	 
	 
	 	 	 	 
	ARTICLE 3 

Representations and Warranties

	 
	 	 	 	 
	Section 3.01. Organization, etc.

	 	 	51	 
	Section 3.02. Authorization; Consents; No Conflict

	 	 	51	 
	Section 3.03. Validity and Binding Nature

	 	 	52	 
	Section 3.04. Financial Statements

	 	 	52	 
	Section 3.05. Litigation and Contingent Liabilities

	 	 	52	 
	Section 3.06. Security Interest

	 	 	52	 
	Section 3.07. Employee Benefit Plans

	 	 	53	 
	Section 3.08. Investment Company Act

	 	 	53	 
	Section 3.09. Regulation U

	 	 	53	 
	Section 3.10. Information

	 	 	53	 
	Section 3.11. Compliance with Applicable Laws, etc.

	 	 	54	 
	Section 3.12. Insurance

	 	 	54	 

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	 	 	Page
	Section 3.13. Taxes

	 	 	54	 
	Section 3.14. Obligor Information

	 	 	54	 
	Section 3.15. Solvency

	 	 	54	 
	Section 3.16. Sanctions

	 	 	55	 
	Section 3.17. Description of Aircraft and Leases, Etc.

	 	 	55	 
	Section 3.18. Ownership

	 	 	55	 
	Section 3.19. Lessee Consent

	 	 	55	 
	Section 3.20. Use of Proceeds

	 	 	55	 
	 
	 	 	 	 
	ARTICLE 4

Conditions

	 
	 	 	 	 
	Section 4.01. Effective Date

	 	 	56	 
	Section 4.02. Advance Date

	 	 	58	 
	Section 4.03. Quiet Enjoyment Letters

	 	 	61	 
	 
	 	 	 	 
	ARTICLE 5

Covenants

	 
	 	 	 	 
	Section 5.01. Legal Existence and Good Standing

	 	 	62	 
	Section 5.02. Protection of Security Interest of the Lenders

	 	 	62	 
	Section 5.03. Ownership, Operation and Leasing of Pool Aircraft; Ownership of Borrower and Each Subsidiary
Holdco

	 	 	63	 
	Section 5.04. Limitation on Disposition of Aircraft; Limitation on Disposition of
Certain Equity Collateral

	 	 	64	 
	Section 5.05. Payment of Taxes or Other Claims

	 	 	64	 
	Section 5.06. Representations Regarding Operation

	 	 	64	 
	Section 5.07.
Compliance with Laws, Etc.

	 	 	64	 
	Section 5.08. Notice of Adverse Claim or Loss

	 	 	65	 
	Section 5.09. Reporting Requirements

	 	 	65	 
	Section 5.10. Limitation on Transactions with Affiliates

	 	 	68	 
	Section 5.11. Inspections

	 	 	68	 
	Section 5.12. Use of Proceeds; Margin Regulations

	 	 	68	 
	Section 5.13. Insurance

	 	 	69	 
	Section 5.14. UNSC, EU and United States Sanctions and Export Restrictions

	 	 	69	 
	Section 5.15. Sanctions

	 	 	69	 
	Section 5.16. Loan-to-Value Ratio

	 	 	69	 
	Section 5.17. Mergers, Consolidations and Sales of Assets

	 	 	71	 
	Section 5.18. Limitation on Indebtedness

	 	 	72	 
	Section 5.19. Limitation on Business Activity

	 	 	72	 
	Section 5.20. Operational Covenants

	 	 	73	 

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	 	 	Page
	 
	 	 	 	 
	ARTICLE 6

Events of Default

	 
	 	 	 	 
	ARTICLE 7

Guaranty

	 
	 	 	 	 
	Section 7.01. Guaranty

	 	 	77	 
	Section 7.02. Contribution

	 	 	77	 
	Section 7.03. Guaranty Absolute

	 	 	77	 
	Section 7.04. Waiver and Acknowledgments

	 	 	80	 
	Section 7.05. Subrogation

	 	 	81	 
	Section 7.06. Payment Free and Clear of Taxes

	 	 	82	 
	Section 7.07. No Waiver; Remedies

	 	 	82	 
	Section 7.08. Continuing Guaranty

	 	 	82	 
	Section 7.09. Subordination of Certain Intercompany Indebtedness

	 	 	82	 
	Section 7.10. Limit of Liability

	 	 	82	 
	Section 7.11. Release

	 	 	82	 
	Section 7.12. No ILFC Collateral

	 	 	83	 
	 
	 	 	 	 
	ARTICLE 8

Agents

	 
	 	 	 	 
	Section 8.01. Appointment and Authority

	 	 	83	 
	Section 8.02. Rights as a Lender

	 	 	84	 
	Section 8.03. Exculpatory Provisions

	 	 	85	 
	Section 8.04. Reliance by each Agent

	 	 	86	 
	Section 8.05. Delegation of Duties

	 	 	86	 
	Section 8.06. Resignation and Removal of Administrative Agent

	 	 	86	 
	Section 8.07. Non-Reliance on Agents and Other Lenders

	 	 	87	 
	Section 8.08. No Other Duties, etc.

	 	 	88	 
	Section 8.09. Administrative Agent May File Proofs of Claim

	 	 	88	 
	Section 8.10. Collateral and Guaranty Matters

	 	 	89	 
	Section 8.11. French Collateral

	 	 	89	 
	 
	 	 	 	 
	ARTICLE 9

Miscellaneous

	 
	 	 	 	 
	Section 9.01. Notices Generally

	 	 	89	 
	Section 9.02. Waivers; Amendments

	 	 	91	 
	Section 9.03. Expenses; Indemnity; Damage Waiver

	 	 	93	 
	Section 9.04. Successors and Assigns

	 	 	95	 
	Section 9.05. Assignments by Lenders

	 	 	96	 
	Section 9.06. Replacement of Lenders

	 	 	99	 
	Section 9.07. Survival

	 	 	100	 
	Section 9.08. Counterparts; Integration; Effectiveness

	 	 	100	 
	Section 9.09. Severability

	 	 	100	 

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	 	 	Page
	Section 9.10. Applicable Law

	 	 	101	 
	Section 9.11. Jurisdiction; Consent to Service of Process

	 	 	101	 
	Section 9.12. WAIVER OF JURY TRIAL

	 	 	101	 
	Section 9.13. Headings

	 	 	102	 
	Section 9.14. Confidentiality

	 	 	102	 
	Section 9.15. Right of Setoff

	 	 	103	 
	Section 9.16. No Advisory or Fiduciary Responsibility

	 	 	103	 
	Section 9.17. Interest Rate Limitation

	 	 	105	 
	Section 9.18. USA Patriot Act

	 	 	105	 

Term Loan Credit Agreement

v 

 

	 	 	 	 	 
	SCHEDULES:
	 	 	 	 
	 
	 	 	 	 
	Schedule 3.14 — Obligor Information
	 	 	 	 
	Schedule 3.17(a) — PS Pool Aircraft
	 	 	 	 
	Schedule 3.17(b) — Leases
	 	 	 	 
	Schedule 9.01 — Notices
	 	 	 	 
	 
	EXHIBITS:
	 	 	 	 
	 
	 	 	 	 
	Exhibit A — Commitments and Applicable Percentages
	 	 	 	 
	Exhibit B — Form of Aircraft Mortgage and Security Agreement
	 	 	 	 
	Exhibit C — Form of Assignment and Assumption
	 	 	 	 
	Exhibit D-1A — Form of Opinion of Clifford Chance US LLP
	 	 	 	 
	Exhibit D-1B — Form of Opinion of In-House Counsel to the Obligors
	 	 	 	 
	Exhibit D-1C — Form of Opinion of A&L Goodbody
	 	 	 	 
	Exhibit E-1A — Form of Opinion of White & Case LLP, counsel to the
Relevant Advance Parties
	 	 	 	 
	Exhibit E-1B — Form of Opinion of In-House Counsel to the Relevant Advance Parties
	 	 	 	 
	Exhibit E-1C — Form of Opinion of A&L Goodbody, counsel to the Relevant Advance Parties
	 	 	 	 
	Exhibit E-2 — Forms of Opinion of Daugherty, Fowler, Peregrin, Haught & Jenson
	 	 	 	 
	Exhibit F — Form of Note
	 	 	 	 
	Exhibit G —Form of Administrative Questionnaire
	 	 	 	 
	Exhibit H — Form of Intercreditor Agreement
	 	 	 	 
	Exhibit I — Form of LTV Certificate
	 	 	 	 
	Exhibit J — Form of Advance Request
	 	 	 	 
	Exhibit K — Form of Obligor Assumption Agreement
	 	 	 	 
	Exhibit L — Form of Incremental Lender Assumption Agreement
	 	 	 	 
	Exhibit M — Incremental Aircraft
	 	 	 	 
	 
	 	 	 	 
	ANNEXES:
	 	 	 	 
	 
	 	 	 	 
	Annex 1 — Prohibited Countries
	 	 	 	 

Term Loan Credit Agreement

vi 

 

     TERM LOAN CREDIT AGREEMENT (this “Agreement”) dated as of March 30, 2011 among Temescal
Aircraft Inc., a California corporation (the “Borrower”), International Lease Finance Corporation,
a California corporation (“ILFC”), Park Topanga Aircraft Inc., a California corporation (“Parent
Holdco”), Charmlee Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Ballysky
Aircraft Ireland Limited, a private limited liability company incorporated under the laws of
Ireland (“Irish Subsidiary Holdco”), the lenders from time to time party to this Agreement
(collectively, the “Lenders”), Citibank, N.A. (“Citibank”), as Administrative Agent, Citibank as
the Collateral Agent, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC as joint
lead structuring agents and joint lead placement agents (the “Lead Agents”), and BNP Paribas as
joint placement agent (together with the Lead Agents, the “Joint Agents”).

     WHEREAS, the Borrower desires to borrow funds under this Agreement subject to the terms and
conditions set forth herein;

     WHEREAS, the Borrower is willing to secure its obligations under this Agreement and the other
Loan Documents, by granting Liens on certain of its assets to the Collateral Agent, for the benefit
of the Secured Parties, as provided in the Security Documents;

     WHEREAS, the Borrower is an indirect wholly-owned subsidiary of ILFC, and ILFC is willing to
guarantee the Obligations of each Obligor;

     WHEREAS, the Borrower is a wholly-owned subsidiary of Parent Holdco, and Parent Holdco is
willing to guarantee the Obligations of each Obligor and to secure its Guaranteed Obligations by
granting Liens on the Collateral held by Parent Holdco to the Collateral Agent, for the benefit of
the Secured Parties, as provided in the Security Documents;

     WHEREAS, each Subsidiary Holdco is a wholly-owned subsidiary of the Borrower, and each such
Subsidiary Holdco is willing to (and to cause each Owner Subsidiary and Intermediate Lessee to)
guarantee the Obligations of each Obligor and secure its Guaranteed Obligations by granting Liens
on the Collateral held by such Subsidiary Holdco (or such Owner Subsidiary or Intermediate Lessee,
as applicable) to the Collateral Agent, for the benefit of the Secured Parties, as provided in the
Security Documents;

     WHEREAS, the Lenders are willing to make loans to the Borrower if the foregoing Obligations of
the Borrower are guaranteed and secured as described above and subject to the other terms and
conditions set forth herein;

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE 1

Definitions

     Section 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings
specified below:

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     “Account Collateral” has the meaning set forth in the Security Agreement.

     “Account Control Agreement” has the meaning set forth in the Security Agreement.

     “Additional Charge Over Shares” means any charge over shares or other Equity Interests by any
Borrower Party in favor of the Collateral Agent, for the benefit of the Secured Parties, with
respect to the shares or other Equity Interests of any Borrower Party in any Obligor not organized
under the laws of the United States and formed after the Effective Date, (i) in form and substance
reasonably satisfactory to the Administrative Agent or (ii) in the case of any charge over shares
of the Equity Interests in any Obligor incorporated under the laws of Ireland, an Additional Charge
Over Shares in substantially the form of Exhibit B to the Security Agreement.

     “Administrative Agent” means the Person appointed at any time as administrative agent
hereunder. The initial Administrative Agent is Citibank.

     “Administrative Agent’s Account” means:

     Citibank, N.A., 111 Wall Street, New York, New York, 10005, ABA #021000089, Account No.
36852248, Account name: Medium Term Finance, Reference: ILFC, Attention: Suzanna Gallagher

     or such other account as the Administrative Agent notifies the Borrower and the Lenders in
writing from time to time.

     “Administrative Agent’s Office” means Citibank, N.A. 2 Penns Way, Suite 1100, New Castle,
Delaware 19720, Attn: Suzanna Gallagher, or such other address as the Administrative Agent notifies
the Borrower and the Lenders in writing from time to time.

     “Administrative Questionnaire” means an administrative questionnaire in substantially the form
of Exhibit G or any other form approved by the Administrative Agent.

     “Advance” means the making of Loans with respect to a Related Pool Aircraft on an Advance
Date.

     “Advance Date” means a Business Day, as identified in an Advance Request provided in
accordance with Section 2.02, upon which date the Aggregate Requested Advance Amount shall be
Advanced to the Borrower, subject to the terms and conditions herein, which shall be (a) the
28th day of any month (or if such day is not a Business Day, the next succeeding
Business Day) or (b) any additional Business Day selected by the Borrower on which there are
sufficient Related Pool Aircraft to permit Loans in an aggregate principal amount of at least $100
million to be requested on such date.

     “Advance Request” has the meaning set forth in Section 2.02.

     “Adverse Claim” means any Lien or any claim of ownership or other property right, other than
Permitted Liens (it being agreed for purposes of clarification that a transfer of an

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2

 

ownership
interest or other right in a Pool Aircraft and any related Lease to a Person that is not a
Borrower Party is not an Adverse Claim, subject to the Borrower Parties’ maintaining
compliance with Sections 2.10, 5.04 and 5.16).

     “Affiliate” means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with such specified Person.

     “Agent” means each of the Administrative Agent, the Collateral Agent and the Joint Agents.

     “Agent Entities” means each Agent and their Affiliates.

     “Agent Fee Letter” means the letter agreement dated as of March 30, 2011 between the Borrower
and Citibank.

     “Aggregate Commitments” means the aggregate Commitments of all the Lenders, which as of the
date hereof is $1,324,500,000. For the avoidance of doubt, as of the date hereof, no Incremental
Commitments are in effect.

     “Aggregate Requested Advance Amount” means, in respect of an Advance Date that aggregate
portion of the Loans to be advanced in accordance with Section 2.03(b) on such Advance Date in
respect of each Related Pool Aircraft identified in an Advance Request; provided that in no
event shall the Aggregate Requested Advance Amount for any Advance Date exceed the Maximum Advance
Amount for such Advance Date.

     “Agreement” has the meaning set forth in the introductory paragraph of this Agreement.

     “Aircraft” means the PS Pool Aircraft and the Non-Pool Aircraft.

     “Aircraft Objects” has the meaning set forth in the Security Agreement.

     “Anniversary Date” has the meaning set forth in Section 5.16(e).

     “Annual Anniversary” has the meaning set forth in Section 5.16(e).

     “Applicable Incremental Percentage” means, with respect to an Incremental Lender that has not
yet advanced its entire Catch-Up Amount, a percentage equal to (x) such Incremental Lender’s
Incremental Commitment divided by (y) the aggregate Incremental Commitments of each Incremental
Lender that has not yet advanced its entire Catch-Up Amount.

     “Applicable Catch-Up Percentage” means, with respect to an Incremental Lender, a percentage
equal to (x) such Incremental Lender’s Incremental Commitment divided by (y) the aggregate
Commitments of each Lender other than the Incremental Commitment of an Incremental Lender that has
not yet advanced its entire Catch-Up Amount.

     “Applicable Foreign Aviation Law” means, with respect to any Aircraft, any applicable law,
rule or regulation (other than the FAA Act) of any Government
Authority of any jurisdiction

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not
included in the United States or in any state, territory or possession of the United States
governing the registration, ownership, operation, or leasing of all or any part of such
Aircraft, or the creation, recordation, maintenance, perfection or priority of Liens on all or any
part of such Aircraft.

     “Applicable Margin” means 2.75% per annum; provided that for any period in which the
Base Rate applies to the Loans, the Applicable Margin shall be 1.75% per annum.

     “Applicable Percentage” means with respect to any Lender at any time, the percentage (carried
out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans has been terminated
pursuant to Article 6 or if the Aggregate Commitments have expired, then the Applicable Percentage
of each Lender shall be determined based on the Applicable Percentage of such Lender most recently
in effect, giving effect to any subsequent assignments. If at the time of determination any
Incremental Lender has not advanced its Catch-Up Amount in full, the Applicable Percentage of each
Lender for purposes of Sections 2.09(a) and 9.03(e) shall be the percentage (carried out to the
ninth decimal place) that such Lender’s aggregate Advances up to such time represents of the
aggregate Advances made by all the Lenders up to such time. The initial Applicable Percentage of
each Lender is set forth opposite the name of such Lender on Exhibit A or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     “Appraisal” means with respect to any PS Pool Aircraft, a “desk top” appraisal of such PS Pool
Aircraft by a Qualified Appraiser, which appraisal opines as to the Base Value of such PS Pool
Aircraft, assuming that if the age of such PS Pool Aircraft is (i) three years or less since its
date of manufacture, it has 100% remaining maintenance condition life and (ii) greater than three
years since its date of manufacture, it is in “half-time” remaining maintenance condition life.

     “Appraisal Date” means the Initial Test Date, each Annual Anniversary and, if applicable, each
Six-Month Anniversary.

     “Appraisal Event” means the third Business Day after the Treasurer or Chief Financial Officer
(or any titles replacing such titles) of ILFC has knowledge of the occurrence of an event described
in clause (a), (b), (c) or (d) in the second proviso of the definition of Appraised Value.

     “Appraised Value” means, with respect to any PS Pool Aircraft as of any LTV Determination
Date, the base value of such PS Pool Aircraft as of such date, calculated by taking the average of
(A) the most recent Appraisals conducted with respect to such PS Pool Aircraft pursuant to the Loan
Documents, or (B) if as of such date no Appraisals have been required to be delivered pursuant to
the Loan Documents with respect to such PS Pool Aircraft, of the Initial Appraisals
conducted with
respect to such PS Pool Aircraft; provided that (A) with respect to Aircraft being removed
from the Designated Pool pursuant to Section 2.10, the Appraised Value of such removed Aircraft
shall be, at the Borrower’s election, either (1) the average of such most recent Appraisals with
respect to such PS Pool Aircraft previously provided pursuant to the Loan Documents (or, if as of
such date no Appraisals have yet been required to have been delivered pursuant to the Loan
Documents with respect to such PS Pool Aircraft, the Initial Appraisals

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4

 

conducted with respect to
such PS Pool Aircraft), or (2) the average of three more recent
Appraisals and (B) with respect to any Non-Pool Aircraft being added to the Designated Pool
pursuant to Section 2.10(b), the Appraised Value of such Aircraft shall be the average of three
Appraisals each as of a date within 20 days of the date such Aircraft is added to the Designated
Pool; provided further that, notwithstanding any Appraisal to the contrary:

     (a) if, as of any date of determination, (i) any PS Pool Aircraft (A) is leased to a
lessee that is organized under the laws of or domiciled in a Prohibited Country (and, if the
country in which a lessee is organized under the laws of or domiciled in becomes a
Prohibited Country as a result of the jurisdiction in which such lessee is organized under
or domiciled becoming a Prohibited Country after the date the applicable Aircraft and Lease
with such lessee were included in the Designated Pool, the leasing of such PS Pool Aircraft
to such lessee continues for the later of (x) more than 120 days and (y) the period the
applicable Borrower Party is mandatorily prevented by operation of law from repossessing
such PS Pool Aircraft, but in no event longer than 180 days) or (B) is leased by a Borrower
Party that is subject to a Specified Representation Deficiency pursuant to Section 2.10(j)
that is continuing as of such date; (ii) the Express Perfection Requirements are not
satisfied with respect to the Collateral related to any Pool Aircraft; (iii) any Pool
Aircraft shall cease to be Owned by an Owner Subsidiary, free and clear of all Liens (other
than Permitted Liens), subject to the Local Requirements Exception; or (iv) any PS Pool
Aircraft shall be of a type other than a Permitted Aircraft Type; in each case such PS Pool
Aircraft shall be deemed to have an Appraised Value of $0.00 as of such date;

     (b) any PS Pool Aircraft which, as of any date of determination, is (i) not subject to
an Eligible Lease or a letter of intent to enter into an Eligible Lease for a period of more
than 90 consecutive days or (ii) subject to a Lease with respect to which a Lessee Default
has occurred and is continuing, shall be deemed to have an Appraised Value equal to 50% of
the Appraised Value such PS Pool Aircraft would have if an Eligible Lease or a letter of
intent to enter into an Eligible Lease had been in place or absent such Lessee Default, as
the case may be;

     (c) any PS Pool Aircraft which, as of any date of determination, otherwise causes the
Designated Pool to fail to meet the Pool Specifications, shall be deemed to have an
Appraised Value not greater than the greatest value that would permit such Aircraft to not
cause the Designated Pool to fail to satisfy the Pool Specifications; and

     (d) any PS Pool Aircraft which, as of any date of determination, is subject to a
definitive purchase or sale agreement providing for the consummation of a sale of such PS
Pool Aircraft within six months of such date, shall be valued as of such date at the
purchase price to be paid to the applicable Obligor pursuant to such contract;

provided that, notwithstanding anything to the contrary in the Loan Documents, none
of the foregoing events (including any failure to comply with a covenant to the effect of
any of the foregoing events) shall constitute a Default or Event of Default, except to the
extent such failure shall constitute a Default or Event of Default pursuant to Section

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5

 

     5.16(d) or 5.16(f) or would otherwise constitute a Default or Event of Default under Section
5.07, 5.13, 5.14 or 5.15.

     “Assigned Leases” has the meaning set forth in the Security Agreement.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one another.

     “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an
Eligible Assignee (with the consent of any party whose consent is required by Section 9.05), in
substantially the form of Exhibit C or any other form approved by the Administrative Agent.

     “Availability Termination” means the occurrence of the earlier of (a) the completion of the
Advances on the Final Advance Date and (b) close of business New York time on the last Business Day
prior to the first anniversary of the date hereof.

     “Average Age” means, at any time, the average age of all of the PS Pool Aircraft at such time,
weighted with respect to each PS Pool Aircraft by the average of the Base Values set forth with
respect to such PS Pool Aircraft (a) in the most recent Appraisals delivered with respect to such
PS Pool Aircraft pursuant to the Loan Documents, or (b) if as of such time no Appraisals have been
required to be so delivered with respect to such PS Pool Aircraft pursuant to the Loan Documents,
in the Initial Appraisals..

     “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the
Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly
announced from time to time by Citibank as its “prime rate” and (c) the LIBO Rate for loans with an
interest period of three months in effect on such date plus 1%. The “prime rate” is a rate set by
Citibank based upon various factors including Citibank’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such rate announced by Citibank
shall take effect at the opening of business on the day specified in the public announcement of
such change.

     “Base Value” means, with respect to a PS Pool Aircraft, the value, expressed in dollars, of
such Aircraft, determined on the basis of an open, unrestricted, stable market environment with a
reasonable balance of supply and demand and with full consideration of such Aircraft’s “highest and
best use”, presuming an arm’s length, cash transaction between willing, able and knowledgeable
parties, acting prudently, with an absence of duress and with a reasonable period of time available
for remarketing, adjusted to account for the assumed maintenance status of such Aircraft as set
forth in the definition of Appraisal in this Section 1.01.

     “Borrower” has the meaning set forth in the introductory paragraph of this Agreement.

     “Borrower Parties” means the Borrower, Parent Holdco, each Subsidiary Holdco, each Owner
Subsidiary and each Intermediate Lessee.

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6

 

     “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial
banks in New York City, Los Angeles, London, Tokyo and Frankfurt are authorized or required by law
to remain closed.

     “CA Subsidiary Holdco” has the meaning set forth in the introductory paragraph of this
Agreement.

     “Cape Town Convention” means, collectively, the Convention and the Protocol, together with all
regulations and procedures issued in connection therewith, and all other rules, amendments,
supplements, modifications, and revisions thereto (in each case, as in effect in any applicable
jurisdiction from time to time and using the English language version thereof).

     “Cape Town Lease” means any Lease (including any Lease between an Owner Subsidiary and an
Intermediate Lessee) that constitutes an International Interest that has been entered into,
extended, assigned (with the effect of a novation under the Cape Town Convention) or novated after
March 1, 2006 (or such later date as the Cape Town Convention may be given effect under the law of
any applicable jurisdiction) (A) with a Cape Town Lessee or (B) where the related Aircraft Object
is registered in a Contracting State.

     “Cape Town Lessee” means a lessee under a Lease that is situated in a Contracting State.

     “Catch-Up Advance” has the meaning set forth in Section 2.03(b).

     “Catch-Up Amount” means, with respect to an Incremental Lender, an amount equal to such
Incremental Lender’s Applicable Catch-Up Percentage of the aggregate amount advanced by the Lenders
(other than an Incremental Lender that has not advanced its entire Catch-Up Amount) prior to the
Incremental Effective Date as of which such Incremental Lender became a Lender (if any).

     “Certificated Security” has the meaning set forth in the Security Agreement.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption of any law, rule, regulation or treaty, (b) any change in any law,
rule, regulation or treaty or in the administration, interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law) by any Governmental Authority. Notwithstanding anything
herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and all
requests, rules, guidelines and directives promulgated thereunder, are deemed to have been
introduced or adopted after the date hereof, regardless of the date enacted or adopted.

     “Charge Over Shares of Irish Subsidiary Holdco” means the Charge Over Shares by the Borrower
in favor of the Collateral Agent, for the benefit of the Secured Parties, with respect to the
shares of the Irish Subsidiary Holdco, substantially in the form of Exhibit B to the Security
Agreement.

     “Charges” has the meaning set forth in Section 9.17.

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     “Charges Over Shares” means the Charge Over Shares of Irish Subsidiary Holdco and each
Additional Charge Over Shares.

     “Citibank” has the meaning set forth in the introductory paragraph of this Agreement.

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

     “Collateral” has the meaning set forth in the Security Agreement.

     “Collateral Account” means the securities account No. 798628, held at Citibank, in the name of
the Borrower and invested in Permitted Investments in accordance with Section 6 of the Account
Control Agreement.

     “Collateral Agent” has the meaning set forth in the Security Agreement.

     “Collateral Supplement” has the meaning set forth in the Security Agreement.

     “Commitment” means, as to each Lender, its obligation to make the Loans to the Borrower
pursuant to Section 2.01, in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender’s name on Exhibit A or in the Assignment and
Assumption or Incremental Lender Assumption Agreement pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in accordance with this
Agreement.

     “Control” means possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to exercise voting
power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.

     “Convention” means the Convention on International Interests in Mobile Equipment signed in
Cape Town, South Africa on November 16, 2001, together with all regulations and procedures issued
in connection therewith, and all other rules, amendments, supplements, modifications, and revisions
thereto (in each case, as in effect in any applicable jurisdiction from time to time and using the
English language version thereof).

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Deemed Removal” means the occurrence of an Appraisal Event that results from a deliberate
action or inaction of an Obligor (but not including an inadvertent administrative error in making
or failing to make a title transfer or security filing or registration or any matter outside the
control of such Obligor) to cause an event described in clause (a)(i)(A) (with respect to a Lessee
that is organized under the laws of or domiciled in a Prohibited Country at the time the Lease is
entered into with such Lessee), clause (a)(ii) or clause (a)(iii) in the second proviso of the
definition of Appraised Value.

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     “Default” means any event or condition which constitutes an Event of Default or which upon
notice, lapse of time or both would, unless cured or waived, become an Event of Default.

     “Defaulting Lender” means, subject to Section 2.11(b), any Lender that, as determined by the
Administrative Agent or the Borrower, has, or has a direct or indirect parent company that has, (a)
failed to fund any portion of its Loans at the time required to be funded by it hereunder (unless
such failure to fund is caused by (X) an administrative or technical error; or (Y) a Disruption
Event and such Lender funds such portion of its Loans within (1) in the case of clause (X), two
Business Days of the date required to be funded or (2) in the case of (Y), three Business Days of
the date required to be funded), (b) notified the Borrower, the Administrative Agent or any Lender
that it does not intend to comply with any of its funding obligations hereunder or has made a
public statement to the effect that it does not intend to comply with its funding obligations
hereunder or under other agreements in which it commits to extend credit or (c)(i) become the
subject of a proceeding under any Debtor Relief Law, (ii) had a receiver, conservator, trustee,
administrator, assignee for the benefit of creditors or similar Person charged with reorganization
or liquidation of its business or a custodian appointed for it or (iii) taken any action in
furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or
appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue of
the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent
company thereof by a Governmental Authority.

     “Designated Pool” means the pool of Aircraft consisting of the PS Pool Aircraft

     “Disruption Event” means either or both of:

     (a) a material disruption to those payment or communications systems or to those financial
markets which are, in each case, required to operate in order for payments to be made in connection
with the Loans (or otherwise in order for the transactions contemplated by the Loan Documents to be
carried out) which disruption is not caused by, and is beyond the control of, the Lender Party
making such payments; or

     (b) the occurrence of any other event which results in a disruption (of a technical or
systems-related nature) to the treasury or payments operations of a Lender preventing that Lender
(i) from performing its payment obligations under the Loan Documents or (ii) from communicating
with other Lender Parties in accordance with the terms of the Loan Documents,

and which (in either such case) is not caused by, and is beyond the control of, the Lender whose
operations are disrupted.

“dollars”, “Dollars” or “$” refers to lawful money of the United States.

     “Effective Date” means the date on which each of the conditions specified in Section 4.01 is
satisfied (or waived in accordance with Section 9.02).

     “Eligible Assignee” means (i) any Lender, (ii) any Affiliate of any Lender, (iii) a savings
and loan association or savings bank organized under the laws of the United States or any state
thereof or (iv) a commercial bank or other financial institution in the business of making

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commercial loans, in each case with respect to this clause (iv) either (a) organized under the laws
of the United States or any state thereof, (b) acting through a branch or agency located in the
United States or (c) organized under the laws of a country that is China or Singapore or a
member of the Organization for Economic Cooperation and Development or a political subdivision
of such country.

     “Eligible Lease” means a lease containing terms and conditions and otherwise in a form
consistent with Leasing Company Practice with respect to similar aircraft under lease, taking into
consideration, among other things, the identity of the relevant lessee (including operating
experience), the age and condition of the applicable Pool Aircraft and the jurisdiction in which
such Pool Aircraft will be operated or registered.

     “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment, the preservation or reclamation of
natural resources, the management, release or threatened release of any Hazardous Material or
health and safety matters.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of remediation, fines, penalties or indemnities), of any Borrower
Party directly or indirectly resulting from or based on (a) violation of any Environmental Law, (b)
the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous
Material, (c) exposure to any Hazardous Material, (d) the release or threatened release of any
Hazardous Material into the environment or (e) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

     “Equity Collateral” has the meaning set forth in the Security Agreement.

     “Equity Interests” means shares of capital stock, issued share capital, partnership interests,
membership interests in a limited liability company, beneficial interests in a trust or other
equity ownership interests in a Person.

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

     “ERISA Affiliate” means any corporation, trade or business that is, along with the Borrower or
any of its Subsidiaries, a member of a controlled group of corporations or a controlled group of
trades or businesses, as described in sections 414(b) and 414(c), respectively, of the Code or
Section 4001 of ERISA; provided, however, as used herein at any time, “ERISA Affiliate” excludes
the Parent and any of its subsidiaries that are not Subsidiaries of the Borrower at such time.

     “ERISA Event” shall mean (a) any Reportable Event, (b) the failure to satisfy the minimum
funding standard with respect to a Plan within the meaning of Section 412 of the Code or Section
302 of ERISA), whether or not waived, (c) the filing pursuant to Section 412(c) of the Code or
Section 302 of ERISA of an application for a waiver of the minimum funding standard

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with respect to
any Plan, (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan or the withdrawal or partial
withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or
Multiemployer Plan, (e) the receipt by the Borrower or any of its ERISA Affiliates from the
PBGC or a plan administrator of any notice relating to the intention to terminate any Plan or Plans
or to appoint a trustee to administer any Plan, (f) a determination that any Plan is in “at risk”
status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code; (g) the filing
pursuant to Sections 431 or 430 or Sections 304 of ERISA of an application for the extension of any
amortization period; (h) the failure to timely make a contribution required to be made with respect
to any Plan or Multiemployer Plan that would result in the imposition of an encumbrance under
Sections 412 or 430 of the Code or Sections 302 or 303 of ERISA; (i) the receipt by the Borrower or
any of its ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from the
Borrower or any of its ERISA Affiliates of any notice or a determination that a Multiemployer Plan
is, or is expected to be, in “endangered” or “critical” status within the meaning of Section 305 of
ERISA; (j) the occurrence of a non-exempt “prohibited transaction” with respect to which the
Borrower or any of its Subsidiaries is a “disqualified person” (within the meaning of Section 4975
of the Code) or “party in interest” (within the meaning of Section 3(14) of ERISA) or with respect
to which the Borrower or any such Subsidiary could otherwise be liable; (k) any Foreign Benefit
Event; or (l) the incurrence by the Borrower or any of its ERISA Affiliates of any liability
pursuant to Section 4063 or 4064 of ERISA.

     “EU” has the meaning set forth in Section 3.16.

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

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which such requisition commenced (or, if earlier, the date upon which insurers make payment on the
basis of such requisition); or (E) in the case of clause (iv) above, the final day of the period of
180 consecutive days referred to therein.

     “Events of Default” has the meaning set forth in Article 6.

     “Excluded Taxes” means, with respect to any Lender Party or any other recipient of any payment
to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or
measured by its overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction under the Laws of which such recipient is organized
(or a country that includes such jurisdiction) or in which its principal office is located or, in
the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits
taxes imposed by the United States or any similar tax imposed by any other jurisdiction described
in clause (a) above, (c) any backup withholding tax that is required by the Code to be withheld
from amounts payable to a Lender, (d) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under Section 9.06), any United States federal withholding
tax that is required to be imposed on amounts payable to such Foreign Lender pursuant to the Laws
in force at the time such Foreign Lender becomes a party hereto (or designates a new Lending
Office) (other than as a result of a Change in Law after the time such Lender becomes a party
hereto or changes its Lending Office), except to the extent that such Lender (or its assignor, if
any) was entitled, at the time of such Lender’s designation of a new Lending Office (or assignment
to such Lender), to receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 2.08(a) and (e) any withholding tax that is attributable to a Lender’s
failure to comply with Section 2.08(e).

     “Express Perfection Requirements” means (a) with respect to each Pool Aircraft and the related
Assigned Leases, the Required Cape Town Registrations pursuant to Section 2.09(d) of the Security
Agreement, UCC Financing Statement filings, the execution and delivery to each Lessee of a Lessee
Notice, the satisfaction of the requirements under Section 2.05 of the Security Agreement as to any
Chattel Paper Original (if any) and the existence of a consent of the relevant Lessee to the extent
required by the Cape Town Convention for an assignment of an International Interest in respect of a
Lease to be enforceable against such Lessee; (b) with respect to each Pool Aircraft whose country
of registration is the United States and the related Assigned Leases, the applicable FAA filings
pursuant to Section 2.09(e) of the Security Agreement; (c) with respect to the Collateral set forth
in Sections 2.01(a), (b), (except Collateral related to arrangements described in the definitions
of “Local Requirements Exception” or “Own”) (f) or (g) and (to the extent attributable to such
clause (a), (b), (subject to such exception) (f) or (g)) (i) and (j) of the Security Agreement, any
UCC financing statement filing required pursuant to the UCC to establish and maintain a valid and
perfected first priority Lien on such Collateral subject to Permitted Liens and causing each
Security Document executed by a Borrower Party incorporated under the laws of Ireland, or its
relevant particulars, to be filed in the Irish Companies Registration Office and, where applicable,
the Irish Revenue Commissioners within 21 days of execution thereof; and (d) with respect to all
Collateral (other than the Pool Aircraft and related Assigned Leases and other Collateral described
in Sections 2.01(a), (b), (except Collateral related to arrangements described in the definitions
of “Local Requirements Exception” or “Own”) (f) or (g) and (to the extent attributable to such
clause (a), (b) or (subject to such exception) (f) or (g)) (i) and (j)) of the Security Agreement),
the Borrower has delivered

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a certificate of an officer of the Borrower to the Collateral Agent and
the Administrative Agent, in which the Borrower certifies and represents that all actions have been
or will in due course be taken (including, without limitation, the execution, delivery,
registration and/or filing of any Security Documents and related documents and all other
appropriate filings and/or recordings)
that are necessary for the security interests under the Security Agreement in favor of the
Collateral Agent (for the benefit of the Secured Parties) in the applicable Collateral as security
for the Secured Obligations, to be recognized under all applicable Laws in the jurisdiction of
organization of the applicable Borrower Parties, subject in priority to no other Liens (other than
Permitted Liens), and enforceable in any relevant jurisdiction of organization of the applicable
Borrower Parties against the applicable Borrower Parties and creditors of and purchasers from such
Borrower Parties (including, without limitation, causing or undertaking to cause each Security
Document and Charge Over Shares executed by or in respect of the equity interests in a Borrower
Party incorporated under the laws of Ireland, or its relevant particulars, to be filed in the Irish
Companies Registration Office and, where applicable, the Irish Revenue Commissioners within 21 days
of execution thereof), and all such actions have been or will in due course be taken, and the Liens
with respect to such Collateral described in this clause (d) shall continue to be valid and
perfected first priority Liens subject to Permitted Liens (except as a result of a sale or other
disposition of the applicable Collateral in a transaction permitted under Section 2.10 or 5.04);
provided that the Obligors may elect not to comply with the requirements of this definition
with respect to Collateral related to any Pool Aircraft to the extent that, after giving effect to
any reduction in Appraised Value under clause (a)(ii) in the second proviso of the definition of
Appraised Value, the Appraised Value of the Pool Aircraft does not result in a violation of Section
5.16(a); provided further that, for the purposes of clarification, no local law
filings in respect of the Pool Aircraft, Assigned Leases or other Collateral described in clauses
(a), (b) or (c) of this definition shall be required to be filed other than as described in clauses
(a), (b) or (c) of this definition.

     “FAA” means the Federal Aviation Administration of the United States of America and any
successor thereto.

     “FAA Act” means 49 U.S.C. Subtitle VII, §§ 40101 et seq; as amended from time
to time, any regulations promulgated thereunder and any successor provisions.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of
the rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers on such day, as published by the FRBNY on the Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded
upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Citibank on such day on such
transactions as determined by the Administrative Agent.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the
United States.

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     “Fee Letter” means the Agent Fee Letter and the Lender Fee Letter and each other letter
agreement between, inter alia, the Borrower and any Lender Party relating to the transactions
contemplated in this Loan Agreement.

     “Final Advance Date” means the Advance Date on which, immediately after giving effect thereto,
there would be insufficient Commitments available for the Borrower to make any future Advance in
accordance with the terms hereof.

     “Financial Officer” means, with respect to each Obligor, the chief financial officer,
principal accounting officer, treasurer or controller of such Obligor.

     “Fiscal Year” means a fiscal year of the Borrower.

     “Foreign Benefit Event” shall mean, with respect to any Foreign Pension Plan, (a) the
existence of unfunded liabilities in excess of the amount permitted under any applicable law or in
excess of the amount that would be permitted absent a waiver from a Governmental Authority, (b) the
failure to make the required contributions or payments, under any applicable law, on or before the
due date for such contributions or payments, (c) the receipt of a notice from a Governmental
Authority relating to the intention to terminate any such Foreign Pension Plan or to appoint a
trustee or similar official to administer any such Foreign Pension Plan, or alleging the insolvency
of any such Foreign Pension Plan, (d) the incurrence of any liability by the Borrower or any of its
Subsidiaries under applicable law on account of the complete or partial termination of such Foreign
Pension Plan or the complete or partial withdrawal of any participating employer therein or (e) the
occurrence of any transaction that is prohibited under any applicable law and that could reasonably
be expected to result in the incurrence of any liability by the Borrower or any of its
Subsidiaries, or the imposition on the Borrower or any of its Subsidiaries of any fine, excise tax
or penalty resulting from any noncompliance with any applicable law.

     “Foreign Lender” means any Lender that is not a “United States person” with the meaning of
Section 7701(a)(30) of the Code.

     “Foreign Pension Plan” shall mean any benefit plan that under applicable law is required to be
funded through a trust or other funding vehicle other than a trust or funding vehicle maintained
exclusively by a Governmental Authority.

     “FRBNY” means the Federal Reserve Bank of New York, or any successor thereto.

     “GAAP” means generally accepted accounting principles as in effect from time to time in the
United States, applied on a basis consistent (except for changes concurred in by ILFC’s independent
public accountants) with the most recent audited consolidated financial statements of ILFC and its
consolidated Subsidiaries delivered to the Lenders (provided, however, that changes
in generally accepted accounting principles after December 31, 2010 with respect to leases shall
not be given effect with respect to references herein to capital leases or similar terms or to
calculations or determinations hereunder).

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     “Governmental Authority” means the government of the United States, any other nation or any
state, locality or political subdivision of the United States or any other nation, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     “Government Security” has the meaning set forth in the Security Agreement.

     “Grantor Supplement” has the meaning set forth in the Security Agreement.

     “Guaranteed Obligations” means in respect of the guarantee by each Obligor set forth in
Article 7 of this Agreement, all Obligations of each Obligor, whether direct or indirect, absolute
or contingent, due or to become due, now existing or hereafter arising.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “ILFC Materials” has the meaning set forth in Section 5.09(c).

     “Incremental Aircraft” means the Aircraft described on Exhibit M.

     “Incremental Commitments” means the Commitments of an Incremental Lender.

     “Incremental Effective Date” has the meaning set forth in Section 2.01(c).

     “Incremental Lender” means an Eligible Institution (as defined in the Security Agreement)
acceptable to the Borrower and the Administrative Agent that becomes a Lender hereto by executing
and delivering an Incremental Lender Assumption Agreement.

     “Incremental Lender Assumption Agreement” means an Incremental Lender Assumption Agreement in
substantially the form set forth in Exhibit L.

     “Incremental Loan Amount” means $200,000,000.

     “Indebtedness” means, with respect to any Person at any date of determination (without
duplication), (a) all indebtedness of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of
such Person in respect of letters of credit or other similar instruments (including reimbursement
obligations with respect thereto), (d) all the obligations of such Person to pay the deferred and
unpaid purchase price of property or services, which purchase price is due more than six months
after the date of purchasing such property or service or taking delivery and title thereto or the
completion of such services, and payment deferrals arranged primarily as a method of raising
finance or financing the acquisition of such property or service, (e) all obligations of such
Person under a lease of (or other agreement conveying the right to use) any property (whether real,
personal or mixed) that is required to be classified and accounted for as a capital lease
obligation

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under GAAP, (f) all indebtedness of other Persons secured by a lien on any asset of such
Person, whether or not such indebtedness is assumed by such Person, and (g) all indebtedness of
other Persons guaranteed by such Person.

     “Indemnified Taxes” means all Taxes (except Excluded Taxes) that are suffered or incurred by
or imposed on any Lender Party, any Obligor, any Lessee, any Collateral, any Loan
Document or any payment pursuant to any Loan Document in each case relating to or, arising
directly or indirectly, as a result of the transactions described in or contemplated by the Loan
Documents.

     “Indemnitee” has the meaning set forth in Section 9.03(b).

     “Initial Appraised Value” means, with respect to any Pool Aircraft as of any Advance Date, the
initial value of such Pool Aircraft, calculated by taking the average of the three initial
Appraisals conducted with respect to such Pool Aircraft prior to the Effective Date (or, in the
case of any Pool Aircraft not included in the original Designated Pool, the three initial
Appraisals conducted with respect to such Pool Aircraft pursuant to Section 2.10).

     “Initial LTV Ratio” means, as of any Advance Date, in respect of a Related Pool Aircraft, the
ratio of (i) the aggregate principal amount of all Loans in respect of such Related Pool Aircraft
to be Advanced on such Advance Date, divided by (ii) the aggregate Initial Appraised Value of such
Related Pool Aircraft.

     “Initial Test Date” has the meaning set forth in Section 5.16(f).

     “Instrument” has the meaning set forth in the Security Agreement.

     “Intercreditor Agreement” means the Intercreditor Agreement among ILFC, Parent Holdco, the
Borrower, Irish Subsidiary Holdco, CA Subsidiary Holdco and the Collateral Agent, in substantially
the form of Exhibit H hereto (in each case as amended, restated, amended and restated, supplemented
or otherwise modified from time to time).

     “Interest Period” means (i) with respect to the initial Interest Period for any Loan, the
period commencing on the Advance Date for such Loan and ending on the next Payment Date; (ii) with
respect to each subsequent Interest Period for any Loan other than the last Interest Period prior
to the Maturity Date, the period commencing on the last day of the preceding Interest Period for
such Loan and ending on the next Payment Date; and (iii) with respect to the last Interest Period
prior to the Maturity Date, the period commencing on the last day of the preceding Interest Period
and ending on the Maturity Date.

     “Interim Cash” has the meaning set forth in Section 5.16(c).

     “Interim Cure” has the meaning set forth in Section 5.16(c).

     “Intermediate Lease” means, in respect of any Pool Aircraft, the lease to be entered into
between the relevant Owner Subsidiary or an Intermediate Lessee (as lessor) and an Intermediate
Lessee (as lessee).

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     “Intermediate Lessee” means a special purpose Person or vehicle (including trusts) (other than
an Owner Subsidiary) which (a) is organized under the laws of any jurisdiction determined to be
acceptable in accordance with Leasing Company Practice, (b) subject to the Local Requirements
Exception, is wholly owned by a Subsidiary Holdco, an Owner Subsidiary or another Intermediate
Lessee, (c) may determine in accordance with the provisions of
Section 2.10 to enter into a Lease as lessor with the applicable Lessee and (d) does not hold legal or
beneficial title to any Aircraft.

     “International Registry” has the meaning given to it in the Cape Town Convention.

     “Ireland” means the Republic of Ireland.

     “Irish Subsidiary Holdco” has the meaning set forth in the introductory paragraph of this
Agreement.

     “Joint Agents” has the meaning set forth in the introductory paragraph of this Agreement.

     “Laws” means, collectively, all international, foreign, federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “Lead Agents” has the meaning set forth in the introductory paragraph of this Agreement.

     “Lease” means a lease agreement relating to any Pool Aircraft, which is listed on Schedule
3.17(b) hereto, as such schedule is supplemented (or, if not so supplemented, required to be
supplemented) pursuant to the terms hereof from time to time, between a Borrower Party (as lessor),
and a lessee, in each case together with all schedules, supplements and amendments thereto and each
other document, agreement and instrument related thereto.

     “Leasing Company Practice” means, in relation to an Aircraft and any particular issue or
matter, the customary commercial practice of ILFC, having regard to the customary commercial
practice that ILFC applies under similar circumstances in respect of other aircraft owned by it or
its Affiliates and not a Pool Aircraft, as such practice may be required to be adjusted by the
requirements of this Agreement and the other Loan Documents, including the requirements in respect
of Collateral.

     “Lenders” has the meaning set forth in the introductory paragraph of this Agreement.

     “Lender Fee Letter” means the letter agreement dated on or about the date hereof, between the
Borrower, ILFC and the Administrative Agent with respect to placement fees.

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     “Lender Parties” means each Lender, the Administrative Agent, the Collateral Agent and the
Joint Agents.

     “Lending Office” means, as to any Lender, the office or offices of such Lender described as
such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify the Borrower and the Administrative Agent.

     “Lessee” means any lessee party to a Lease.

     “Lessee Default” means any default by the applicable Lessee in payment of a total of three
months of rent pursuant to such Lease, and such default remains uncured for more than 120 days from
the original due date of the latest payment resulting in a total of three months of rent remaining
unpaid.

     “Lessee Notice” has the meaning set forth in Section 5.20(c).

     “LIBO Rate” means, for any Interest Period with respect to any Loan, the offered rate for
deposits in Dollars for a period equal to or nearest the number of days in such Interest Period
which appears on Reuters Page LIBOR01 (or on any successor or substitute page or service providing
rate quotations comparable to those currently provided on such page, as determined by the
Administrative Agent from time to time (after consultation with the Borrower) for purposes of
providing quotations of interest rates applicable to dollar deposits in the London interbank
market) at or about 11:00 a.m., London time, two Business Days prior to the beginning of such
Interest Period, provided that, if such rate is not available for any reason, the “LIBO
Rate” shall mean, with respect to each day during the relevant Interest Period, the rate per annum
equal to the rate at which Dollar deposits are offered by the principal London office of Citibank
to prime banks at or about 11:00 a.m., London time, two Business Days prior to the beginning of
such Interest Period in the London interbank market for delivery on the first day of such Interest
Period, in each case for a maturity comparable to such Interest Period and in an amount comparable
to the aggregate principal amount of Loans; and, provided further that if an
Interest Period with respect to any Loan does not correspond to a period that appears on Reuters
Page LIBOR01 or otherwise to a customary period for such a Dollar deposit rate quote, the LIBO Rate
shall be determined by the Administrative Agent (after consultation with the Borrower) based on an
interpolation of the available quote for a period closest to but ending prior to such Interest
Period and for a period closest to but ending after such Interest Period.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest
of a vendor or a lessor under any conditional sale agreement, capital lease (as defined by GAAP) or
title retention agreement (or any financing lease having substantially the same economic effect as
any of the foregoing) relating to such asset and (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities.

     “Litigation Actions” means all litigation, claims and arbitration proceedings, proceedings
before any Governmental Authority or investigations which are pending or, to the knowledge of a
responsible officer of any Borrower Party, threatened against, any Borrower Party.

Term Loan Credit Agreement

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     “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.

     “Loan Documents” means this Agreement, each Obligor Assumption Agreement, each Incremental
Lender Assumption Agreement, the Intercreditor Agreement, the Security Documents, the Notes and
each Fee Letter.

     “Loan-to-Value Ratio” means, as of any LTV Determination Date, the ratio of (i) the aggregate
outstanding principal amount of the Loans as of such LTV Determination Date, divided by (ii) the
sum of (a) the aggregate Appraised Value of all Pool Aircraft as of such LTV Determination Date and
(b) the amount of any Interim Cash in the Collateral Account to the extent such Interim Cash shall
not have been in the Collateral Account for more than 180 days. For the avoidance of doubt, the
principal amount of the Loans which shall have been repaid or prepaid on or before the applicable
LTV Determination Date shall not be included in the Loan-to-Value Ratio as of such LTV
Determination Date.

     “Local Requirements Exception” means an exception for Equity Interests or title to a Pool
Aircraft held by directors, trustees, nominees, conditional vendors or similar persons under
similar arrangements in order to meet local nationality or other local requirements regarding
registration or ownership of aircraft or to minimize the impact of any Taxes on the Borrower,
another Obligor or Lessee, which is consistent with Leasing Company Practice, provided that
the Obligors are in compliance with the Express Perfection Requirements.

     “LTV Certificate” has the meaning set forth in Section 5.09(a)(vii).

     “LTV Cure” has the meaning set forth in Section 5.16(c).

     “LTV Determination Date” has the meaning set forth in Section 5.16(b).

     “Maintenance Rent” means, with respect to any Pool Aircraft, maintenance reserves, maintenance
rent or other supplemental rent payments based on usage in respect of such Pool Aircraft (or its
engines or other parts) payable by the Lessee under the Lease for such Pool Aircraft for the
purpose of paying, contributing to, reserving or calculating potential liability in respect of
payments for future maintenance and repair of such Pool Aircraft, indemnity payments and any other
payments other than scheduled rent payments.

     “Market Disruption Event” means, with respect to any Interest Period on or after the Effective
Date:

     (a) the Administrative Agent determines (which determination shall be binding and
conclusive on all parties in the absence of manifest error) on or before the date that is
two Business Days prior to the commencement of such Interest Period that, by reason of
circumstances affecting the LIBO Rate market, adequate and reasonable means do not exist for
ascertaining LIBO Rate for such period; or

     (b) two or more Lenders holding, in aggregate, an outstanding amount of Loans equal to
more than 30% of the aggregate outstanding amount of Loans at such time

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advise the
Administrative Agent on or before the date that is two Business Days prior to the
commencement of such Interest Period that the cost of obtaining matching deposits in the
relevant interbank Dollar deposit market for such Interest Period would exceed the LIBO Rate
plus 0.50% for such Interest Period for reasons other than relating to the creditworthiness
or financial condition of such Lender(s) (without duplication of amounts claimed pursuant to
Section 2.08).

     “Market Disruption Cost of Funds” has the meaning set forth in Section 2.08(o).

     “Market Disruption Interest Rate” has the meaning set forth in Section 2.08(o).

     “Material Adverse Effect” means (a) a material adverse effect on the business, assets,
liabilities, operations, condition (financial or otherwise) or operating results of the Obligors
and their Subsidiaries taken as a whole, the result of which is a material impairment of the
ability of the Obligors taken as a whole to perform any of their obligations under any Loan
Document, (b) a material impairment of the totality of the rights and remedies of, or benefits
available to, any Lender Party under the Loan Documents or (c) a material adverse effect on the
value of the Collateral taken as a whole.

     “Maturity Date” means March 30, 2018.

     “Maximum Advance Amount” means, with respect to any Advance Date and the Related Pool Aircraft
related to such Advance Date, 65% of the Initial Appraised Value of such Related Pool Aircraft.

     “Maximum LTV” means (a) from the Effective Date through the day prior to the second
anniversary of the Effective Date, 70.0%; (b) from the second anniversary of the Effective Date
through the day prior to the third anniversary of the Effective Date, 68.1%; (c) from the third
anniversary of the Effective Date through the day prior to the fourth anniversary of the Effective
Date, 65.5%; (d) from the fourth anniversary of the Effective Date through the day prior to the
fifth anniversary of the Effective Date, 62.4%; (e) from the fifth anniversary of the Effective
Date through the day prior to the sixth anniversary of the Effective Date, 58.5%; and (f) from the
sixth anniversary of the Effective Date through the Maturity Date, 54.0%.

     “Maximum Rate” has the meaning set forth in Section 9.17.

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

     “Multiemployer Plan” has the meaning set forth in Section 3(37) of ERISA.

     “Non-Pool Aircraft” means, as of any date, any aircraft Owned by ILFC or any of its
Subsidiaries that is not a PS Pool Aircraft.

     “Notes” has the meaning set forth in Section 2.05(e).

     “Obligations” means all principal of the Loans outstanding from time to time hereunder, all
interest (including Post-Petition Interest) on the Loans, all other amounts now or
hereafter
payable by any Obligor under any Loan Document and any fees or other amounts now or

Term Loan Credit Agreement

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hereafter
payable by any Obligor to the Administrative Agent or the Collateral Agent for acting in its
capacity as such pursuant to a separate agreement among such parties, in each case, whether direct
or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

     “Obligor” means ILFC and each Borrower Party.

     “Obligor Assumption Agreement” means an Obligor Assumption Agreement in substantially the form
set forth in Exhibit K.

     “OFAC” has the meaning set forth in Section 3.16.

     “Operating Documents” means with respect to any corporation, limited liability company,
partnership, limited partnership, limited liability partnership, trust or other legally authorized
incorporated or unincorporated entity, the bylaws, memorandum and articles of association,
operating agreement, partnership agreement, limited partnership agreement, trust agreement or other
applicable documents relating to the operation, governance or management of such entity.

     “Organizational Documents” means with respect to any corporation, limited liability company,
partnership, limited partnership, limited liability partnership, trust or other legally authorized
incorporated or unincorporated entity, the articles of incorporation, certificate of incorporation,
memorandum of association, articles of organization, certificate of limited partnership,
certificate of trust or other applicable organizational or charter documents relating to the
creation of such entity.

     “Other Relevant Jurisdiction” means any other jurisdiction in which an Owner Subsidiary is
organized in accordance with the terms of clause (a) of the definition of “Owner Subsidiary”, and
any other jurisdiction in which an Intermediate Lessee is organized in accordance with the terms of
clause (a) of the definition of “Intermediate Lessee”.

     “Other Taxes” means all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made hereunder or under any
other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect
to, this Agreement or any other Loan Document other than Excluded Taxes.

     “Own” means, with respect to any Aircraft, to hold legal and sole ownership of such Aircraft
directly or to hold 100% of the beneficial ownership of such Aircraft through a trust, conditional
sale or similar arrangement holding title to such Aircraft. The terms “Ownership” and “Owned by”
have a correlative meaning.

     “Owner Subsidiary” means any special purpose Person or vehicle (including trusts) of which the
Borrower holds (subject to the Local Requirements Exception) directly or indirectly 100% of the
Equity Interest and which (a) is organized under any state of the United States of America, Ireland
or any other jurisdiction that is a Contracting State that is acceptable to the Administrative
Agent (acting with the consent, not to be unreasonably withheld or delayed, of the Required
Lenders), (b) (i) owns, directly or indirectly, a Pool Aircraft by Owning such Pool

Term Loan Credit Agreement

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Aircraft or
holding directly or indirectly 100% of the Equity Interest in another Owner Subsidiary that Owns
such Pool Aircraft and (ii) may additionally hold 100% of the Equity Interest in any Intermediate
Lessee that leases such Pool Aircraft and (c) 100% of the Equity Interest therein is held by a
Subsidiary Holdco or another Owner Subsidiary, subject in each case to the Local Requirements
Exception.

     “Parent” means American International Group, Inc.

     “Parent Holdco” has the meaning set forth in the introductory paragraph of this Agreement.

     “Participant” has the meaning set forth in Section 9.05(c).

     “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.

     “Payment Date” means the last Business Day of each March, June, September and December,
commencing on the last Business Day of June 2011.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Permitted Aircraft Types” means Aircraft of each of the following types: (a) Airbus A319-100,
(b) Airbus A320-200, (c) Airbus A321-200, (d) Airbus A330, (e) Boeing 737-600, (f) Boeing 737-700,
(g) Boeing 737-800, (h) Boeing 777-200ER, (i) Boeing 777-300ER, (j) Boeing 787 and (k) Airbus A350.

     “Permitted Investments” means, in each case, book-entry securities, negotiable instruments or
securities in bearer or registered form that evidence:

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

     (b) demand deposits, time deposits or certificates of deposit of the Collateral Agent
or of depositary institutions or trust companies organized under the laws of the United
States of America or any state thereof, or the District of Columbia (or any domestic branch
of a foreign bank) (i) having original maturities of no more than 365 days, or such lesser
time as is required for the distribution of funds; provided that at the time of Investment
or contractual commitment to invest therein, the short-term debt rating of such depositary
institution or trust company shall be at least “A-1” by S&P and “P-1” by Moody’s and the
long-term debt rating of such depositary or institution or trust company shall be at least
A1 by Moody’s or (ii) having maturities of more than 365 days and, at the time of the
Investment or contractual commitment to invest therein, a rating of “AA” by S&P and “Aa1” by
Moody’s;

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     (c) fully collateralized repurchase agreements with a term of not more than 30
days for securities described in clause (a) of this definition and entered into with a
financial institution satisfying the criteria described in clause (b) of this definition;

     (d) corporate or municipal debt obligations (including open market commercial paper)
(i) having remaining maturities of no more than 365 days, or such lesser time as is required
for the distribution of funds, having, at the time of the Investment or contractual
commitment to invest therein, a rating of at least “A-1+” or “AA” by S&P and “P-1” or “Aa1”
by Moody’s or (ii) having maturities of more than 365 days and, at the time of the
Investment or contractual commitment to invest therein, a rating of “AA” by S&P and “Aa1” by
Moody’s;

     (e) investments in money market funds (including funds in respect of which the
Collateral Agent or any of its Affiliates is investment manager or advisor, including but
not limited to Citibank money market funds) having a rating of at least “AA” by S&P and
“Aa2” by Moody’s previously approved by the Borrower or the Administrative Agent; or

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

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

     “Permitted Liens” means:

     (a) any Lien for Taxes if (i) such Taxes shall not be due and payable, or (ii) such
Taxes are being disputed in good faith or contested in good faith by appropriate proceedings
and reserves required by GAAP have been made therefor;

     (b) any Lien in respect of any Pool Aircraft for any fees or charges of any airport or
air navigation or similar authority arising by statute or operation of law if (i) the
payments for such fees or charges are not yet due or payable or (ii) such fees or charges
are being disputed in good faith or contested in good faith by appropriate proceedings and
reserves required by GAAP have been made therefor;

     (c) in respect of any Pool Aircraft, any repairer’s, carrier’s or hangar keeper’s,
warehousemen’s, mechanic’s or materialmen’s Lien or employee and other like Liens arising in
the ordinary course of business by operation of law or under customary terms of repair or
modification agreements or any engine or parts-pooling arrangements or other similar Liens
if the payment for such Liens (i) is not due and payable or (ii) is not overdue for payment
having regard to the relevant trade, in circumstances where no enforcement action against
the Aircraft has yet been taken by the relevant holder of the

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Lien or (iii) is disputed in good faith or contested in good faith by appropriate
proceedings and reserves in accordance with GAAP have been made therefor;

     (d) any Lien assigned to or created in favor of the Collateral Agent, for the benefit
of the Secured Parties (as defined in the Security Agreement) or the Lenders pursuant to the
Loan Documents;

     (e) any Lien affecting any Pool Aircraft (other than a Lien for Taxes) arising out of
judgments or awards against any of the Borrower Parties with respect to which at the time
the period to file an appeal has not expired or an appeal is being presented in good faith
and with respect to which within sixty (60) days thereafter there shall have been secured a
stay of execution pending such appeal, and then only for the period of such stay, and
reserves required in accordance with GAAP have been made therefor;

     (f) any permitted lien or encumbrance in respect of any Pool Aircraft, as defined under
any lease of an Aircraft (other than Liens or encumbrances created by an Obligor except as
described in this definition);

     (g) the respective rights of a Borrower Party and the lessee or any third party that
owns or leases equipment installed on an Aircraft under any lease relating to a Pool
Aircraft, including any assignment of the relevant warranties relating to a Pool Aircraft
(including restrictions on the Borrower Party’s right to grant a lien on or to transfer the
applicable Lease or Pool Aircraft) (and the rights of any sublessee under any permitted
sublease relating to such lease) and the documents related thereto;

     (h) the rights of insurers meeting the requirements of Section 2.18 of the Security
Agreement in respect of a Pool Aircraft, subject to insurance policies having been entered
into in the ordinary course of business and according to commercially reasonable terms;

     (i) the interests of a voting or owner trustee, as applicable, or of an Intermediate
Lessee in connection with the relevant Intermediate Lease, including the interests of any
Person in respect of arrangements under the Local Requirements Exception;

     (j) any Lien fully bonded against by any Borrower Party or any Lessee, or other similar
third party security (which does not itself result in a Lien on a Pool Aircraft or any part
thereof);

     (k) pledges of non-Pool Aircraft Assets or deposits required under a Lease to secure
payment obligations of the applicable Borrower Party under that Lease;

     (l) any Lease entered into prior to the Effective Date;

     (m) any Eligible Lease;

     (n) any Lien in respect of any Pool Aircraft resulting directly from any Third Party
Event, including any Lien for which a Lessee is required to discharge or indemnify

Term Loan Credit Agreement

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the lessor under a Lease, but only for so long as the Borrower and the applicable
Borrower Party or Owner Subsidiary are complying with the requirements of the proviso to the
last paragraph of Section 5.20(a);

     (o) any head lease, lease, conditional sale agreement or purchase option granted by a
lessor or owner as to the purchase of the related Pool Aircraft under or in respect of any
Lease (including to an Affiliate of the Lessee) existing on the date of acquisition of such
Pool Aircraft by the Borrower or thereafter granted in accordance with Leasing Company
Practice; and

     (q) any other Lien with the consent of the Required Lenders, but subject to Section
9.02(b).

     “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means, at any date, any employee pension benefit plan (as defined in Section 3(2) of
ERISA) which is subject to Title IV of ERISA or Section 412 of the Code (other than a Multiemployer
Plan) and to which the Borrower Party or any of its ERISA Affiliates may have any liability,
including any liability by reason of having be a substantial employer within the meaning of section
4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a
contributing sponsor under section 4069 of ERISA.

     “Platform” has the meaning set forth in Section 5.09(c).

     “Pledged Debt” has the meaning set forth in the Security Agreement.

     “Pledged Debt Collateral” has the meaning set forth in the Security Agreement.

     “Pledged Equity Interests” has the meaning set forth in the Security Agreement.

     “Pledged Equity Parties” has the meaning set forth in the Security Agreement.

     “Pool Aircraft” means, as of any date, any aircraft Owned by an Owner Subsidiary that has not
been the subject of a sale or other disposition to a Person other than another Owner Subsidiary
permitted under Section 2.10 or 5.04 (other than any aircraft so Owned, prior to the Availability
Termination, with respect to which an Advance has not yet been made, unless such Aircraft otherwise
became a Pool Aircraft prior to the Availability Termination in connection with a Removal, Deemed
Removal or other LTV Determination Date).

     “Pool Aircraft Assets” means the Pool Aircraft Collateral and any related Security Deposits or
Maintenance Rent.

     “Pool Aircraft Collateral” means all Pool Aircraft, each of the Leases related thereto and the
right, title and interest of each relevant Owner Subsidiary in and to the Acquisition Agreement
related to such Pool Aircraft.

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     “Pool Specifications” is a collective reference to each of the following requirements with
respect to the PS Pool Aircraft at any date of determination: 

     (a) the aggregate Appraised Value of a single type of Widebody Aircraft at such time
shall not exceed 35% of the aggregate Appraised Value of all PS Pool Aircraft at such time;

     (b) the aggregate Appraised Value of all Widebody Aircraft at such time shall not
exceed 55% of the aggregate Appraised Value of all PS Pool Aircraft at such time;

     (c) the aggregate Appraised Value of all Permitted Aircraft Types at such time shall be
100% of the aggregate Appraised Value of all PS Pool Aircraft at such time;

     (d) the aggregate Appraised Value of all PS Pool Aircraft leased to a single Lessee at
such time shall not exceed 25% of the aggregate Appraised Value of all PS Pool Aircraft at
such time (excluding any PS Pool Aircraft leased to a Lessee that results from the merger of
two or more Lessees, if the affected Lease of such PS Pool Aircraft was included in the
Collateral prior to such merger);

     (e) the aggregate Appraised Value of all PS Pool Aircraft leased to Lessees based or
domiciled in any single country at such time shall not exceed 40% of the aggregate Appraised
Value of all PS Pool Aircraft at such time; and

     (f) the Average Age of all PS Pool Aircraft at such time shall not exceed 5.86 years
plus the amount of time elapsed since the date of this Agreement, plus 6 months.

     “Post-Petition Interest” means any interest that accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or reorganization of any one or
more of the Borrower Parties (or would accrue but for the operation of applicable Debtor Relief
Laws), whether or not such interest is allowed or allowable as a claim in any such proceeding.

     “Premium Amount” means, with respect to any principal amount being prepaid, an amount equal to
(a) except as provided in clause (c) below, 2% of such principal amount being prepaid if the date
of such prepayment is prior to the first anniversary of the Effective Date, (b) except as provided
in clause (c) below, 1% of such principal amount being prepaid if the date of such prepayment is on
or after the first anniversary of the Effective Date and prior to the second anniversary of the
Effective Date or (c) $0.00 if (i) the date of such prepayment is on or after the second
anniversary of the Effective Date, (ii) such prepayment is made in connection with an LTV Cure
other than an LTV Cure to the extent attributable to a Removal or to a Deemed Removal, (iii) such
prepayment is made as a result of an Event of Loss of a Pool Aircraft, provided that such
prepaid amount does not exceed an amount equal to the Appraised Value of such Pool Aircraft or (iv)
pursuant to Section 9.06 (other than clause (iv) thereof).

     “Prohibited Country” has the meaning set forth in Section 3.16.

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     “Protocol” means the Protocol to the Convention on Matters Specific to Aircraft Equipment,
together with all regulations and procedures issued in connection therewith, and all other rules, amendments, supplements, modifications, and revisions thereto (in each case, as
in effect in any applicable jurisdiction from time to time and using the English language version
thereof).

     “PS Pool Aircraft” means, until the date of the Availability Termination, the Pool Aircraft
and the Undelivered Pool Aircraft and, after the date of the Availability Termination, the Pool
Aircraft.

     “Public Lender” has the meaning set forth in Section 5.09(c).

     “Qualified Appraiser” means, with respect to Appraisals used to calculate the Loan-to-Value
Ratio as of the Effective Date, each of AVITAS, Inc., Aviation Specialists Group Inc. and Ascend
Worldwide Ltd., and with respect to Appraisals used to calculate the Loan-to-Value Ratio as of each
subsequent LTV Determination Date, such appraisal firms and any other appraisal firms selected and
retained by the Borrower and, if such new appraisal firm is selected as a substitute for an
existing firm due to a Borrower-instigated change in appraisers, approved by the Administrative
Agent (with the consent, not to be unreasonably withheld or delayed, of the Required Lenders).

     “Records” means all Leases and other documents, books, records and other information
(including, without limitation, computer programs, tapes, disks, data processing software (to the
extent permitted by any applicable licenses) and related property rights owned by a Borrower Party)
directly related to the Leases and the Pool Aircraft Assets related to the Pool Aircraft and the
servicing thereof.

     “Register” has the meaning set forth in Section 9.05(b).

     “Related Pool Aircraft” means, with respect to any Advance Date, each Pool Aircraft with
respect to which an Advance is requested on such Advance Date as set forth in the Advance Request
with respect to such Advance Date.

     “Relevant Advance Parties” means in respect of an Advance Date and the Related Pool Aircraft,
(i) each Owner Subsidiary which holds title to such Related Pool Aircraft, (ii) each Subsidiary
Holdco directly holding 100% of the Equity Interests in each such Owner Subsidiary or any
Intermediate Lessee referred to in the following clause (iii) and (iii) each Intermediate Lessee
(if any) that leases such Related Pool Aircraft.

     “Remaining Aggregate Requested Advance Amount” has the meaning set forth in Section 2.03(b).

     “Removal” has the meaning set forth in Section 5.16(b).

     “Reportable Event” means an event described in Section 4043(c) of ERISA with respect to a Plan
other than those events as to which the 30-day notice period is waived under subsection .22, .23, .25, .27 or .28 of PBGC Regulation Section 4043.

Term Loan Credit Agreement

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     “Representatives” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees and advisors of such Person and of such
Person’s Affiliates.

     “Required Cape Town Registrations” means the registration with the International Registry of
(i) the International Interest provided for under the Security Agreement with respect to each
Aircraft Object in respect of a Pool Aircraft where the relevant Obligor or Lessee is situated in a
Contracting State or if such Aircraft Object is registered in a Contracting State; (ii) the
International Interest provided for in any Cape Town Lease to which such Owner Subsidiary or
Intermediate Lessee is a lessor or lessee; (iii) the assignment to the Collateral Agent of each
International Interest described in clause (ii) and assigned to the Collateral Agent hereunder; and
(iv) the Contract of Sale with respect to any Pool Aircraft by which title to such Pool Aircraft is
conveyed by or to such Owner Subsidiary due to a transfer occurring in connection with such Pool
Aircraft becoming a Pool Aircraft, but only if the seller under such Contract of Sale is situated
in a Contracting State or if such Aircraft Object is registered in a Contracting State and if such
seller agrees to such registration

     “Required Lenders” means Lenders (other than any Defaulting Lenders) holding greater than 50%
of the amount equal to the sum of the aggregate amount of the unused Aggregate Commitments plus the
aggregate outstanding principal amount of the Loans.

     “Requirement of Law” means, as to any Person, any Law applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is subject, including,
without limitation, each Applicable Foreign Aviation Law applicable to such Person or a Pool
Aircraft Owned or operated by it or as to which it has a contractual responsibility.

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

     “Sanctions” has the meaning set forth in Section 3.16.

     “Secured Obligations” has the meaning set forth in the Security Agreement.

     “Secured Parties” has the meaning set forth in the Security Agreement.

     “Securities Account” has the meaning set forth in the Security Agreement.

     “Securities Intermediary” has the meaning set forth in the Account Control Agreement.

     “Security Agreement” means the Aircraft Mortgage and Security Agreement by the Borrower
Parties party thereto in favor of the Collateral Agent, in substantially the form of Exhibit B
hereto, together with any supplements delivered pursuant to Section 2.10(b), Section 2.10(e),
Section 4.02(c) or Section 5.02(a) hereof (in each case as amended, restated, amended and restated,
supplemented or otherwise modified from time to time).

     “Security Deposit” means any security deposits and any payments made to reinstate security
deposits payable by any Lessee under a Lease.

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     “Security Documents” means the Security Agreement, each Charge Over Shares, the Account
Control Agreement and each other agreement, supplement, instrument or document executed and
delivered pursuant to Section 2.10, Section 4.02 or Section 5.02 to secure any of the Obligations.

     “Six-Month Anniversary” has the meaning set forth in Section 5.16(e).

     “Specified Representation Deficiency” has the meaning set forth in Section 2.10(i).

     “subsidiary” means, with respect to any Person (the “parent”) at any date, (a) any
corporation, limited liability company, partnership or other entity the accounts of which would be
consolidated with those of the parent in the parent’s consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date and (b) any other
corporation, limited liability company, partnership or other entity (i) of which securities or
other ownership interests representing more than 50% of the equity or more than 50% of the ordinary
voting power or, in the case of a partnership, more than 50% of the general partnership interests
are, as of such date, owned, controlled or held, or (ii) that is otherwise Controlled as of such
date, by the parent and/or one or more of its subsidiaries.

     “Subsidiary” means any direct or indirect subsidiary of an Obligor, and includes a trust.

     “Subsidiary Holdco” means CA Subsidiary Holdco and Irish Subsidiary Holdco.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable thereto.

     “Third Party Event” has the meaning set forth in Section 5.20(a).

     “Title 49” means Title 49 of the United States Code, which, among other things, recodified and
replaced the U.S. Federal Aviation Act of 1958, and the rules and regulations promulgated pursuant
thereto or any subsequent legislation that amends, supplements or supersedes such provisions.

     “UCC” means the Uniform Commercial Code in effect from time to time in the State of New York;
provided, however, that if by reason of mandatory provisions of law, the perfection
or the effect of perfection or non-perfection of the security interest in any item or portion of
the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
the State of New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection.

     “UCC Financing Statement” means any financing statement to be filed in any appropriate filing
office in any UCC Jurisdiction and that (i) indicates the applicable Collateral by any description
which reasonably approximates the description contained in this Agreement and in the Security
Agreement as all applicable assets of the applicable Borrower Party or words of similar effect,
regardless of whether any particular asset comprised in such Collateral falls

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within the scope of Article 9 of the UCC or other similar provisions of the UCC Jurisdiction, and
(ii) contains any other information required by part 5 of Article 9 of the UCC, or by any
other applicable provision under the laws of the UCC Jurisdiction, for the sufficiency or filing
office acceptance of any financing statement or amendment; provided, however, that
in addition to any financing statement to be filed in any appropriate filing office in any UCC
Jurisdiction, UCC Financing Statements shall include at all times financing statements to be filed
in the State of California and the District of Columbia.

     “UCC Jurisdiction” means any Uniform Commercial Code jurisdiction in which the filing of a UCC
Financing Statement is effective to perfect a security interest in the Collateral under this
Agreement, the Security Agreement, or any other Loan Document.

     “Uncertificated Security” has the meaning set forth in the Security Agreement.

     “Undelivered Pool Aircraft” means, as of any date, the pool of aircraft Owned by ILFC or any
of its Subsidiaries (or to be purchased and thereafter so Owned), satisfying each of the following
conditions: (x) the Obligors shall each have a good faith intention and, to ILFC’s knowledge, the
ability to transfer such aircraft to an Owner Subsidiary prior to the first anniversary of the
Effective Date, (y) such aircraft shall be listed on Schedule 3.17(a) attached hereto, as amended,
restated or supplemented from time to time pursuant to Section 2.10 and Section 5.09(a)(vii) and
(z) no Advance has been made with respect thereto. For the avoidance of doubt, upon the occurrence
of the Availability Termination, there shall be no Undelivered Pool Aircraft.

     “United States” means the United States of America.

     “UNSC” has the meaning set forth in Section 3.16.

     “Widebody Aircraft” shall mean Aircraft of each of the following types: (a) Airbus A330, (b)
Airbus A350, (c) Boeing 777-200ER, (d) Boeing 777-300ER and (e) Boeing 787.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

     Section 1.02. Terms Defined in the Cape Town Convention. The following terms shall have the
respective meanings ascribed thereto in the Cape Town Convention: “Administrator”, “Contracting
State”, “Contract of Sale”, “International Interest”, “Professional User Entity”, “Prospective
International Interest”, “situated in” and “Transacting User Entity”.

     Section 1.03. Terms Generally. The definitions of terms herein (including those incorporated
by reference to another document) apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun includes the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be
followed by the phrase “without limitation”. The word “will” shall be construed to have the same
meaning and effect as the word “shall”. Unless the context requires otherwise, (i) any definition of or
reference to any agreement, instrument or other document

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herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein), (ii) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, (iii) the words “herein”, “hereof” and “hereunder”, and words of
similar import, shall be construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (iv) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (v) the word “property” shall be construed to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights.

     Section 1.04. Accounting Terms; Changes in GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP
as in effect from time to time.

     Section 1.05. Times. Except as otherwise expressly provided herein, all references to times
are to such time in New York, New York.

ARTICLE 2

The Credits

     Section 2.01. Commitment. (a) Subject to the terms and conditions and relying on the
representations and warranties set forth herein, each Lender agrees to make Loans to the Borrower
from time to time on Advance Dates in an aggregate principal amount up to the amount of its
Commitment by transfer of the amount of each Loan to the Administrative Agent as described in
Section 2.03; provided that the aggregate amount of Loans made by the Lenders on any
Advance Date shall not exceed the Maximum Advance Amount for such Advance Date. The Loans and the
Commitments hereunder are not revolving and amounts repaid or prepaid may not be reborrowed.

     (b) Any undrawn portion of the Commitments shall automatically terminate immediately upon the
occurrence of the Availability Termination. The Commitments once terminated may not be reinstated.

     (c) The Borrower may, by written notice to the Administrative Agent at any time within 45 days
after the date of this Agreement, advise of the obtaining of the Incremental Commitments in an
aggregate amount equal to the Incremental Loan Amount. Such notice shall set forth (i) the amount
of the Incremental Commitments being obtained (the aggregate amount of which shall be equal to the
Incremental Loan Amount) and (ii) the date on which such Incremental Commitments are requested to become effective (which shall not be later than 45
days after the date of this Agreement) (the “Incremental Effective Date”). On the Incremental
Effective Date, the Borrower shall deliver to the Administrative Agent (i) an Incremental Lender
Assumption Agreement (duly executed and delivered by each party thereto), along with all of the
attachments thereto. The Administrative Agent shall promptly notify each Lender of the execution
and delivery of each Incremental Lender Assumption Agreement. As of an Incremental Effective
Date, this Agreement shall be deemed supplemented by the Incremental

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Lender Assumption Agreement,
the applicable Incremental Lender shall be a “Lender” hereunder and its Incremental Commitment
shall be a “Commitment” hereunder. No existing Lender shall be obligated to become an Incremental
Lender.

     Section 2.02. Request to Advance Loans. The Borrower shall request that the Lenders make the
Loans on any Advance Date by delivering to the Administrative Agent one or more (by PS Pool
Aircraft) notices in writing in the form attached hereto as Exhibit J (collectively with respect to
the same Advance Date, an “Advance Request”) no later than 12:00 p.m., New York City time, at least
five Business Days before such Advance Date. Such Advance Request shall specify (i) the Advance
Date, (ii) the Related Pool Aircraft for such Advance Date (including the Initial Appraised Values
thereof) and (iii) the aggregate amount of the Loans to be made on such Advance Date. Each Advance
Request shall be revocable, provided that the Borrower shall make any payment related to
any revocation of an Advance Request or other failure to borrow any Loan in accordance with Section
2.08(m). Following the receipt of an Advance Request, the Administrative Agent shall promptly
notify each Lender thereof including the amount of such Lender’s Catch-Up Advances (if any) and
such Lender’s Applicable Percentage of the Aggregate Requested Advance Amount (or Remaining
Aggregate Requested Advance Amount, if any Catch-Up Advances will be advanced on such Advance Date
pursuant to Section 2.03(b)) for the applicable Advance Date. Each determination by the
Administrative Agent of the foregoing, including the amounts of the Catch-Up Advances and the
Remaining Aggregate Requested Advance Amount, shall be conclusive as to the amount and calculation
thereof and shall ensure that Lenders are obligated to make 100% of the aggregate amount of the
Loans to be made on such Advance Date.

     Section 2.03. Advances of Aggregate Requested Advance Amount. (a) On each Advance Date each
Lender shall wire the principal amount of its Loan in an amount equal to its Applicable Percentage
of the relevant Aggregate Requested Advance Amount (or of the Remaining Aggregate Requested Advance
Amount, if any Catch-Up Advances will be advanced on such Advance Date pursuant to Section 2.03(b),
and its Catch-Up Amount (if any) in the case of Catch-Up Advances pursuant to Section 2.03(b)), in
each case in the principal amount determined by the Administrative Agent, in immediately available
funds, by 12:00 p.m., New York City time, on such Advance Date, to the Administrative Agent’s
Account.

     (b) If an Advance Date has occurred prior to an Incremental Effective Date, then on each
Advance Date occurring after such Incremental Effective Date until the relevant Incremental Lender
has advanced its Catch-Up Amount, such Incremental Lender shall wire the principal amount of its
Loan in an amount equal to its Applicable Incremental Percentage of the
relevant Aggregate Requested Advance Amount (up to an amount equal to its Catch-Up Amount,
when taken together with all previous Advances made by such Incremental Lender) (a “Catch-Up
Advance”), in each case as determined by the Administrative Agent, in immediately available funds,
by 12:00 p.m., New York City time, on such Advance Date, to the Administrative Agent’s Account. If
on an Advance Date on which Catch-Up Advances will be made pursuant hereto, all Catch-Up Advances
to be advanced by the Incremental Lenders will be equal to an amount less than the relevant
Aggregate Requested Advance Amount, the difference between such Aggregate Requested Advance Amount
and the Catch-Up Advances to be made on such Advance Date shall be the “Remaining Aggregate
Requested Advance Amount” for such Advance Date.

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     (c) On each Advance Date, subject to the terms and conditions herein (including that the
Effective Date shall have occurred and the satisfaction of each of the conditions set forth in
Section 4.02), promptly upon receipt from each Lender of an amount equal to its Applicable
Percentage of the Aggregate Requested Advance Amount as described in Section 2.03(a) (or if
applicable, receipt from each Incremental Lender of its Catch-Up Advance, and from each Lender of
an amount equal to its Applicable Percentage of any Remaining Aggregate Requested Advance Amount,
pursuant to Section 2.03(b)), the Administrative Agent shall transfer to the Borrower (to the
account designated in the relevant Advance Request) all such proceeds of the Loans.

     Section 2.04. Interest. (a) Subject to the provisions of this Section 2.04 or except as
otherwise provided herein, the Loans shall bear interest at a rate per annum equal to the LIBO Rate
for the Interest Period in effect plus the Applicable Margin. Interest shall be computed on the
basis of a year of 360 days and actual days elapsed, except that interest computed by reference to
the Base Rate at any time which the Base Rate is based on the “prime rate” (as described in the
definition of Base Rate) shall be computed on the basis of a year of 365 days (or 366 days in a
leap year) and actual days elapsed. Interest shall accrue on each Loan for the day on which the
Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan
or such portion is paid, provided that any Loan that is paid on the same day on which it is
made shall bear interest for one day. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be prima facie evidence thereof.

     (b) If the Borrower shall default in the payment of any principal of or interest on the Loans
or any other amount due hereunder, by acceleration or otherwise, then, until such defaulted amount
shall have been paid in full, to the extent permitted by law, all such overdue amounts due from the
Borrower under this Agreement and the other Loan Documents shall bear interest (after as well as
before judgment), payable on demand, at a rate equal to (i) the interest rate otherwise applicable
to the Loans pursuant to this Section 2.04 plus (ii) 2.00% per annum.

     (c) Interest accrued on the Loans shall be payable in arrears on each Payment Date, shall be
calculated to include the first day of each Interest Period and to, but excluding, the last day of
each Interest Period and shall be paid into the Administrative Agent’s Account; provided
that (i) interest accrued pursuant to Section 2.04(b) shall be payable on demand and (ii) upon any
repayment of the Loans, interest accrued on the principal amount repaid shall be payable on
the date of such repayment.

     (d) The Administrative Agent shall determine, in accordance with the terms of this Agreement,
each interest rate applicable to the Loans hereunder. The Administrative Agent shall promptly
notify the Borrower and the Lenders of each rate of interest so determined, and its determination
thereof shall be prima facie evidence thereof.

     Section 2.05. Payment at Maturity; Scheduled Payments; Evidence of Debt. (a) The Borrower
agrees to pay to the Lenders on the Maturity Date the then unpaid principal amount of the Loans by
deposit into the Administrative Agent’s Account. The unpaid principal amount of the Loans
outstanding at any time shall be deemed reduced by any amounts paid by any Obligor pursuant to
Article 7 on a dollar-for-dollar basis.

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     (b) The Borrower agrees to pay to the Lenders on each Payment Date commencing on the fifth
Payment Date a portion of the outstanding principal amount of the Loans, in an amount equal to 2.5%
of the sum of the Loans made on each Advance Date, which amount shall be determined by the
Administrative Agent upon the occurrence of the Availability Termination.

     (c) The Administrative Agent shall maintain in accordance with its usual practice a Register
evidencing the indebtedness of the Borrower to each Lender resulting from the Loans, including the
amounts of principal and interest payable and paid to the Lenders from time to time.

     (d) The entries made in the Register maintained pursuant to subsection (b) of this Section
shall be conclusive evidence, absent manifest error, of the existence and amounts of the
obligations recorded therein; provided that any failure by the Administrative Agent to
maintain such Register or any error therein, which shall be promptly corrected, shall not affect
the Borrower’s obligation to repay the Loans to the Lender reflected in the Register as the owner
thereof in accordance with the terms of this Agreement.

     (e) Upon request by any Lender, the Borrower shall provide such Lender with a promissory note,
substantially in the form of Exhibit F hereto, evidencing the Loans made by the Lender on each
Advance Date (each, a “Note”).

     Section 2.06. Optional and Mandatory Prepayments. (a) Optional Prepayments. The Borrower
will have the right at any time to prepay the aggregate outstanding principal amount of the Loans
in whole or in part in amounts not less than $20,000,000 or increments of $500,000 in excess
thereof and otherwise in accordance with the provisions of this Section by deposit into the
Administrative Agent’s Account.

     (b) Mandatory Prepayments. The Borrower shall prepay the aggregate outstanding principal
amount of the Loans to the extent required pursuant to Section 5.16. For the avoidance of doubt,
payments made in order to comply with Section 5.16 may be in any amounts necessary for such
compliance.

     (c) Accrued Interest; Premium. Each prepayment of any principal amount of the Loans shall be
accompanied by (a) accrued interest on the amount being prepaid to the date of such prepayment and
(b) the applicable Premium Amount, if any.

     (d) Notice of Prepayments. The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment of the principal amount of the Loans hereunder not later
than 11:00 a.m., New York City time, three Business Days before the date of prepayment in the case
of a prepayment under Section 2.06(a) (except to cure a Default or Event of Default), and on the
date of prepayment (which shall be a Business Day) in the case of a prepayment under Section
2.06(b) or any prepayment being made to cure a Default or Event of Default. Each such notice shall
be irrevocable and shall specify the prepayment date, the aggregate principal amount of the Loans
to be prepaid.

     (e) Application of Prepayments. All prepayments of principal made prior to the Availability
Termination shall be applied pro rata to reduce each installment of principal payable

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under Section
2.05(b) and the balloon payment of principal payable under Section 2.05(a). All other prepayments
shall be applied to principal in the inverse order of maturity.

     Section 2.07. Fees. (a) The Borrower shall pay to the Administrative Agent for its own
account fees in the amounts and at the times specified in the Agent Fee Letter. Such fees shall be
fully earned when paid and shall not be refundable for any reason whatsoever.

     (b) The Borrower shall pay to the Administrative Agent for the account of each Lender for such
Lender’s account fees in the amounts and at the times specified in the Lender Fee Letter. Such
fees shall be fully earned when paid and shall not be refundable for any reason whatsoever

     (c) On each Payment Date until the Payment Date on or immediately succeeding the date the
Availability Termination occurs, the Borrower shall pay to each Lender (other than any Defaulting
Lender) the accrued and unpaid portion of a commitment fee on the daily unused amount of the
Commitment of such Lender for the period from the date hereof in the case of Lenders that are not
Incremental Lenders and, from the Incremental Effective Date of its Incremental Commitment in the
case of an Incremental Lender, in each case until the date the Availability Termination occurs, at
a rate equal to 0.75% per annum (calculated in arrears on the basis of a 360-day year).

     Section 2.08. Taxes; Increased Costs; Etc. (a) Payments Free of Taxes; Obligation to
Withhold; Payments on Account of Taxes. (i) Any and all payments by or on account of any
obligation of the Borrower hereunder or under any other Loan Document shall, to the extent
permitted by applicable Laws, be made free and clear of and without reduction or withholding for
any Taxes. If, however, applicable Laws require the Borrower or the Administrative Agent to
withhold or deduct any Tax (i) such Tax shall be withheld or deducted in accordance with such Laws
as determined by the Borrower or the Administrative Agent, as the case may be, upon the basis of
the information and documentation to be delivered pursuant to subsection (e) below; (ii) the
Borrower or the Administrative Agent, as the case may be, shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with applicable Law; and (iii) to the extent that the
withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by
the Borrower shall be increased as necessary so that after any such required withholding or the
making of all such required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent or the Lender, as the case may be, receives an amount
equal to the sum it would have received had no such withholding or deduction been made.

     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of subsection (a)
above, the Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable Laws.

     (c) Tax Indemnifications. (i) Without limiting the provisions of subsection (a) or (b) above,
the Borrower shall, and does hereby, indemnify the Administrative Agent and each Lender, and shall
make payment in respect thereof within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section)

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withheld or deducted by the Borrower or the Administrative Agent from payments made under this
Agreement (to the extent no increased payment has been made in accordance with Section 2.08(a) on
account of such withholding or deduction) or paid by the Administrative Agent or such Lender, as
the case may be, and any reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of any such payment or liability
delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.

     (d) Evidence of Payments. Upon request by the Borrower or the Administrative Agent, as the
case may be, after any payment of Taxes by the Borrower or by the Administrative Agent to a
Governmental Authority as provided in this Section 2.08, the Borrower shall deliver to the
Administrative Agent or the Administrative Agent shall deliver to the Borrower, as the case may be,
the original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of any return required by Laws to report such payment or other evidence of such
payment reasonably satisfactory to the Borrower or the Administrative Agent, as the case may be.

     (e) Status of Lenders; Tax Documentation. (i) Each Lender shall deliver to the Borrower and
to the Administrative Agent, at the time or times reasonably requested by the Borrower or the
Administrative Agent, such properly completed and executed documentation prescribed by applicable
Laws or by the taxing authorities of any jurisdiction and such other reasonably requested
information as will permit the Borrower or the Administrative Agent, as the case may be, to
determine (A) whether or not payments made hereunder or under any other Loan Document are subject
to Taxes, (B) if applicable, the required rate of withholding or deduction, and (C) such Lender’s
entitlement to any available exemption from, or reduction of, applicable Taxes in respect of
payments to be made to such Lender by the Borrower pursuant to this Agreement or otherwise to
establish such Lender’s status for withholding tax purposes in the applicable jurisdiction.

          (ii) Without limiting the generality of the foregoing;

               (A) any Lender that is a “United States person” within the meaning of Section 7701(a)(30) of
the Code shall deliver to the Borrower and the Administrative Agent, on or prior to the date on
which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the
request of the Borrower or the Administrative Agent), executed originals of Internal Revenue
Service Form W-9 or such other documentation or information prescribed by applicable United States
federal Laws or reasonably requested by the Borrower or the Administrative Agent as will enable the
Borrower or the Administrative Agent, as the case may be, to determine whether or not such Lender
is subject to backup withholding or information reporting requirements; and

               (B) each Foreign Lender that is entitled under the Code or any applicable treaty to an
exemption from or reduction of United States federal withholding tax with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient)

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on or prior to the date on
which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the request of the Borrower or the Administrative Agent, but only if such Foreign Lender is
legally entitled to do so), whichever of the following is applicable:

               (1) executed originals of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

               (2) executed originals of Internal Revenue Service Form W-8ECI,

               (3) executed originals of Internal Revenue Service Form W-8IMY and all required supporting
documentation,

               (4) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender
is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent
shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a
“controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) executed
originals of Internal Revenue Service Form W-8BEN, or

               (5) executed originals of any other form prescribed by applicable Laws as a basis for claiming
exemption from or a reduction in United States Federal withholding tax together with such
supplementary documentation as may be prescribed by applicable Laws to permit the Borrower or the
Administrative Agent to determine the withholding or deduction required to be made.

          (iii) Each Lender shall promptly (A) notify the Borrower and the Administrative Agent of any
change in circumstances which would modify or render invalid any claimed exemption or reduction,
and (B) at the request and expense of the Borrower, take such steps as shall not be materially
disadvantageous to it as determined in the sole good faith discretion of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement
of applicable Laws of any jurisdiction that the Borrower or the Administrative Agent make any
withholding or deduction for Indemnified Taxes from amounts payable to such Lender.

     (f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender, as
the case may be. If the Administrative Agent or any Lender determines, in its sole discretion,
that it has received a refund (or credit or offset against an Excluded Tax in lieu of a cash refund
of a Tax or Other Tax) of any Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts pursuant to this
Section, it shall, unless an Event of Default has occurred and is continuing, pay
to the Borrower an amount equal to such refund (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes

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or
Other Taxes giving rise to such refund (or credit or offset)), net of all Taxes resulting from such
refund and out-of-pocket expenses incurred by the Administrative Agent or such Lender, as the case
may be, and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund (or credit or offset)), provided that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such
Lender is required to repay such refund to such Governmental Authority. This subsection shall not
be construed to require the Administrative Agent or any Lender to make available its tax returns
(or any other information relating to its taxes that it deems confidential in its sole good faith
discretion) to the Borrower or any other Person.

     (g) Illegality; Impracticality; Increased Costs. (i) If any Lender determines that any Law
has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any
Lender or its applicable Lending Office to make, maintain or fund Loans, or to determine or charge
interest rates based upon the LIBO Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars
in the London interbank market, as a result of contingencies occurring after the date hereof
(provided that the Dodd-Frank Wall Street Reform and Consumer Protection Act, and all
requests, rules, guidelines and directives promulgated thereunder, are deemed to have been
introduced or adopted after the date hereof, regardless of the date enacted or adopted) which
materially and adversely affect the London interbank market or the position of such Lender in that
market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent,
any obligation of such Lender to make or continue Loans shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from
such Lender (with a copy to the Administrative Agent), (A) in the case of illegality, only if it is
possible to eliminate such illegality by converting the Loans to Loans bearing interest based on
the Base Rate, and in the case of another circumstance described above not constituting illegality,
all Loans of such Lender shall thereafter be converted to Loans that bear interest at a rate equal
to the Base Rate plus the Applicable Margin either on the last day of the Interest Period
therefore, if such Lender may lawfully continue to maintain such Loans to such day, or immediately,
if such Lender may not lawfully continue to maintain such Loans or (B) otherwise, solely in the
case of illegality, prepay all Loans of such Lender either on the last day of the Interest Period
therefor, if such Lender may lawfully continue to maintain such Loans to such day, or immediately,
if such Lender may not lawfully continue to maintain such Loans. Upon any such prepayment, the
Borrower shall also pay accrued interest on the amount so prepaid.

     (h) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement);

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     (ii) subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, or change the basis of taxation of payments to such Lender in respect thereof
(except for Indemnified Taxes or Other Taxes covered by Section 2.08 and the imposition of,
or any change in the rate of, any Excluded Tax payable by such Lender); or

     (iii) impose on any Lender or the London interbank market any other condition, cost or
expense affecting this Agreement made by such Lender or participation therein (except any
reserve requirement);

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan (or of maintaining its obligation to make any Loan), or to reduce the amount
of any sum received or receivable by such Lender under or in respect of the Loan Documents then,
within 10 Business Days after demand by such Lender, the Borrower will, without duplication of any
other amount payable under this Section 2.08 or Section 2.09, pay to such Lender such additional
amount or amounts as will compensate such Lender for such additional costs incurred or reduction
suffered.

     (i) If any Lender determines that any Change in Law affecting such Lender or any Lending
Office of such Lender or such Lender’s holding company, if any, regarding capital or reserve
requirements has or would have the effect of reducing the rate of return on such Lender’s capital
or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the
Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender
or such Lender’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding company with respect
to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may
be, such additional amount or amounts as will compensate such Lender or such Lender’s holding
company for any such reduction suffered.

     (j) A certificate of a Lender setting forth in reasonable detail the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be, as specified in
subsection (a) or (b) of this Section and certifying that such amounts were calculated on an
accurate, fair and non-discriminatory basis and delivered to the Borrower shall be conclusive
absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such
certificate within 10 Business Days after receipt thereof.

     (k) Failure or delay on the part of any Lender to demand compensation pursuant to the
foregoing provisions of this Section shall not constitute a waiver of such Lender’s right to demand
such compensation, provided that the Borrower shall not be required to compensate a Lender
pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions
suffered more than six months prior to the date that such Lender notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to
claim compensation therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the six-month period referred to above shall be extended to
include the period of retroactive effect thereof).

     (l) The Borrower shall pay to each Lender, as long as such Lender shall be required to
maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency

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funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the
unpaid principal amount of each Loan equal to the actual costs of such reserves allocated to such
Loan by such Lender (as determined by such Lender in good faith, which determination shall be
conclusive), which shall be due and payable on each date on which interest is payable on such Loan,
provided the Borrower shall have received at least 10 days’ prior notice (with a copy to
the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give
notice 10 days prior to the relevant Payment Date, such additional interest shall be due and
payable 10 days from receipt of such notice.

     (m) Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the
Borrower shall, within 10 days of such demand, compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

     (i) any conversion, payment or prepayment of any Loans on a day other than the last day
of the Interest Period (whether voluntary, mandatory, automatic, by reason of acceleration,
or otherwise);

     (ii) any failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay or borrow any Loans on the date or in the amount notified by the
Borrower; or

     (iii) any assignment of a Loan on a day other than the last day of the Interest Period
therefor as a result of a request by the Borrower pursuant to Section 9.06;

(for the avoidance of doubt, such loss, cost or expense shall exclude any loss of anticipated
profits and shall include any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loans). For purposes of calculating amounts payable by the
Borrower to the Lenders under this clause (m), each Lender shall be deemed to have funded each Loan
made by it at the LIBO Rate by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such Loan was
in fact so funded, with the result that the Borrower’s obligation to compensate each Lender for its
loss, profit and expense as provided in this clause (m) shall be deemed to be in the amount of the
excess, if any, of the interest at such LIBO Rate on the applicable amount for the remainder of
such Interest Period over interest at the LIBO Rate as it would be in effect if quoted on the
applicable date on the applicable amount for the remainder of the Interest Period.

     (n) If any Lender requests compensation, the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender or if any Lender gives a
notice under this Section 2.08, then such Lender shall use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the good faith
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to this Section 2.08 in the future, or eliminate the need for the notice pursuant
to this Section 2.08, as applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

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     (o) If a Market Disruption Event occurs with respect to any Interest Period, the
Administrative Agent shall promptly notify the Borrower, and so long as the Market Disruption Event
shall continue, the rate of interest (the “Market Disruption Interest Rate”) on each affected
Lender’s Loans, for such Interest Period, will be the sum of (a) the Applicable Margin minus 0.50%;
and (b) a rate which expresses as a percentage rate per annum the cost to such Lender of funding
its outstanding Loans for such Interest Period from whatever source (the “Market Disruption Cost of
Funds”).

     Each affected Lender shall provide a certificate from an authorized officer of such Lender
having financial responsibilities to the Administrative Agent of its Market Disruption Cost of
Funds for each Interest Period with respect to which a Market Disruption Interest Rate shall apply.
Such certificate shall be conclusive and shall constitute a certification by such Lender that the
interest rate so provided is an accurate and fair calculation of its funding costs for such period,
which assessment has been made on a fair and non-discriminatory basis relative to similarly
situated borrowers and does not include any mark up, fees, premiums, overhead allocations or other
amounts not constituting the interest expense-type cost of obtaining such funding.

     Each Market Disruption Event shall be deemed to be in existence only for the Interest Period
in respect of which the notice to the Borrower provided for above was given, and shall be deemed to
cease to occur for any subsequent Interest Period unless the Administrative Agent or affected
Lenders (as applicable) make the determination that a Market Disruption Event exists for such
subsequent Interest Period, in which case the applicable procedures described above shall be
followed again for such subsequent Interest Period, including the notice by the Administrative
Agent to the Borrower and delivery of the officer’s certificate described above. There cannot be
more than one Market Disruption Event applicable for any Interest Period.

     The Borrower will have the right to require the Administrative Agent and each affected Lender
to consult with the Borrower in good faith for a period of not less than 30 Business Days with a
view to agreeing a substitute basis for determining the rate of interest for the relevant Interest
Period (which substitute basis may include alternative currencies, interest periods and/or
alternative rates of interest, without limitation).

     (p) All of the Borrower’s obligations under this Section 2.08 shall survive termination of the
Aggregate Commitments, repayment of all other Obligations hereunder, and resignation of the
Administrative Agent.

     Section 2.09. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) All payments
to be made by the Borrower shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the
Borrower hereunder shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 2:00 p.m. on the date specified herein. The
Administrative Agent will promptly (on the same day received, subject to the next sentence)
distribute to each Lender its Applicable Percentage in respect of the relevant Loans (or other
applicable share as provided herein) of such payment in
like funds as received by wire transfer to such Lender’s Lending Office. All payments
received by the Administrative Agent

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after 2:00 p.m. shall be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to accrue. If any
payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall
be made on the next following Business Day, and such extension of time shall be reflected on
computing interest or fees, as the case may be.

     (b) If at any time insufficient funds are received by the Administrative Agent to pay fully
all amounts of principal, interest and fees then due hereunder, such funds shall be applied as
follows: first, to pay interest and fees then due hereunder ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such parties and second, to
pay principal then due hereunder ratably among the parties entitled thereto in accordance with the
amounts of principal then due to such parties.

     (c) If any Lender makes available to the Administrative Agent funds for any Loan to be made by
such Lender as provided in this Article II, and such funds are not made available to the Borrower
by the Administrative Agent because the conditions to such Loan are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds
as received from such Lender) to such Lender, without interest, on the same day received
(provided that all payments received by the Administrative Agent after 2:00 p.m. shall be
deemed received on the next succeeding Business Day).

     (d) Unless the Administrative Agent shall have received notice from a Lender prior to any
Advance Date that such Lender will not make available to the Administrative Agent such Lender’s
share of such Loans on such Advance Date, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with Section 2.03 and may, in reliance upon
such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender
has not in fact made its share of the Loans available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on
demand such corresponding amount in immediately available funds with interest thereon, for each day
from and including the date such amount is made available to the Borrower to but excluding the date
of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender,
the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the Administrative Agent in connection with the
foregoing, and (B) in the case of a payment to be made by the Borrower, the Base Rate plus the
Applicable Margin. If the Borrower and such Lender shall pay such interest to the Administrative
Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period. If such Lender pays its
share of the applicable Loans to the Administrative Agent, then the amount so paid shall constitute
such Lender’s Loan. Any payment by the Borrower shall be without prejudice to any claim the
Borrower may have against a Lender that shall have failed to make such payment to the
Administrative Agent.

     Unless the Administrative Agent shall have received notice from the Borrower prior to the date
on which any payment is due to the Administrative Agent for the account of the Lenders hereunder
that the Borrower will not make such payment, the Administrative Agent may assume
that the Borrower has made such payment on such date in accordance herewith and may, in

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reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender, in
immediately available funds with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the Administrative Agent, at
the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

     A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (d) shall be conclusive, absent manifest error.

     (e) The obligations of the Lenders hereunder are several and not joint. The failure of any
Lender to make any Loan on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be responsible for the failure
of any other Lender to so make its Loan.

     (f) Except for a payment pursuant to Section 9.06, if any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of the Loans made by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Loans and accrued interest thereon greater than its pro
rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a)
notify the Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on their respective Loans
and other amounts owing them, provided that:

     (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this subsection (f) shall not be construed to apply to any
payment made by or on behalf of the Borrower pursuant to and in accordance with the express
terms of this Agreement (including the application of funds arising from the existence of a
Defaulting Lender), other than an assignment to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions this subsection (f) shall apply).

Each Obligor consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against such Obligor rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Obligor in the amount of
such participation.

     Section 2.10. Changes to the Designated Pool; Intermediate Lessees; Release of a Subsidiary
Holdco.

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     (a) Removal of Pool Aircraft from the Designated Pool; Modifications to the Designated Pool.
The Borrower may remove any PS Pool Aircraft (and, subject to Sections 2.10(d) and (h), each
related Owner Subsidiary and Intermediate Lessee) from the Designated Pool if (i) the Borrower
shall have provided at least five Business Days’ revocable prior written notice to the
Administrative Agent (who shall promptly deliver such notice to the Lenders) prior to any such
removal in the case of a Pool Aircraft, and one (1) Business Day prior written notice in the case
of an Undelivered Pool Aircraft, (ii) after giving pro forma effect to such removal of any Pool
Aircraft and any addition of a Non-Pool Aircraft and/or Interim Cash, the Borrower shall be in
compliance with Section 5.16(a) and (iii) after giving pro forma effect to such removal of any
Undelivered Pool Aircraft prior to the first anniversary of the date hereof and any addition of a
Non-Pool Aircraft, the Pool Specifications shall be satisfied; provided that, if
a Default shall occur or be reasonably expected to occur relating to a particular Owner Subsidiary,
Intermediate Lessee or PS Pool Aircraft, the Borrower may remove such PS Pool Aircraft (and,
subject to Sections 2.10(d) and (h), each related Owner Subsidiary and Intermediate Lessee) from
the Designated Pool if the Borrower shall have provided prior written notice to the Lender Parties
on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) and
if, after giving pro forma effect to such removal, the Borrower is in compliance with Section
5.16(a). Upon satisfaction of the conditions set forth in the preceding sentence with respect to
any PS Pool Aircraft, the Collateral Agent’s security interest in, and Lien on, the Collateral
directly related to such PS Pool Aircraft (including, subject to Sections 2.10(d) and (h), in
respect of the related Owner Subsidiary and Intermediate Lessee) shall be automatically released
and Schedule 3.17(a) shall be amended to reflect the removal of such PS Pool Aircraft from the
Designated Pool. The Collateral Agent shall promptly execute and deliver to the Borrower, at the
Borrower’s expense, all documents that the Borrower shall reasonably request to evidence its
release of the security interests in, and Liens on, the relevant Collateral related to the relevant
Pool Aircraft (including, subject to Sections 2.10(d) and (h), in respect of the related Owner
Subsidiary and Intermediate Lessee). From time to time prior to the Final Advance Date, in respect
of Undelivered Pool Aircraft, in accordance with the terms hereof, the Obligors shall update the
Designated Pool to ensure each Undelivered Pool Aircraft set forth on Schedule 3.17(a) shall
constitute an Aircraft for which the Obligors have a good faith intention and, to ILFC’s knowledge,
ability to transfer to an Owner Subsidiary prior to the first anniversary of the Effective Date.
The Obligors will use reasonable commercial efforts to cause each Undelivered Aircraft to become a
Pool Aircraft prior to the first anniversary of the Effective Date.

     (b) Addition of Non-Pool Aircraft to the Designated Pool. The Borrower may add any Aircraft
to the Designated Pool at any time upon notice to the Administrative Agent (who shall promptly
deliver such notice to the Lenders); provided that:

     (i) if such Aircraft is to be a Pool Aircraft, such Aircraft is Owned by an Owner
Subsidiary at the time such Aircraft becomes a Pool Aircraft and such Owner Subsidiary has
good and marketable legal title to such Pool Aircraft, free and clear of Liens other than
Permitted Liens;

     (ii) (A) the Borrower shall have provided three Appraisals of such Aircraft from
Qualified Appraisers, each as of a date within 20 days of the date such Aircraft is added
to the Designated Pool, (B) the Borrower shall have provided to the Administrative
Agent

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(who shall promptly deliver such information to the Lenders) an updated table
describing the Designated Pool (after giving pro forma effect to such addition) in the form
set forth in Part C of Annex V to the form of LTV Certificate in Exhibit I, (C) if such
Aircraft is to be a Pool Aircraft, after giving pro forma effect to such addition, the
Borrower shall be in compliance with Section 5.16(a), and (D) if such Aircraft is to be an
Undelivered Pool Aircraft, after giving pro forma effect to such addition prior to the first
anniversary of the date hereof, the Pool Specifications shall be satisfied;

     (iii) in respect of Pool Aircraft, the relevant Owner Subsidiary shall be (or shall be
in the process of becoming in due course), as and to the extent permitted in the country of
registration of such Pool Aircraft, registered as the owner and a lessor with respect to
such Pool Aircraft if applicable under the law of such country of registration and such
Owner Subsidiary has made the Required Cape Town Registrations;

     (iv) in respect of Pool Aircraft, the relevant Borrower Parties shall have executed and
delivered to the Administrative Agent and the Collateral Agent a Grantor Supplement and/or
Collateral Supplement (as applicable) and such certificates, opinions and documents
(including UCC Financing Statements, charge documents and registrations and recordings with
the FAA (if applicable) and the International Registry) as are required to grant to the
Collateral Agent, for the benefit of the Secured Parties, a perfected security interest in,
and Lien on, the Collateral related to the relevant Pool Aircraft and each relevant Owner
Subsidiary (in each case, to the extent of the Express Perfection Requirements);

     (v) each relevant Owner Subsidiary that Owns such Pool Aircraft shall have executed and
delivered to the Administrative Agent an Obligor Assumption Agreement; and

     (vi) no Default or Event of Default shall result from such addition.

     (c) Intermediate Lessees. In connection with (i) the replacement of any Lease of any Pool
Aircraft, (ii) the addition of Non-Pool Aircraft to the Designated Pool, (iii) any Requirement of
Law or (iv) a request by a Lessee, the Owner Subsidiary or Intermediate Lessee shall be entitled,
by giving notice to the Administrative Agent, to enter into one or more Intermediate Leases with
one or more Intermediate Lessees with respect to such Pool Aircraft or to hold, directly or
indirectly, 100% of the Equity Interests in another Intermediate Lessee; provided that:

     (i) such Intermediate Lessee that is a lessor shall have executed and delivered to the
Administrative Agent and the Collateral Agent such certificates, opinions and documents
(including registrations and recordings with the FAA (if applicable), the International
Registry and/or any Applicable Foreign Aviation Law) as are required to evidence such
Intermediate Lessee as the lessor of such Pool Aircraft;

     (ii) such Intermediate Lessee that is a lessor shall be (or shall be in the process of
becoming in due course), as and to the extent permitted in the country of registration of
such Pool Aircraft, registered as a lessor with respect to such Pool Aircraft and an
Owner

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Subsidiary shall be, as and to the extent permitted in the country of registration of
such Pool Aircraft, or shall be in the process of becoming in due course, registered as the
owner with respect to such Pool Aircraft and such Owner Subsidiary has made the Required
Cape Town Registrations, if applicable;

     (iii) the relevant Borrower Parties shall have executed and delivered to the
Administrative Agent and the Collateral Agent a Grantor Supplement and/or Collateral
Supplement (as applicable) and such certificates, opinions and documents (including UCC
Financing Statements and charge documents) as are required to grant to the Collateral Agent,
for the benefit of the Secured Parties, a perfected security interest in, and Lien on, the
Collateral related to the relevant Pool Aircraft and Intermediate Lessee (to the extent
required under the Express Perfection Requirements); and

     (iv) such Intermediate Lessee shall have executed and delivered to the Administrative
Agent an Obligor Assumption Agreement.

     (d) Termination of Intermediate Lessee’s Status. The relevant Subsidiary Holdco may from time
to time, upon not less than five Business Days’ revocable prior written notice from such Subsidiary
Holdco to the Administrative Agent, at any time and from time to time assign the Equity Interests
in an Intermediate Lessee to any Person or otherwise terminate an Intermediate Lessee’s status as
such, provided that such Intermediate Lessee is not party to an Intermediate Lease or a
Lease or will not be at the time such transfer or other termination of such Intermediate Lessee’s
status as such takes effect. If an Intermediate Lessee’s status is terminated as such, the
Collateral Agent’s security interests in and Liens on, the assets of such Intermediate Lessee, and
the obligations of such Intermediate Lessee in respect of Guaranteed Obligations or other
obligations under the Loan Documents shall be automatically released. The Collateral Agent shall
promptly execute and deliver to the Borrower, at Borrower’s expense, all documents that Borrower
shall reasonably request to evidence the release of the security interests in and Liens on the
applicable assets, and the release of the Guaranteed Obligations and other obligations under the
Loan Documents, released in accordance with the previous sentence.

     (e) Inter-Obligor Transfers. Any Obligor shall be entitled, by giving notice to the
Administrative Agent (who shall promptly deliver such notice to the Lenders), to permit a Pool
Aircraft to be Owned by an Owner Subsidiary or leased by an Intermediate Lessee (including by
transferring such Ownership from one Owner Subsidiary to another or by transferring such Lease from
one Intermediate Lessee to another or interposing additional Intermediate Lessees);
provided, that:

     (i) each relevant Borrower Party shall have executed and delivered to the Collateral
Agent a Grantor Supplement and/or a Collateral Supplement (as applicable) and such
certificates, opinions and documents (including UCC financing statements, registrations and
recordings with the FAA (if applicable) and the International Registry) as are required to
grant to the Collateral Agent a perfected security interest in, and Lien on, the Collateral
held by such Owner Subsidiary or Intermediate Lessee (it being understood and agreed that
only the Express Perfection Requirements shall be required to be satisfied);

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     (ii) each relevant Borrower Party shall be (or shall be in the process of becoming in
due course), as and to the extent permitted in the country of registration of such Pool
Aircraft, registered as an owner and/or lessor with respect to such Pool Aircraft subject to
the Local Requirements Exception and such relevant Borrower Parties have made the Required
Cape Town Registrations, if applicable;

     (iii) subject to the Local Requirements Exception, a Subsidiary Holdco or an Owner
Subsidiary shall Own all of the Equity Interests in such Owner Subsidiary or Intermediate
Lessee and shall have executed and delivered to the Collateral Agent (1) a Collateral
Supplement, (2) if applicable, the original beneficial interest certificate evidencing such
Obligor’s beneficial interest in the Owner Subsidiary or Intermediate Lessee and (3) such
certificates, opinions and documents (including UCC Financing Statements and charge
documents) as are required by the Express Perfection Requirements to grant to the Collateral
Agent a perfected security interest in, and Lien on, the Equity Interests held by such
Obligor in such Owner Subsidiary or Intermediate Lessee; and

     (iv) each such Owner Subsidiary and Intermediate Lessee shall have executed and
delivered to the Administrative Agent an Obligor Assumption Agreement.

     (f) Requirements Following Additions to Designated Pool. In the event that a Lease in respect
of a PS Pool Aircraft did not or was in good faith believed not to constitute an International
Interest when entered into but such Lease either was or has since become an International Interest
such that at the time such PS Pool Aircraft becomes a Pool Aircraft or at any time thereafter such
Lease is an International Interest, or such Lease was an International Interest when entered into
but because of administrative difficulties with the Lessee thereunder or, if applicable, the
designated entry point, or became an International Interest any time thereafter, it was impractical
to effect registration thereof on the International Registry, the Required Cape Town Registrations
with respect to such International Interest in such Lease shall be made as promptly as practical
after such Aircraft becomes a Pool Aircraft or, if later, when such Lease becomes an International
Interest, but in any event no later than 120 days after such date such Aircraft becomes a Pool
Aircraft or, if later, when such Lease becomes and International Interest, including with respect
to Aircraft that are Pool Aircraft on the Effective Date. Otherwise, Required Cape Town
Registrations with respect to International Interests in Leases to which a PS Pool Aircraft is
subject shall be made as promptly as practicable after such Aircraft becomes a Pool Aircraft but in
any event within 7 days after such PS Pool Aircraft becomes a Pool Aircraft.

     (g) Release of Cash Collateral. Any Account Collateral consisting of Interim Cash held by the
Collateral Agent shall be released in accordance with Section 5.16(c). Any Account Collateral
consisting of insurance proceeds held by the Collateral Agent shall be released as described in
Schedule V of the Security Agreement.

     (h) Termination of Owner Subsidiary’s Status. A Borrower Party may at any time and from time
to time, upon not less than five Business Days’ revocable prior written notice from the Borrower to
the Collateral Agent, assign or otherwise transfer the Equity Interests in an Owner Subsidiary to
any Person that is not a Subsidiary of the Borrower or otherwise terminate an

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Owner Subsidiary’s status as such, provided that such Owner Subsidiary (i) does not, or will
not at the time such transfer or other termination of such Owner Subsidiary’s status as such takes
effect, Own (nor hold the Equity Interests in an Owner Subsidiary that Owns) any Pool Aircraft and
(ii) is not, or will not be at the time such transfer or other termination of such Intermediate
Lessee’s status as such takes effect, a party to (nor hold the Equity Interests in any Intermediate
Lessee that is a party to) any Lease or Intermediate Lease. If an Owner Subsidiary’s status is
terminated as such, the Collateral Agent’s security interests in, and Liens on, the assets of and
the Equity Interest in such Owner Subsidiary, and such Owner Subsidiary’s liability for Guaranteed
Obligations or other obligations under the Loan Documents, shall be automatically released. The
Collateral Agent shall promptly execute and deliver to the Borrower, at the Borrower’s expense, all
documents that the Borrower shall reasonably request to evidence its release of the security
interests in and Liens on the applicable assets, and the release of the Guaranteed Obligations and
other obligations under the Loan Documents, released in accordance with the previous sentence.

     (i) Specified Representation Deficiency. Notwithstanding anything to the contrary herein, the
status of any direct Subsidiary of a Subsidiary Holdco as an Owner Subsidiary or an Intermediate
Lessee shall terminate, for purposes of the calculation of the Loan-to-Value Ratio only (until the
Specified Representation Deficiency with respect to such Subsidiary no longer exists or the status
of such Subsidiary as an Owner Subsidiary or an Intermediate Lessee is terminated as such for all
purposes in accordance with this Agreement), on the date the notice referenced below has been given
or was required to have been given, such Subsidiary Holdco and such Subsidiary are not able to make
any of the representations set forth below with respect to such Subsidiary at such time and any
Pool Aircraft leased by it shall immediately be deemed to have an Appraised Value of $0.00 (the
occurrence of such situation with respect to such Subsidiary, a “Specified Representation
Deficiency”) (provided that, for purposes of clarification, no Specified Representation
Deficiency shall result in a Default or Event of Default except pursuant to Section 5.16(d) or (f)
and further agreed that none of the following clauses below shall be applicable in respect of items
relating to the Security Documents or the Collateral to the extent not required under the Express
Perfection Requirements):

     (i) Such Subsidiary is subject to civil and commercial laws with respect to its
Obligations under this Agreement and the other Loan Documents to which it is a party
(collectively as to such Subsidiary, the “Applicable Subsidiary Documents”), and the
execution, delivery and performance by such Subsidiary of the Applicable Subsidiary
Documents constitute and will constitute private and commercial acts and not public or
governmental acts. Neither such Subsidiary nor any of its property has any immunity from
jurisdiction of any court or from any legal process (whether through service or notice,
attachment prior to judgment, attachment in aid of execution, execution or otherwise) under
the laws of the jurisdiction in which such Subsidiary is organized and existing in respect
of its obligations under the Applicable Subsidiary Documents.

     (ii) The Applicable Subsidiary Documents are in proper legal form under the laws of the
jurisdiction in which such Subsidiary is organized and existing for the enforcement thereof
against such Subsidiary under the laws of such jurisdiction, and to ensure the legality,
validity, enforceability, priority or admissibility in evidence of the Applicable Subsidiary
Documents.

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     (iii) It is not necessary to ensure the legality, validity, enforceability, priority or
admissibility in evidence of the Applicable Subsidiary Documents that the Applicable
Subsidiary Documents be filed, registered or recorded with, or executed or notarized before,
any court or other authority in the jurisdiction in which such Subsidiary is organized and
existing or that any registration charge or stamp or similar tax be paid at such time on or
in respect of the Applicable Subsidiary Documents or any other document, except for (1) any
such filing, registration, recording, execution or notarization as has been made and (2) any
charge or tax as has been timely paid.

     (iv) There is no tax, levy, impost, duty, fee, assessment or other governmental charge,
or any deduction or withholding, imposed by any Governmental Authority in or of the
Subsidiary’s jurisdiction of organization or Tax residence or in which the Subsidiary has an
office either (A) on or by virtue of the execution or delivery of the Applicable Subsidiary
Documents or (B) on any payment to be made at such time by such Subsidiary pursuant to the
Applicable Subsidiary Documents, except (i) for Excluded Taxes described in clause (c), (d)
or (e) of the definition of such term or (ii) as has been disclosed to the Administrative
Agent and is not material (as determined by the Administrative Agent acting reasonably) or
(iii) in the case of clause (A), as have been paid.

     (v) The execution, delivery and performance of the Applicable Subsidiary Documents
executed by such Subsidiary are, under applicable foreign exchange control regulations of
the jurisdiction in which such Subsidiary is organized and existing, not subject to any
notification or authorization at such time except (A) such as have been made or obtained or
(B) such as cannot be made or obtained until a later date (provided that any
notification or authorization described in clause (B) shall be made or obtained as soon as
is reasonably practicable).

     The Borrower or the relevant Subsidiary Holdco agrees to give prompt notice (not to exceed
five (5) Business Days) to the Administrative Agent after it obtains knowledge of any Specified
Representation Deficiency and, upon such notice, will provide a LTV Certificate as of the date of
such notice giving pro forma effect to removal of such Subsidiary as an Obligor.

     (j) Release of Subsidiary Holdco. A Subsidiary Holdco will be released from its obligations
under the Loan Documents if (i) the Borrower shall have provided at least twenty (20) days’
revocable prior written notice to the Administrative Agent (who shall promptly deliver such notice
to the Lenders) prior to any such proposed release, identifying the relevant Subsidiary Holdco to
be released, (ii) such Subsidiary Holdco shall not hold directly or indirectly any of the Equity
Interests in any Owner Subsidiary nor any Intermediate Lessee and (iii) after giving pro forma
effect to such release of such Subsidiary Holdco, the Borrower shall be in compliance with Section
5.16(a). Upon satisfaction of the conditions set forth in the preceding sentence with respect to
any Subsidiary Holdco, (x) the Collateral Agent’s security interest in, and Lien on, any equity
interest in any Person held by such Subsidiary Holdco shall be released and (y) such Subsidiary
Holdco shall be released from its obligations under the Loan Documents. The Collateral Agent shall
promptly execute and deliver to the relevant Subsidiary Holdco, at the Borrower’s expense, all
documents that such Subsidiary Holdco shall reasonably request to evidence its release of the
security interests in, and Liens on, any equity interests held

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by such Subsidiary Holdco and the release of such Subsidiary Holdco from its obligations under
the Loan Documents.

     (k) Addition of Incremental Lender. If an Incremental Lender becomes a Lender pursuant to
Section 2.01(c), the PS Pool Aircraft as of the applicable Incremental Effective Date shall consist
of the PS Pool Aircraft immediately prior to such Incremental Effective Date, plus the Aircraft set
forth on Exhibit M.

     Section 2.11. Defaulting Lenders. (a) Adjustments. Notwithstanding anything to the
contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such
time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

     (i) Waivers and Amendments. That Defaulting Lender’s right to approve or
disapprove any amendment, waiver or consent with respect to this Agreement shall be
restricted as set forth in Section 9.02 and the Defaulting Lender shall have no right to
payment of any Fees or expenses or payments under Sections 2.08, 2.09 or 9.03 or to transfer
its Loans or participate on interest therein without the Borrower’s consent.

     (ii) Reallocation of Payments. Any payment of principal, interest, fees or
other amounts received by the Administrative Agent for the account of that Defaulting Lender
(whether voluntary or mandatory, at maturity, pursuant to Article VI or otherwise), shall be
applied at such time or times as may be determined by the Administrative Agent as follows:
first, to the payment of any amounts owing by that Defaulting Lender to the Administrative
Agent hereunder; second, as the Borrower may request (so long as no Event of Default shall
have occurred and be continuing), to the funding of the Loans in respect of which that
Defaulting Lender has failed to fund its portion thereof as required by this Agreements, as
determined by the Administrative Agent; third, if so determined by the Administrative Agent
and the Borrower, to be held in a non-interest bearing deposit account and released in order
to satisfy obligations of that Defaulting Lender to fund its Loans; fourth, to the payment
of any amounts owing to the Lenders as a result of any judgment of a court of competent
jurisdiction obtained by any Lender against that Defaulting Lender as a result of that
Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no
Event of Default shall have occurred and be continuing, to the payment of any amounts owing
to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by
the Borrower against that Defaulting Lender as a result of that Defaulting Lender’s breach
of its obligations under this Agreement; and sixth, to that Defaulting Lender or as
otherwise directed by a court of competent jurisdiction; provided that if (x) such
payment is a payment of the principal amount of any Loans in respect of which that
Defaulting Lender has not fully funded its appropriate share and (y) such Loans were made at
a time when the conditions set forth in Article 4 were satisfied or waived, such payment
shall be applied solely to pay the Loans of all non-Defaulting Lenders on a pro rata basis
prior to being applied to the payment of any Loans of that Defaulting Lender. Any payments,
prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or
held) to pay amounts owed by a Defaulting Lender shall be deemed paid to and redirected
by that Defaulting Lender, and each Lender irrevocably consents hereto.

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     (b) Defaulting Lender Cure. If the Borrower and the Administrative Agent agree in
writing (such agreement not to be unreasonably withheld) that a Defaulting Lender should no longer
be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto,
whereupon as of the effective date specified in such notice and subject to any conditions set forth
therein, that Lender will, to the extent applicable, take such actions as the Administrative Agent
may determine to be necessary to cause the Loans to be held on a pro rata basis by the Lenders in
accordance with their Applicable Percentages, whereupon that Lender will cease to be a Defaulting
Lender; provided that no adjustments will be made retroactively or with duplication with
respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a
Defaulting Lender; and provided further that, except to the extent otherwise
expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will
constitute a waiver or release of any claim of any party hereunder arising from that Lender’s
having been a Defaulting Lender.

ARTICLE 3

Representations and Warranties

     The Borrower and each other Obligor represents to the Lender Parties on the Effective Date
(and, in the case of an Advance Date, with respect to any of the below representations or
warranties relating to any Obligor that on such Advance Date is also a Relevant Advance Party, on
such Advance Date) that:

     Section 3.01. Organization, etc. Each Obligor is a Person duly organized, validly existing
and, if applicable, in good standing under the laws of the jurisdiction of such Obligor’s
organization; and such Obligor has the power and authority to own its property and to carry on its
business as now being conducted and is duly qualified and, if applicable, in good standing as a
foreign corporation or other entity authorized to do business in each jurisdiction where, because
of the nature of its activities or properties, such qualification is required, except where the
failure to be so qualified or in good standing could not reasonably be expected to have a Material
Adverse Effect.

     Section 3.02. Authorization; Consents; No Conflict. The execution and delivery by such
Obligor of any Loan Document to which it is a party and the performance of its obligations
thereunder and the consummation of the transactions contemplated thereby (a) are within its
organizational powers, (b) have been duly authorized by all necessary corporate action, (c) have
received all necessary approvals, authorizations, consents, registrations, notices, exemptions and
licenses (if any shall be required) from Governmental Authorities and other Persons, except such
approvals, authorizations, consents, registrations, notices, exemptions or licenses non-receipt of
which could not reasonably be expected to have a Material Adverse Effect, (d) do not and will not
contravene, constitute a default under or conflict with any provision of (i) Law, (ii) any
judgment, decree or order to
which any Obligor is a party or by which it is bound, (iii) any Obligor’s Operating Documents
or Organizational Documents or (iv) any provision of any agreement or instrument binding on any
Obligor, or any agreement or instrument of which such Obligor is aware affecting the properties of
such Obligor, except with respect to (d)(i), (ii) and (iv) above, for any such contravention or
conflict which could not reasonably be expected to

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have a Material Adverse Effect and (e) do not
and will not result in or require the creation or imposition of any Adverse Claim on any of such
Obligor’s properties, other than the Security Documents. Each of the Loan Documents to which such
Obligor is a party has been duly authorized, executed and delivered by such Obligor.

     Section 3.03. Validity and Binding Nature. This Agreement and the other Loan Documents to
which such Obligor is a party constitute (or will constitute when duly executed and delivered)
legal, valid and binding obligations of such Obligor, enforceable against such Obligor in
accordance with their respective terms, subject to bankruptcy, insolvency, examinership, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles.

     Section 3.04. Financial Statements. ILFC’s audited consolidated financial statements as at
December 31, 2010, copies of which have been furnished to each Lender, have been prepared in
accordance with GAAP and fairly present the financial condition of ILFC and its Subsidiaries as at
such date and the results of their operations for the period then ended.

     Section 3.05. Litigation and Contingent Liabilities. All Litigation Actions, taken as a
whole, could not reasonably be expected to have a Material Adverse Effect. Other than any
liability incident to such Litigation Actions or provided for or disclosed in the financial
statements referred to in Section 3.04, and other than as set forth in ILFC’s filings with the
Securities and Exchange Commission, no Obligor has any contingent liabilities which are material to
its business, credit, operations or financial condition of the Obligors taken as a whole.

     Section 3.06. Security Interest.

     (a) The Security Agreement creates a valid and (upon the taking of the actions required hereby
or thereby) perfected security interest in favor of the Collateral Agent in the Collateral as
security for the Secured Obligations, subject in priority to no other Liens (other than Permitted
Liens), and all filings and other actions necessary to perfect and protect such security interest
under the laws of the United States, Ireland and each Other Relevant Jurisdiction have been (or in
the case of future Collateral will be) duly taken, enforceable against the applicable Borrower
Parties and creditors of and purchasers from such Borrower Parties, except in each case to the
extent not required under the Express Perfection Requirements. Subject to the Local Requirements
Exception, the relevant Owner Subsidiary has good and
marketable legal title to its respective Pool Aircraft, free and clear of Liens other than
Permitted Liens.

     (b) None of the Collateral has been sold or is currently pledged, assigned or otherwise
encumbered other than pursuant to the terms hereof or of the Security Documents and except for
Permitted Liens, no Collateral is described in (i) any UCC financing statements filed against any
Obligor other than UCC financing statements which have been terminated (or agreed to be terminated
by the secured parties referenced therein) and the UCC financing statements filed in connection
with Permitted Liens or (ii) any other mortgage registries, including the International Registry,
or filing records that may be applicable to the Collateral in any other relevant jurisdiction,
other than such filings or registrations that have been terminated (or agreed to be terminated by
the secured parties referenced therein) or that have been made in connection with

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Permitted Liens,
the Security Agreement or any other Security Document in favor of the Collateral Agent, for the
benefit of the Secured Parties, or, with respect to the Leases, in favor of the Borrower Parties or
the Lessee thereunder.

     (c) The rights and obligations of each Owner Subsidiary and each Intermediate Lessee (as
lessor, as applicable) under the Leases to which it is a party with respect to the Pool Aircraft
are held free and clear of any Adverse Claim other than Permitted Liens.

     Section 3.07. Employee Benefit Plans. Each employee benefit plan (as defined in Section 3(3)
of ERISA) maintained or sponsored by ILFC or any Subsidiary complies in all material respects with
all applicable requirements of law and regulations. During the 12-consecutive-month period prior
to the execution and delivery of this Agreement, no ERISA Event has occurred, except in any such
case for events which individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect. Neither ILFC nor any ERISA Affiliate is a member of, or contributes to,
any Multiemployer Plan as to which the potential Withdrawal Liability based upon the most recent
actuarial report could reasonably be expected to have a Material Adverse Effect. Neither ILFC nor
any Subsidiary has any material contingent liability with respect to any post retirement benefit
under an employee welfare benefit plan (as defined in section 3(i) of ERISA), other than liability
for continuation coverage described in Part 6 of Title I of ERISA.

     Section 3.08. Investment Company Act. No Obligor is a “registered investment company” or a
company “controlled” by a “registered investment company” or a “principal underwriter” of a
“registered investment company”, within the meaning of the Investment Company Act of 1940, as
amended. No Obligor is subject to regulation under the Federal Power Act or the Investment Company
Act of 1940 or under any other federal or state statute or regulation which may limit its ability
to incur indebtedness or which may otherwise render all or any portion of the Obligations
unenforceable.

     Section 3.09. Regulation U. No Obligor is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U of the Federal Reserve Board). No proceeds of the Loan
will be used to
purchase or carry any margin stock or to extend credit to others for the purpose of purchasing
or carrying any margin stock.

     Section 3.10. Information. (a) All written information furnished by or on behalf of any
Obligor to any Lender Party in connection with this Agreement, any other Loan Document or the
transactions contemplated hereby or thereby, on the date furnished (and when taken in connection
with previous information so furnished, and the information contained in ILFC’s filings with the
Securities and Exchange Commission) shall have been, to the best of ILFC’s knowledge after due
inquiry, true and accurate in every material respect as of the date of such information, and none
of such information contains any material misstatement of fact or omits to state any material fact
necessary to make such information, in light of the circumstances under which it was made or
provided, not misleading, provided that to the extent any such information, report,
financial statement, exhibit or schedule was based upon or constitutes an opinion or forecast, ILFC
represents only that it acted in good faith and utilized assumptions reasonable at the time made
(based upon accounting principles consistent with the historical audited financial

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statements of
ILFC) and exercised due care in the preparation of such information, report, financial statement,
exhibit or schedule, it being understood that projections may vary from actual results and that
such variances may be material.

     (b) All information furnished by ILFC to any Lender Party on and after the date hereof shall
be, to the best of ILFC’s knowledge after due inquiry, true and accurate in every material respect
as of the date of such information, and none of such information shall (and when taken in
connection with previous information so furnished, and the information contained in ILFC’s filings
with the Securities and Exchange Commission) contain any material misstatement of fact or shall
omit to state any material fact necessary to make such information, in light of the circumstances
under which it was made or provided, not misleading, provided that to the extent any such
information, report, financial statement, exhibit or schedule was based upon or constitutes an
opinion or forecast, ILFC represents only that it acted in good faith and utilized assumptions
reasonable at the time made (based upon accounting principles consistent with the historical
audited financial statements of ILFC) and exercised due care in the preparation of such
information, report, financial statement, exhibit or schedule, it being understood that projections
may vary from actual results and that such variances may be material.

     Section 3.11. Compliance with Applicable Laws, etc. Each Obligor is in compliance with the
requirements of all applicable laws, rules, regulations and orders of all Governmental Authorities
(including ERISA) applicable to it, except for noncompliance that could not reasonably be expected
to have a Material Adverse Effect. No Obligor is in default under any agreement or instrument to
which such Obligor is a party or by which it or any of its properties or assets is bound, which
default could reasonably be expected to have a Material Adverse Effect. No Event of Default or
Default has occurred and is continuing.

     Section 3.12.
Insurance. Each Obligor maintains, or has caused to be maintained, insurance as required by the
Security Agreement.

     Section 3.13. Taxes. Each Obligor has filed all Tax returns which are required to have been
filed and has paid, or made adequate provisions for the payment of, all of its Taxes which are due
and payable, except such Taxes, if any, as are being contested in good faith and by appropriate
proceedings and as to which such reserves or other appropriate provisions as may be required by
GAAP have been established, and except where failure to files such returns or pay such Taxes,
individually or in the aggregate, cannot reasonably be expected to have a Material Adverse Effect.

     Section 3.14. Obligor Information. Schedule 3.14, as updated from time to time in writing to
the Lender Parties, accurately sets forth with respect to each Obligor (i) the location of its
chief executive office, (ii) its jurisdiction of incorporation, (iii) its entity type and (iv) its
employer or taxpayer identification number (if any) issued by its jurisdiction of incorporation.
Each Obligor only has one jurisdiction of incorporation.

     Section 3.15. Solvency. As of the Effective Date (and as also reflected on ILFC’s
consolidated balance sheet dated as of December 31, 2010, and confirmed by the Appraisals dated as
of January 1, 2011, delivered to the Administrative Agent as a condition to the occurrence of the
Effective Date), the fair value of the assets of each of (x) ILFC and (y) the

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Borrower and its
Subsidiaries taken as a whole, exceed their respective liabilities. As of the Effective Date,
neither the Obligors taken as a whole nor ILFC nor the Borrower is or will be rendered insolvent as
a result of the transactions contemplated by this Agreement and the other Loan Documents.

     Section 3.16. Sanctions. None of the Obligors, any of their Subsidiaries or any director,
officer, employee, agent, affiliate or representative of any Obligor or any of its Subsidiaries is
a Person that is, or is owned or controlled by a Person that is, (i) the subject of any sanctions
administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control
(“OFAC”), the United Nations Security Council (“UNSC”), the European Union (“EU”), the Government
of Ireland or other sanctions authority relevant in the United States, Ireland or any other
jurisdiction of incorporation or formation of any Obligor (collectively, “Sanctions”), or (ii)
located, organized or resident in a country or territory that is the subject of Sanctions (each, a
“Prohibited Country”). The Prohibited Countries as of the date hereof are listed on Annex 1.

     Section 3.17. Description of Aircraft and Leases, Etc.

     (a) Schedule 3.17(a) attached hereto, as amended from time to time pursuant to Section 2.10
and Section 5.09(a)(vii) hereof is a true and correct list of all PS Pool Aircraft and the country
of registration of such PS Pool Aircraft.

     (b) Schedule 3.17(b) attached hereto, as supplemented from time to time pursuant to Section
2.10 and Section 5.09(a)(vii), is a true and correct list of all Leases (including, without
limitation, any head leases) in effect with respect to the PS Pool Aircraft and the name and
jurisdiction of organization or incorporation of the applicable Lessees.

     Section 3.18. Ownership. ILFC or a Subsidiary thereof Owns (or has contracted to Own) each PS
Pool Aircraft. Subject to the Local Requirements Exception, an Owner Subsidiary Owns each Pool
Aircraft. Parent Holdco holds 100% of the Equity Interest in the Borrower. The Borrower holds
100% of the Equity Interest in each of CA Subsidiary Holdco and Irish Subsidiary Holdco. As of
each Advance Date, (i) a Subsidiary Holdco or an Owner Subsidiary holds 100% of the Equity
Interest, and a Subsidiary Holdco directly or indirectly holds 100% of the Equity Interest, in each
Owner Subsidiary that Owns a Related Pool Aircraft, and a Subsidiary Holdco directly or indirectly
holds 100% of the Equity Interest in each Owner Subsidiary and (ii) if applicable, a Subsidiary
Holdco or an Owner Subsidiary or Intermediate Lessee holds 100% of the Equity Interest, and a
Subsidiary Holdco directly or indirectly holds 100% of the Equity Interest, in each Intermediate
Lessee that leases a Related Pool Aircraft.

     Section 3.19. Lessee Consent. As of each Advance Date, each Lessee of each Related Pool
Aircraft has provided a consent to the extent required by the Cape Town Convention for an
assignment of an International Interest in respect of the applicable Lease to be enforceable
against such Lessee.

     Section 3.20. Use of Proceeds. The proceeds of the Loans will be used by the Borrower (a) to
pay indebtedness of ILFC or its Subsidiaries outstanding as of the Effective Date, (b) to pay
interest, fees and expenses payable on such indebtedness or payable hereunder and (c) for general
corporate purposes.

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ARTICLE 4

Conditions

     Section 4.01. Effective Date. The obligations of each Lender hereunder shall not become
effective until the date on which each of the following conditions is satisfied (or waived in
accordance with Section 9.02):

     (a) The Administrative Agent (or its counsel) shall have received from each party hereto
executed counterparts of this Agreement, including sufficient original executed counterparts for
each Lender.

     (b) The Administrative Agent (or its counsel) shall have received from each party thereto
executed counterparts of the Intercreditor Agreement.

     (c) The Collateral Agent shall have received from each party thereto executed counterparts of
the Security Agreement and the Charge Over Shares in respect of the Irish Subsidiary Holdco.

     (d) The Collateral Account shall have been established and the Administrative Agent shall have
received from the Borrower, the Securities Intermediary and the Collateral Agent executed
counterparts to the Account Control Agreement.

     (e) The Administrative Agent shall have received a favorable written opinion (addressed to
each Lender Party and dated the Effective Date) of each of Clifford Chance US LLP with respect to
New York law, in-house counsel to ILFC with respect to California law and other matters, and A&L
Goodbody with respect to Irish law, each counsel for the Obligors, in the form of Exhibit D-1A,
D-1B and D-1C (as applicable) hereto, it being understood that no Lender is obligated to sign this
Agreement if such forms are not acceptable to it. The Obligors hereby request such counsel to
deliver such opinions.

     (f) The Collateral Agent shall have received UCC Financing Statements from each of the Parent
Holdco, the Borrower and each Subsidiary Holdco, naming such Borrower Party as debtor, naming the
Collateral Agent (for the benefit of the Secured Parties) as secured party and describing the
applicable Collateral (such UCC Financing Statements to be reasonably satisfactory to the
Collateral Agent).

     (g) The Administrative Agent shall have received such documents and certificates as it or its
counsel may reasonably request relating to the organization, existence and, if applicable, good
standing of each Obligor, the authorization of the transactions contemplated by the Loan Documents
and any other legal matters relating to the Obligors, the Loan Documents, the Collateral or the
transactions contemplated hereby or thereby, all in form and substance reasonably satisfactory to
the Administrative Agent and its counsel.

     (h) The Administrative Agent shall have received such documents and certificates as it or its
counsel may reasonably request relating to the organization, existence and, if applicable, good
standing of the Securities Intermediary, the authorization of the transactions contemplated by the
Account Control Agreement and any other legal matters relating to the Securities

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Intermediary in
connection with the Loan Documents or the transactions contemplated hereby or thereby, all in form
and substance reasonably satisfactory to it and its counsel.

     (i) The Administrative Agent shall have received a certificate, dated the Effective Date and
signed by the President, a Vice President or a Financial Officer of ILFC, confirming compliance
with the conditions set forth in clauses (m) and (n) of this Section 4.01.

     (j) The Borrower shall have paid all fees and other amounts due and payable to the Lender
Parties or other Person in connection with the transactions contemplated under the Loan Documents
on or before the Effective Date, including, without duplication, (i) any amounts due under any Fee
Letter to any Person and (ii) all other fees and other amounts due and payable to
any other Person pursuant to any other agreement related to the transactions contemplated in
the Loan Documents to the extent invoiced in reasonable detail.

     (k) The Administrative Agent and the Collateral Agent shall have received the results of a
Lien, tax and judgment search in the jurisdiction of organization of each relevant Borrower Party
to the extent available therein that is not more than one month old, revealing no Liens on any of
the assets of any Borrower Party or the Collateral (other than Permitted Liens).

     (l) All consents and approvals required to be obtained by the Borrower, ILFC, or any other
Obligor from any Governmental Authority or other Person in connection with the transactions
contemplated by the Loan Documents dated as of a date on or prior to the Effective Date shall have
been obtained, and all applicable waiting periods and appeal periods shall have expired, in each
case without the imposition of any burdensome condition.

     (m) The representations and warranties of the Obligors contained in Article 3 of this
Agreement and contained in each other Loan Document dated as of a date on or prior to the Effective
Date shall be true and correct on and as of the Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they shall be
true and correct as of such earlier date.

     (n) As of the Effective Date, no Default or Event of Default shall have occurred and be
continuing.

     (o) The Administrative Agent shall have received three Appraisals of each PS Pool Aircraft and
each Incremental Aircraft in form and substance reasonably satisfactory to it. Each such Appraisal
shall have been conducted by a Qualified Appraiser prior to the Effective Date.

     (p) The Administrative Agent shall have received evidence reasonably satisfactory to it that,
subject to the Local Requirements Exception, each of the PS Pool Aircraft and Incremental Aircraft
is Owned (or is contracted to be Owned) by ILFC or an Affiliate of ILFC as of the Effective Date.

     (q) The Administrative Agent shall have received evidence reasonably satisfactory to it that
ILFC and each Borrower Party has received all waivers and/or amendments to its existing indentures,
agreements, mortgage, deeds of trust and other instruments to which it is a party,

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necessary to
allow it to undertake the transactions contemplated by the Loan Documents dated as of a date on or
prior to the Effective Date.

     (r) The Administrative Agent shall have received from each Obligor such charges, consents, UCC
Financing Statements and amendments and other similar instruments, agreements, certificates,
documents and opinions of counsel as the Administrative Agent may reasonably request, together with
evidence to the Administrative Agent’s reasonable satisfaction that all necessary actions have been
taken, in order to grant the Collateral Agent, for the benefit of the Secured Parties, a
first-priority security interest in, and Lien on, the Collateral to the extent required under the
Express Perfection Requirements.

     (s) The Collateral Agent, for the benefit of the Secured Parties, shall have a first priority
perfected security interest in the Collateral to the extent required under the Express Perfection
Requirements.

     (t) Each Lender who requests a Note (or the Administrative Agent, on behalf of each such
Lender) shall have received a signed original of a Note with respect to its Loan, duly executed by
the Borrower.

     (u) At least 10 days prior to the Effective Date, the Lenders shall have received all
documentation and other information required by bank regulatory authorities under applicable
“know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act.

Promptly after the Effective Date occurs, the Administrative Agent shall notify each other Lender
Party and each Borrower Party thereof, and such notice shall be conclusive and binding.

     Without limiting the generality of the provisions of the last paragraph of Section 8.03, for
purposes of determining compliance with the conditions specified in this Section 4.01, each Lender
that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Effective Date specifying its objection thereto.

     Section 4.02. Advance Date. The obligations of each Lender to make Loans on an Advance Date in the
applicable amount provided for in Sections 2.02 and 2.03 pursuant to an Advance Request hereunder
shall not become effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 9.02):

     (a) The Collateral Agent and the Administrative Agent shall have received a duly executed and
completed Advance Request.

     (b) On the relevant Advance Date, after giving effect to the Loans requested in the Advance
Request, the Borrower shall be in compliance with the Loan-to-Value Ratio.

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     (c) The Collateral Agent shall have received the following documents or instruments: (i) each
Subsidiary Holdco or Owner Subsidiary pledging the Equity Collateral in an Owner Subsidiary that
Owns a Related Pool Aircraft for such Advance Date shall have executed and delivered a Grantor
Supplement or a Collateral Supplement in respect of such Equity Collateral and, if relevant, an
Additional Charge Over Shares in respect of such Equity Collateral, (ii) if applicable, each
Subsidiary Holdco or Owner Subsidiary pledging the Equity Collateral in any Intermediate Lessee
that leases a Related Pool Aircraft for such Advance Date shall have executed and delivered a
Grantor Supplement or a Collateral Supplement in respect of such Equity Collateral and, if
relevant, an Additional Charge Over Shares in respect of such Equity Collateral and (iii)
confirmation with respect to the state of registration and the International Registry, respectively
that (x) to the extent applicable in such jurisdiction (including after giving
effect to the Local Requirements Exception), such Owner Subsidiary is (or is in the process of
becoming in due course) registered in the jurisdiction of registration of the Related Pool Aircraft
as the owner and lessor (or, if there is an Intermediate Lessee in respect of such Pool Aircraft,
the Intermediate Lessee as lessor) of such Pool Aircraft, as and to the extent may be customary in
such jurisdiction, (y) the Required Cape Town Registrations have been or will promptly thereafter
be made and (z) if relevant, any required filings with the FAA have been or will promptly
thereafter be made.

     (d) The Administrative Agent shall have received a favorable written opinion (addressed to
each Lender Party and dated such Advance Date) of each of (i) White & Case LLP with respect to New
York law, in-house counsel to the Relevant Advance Parties with respect to California law and other
matters, and A&L Goodbody with respect to Irish law, each counsel for the Obligors, in the form of
Exhibit E-1A, E-1B and E-1C (as applicable) hereto, (ii) Daugherty, Fowler, Peregrin, Haught &
Jenson, A Professional Corporation, special counsel to the Relevant Advance Parties in respect of
Cape Town and FAA matters, in the form of Exhibit E-2 and (iii) counsel to the Relevant Advance
Parties in each jurisdiction of organization of such Relevant Advance Party other than the United
States or Ireland, if any, with respect to the laws of such jurisdiction, in form and substance
reasonably satisfactory to the Administrative Agent. The Obligors request such counsel to deliver
such opinions.

     (e) The Collateral Agent shall have received UCC Financing Statements from each Relevant
Advance Party, naming such Relevant Advance Party as debtor, naming the Collateral Agent (for the
benefit of the Secured Parties) as secured party and describing the applicable Collateral (such UCC
Financing Statements to be reasonably satisfactory to the Administrative Agent).

     (f) The Administrative Agent shall have received such documents and certificates relating to
the organization, existence and, if applicable, good standing of the Relevant Advance Parties, the
authorization of the transactions contemplated by the applicable Loan Documents relating to each of
the Relevant Advance Parties, the applicable Loan Documents, the applicable Collateral or the
transactions contemplated hereby or thereby, all in form and substance reasonably satisfactory to
the Administrative Agent and their counsel, including, Organizational Documents, Operating
Documents, resolutions and incumbency certificates.

     (g) The Administrative Agent shall have received (i) a certificate, dated as of the applicable
Advance Date and signed by the President, a Vice President or a Financial Officer of

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ILFC,
confirming (x) compliance with the conditions set forth in clauses (j) and (k) of this Section 4.02
and (y) that each of the Related Pool Aircraft is (or is in the process of becoming in due course)
registered in the country of registration of such Pool Aircraft in the name of the relevant Owner
Subsidiary as the owner and lessor (or, if there is an Intermediate Lessee in respect of such Pool
Aircraft, the Intermediate Lessee as lessor) of such Related Pool Aircraft to the extent customary
and applicable in such country (including after giving effect to the Local Requirements Exception)
and, to his or her knowledge, there are no Liens of record in such country in respect of such
Related Pool Aircraft (other than Permitted Liens) and (ii) a certificate addressing the matters
referred to in clause (d) of the definition of Express Perfection Requirements.

     (h) The Borrower shall have paid all fees and other amounts due and payable to the
Administrative Agent and the Collateral Agent in connection with the transactions contemplated
under the Loan Documents on or before the relevant Advance Date, including all fees, expenses and
other amounts (including the reasonable fees and expenses of legal counsel) due and payable to any
other Person pursuant to any other agreement related to the Advance Date and the transactions
contemplated thereby.

     (i) The Administrative Agent and the Collateral Agent shall have received the results of a
Lien, tax and judgment search, to the extent available, that is not more than two months old, in
each jurisdiction in which each relevant Owner Subsidiary and Intermediate Lessee is organized,
each jurisdiction in which each Related Pool Aircraft identified in the relevant Advance Request is
registered, and the International Registry with respect to each Relevant Advance Party and the
relevant Collateral, revealing no Liens on any of the assets of any Relevant Advance Party, any
relevant Pool Aircraft Collateral or the relevant Collateral other than Permitted Liens.

     (j) The representations and warranties of the Obligors contained in Article 3 of this
Agreement and contained in each other Loan Document applicable to such Advance Date as provided in
Article 3 of this Agreement shall be true and correct on and as of the Advance Date, except to the
extent that such representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date.

     (k) Immediately after giving effect to the relevant Advance, no Default or Event of Default
shall have occurred and be continuing.

     (l) The Administrative Agent shall have received evidence reasonably satisfactory to it that
each of the Related Pool Aircraft is Owned by an Owner Subsidiary as of the applicable Advance
Date, including, without limitation, a warranty bill of sale (and, for any Related Pool Aircraft
registered with the FAA, an FAA bill of sale) in respect of each Related Pool Aircraft.

     (m) The Administrative Agent shall have received three initial Appraisals (to the extent such
Appraisals were not delivered to the Administrative Agent on or prior to the Effective Date or
under Section 2.10(b)) of each Related Pool Aircraft in form and substance substantially similar to
those delivered with respect to the Effective Date or otherwise reasonably satisfactory to it.

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     (n) The Collateral Agent, for the benefit of the Secured Parties, shall have a first priority
perfected security interest in the relevant Collateral (to the extent of the Express Perfection
Requirements).

     (o) The Administrative Agent shall have received insurance certificates and broker’s letters
or other evidence reasonably satisfactory to the Administrative Agent confirming that each relevant
Obligor maintains, or has caused to be maintained, insurance as required by the Security Agreement
with respect to the Related Pool Aircraft.

     (p) The Administrative Agent shall have received an Obligor Assumption Agreement duly executed
and delivered by each Owner Subsidiary and Intermediate Lessee that is a Relevant Advance Party.

     (q) The relevant Obligor shall have delivered a Lessee Notice to each Lessee of each Related
Pool Aircraft.

     On or prior to the date the Borrower delivers an Advance Request, the Borrower shall to the
extent practicable deliver or cause to be delivered to the Administrative Agent (who shall promptly
thereafter deliver to the Lenders) copies of drafts or final versions of each document required to
be delivered under Section 4.02 with respect to such Advance Date. Promptly after the Advance Date
occurs, the Administrative Agent shall notify each other Lender Party and each Borrower Party
thereof, and such notice shall be conclusive and binding. The Borrower will deliver or cause to be
delivered to the Administrative Agent (who shall promptly thereafter deliver to the Lenders) copies
of the final versions of each document required to be delivered under this Section 4.02 relating to
such Advance Date that has not been previously delivered as soon as reasonably practicable after
such Advance Date.

     Without limiting the generality of the provisions of the last paragraph of Section 8.03, for
purposes of determining compliance with the conditions specified in this Section 4.02, each Lender
that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Advance Date specifying its objection thereto.

     Section 4.03. Quiet Enjoyment Letters. Without limiting Section 8.12 of the Security
Agreement, if requested by the Borrower in respect of such Advance Date or thereafter, the
Collateral Agent shall promptly provide a letter (in the form provided to the Collateral Agent by
the Borrower) confirming it will comply with the quiet enjoyment requirements and other related
requirements specified in the letter (such requirements to be in accordance with, and as set forth
in, the relevant Lease or the Security Agreement or otherwise reasonably acceptable to the
Administrative Agent) relating to the Lease of the Aircraft that is a Pool Aircraft or that, in
connection with an Advance Date, will be a Pool Aircraft as of such Advance Date.

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ARTICLE 5

Covenants

     Until all the principal of and interest on the Loans and all fees payable hereunder have been
paid in full, each Obligor covenants and agrees with each Lender Party that:

     Section 5.01. Legal Existence and Good Standing. Except as permitted under Section 2.10 or
Section 5.17, such Obligor shall do or cause to be done all things necessary to preserve and keep
in full force and effect the corporate or trust existence and the rights (charter and statutory)
and franchises of each Obligor; provided, however, that no Obligor will be required
to preserve any such right or franchise if it shall determine that the preservation thereof is no
longer desirable in the conduct of the business of
such Obligor and that the loss thereof is not disadvantageous in any material respect to the
Lenders or the Administrative Agent.

     Section 5.02. Protection of Security Interest of the Lenders.

     (a) Except to the extent not required under the Express Perfection Requirements, the relevant
Borrower Party shall deliver to the Collateral Agent such additional supplements to the Security
Agreement, charges, consents and other similar instruments, agreements, certificates, opinions and
documents (including UCC Financing Statements and charge documents) as the Collateral Agent or the
Administrative Agent may reasonably request to effectuate the terms hereof and under and in
accordance with the Security Documents and thereby to:

     (i) (A) grant, maintain, protect and evidence security interests in favor of the
Collateral Agent, for the benefit of the Secured Parties and (B) take all actions necessary
to perfect security interests in favor of the Collateral Agent in accordance with the laws
of the United States, Ireland and any Other Relevant Jurisdiction (or any instrumentality
thereof) (including but not limited to the filing of UCC Financing Statements in the
appropriate locations, including the State of California and the District of Columbia, and
appropriate offices and registrations and recordings with the Irish Companies Registration
Office), in any or all present and future property of each Borrower Party which would
constitute Collateral under and in accordance with the terms of the Security Documents prior
to the Liens or other interests of any Person, except to the extent Permitted Liens may have
priority; and

     (ii) otherwise establish, maintain, protect and evidence the rights provided to the
Collateral Agent, for the benefit of the Secured Parties, under and in accordance with the
terms hereof and of the Security Documents including anything that may be necessary under
the laws of the United States, Ireland and any Other Relevant Jurisdiction (or any
instrumentality thereof).

     (b) No Borrower Party shall change its name, identity or corporate structure (within the
meaning of Article 9 of the UCC) unless such Borrower Party shall have given the Collateral Agent
at least thirty (30) days’ prior written notice thereof; provided that, upon the
Administrative Agent’s request in any case in which, in the Administrative Agent’s reasonable
opinion, such change of name, identity or corporate structure would or could make the Security
Agreement, the other Security Documents, any filings or registrations or any financing statement

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or
continuation statement filed pursuant to the terms hereof or any other Loan Documents misleading
within the meaning of Section 9-402(7) of the UCC or any other applicable law, such Borrower Party
shall, within 10 days of any request therefore, file such requested amendments to all previously
made filings or registrations and all previously filed financing statements and continuation
statements.

     (c) Each Borrower Party shall give the Collateral Agent at least thirty (30) days’ prior
written notice of any change of such Borrower Party’s jurisdiction of incorporation.

     (d) Each Borrower Party shall furnish to the Collateral Agent from time to time such
statements and schedules further identifying and describing the Collateral as the Collateral Agent
may reasonably request for the purposes described in Section 5.02(a), all in reasonable detail.

     Section 5.03. Ownership, Operation and Leasing of Pool Aircraft; Ownership of Borrower and
Each Subsidiary Holdco.

     (a) No Obligor shall:

     (i) other than in connection with a sale, transfer or other disposition permitted under
Section 5.04, permit any Person other than (x) a Subsidiary Holdco or an Owner Subsidiary
(except to the extent of the Local Requirements Exception or as provided in the definition
of “Own”) to own beneficially any Pool Aircraft or (y) an Owner Subsidiary (except to the
extent of the Local Requirements Exception or as provided in the definition of “Own”) to
hold title to any Pool Aircraft;

     (ii) permit any Owner Subsidiary to (x) hold legal title, the vendee’s interest under a
conditional sale agreement or the lessee’s interest under a capital lease to more than one
Pool Aircraft, or (y) hold directly or indirectly 100% of the Equity Interest in an
Intermediate Lessee that leases a Pool Aircraft other than a Pool Aircraft that such Owner
Subsidiary so directly or indirectly Owns; provided that the Person that is expected
to become an Owner Subsidiary that Owns four PS Pool Aircraft and leases such PS Pool
Aircraft to Vietnam Airlines as of the date of this Agreement shall be permitted to Own up
to all four of such Pool Aircraft so long as all of such Owned Pool Aircraft are leased to
Vietnam Airlines;

     (iii) other than in connection with a sale, transfer or other disposition permitted
under Section 5.04, permit any Person other than a Subsidiary Holdco or another Owner
Subsidiary (or in the case of an Intermediate Lessee, another Intermediate Lessee) (in each
case, except to the extent of the Local Requirements Exception) to hold any portion of the
Equity Interest in any Owner Subsidiary or any Intermediate Lessee; or

     (iv) enforce or amend, replace or waive any term of, or otherwise modify, any Lease
with respect to any Pool Aircraft in a manner other than in a manner consistent with Leasing
Company Practice;

     (b) At all times, (i) ILFC shall directly or indirectly hold 100% of the Equity Interest in
Parent Holdco, (ii) Parent Holdco shall directly hold 100% of the Equity Interests in the

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Borrower
and (iii) Borrower shall directly hold 100% of the Equity Interests in each Subsidiary Holdco.

     Section 5.04. Limitation on Disposition of Aircraft; Limitation on Disposition of Certain
Equity Collateral. Except as expressly provided in Section 2.10 or Section 5.17 or in the Security
Agreement, no Obligor shall sell, transfer or otherwise dispose of any Pool Aircraft or Owner
Subsidiary unless the requirements in Section 5.16(a) shall be satisfied after giving pro
forma effect to such sale, transfer or other disposition. Except as provided in Section 5.17,
Parent Holdco shall not sell, transfer or otherwise dispose of any of its Equity Interest in
Borrower. Except after a release of CA Subsidiary Holdco or Irish Subsidiary Holdco, as the case
may be, as expressly provided in Section 2.10(j) or as provided in Section 5.17, Borrower shall not
sell, transfer or otherwise dispose of any of its Equity Interest in CA Subsidiary Holdco or Irish
Subsidiary Holdco, respectively.

     Section 5.05. Payment of Taxes or Other Claims. Each Obligor will pay or discharge or cause
to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments and
governmental charges levied or imposed upon such Obligor or any of its Subsidiaries, and (2) all
lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien on the
Collateral that is not a Permitted Lien; provided, however, that such Obligor shall
not be required to pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim whose amount, applicability or validity is being contested in good faith by
appropriate proceedings.

     Section 5.06. Representations Regarding Operation. No Obligor shall represent or hold out, or
consent to any Lessee to represent or hold out, any Lender Party in its capacity as such as (i) the
owner or lessor of any PS Pool Aircraft, (ii) carrying goods or passengers on any PS Pool Aircraft
or (iii) being in any way responsible for any operation of carriage (whether for hire or reward or
gratuitously) with respect to any PS Pool Aircraft.

     Section 5.07. Compliance with Laws, Etc. Each Obligor shall comply in all material respects
with all Requirements of Law (including ERISA or any laws applicable to any Foreign Pension Plan),
rules, regulations and orders and (except as otherwise provided herein) preserve and maintain its
corporate rights, franchises, qualifications, and privileges except to the extent that the failure
so to comply with such laws, rules and regulations or the failure so to preserve and maintain such
rights, franchises, qualifications, and privileges is caused by a Third Party Event (and only for
so long as the applicable Obligor is complying with the requirements of the proviso to the last
paragraph of Section 5.20(a)) or would not materially adversely affect the Collateral, the
collectability of monies owed under the Leases or the ability of such Obligor to perform its
obligations under the Loan Documents.

     Without limiting the foregoing, each Obligor shall obtain all governmental (including
regulatory) registrations, certificates, licenses, permits and authorizations required to be
obtained by it in connection with the Loan Documents and for the Pool Aircraft Owned or leased by
it, including a current certificate of airworthiness for each Pool Aircraft (issued by the
applicable aviation authority and in the appropriate category for the nature of operations of such
Pool Aircraft) unless such Pool Aircraft is not subject to a Lease or is undergoing maintenance or
modification or unless the failure to obtain any such governmental registration, certificate,

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license, permit or authorization would not materially adversely affect the Collateral, the
collectability of monies owed under the Leases or the ability of such Obligor to perform its
obligations under the Loan Documents, in which case the appropriate governmental (including
regulatory) registrations, certificates, licenses, permits and authorizations shall be maintained.

     Section 5.08. Notice of Adverse Claim or Loss. ILFC shall notify the Lender Parties promptly
after a responsible officer of ILFC obtains knowledge thereof, in writing and in reasonable detail,
(i) of any Adverse Claim known to it made or asserted against any of the Collateral (other than
Permitted Liens), (ii) of the occurrence of any event which would have a material adverse effect on
the assignments and security interests granted by the Borrower Parties under any Loan Document,
(iii) of any loss, theft, damage, or destruction to any Pool Aircraft if the potential cost of
repair or replacement of such asset (without regard to any insurance claim related thereto) may
exceed the greater of the damage notification threshold under the relevant Lease and $5,000,000;
and (iv) as soon as such Obligor becomes aware of any settlement offer received by such Obligor
with respect to any claim of damage or loss in excess of $10,000,000 with respect to a Pool
Aircraft.

     Section 5.09. Reporting Requirements.

(a) ILFC shall furnish, or cause to be furnished, to the Administrative Agent:

     (i) as soon as available and in any event within 95 days after the end of each Fiscal
Year, a copy of the audited consolidated financial statements, prepared in accordance with
GAAP, for such year of ILFC and its consolidated Subsidiaries, certified by any firm of
nationally recognized independent certified public accountants;

     (ii) as soon as available and in any event within 50 days after the end of each of the
first three quarters of each Fiscal Year, with respect to ILFC and its consolidated
Subsidiaries, unaudited consolidated balance sheets as of the end of such quarter and as at
the end of the previous Fiscal Year, and consolidated statements of income for such quarter
and for the period commencing at the end of the previous Fiscal Year and ending with the end
of such quarter prepared in accordance with GAAP, certified by the officer in charge of
financial matters of ILFC identifying such balance sheets or statements as being the balance
sheets or statements of ILFC described in this paragraph (ii) and stating that the
information set forth therein fairly presents the financial condition of ILFC and its
consolidated Subsidiaries as of the last day of such quarter of such Fiscal Year in
conformity with GAAP, subject to year-end adjustments and omissions of footnotes and subject
to the auditors’ year-end report;

     (iii) concurrently with each delivery of financial statements under clause (i) or (ii)
above, a certificate of a Financial Officer of ILFC (A) certifying as to whether to his or
her knowledge an Event of Default has occurred and is continuing and, if an Event of Default
has occurred and is continuing, specifying the details thereof and any action taken or
proposed to be taken with respect thereto, and (B) stating whether any change in GAAP or in
the application thereof has occurred since the date of ILFC’s most recent audited financial
statements referred to in Section 3.04 or delivered pursuant to this

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Section and, if any such change has occurred, specifying the effect of such change on
the financial statements accompanying such certificate;

     (iv) as soon as possible and in any event within three Business Days after he or she
obtains knowledge of the occurrence and continuance of a Default or an Event of Default
(including, for the avoidance of doubt, by receipt of a notice of any default under any
Indebtedness which with the passing of time or giving of notice or otherwise could
reasonably be expected to lead to an Event of Default under Article 6(f)), a written
statement of a Financial Officer of ILFC setting forth complete details of such Default or
Event of Default, and the action, if any, which the Obligors have taken or propose to take
with respect thereto;

     (v) promptly, from time to time, subject to applicable confidentiality restrictions
(including Section 9.14) and the terms of the Leases such other information, documents,
Records or reports respecting the Pool Aircraft, the Leases, the Pool Aircraft Assets or the
condition or operations, financial or otherwise, of the Obligors or any of their
Subsidiaries which are reasonably available to it and which the Administrative Agent may,
from time to time, reasonably request;

     (vi) prompt written notice of the issuance by any court or governmental agency or
authority of any injunction, order, decision or other restraint prohibiting, or having the
effect of prohibiting, the performance of any Obligor’s obligations hereunder or under any
other Loan Document, or invalidating, or having the effect of invalidating, any provision of
this Agreement, or any other Loan Document, or the initiation of any litigation or similar
proceeding seeking any such injunction, order, decision or other restraint, in each case, of
which a responsible officer has knowledge;

     (vii) a certificate of a Financial Officer in substantially the form of Exhibit I (an
“LTV Certificate”) (A) on or prior to the Initial Test Date and each LTV Determination Date
relating to an Anniversary Date, Removal or Deemed Removal and (B) on or prior to the tenth
Business Day after each LTV Determination Date relating to a Appraisal Event (other than a
Deemed Removal); provided that with respect to an LTV Determination Date described
in this clause (B), (1) to the extent such LTV Certificate provides that an additional
Aircraft will be added to the Designated Pool to effect an LTV Cure, and to the extent the
Appraisals required to be provided for such Aircraft are not yet available, such LTV
Certificate shall describe (and apply for the purposes of the required calculations) the
Appraised Values that ILFC estimates in good faith with respect to such Aircraft, noting
therein that such Appraisals are not yet available and (2) ILFC shall, promptly after
receiving the Appraisals required to be provided for such Aircraft (and in no event later
than the addition of such Aircraft to the Designated Pool), provide to the Administrative
Agent an updated and completed LTV Certificate with respect to and dated as of the relevant
LTV Determination Date; and (c) with respect to an Event of Loss, within ten Business Days
after the Chief Financial Officer’s knowledge thereof a certificate setting forth the effect
on the Loan-to-Value-Ratio of such Event of Loss and on the LTV Cure thereof a LTV
Certificate with respect thereto; and

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     (viii) with each LTV Certificate in respect of an Anniversary Date, three Appraisals of
each Pool Aircraft from Qualified Appraisers and, at any time during the continuance of an
Event of Default, at the request of the Administrative Agent, Appraisals of the Pool
Aircraft specified in such request from Qualified Appraisers. Each Appraisal shall be
conducted (i) by a Qualified Appraiser, (ii) at the sole cost and expense of the Borrower
and (iii) and as of a date no more than thirty (30) days prior to the date such Appraisal is
furnished.

     (b) The Lender Parties are hereby authorized to deliver a copy of any such financial or other
information delivered hereunder to any other Lender Party, to any Government Authority having
jurisdiction over any such Person or any Obligor pursuant to any written request therefor or in the
ordinary course of examination of loan files, to any rating agency in connection with their
respective ratings of commercial paper issued by the Lenders or to any other Person who shall
acquire or consider the assignment of, or acquisition of any interest in, any Obligation permitted
by this Agreement; provided that such Person (not including any Government Authority or any
rating agency) agrees in writing to the confidentiality provisions set forth in Section 9.14.

     (c) Documents required to be delivered pursuant to this Section 5.09(a)(i), (ii), (iii), (v)
and, only to the extent relating to an Annual Anniversary, (vii) and (viii) (and other similar
documents that are required to be delivered pursuant to the Loan Documents that are certificates or
statements provided on scheduled dates, copies of Lease or other Collateral documents or copies of
documents provided after request by a Lender Party) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which ILFC posts such
documents on ILFC’s website on the Internet or at a website address provided to the Administrative
Agent; or (ii) on which such documents are posted on ILFC’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative Agent); provided
that: ILFC shall deliver by electronic mail paper copies of such documents to the Administrative
Agent or any Lender that requests ILFC to deliver such electronic mail paper copies.
Notwithstanding anything contained herein, in every instance ILFC shall be required to provide
paper copies of the certificates required by Section 5.09(a)(iv), (vi) and, to the extent not
relating to an Annual Anniversary, (vii) and (viii) by electronic mail to the Administrative Agent.
Except for the items in subsections (iii) and (vii) of 5.09(a), the Administrative Agent shall
have no obligation to request the delivery or to maintain copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by ILFC with any such
request for delivery, and each Lender shall be solely responsible for requesting delivery to it or
maintaining its copies of such documents.

     ILFC hereby acknowledges that (a) the Administrative Agent and/or an Agent Entity will make
available to the Lenders information provided by or on behalf of ILFC hereunder (collectively,
“ILFC Materials”) by posting the ILFC Materials on IntraLinks or another similar electronic system
(the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do
not wish to receive material non-public information with respect to ILFC or its Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. ILFC hereby agrees that it
will use commercially reasonable efforts to identify that

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portion of the ILFC
Materials that may be distributed to the Public Lenders and that (w) all such ILFC Materials
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking ILFC Materials
“PUBLIC”, ILFC shall be deemed to have authorized the Administrative Agent, any Agent Entity and
the Lenders to treat such ILFC Materials as not containing any material non-public information
(although it may be sensitive and proprietary) with respect to ILFC or its securities for purposes
of United States federal and state securities laws (provided, however, that to the
extent such ILFC Materials constitute Information, they shall be treated as set forth in Section
9.14); (y) all ILFC Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated “Public Side Information”; and (z) the Administrative Agent and an Agent
Entity shall be entitled to treat any ILFC Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform not designated “Public Side Information”.

     Section 5.10. Limitation on Transactions with Affiliates. No Obligor shall enter into, renew
or extend any transaction after the date hereof (including the purchase, sale, lease or exchange of
property or assets, or the rendering of any service) with any Affiliate of such Obligor (other than
any Obligor or any of their Subsidiaries), except upon terms no less favorable to such Obligor than
could be obtained, at the time of such transaction or at the time of the execution of the agreement
providing therefor, in a comparable arm’s-length transaction with a Person that is not such an
Affiliate and pursuant to enforceable agreements. Notwithstanding the foregoing, nothing in this
Section shall have the effect of prohibiting any transaction that is entered into in the ordinary
course of business between an Obligor and Parent or any Affiliate of Parent.

     Section 5.11. Inspections. Not more frequently than one time per calendar year (unless an
Event of Default shall have occurred and be continuing), the Administrative Agent, or its agents or
representatives, may, upon reasonable notice and during regular business hours, at the Obligor’s
expense, which notice shall in no event be less than five Business Days (except if an Event of
Default shall have occurred and be continuing), as requested by the Administrative Agent, (i)
examine and make copies of and abstracts from all books, records and documents (including computer
tapes and disks) in the possession or under the control of any Obligor and (ii) visit the offices
and properties of any Obligor, for the purpose of examining such materials described in clause (i)
above, and discussing matters relating to the Pool Aircraft Collateral or any Obligor’s performance
under the Loan Documents or under the Leases with any appropriate officers or employees of any
Obligor, having knowledge of such matters. The Borrower hereby agrees to inspect or cause the
inspection of the Pool Aircraft in accordance with Leasing Company Practice.

     Section 5.12. Use of Proceeds; Margin Regulations. The proceeds of the Loans will be used
solely to (a) pay indebtedness of ILFC or its Subsidiaries outstanding as of the Effective Date,
(b) pay interest, fees and expenses payable on such indebtedness or payable hereunder and (c)
general corporate purposes. No part of the
proceeds of the Loans will be used, directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Federal Reserve Board, including Regulations T, U and X.

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     Section 5.13. Insurance. Each Obligor shall maintain or cause to be maintained insurance
covering such risks, and in such amounts as specified in Section 2.18 and Schedule V of the
Security Agreement.

     Section 5.14. UNSC, EU and United States Sanctions and Export Restrictions. Each Obligor
shall not, nor shall it permit or cause any of its Subsidiaries to, directly or through a
Subsidiary as applicable, violate, by leasing an Aircraft or otherwise (A) any UNSC sanctions or
export restrictions, (B) any EU sanctions or export restrictions, (C) any sanctions administered or
enforced by OFAC, (D) the Export Administration Regulations administered by the Bureau of Industry
and Security of the U.S. Commerce Department, (E) the International Traffic in Arms Regulations
administered by the Directorate of Defense Trade Controls of the U.S. Department of State, (F) any
Law relating to money laundering, including the Bank Secrecy Act, as amended by the Patriot Act or
any implementing regulations thereunder, or (G) any subsequent Sanctions, in each case binding on
such Obligor, the effect of which prohibits the export and/or use of aircraft to such country or
such Person, after giving effect in each case to applicable licenses and other exemptions. Each
Obligor shall, and shall cause any of its Subsidiaries to, deliver to the Lenders any certification
or other evidence reasonably requested from time to time by the Lenders, confirming its compliance
with this Section.

     Section 5.15. Sanctions. No Obligor shall, directly or indirectly, use the proceeds of the
Loans, or lend, contribute or otherwise make available any funds to any subsidiary, joint venture
partner or other Person (x) to fund any activities or business of or with any Person or in any
country or territory that, at the time of such funding or facilitation, is the subject of any
Sanctions; or (y) in any other manner that will result in a violation of Sanctions by any Lender
Party participating in the Loans, whether as lender, borrower, advisor or otherwise.

     Section 5.16. Loan-to-Value Ratio.

     (a) The Borrower will not permit the Loan-to-Value Ratio (i) on any LTV Determination Date to
exceed the Maximum LTV and (ii) on the date of any Removal or Deemed Removal, after giving effect
to such Removal or Deemed Removal (as well as the addition of any Pool Aircraft and/or deposit of
any Interim Cash into the Collateral Account) to exceed the Loan-to-Value Ratio prior to giving
effect to such Removal or Deemed Removal (as well any prepayment of the Loans made in connection
with such Removal or Deemed Removal).

     (b) The Loan-to-Value Ratio shall be tested on each Anniversary Date, upon the sale,
substitution or other removal (other than in connection with an Event of Loss) of any Pool Aircraft
or an Owner Subsidiary (each, other than in connection with an Appraisal Event, a
“Removal”), upon an Appraisal Event, upon a prepayment under Section 2.06 or Section 9.06, and
upon an Event of Loss (each such date, a “LTV Determination Date”).

     (c) In the event that the Loan-to-Value Ratio as of any LTV Determination Date is or will be
(as applicable in accordance with Sections 5.16(d) and (e)), after giving effect to any Removal,
Deemed Removal or other event that triggered the LTV Determination Date greater than that permitted
pursuant to Section 5.16(a), the Obligors shall be required, in any combination, to (i) prepay all
or a portion of the principal amount of the Loans (plus any applicable Premium Amount, in the case
of a Removal or a Deemed Removal) by deposit into

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the Administrative Agent’s Account, (ii) deposit
an amount into the Collateral Account and/or (iii) add Non-Pool Aircraft, in each case such that
the Pool Aircraft in the Designated Pool shall be in compliance with Section 5.16(a) after giving
pro forma effect to such payment and/or addition (each of (i), (ii) and (iii), an “LTV Cure”), in
an aggregate amount sufficient to cause the Loan-to-Value Ratio, after giving pro forma effect to
any LTV Cure, to satisfy the requirements of Section 5.16(a) as of such LTV Determination Date. If
the Obligors elect to deposit an amount (the “Interim Cash”) into the Collateral Account in
effecting an LTV Cure, then the Obligors will have 180 days to effect an LTV Cure of the type
described in clause (i) or (iii) above in an aggregate amount sufficient to cause the Loan-to-Value
Ratio, after giving pro forma effect to any LTV Cure not including any Interim Cash, to satisfy the
requirements of Section 5.16(a) (an “Interim Cure”). Upon such an Interim Cure being effected and
certified by ILFC to the Administrative Agent and the Collateral Agent, at the Borrower’s request,
the Collateral Agent shall direct the Securities Intermediary to return the relevant Interim Cash
or any specified portion thereof to the Borrower to an account specified by the Borrower. If the
Borrower so requests in connection with an Interim Cure, the Collateral Agent shall direct the
Securities Intermediary to deposit such portion of the Interim Cash specified by the Borrower in
the Administrative Agent’s Account to be applied to prepay a portion of the principal amount of the
Loans (provided that the Borrower shall pay any applicable Premium Amount, in the case of a
Removal). If the Borrower does not certify to the Administrative Agent and the Collateral Agent
that an Interim Cure has otherwise been effected before close of business on the 180th
day after the Interim Cash is initially deposited in the Collateral Account, the Borrower shall
request the Collateral Agent to direct the Securities Intermediary to deposit such Interim Cash
into the Administrative Agent’s Account to be applied to prepay a portion of the principal amount
of the Loans (and the Borrower shall pay any Premium Amount, in the case of a Removal or a Deemed
Removal).

     (d) The Obligors shall complete the applicable LTV Cure(s) (i) in connection with any LTV
Determination Date relating to an Annual Anniversary, as set forth in Section 5.16(e), (ii) in
connection with any LTV Determination Date relating to any Removal or Deemed Removal, on or prior
to such LTV Determination Date, (iii) after any other LTV Determination Date (other than in
connection with an Event of Loss), (A) with respect to any LTV Cure consisting of prepayment of the
Loans or payment of Interim Cash into the Collateral Account, within 10 Business Days following
such LTV Determination Date and (B) with respect to any other LTV Cure, within 45 days following
such LTV Determination Date and (iv) in the case of an LTV Determination Date in connection with an
Event of Loss, within 180 days following such LTV Determination Date.

     (e) If on any anniversary of the Effective Date beginning on the second anniversary of the
Effective Date (each, an “Annual Anniversary”), the Loan-to-Value Ratio is greater than permitted
pursuant to Section 5.16(a), then, if not cured prior thereto, the Loan-to-Value Ratio shall be
tested on the date six-months following such Annual Anniversary (each, to the extent applicable as
provided above, a “Six-Month Anniversary” and, together with each Annual Anniversary, the
“Anniversary Dates”). The Obligors shall not be required to complete an LTV Cure prior to such
Six-Month Anniversary. If on a Six-Month Anniversary the Loan-to-Value Ratio is greater than
permitted pursuant to Section 5.16(a), then the Obligors shall complete an LTV Cure within the time
period or periods described in Section 5.16(d)(iii).

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     (f) The Loan-to-Value Ratio shall be tested on the first anniversary of the Effective Date
(the “Initial Test Date”). If the Loan-to-Value Ratio exceeds 65.0% on the Initial Test Date, the
Obligors shall prepay a portion of the principal amount of the Loans by deposit into the
Administrative Agent’s Account within 30 days of the Initial Test Date in an aggregate amount
sufficient to cause the Loan-to-Value Ratio, after giving pro forma effect to such prepayment, not
to exceed 65.0%.

     Section 5.17. Mergers, Consolidations and Sales of Assets. (a) ILFC shall not consolidate
with or merge into any other Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, and ILFC shall not permit any Person to consolidate
with or merge into it or convey, transfer or lease its properties and assets substantially as an
entirety to it, unless:

     (i) in case ILFC shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person, the
Person formed by such consolidation or into which ILFC is merged or the Person which
acquires by conveyance or transfer, or which leases, the properties and assets of ILFC
substantially as an entirety shall be a corporation, partnership or trust, shall be
organized and validly existing under the laws of the United States of America, any State
thereof or the District of Columbia and shall expressly assume, by an amendment hereto,
executed and delivered to the Administrative Agent, in form and substance reasonably
satisfactory to the Administrative Agent, ILFC’s guaranty herein of the due and punctual
payment of the principal of (and premium, if any) and interest on all the Loans and the
performance of every covenant of this Credit Agreement and the other Loan Documents on the
part of ILFC to be performed or observed;

     (ii) immediately after giving effect to such transaction no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing; and

     (iii) ILFC has delivered to the Administrative Agent an officers’ certificate and an
opinion of counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and, if any amendment is required in connection with such transaction, such amendment
comply with this Section 5.17 and that all conditions precedent herein provided for relating
to such transaction have been complied with.

     (b) Upon any consolidation by ILFC with or merger by ILFC into any other Person or any
conveyance, transfer or lease of the properties and assets of ILFC substantially as an entirety in
accordance with clause (a), the successor Person formed by such consolidation or into which ILFC is
merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, ILFC under the Loan Documents with the same effect
as if such successor Person had been named as ILFC herein, and thereafter, except in the case of a
lease, the predecessor Person shall be relieved of all obligations and covenants under the Loan
Documents.

     (c) None of Parent Holdco, the Borrower, CA Subsidiary Holdco, Irish Subsidiary Holdco, any
Owner Subsidiary nor any Intermediate Lessee shall merge or consolidate into

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another Person unless
(i) the capital structure immediately prior to such merger or consolidation would remain unchanged
after giving effect to such merger or consolidation such that ILFC would directly or indirectly own
100% of the Equity Interest in Parent Holdco, Parent Holdco would directly own 100% of the Equity
Interest in the Borrower, the Borrower would directly own 100% of the Equity Interest in each
applicable Subsidiary Holdco and, subject to the Local Requirements Exception, each Subsidiary
Holdco would directly (or indirectly via Owner Subsidiaries in which it directly or indirectly owns
100% of the Equity Interests) own 100% of the Equity Interest in each of its applicable Owner
Subsidiaries and Intermediate Lessees, (ii) the successor Person formed by such consolidation or
into which the relevant Obligor is merged would be the successor Obligor such that, for example, if
the Borrower merges into a Delaware partnership, the surviving Delaware partnership would become
the Borrower, (iii) such successor Person would be bound to perform all of the obligations and
duties of its predecessor entity, (iv) no Default or Event of Default shall have occurred and be
continuing after giving effect to such merger or consolidation, (v) the Collateral Agent will
continue to have a first priority perfected security interest in all of the Collateral (including
100% of the Equity Interest in each such successor Person other than Parent Holdco) subject to
Permitted Liens and to the extent required under the Express Perfection Requirements, and will
receive a legal opinion from reputable international counsel to such effect and (vi) the
Administrative Agent shall have received a certificate, dated as of the date of such merger or
consolidation and signed by the President, a Vice President or a Financial Officer of ILFC
confirming that each of preceding conditions (i) through (v) have been satisfied.

     Section 5.18. Limitation on Indebtedness. No Obligor (other than ILFC) may incur, create,
issue, assume, guarantee or otherwise become liable for or with respect to, or become responsible
for, the payment of, contingently or otherwise, whether present or future, any Indebtedness other
than (i) in the case of the Obligors, Indebtedness under the Loan Documents, (ii) Indebtedness in
respect of guarantees by any Borrower Party of any obligation of any Obligor (other than of ILFC or
Parent Holdco); (iii) Leases and obligations to Lessees, trustees and others under the Leases,
trust agreements and other documents related thereto, including any Indebtedness owed to any Lessee
under any such agreement or the Lease with respect to maintenance contributions, redelivery
condition adjustment payments or any other obligation of any Subsidiary Holdco, Intermediate Lessee
or Owner Subsidiary to a Lessee; (iv) Indebtedness of any Obligor owed to ILFC and Pledged Debt;
provided that, no such Indebtedness shall be permitted unless, in the case of any Pledged
Debt Collateral, such Pledged Debt Collateral has been pledged to the Collateral Agent for the
benefit of the Secured Parties pursuant to the Security Agreement and the Collateral Agent has
a first priority perfected security interest in such Pledged Debt Collateral and (z) in the case of
any Pledged Debt Collateral, such Pledged Debt Collateral is evidenced by an Instrument which has
been delivered and indorsed to the Collateral Agent; (v) Indebtedness required in connection with
repossession of an Aircraft or any Engine (as defined in the Security Agreement); and (vi)
Indebtedness in favor of the issuer of a surety, letter of credit or similar instrument to be
obtained by any Subsidiary Holdco, Intermediate Lessee or Owner Subsidiary in connection with the
repossession or detention of an Aircraft or other enforcement action under a Lease.

     Section 5.19. Limitation on Business Activity. Each Obligor (other than ILFC) shall maintain
its existence as a separate corporation, trust or other Person for the sole purpose of (i) in

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the
case of each Owner Subsidiary and each Intermediate Lessee, owning, leasing and disposing of the
Pool Aircraft and activities incidental thereto and (ii) in the case of each Borrower Party,
holding and disposing of the assets contemplated to be held hereunder and entering into the Loan
Documents and the transactions contemplated thereby and activities incidental thereto. Each
Obligor (other than ILFC) shall maintain certain policies and procedures relating to its
separateness, including, (x) maintaining its own books and records (other than any Obligor which is
a trust) and maintaining its assets and liabilities in such a manner that it is not difficult to
segregate, identify or ascertain such assets and liabilities from those of ILFC, other Obligors and
any other Person, and (y) holding itself out to creditors and the public as a legal entity (other
than any trust) separate and distinct from ILFC, other Obligors and any other Person (except for
consolidated tax returns (including VAT returns and elections to be disregarded), financial
statements and similar reports).

     Section 5.20. Operational Covenants.

          (a) Operation and Use. Each Obligor agrees that no Pool Aircraft will be maintained, used or
operated in violation of any law, rule or regulation (including airworthiness directives) of any
government or Governmental Authority having jurisdiction over it with respect to such Pool Aircraft
or in violation of any airworthiness certificate, license or registration relating to such Pool
Aircraft issued by any such government, except for minor violations, and except to the extent any
Obligor (or, if a Lease is then in effect with respect to such Pool Aircraft, any Lessee of such
Pool Aircraft) is contesting in good faith the validity or application of any such law, rule or
regulation in any manner that does not involve any material risk of sale, forfeiture or loss of
such Pool Aircraft or any material risk of subjecting any Secured Party to criminal liability or
materially impair the Liens created by any Security Document; provided that the Obligors
shall only be entitled to contest mandatory grounding orders if they (or the applicable Lessee) do
not operate such Pool Aircraft during such contest. The Obligors will not operate any Pool
Aircraft, or permit any Pool Aircraft to be operated or located, (i) in any area excluded from
coverage by any insurance required by the terms of Section 2.18 and Schedule V of the Security
Agreement or (ii) in any war zone or recognized or threatened areas of hostilities unless covered
by war risk insurance in accordance with Section 2.18 and Schedule V of the Security Agreement, in
either case unless indemnified by a government authority as provided
therein or unless located there due to an emergency or an event outside the Lessee’s control,
but only for so long as such emergency or event continues.

          Notwithstanding the other provisions of Section 5.07 or this Section 5.20, no breach of
Section 5.07 or Section 5.20 shall be deemed to have occurred by virtue of any act or omission of a
Lessee or sub-lessee, or of any Person claiming by or through a Lessee or a sub-lessee, or of any
Person which has possession of the Pool Aircraft or any Engine for the purpose of repairs,
maintenance, modification or storage, or by virtue of any requisition, seizure, or confiscation of
the Pool Aircraft) (each, a “Third Party Event”); provided that actions taken by
ILFC or the Owner Subsidiary or Intermediate Lessee which is the lessor or owner of such Pool
Aircraft with respect thereto are in accordance with Leasing Company Practice (taking into account,
inter alia, the laws of the jurisdictions in which the Pool Aircraft are located).

          (b) Registration. Each Obligor shall cause each Pool Aircraft to become (or be in the process
of becoming in due course) and remain duly registered, under the laws of a

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country or jurisdiction
that is not a Prohibited Country or that is the country in which such Pool Aircraft is registered
as of the date hereof, in the name of the relevant Owner Subsidiary and reflecting the applicable
Owner Subsidiary (or, if applicable, the applicable Intermediate Lessee) as lessor, in each case,
if and to the extent so permitted under the applicable registry and subject to the Local
Requirements Exception; provided that a Pool Aircraft may be unregistered for a temporary
period in connection with modification or maintenance of such Pool Aircraft. The Administrative
Agent and the Collateral Agent each agree that it will cooperate with the relevant Obligor in
changing the state of registration of any Pool Aircraft at the cost of the relevant Obligor and as
the relevant Obligor may request, provided that such request does not conflict with the relevant
Obligor’s obligations under the Loan Documents.

          (c) Extension, Amendment or Replacement of Leases. Upon execution of any renewal, extension
or replacement Lease of any existing Lease in respect of a Pool Aircraft, the Borrower Parties
party thereto shall comply with the provisions of Sections 2.06, 2.07 and 2.09 of the Security
Agreement, as applicable, and shall deliver the following to the Collateral Agent:

          (i) the Chattel Paper Original (as defined in the Security Agreement), if any, of such
renewal, extension or replacement Lease;

          (ii) a notice of assignment substantially in the form attached to the Security
Agreement as Exhibit G (a “Lessee Notice”), or such form of such notice as may be
pre-agreed in the relevant Lease, addressed to, or for the benefit of, the Collateral Agent
with respect to such Lease, which notice has been sent to the relevant Lessee;

          (iii) certificates of insurance from qualified brokers of aircraft insurance (or other
evidence reasonably satisfactory to the Administrative Agent), evidencing all insurance
required to be maintained by the applicable Lessee, together with the endorsements required
pursuant to Section 5.13 of this Agreement and Schedule V of the Security Agreement;

          (iv) promptly and in any case within 30 days of the effectiveness of the leasing of
such Pool Aircraft, a copy of such Lease; and

          (v) with respect to any replacement Lease, copies of such legal opinions with regard to
compliance with the registration requirements of the relevant jurisdiction, enforceability
of such Lease and such other matters customary for such transactions, in each case to the
extent that receiving such legal opinions is consistent with Leasing Company Practice.

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ARTICLE 6

Events of Default

If any of the following events (“Events of Default”) shall occur:

     (a) the Borrower shall fail to pay when due (i) any principal of the Loans, (ii) any interest
on the Loans or (iii) any fees due under Section 2.07(c), and such failure shall continue
unremedied for a period of three Business Days, or the Borrower shall fail to pay when due any
other fee or other amount payable under any Loan Document, and such failure shall continue
unremedied for a period of five Business Days after demand upon or other notice to such Borrower;

     (b) any representation, warranty or certification made or deemed made by or on behalf of any
Obligor in or in connection with any Loan Document or any amendment or modification thereof or
waiver thereunder, or in any report, certificate, financial statement or other document furnished
pursuant to or in connection with any Loan Document or any amendment or modification thereof or
waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed
made and the adverse effect thereof, if capable of being remedied, shall continue unremedied for a
period of 30 days after the date on which the applicable Obligor shall have received written notice
thereof from any Lender Party;

     (c) any Obligor shall fail to observe or perform any covenant or agreement contained in
Sections 5.01, 5.04, 5.13, 5.16(d), 5.16(f) or 5.17;

     (d) any Obligor shall fail to observe or perform any covenant or agreement contained in any
Loan Document (other than those specified in clause (a) or (c) above), and such failure shall
continue unremedied for a period of 60 days (or, if ILFC failed to give notice of such
noncompliance or nonperformance pursuant to Section 5.09(a)(iv) within three Business Days after
obtaining knowledge thereof, 60 days minus the number of days elapsed between the date the Borrower
obtained such knowledge and the date ILFC gives the notice pursuant to Section 5.09(a)(iv), but in
no event less than three Business Days) after notice thereof from any Lender Party to ILFC (which
notice will be given by the Administrative Agent at the request of the Required Lenders);

     (e) default under any mortgage, indenture or instrument under which there is issued, or which
secures or evidences, any indebtedness for borrowed money of the Borrower or any other Obligor now
existing or hereinafter created, which default shall constitute a failure to pay any amount of
principal of such indebtedness in an amount exceeding $50,000,000 when due and
payable (other than as a result of acceleration), after expiration of any applicable grace
period with respect thereto, or shall have resulted in an aggregate principal amount of such
indebtedness exceeding $50,000,000 becoming or being declared due and payable prior to the date on
which it would otherwise have become due and payable, without such indebtedness having been
discharged or such acceleration having been rescinded or annulled within a period of 30 days after
there has been given a written notice to the Borrower by the Administrative Agent or to the
Borrower and the Administrative Agent by Lenders holding at least 25% in principal amount of the
Loans at the time outstanding, specifying such default with respect to the other indebtedness and
requiring such Obligor to cause such indebtedness to be discharged or cause such acceleration to be
rescinded or annulled and stating that such notice is a notice of an “Notice of Default” hereunder;

     (f) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of any Obligor or its debts,

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or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership, examinership or similar law now or hereafter in effect or (ii) the appointment of a
receiver, examiner, trustee, custodian, sequestrator, conservator or similar official for any
Obligor or for a substantial part of its assets, and, in any such case, such proceeding or petition
shall continue undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

     (g) any Obligor shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization, examination or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership, examinership or similar law now or hereafter in effect, (ii)
consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (f) above, (iii) apply for or consent to the appointment
of a receiver, examiner, trustee, custodian, sequestrator, conservator or similar official for any
Obligor or for a substantial part of its respective assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) have its board of directors vote to approve any
action for the purpose of effecting any of the foregoing;

     (h) any Obligor shall become unable, admit in writing its inability or fail generally to pay
its debts as they become due;

     (i) one or more judgments for the payment of money in an aggregate amount exceeding
$50,000,000 not covered by insurance shall be rendered against any Obligor taken as a whole and
shall remain undischarged for a period of 60 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy
upon Collateral to enforce any such judgment to the extent not a Permitted Lien; or

     (j) any Lien purported to be created under any Security Document shall be asserted by any
Obligor not to be, a valid and perfected Lien (to the extent required under the Express Perfection
Requirements) on any Collateral with the same priority as and to the extent provided for under the
applicable Security Documents except as a result of a sale, release or other disposition of the
applicable Collateral in a transaction permitted under the Loan Documents;

     (k) an ERISA Event shall have occurred that when taken either alone or together with all other
such ERISA Events, could reasonably be expected to result in a Material Adverse Effect;

then, and in every such event (except an event with respect to any Obligor described in clause (f)
or (g) above), and at any time thereafter during the continuance of such event, the Administrative
Agent may, and at the request of the Required Lenders shall, by notice to ILFC, (i) if such notice
shall have been delivered prior to the making of the Loans, declare the Commitments to be
terminated or (ii) if such notice shall have been delivered after the making of the Loans, declare
the Loans then outstanding to be due and payable in whole (or in part, in which case any principal
not so declared to be due and payable may thereafter be declared to be due and payable), and
thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Obligors accrued

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hereunder, shall become due and payable immediately, without presentment, demand, protest or
other notice of any kind, all of which are waived by the Borrower; and in the case of any event
with respect to any Borrower Party described in clause (f) or (g) above, (1) if such event shall
have occurred prior to the making of the Loans, the Commitments shall automatically be terminated
and (2) if such event shall have occurred after the making of the Loans, the principal of the Loans
then outstanding, together with accrued interest thereon and all fees and other obligations of the
Obligors accrued hereunder, shall automatically become due and payable, in each case without
presentment, demand, protest or other notice of any kind, all of which are waived by the Obligors.

ARTICLE 7

Guaranty

     Section 7.01. Guaranty. Each Obligor hereby guarantees the punctual payment upon the
expiration of any applicable remedial period, whether at scheduled maturity or by acceleration,
demand or otherwise (including amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), of all of its Guaranteed
Obligations. Without limiting the generality of the foregoing, the liability of each Obligor shall
extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by any
Obligor to any Secured Party under or in respect of the Loan Documents but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy, reorganization,
examination or similar proceeding involving such Obligor.

     Section 7.02. Contribution. Subject to Section 7.03, each Obligor hereby unconditionally
agrees that in the event any payment shall be required to be made to any Secured Party under this
Article 7, such Obligor in its capacity as such will contribute, to the maximum extent permitted by
law, such amounts to each other Obligor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Loan Documents.

     Section 7.03. Guaranty Absolute. Each Obligor guarantees that its Guaranteed Obligations will
be paid in accordance with the terms of the Loan Documents, regardless of any law, regulation or
order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of
any Secured Party with respect thereto. The Obligations of each Obligor under or in respect of this
Article 7 are independent of the Guaranteed Obligations or any other Obligations of any other
Obligor under or in respect of the Loan Documents, and a separate action or actions may be brought
and prosecuted against each Obligor to enforce this Article 7, irrespective of whether any action
is brought against any other Obligor or whether any other Obligor is joined in any such action or
actions. The liability of each Obligor under this Article 7 shall be irrevocable, absolute and
unconditional, and each Obligor hereby irrevocably waives any defenses (other than payment in
full of the Guaranteed Obligations and except in respect of a Defaulting Lender) it may now have or
hereafter acquire in any way relating to, any or all of the following:

     (a) any lack of validity or enforceability of any Loan Document or any agreement or instrument
relating thereto;

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     (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of its Guaranteed Obligations or any other Obligations of any Obligor under or in respect of the
Loan Documents, or any other amendment or waiver of or any consent to departure from any Loan
Document, including, without limitation, any increase in its Guaranteed Obligations resulting from
the extension of additional credit to any Obligor or any of its Subsidiaries or otherwise;

     (c) any taking, exchange, release or non-perfection of security interest in or Lien on any
Collateral or any other collateral, or any taking, release or amendment or waiver of, or consent to
departure from, any other guaranty, for all or any of its Guaranteed Obligations;

     (d) any manner of application of Collateral or any other collateral, or proceeds thereof, to
all or any of its Guaranteed Obligations, or any manner of sale or other disposition of any
Collateral or any other collateral for all or any of its Guaranteed Obligations or any other
Secured Obligations of any Obligor under the Loan Documents or any other assets of any Obligor or
any of its Subsidiaries;

     (e) any change, restructuring or termination of the corporate structure or existence of any
Obligor or any of its Subsidiaries;

     (f) any failure of any Secured Party to disclose to any Obligor any information relating to
the business, condition (financial or otherwise), operations, performance, properties or prospects
of any other Obligor now or hereafter known to such Secured Party (each Obligor waiving any duty on
the part of the Secured Parties to disclose such information);

     (g) the failure of any other Person to execute or deliver any other guaranty or agreement or
the release or reduction of liability of any other guarantor or surety with respect to its
Guaranteed Obligations; or

     (h) any other circumstance or any existence of or reliance on any representation by any
Secured Party that might otherwise constitute a defense available to, or a discharge of, any
Obligor or any guarantor or surety other than satisfaction in full of the Obligations.

This Article 7 shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any of such Obligor’s Guaranteed Obligations is rescinded or must otherwise be
returned by any Secured Party or any other Person upon the insolvency, bankruptcy or reorganization
of any Obligor or otherwise, all as though such payment had not been made.

     In furtherance of the foregoing and without limiting the generality thereof, each Obligor
agrees as follows:

          (i) the obligation pursuant to this Article 7 is a guaranty of payment when due and not of
collectability, and is a primary obligation of each Obligor and not merely a contract of surety;

          (ii) the obligations of each Obligor hereunder are independent of the obligations of the
Borrower and the obligations of any other guarantor (including any other Obligor) of the

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obligations of the Borrower, and a separate action or actions may be brought and prosecuted against
such Obligor whether or not any action is brought against the Borrower or any of such other
guarantors and whether or not the Borrower is joined in any such action or actions;

          (iii) payment by any Obligor of a portion, but not all, of the Guaranteed Obligations shall
in no way limit, affect, modify or abridge any Obligor’s liability for any portion of the
Guaranteed Obligations which has not been paid. Without limiting the generality of the foregoing,
if the Administrative Agent is awarded a judgment in any suit brought to enforce any Obligor’s
covenant to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to
release such Obligor from its covenant to pay the portion of the Guaranteed Obligations that is not
the subject of such suit, and such judgment shall not, except to the extent satisfied by such
Obligor, limit, affect, modify or abridge any other Obligor’s liability hereunder in respect of the
Guaranteed Obligations;

          (iv) any Secured Party, upon such terms as it deems appropriate, without notice or demand
and without affecting the validity or enforceability hereof or giving rise to any reduction,
limitation, impairment, discharge or termination of any Obligor’s liability hereunder, from time to
time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the
time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise,
release or discharge, or accept or refuse any offer of performance with respect to, or
substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate
the payment of the same to the payment of any other obligations; (iii) request and accept other
guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the
Guaranteed Obligations; (iv) release, surrender, exchange, substitute, compromise, settle, rescind,
waive, alter, subordinate or modify, with or without consideration, any security for payment of the
Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation
of any Person (including any other Obligor) with respect to the Guaranteed Obligations; (v) enforce
and apply any security now or hereafter held by or for the benefit of such Secured Party in respect
hereof or the Guaranteed Obligations and direct the order or manner of sale thereof, or exercise
any other right or remedy that such Secured Party may have against any such security, in each case
as such Secured Party in its discretion may determine consistent herewith and any Security Document
including foreclosure on any such security pursuant to one or more judicial or nonjudicial sales,
whether or not every aspect of any such sale is commercially reasonable, and even though such
action operates to impair or extinguish any right of reimbursement or subrogation or other right or
remedy of any Obligor against any other creditor or any security for the Guaranteed Obligations;
and (vi) exercise any other rights available to it under the Loan Documents; and

          (v) this Article 7 and the obligations of Obligors hereunder shall be valid and enforceable
and shall not be subject to any reduction, limitation, impairment, discharge or termination for any
reason (other than payment in full of the Guaranteed Obligations), including
the occurrence of any of the following, whether or not any Obligor shall have had notice or
knowledge of any of them: (i) any failure or omission to assert or enforce or agreement or election
not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or
otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy
(whether arising under the Loan Documents, at law, in equity or otherwise) with respect to the
Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty

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of
or security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver, amendment
or modification of, or any consent to departure from, any of the terms or provisions (including
provisions relating to events of default) hereof, any of the other Loan Documents or any agreement
or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed
Obligations, in each case whether or not in accordance with the terms hereof or such Loan Document
or any agreement relating to such other guaranty or security; (iii) the Guaranteed Obligations, or
any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in
any respect; (iv) the application of payments received from any source (other than payments
received pursuant to the other Loan Documents or from the proceeds of any security for the
Guaranteed Obligations, except to the extent such security also serves as collateral for
indebtedness other than the Guaranteed Obligations) to the payment of indebtedness other than the
Guaranteed Obligations, even though any Secured Party might have elected to apply such payment to
any part or all of the Guaranteed Obligations; (v) any Secured Party’s consent to the change,
reorganization or termination of the corporate structure or existence of the Borrower and any of
its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (vi) any
failure to perfect or continue perfection of a security interest in any collateral which secures
any of the Guaranteed Obligations; (vii) any defenses, set-offs or counterclaims which the Borrower
may allege or assert against any Secured Party in respect of the Guaranteed Obligations, including
failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations,
accord and satisfaction and usury; and (viii) any other act or thing or omission, or delay to do
any other act or thing, which may or might in any manner or to any extent vary the risk of any
Obligor as an obligor in respect of the Guaranteed Obligations.

     Section 7.04. Waiver and Acknowledgments. (i) Each Obligor hereby waives promptness,
diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance,
default, acceleration, protest or dishonor and any other notice with respect to any of its
Guaranteed Obligations and this Article 7 and any requirement that any Secured Party protect,
secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any
action against any Obligor or any other Person or any Collateral.

     (a) Each Obligor hereby unconditionally and irrevocably waives any right to revoke this
Article 7 and acknowledges that this Article 7 is continuing in nature and applies to all of its
Guaranteed Obligations, whether existing now or in the future.

     (b) Each Obligor hereby unconditionally and irrevocably waives any defense (i) arising by
reason of any claim or defense based upon an election of remedies by any Secured Party that in any
manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement,
exoneration, contribution or indemnification rights of such Obligor
or other rights of such Obligor to proceed against any of the other Obligors, any other
guarantor or any other Person or any Collateral; (ii) any defense based on any right of set-off or
counterclaim against or in respect of the Obligations of such Obligor under this Article 7 (except
for payment and except as against a Defaulting Lender); (iii) arising by reason of the incapacity,
lack of authority or any disability or other defense of the Borrower, any other Obligor or any
Obligor including any defense based on or arising out of the lack of validity or the
unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto or
by reason of the cessation of the liability of the Borrower, any other Obligor or any Obligor

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from any cause other than payment in full of the Guaranteed Obligations; (iv) based upon any statute or
rule of law which provides that the obligation of a surety must be neither larger in amount nor in
other respects more burdensome than that of the principal; (v) based upon any Secured Party’s
errors or omissions in the administration of the Guaranteed Obligations, except behavior which
amounts to bad faith; (vi) based on any principles or provisions of law, statutory or otherwise,
which are or might be in conflict with the terms hereof and any legal or equitable discharge of
such Obligor’s obligations hereunder; (vii) based on the benefit of any statute of limitations
affecting such Obligor’s liability hereunder or the enforcement hereof; (viii) promptness,
diligence and any requirement that any Secured Party protect, secure, perfect or insure any
security interest or lien or any property subject thereto; and (ix) any defenses or benefits that
may be derived from or afforded by law which limit the liability of or exonerate guarantors or
sureties, or which may conflict with the terms hereof.

     (c) Each Obligor hereby unconditionally and irrevocably waives any duty on the part of any
Secured Party to disclose to such Obligor any matter, fact or thing relating to the business,
condition (financial or otherwise), operations, performance, properties or prospects of any other
Borrower Party or any of its Subsidiaries now or hereafter known by such Secured Party.

     (d) Each Obligor acknowledges that it will receive substantial direct and indirect benefits
from the financing arrangements contemplated by the Loan Documents and that the waivers set forth
in this Article 7 are knowingly made in contemplation of such benefits.

     Section 7.05. Subrogation. Each Obligor hereby unconditionally and irrevocably agrees not to
exercise any rights that it may now have or hereafter acquire against any other Obligor or any
other insider guarantor that arise from the existence, payment, performance or enforcement of such
Obligor’s Guaranteed Obligations under or in respect of any Loan Document, including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification
and any right to participate in any claim or remedy of any Secured Party against any other Obligor
or any other insider guarantor or any Collateral, whether or not such claim, remedy or right arises
in equity or under contract, statute or common law, including, without limitation, the right to
take or receive from any other Obligor or any other insider guarantor, directly or indirectly, in
cash or other property or by set-off or in any other manner, payment or security on account of such
claim, remedy or right, unless and until all of such Obligor’s Guaranteed Obligations and all other
amounts payable under this Article 7 shall have been paid in full in cash, it being understood that
payments in respect of inter-company advances and dividends exclusively among the Obligors are not
prohibited under this Section 7.05 unless an Event of Default has
occurred and is continuing. If any amount shall be paid to any Obligor in violation of the
immediately preceding sentence at any time prior to the payment in full in cash of the Guaranteed
Obligations and all other amounts payable under this Article 7, such amount shall be received and
held in trust for the benefit of the Secured Parties, shall be segregated from other property and
funds of such Obligor and shall forthwith be paid or delivered to the Lender in the same form as so
received (with any necessary endorsement or assignment) to be credited and applied to such
Obligor’s Guaranteed Obligations and all other amounts payable by it under this Article 7, whether
matured or unmatured, in accordance with the terms of the Loan Documents, or to be held as
Collateral for any of such Obligor’s Guaranteed Obligations or other amounts payable by it under
this Article 7 thereafter arising. If all of the Guaranteed Obligations

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and all other amounts
payable under this Article 7 shall have been paid in full in cash, the Secured Parties will, at any
Obligor’s request and expense, execute and deliver to such Obligor appropriate documents, without
recourse and without representation or warranty, necessary to evidence the transfer by subrogation
to such Obligor of an interest in the Guaranteed Obligations resulting from such payment made by
such Obligor pursuant to this Article 7.

     Section 7.06. Payment Free and Clear of Taxes. Any and all payments by any Obligor under this
Article 7 shall be made in accordance with the provisions of this Agreement, including the
provisions of Section 2.08 (and such Obligor shall make such payments of Taxes or Other Taxes to
the extent described in Section 2.08), as though such payments were made by the Borrower.

     Section 7.07. No Waiver; Remedies. No failure on the part of any Secured Party to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further exercise thereof or
the exercise of any other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

     Section 7.08. Continuing Guaranty. This Article 7 is a continuing guaranty and shall (a)
remain in full force and effect until the payment in full in cash of the Guaranteed Obligations and
all other amounts payable under this Article 7, and (b) inure to the benefit of and be enforceable
by the Secured Parties and their permitted successors, transferees and assigns. No Obligor shall
have the right to assign its rights hereunder or any interest herein without the prior written
consent of the Administrative Agent.

     Section 7.09. Subordination of Certain Intercompany Indebtedness. Each Obligor hereby agrees
that any obligations owed to it by another Obligor shall be subordinated to the Obligations of such
Obligor and that any indebtedness owed to it by another Obligor shall be subordinated to the
Obligations of such other Obligor, it being understood that such Obligor or such other Obligor, as
the case may be, may make payments on such intercompany indebtedness and dividends unless an Event
of Default has occurred and is continuing.

     Section 7.10. Limit of Liability. (a) Each Obligor shall be liable only for Guaranteed
Obligations aggregating up to the largest amount that would not render its Guaranteed Obligations
hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any
comparable provision of any other applicable law.

     (b) In the event that the direct or indirect assets of any Obligor organized under the laws of
Ireland are insufficient to pay in full all claims made by the Secured Parties in respect of
Guaranteed Obligations of such Obligor, then the Secured Parties shall have no further claim
against such Obligor with respect to its Guaranteed Obligations for amounts that exceed its direct
or indirect assets at such time.

     Section 7.11. Release. Upon the release of an Obligor as provided in Section 2.10(d), (h) or
(j) hereof, the obligations of such Obligor under this Article 7 and under the other Loan Documents
shall concurrently therewith automatically be deemed released, discharged and terminated.

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     Section 7.12. No ILFC Collateral. For purposes of clarification, the parties hereto
acknowledge and agree that ILFC is not a “Grantor” under the Security Documents and has not granted
and is not obligated under the Loan Documents to grant a Lien on any property or other assets of
ILFC.

ARTICLE 8

Agents

     Section 8.01. Appointment and Authority. (a) Each of the Lenders hereby appoints Citibank to
act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. Except as provided herein, the provisions
of this Article are solely for the benefit of the Agents and the Lenders, and neither the Borrower
nor any other Obligor shall have rights as a third party beneficiary of any of such provisions.

     (b) Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are hereby appointed
Lead Agents hereunder, and BNP Paribas is hereby appointed Joint Agent hereunder, and each Lender
hereby authorizes Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and BNP Paribas
to act as Joint Agents in accordance with the terms hereof and the other Loan Documents. Each of
the Joint Agents hereby agree to act in its capacity as such upon the express conditions contained
herein and the other Loan Documents, as applicable.

     (c) In performing its functions and duties hereunder, each Agent shall act solely as an agent
of Lenders and does not assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for any Obligor. Each Joint Agent, without consent of or
notice to any party hereto, may assign any and all of its rights or obligations hereunder to any of
its Affiliates. As of the Effective Date, each Joint Agent shall not have any obligations but
shall be entitled to all benefits of this Article 8. Each Joint Agent may resign from such role
at any time, with immediate effect, by giving prior written notice thereof to the Administrative
Agent and the Borrower.

     (d) Each Lender irrevocably authorizes the Joint Agents to take such action on such Lender’s
behalf and to exercise such powers, rights and remedies hereunder and under the other Loan
Documents as are specifically delegated or granted to the Joint Agents by the terms hereof and
thereof, together with such powers, rights and remedies as are reasonably incidental thereto. The
Joint Agents may exercise such powers, rights and remedies and perform such duties by or through
its agents or employees. Nothing herein or any of the other Loan Documents, expressed or implied,
is intended to or shall be so construed as to impose upon the Joint Agents any obligations in
respect hereof or any of the other Loan Documents except as expressly set forth herein or therein.

     (e) The Administrative Agent hereby agrees that it shall (i) furnish to the Joint Agents, upon
their request, a copy of the Register, (ii) cooperate with the Joint Agents in

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granting access to
any Lenders (or potential lenders) who the Joint Agents identify to the Platform and (iii) maintain
the Joint Agents’ access to the Platform.

     Section 8.02. Rights as a Lender. (a) Each Person serving as an Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not an Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person serving as an
Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits
from, lend money to, act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with ILFC or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty to account therefor
to the Lenders.

     (b) Each Lender understands that each Agent Entity is engaged in a wide range of financial
services and businesses (including investment management, financing, securities trading, corporate
and investment banking and research) (such services and businesses are collectively referred to in
this Section 8.02 as “Activities”) and may engage in the Activities with or on behalf of one or
more of the Obligors or their respective Affiliates. Furthermore, each Agent Entity may, in
undertaking the Activities, engage in trading in financial products or undertake other investment
businesses for its own account or on behalf of others (including the Obligors and their Affiliates
and including holding, for its own account or on behalf of others, equity, debt and similar
positions in the Borrower, another Obligor or their respective Affiliates), including trading in or
holding long, short or derivative positions in securities, loans or other financial products of one
or more of the Obligors or their Affiliates. Each Lender understands and agrees that in engaging
in the Activities, an Agent Entity may receive or otherwise obtain
information concerning the Obligors or their Affiliates (including information concerning the
ability of the Obligors to perform their respective obligations hereunder and under the other Loan
Documents) which information may not be available to any of the Lenders that are not Agent
Entities. Neither any Person serving as an Agent nor any other Agent Entity shall have any duty to
disclose to any Lender or use on behalf of the Lenders, nor be liable for the failure to so
disclose or use, any information whatsoever about or derived from the Activities or otherwise
(including any information concerning the business, prospects, operations, property, financial and
other condition or creditworthiness of any Obligor or any Affiliate of any Obligor) or to account
for any revenue or profits obtained in connection with the Activities, provided that the
Administrative Agent shall deliver or otherwise make available to each Lender such documents as are
expressly required by any Loan Document to be transmitted by the Administrative Agent to the
Lenders.

     (c) Each Lender further understands that there may be situations where members of the Agents’
Group or their respective customers (including the Obligors and their Affiliates) either now have
or may in the future have interests or take actions that may conflict with the interests of any one
or more of the Lenders (including the interests of the Lenders hereunder and under the other Loan
Documents). Each Lender agrees that no member of the Agents’ Group is or shall be required to
restrict its activities as a result of any Person serving as an Agent being an Agent Entity, and
that each Agent Entity may undertake any Activities without further consultation with or
notification to any Lender. None of (i) this Agreement or any other Loan

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Document, (ii) the
receipt by any Agent Entity of information concerning the Obligors or their Affiliates (including
information concerning the ability of the Obligors to perform their respective obligations
hereunder and under the other Loan Documents) or (iii) any other matter, shall give rise to any
fiduciary, equitable or contractual duties (including any duty of trust or confidence) owing by any
Agent Entity to any Lender including any such duty that would prevent or restrict any Agent Entity
from acting on behalf of customers (including the Obligors or their Affiliates) or for its own
account.

     Section 8.03. Exculpatory Provisions. The duties of the Administrative Agent are solely
ministerial and administrative in nature and each Agent shall not have any duties or obligations
except those expressly set forth herein and in the other Loan Documents. Without limiting the
generality of the foregoing, each Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, and shall not have, by reason hereof or any of the other
Loan Documents, a fiduciary relationship in respect of any Lender;

     (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that such Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly provided for herein or in
the other Loan Documents), provided that no Agent shall be required to take any action
that, in its opinion or the opinion of its counsel, may expose the Agent to liability or that is
contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
ILFC or any of its Affiliates that is communicated to or obtained by any Agent Entity in any
capacity.

     No Agent shall be liable for any action taken or not taken by it (i) with the consent or at
the request of the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Agent shall believe in good faith shall be necessary, under the circumstances
as provided in Section 8.02 and Article 5) or (ii) in the absence of its own gross negligence or
willful misconduct. Each Agent shall be deemed not to have knowledge of any Default unless and
until notice describing such Default is given to the Agent by ILFC, the Borrower or a Lender.

     No Agent Entity shall be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth anywhere herein, other than (but

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subject to the foregoing clause (ii)) to confirm receipt of items expressly required to be delivered to the Agent.

     Nothing in this Agreement or any other Loan Document shall require any Agent Entity to carry
out any “know your customer” or other checks in relation to any Person on behalf of any Lender and
each Lender confirms to each Agent that such Lender is solely responsible for any such checks such
Lender is required to carry out and that such Lender may not rely on any statement in relation to
such checks made by any Agent Entity.

     Section 8.04. Reliance by each Agent. Each Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. Each Agent also may rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a
Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender
unless the Administrative Agent shall have received notice to the contrary from such Lender prior
to the making of such Loan. Each Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

     Section 8.05. Delegation of Duties. Each Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents appointed by
such Agent. Each Agent and any such sub-agent may perform any and all of their duties and exercise
their rights and powers by or through their respective Representatives. Each such sub-agent and
Representative shall be entitled to the benefits of all provisions of this Section 8 and Section
9.03 and 9.16 (as though such sub-agents and Representatives were an “Agent” under the Loan
Documents) as if set forth in full herein with respect thereto.

     Section 8.06. Resignation and Removal of Administrative Agent. The Administrative Agent may
at any time give notice of its resignation to the Lenders and the Borrower, and may be removed at
any time by the Required Lenders by written notice. Upon receipt of any such notice of resignation
or upon any such removal, the Required Lenders shall have the right, with the consent of the
Borrower if no Event of Default has occurred and is continuing (not to be unreasonably withheld or
delayed), to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation or receives notice of its
removal, then the retiring Administrative Agent may on behalf of the Lenders, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation or removal shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative

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Agent shall be discharged from its
duties and obligations hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender directly, until such time as the Required Lenders (with
the consent of the Borrower as provided above) appoint a successor Administrative Agent as provided
for above in this Section. Upon the acceptance of a successor’s appointment as Administrative
Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder or under
the other Loan Documents (if not already discharged therefrom as provided above in this Section).
The fees payable by the Borrower to a successor Administrative Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Borrower and such successor. After
the retiring Administrative Agent’s resignation or removal hereunder and under the other Loan
Documents, the provisions of this Article and Section 9.03 shall continue in effect for the benefit
of such retiring Administrative Agent, its sub-agents and their respective Representatives in
respect of any actions taken or omitted to be taken by any of them while the retiring
Administrative Agent was acting as Administrative Agent.

     Section 8.07. Non-Reliance on Agents and Other Lenders. (a) Each Lender confirms to each
Agent, each other Lender and each of their respective Representatives that it (i) possesses
(individually or through its Representatives) such knowledge and experience in financial and
business matters that it is capable, without reliance on such Agent, any other Lender or any of
their respective Representatives, of evaluating the merits
and risks (including tax, legal, regulatory, credit, accounting and other financial matters)
of (x) entering into this Agreement, (y) making its Loans hereunder and (z) taking or not taking
actions hereunder and thereunder, (ii) is financially able to bear such risks and (iii) has
determined that entering into this Agreement and making its Loans hereunder and under the other
Loan Documents is suitable and appropriate for it.

          (b) Each Lender acknowledges that (i) it is solely responsible for making its own independent
appraisal and investigation of all risks arising under or in connection with this Agreement and the
other Loan Documents, (ii) it has, independently and without reliance upon either Agent, any other
Lender or any of their respective Representatives, made its own appraisal and investigation of all
risks associated with, and its own credit analysis and decision to enter into, this Agreement based
on such documents and information, as it has deemed appropriate and (iii) it will, independently
and without reliance upon either Agent, any other Lender or any of their respective
Representatives, continue to be solely responsible for making its own appraisal and investigation
of all risks arising under or in connection with, and its own credit analysis and decision to take
or not take action under, this Agreement and the other Loan Documents based on such documents and
information as it shall from time to time deem appropriate, which may include, in each case:

     (i) the financial condition, status and capitalization of the Borrower and each other
Obligor;

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     (ii) the legality, validity, effectiveness, adequacy or enforceability of this
Agreement and each other Loan Document and any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with any Loan
Document; or

     (iii) determining compliance or non-compliance with any condition hereunder to the
making of its Loans and the form and substance of all evidence delivered in connection with
establishing the satisfaction of each such condition;

     (iv) the adequacy, accuracy and/or completeness of the ILFC Materials and any other
information delivered by any Agent, any other Lender or any of their respective
Representatives under or in connection with this Agreement or any other Loan Document, the
transactions contemplated hereby and thereby or any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with any Loan
Document.

     Section 8.08. No Other Duties, etc. Anything herein to the contrary notwithstanding, none of
the Agents shall have any powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as an Agent or a Lender hereunder.

     Section 8.09. Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial
proceeding relative to any Obligor, the Administrative Agent (irrespective of whether the principal
of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall
be entitled and empowered, by intervention in such proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders and the Administrative Agent and their respective agents and counsel
and all other amounts due the Lenders and the Administrative Agent under Sections 2.07 and 9.03)
allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 2.07 and
9.03.

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     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

     Section 8.10. Collateral and Guaranty Matters. The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any Obligor from its
obligations under the Article 7 if such Person ceases to be a Borrower Party as a result of a
transaction permitted under Section 2.10 or 5.04. Upon request by the Administrative Agent at any
time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release
any Obligor from its obligations under Article 7 pursuant to this Section 8.10.

     Section 8.11. French Collateral. In accordance with Article 2328-1 of the French Civil Code,
each of the Administrative Agent, the Collateral Agent, the Lenders and each other Secured Party
agrees that the Collateral Agent, for the benefit of the Secured Parties, shall have the right to
constitute, register, manage and enforce each Lien in any Collateral granted pursuant to any
Security Document by any Borrower Party.

ARTICLE 9

Miscellaneous

     Section 9.01. Notices Generally. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b) below), all
notices and other communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or
electronic mail as follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to any Obligor or any Agent, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 9.01; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

     Notices and other communications sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received; notices and other
communications sent by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have been given at the
opening of business on the next business day for the recipient). Notices and other communications
delivered through electronic communications to the extent provided in subsection (b) below shall be
effective as provided in such subsection (b).

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     (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent. Each of the Lenders and each Obligor acknowledges
and agrees that the distribution of material through an electronic medium is not necessarily secure
and that there are confidentiality and other risks associated with such distribution. In
consideration for the convenience and other benefits afforded by such distribution and for the
other consideration provided hereunder, the receipt and sufficiency of which is hereby
acknowledged, each of the Lenders and each Obligor hereby approves distribution of notices and
other communications to the Lenders hereunder through the Platform and understands and assumes the
risks of such distribution. The Administrative Agent or the Borrower may, in its discretion, agree
to accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to particular
notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the
next business day for the recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the intended recipient at its
e-mail address as described in the foregoing clause (i) of notification that such notice or
communication is available and identifying the website address therefor.

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF ILFC MATERIALS OR THE
ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall any Agent or any of its Affiliates and their
respective partners, directors, officers, employees, agents, trustees and advisors (collectively,
the “Agent Parties”) have any liability to ILFC, the Borrower, any Lender or any other Person for
losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or
otherwise) arising out of the Borrower’s or any Agent’s transmission of ILFC Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities or expenses are
determined by a court of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to ILFC, the Borrower,
any Lender or any other Person for indirect, special, incidental, consequential or punitive damages
(as opposed to direct or actual damages).

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     (d) Change of Address, Etc. Each of the Borrower and each Agent may change its
address, telecopier or telephone number for notices and other communications hereunder by notice to
the other parties hereto. Each other Lender may change its address, telecopier or telephone number
for notices and other communications hereunder by notice to the Borrower and the Administrative
Agent. In addition, each Lender agrees to notify the Administrative Agent from time to time to
ensure that the Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each
Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at
all times have selected the “Private Side Information” or similar designation on the content
declaration screen of the Platform in order to enable such Public Lender or its delegate, in
accordance with such Public Lender’s compliance procedures and applicable Law, including United
States Federal and state securities laws, to make reference to ILFC Materials that are not made
available through the “Public Side Information” portion of the Platform and that may contain
material non-public information with respect to the Borrower or its securities for purposes of
United States Federal or state securities laws.

     (e) Reliance by Agents and Lenders. The Agents and the Lenders shall be entitled to
rely and act upon any notices purportedly given by or on behalf of the Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by
the recipient, varied from any confirmation thereof. The Borrower shall indemnify each Agent,
each Lender and the Representatives of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice purportedly given by or on
behalf of the Borrower. All telephonic notices to and other telephonic communications with each
Agent may be recorded by such Agent, and each of the parties hereto hereby consents to such
recording.

     Section 9.02. Waivers; Amendments. (a) No failure or delay by any Lender Party in exercising
any right or power hereunder or under any other Loan Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Lender Parties
under the Loan Documents are cumulative and are not exclusive of any rights or remedies that they
would otherwise have. No waiver of any provision of any Loan Document or consent to any departure
by any Obligor therefrom shall in any event be effective unless the same shall be permitted by
subsection (b) of this Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of the Loans shall not be construed as a waiver of any Default, regardless of
whether any Lender Party had notice or knowledge of such Default at the time.

     (b) No Loan Document or provision thereof may be waived, amended or modified except, in the
case of this Agreement, by an agreement or agreements in writing entered into or consented to by
the Borrower and the Administrative Agent (acting at the direction of the Required Lenders) or, in
the case of any other Loan Document, by an agreement or agreements in writing entered into by the
parties thereto with the written consent of the Administrative

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Agent (acting at the direction of
the Required Lenders); provided that without the consent of each affected Lender, no such
agreement shall have the effect of (i) increasing the Commitments or extending the Commitments of
such affected Lender; (ii) reducing the amount of principal, interest or fees owing to such
affected Lender; and (iii) changing the scheduled times or dates for payment of principal or
interest to such affected Lender (it being agreed that prepayments or repayments required under
Section 2.06 are excluded from this requirement); provided further that without the
consent of all of the Lenders, no such agreement shall have the effect of (i) changing the
Loan-To-Value Ratio that is required to be maintained, (ii) releasing all or substantially all of
the Collateral prior to the repayment of the Loans in full, (iii) amending the definition of
Required Lenders, (iv) amending the definition of Permitted Liens or (v) permitting a Lien which is
not a Permitted Lien and is attributable to a deliberate action by any Borrower Party to grant such
Lien; provided further that without the consent of Lenders holding greater than 66
2/3% of the amount equal to the sum of the aggregate amount of the unused Aggregate Commitments
plus the aggregate outstanding principal amount of the Loans, no such agreement shall have the
effect of amending Section 9.05 in a way that would put any further restrictions on assignments of
Loans, except with the agreement of any affected Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Collateral Agent
without such Person’s prior written consent; provided further that no provision of
this Section 9.02(b) requiring the consent of a certain percentage of Lenders or of a Person may be
amended or modified unless at least such percentage of Lenders or such Person (as applicable)
consents to such amendment or modification. Any purported waiver, amendment or other
modification of any Loan Document or any provision thereof that does not comply with this Section
9.02(b) shall be null and void and of no legal effect. Notwithstanding the foregoing, the
Administrative Agent or the Collateral Agent may enter into any amendment, supplement or
modification of a Loan Document without the consent of any Lender to (a) evidence the succession of
a Person to any Obligor and the assumption by such successor of the covenants of such Obligor in
any Loan Document, (b) add to the covenants of any Obligor in any Loan Document for the benefit of
the Lenders or surrender any right or power conferred upon an Obligor in any Loan Document, (c) add
any additional Events of Default, (d) provide additional collateral as security for the Guaranteed
Obligations, (e) evidence the release of Liens on the Collateral as permitted by (and in accordance
with) Section 2.10 hereof or Section 7 of the Security Agreement, (f) to add an Obligor or to
release an Obligor from its obligations under the Loan Documents as permitted by (and in accordance
with) Section 2.10, (g) to evidence and provide for the acceptance of appointment hereunder by a
successor Administrative Agent in accordance with Article 8, (h) to correct drafting errors in the
Loan Documents or (i) supplement this Agreement by means of an Incremental Lender Assumption
Agreement.

     (c) Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right
to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or
consent which by its terms requires the consent of all Lenders or each affected Lender may be
effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x)
neither of the Commitment and the principal amount of the Loans of any Defaulting Lender may be
increased or extended, and the maturity of any Loans of any Defaulting Lender may not be extended,
in each case without the consent of such Lender and (y) any waiver, amendment or modification
requiring the consent of all Lenders or each affected

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Lender that by its terms affects any
Defaulting Lender more adversely than other affected Lenders shall require the consent of such
Defaulting Lender.

     Section 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower agrees to pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and the Collateral Agent in
connection with the conditions precedent to each Advance Date, the administration of this Agreement
and the other Loan Documents, and any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions hereby or thereby contemplated shall be consummated),
any out-of-pocket expenses incurred by the Administrative Agent and the Collateral Agent in
connection with the enforcement or protection of the Secured Parties’ rights in connection with the
Agreement and the other Loan Documents and expenses incurred during any workout, restructuring or
negotiations in respect of any Loans or any Loan Documents, including in each case the reasonable
fees, charges and disbursements of counsel engaged by the Administrative Agent or the Collateral
Agent (including the allocated fees of in-house counsel), and (ii) any out-of-pocket expenses
incurred by any Lender Party during the continuance of a Default or Event of Default in connection
with the enforcement, protection or restructuring of its rights in respect of any Loans or any Loan
Documents and reasonable out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of any Loans or any Loan Documents, including in each case the reasonable
fees, charges and disbursements of counsel, accountants, financial
advisers and other experts engaged by such Lender Party (including the allocated fees of
in-house counsel).

     (b) The Borrower agrees to indemnify each Lender Party and each of their respective
Representatives (each such Person being called an “Indemnitee”) against, and to hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,
including reasonable counsel fees, charges and disbursements (exclusive however of Taxes, it being
understood that the sole indemnification provided by the Borrower to the Indemnitees in respect of
Taxes is set forth in Section 2.08), incurred by or asserted against any Indemnitee arising out of,
in any way connected with or as a result of any claim, litigation, investigation or proceeding,
whether or not any Indemnitee is a party thereto (and regardless of whether such matter is
initiated by a third party or by the Borrower, any other Obligor or any of their respective
Affiliates) relating to:

     (i) the execution or delivery of this Agreement or any other Loan Document or any
agreement or instrument contemplated hereby or thereby, or any amendment, supplement or
waiver thereto, the performance by the parties thereto of their respective obligations
thereunder or the consummation of the transactions contemplated thereby;

     (ii) the use of the proceeds of the Loans; or

     (iii) any actual or alleged presence or release of Hazardous Materials on any property
currently or formerly owned, leased, operated or used by any Obligor or any of its
Subsidiaries, or any Environmental Liability related in any way to any Obligor or any of its
Subsidiaries;

provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are determined by a court of
competent

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jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

     If any Indemnitee is entitled to indemnification under this Section 9.03 with respect to any
action or proceeding brought by a third party that is also brought against any Obligor, the
relevant Obligor will be entitled to assume the defense of any such action or proceeding with
counsel reasonably satisfactory to the Indemnitee. Upon assumption by such Obligor of the defense
of any such action or proceeding, the Indemnitee will have the right to participate in such action
or proceeding and to retain its own counsel but such Obligor will not be liable for any legal
expenses of other counsel subsequently incurred by such Indemnitee in connection with the defense
thereof unless (i) such Obligor has agreed to pay such fees and expenses, (ii) such Obligor will
have failed to employ counsel reasonably satisfactory to the Indemnitee in a timely manner or (iii)
the Indemnitee will have been advised by counsel that there are actual or potential conflicts of
interest between any Obligor and the Indemnitee, including situations in which there are one or
more legal defenses available to the Indemnitee that are different from or additional to those
available to any Obligor, except that to the extent (x) there is more than one claim and (y) each
actual or potential conflict of interest applies to fewer than all of such claims and can be
isolated by separating into separate lawsuits or proceedings such claims in which an actual or
potential conflict of interest arises (with respect to which lawsuits or proceedings such
Obligor will be responsible for legal expenses of the Indemnitee’s counsel) from those in
which no actual or potential conflict of interest arises (with respect to which lawsuits or
proceedings such Obligor will not be responsible for legal expenses of the Indemnitee’s counsel).
No Obligor will consent to the terms of any compromise or settlement of any action defended by any
Obligor in accordance with the foregoing without the prior consent of the applicable Indemnitees,
provided that such consent of the applicable Indemnitees shall not be unreasonably withheld
if such compromise or settlement (i) includes an unconditional release of such Indemnitees from all
liability arising out of such action and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act, by or on behalf of any Indemnitee.

     An Indemnitee must provide reasonably prompt notice to the applicable Obligor of any claim for
which indemnification is sought, provided that the failure to provide notice shall only
limit the indemnification provided hereby to the extent of any incremental expense or actual
prejudice as a result of such failure, and must not make any admission of liability or incur any
significant expenses after receiving actual notice of the claim or agree to any settlement without
the written consent of such Obligor, such consent not to be unreasonably withheld.

     (c) No Obligor shall assert, and it waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby, the transactions contemplated by the
Loan Documents, the Loans or the use of the proceeds thereof. No Indemnitee shall be liable for
any damages arising from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through telecommunications, electronic
or other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for direct or actual
damages resulting from the gross negligence or willful

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misconduct of such Indemnitee as determined
by a final and nonappealable judgment of a court of competent jurisdiction.

     (d) The provisions of Section 2.08 and this Section 9.03 shall remain operative and in full
force and effect regardless of the expiration of the term of this Agreement or any other Loan
Document, the consummation of the transactions contemplated hereby and thereby, the repayment of
the Loan, the invalidity or unenforceability of any term or provision of this Agreement or any
other Loan Document or any investigation made by or on behalf of any Lender Party. All amounts due
under this Section 9.03 shall be payable not later than ten Business Days after written demand
therefor.

     (e) To the extent that the Borrower for any reason fails to indefeasibly pay any amount
required under subsection (a) or (b) of this Section to be paid by it to any Agent (or any
sub-agent thereof) or any Representative thereof, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent) or such Representative, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the applicable Agent (or any such sub-agent) in its capacity as
such, or against any Representative of any of the foregoing acting for the Administrative Agent
(or any such sub-agent) in connection with such capacity. The obligations of the Lenders
under this subsection (c) are subject to the provisions of Section 2.09(e).

     (f) To the extent that any payment by or on behalf of the Borrower is made to any Lender
Party, or any Lender Party exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by such Lender Party in
its discretion) to be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such setoff had not occurred, and (b)
each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share
(without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under
clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the
termination of this Agreement.

     (g) The agreements in this Section shall survive the resignation of any Agent, the replacement
of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

     Section 9.04. Successors and Assigns. The provisions of this Agreement shall be binding on
and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that (i) other than as provided in Section 2.10 or Section 5.17 hereof,
the Borrower may not assign, delegate or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent (and any

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attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no
Lender may assign, delegate or otherwise transfer its rights or obligations hereunder except in
accordance with Section 9.05. Nothing in this Agreement, expressed or implied, shall be construed
to confer upon any Person (except the parties hereto, their respective successors and assigns
permitted hereby and, to the extent expressly provided herein, the Representatives of the Lender
Parties) any legal or equitable right, remedy or claim under or by reason of this Agreement.

     Section 9.05. Assignments by Lenders. (a) Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it); provided that
any such assignment shall be subject to the following conditions:

(i) Minimum Amounts.

(A) in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the
case of an assignment to a Lender or an Affiliate of a Lender, no minimum amount
need be assigned; and

(B) in any case not described in clause (i)(A) of this Section, the aggregate amount
of the Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $10,000,000 (or such lower
amount that is the entire outstanding amount of the Loans held by such Lender)
unless each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such consent not
to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent assignments
from members of an Assignee Group to a single Eligible Assignee (or to an Eligible
Assignee and members of its Assignee Group) will be treated as a single assignment
for purposes of determining whether such minimum amount has been met.

(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this
Agreement with respect to the Loans or the Commitment assigned.

(iii) Required Consents. No consent shall be required for any assignment except to
the extent required by subsection (a)(i)(B) of this Section and, in addition:

(A) the consent of the Borrower (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment to any Person unless (1) an Event of
Default has occurred and is continuing at the time of such assignment or

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(2) such
assignment is to an Agent Entity, a Lender or an Affiliate of a Lender;
provided that such Person shall not be engaged primarily in the aircraft
leasing business or aviation advisory business or be an air carrier; and

(B) notice to the Administrative Agent shall be required.

(iv) Assignment and Assumption. The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee in the amount of $3,500; provided, however, that (x) the
Administrative Agent may, in its sole discretion, elect to waive such processing and
recordation fee in the case of any assignment and (y) for the avoidance of doubt, neither
the Borrower nor any Obligor will be obligated to pay all or any portion of such processing
and recordation fee. The assignee, if it is not a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

(v) No Assignment to Certain Persons. No such assignment shall be made (A) to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries, (B) to any Defaulting
Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder,
would constitute any of the foregoing Persons described in this clause (B), (C) to a Person
who is not an Eligible Assignee or (D) to a Person engaged primarily in the aircraft leasing
business or aviation advisory business or who is an air carrier.

(vi) Certain Additional Payments. In connection with the assignment of rights and
obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless
and until, in addition to the other conditions thereto set forth herein, the parties to the
assignment shall make such additional payments to the Administrative Agent in an aggregate
amount sufficient, upon distribution thereof as appropriate (which may be outright payment,
purchases by the assignee of participations or subparticipations, or other compensating
actions, including funding, with the consent of the Borrower and the Administrative Agent,
the applicable pro rata share of Loans previously requested but not funded by the Defaulting
Lender, to each of which the applicable assignee and assignor hereby irrevocably consent),
to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender
to the Administrative Agent or any Lender hereunder (and interest accrued thereon) and (y)
acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with
its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment
of rights and obligations of any Defaulting Lender hereunder shall become effective under
applicable Law without compliance with the provisions of this paragraph, then the assignee
of such interest shall be deemed to be a Defaulting Lender for all purposes of this
Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (b)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning

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Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 2.08, 2.09 and 9.03 with respect to facts and circumstances
occurring prior to the effective date of such assignment and shall not be released from its
obligations under Section 9.14. Upon request, the Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender.

     Without limiting the foregoing, if any Lender assigns any of its rights or obligations under
this Agreement to an assignee and, as a result of circumstances existing at the date on which such
assignment occurs, the Borrower would be obliged to make a payment to such assignee under Sections
2.08 or 2.09, then the rights of such assignee to receive payment under such Sections by reference
to the circumstances existing as at the date of such assignment (or a continuation of such
circumstances) shall be limited to the extent of the entitlement of such assigning Lender had such
assignment not occurred.

     (b) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Commitments of, and principal amounts and stated interest of the Loans
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders
shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. In
addition, the Administrative Agent shall maintain on the Register information regarding the
designation, and revocation of designation, of any Lender as a Defaulting Lender. The Register
shall be available for inspection by the Borrower and any Lender, at any reasonable time and from
time to time upon reasonable prior notice.

     (c) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than (a) a
natural person or (b) the Borrower or any of the Borrower’s Affiliates or Subsidiaries (each, a
"Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations,
(iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement and (iv) such participation shall not be to a Person engaged primarily in the aircraft
leasing business or aviation advisory business or who is an air carrier.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in Section 9.02(b) that
affects such Participant. Subject to subsection (d) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.08 and 2.09 to the same extent as if

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it
were a Lender and had acquired its interest by assignment pursuant to the foregoing provisions of
this Section 9.05.

     (d) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment from the Borrower under Section 2.08 or 2.09 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant, and
the Borrower shall have no obligations to make greater aggregate payments under Sections 2.08 and
2.09 to or for the account of the applicable Lender and the Participant following the grant of such
Participation unless the sale of the participation to such Participant is made with the Borrower’s
prior written consent. A Participant shall not be entitled to the benefits of Section 2.08 unless
the Borrower is notified of the participation sold to such Participant and such Participant agrees,
for the benefit of the Borrower, to comply with Section 2.08 and 9.06 as though it were a Lender.

     (e) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, to a Federal Reserve Bank or other similar central bank;
provided
that no such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     Section 9.06. Replacement of Lenders. If (i) any Lender requests compensation under Section
2.08, (ii) the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.08 (including, without limitation, by
reason of a Market Disruption Event), (iii) any Lender is a Defaulting Lender or (iv) any Lender
does not consent to a waiver, amendment or other modification or request made by the Borrower in
respect of any Loan Document, then the Borrower may, at its sole expense and effort, upon notice to
such Lender and the Administrative Agent, prepay such Lender in full without any Premium Amount (or
with Premium Amount, solely in respect of prepayments pursuant to clause (iv) above) on a
non-prorata basis or require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Sections 9.04 and
9.05), all of its interests, rights and obligations in its capacity as a Lender under this
Agreement and the related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 9.05;

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans, accrued interest thereon, accrued fees, Premium Amount (in the case of a assignment due
to an occurrence described in clause (iv) of the first paragraph of Section 9.06) and all other
amounts payable to it hereunder and under the other Loan Documents (including any amounts under
Section 2.09) from the assignee (to the extent of such outstanding principal and accrued interest
and fees) or the Borrower (in the case of all other amounts);

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     (c) in the case of any such assignment resulting from a claim for compensation under Section
2.09 or payments required to be made pursuant to Section 2.08, such assignment will result in a
reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable laws.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

     Section 9.07. Survival. All covenants, agreements, representations and warranties made by the
Obligors in the Loan Documents and in certificates or other instruments delivered in connection
with or pursuant to the Loan Documents shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of the Loan Documents and the making of
the Loans, regardless of any investigation made by any such other party or on its behalf and
notwithstanding that any Lender Party may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as any principal of or accrued interest on the Loans or
any fee or other amount payable hereunder is outstanding and unpaid.

     Section 9.08. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents and each Fee Letter constitute the entire contract
among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. Except as
provided in Section 4.01, this Agreement (i) will become effective when the Lenders shall have
signed this Agreement and received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto and (ii) thereafter will be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy will be effective as
delivery of a manually executed counterpart of this Agreement.

     Section 9.09. Severability. If any provision of any Loan Document is invalid, illegal or
unenforceable in any jurisdiction then, to the fullest extent permitted by law, (i) such provision
shall, as to such jurisdiction, be ineffective to the extent (but only to the extent) of such
invalidity, illegality or unenforceability, (ii) the other provisions of the Loan Documents shall
remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Lender Parties in order to carry out the intentions of the parties thereto as nearly as may be
possible and (iii) the invalidity, illegality or unenforceability of any such provision in any
jurisdiction shall not affect the validity, legality or enforceability of such provision in any
other jurisdiction. Without limiting the foregoing provisions of this Section 9.09, if and to the
extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders
shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent,
then such provisions shall be deemed to be in effect only to the extent not so limited.

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     Section 9.10. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     Section 9.11. Jurisdiction; Consent to Service of Process. (a) To the extent permitted by
applicable law, party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of any New York State court or federal court of the United
States of America sitting in New York County, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or the other Loan Documents, 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 shall affect any right that any Lender Party may otherwise have to bring any action
or proceeding relating to this Agreement or the other Loan Documents against any Obligor or its
properties in the courts of any jurisdiction.

     (b) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection that 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 or the other
Loan Documents in any New York State or federal court. 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.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     Section 9.12. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY 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 ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 AND THE OTHER LOAN DOCUMENTS,
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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     Section 9.13. Headings. Article and Section headings and the Table of Contents herein are for
convenience of reference only, are not part of this Agreement and shall not affect the construction
of, or be taken into consideration in interpreting, this Agreement.

     Section 9.14. Confidentiality. Each of the Lender Parties agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, trustees, advisors and representatives (it being understood that the Persons to
whom such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the
same as, or more restrictive than, those of this Section, to (i) any permitted assignee of or
Participant in, or any prospective permitted assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the
consent of the Borrower, (h) to any rating agency when required by it, provided that, prior
to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of
any confidential information relating to Obligors received by it from any Agent or any Lender or
(i) to the extent such Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to the Administrative Agent or any Lender or any of
their respective Affiliates on a nonconfidential basis from a source other than the Borrower. With
respect to any disclosure under Section 9.14(c), each of the Administrative Agent and the Lenders,
as applicable, shall use commercially reasonable efforts to promptly notify the Borrower, to the
extent legally permissible and practicable under the circumstances, so as to permit the Borrower to
obtain a protective order as to such disclosure, and each of the Administrative Agent and the
Lenders will reasonably cooperate to the extent practicable and permitted by their respective then
existing policies) with the Borrower for such purpose.

     For purposes of this Section, “Information” means all non-public information received
from ILFC or any Subsidiary relating to ILFC or any Subsidiary or any of their respective
businesses, other than any such information that is available to the applicable Person on a
nonconfidential basis prior to disclosure by ILFC or any Subsidiary, provided that, in the
case of information received from ILFC or any Subsidiary after the date hereof, such information is
clearly identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

     Each of the Administrative Agent and the Lenders acknowledges that (a) the Information may
include material non-public information concerning ILFC or a Subsidiary, as the case may be, (b) it
has developed compliance procedures regarding the use of material non-public

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information and (c) it
will handle such material non-public information in accordance with applicable Law, including
United States Federal and state securities Laws. Notwithstanding anything herein to the contrary,
in no event shall any Lender Party provide information concerning ILFC or its Subsidiaries or any
Affiliate, Lease or Lessee that is not publicly available to any Affiliate, agent or other
representative of such Lender Party that is engaged primarily in the aircraft leasing business or
aviation advisory business or is an air carrier (provided that the Collateral Agent may provide any
Subsidiary or Affiliate of the Collateral Agent that administers filings on the International
Registry on behalf of the Collateral Agent from time to time any information to the extent required
in connection with making the Required Cape Town Registrations).

     Section 9.15. Right of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender (except a Defaulting Lender) and each of their respective Affiliates is hereby
authorized at any time and from time to time to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand, provisional or final,
in whatever currency) at any time held and other obligations (in whatever currency) at any time
owing by such Lender or any such Affiliate to or for the credit or the account of any Obligor
against any and all of the obligations of such Obligor now or hereafter existing under this
Agreement or any other Loan Document to such Lender, irrespective of whether or not such Lender
shall have made any demand under this Agreement or any other Loan Document and although such
obligations of such Obligor may be contingent or unmatured or are owed to a branch or office of
such Lender different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender and their respective Affiliates under this Section are in
addition to other rights and remedies (including other rights of setoff) that such Lender or such
Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative Agent
promptly after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

     Section 9.16. No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated by the Loan Documents (including in connection with any amendment, waiver
or other modification hereof or of any other Loan Document), each Obligor acknowledges and agrees
that: (i) each of the Agent Entities may have economic interests that conflict with those of the
Borrower, its equity holders and/or its Affiliates; (ii) the arranging or other services regarding
this Agreement provided by each Agent Entity are arm’s-length commercial transactions between the
Borrower, each other Obligor and their respective Affiliates, on the one hand, and such Agent
Entity, on the other hand, and each Obligor is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions contemplated by the
Loan Documents; (iii) in connection with the transactions contemplated by the Loan Documents and
the process leading thereto, each Agent Entity is and has been acting solely as a principal and is
not the financial advisor, agent or fiduciary, for any Obligor or any Obligor’s management,
Affiliates, stockholders or other equity holders, creditors or employees or any other Person; (iv)
no Agent Entity has assumed or will assume an advisory, agency or fiduciary responsibility in favor
of any Obligor, or any of their respective equity holders or Affiliates with respect to any of the
transactions contemplated by the Loan Documents (or the exercise of rights or remedies with respect
thereto) or the process leading thereto (irrespective of whether any Agent Entity has advised or is
currently advising any Obligor, or any of their respective equity holders or Affiliates on other
matters) and no Agent

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Entity has any obligation to any Obligor or any of their respective
Affiliates with respect to the transactions contemplated by the Loan Documents except those
obligations expressly set forth therein; (v) any Agent Entity may be engaged in a broad range of
transactions that involve interests that differ from the Obligors and the Obligors’ respective
affiliates and no Agent Entity will have any obligation to disclose any of such interests by virtue
of any advisory, agency or fiduciary relationship; (vi) the Agent Entities provide services to,
invest in investment vehicles that invest in, and engage in other activities and relationships with
entities and persons, including entities and persons who may be involved in
transactions arising from or relating to the transactions contemplated by the Loan Documents,
or be customers or competitors of, or have other relationships with, the Borrower, and in the
course of such other activities and relationships the Agent Entities may acquire information of the
transactions contemplated by the Loan Documents or other entities and persons which may be the
subject of the transactions contemplated by the Loan Documents, none of the Agent Entities shall
have any obligation to disclose to any Obligor any such information or the fact that any Agent
Entity has possession of such information, or use such information on the Borrower’s behalf; and
(vii) no Agent Entity has provided any legal, accounting, regulatory or tax advice with respect to
any of the transactions contemplated hereby and the Obligors have consulted their own legal,
accounting, regulatory and tax advisors to the extent the Obligor have deemed appropriate. Each
Agent is serving as an independent contractor under a Fee Letter or the Loan Documents, as
applicable, and in connection with the performance of its services hereunder and nothing in any Fee
Letter or the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency
relationship or fiduciary or other implied duty between any Agent Entity, on the one hand, and any
Obligor, or its respective equity holders or Affiliates, on the other hand. Each Obligor hereby
waives and releases, to the fullest extent permitted by law, any claims that it may have that any
Agent Entity has rendered advisory services of any nature or respect, or owes a fiduciary or
similar duty to any Obligor in connection with the transactions contemplated by the Loan Documents
or the process leading thereto, or against any Agent Entity with respect to any breach or alleged
breach of agency or fiduciary duty.

     Each Obligor and its Affiliates’ rights and obligations under any other agreement with any
Agent Entity that currently or hereafter may exist are, and shall be, separate and distinct from
the rights and obligations of the parties under the Loan Documents, and none of such rights and
obligations under such other agreements shall be affected by any Agent Entity’s performance or lack
of performance of services under the Loan Documents or any Fee Letter. The Obligors acknowledge
that one or more Agent Entity may currently or in the future participate in other debt or equity
transactions on behalf of or render financial advisory services to an Obligor or other companies
that may be involved in a competing transaction. The Agent Entities are full service financial
services firms engaged, either directly or through affiliates, in various activities, including
securities trading, investment banking and financial advisory, investment management, principal
investment, hedging, financing and brokerage activities and financial planning and benefits
counseling for both companies and individuals. In the ordinary course of these activities, the
Agent Entities may make or hold a broad array of investments and actively trade debt and equity
securities (or related derivative securities) and/or financial instruments (including bank loans)
for their own account and for the accounts of their customers and may at any time hold long and
short positions in such securities and/or instruments. Such investment and other activities may
involve securities and instruments of any Obligor, as well as

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of other Persons and their Affiliates
which may (i) be involved in transactions arising from or relating to the engagement contemplated
by any Fee Letter or the Loan Documents, (ii) be customers or competitors of an Obligor or (iii)
have other relationships with an Obligor. In addition, any Agent Entity may provide investment
banking, underwriting and financial advisory services to such other Persons. Any Agent Entity may
also co-invest with, make direct investments in, and invest or co-invest client monies in or with
funds or other investment vehicles may trade or make investments in securities of Obligors or such
other Persons. The transactions contemplated by the Loan Documents may have a direct or indirect
impact on the investments, securities or instruments referred to in this paragraph. Each Obligor
hereby agrees
that any Agent Entity may render its services under any Fee Letter and the Loan Documents
notwithstanding any actual or potential conflict of interest presented by the foregoing, and each
Obligor hereby waives any conflict of interest claims relating to the relationship between any
Agent Entity, and any Obligor or their respective Affiliates, in connection with the engagement
contemplated by any Fee Letter or the Loan Documents, on the one hand, and the exercise by any
Agent Entity of any of its rights and duties under any other credit or other agreement, on the
other hand. The terms of this paragraph shall survive the expiration or termination of any Fee
Letter and the Loan Documents.

     Section 9.17. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if
at any time the interest rate applicable to the Loans, together with all fees, charges and other
amounts that are treated as interest on the Loans under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) that may be contracted for,
charged or otherwise received by the Lenders in accordance with applicable law, the rate of
interest payable in respect of the Loans hereunder, together with all Charges payable in respect
thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of the Loans but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges payable to the Lenders in
respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor)
until the Lenders shall have received such cumulated amount, together with interest thereon at the
Federal Funds Rate to the date of payment.

     Section 9.18. USA Patriot Act. Each Lender that is subject to the Patriot Act and the
Administrative Agent (for itself and not on behalf of any Lender) hereby notifies ILFC and the
Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and
record information that identifies ILFC and the Borrower, which information includes the name and
address of ILFC and the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify ILFC and the Borrower in accordance with the
Patriot Act. Each of ILFC and the Borrower shall, promptly following a request by the
Administrative Agent or any Lender, provide all documentation and other information that the
Administrative Agent or such Lender requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations, including the
Patriot Act.

[Signature pages follow.]

Term Loan Credit Agreement

105

 

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

	 	 	 	 	 
	 	TEMESCAL AIRCRAFT INC.

 	 
	 	By:  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Treasurer 	 
	 
	 	INTERNATIONAL LEASE FINANCE
     CORPORATION

 	 
	 	By:  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Senior Vice President &
 Treasurer 	 
	 
	 	PARK TOPANGA AIRCRAFT INC.

 	 
	 	By:  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Treasurer 	 
	 
	 	CHARMLEE AIRCRAFT INC.

 	 
	 	By:  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Treasurer 	 
	 
	 	BALLYSKY AIRCRAFT IRELAND
     LIMITED

 	 
	 	By:  	/s/ Niall C. Sommerville
 	 
	 	 	Name:  	Niall C. Sommerville 	 
	 	 	Title:  	Director 	 
	 

Term Loan Credit Agreement

106

 

	 	 	 	 	 
	 	CITIBANK, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Thomas Hollahan
 	 
	 	 	Name:  	Thomas Hollahan 	 
	 	 	Title:  	Managing Director and 
Vice President 	 
	 
	 	CITIBANK, N.A., as Collateral Agent

 	 
	 	By:  	/s/ Thomas Hollahan
 	 
	 	 	Name:  	Thomas Hollahan 	 
	 	 	Title:  	Managing Director and Vice President 	 
	 
	 	CITIGROUP GLOBAL MARKETS
      INC., as Lead Agent

 	 
	 	By:  	/s/ Thomas Bliemel
 	 
	 	 	Name:  	Thomas Bliemel 	 
	 	 	Title:  	Managing Director 	 
	 
	 	CREDIT SUISSE SECURITIES (USA)
      LLC, as Lead
Agent

 	 
	 	By:  	/s/ Scott Corman
 	 
	 	 	Name:  	Scott Corman 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BNP PARIBAS, as Joint Agent

 	 
	 	By:  	/s/ Robert Papas
 	 
	 	 	Name:  	Robert Papas 	 
	 	 	Title:  	Director, Transportation 
Group - Aviation
Finance 	 
	 
	 	By:  	/s/ Stephanie Klein
 	 
	 	 	Name:  	Stephanie Klein 	 
	 	 	Title:  	Vice President, Aviation
Finance Group -
Americas 	 

Term Loan Credit Agreement

107

 

	 	 	 	 	 
	 	CITIBANK N.A., as Lender

 	 
	 	By:  	/s/ Thomas Hollahan
 	 
	 	 	Name:  	Thomas Hollahan 	 
	 	 	Title:  	Managing Director and
 Vice President 	 
	 
	 	CREDIT SUISSE AG, CAYMAN 
     ISLANDS BRANCH, as
Lender

 	 
	 	By:  	/s/ Jay Chall
 	 
	 	 	Name:  	Jay Chall 	 
	 	 	Title:  	Director 	 
	 
	 	By:  	/s/
Kathrin Marti
 	 
	 	 	Name:  	Kathrin Marti	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	BNP PARIBAS, as Lender

 	 
	 	By:  	/s/ Robert Papas
 	 
	 	 	Name:  	Robert Papas 	 
	 	 	Title:  	Director,
Transportation
 Group
- Aviation Finance 	 
	 
	 	By:  	/s/ Stephanie Klein
 	 
	 	 	Name:  	Stephanie Klein 	 
	 	 	Title:  	Vice President,
Aviation 

Finance Group - Americas 	 
	 
	 	DVB BANK SE, as Lender

 	 
	 	By:  	/s/ Hassan Pirbhai
 	 
	 	 	Name:  	Hassan Pirbhai 	 
	 	 	Title:  	Vice President 	 
	 
	 	By:  	/s/ Masa Kubo
 	 
	 	 	Name:  	Masa Kubo 	 
	 	 	Title:  	Senior Vice President 	 
	 

Term Loan Credit Agreement

108

 

	 	 	 	 	 
	 	DBS BANK LTD., as Lender

 	 
	 	By:  	/s/ Ong Sie Wei
 	 
	 	 	Name:  	Ong Sie Wei	 
	 	 	Title:  	Vice President 	 
	 
	 	SCOTIABANK EUROPE PLC, as Lender

 	 
	 	By:  	/s/ Richard Walsh
 	 
	 	 	Name:  	Richard Walsh 	 
	 	 	Title:  	Associate Director 	 
	 
	 	SUMITOMO MITSUI BANKING
      CORPORATION, as Lender

 	 
	 	By:  	/s/ Natsuhiro Samejima
 	 
	 	 	Name:  	Natsuhiro Samejina 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	UNITED OVERSEAS BANK LIMITED,
        as Lender

 	 
	 	By:  	/s/ Karunia W. Tjuradi
 	 
	 	 	Name:  	Karunia W. Tjuradi 	 
	 	 	Title:  	Managing Director
 Corporate Banking 
Regional 	 
	 	 	 
	 	By:  	/s/ Benny Lim
 	 
	 	 	Name:  	Benny Lim 	 
	 	 	Title:  	Executive Director,
 Strategic Client
Coverage,
 Corporate Banking
 Regional 	 
	 

Term Loan Credit Agreement

109

 

	 	 	 	 	 
	 	DEUTSCHE BANK AG, LONDON 
     BRANCH, as
Lender

 	 
	 	By:  	/s/ Pamela H. Smith
 	 
	 	 	Name:  	Pamela H. Smith 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	/s/ Ian Faraday
 	 
	 	 	Name:  	Ian Faraday 	 
	 	 	Title:  	Director 	 
	 
	 	UNICREDIT BANK AG, LONDON
      BRANCH, as
Lender

 	 
	 	By:  	/s/
George Gierhart
 	 
	 	 	Name:  	George Gierhart	 
	 	 	Title:  	Director 	 
	 	 	 
	 	By:  	/s/ Whiteford
 	 
	 	 	Name:  	Whiteford 	 
	 	 	Title:  	Vice President 	 
	 
	 	INDUSTRIAL AND COMMERCIAL
      BANK OF CHINA (EUROPE)
S.A..,
      as Lender

 	 
	 	By:  	/s/ Lu Hongqin
 	 
	 	 	Name:  	Lu Hongqin 	 
	 	 	Title:  	Deputy General Manager 	 
	 
	 	THE TOKYO STAR BANK, LIMITED,
      as
Lender

 	 
	 	By:  	/s/
Robert M. Berardy
 	 
	 	 	Name:  	Robert M. Berardy	 
	 	 	Title:  	Chief Executive Officer and

Representative Executive Officer	 

Term Loan Credit Agreement

110

 

	 	 	 	 	 
	 	AOZORA BANK, LTD., as Lender

 	 
	 	By:  	/s/ Koji Yamakoshi
 	 
	 	 	Name:  	Koji Yamakoshi 	 
	 	 	Title:  	General Manager 	 
	 
	 	NEC CAPITAL SOLUTIONS LIMITED,
        as Lender

 	 
	 	By:  	/s/ Shigeho Tanaka
 	 
	 	 	Name:  	Shigeho Tanaka 	 
	 	 	Title:  	President 	 
	 
	 	CRÉDIT INDUSTRIEL ET
       COMMERCIAL,
as Lender

 	 
	 	By:  	/s/ Adrienne Molloy
 	 
	 	 	Name:  	Adrienne Molloy 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By:  	/s/ Andrew McKuin
 	 
	 	 	Name:  	Andrew McKuin 	 
	 	 	Title:  	Vice President 	 
	 

Term Loan Credit Agreement

111

 

SCHEDULE 3.14

OBLIGOR INFORMATION

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Employer or
	 	 	 	 	 	 	 	 	Taxpayer
	 	 	 	 	Jurisdiction of	 	 	 	Identification
	Name of Obligor	 	Chief Executive Office	 	Incorporation	 	Entity Type	 	Number
	INTERNATIONAL LEASE 

FINANCE CORPORATION

	 	10250 Constellation
Blvd.,
Suite 3400

Los Angeles, CA 90067
	 	California
	 	Corporation
	 	22-3059110
	 
	 	 	 	 	 	 	 	 
	TEMESCAL AIRCRAFT
INC.

	 	10250 Constellation
Blvd.,
Suite 3400

Los Angeles, CA 90067
	 	California
	 	Corporation
	 	27-5306297
	 
	 	 	 	 	 	 	 	 
	PARK TOPANGA
AIRCRAFT INC.

	 	10250 Constellation
Blvd.,
Suite 3400

Los Angeles, CA 90067
	 	California
	 	Corporation
	 	27-5306173
	 
	 	 	 	 	 	 	 	 
	CHARMLEE AIRCRAFT
INC.

	 	10250 Constellation
Blvd.,
Suite 3400

Los Angeles, CA 90067
	 	California
	 	Corporation
	 	27-5304959
	 
	 	 	 	 	 	 	 	 
	BALLYSKY AIRCRAFT 

IRELAND LIMITED

	 	30 North Wall Quay,

Dublin 1

Ireland
	 	Ireland
	 	Private limited

liability company
	 	IE 9778900 I

Term Loan Credit Agreement

3.14-1

 

 

SCHEDULE 3.17(a)

PS POOL AIRCRAFT

Pool Aircraft

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	Engine Manufacturer	 	 	 	 
	 	 	Manufacturer and	 	Airframe	 	and	 	 	 	Country of
	 	 	Model	 	MSN	 	Engine Model	 	Lessee	 	Registration
	 
	 

Undelivered Pool Aircraft

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	Engine Manufacturer	 	 	 	 
	 	 	Manufacturer and	 	Airframe	 	and	 	 	 	Country of
	 	 	Model	 	MSN	 	Engine Model	 	Lessee*	 	Registration*
	1

	 	Airbus A319-100
	 	 	1884	 	 	CFM International

CFM56-5B6/P
	 	***
	 	Kingdom of Bahrain
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2

	 	Airbus A319-100
	 	 	2004	 	 	International Aero

Engines V2524-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	3

	 	Airbus A319-100
	 	 	2194	 	 	International Aero

Engines V2524-A5
	 	***
	 	United Kingdom
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	4

	 	Airbus A319-100
	 	 	2232	 	 	International Aero

Engines V2524-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	5

	 	Airbus A319-100
	 	 	2720	 	 	International Aero

Engines V2524-A5
	 	***
	 	United Kingdom
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	6

	 	Airbus A319-100
	 	 	3114	 	 	International Aero

Engines V2527M-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	7

	 	Airbus A319-100
	 	 	3116	 	 	International Aero

Engines V2527M-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	8

	 	Airbus A319-100
	 	 	3124	 	 	International Aero

Engines V2527M-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	9

	 	Airbus A320-200
	 	 	1424	 	 	International Aero

Engines V2527-A5
	 	***
	 	United Kingdom
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10

	 	Airbus A320-200
	 	 	2024	 	 	CFM International

CFM56-5B4/P
	 	***
	 	Switzerland
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	11

	 	Airbus A320-200
	 	 	2142	 	 	CFM International

CFM56-5B4/P
	 	***
	 	Malta
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	12

	 	Airbus A320-200
	 	 	2594	 	 	International Aero

Engines V2527-A5
	 	***
	 	New Zealand

 

			
	***	 	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(a)-1

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	Engine Manufacturer	 	 	 	 
	 	 	Manufacturer and	 	Airframe	 	and	 	 	 	Country of
	 	 	Model	 	MSN	 	Engine Model	 	Lessee*	 	Registration*
	13

	 	Airbus A320-200
	 	 	2768	 	 	CFM International

CFM56-5B4/P
	 	***
	 	Malta
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	14

	 	Airbus A320-200
	 	 	4619	 	 	International Aero

Engines V2527-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	15

	 	Airbus A321-200
	 	 	1658	 	 	CFM International

CFM56-5B3/P
	 	***
	 	France
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	16

	 	Airbus A321-200
	 	 	1695	 	 	International Aero

Engines V2533-A5
	 	***
	 	Hong Kong
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	17

	 	Airbus A321-200
	 	 	3067	 	 	International Aero

Engines V2533-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	18

	 	Airbus A321-200
	 	 	3075	 	 	International Aero

Engines V2533-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	19

	 	Airbus A321-200
	 	 	3112	 	 	International Aero

Engines V2533-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	20

	 	Airbus A330-200
	 	 	262	 	 	Pratt & Whitney

PW4168A
	 	***
	 	Vietnam
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	21

	 	Airbus A330-200
	 	 	275	 	 	Pratt & Whitney

PW4168A
	 	***
	 	Vietnam
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	22

	 	Airbus A330-200
	 	 	432	 	 	Pratt & Whitney

PW4168A
	 	***
	 	Germany
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	23

	 	Airbus A330-200
	 	 	454	 	 	Pratt & Whitney

PW4168A
	 	***
	 	Germany
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	24

	 	Airbus A330-200
	 	 	527	 	 	Rolls Royce PLC

TRENT 772B-60
	 	***
	 	Kingdom Of Bahrain
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	25

	 	Airbus A330-200
	 	 	811	 	 	General Electric

CF6-80E1-A3
	 	***
	 	Netherlands
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	26

	 	Boeing B737-700
	 	 	29372	 	 	CFM International

CFM56-7B24
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	27

	 	Boeing B737-800
	 	 	28252	 	 	CFM International

CFM56-7B27
	 	***
	 	Trinidad And Tobago
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	28

	 	Boeing B737-800
	 	 	30645	 	 	CFM International

CFM56-7B27
	 	***
	 	Trinidad and Tobago
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	29

	 	Boeing B737-800
	 	 	35274	 	 	CFM International

CFM56-7B24/3
	 	***
	 	Hong Kong
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	30

	 	Boeing B737-800
	 	 	35275	 	 	CFM International

CFM56-7B26/3
	 	***
	 	Czech Republic
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	31

	 	Boeing B737-800
	 	 	35279	 	 	CFM International

CFM56-7B26/3
	 	***
	 	France
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	32

	 	Boeing B737-800
	 	 	35280	 	 	CFM International

CFM56-7B26/3
	 	***
	 	Norway
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	33

	 	Boeing B737-800
	 	 	35283	 	 	CFM International

CFM56-7B26/3
	 	***
	 	Norway
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	34

	 	Boeing B737-800
	 	 	38819	 	 	CFM International

CFM56-7B26/3
	 	***
	 	France

 

			
	***	 	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(a)-2

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	Engine Manufacturer	 	 	 	 
	 	 	Manufacturer and	 	Airframe	 	and	 	 	 	Country of
	 	 	Model	 	MSN	 	Engine Model	 	Lessee*	 	Registration*
	35

	 	Boeing B737-800
	 	 	38820	 	 	CFM International

CFM56-7B26/3
	 	***
	 	Not currently

registered**
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	36

	 	Boeing B737-800
	 	 	38822	 	 	CFM International

CFM56-7B24/3
	 	***
	 	Not currently

registered**
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	37

	 	Boeing B737-800
	 	 	38823	 	 	CFM International

CFM56-7B24/3
	 	***
	 	Not currently

registered**
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	38

	 	Boeing B777-200ER
	 	 	27607	 	 	General Electric

GE90-90B
	 	***
	 	Vietnam
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	39

	 	Boeing B777-200ER
	 	 	27608	 	 	General Electric

GE90-90B
	 	***
	 	Vietnam
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	40

	 	Boeing B777-200ER
	 	 	28686	 	 	Pratt & Whitney

PW4090
	 	***
	 	South Korea
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	41

	 	Boeing B777-200ER
	 	 	29397	 	 	General Electric

GE90-94B
	 	***
	 	Netherlands
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	42

	 	Boeing B777-200ER
	 	 	29399	 	 	General Electric

GE90-94B
	 	***
	 	Netherlands
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	43

	 	Boeing B777-200ER
	 	 	29404	 	 	Rolls Royce PLC

TRENT 895-17
	 	***
	 	New Zealand
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	44

	 	Boeing B777-200ER
	 	 	32719	 	 	General Electric

GE90-94B
	 	***
	 	United States
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	45

	 	Boeing B777-300ER
	 	 	32723	 	 	General Electric

GE90-115BG01
	 	***
	 	France
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	46

	 	Boeing B777-300ER
	 	 	32728	 	 	General Electric

GE90-115BG02
	 	***
	 	United Arab Emirates

 

			
	*	 	As of the date of this Credit Agreement
	 
	**	 	Aircraft not yet delivered from manufacturer

	 
	***	 	 Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(a)-3

 

 

SCHEDULE 3.17(b)

LEASES

International Lease Finance Corporation (“ILFC”)

ILFC Ireland Limited (“ILFC Ireland”)

***

     Boeing B777-200ER aircraft bearing serial number 32719

Aircraft Lease Agreement dated as of December 23, 2004 between ***, as Lessee, and
ILFC, as Lessor.

***

     Airbus A320-200 aircraft bearing serial number 2142

Amended and Restated Aircraft Lease Agreement dated as of January 14, 2003 between
***, as Lessee, and ILFC, as Lessor.

     Airbus A320-200 aircraft bearing serial number 2768

Amended and Restated Aircraft Lease Agreement dated as of August 12, 2005 between
***, as Lessee, and ILFC, as Lessor.

***

     Airbus A320-200 aircraft bearing serial number 2594

Aircraft Lease Agreement dated as of October 30, 2002 between ***, as Lessee, and
ILFC, as Lessor.

     Boeing B777-200ER aircraft bearing serial number 29404

Aircraft Lease Agreement dated as of August 20, 2004 between ***, as Lessee, and
ILFC, as Lessor.

***

     Boeing B777-200ER aircraft bearing serial number 28686

Aircraft Lease Agreement dated as of July 11, 1997 between ***, as Lessee, and ILFC
Ireland, as Lessor.

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted
portions.

Term Loan Credit Agreement

3.17(b)-1

 

 

Aircraft Headlease Agreement dated as of July 11, 1997 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

***

     Airbus A320-200 aircraft bearing serial number 1424

Aircraft Lease Agreement dated as of August 12, 1997 between ***, as Lessee, and
ILFC, as Lessor.

     Airbus A319-100 aircraft bearing serial number 2194

Aircraft Lease Agreement dated as of October 17, 2003 between ***, as Lessee, and
ILFC, as Lessor.

     Airbus A319-100 aircraft bearing serial number 2720

Aircraft Lease Agreement dated as of September 30, 2005 between ***, as Lessee, and
ILFC, as Lessor.

***

     Boeing B737-800 aircraft bearing serial number 28252

Aircraft Lease Agreement dated as of December 3, 2010 between ***, as Lessee, and
Aircraft 73B-28252 Inc., as Lessor.

     Boeing B737-800 aircraft bearing serial number 30645

Aircraft Lease Agreement dated as of December 3, 2010 between ***, as Lessee, and
Aircraft 73B-30645 Inc., as Lessor.

***

     Airbus A319-100 aircraft bearing serial number 2004

Amended and Restated Aircraft Lease Agreement dated as of April 9, 2003, between
***, as Lessee, and ILFC Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of September 29, 2002 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

 

***   Indicates that certain information contained herein has been
omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to
the omitted portions.

Term Loan Credit Agreement

3.17(b)-2

 

     Airbus A319-100 aircraft bearing serial number 2232

Aircraft Lease Agreement dated as of November 4, 2003, between ***, as Lessee, ILFC
Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of November 4, 2003 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

Aircraft Lease Novation and Amendment Agreement dated December 31, 2004, between
ILFC Ireland, as Lessor, ***, as Existing Lessee, ***, as New Lessee, and ***, as
Consenting Party.

     Airbus A321-200 aircraft bearing serial number 3067

Aircraft Lease Agreement dated as of March 18, 2005, between ***, as Lessee, ILFC
Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of March 18, 2005 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

     Airbus A321-200 aircraft bearing serial number 3075

Aircraft Lease Agreement dated as of March 18, 2005 between ***, as Lessee, ILFC
Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of March 18, 2005 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

     Airbus A321-200 aircraft bearing serial number 3112

Aircraft Lease Agreement dated as of March 18, 2005 between ***, as Lessee, ILFC
Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of March 18, 2005 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

     Boeing B737-700 aircraft bearing serial number 29372

Aircraft Lease Agreement dated as of March 18, 2005 between ***, as Lessee, ILFC
Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of March 18, 2005 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

***

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted
portions.

Term Loan Credit Agreement

3.17(b)-3

 

     Boeing B777-300ER aircraft bearing serial number 32728

Aircraft Lease Agreement dated as of June 16, 2003 between ***, as Lessee, and ILFC,
as Lessor.

***

     Airbus A330-200 aircraft bearing serial number 527

Aircraft Lease Agreement dated as of July 30, 2008 between ***, as Lessee, and ILFC,
as Lessor.

     Airbus A319-100 aircraft bearing serial number 1884

Aircraft Lease Agreement dated as of July 3, 2008 between ***, as Lessee, and ILFC,
as Lessor.

***

     Boeing B737-800 aircraft bearing serial number 35274

Aircraft Lease Agreement dated as of April 24, 2007 between ***, as Lessee, and
ILFC, as Lessor.

***

     Airbus A321-200 aircraft bearing serial number 1695

Aircraft Lease Agreement dated as of November 9, 2000 between ***, as Lessee, and
ILFC, as Lessor.

***

     Airbus A330-200 aircraft bearing serial number 811

Aircraft Lease Agreement dated as of March 17, 2005 between ***, as Lessee, and
ILFC, as Lessor.

     Boeing B777-200ER aircraft bearing serial number 29397

Aircraft Lease Agreement dated as of January 10, 2003 between ***, as Lessee, and
ILFC, as Lessor.

     Boeing B777-200ER aircraft bearing serial number 29399

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(b)-4

 

Aircraft Lease Agreement dated as of January 10, 2003 between ***, as Lessee, and
ILFC, as Lessor.

***

     Boeing B737-800 aircraft bearing serial number 38822

Aircraft Lease Agreement dated as of March 26, 2010 between ***, as Lessee, and ILFC
Ireland, as Lessor.

     Boeing B737-800 aircraft bearing serial number 38823

Aircraft Lease Agreement dated as of March 26, 2010 between ***, as Lessee, and ILFC
Ireland, as Lessor.

***

     Airbus A330-200 aircraft bearing serial number 432

Aircraft Lease Agreement dated as of March 30, 2000 between ***, as Lessee, and ILFC
Ireland, as Lessor.

Lease Assignment dated August 16, 2010 between ILFC Aircraft 33A-432 Limited, as
Assignee, ILFC Ireland as Assignor and *** as Lessee.

     Airbus A330-200 aircraft bearing serial number 454

Aircraft Lease Agreement dated as of March 30, 2000 between ***, as Lessee, and ILFC
Ireland, as Lessor.

Aircraft Headlease Agreement dated as of March 30, 2000 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

***

     Boeing B737-800 aircraft bearing serial number 35280

Aircraft Lease Agreement dated as of October 4, 2007 between ***, as Lessee, and
ILFC, as Lessor.

     Boeing B737-800 aircraft bearing serial number 35283

Aircraft Lease Agreement dated as of October 4, 2007 between ***, as Lessee, and
ILFC, as Lessor.

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(b)-5

 

***

     Airbus A320-200 aircraft bearing serial number 4619

Aircraft Lease Agreement dated as of July 1, 2010 between ***, as Lessee and ILFC
Ireland, as Lessor.

***

     Airbus A319-100 aircraft bearing serial number 3114

Aircraft Lease Agreement dated as of October 31, 2006 between ***, as Lessee and
ILFC Ireland, as Lessor.

Aircraft Headlease Agreement dated as of October, 31, 2006 between ILFC Ireland, as
Lessee and ILFC, as Lessor.

     Airbus A319-100 aircraft bearing serial number 3116

Aircraft Lease Agreement dated as of October 31, 2006 between ***, as Lessee and
ILFC Ireland, as Lessor.

Aircraft Headlease Agreement dated as of October, 31, 2006 between ILFC Ireland, as
Lessee and ILFC, as Lessor.

     Airbus A319-100 aircraft bearing serial number 3124

Aircraft Lease Agreement dated as of October 31, 2006 between ***, as Lessee and
ILFC Ireland, as Lessor.

Aircraft Headlease Agreement dated as of October, 31, 2006 between ILFC Ireland, as
Lessee and ILFC, as Lessor.

***

     Airbus A321-200 aircraft bearing serial number 1658

Aircraft Lease Agreement dated as of December 20, 2001 between ***, as Lessee and
ILFC, as Lessor.

     Boeing B777-300ER aircraft bearing serial number 32723

Aircraft Lease Agreement dated as of December 7, 2000 between ***, as Lessee and
ILFC, as Lessor.

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term
Loan Credit Agreement

3.17(b)-6

 

***

     Airbus A320-200 aircraft bearing serial number 2024

Lease Agreement dated as of March 31, 2002 between ***, as Lessee, and ILFC, as
Lessor.

***

     Boeing B737-800 aircraft bearing serial number 35275

Aircraft Lease Agreement dated as of March 31, 2007 between ***, as Lessee and ILFC
Ireland, as Lessor.

Aircraft Headlease Agreement dated as of March 31, 2007 between ILFC Ireland, as
Lessee and ILFC, as Lessor.

***

     Boeing B737-800 aircraft bearing serial number 38820

Aircraft Lease Agreement dated as of August 10, 2010 between ***, as Lessee, and
ILFC, as Lessor.

***

     Airbus A330-200 aircraft bearing serial number 262

Aircraft Lease Agreement dated as of March 14, 2006 between ***, as Lessee, and
Sierra Leasing Limited, as Lessor.

Assignment, Assumption and Amendment Agreement dated as of January 20, 2009 by and
among Sierra Leasing Limited, as Assignor, ILFC, as Assignee, and ***, as Lessee.

Lease Assignment dated August 31, 2010 between Aircraft Lotus Inc., as Assignee,
ILFC, as Assignor, and ***, as Lessee.

     Airbus A330-200 aircraft bearing serial number 275

Aircraft Lease Agreement dated as of May 28, 2008 between ***, as Lessee, and ILFC,
as Lessor.

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(b)-7

 

Lease Assignment dated August 31, 2010 between Aircraft Lotus Inc., as Assignee,
ILFC, as Assignor, and ***, as Lessee.

     Boeing B777-200ER aircraft bearing serial number 27607

Aircraft Lease Agreement dated as of March 8, 2005 between ***, as Lessee, and ILFC,
as Lessor.

Lease Assignment dated August 31, 2010 between Aircraft Lotus Inc., as Assignee,
ILFC, as Assignor, and ***, as Lessee.

     Boeing B777-200ER aircraft bearing serial number 27608

Aircraft Lease Agreement dated as of March 8, 2005 between ***, as Lessee, and ILFC,
as Lessor.

Lease Assignment dated August 31, 2010 between Aircraft Lotus Inc., as Assignee,
ILFC, as Assignor, and ***, as Lessee.

***

     Boeing B737-800 aircraft bearing serial number 35279

Aircraft Lease Agreement dated as of May 24, 2007 between ***, as Lessee, and ILFC,
as Lessor.

     Boeing B737-800 aircraft bearing serial number 38819

Aircraft Lease Agreement dated as of February 18, 2010 between ***, as Lessee, and
ILFC, as Lessor.

 

***   Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

3.17(b)-8

 

SCHEDULE 9.01

NOTICES

If to any Obligor (other than Irish Subsidiary Holdco), to:

International Lease Finance Corporation

10250 Constellation Blvd., Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Telecopy No. (310) 788-1990

If to Irish Subsidiary Holdco, to:

Ballysky Aircraft Ireland Limited

c/o ILFC Ireland Limited

30 North Wall Quay

Dublin 1, Ireland

Facsimile: 353-1-672-0270

Telephone: 353-1-802-8901

with a copy to

International Lease Finance Corporation

10250 Constellation Blvd., Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Telecopy No. (310) 788-1990

If to the Administrative Agent, to:

Citibank, N.A.

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

If to the Collateral Agent, to:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

If to the Joint Agents, to:

Term Loan Credit Agreement

9.01-1

 

Citigroup Global Markets Inc.

390 Greenwich Street, 1st Floor

New York, NY 10013

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 5th Floor

New York, NY 10010

Attention: Stephen Marchi

Facsimile No. (212) 743-5442

BNP Paribas

Aviation Finance Group

520 Madison Avenue, 3rd Floor

New York, NY 10022

Attention: Robert Papas/Stephanie Klein

Facsimile No. (212) 841-2748

Term Loan Credit Agreement

9.01-2

 

EXHIBIT A

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	Applicable Percentage	 
	Citibank, N.A.
	 	$	150,000,000	 	 	 	11.325028313	%
	Credit Suisse AG, Cayman Islands Branch
	 	$	150,000,000	 	 	 	11.325028313	%
	BNP Paribas
	 	$	200,000,000	 	 	 	15.100037750	%
	DVB Bank SE
	 	$	200,000,000	 	 	 	15.100037750	%
	UniCredit Bank AG, London Branch
	 	$	100,000,000	 	 	 	7.550018875	%
	DBS Bank Ltd.
	 	$	75,000,000	 	 	 	5.662514156	%
	Scotiabank Europe plc
	 	$	75,000,000	 	 	 	5.662514156	%
	Sumitomo Mitsui Banking Corporation
	 	$	75,000,000	 	 	 	5.662514156	%
	United Overseas Bank Limited
	 	$	75,000,000	 	 	 	5.662514156	%
	Deutsche Bank AG, London branch
	 	$	75,000,000	 	 	 	5.662514156	%
	Crédit Industriel et Commercial
	 	$	40,000,000	 	 	 	3.020007550	%
	Industrial and Commercial Bank of
China (Europe) S.A.
	 	$	34,500,000	 	 	 	2.604756512	%
	The Tokyo Star Bank, Limited
	 	$	30,000,000	 	 	 	2.265005663	%
	Aozora Bank, Ltd.
	 	$	25,000,000	 	 	 	1.887504719	%
	NEC Capital Solutions Limited
	 	$	20,000,000	 	 	 	1.510003775	%
	 
	 	 	 	 	 	 
	Total
	 	$	1,324,500,000	 	 	 	100.000000000	%
	 
	 	 	 	 	 	 

Term Loan Credit Agreement

A-1

 

EXHIBIT B

FORM OF AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

[SEE ATTACHED]

Term Loan Credit Agreement

B-1

 

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

Dated as of March 30, 2011

among

PARK TOPANGA AIRCRAFT INC.,

TEMESCAL AIRCRAFT INC.,

BALLYSKY AIRCRAFT IRELAND LIMITED,

CHARMLEE AIRCRAFT INC.,

and

THE ADDITIONAL GRANTORS REFERRED TO HEREIN

as the Grantors

and

CITIBANK, N.A.,

as the Collateral Agent

 

 

T A B L E   O F   C O N T E N T S

	 	 	 	 	 
	 	 	PAGE
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	2	 
	Section 1.02 Construction and Usage
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II SECURITY
	 	 	8	 
	 
	 	 	 	 
	Section 2.01 Grant of Security
	 	 	8	 
	Section 2.02 Security for Obligations
	 	 	12	 
	Section 2.03 Representations and Warranties of the Grantors
	 	 	12	 
	Section 2.04 Grantors Remain Liable
	 	 	14	 
	Section 2.05 Delivery of Collateral
	 	 	14	 
	Section 2.06 As to the Assigned Documents
	 	 	15	 
	Section 2.07 As to the Pool Aircraft Collateral
	 	 	16	 
	Section 2.08 As to the Equity Collateral and Investment Collateral
	 	 	16	 
	Section 2.09 Further Assurances
	 	 	17	 
	Section 2.10 Place of Perfection; Records
	 	 	19	 
	Section 2.11 Voting Rights; Dividends; Etc.
	 	 	19	 
	Section 2.12 Transfers and Other Liens; Additional Shares or Interests
	 	 	20	 
	Section 2.13 Collateral Agent Appointed Attorney-in-Fact
	 	 	20	 
	Section 2.14 Collateral Agent May Perform
	 	 	21	 
	Section 2.15 Covenant to Pay
	 	 	21	 
	Section 2.16 Delivery of Collateral Supplements
	 	 	21	 
	Section 2.17 Identification of Collateral Agent’s Interest
	 	 	22	 
	Section 2.18 Insurance
	 	 	22	 
	Section 2.19 Covenant Regarding Control
	 	 	22	 
	Section 2.20 Covenant Regarding Collateral Account
	 	 	22	 
	Section 2.21 As to Irish Law
	 	 	22	 
	Section 2.22 Additional Charges Over Shares
	 	 	22	 
	 
	 	 	 	 
	ARTICLE III REMEDIES
	 	 	23	 
	 
	 	 	 	 
	Section 3.01 Remedies
	 	 	23	 
	Section 3.02 Priority of Payments
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IV SECURITY INTEREST ABSOLUTE
	 	 	24	 
	 
	 	 	 	 
	Section 4.01 Security Interest Absolute
	 	 	24	 
	 
	 	 	 	 
	ARTICLE V THE COLLATERAL AGENT
	 	 	25	 
	 
	 	 	 	 
	Section 5.01 Authorization and Action
	 	 	25	 
	Section 5.02 Absence of Duties
	 	 	25	 

Aircraft Mortgage and Security Agreement

i

 

	 	 	 	 	 

	 	 	PAGE
	Section 5.03 Representations or Warranties
	 	 	25	 
	Section 5.04 Reliance; Agents; Advice of Counsel
	 	 	26	 
	Section 5.05 Cape Town Convention
	 	 	27	 
	Section 5.06 No Individual Liability
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI SUCCESSOR COLLATERAL AGENT
	 	 	27	 
	 
	 	 	 	 
	Section 6.01 Resignation and Removal of the Collateral Agent
	 	 	27	 
	Section 6.02 Appointment of Successor
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VII INDEMNITY AND EXPENSES
	 	 	28	 
	 
	 	 	 	 
	Section 7.01 Indemnity
	 	 	29	 
	Section 7.02 Secured Parties’ Indemnity
	 	 	29	 
	Section 7.03 No Compensation from Secured Parties
	 	 	30	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS
	 	 	30	 
	 
	 	 	 	 
	Section 8.01 Amendments; Waivers; Etc
	 	 	30	 
	Section 8.02 Addresses for Notices; Delivery of Documents
	 	 	31	 
	Section 8.03 Remedies
	 	 	32	 
	Section 8.04 Severability
	 	 	32	 
	Section 8.05 Continuing Security Interest
	 	 	32	 
	Section 8.06 Release and Termination
	 	 	32	 
	Section 8.07 Currency Conversion
	 	 	33	 
	Section 8.08 Governing Law
	 	 	34	 
	Section 8.09 Jurisdiction; Consent to Service of Process
	 	 	34	 
	Section 8.10 Counterparts; Integration; Effectiveness
	 	 	34	 
	Section 8.11 Table of Contents, Headings, Etc
	 	 	35	 
	Section 8.12 Non-Invasive Provisions
	 	 	35	 
	Section 8.13 Limited Recourse
	 	 	36	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule I Aircraft Objects
	 	 	 	 
	Schedule II Pledged Equity Interests; Pledged Debt
	 	 	 	 
	Schedule III Trade Names
	 	 	 	 
	Schedule IV Chief Place of Business and Chief Executive or Registered Office
	 	 	 	 
	Schedule V Insurance
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A-1 Form of Collateral Supplement
	 	 	 	 
	Exhibit A-2 Form of Grantor Supplement
	 	 	 	 
	Exhibit B Form of Charge Over Shares of Irish Subsidiary Holdco
	 	 	 	 
	Exhibit C Form of Account Control Agreement
	 	 	 	 
	Exhibit D Form of FAA Aircraft Mortgage
	 	 	 	 

Aircraft Mortgage and Security Agreement

ii

 

	 	 	 	 	 

	Exhibit E Form of FAA Aircraft Mortgage and Lease Assignment
	 	 	 	 
	Exhibit F Form of FAA Lease Assignment
	 	 	 	 
	Exhibit G Notice of Assignment
	 	 	 	 

Aircraft Mortgage and Security Agreement

iii

 

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

          This AIRCRAFT MORTGAGE AND SECURITY AGREEMENT (this “Agreement”), dated as of March
30, 2011, is made among PARK TOPANGA AIRCRAFT INC., a California corporation (“Parent
Holdco”), TEMESCAL AIRCRAFT INC., a California corporation (the “Borrower”), BALLYSKY
AIRCRAFT IRELAND LIMITED, a private limited liability company incorporated under the laws of
Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT INC., a California corporation
(the “CA Subsidiary Holdco”) and the ADDITIONAL GRANTORS who from time to time become
grantors under this Agreement (together with Parent Holdco, the Borrower, the Irish Subsidiary
Holdco and the CA Subsidiary Holdco, the “Grantors”), and Citibank, N.A., a national
banking association (“Citibank”), as the collateral agent (in such capacity, and together
with any permitted successor or assign thereto or any permitted replacement thereof, the
“Collateral Agent”).

PRELIMINARY STATEMENTS:

          (1) International Lease Finance Corporation (“ILFC”), the Borrower, Parent Holdco, the
Irish Subsidiary Holdco, the CA Subsidiary Holdco, the lenders identified therein (the
“Lenders”), Citibank as the administrative agent (in such capacity, the “Administrative
Agent”) and the Collateral Agent have entered into the Term Loan Credit Agreement, dated as of
the date hereof (the “Credit Agreement”), pursuant to which the Lenders will make the Loans
to the Borrower.

          (2) ILFC is the direct or indirect owner of certain Aircraft and ILFC and certain of its
Affiliates are parties to lease and sub-lease contracts with respect to such Aircraft.

          (3) The Grantors may from time to time grant additional security for the benefit of the
Secured Parties, all in accordance with, and subject to the terms and conditions of this Agreement.

          (4) (a) Parent Holdco owns 100% of the outstanding capital stock of the Borrower, (b) the
Borrower owns 100% of the outstanding capital stock of the CA Subsidiary Holdco and 100% of the
Equity Interests of the Irish Subsidiary Holdco, (c) the Irish Subsidiary Holdco and the CA
Subsidiary Holdco will acquire directly or indirectly (and subject to the Local Requirements
Exception), from time to time, 100% of the Equity Interests in Owner Subsidiaries that will, from
time to time on or after the Effective Date, acquire Pool Aircraft from ILFC or its Affiliates and
(d) CA Subsidiary Holdco or Irish Subsidiary Holdco will acquire directly or indirectly (and
subject to the Local Requirements Exception) 100% of the Equity Interests of any Intermediate
Lessee that will, from time to time after the Effective Date, act as leasing intermediary with
respect to certain Pool Aircraft.

          (5) The Grantors in each case party thereto have agreed pursuant to the Credit Agreement, and
it is a condition precedent to the making of the Loans by the Lenders under the Credit Agreement,
that the Grantors grant the security interests required by this Agreement.

          (6) Each Grantor will derive substantial direct and indirect benefit from the transactions
described above.

Aircraft Mortgage and Security Agreement

 

 

          (7) Citibank is willing to act as the Collateral Agent under this Agreement.

          NOW, THEREFORE, in consideration of the premises, each Grantor hereby agrees with the
Collateral Agent for its respective benefit and the benefit of the other Secured Parties as
follows:

ARTICLE I

DEFINITIONS

          Section 1.01 Definitions. (a) Certain Defined Terms. For the purposes of
this Agreement, the following terms have the meanings indicated below:

          “1881 Act” has the meaning set forth in Section 2.21.

          “Account Collateral” has the meaning specified in Section 2.01(h).

          “Account Control Agreement” means the collateral account control agreement in the form
attached hereto as Exhibit C in respect of the Collateral Account dated on or about the Effective
Date among the Securities Intermediary, the Borrower and the Collateral Agent.

          “Acquisition Agreement” means any agreement to provide warranties in respect of a Pool
Aircraft to a Grantor hereunder in connection with any agreement pursuant to which such Pool
Aircraft has been or will be acquired by such Grantor to the extent permitted to be assigned
without third party consent.

          “Additional Grantor” has the meaning specified in Section 8.01(b).

          “Agreed Currency” has the meaning specified in Section 8.07.

          “Agreement” has the meaning specified in the recital of parties to this Agreement.

          “Aircraft Documents” means all technical data, manuals and log books, and all inspection,
modification and overhaul records and other service, repair, maintenance and technical records in
respect of a Pool Aircraft that are Owned by a Grantor and required pursuant to applicable law to
be maintained with respect to such Pool Aircraft, and such term shall include all additions,
renewals, revisions and replacements of any such materials from time to time made, or required to
be made, pursuant to applicable law, and in each case in whatever form and by whatever means or
medium (including, without limitation, microfiche, microfilm, paper or computer disk) such
materials may be maintained or retained by the relevant Lessee.

          “Aircraft Objects” means, collectively, the Aircraft Objects (as defined in the Protocol)
described on Schedule I hereto, as supplemented by each Collateral Supplement and Grantor
Supplement.

          “Aircraft Purchase Collateral” has the meaning specified in Section 2.01(g).

Aircraft Mortgage and Security Agreement

2

 

          “Airframe” means, individually, each of the airframes described on Schedule I hereto, as
supplemented by any Collateral Supplement or Grantor Supplement.

          “Assigned Agreement Collateral” has the meaning specified in Section 2.01(f).

          “Assigned Agreements” has the meaning specified in Section 2.01(f)(i).

          “Assigned Documents” means, collectively, the Assigned Agreements, the Assigned Leases and the
Acquisition Agreements.

          “Assigned Lease Documents” means, collectively, the Assigned Agreements and the Assigned
Leases.

          “Assigned Leases” has the meaning specified in Section 2.01(b).

          “Beneficial Interest Collateral” has the meaning specified in Section 2.01(e).

          “Borrower” has the meaning specified in the preliminary statements of this Agreement.

          “Certificated Security” means a certificated security (as defined in Section 8-102(a)(4) of
the UCC) other than a Government Security.

          “Chattel Paper Original” has the meaning specified in Section 2.05.

          “Citibank” has the meaning specified in the recital of parties to this Agreement.

          “Collateral” has the meaning specified in Section 2.01.

          “Collateral Agent” has the meaning specified in the recital of parties to this Agreement.

          “Collateral Supplement” means a supplement to this Agreement in substantially the form
attached as Exhibit A-1 executed and delivered by a Grantor.

          “Credit Agreement” has the meaning specified in the preliminary statements to this Agreement.

          “Eligible Institution” means (a) Citibank in its capacity as the Collateral Agent under this
Agreement; (b) any bank not organized under the laws of the United States of America so long as it
has either (i) a long-term unsecured debt rating of A or better by Standard & Poor’s and A2 or
better by Moody’s or (ii) a short-term unsecured debt rating of A-1+ by Standard & Poor’s and P-1
or better by Moody’s; or (c) any bank organized under the laws of the United States of America or
any state thereof, or the District of Columbia (or any branch of a foreign bank licensed under any
such laws), so long as it (i) has either (A) a long-term unsecured debt rating of A or better by
each of Standard & Poor’s and Moody’s or (B) a short-term unsecured debt rating of A-l+ by Standard
& Poor’s and P-1 by Moody’s and (ii) can act as a securities intermediary under the New York
Uniform Commercial Code.

Aircraft Mortgage and Security Agreement

3

 

          “Engine” means, individually, each of the aircraft engines described on Schedule I hereto, as
supplemented by each Collateral Supplement and Grantor Supplement.

          “Equity Collateral” has the meaning specified in Section 2.08(a).

          “Event of Default” means any Event of Default (as defined in the Credit Agreement).

          “Excluded Property” shall mean (a) proceeds of public liability insurance (or government or
other Person (including the Manufacturer, the Lessee and any sublessee of the Lessee) indemnities
in lieu thereof) paid or payable as a result of insurance claims made, or losses suffered, by any
Grantor or their Affiliates, (b) proceeds of insurance maintained by any Grantor or their
Affiliates for its or their own account or benefit (whether directly or through a Grantor) and not
required by this Agreement, and proceeds of insurance in excess of the amounts required hereunder,
(c) any general, Tax or other indemnity payments, expenses, reimbursements and similar payments and
interest in respect thereof paid or payable in favor of any Grantor or their Affiliates or their
respective successors or assigns, officers, directors, employees, agents, managers and servants,
including any such payments pursuant to any Lease, except to the extent such Grantor or Affiliate
owes such amounts in respect of the same claim to a Secured Party, (d) any security interest held
by a Grantor or any of its Affiliates in any assets of a Lessee or any sublessee thereof or of any
of their Affiliates (other than the security deposit or a letter of credit in lieu thereof), which
secure obligations (other than owing solely under the Assigned Lease Documents) owed by such
Lessee, sublessee or Affiliate pursuant to a grant of collateral under documents other than solely
under the Assigned Lease Documents, (e) cash payments in respect of Collateral or Indebtedness
subject to the Intercreditor Agreement after such payments are made by a Grantor to a non-Grantor,
(f) any interest that pursuant to a Lease may from time to time accrue in respect of any of the
amounts described in clauses (a) through (e) above, (g) the proceeds from the enforcement of any
right to enforce the payment of any amount described in clauses (a) to (f) above, and (h) any right
to exercise any election or option or make any decision or determination, or to give or receive any
notice, consent, waiver or approval, or to take any other action in respect of, but in each case,
only to the extent relating to, any Excluded Property.

          “FAA Aircraft Mortgage” means an FAA Aircraft Mortgage substantially in the form attached as
Exhibit D.

          “FAA Aircraft Mortgage and Lease Security Assignment” means an FAA Aircraft Mortgage and Lease
Security Assignment substantially in the form attached as Exhibit E.

          “FAA Lease Security Assignment” means the Lease Security Assignment in substantially the form
attached as Exhibit F hereto.

          “Government Security” means any security issued or guaranteed by the United States of America
or an agency or instrumentality thereof that is maintained in book-entry on the records of the
FRBNY and is subject to Revised Book-Entry Rules.

          “Grantor Supplement” means a supplement to this Agreement in substantially the form attached
as Exhibit A-2 executed and delivered by a Grantor.

Aircraft Mortgage and Security Agreement

4

 

          “Grantors” has the meaning specified in the recital of parties to this Agreement.

          “ILFC” has the meaning specified in the recital of parties in this Agreement.

          “Instrument” means any “instrument” as defined in Section 9-102(a)(47) of the UCC.

          “Insurances” means, in relation to each Pool Aircraft, any and all contracts or policies of
insurance and reinsurance complying with the provisions of Schedule V hereto or an indemnity from a
Governmental Authority as indemnitor, as appropriate, and required to be effected and maintained in
accordance with this Agreement.

          “Lease Assignment Documents” means, in respect of any Assigned Lease, (a) any agreement
providing for the novation thereof to substitute, or the assignment thereof to, a Grantor as the
lessor, (b) any agreement or instrument supplemental to this Agreement for the purpose of effecting
and/or perfecting the assignment of, and the grant of a lien upon, such Assigned Lease in favor of
the Collateral Agent under any applicable law (other than the law of the State of New York) in each
case to the extent required by the Express Perfection Requirements, (c) any notice provided to the
applicable Lessee of the assignment thereof pursuant to this Agreement and/or such supplement and
(d) any undertaking of quiet enjoyment given by the Collateral Agent in respect thereof.

          “Lease Collateral” has the meaning specified in Section 2.01(b).

          “Lenders” has the meaning specified in the preliminary statements to this Agreement.

          “Membership Interest Collateral” has the meaning specified in Section 2.01(d).

          “Parent Holdco” has the meaning specified in the recital of parties in to Agreement.

          “Parts” means all appliances, parts, components, instruments, appurtenances, accessories,
furnishings, seats and other equipment of whatever nature (other than (a) Engines or engines, and
(b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other
equipment that would qualify as a removable part and is leased by a Lessee from a third party or is
subject to a security interest granted to a third party), that may from time to time be installed
or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom
and, if the applicable Pool Aircraft or Engine is subject to a Lease, is owned by a Grantor
hereunder under the terms of such Lease.

          “Pledged Beneficial Interests” means all of the beneficial interest in the Pledged Equity
Parties described in the attached Schedule II, as supplemented by any Collateral Supplement or
Grantor Supplement.

          “Pledged Borrower Debt” means any and all Indebtedness from time to time owing by the Borrower
to any Borrower Party.

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          “Pledged CA Subsidiary Holdco Debt” means any and all Indebtedness from time to time owing by
the CA Subsidiary Holdco to any Borrower Party.

          “Pledged Debt” means the Pledged Parent Holdco Debt, the Pledged Borrower Debt, the Pledged
Irish Subsidiary Holdco Debt, the Pledged CA Subsidiary Holdco Debt, the Pledged Owner Subsidiary
Debt and the Pledged Intermediate Lessee Debt.

          “Pledged Debt Collateral” has the meaning assigned to such term in Section 2.01(c)(iii).

          “Pledged Equity Interests” means the Pledged Beneficial Interests, the Pledged Membership
Interests and the Pledged Stock.

          “Pledged Equity Party” means the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary
Holdco, each Owner Subsidiary and each Intermediate Lessee.

          “Pledged Intermediate Lessee Debt” means any and all Indebtedness from time to time owing by
any Intermediate Lessee to any Borrower Party.

          “Pledged Irish Subsidiary Holdco Debt” means any and all Indebtedness from time to time owing
by the Irish Subsidiary Holdco to any Borrower Party.

          “Pledged Owner Subsidiary Debt” means any and all Indebtedness from time to time owing by any
Owner Subsidiary to any Borrower Party.

          “Pledged Membership Interests” means all of the membership interests in the Pledged Equity
Parties described in the attached Schedule II, as supplemented by any Collateral Supplement or
Grantor Supplement.

          “Pledged Parent Holdco Debt” means any and all Indebtedness from time to time owing by Parent
Holdco to any Borrower Party.

          “Pledged Stock” means the outstanding shares of capital stock and/or issued share capital of
the Pledged Equity Parties described in the attached Schedule II, as supplemented by any Collateral
Supplement or Grantor Supplement.

          “Received Currency” has the meaning specified in Section 8.07.

          “Related Collateral Documents” means a letter of credit, third-party or bank guarantee or cash
collateral provided by or on behalf of a Lessee pursuant to the terms of a Lease of a Pool Aircraft
to secure such Lessee’s obligations under a Lease, in each case to the extent assignable without
the consent of a third party.

          “Relevant FAA Aircraft Mortgages” means, collectively, the FAA Aircraft Mortgages.

          “Relevant FAA Aircraft Mortgages and Lease Security Assignments” means, collectively, the FAA
Aircraft Mortgage and Lease Security Assignments.

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          “Relevant FAA Lease Security Assignments” means, collectively, the FAA Lease Security
Assignments.

          “Revised Book-Entry Rules” means 31 C.F.R. § 357 (Treasury bills, notes and bonds); 12 C.F.R.
§ 615 (book-entry securities of the Farm Credit Administration); 12 C.F.R. §§ 910 and 912
(book-entry securities of the Federal Home Loan Banks); 24 C.F.R. § 81 (book-entry securities of
the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation); 12
C.F.R. § 1511 (book-entry securities of the Resolution Funding Corporation); 31 C.F.R. § 354
(book-entry securities of the Student Loan Marketing Association); and any substantially comparable
book-entry rules of any other Federal agency or instrumentality.

          “Secured Obligations” has the meaning assigned to the term “Obligations” in the Credit
Agreement.

          “Secured Party” means any of or, in the plural form, all of the Lender Parties.

          “Securities Account” means a securities account as defined in Section 8-501(a) of the UCC
maintained in the name of the Collateral Agent as “entitlement holder” (as defined in Section
8-102(a)(7) of the UCC) on the books and records of a Securities Intermediary whose “securities
intermediary’s jurisdiction” (within the meaning of Section 8-110(e) of the UCC) is the State of
New York.

          “Securities Intermediary” means any “securities intermediary” with respect to the Collateral
Agent as defined in 31 C.F.R. Section 357.2 or Section 8-102(a)(14) of the UCC.

          “Security Collateral” has the meaning specified in Section 2.01(c).

          “Uncertificated Security” means an uncertificated security (as defined in Section 8-102(a)(18)
of the UCC) other than a Government Security.

          (b) Terms Defined in the Cape Town Convention. The following terms shall have the
respective meanings ascribed thereto in the Cape Town Convention: “Administrator”, “Contracting
State”, “Contract of Sale”, “International Interest”, “Professional User Entity”, “Prospective
International Interest”, “situated in” and “Transacting User Entity”.

          (c) Terms Defined in the Credit Agreement. For all purposes of this Agreement, all
capitalized terms used but not defined in this Agreement shall have the respective meanings
assigned to such terms in the Credit Agreement.

          Section 1.02 Construction and Usage. Unless the context otherwise requires:

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

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

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

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

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

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

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

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

          (i) Where any payment is to be made, funds applied or any calculation is to be made hereunder
on a day which is not a Business Day, unless any Loan Document otherwise provides, such payment
shall be made, funds applied and calculation made on the next succeeding Business Day, and payments
shall be adjusted accordingly; provided, however, that no additional interest shall
be due in respect of such delay.

ARTICLE II

SECURITY

          Section 2.01 Grant of Security.

          To secure the Secured Obligations, each Grantor hereby assigns and pledges to the Collateral
Agent, for its benefit and the benefit of the other Secured Parties, and hereby grants to the
Collateral Agent for its benefit and the benefit of the other Secured Parties a security interest
in, all of such Grantor’s right, title and interest in and to the following, whether now owned or
hereafter acquired (collectively, the “Collateral”):

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          (a) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
(i) each Pool Aircraft, including the Airframe and Engines with respect to such Pool Aircraft as
the same is now and will hereafter be constituted, and in the case of such Engines, whether or not
any such Engine shall be installed in or attached to the Airframe or any other airframe, together
with (ii) all Parts of whatever nature, which are from time to time relating to any Airframe or
Engine, including all substitutions, renewals and replacements of and additions, improvements,
accessions and accumulations to the Airframe and Engines (other than additions, improvements,
accessions and accumulations which constitute appliances, parts, instruments, appurtenances,
accessories, furnishings or other equipment excluded from the definition of Parts), (iii) all
Aircraft Documents and (iv) any money or non-money proceeds of an Airframe or Engine arising from
the total or partial loss or destruction of such Airframe or its Engine or its total or partial
confiscation, condemnation or requisition up to the amount of hull insurance in respect of such
Pool Aircraft required to be carried hereunder;

          (b) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
all Leases to which such Grantor is or may from time to time be party with respect to the Pool
Aircraft, including any leasing arrangements with respect to such Pool Aircraft among Grantors with
respect to such Leases together with all Related Collateral Documents, but not including any
Assigned Agreement (all such Leases and Related Collateral Documents, the “Assigned
Leases”), including, without limitation, (i) all rights of such Grantor to receive moneys due
and to become due under or pursuant to such Assigned Leases, (ii) all rights of such Grantor to
receive proceeds of any insurance, indemnity, warranty or guaranty with respect to such Assigned
Leases up to the amount of hull insurance in respect of such Pool Aircraft required to be carried
hereunder, (iii) claims of such Grantor for damages arising out of or for breach or default under
such Assigned Leases, (iv) all rights under any such Assigned Lease with respect to any subleases
of the Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor to terminate
such Assigned Leases and to compel performance of, and otherwise to exercise all remedies under,
any Assigned Lease, whether arising under such Assigned Leases or by statute or at law or in equity
(the “Lease Collateral”);

          (c) with respect to each Grantor, all of the following (the “Security Collateral”):

          (i) the Pledged Stock and the certificates representing such Pledged Stock, and all
dividends, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

          (ii) all additional shares of the capital stock of any other Pledged Equity Party from
time to time acquired by such Grantor in any manner, including the capital stock of any
other Pledged Equity Party that may be formed from time to time,
and all certificates, if any, representing such additional shares of the capital stock
and all dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all such
additional shares; and

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          (iii) the Pledged Debt and all instruments evidencing the Pledged Debt, and all
interest, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Debt (the
“Pledged Debt Collateral”);

          (d) with respect to each Grantor, all of the following (the “Membership Interest
Collateral”):

          (i) the Pledged Membership Interests, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Membership
Interests, any contracts and instruments pursuant to which any such Pledged Membership
Interests are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Membership Interests; and

          (ii) all of such Grantor’s right, title and interest in all additional membership
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the membership interests in any other Pledged Equity Party that may be
formed from time to time, and all certificates, if any, from time to time representing such
additional membership interests and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all such additional membership interests;

          (e) with respect to each Grantor, all of the following (the “Beneficial Interest
Collateral”):

          (i) the Pledged Beneficial Interest, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Beneficial
Interest, any contracts and instruments pursuant to which any such Pledged Beneficial
Interest are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Beneficial Interest; and

          (ii) all of such Grantor’s right, title and interest in all additional beneficial
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the beneficial interests in any other Pledged Equity Party that may be
formed from time to time, the trust agreements and any other contracts and instruments
pursuant to which any such Pledged Equity Party is created or issued, and all certificates,
if any, from time to time representing such additional beneficial interests and all
distributions, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or
all such additional beneficial interests;

          (f) with respect to each Grantor, all of the following (the “Assigned Agreement
Collateral”):

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               (i) all of such Grantor’s right, title and interest in and to all security assignments,
cash deposit agreements and other security agreements executed in its favor in respect of
any Pool Aircraft (including any Airframe and any Engine) or in respect of or pursuant to
any Assigned Lease, in each case as such agreements may be amended or otherwise modified
from time to time, but only to the extent such security assignment, cash deposit agreement
or other security agreement is provided to the Grantor by (a) a Person (other than the
Lessee or any of its Affiliates under an Assigned Lease and other than a sublessee or any of
its Affiliates under a sublease) or (b) the Lessee or a sublessee or any of their Affiliates
and (with respect to this clause (b)) related to arrangements described in the definition of
“Local Requirements Exception” or a trust, conditional sale or similar arrangement described
in the definition of “Own” (collectively, the “Assigned Agreements”); and

               (ii) all of such Grantor’s right, title and interest in and to all underlying property
of whatever nature, in each case pledged, assigned or transferred to it or mortgaged or
charged in its favor pursuant to any Assigned Agreement;

          (g) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
the Acquisition Agreements (the “Aircraft Purchase Collateral”);

          (h) with respect to each Grantor, all right of such Grantor in and to the Collateral Account
and all funds, cash, investment property, investments, securities, instruments or other property
(including all “financial assets” within the meaning of Section 8-102(a)(9) of the UCC) at any time
or from time to time credited to any such account (collectively, the “Account Collateral”);

          (i) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
the personal property identified as subject to the Lien hereof in a Grantor Supplement or a
Collateral Supplement executed and delivered by such Grantor to the Collateral Agent; and

          (j) all proceeds of any and all of the foregoing Collateral (including proceeds that
constitute property of the types described in subsections (a), (b), (c), (d), (e), (f), (g), (h)
and (i) of this Section 2.01);

provided, however, that notwithstanding any of the foregoing provisions, so long as
no Event of Default shall have occurred and be continuing and the Loans have been accelerated and
for so long as such acceleration shall not have been rescinded, each Grantor shall have the right,
to the exclusion of the Collateral Agent, to (i) all distributions, cash, instruments and other
property from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Collateral (other than the Pledged Debt) and (ii) all interest,
cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Pledged Debt, and once paid by a
Grantor to a non-Grantor,
shall be free and clear of the Lien hereof and shall not constitute Collateral, and if an Event of
Default shall have occurred and be continuing and the Loans have been accelerated and for so long
as such acceleration shall not have been rescinded, no Grantor shall make any such payment to a
non-Grantor without the Collateral Agent’s consent; provided further that the
Collateral shall not include any Excluded Property. The foregoing provisos shall in no event give
rise to any

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right on behalf of any Obligor to cause the release of amounts from the Collateral
Account other than in accordance with the Loan Documents.

          Section 2.02 Security for Obligations. This Agreement secures the payment and
performance of all Secured Obligations of the Grantors to each Secured Party (subject to the
subordination provisions of this Agreement) and shall be held by the Collateral Agent in trust for
the Secured Parties. Without limiting the generality of the foregoing, this Agreement secures the
payment of all amounts that constitute part of the Secured Obligations and would be owed by any
Grantor to any Secured Party but for the fact that Secured Obligations are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such
Grantor.

          Section 2.03 Representations and Warranties of the Grantors. Each Grantor represents
and warrants as of the date of this Agreement, the Effective Date, each Advance Date in respect of
which such Grantor is a Relevant Advance Party and as of each date on which such Grantor executes
and delivers a Grantor Supplement or a Collateral Supplement, as follows:

          (a) Each Pool Aircraft is legally and beneficially Owned by the Owner Subsidiary identified in
the applicable Advance Request or legally Owned by the Owner Subsidiary and beneficially Owned by a
Subsidiary Holdco or Owner Subsidiary, except to the extent of the Local Requirements Exception and
as provided in the definition of “Own”. None of the Pool Aircraft Assets or the Collateral has
been sold in violation of the provisions of the Loan Documents, or is currently pledged, assigned
or otherwise encumbered except for Permitted Liens, and no Pool Aircraft Assets or Collateral are
described in (i) any UCC financing statements filed against any Obligor other than UCC financing
statements which have been (or have been agreed by the secured parties referenced therein to be)
terminated and UCC Financing Statements filed in connection with Permitted Liens or (ii) any other
mortgage registries, including the International Registry (which for the avoidance of doubt, shall
not include any Contract of Sale), or filing records that may be applicable to the Collateral in
any other relevant jurisdiction, other than such filings or registrations that have been (or have
been agreed by the secured parties referenced therein to be) terminated or that have been made in
connection with Permitted Liens. Except to the extent of the Local Requirements Exception and as
provided in the definition of “Own”, the Grantors are the legal and beneficial owners of the
Collateral.

          (b) In each case as and to the extent required under the Express Perfection Requirements, this
Agreement creates a valid and (upon the taking of the actions required hereby) perfected security
interest in favor of the Collateral Agent in the Collateral as security for the Secured
Obligations, subject in priority to no other Liens (other than Permitted Liens), and all filings
and other actions necessary to perfect and protect such security interest as a first
priority security interest of the Collateral Agent have been (or to the extent permitted
hereby or in the case of future Collateral, will be) duly taken, enforceable against the applicable
Grantors and creditors of and purchasers from such Grantors.

          (c) No Grantor has any trade names except as set forth on Schedule III hereto.

          (d) No consent of any other Person and no authorization, approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or other

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third party
(including, for the avoidance of doubt, the International Registry) is required under any
applicable law that is necessary to comply with the Express Perfection Requirements (i) for the
grant by such Grantor of the assignment and security interest granted hereby, (ii) for the
execution, delivery or performance of this Agreement by such Grantor or (iii) for the perfection or
maintenance of the pledge, assignment and security interest created hereby, except for (A) with
respect to each Pool Aircraft whose country of registration is the United States of America, the
filing with the FAA, in due form, for recordation where applicable, pursuant to Section 40102 and
Section 44101 through Section 44112 of Title 49, United States Code, “Transportation”, of any and
all title, registration and financing documentation necessary to accomplish the purposes of this
Agreement, including, without limitation, each of the Relevant FAA Aircraft Mortgages, each of the
Relevant FAA Aircraft Mortgages and Lease Assignments and/or each of the Relevant FAA Lease
Security Assignments, as applicable, with respect to such Pool Aircraft and/or the related Assigned
Lease, (B) the filing of financing and continuation statements under the UCC, (C) the Required Cape
Town Registrations, (D) the applicable Irish filings pursuant to Section 2.09(e), (E) such other
filings as are required under relevant local law in the case of Grantors that are not organized
under the laws of the United States or a state thereof or Ireland and (F) the Lessee Notices
(except in each case set forth in this clause (d) that only the Express Perfection Requirements
shall be required to be satisfied).

          (e) The chief place of business, organizational identification number (if applicable) and
chief executive or registered office of such Grantor and the office where such Grantor keeps
records of the Collateral are located at the address specified opposite the name of such Grantor on
the attached Schedule IV or, in the case of records, at ILFC. If such Grantor is the lessor under
a Cape Town Lease, it has the right to assign the International Interest provided for in such Cape
Town Lease and all associated rights in respect of such Cape Town Lease that form part of the
Collateral.

          (f) The Pledged Stock constitutes the percentage of the issued and outstanding shares of
capital stock of the issuers thereof indicated on the attached Schedule II. The Pledged Membership
Interests constitute the percentage of the membership interest of the issuer thereof, as indicated
on Schedule II hereto. The Pledged Beneficial Interests constitute the percentage of the
beneficial interest of the issuer thereof indicated on Schedule II hereto.

          (g) The Pledged Stock, the Pledged Membership Interests and the Pledged Beneficial Interests
have been duly authorized and validly issued and are fully paid up and nonassessable. The Pledged
Debt has been duly authorized or issued and delivered and is the legal, valid and binding
obligation of each Borrower Party thereunder.

          (h) The Pledged Stock and the Pledged Membership Interests constitute “certificated
securities” within the meaning of Section 8-102(4) of the UCC. If the issuer thereof is organized
under the laws of the United States or a state thereof, the terms of any Pledged Equity Interest
expressly provide that such Pledged Equity Interest shall be governed by Article 8 of the Uniform
Commercial Code as in effect in the jurisdiction of the issuer of such Pledged Membership Interest
or such Article 8 shall be applicable thereto under applicable Laws. Any Certificated Security or
Instrument evidencing the Pledged Stock, the Pledged Debt, the Pledged Beneficial Interests and the
Pledged Membership Interests have been delivered to the Collateral Agent in accordance with Section
2.08. The Pledged Stock and the Pledged Membership Interest

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either (i) are in bearer form, (ii)
have been indorsed, by an effective indorsement, to the Collateral Agent or in blank or (iii) have
been registered in the name of the Collateral Agent. None of the Pledged Stock, the Pledged
Beneficial Interests and the Pledged Membership Interest that constitute or evidence the Collateral
have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed
to any person other than the Collateral Agent (other than those agreed by the secured parties
referenced therein to be terminated or released). Any Pledged Beneficial Interests either (i)
constitute “certificated securities” within the meaning of Section 8-102(a)(4) of the UCC, have
been delivered to the Collateral Agent and (1) are in bearer form, (2) have been indorsed, by an
effective indorsement, to the Collateral Agent or in blank or (3) have been registered in the name
of the Collateral Agent or (ii) a fully executed “control agreement” has been delivered to the
Collateral Agent with respect to such Pledged Beneficial Interests.

          (i) A true and complete copy of each Assigned Agreement in effect on the date the relevant
Aircraft becomes a Pool Aircraft has been delivered to the Collateral Agent as of such date.

          Section 2.04 Grantors Remain Liable. Anything contained herein to the contrary
notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included
in the Collateral to the extent set forth therein to perform all of its duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the
Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its
duties or obligations under the contracts and agreements included in the Collateral and (c) in each
case, unless the Collateral Agent or any other Secured Party, expressly in writing or by operation
of law, assumes or succeeds to the interests of any Grantor hereunder, no Secured Party shall have
any obligation or liability under the contracts and agreements included in the Collateral by reason
of this Agreement, nor shall any Secured Party be obligated to perform any of the obligations or
duties of any Grantor under the contracts and agreements included in the Collateral or to take any
action to collect or enforce any claim for payment assigned under this Agreement.

          Section 2.05 Delivery of Collateral. The Collateral Agent shall have the right, upon
the occurrence and during the continuance of an Event of Default and if the Loans have been
accelerated and such acceleration has not been rescinded, to transfer to or to register in the name
of the Collateral Agent or any of its nominees any or all of the Pledged Equity Interests, subject
only to the revocable rights
specified in Section 2.11(a). In addition, the Collateral Agent shall have the right at any
time, upon the occurrence and during the continuance of an Event of Default, to exchange
certificates or instruments representing or evidencing any Collateral for certificates or
instruments of smaller or larger denominations. To the extent that any Assigned Lease constitutes
“tangible chattel paper” (as defined in Section 9-102(a)(78) of the UCC) and a Grantor has
designated an original counterpart thereof as a “chattel paper original”, the Grantor shall, if it
has such original of such Assigned Lease in its possession, cause such original of such Assigned
Lease (the “Chattel Paper Original”) to be delivered to the Collateral Agent promptly (and
in any case no later than thirty days) after the later of the date of the execution and delivery of
such Assigned Lease by all its parties and the date of the Collateral Supplement delivered in
respect of such Assigned Lease. Notwithstanding anything else to the contrary in any Loan

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Document, no Grantor shall be required to deliver to the Collateral Agent any letter of credit,
promissory note or other Related Collateral Documents issued pursuant to an Assigned Lease.

          Section 2.06 As to the Assigned Documents. (a) Upon the inclusion of any Assigned
Agreement in the Collateral, the relevant Grantor will to the extent required under the Express
Perfection Requirements (i) give due notice to each such other party to such Assigned Agreement of
its assignment pursuant to this Agreement, (ii) take such actions as required to perfect the
Collateral Agent’s security interest in such Assigned Agreement and (iii) deliver to the Collateral
Agent a copy of such notice referred to in clause (i) and of any other documents or instruments (if
any) executed pursuant to clause (ii). Upon the inclusion of any Assigned Lease in the Collateral,
promptly after its delivery thereof to the relevant Lessee party thereto, the relevant Grantor will
deliver to the Collateral Agent the Lessee Notice, which shall contain terms to substantially the
same effect as the provisions of Exhibit G or in the form provided for in the Lease. Each Grantor
will ensure that, with respect to each Assigned Lease which constitutes an International Interest
to which it is a party, such Grantor receives a consent of the relevant Lessee to the extent
required by the Cape Town Convention for an assignment of an International Interest in respect of a
Lease to be enforceable against such Lessee The Collateral Agent (solely in its capacity as such)
will, upon request of an Obligor, reasonably promptly execute letters relating to quiet enjoyment
and other matters in accordance with Section 4.03 of the Credit Agreement.

          (b) Each Grantor shall, at its expense:

               (i) use reasonable commercial efforts, in accordance with Leasing Company Practice to
(A) perform and observe all the terms and provisions of the Assigned Documents to be
performed or observed by it and (B) after an Event of Default has occurred and is continuing
and the Loans have been accelerated and such acceleration has not been rescinded take all
such action to such end as may be from time to time reasonably requested by the Collateral
Agent; and

               (ii) furnish to the Collateral Agent a true and complete copy of each Assigned Lease
Document, on or prior to the Advance Date in respect of a Pool Aircraft, or if later,
promptly after inclusion of such Assigned Lease Document in the Collateral, whichever is
applicable and a true and complete copy of each material amendment, supplement or waiver to
an Assigned Lease Document received by such
Grantor under or pursuant to the Assigned Lease Documents, and from time to time
(subject to the provisions of the applicable Assigned Lease Document relating to the
Lessee’s obligation to furnish such information, and subject to any confidentiality
provisions therein) after an Event of Default has occurred and is continuing and the Loans
have been accelerated and for so long as such acceleration shall not have been rescinded,
upon reasonable request of the Collateral Agent, make to each other party to any Assigned
Lease Document such demands and requests for information and reports or for action as such
Grantor is entitled to make thereunder.

          (c) So long as an Event of Default shall not have occurred and be continuing, and the Loans
have not been accelerated or such acceleration shall have been rescinded and notwithstanding any
provision to the contrary in this Agreement, each Grantor shall be entitled,

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to the exclusion of
the Collateral Agent but subject always to the terms of the Loan Documents (x) to exercise and
receive, directly or indirectly through one or more agents, any of the claims, rights, powers,
privileges, remedies and other benefits under, pursuant to, with respect to or arising out of the
Assigned Documents and (y) to take any action or to not take any action, directly or indirectly
through one or more agents, related to the Assigned Documents and the lessees or counterparties
thereunder, including entering into, amending, supplementing, terminating, performing, enforcing,
compelling performance of, exercising all remedies (whether arising under any Assigned Document or
by statute or at law or in equity or otherwise) under, exercising rights, elections or options or
taking any other action under or in respect of, granting or withholding notices, waivers, approvals
and consents in respect of, receiving all payments under, dealing with any credit support or
collateral security in respect of, or taking any other action in respect of, the Assigned Documents
and contacting or otherwise having any dealings with any lessee or counterparty thereunder;
provided, however, (i) so long as any Assigned Lease remains in effect, no Grantor
will abrogate any right, power or privilege granted expressly in favor of the Collateral Agent or
any other Secured Party under any Lease Assignment Document and (ii) during the continuance of an
Event of Default and the Loans have been accelerated and for so long as such acceleration shall not
have been rescinded, all such rights of each Grantor shall cease if the Collateral Agent shall, to
the extent permitted by law, notify such Grantor of such cessation and thereafter all such rights
shall become vested in the Collateral Agent, which shall thereupon have the sole right to exercise
or refrain from exercising such rights.

          (d) Notwithstanding anything in the Loan Documents to the contrary, no Grantor shall be
obligated to assign to the Collateral Agent the right to remove a Lease from the International
Registry if such assignment is expressly prohibited under such Lease, and in such case such right
may be retained by the applicable Grantor without assignment hereunder.

          Section 2.07 As to the Pool Aircraft Collateral. The Grantors shall, at their
expense, use reasonable commercial efforts, in accordance with Leasing Company Practice to (A)
perform and observe, or cause to be performed and observed, all the terms and provisions of the
documents and instruments constituting Pool Aircraft Collateral to be performed or observed by a
Obligor and (B) after an Event of Default has occurred and is continuing and the Loans have been
accelerated and for long as such acceleration shall not have been rescinded take all such action to
such end as may be from time to time reasonably requested by the Collateral Agent.

          Section 2.08 As to the Equity Collateral and Investment Collateral. (a) All Security
Collateral, Membership Interest Collateral and Beneficial Interest Collateral (collectively, the
“Equity Collateral”) shall be delivered to the Collateral Agent as follows:

          (i) in the case of each Certificated Security or Instrument, by (A) causing the
delivery of such Certificated Security or Instrument to the Collateral Agent, registered in
the name of the Collateral Agent or duly endorsed by an appropriate person to the Collateral
Agent or in blank and, in each case, held by the Collateral Agent, or (B) if such
Certificated Security or Instrument is registered in the name of any Securities Intermediary
on the books of the issuer thereof or on the books of any Securities Intermediary, by
causing such Securities Intermediary to continuously credit by book entry such Certificated
Security or Instrument to a Securities Account maintained by such

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Securities Intermediary in
the name of the Collateral Agent and confirming in writing to the Collateral Agent that it
has been so credited;

          (ii) in the case of each Uncertificated Security, by (A) causing such Uncertificated
Security to be continuously registered on the books of the issuer thereof in the name of the
Collateral Agent or (B) if such Uncertificated Security is registered in the name of a
Securities Intermediary on the books of the issuer thereof or on the books of any securities
intermediary of a Securities Intermediary, by causing such Securities Intermediary to
continuously credit by book entry such Uncertificated Security to a Securities Account
maintained by such Securities Intermediary in the name of the Collateral Agent and
confirming in writing to the Collateral Agent that it has been so credited; and

          (iii) in the case of each Government Security registered in the name of any Securities
Intermediary on the books of the FRBNY or on the books of any securities intermediary of
such Securities Intermediary, by causing such Securities Intermediary to continuously credit
by book entry such security to the collateral account maintained by such Securities
Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral
Agent that it has been so credited.

          (b) Each Grantor and the Collateral Agent hereby represents, with respect to the Equity
Collateral, that it has not entered into, and hereby agrees that it will not enter into, any
currently effective agreement (i) with any of the other parties hereto or any Securities
Intermediary specifying any jurisdiction other than the State of New York as the “securities
intermediary’s jurisdiction” within the meaning of Section 8-110(e) of the UCC in connection with
any Securities Account with any Securities Intermediary referred to in Section 2.08(a) for purposes
of 31 C.F.R. Section 357.11(b), Section 8-110(e) of the UCC or any similar state or Federal law, or
(ii) with any other person relating to such account pursuant to which it has agreed that any
Securities Intermediary may comply with entitlement orders made by such person. The Collateral
Agent represents that it will, by express agreement with each Securities Intermediary, provide for
each item of property constituting Equity Collateral held in and credited to the Securities
Account, including cash, to be treated as a “financial asset” within the meaning of Section
8-102(a)(9)(iii) of the UCC for the purposes of Article 8 of the UCC.

          (c) Without limiting the foregoing, each Grantor and the Collateral Agent agree, and the
Collateral Agent shall cause each Securities Intermediary, to take such different or additional
action as may be required in order to maintain the perfection and priority of the security interest
of the Collateral Agent in the Equity Collateral in the event of any change in applicable law or
regulation, including Articles 8 and 9 of the UCC and regulations of the U.S. Department of the
Treasury governing transfers of interests in Government Securities.

          Section 2.09 Further Assurances. (a) In each case to the extent required pursuant to
the Express Perfection Requirements, each Grantor agrees that from time to time, at the expense of
such Grantor, such Grantor shall promptly execute and deliver all further instruments and
documents, and take all further action (including under the laws of any foreign jurisdiction), that
may be necessary, or that the Collateral Agent may reasonably request, in order to perfect and
protect any pledge, assignment or security interest granted or purported to be

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granted hereby or to
enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect
to any Collateral. Without limiting the generality of the foregoing but subject to the
qualification that the following are required only to the extent of the Express Perfection
Requirements, each Grantor shall: (i) execute and file such financing or continuation statements,
or amendments thereto, under the UCC and such other instruments or notices, that may be necessary,
or as the Collateral Agent may reasonably request, in order to perfect and preserve the pledge,
assignment and security interest granted or purported to be granted hereby and (ii) execute, file,
record, or register such additional documents and supplements to this Agreement, including any
further assignments, security agreements, pledges, grants and transfers, as may be required under
the laws of any foreign jurisdiction of organization or domicile of the relevant Grantor hereunder
or as the Collateral Agent may reasonably request, to create, attach, perfect, validate, render
enforceable, protect or establish the priority of the security interest and lien of this Agreement.

          (b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or
continuation statements, and amendments thereto, under the UCC relating to all or any part of the
Collateral without the signature of such Grantor where permitted by law. A photocopy or other
reproduction of this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

          (c) Each Grantor shall, prior to or simultaneously with any Person Owning or becoming a lessor
of any Pool Aircraft or (if its equity interests are directly or indirectly held by Parent Holdco)
directly or indirectly holding the equity interests in any such Person, cause such Person to enter
into a Grantor Supplement.

          (d) Each Grantor shall ensure that at all times an individual shall be appointed as
administrator with respect to each Owner Subsidiary and each Intermediate Lessee for purposes of
the International Registry and shall cause each such Owner Subsidiary and each such Intermediate
Lessee to register or cause to be registered (or if the Collateral Agent is making such
registration, without relieving each Grantor of such obligation, consent to such registration) with
the International Registry the Required Cape Town Registrations. To the extent that (A) the
Collateral Agent’s consent is required for any such registration, or (B) the Collateral Agent is
required to initiate any such registration, the Collateral Agent shall ensure that such consent or
such initiation of such registration is effected, and no Grantor shall be in breach of this
Section should the Collateral Agent fail to do so in a proper fashion (it being understood and
agreed that in no event shall the Collateral Agent be liable for any failure to so register as a
result of such Grantor’s failure to provide any necessary information required for such
registration in a timely manner or if such information is inaccurate or incomplete). It is
understood and agreed that International Interests provided for hereunder shall be registered in
the name of the Collateral Agent. The parties hereto agree that for the purposes of the Cape Town
Convention, each Airframe and each Engine are Aircraft Objects (as defined in the Protocol) and
this Security Agreement constitutes (i) an International Interest in each such Airframe and each
such Engine and (ii) with respect to a Lease that constitutes an International Interest, an
assignment of associated rights associated with each such Airframe and each such Engine as regards
each Lease. The parties hereto agree that for the purposes of the definition of Prospective
International Interest in the Cape Town Convention, the making of the Loans by the Lenders

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shall
constitute the stated event upon which the Borrower has created or provided for an International
Interest in the Aircraft Objects and Assigned Leases.

          (e) With respect to each Pool Aircraft that is registered in the United States of America,
each Grantor shall, so long as such Pool Aircraft is so registered, and (i) in the case of a Pool
Aircraft that is not subject to an Assigned Lease, register and record with the FAA the Relevant
FAA Aircraft Mortgages with respect to such Pool Aircraft and (ii) in the case of a Pool Aircraft
that is subject to an Assigned Lease, register and record with the FAA the Relevant FAA Aircraft
Mortgages and Lease Security Assignments with respect to such Pool Aircraft. Each Grantor shall,
if at any time after the filing with the FAA of a Relevant FAA Aircraft Mortgage with respect to a
Pool Aircraft such Pool Aircraft becomes subject to an Assigned Lease, register and record with the
FAA the Relevant FAA Lease Security Assignments with respect to such Aircraft. With respect to
each Grantor holding an Equity Interest in a Pledged Equity Party incorporated under the laws of
Ireland, such Grantor shall cause each Security Document executed by it and an Additional Charge
Over Shares or, in each case, its relevant particulars to be filed in the Irish Companies
Registration Office and, where applicable, the Irish Revenue Commissioners within 21 days of
execution thereof.

          Section 2.10 Place of Perfection; Records. Each Grantor shall keep its chief place of
business and chief executive office at the location therefor specified in Schedule IV and shall
keep its records concerning the Collateral at such location or at ILFC’s chief executive office or,
upon 30 days’ prior written notice to the Collateral Agent, at such other locations in a
jurisdiction where all actions required by Section 2.03(e) shall have been taken with respect to
the Collateral. Subject to applicable confidentiality restrictions, each Grantor shall hold and
preserve such records and, if an Event of Default shall have occurred and be continuing, shall
permit representatives of the Collateral Agent upon reasonable prior notice at any time during
normal business hours reasonably to inspect and make abstracts from such records, all at the sole
cost and expense of such Grantor.

          Section 2.11 Voting Rights; Dividends; Etc.
(a) So long as no Event of Default shall have occurred and be continuing and the Loans have
been accelerated and for so long as such acceleration shall not have been rescinded:

          (i) Each Grantor shall be entitled to exercise any and all voting and other consensual
rights pertaining to all or any part of the Equity Collateral pledged by such Grantor for
any purpose not inconsistent with the terms of this Agreement, the charter documents of such
Grantor, or the Loan Documents; provided that such Grantor shall not exercise or
shall refrain from exercising any such right if such action would constitute a breach of its
obligations under the Loan Documents; and

          (ii) The Collateral Agent shall execute and deliver (or cause to be executed and
delivered) to such Grantor all such proxies and other instruments as such Grantor may
reasonably request in writing and provide for the purpose of enabling such Grantor to
exercise the voting and other rights that it is entitled to exercise pursuant to Section
2.11(a)(i).

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          (b) After an Event of Default shall have occurred and be continuing and the Loans have been
accelerated and for so long as such acceleration shall not have been rescinded and such Grantor
shall have received notice to such effect from the Collateral Agent, to the extent such notice is
permitted by applicable Law, any and all distributions, dividends and interest paid in respect of
the Equity Collateral pledged by such Grantor, including any and all (i) distributions, dividends
and interest paid or payable other than in cash in respect of, and instruments and other property
received, receivable or otherwise distributed in respect of, or in exchange for, such Security
Collateral, Membership Interest Collateral or Beneficial Interest Collateral; (ii) distributions,
dividends and other distributions paid or payable in cash in respect of such Security Collateral,
Membership Interest Collateral or Beneficial Interest Collateral in connection with a partial or
total liquidation or dissolution or in connection with a reduction of capital, capital surplus or
paid-in surplus; and (iii) cash paid, payable or otherwise distributed in respect of principal of,
or in redemption of, or in exchange for, such Security Collateral, Membership Interest Collateral
or Beneficial Interest Collateral shall be forthwith delivered to the Collateral Agent and, if
received by such Grantor, shall be received in trust for the benefit of the Collateral Agent, be
segregated from the other property or funds of such Grantor and be forthwith delivered to the
Collateral Agent in the same form as so received (with any necessary endorsement).

          (c) During the continuance of an Event of Default and the Loans have been accelerated and for
so long as such acceleration shall not have been rescinded and such Grantor shall have received
notice to such effect from the Collateral Agent, to the extent such notice is permitted by
applicable Law, all rights of each Grantor to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise pursuant to Section
2.11(a)(i) and 2.11(a)(ii) shall cease, and all such rights shall thereupon become vested in the
Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising
such voting and other consensual rights.

          Section 2.12 Transfers and Other Liens; Additional Shares or Interests.
(a) No Grantor shall (i) sell, assign (by operation of law or otherwise) or otherwise
dispose of, or grant any option with respect to, any of the Collateral or (ii) create or suffer to
exist any Lien upon or with respect to any of the Collateral, in the case of clause (i) or (ii)
other than a Permitted Lien or as otherwise provided for or permitted in any Loan Document.

          (b) Except as otherwise provided pursuant to the Loan Documents, the Grantors (other than
Parent Holdco) shall not issue, deliver or sell any shares, interests, participations or other
equivalents except those pledged hereunder and except to the extent of the Local Requirements
Exception. Any beneficial interests, membership interests or capital stock or other securities or
interests issued in respect of or in substitution for the Pledged Stock, the Pledged Membership
Interests or the Pledged Beneficial Interest shall be issued or delivered (with any necessary
endorsement) to the Collateral Agent in accordance with Section 2.08.

          Section 2.13 Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby
irrevocably appoints, as security for the Secured Obligations, the Collateral Agent as such
Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the
name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion during
the occurrence and continuance of an Event of Default and the acceleration of the Loans and

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such
acceleration shall not have been rescinded, to take any action and to execute any instrument that
the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement,
including:

          (a) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral;

          (b) to receive, indorse and collect any drafts or other instruments and documents in
connection included in the Collateral;

          (c) to file any claims or take any action or institute any proceedings that the Collateral
Agent may deem necessary for the collection of any of the Collateral or otherwise to enforce the
rights of the Collateral Agent with respect to any of the Collateral; and

          (d) to execute and file any financing or continuation statements, or amendments thereto, and
such other instruments or notices, as may be necessary, in order to perfect (except in the case of
the Beneficial Interest Collateral provided pursuant to Section 2.01(e)) and preserve the pledge,
assignment and security interest granted hereby; provided, that the Collateral Agent’s
exercise of any such power in this clause (d) shall be subject to the Express Perfection
Requirements.

          Section 2.14 Collateral Agent May Perform. If any Grantor fails to perform any
agreement contained in this Agreement, the Collateral Agent may (but shall not be obligated to)
after such prior notice as may be reasonable under the circumstances, itself perform, or cause
performance of, such agreement, and the expenses of the Collateral Agent incurred in connection
with doing so shall be payable by the Grantors.

          Section 2.15 Covenant to Pay. Each Grantor covenants with the Collateral Agent (for
the benefit of the Secured Parties) that it will pay or discharge any monies and liabilities
whatsoever that are now, or at any time hereafter may be, due, owing or payable by such Grantor in
any currency, actually or contingently, solely and/or jointly, and/or severally with another or
others, as principal or surety on any account whatsoever pursuant to the Loan Documents in
accordance with their terms. Each Grantor agrees that (except as provided in Article 7 of the
Credit Agreement) no payment or distribution by such Grantor pursuant to the preceding sentence
shall entitle such Grantor to exercise any rights of subrogation in respect thereof until the
related Secured Obligations shall have been paid in full.

          Section 2.16 Delivery of Collateral Supplements. Upon the addition of any Pool
Aircraft or the acquisition by any Grantor of any Security Collateral, Membership Interest
Collateral or Beneficial Interest Collateral, each relevant Grantor shall concurrently execute and
deliver to the Collateral Agent a Collateral Supplement duly completed with respect to such
Collateral and shall take such steps with respect to the perfection of such Collateral as are
called for by this Agreement for Collateral of the same type; provided that the foregoing
shall not be construed to provide for any action with respect to perfection not required by the
Express Perfection Requirements; and provided further that the failure of any
Grantor to deliver any

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Collateral Supplement as to any such Collateral shall not impair the lien of
this Agreement as to such Collateral.

          Section 2.17 Identification of Collateral Agent’s Interest. The Grantors agree to use
reasonable commercial efforts to cause to be affixed as promptly as practicable after the date an
Aircraft becomes a Pool Aircraft and thereafter to maintain in the cockpit of each Pool Aircraft,
in a clearly visible location, and on each Engine, a nameplate bearing the inscription “MORTGAGED
TO CITIBANK, N.A., AS COLLATERAL AGENT”, and to use reasonable commercial efforts to cause such
nameplate to be replaced, if necessary, with a nameplate reflecting the name of any successor
Collateral Agent.

          Section 2.18 Insurance. The Grantors shall cause to be maintained, or procure that
the relevant Lessee maintains, hull and third party liability insurance policies in respect of each
Pool Aircraft in accordance with the terms of Schedule V hereto.

          Section 2.19 Covenant Regarding Control. No Grantor shall cause nor permit any Person
other than the Collateral Agent to have “control” (as defined in Section 8-106 of the UCC) of the
Collateral Account pursuant to the terms of the Credit Agreement and the Account Control Agreement.

          Section 2.20 Covenant Regarding Collateral Account. Borrower shall enter into the
Account Control Agreement as of the date hereof.

          Section 2.21 As to Irish Law. Notwithstanding anything to the contrary contained in
this Agreement and in addition to and without prejudice to any other rights or power of the
Collateral Agent under this Agreement or under general law in any relevant jurisdiction, at any
time that the Collateral shall become enforceable as provided in Section 3.01, the Collateral Agent
shall be entitled to appoint a receiver under this Agreement or under the Land and Conveyancing Law
Reform Act 2009 (as amended and as the same may be amended, modified or replaced from time to time,
the “2009 Act”) without the need for the occurrence of any of the events specified in (a)
to (c) of section 108(1) (Appointment of Receiver) of the 2009 Act, such receiver shall have all
such powers, rights and authority conferred under the 2009 Act, this Agreement and otherwise under
the laws of Ireland without any limitation or restriction imposed by the 2009 Act or otherwise
under the laws of Ireland which may be excluded or removed. The statutory power of sale conferred
by section 100 (Power of sale) of the 2009 Act shall apply to the Collateral free from restrictions
contained in section 100(1), (2), (3) and (4) and without the requirement to serve notice (as
provided for in section 100(1)) and section 108 (7) (Remuneration of a receiver) of the 2009 Act
shall not apply to the Collateral or to any receiver appointed under this Agreement.

          Section 2.22 Additional Charges Over Shares. Each Grantor undertakes with the
Collateral Agent to enter into an Additional Charge Over Shares in respect of the Equity Interests
held by it of any Subsidiary of a Grantor which is incorporated under the laws of Ireland and in
respect of any other Subsidiary of a Grantor, in each case to the extent such Additional Charge
Over Shares is necessary to perfect or protect the Collateral Agent’s interests in such Equity
Interests under applicable Law and to the extent required under the Express Perfection
Requirements.

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ARTICLE III

REMEDIES

          Section 3.01 Remedies. Notwithstanding anything herein or in any other Loan Document
to the contrary, if any Event of Default shall have occurred and be continuing and the Loans have
been accelerated and for so long as such acceleration shall not have been rescinded, and in each
case subject to the quiet enjoyment rights of the applicable Lessee of any Pool Aircraft:

          (a) The Collateral Agent may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein (including, for the avoidance of doubt, the rights and
remedies of the Collateral Agent provided for in Section 2.11(c)), all of the rights and remedies
of a secured party upon default under the UCC (whether or not the UCC applies to the affected
Collateral) and all of the rights and remedies under applicable law and also may (i) require any
Grantor to, and such Grantor hereby agrees that it shall at its expense and upon written request of
the Collateral Agent forthwith, assemble all or any part of the Collateral as directed by the
Collateral Agent and make it available to the Collateral Agent at a place to be designated by the
Collateral Agent that is reasonably convenient to both parties and (ii) without notice except as
specified below, sell or cause the sale of the Collateral or any part thereof in one
or more parcels at public or private sale, at any of the Collateral Agent’s offices or
elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral
Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ prior notice to such Grantor of the time and place of
any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or
private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned.

          (b) The Collateral Agent may, in addition to or in connection with any other remedies
available hereunder or under any other applicable law, exercise any and all remedies granted under
the Cape Town Convention as it shall determine in its sole discretion. In connection therewith,
the parties hereby agree to the extent permitted by the UCC that (i) Article 9(1) and Article 9(2)
of the Convention, wherein the parties may agree or the court may order that any Collateral shall
vest in the Collateral Agent in or towards satisfaction of the Secured Obligations, shall not
preclude the Collateral Agent from obtaining title to any Collateral pursuant to any other remedies
available under applicable law (including but not limited to Article 9-620 of the UCC); (ii) any
surplus of cash or cash proceeds held by the Collateral Agent and remaining after payment in full
of all the Secured Obligations owed to it shall be paid over to the Grantors in accordance with
Section 3.02 hereof; and (iii) the Collateral Agent may obtain from any applicable court, pending
final determination of any claim resulting from an Event of Default, speedy relief in the form of
any of the orders specified in Article 13 of the Convention and Article X of the Protocol as the
Collateral Agent shall determine in its sole and absolute discretion, subject to any procedural
requirements prescribed by applicable laws.

          (c) All cash proceeds received by the Collateral Agent in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral shall of this Section 3.01
shall be deemed conclusive and binding on each Grantor be applied in

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accordance
with Section 3.02. Any sale or sales conducted in accordance with the terms and the Secured Parties.

          Section 3.02 Priority of Payments. The Collateral Agent hereby agrees that all cash
proceeds received by the Collateral Agent in respect of any Collateral pursuant to Section 3.01
hereof and any payments by any Grantor to the Collateral Agent following an Event of Default and
the acceleration of the Loans and such acceleration shall not have been rescinded shall be paid by
the Collateral Agent in the order of priority set forth below:

          (a) first, to the Collateral Agent for the benefit of the Secured Parties, until payment in
full in cash of the Secured Obligations then outstanding; and

          (b) second, all remaining amounts to the relevant Grantors or whomsoever may be lawfully
entitled to receive such amounts as directed by a court of competent jurisdiction.

ARTICLE IV

SECURITY INTEREST ABSOLUTE

          Section 4.01 Security Interest Absolute. A separate action or actions may be brought
and prosecuted against each Grantor to enforce this Agreement, irrespective of whether any action
is brought against any other Grantor or whether any other Grantor is joined in any such action or
actions. Except as otherwise provided in the Loan Documents, all rights of the Collateral Agent
and the security interests and Liens granted under, and all obligations of each Grantor under,
until the Secured Obligations then outstanding are paid in full, this Agreement and each other Loan
Document shall be absolute and unconditional, irrespective of:

          (a) any lack of validity or enforceability of any Loan Document, Assigned Document or any
other agreement or instrument relating thereto;

          (b) any change in the time, manner or place of payment of, the security for, or in any other
term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent
to any departure from any Loan Document or Assigned Document or any other agreement or instrument
relating thereto;

          (c) any taking, exchange, release or non-perfection of the Collateral or any other collateral
or taking, release or amendment or waiver of or consent to departure from any guaranty, for all or
any of the Secured Obligations;

          (d) any manner of application of Collateral, or proceeds thereof, to all or any of the Secured
Obligations, or any manner of sale or other disposition of any Collateral for all or any of the
Secured Obligations or any other assets of the Grantors;

          (e) any change, restructuring or termination of the corporate structure or existence of any
Grantor; or

          (f) any other circumstance that might otherwise constitute a defense available to, or a
discharge of, any Grantor or a third-party grantor of a security interest or a Person deemed to be
a surety.

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ARTICLE V

THE COLLATERAL AGENT

          The Collateral Agent and the Secured Parties agree among themselves as follows:

          Section 5.01 Authorization and Action. (a) Each Secured Party by its acceptance of
the benefits of this Agreement hereby appoints and authorizes Citibank as the initial Collateral
Agent to take such action as trustee on behalf of the Secured Parties and to exercise such powers
and discretion under this Agreement and the other Loan Documents as are specifically delegated to
the Collateral Agent by the terms of this Agreement and of the Loan Documents, and no implied
duties and covenants shall be deemed to arise against the Collateral Agent. For the avoidance of
doubt, each Secured Party by its acceptance of the benefits of this Agreement hereby requests and
instructs the Collateral Agent to enter into all Assigned Lease-related documents and instruments
on this date
and as may arise from time to time for the purpose of establishing and maintaining its
security interest for itself and for the benefit of the other Secured Parties in respect of any
Assigned Lease.

          (b) The Collateral Agent accepts such appointment and agrees to perform the same but only upon
the terms of this Agreement (including any quiet enjoyment covenants given to the Lessees) and
agrees to receive and disburse all moneys received by it in accordance with the terms of this
Agreement. The Collateral Agent in its individual capacity shall not be answerable or accountable
under any circumstances, except for its own willful misconduct or gross negligence (or simple
negligence in the handling of funds or breach of any of its representations or warranties set forth
in this Agreement) and the Collateral Agent shall not be liable for any action or inaction of any
Grantor or any other parties to any of the Loan Documents.

          Section 5.02 Absence of Duties. The powers conferred on the Collateral Agent under
this Agreement with respect to the Collateral are solely to protect its interests in this Agreement
and shall not impose any duty upon it, except as explicitly set forth herein, to exercise any such
powers. Except for the safe custody of any Collateral in its possession and the accounting for
moneys actually received by it under the Loan Documents, the Collateral Agent shall not have any
duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any
Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any
necessary steps to preserve or perfect rights against any parties or any other rights pertaining to
any Collateral. The Collateral Agent shall not have any duty to ascertain or inquire as to the
performance or observance of any covenants, conditions or agreements on the part of any Grantor or
Lessee.

          Section 5.03 Representations or Warranties. The Collateral Agent shall not make nor
shall it be deemed to have made any representations or warranties as to the validity, legality or
enforceability of this Agreement, any other Loan Document or any other document or instrument or as
to the correctness of any statement contained in any thereof, or as to the validity or sufficiency
of any of the pledge and security interests granted hereby, except that the Collateral Agent in its
individual capacity hereby represents and warrants (a) that each such specified document to which
it is a party has been or will be duly executed and delivered by one

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of its officers who is and
will at such time be duly authorized to execute and deliver such document on its behalf, and (b)
this Agreement is or will be the legal, valid and binding obligation of the Collateral Agent in its
individual capacity, enforceable against the Collateral Agent in its individual capacity in
accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally.

          Section 5.04 Reliance; Agents; Advice of Counsel. (a) The Collateral Agent shall not
incur any liability to anyone as a result of acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper believed by it to be genuine and believed by
it to be signed by the proper party or parties. The Collateral Agent may accept a copy of a
resolution of the board or other governing body of any party to this Agreement or any Loan
Document, certified by the Secretary or an Assistant Secretary thereof or other duly authorized
Person of such party as duly adopted and in full force and effect, as conclusive evidence that such
resolution has been duly adopted by said board or other governing body and that the same is in full
force and effect. As to any fact or matter the manner of ascertainment of which is not
specifically described in this Agreement, the Collateral Agent shall be entitled to receive and may
for all purposes hereof conclusively rely, and shall be fully protected in acting or refraining
from acting, on a certificate, signed by an officer of any duly authorized Person, as to such fact
or matter, and such certificate shall constitute full protection to the Collateral Agent for any
action taken or omitted to be taken by them in good faith in reliance thereon. The Collateral
Agent shall assume, and shall be fully protected in assuming, that each other party to this
Agreement is authorized by its constitutional documents to enter into this Agreement and to take
all action permitted to be taken by it pursuant to the provisions of this Agreement, and shall not
inquire into the authorization of such party with respect thereto.

          (b) The Collateral Agent may execute any of its powers hereunder or perform any duties under
this Agreement either directly or by or through agents, including financial advisors, or attorneys
or a custodian or nominee, provided, however, that the appointment of any agent
shall not relieve the Collateral Agent of its responsibilities or liabilities hereunder.

          (c) The Collateral Agent may consult with counsel and any opinion of counsel or any advice of
such counsel shall be full and complete authorization and protection in respect of any action taken
or suffered or omitted by it under this Agreement in good faith and in accordance with such advice
or opinion of counsel.

          (d) The Collateral Agent shall be under no obligation to exercise any of the rights or powers
vested in it by this Agreement, or to institute, conduct or defend any litigation under this
Agreement or in relation hereto, at the request, order or direction of any of the Secured Parties,
pursuant to the provisions of this Agreement, unless such Secured Party shall have offered to the
Collateral Agent reasonable security or indemnity reasonably satisfactory to it against the costs,
expenses and liabilities which may be incurred therein or thereby.

          (e) The Collateral Agent shall not be required to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if there is reasonable ground for believing that the

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repayment of
such funds or indemnity reasonably satisfactory to it against such risk or liability is not
reasonably assured to it, and none of the provisions contained in this Agreement shall in any event
require the Collateral Agent to perform, or be responsible or liable for the manner of performance
of, any obligations of any Grantor under any of the Loan Documents.

          (f) If the Collateral Agent incurs expenses or renders services in connection with an exercise
of remedies specified in Section 3.01, such expenses (including the fees and expenses of its
counsel) and the compensation for such services are intended to constitute expenses of
administration under any bankruptcy law or law relating to creditors’ rights generally.

          (g) The Collateral Agent shall not be charged with knowledge of an Event of Default unless the
Collateral Agent obtains actual knowledge of such event or the Collateral Agent receives written
notice of such event from any of the Secured Parties.

          (h) The Collateral Agent shall not have any duty to monitor the performance of any Grantor or
any other party to the Loan Documents, nor shall the Collateral Agent have any liability in
connection with the malfeasance or nonfeasance by such parties. The Collateral Agent shall not
have any liability in connection with compliance by any Grantor or any Lessee under a Lease with
statutory or regulatory requirements related to the Collateral, any Pool Aircraft or any Lease.
The Collateral Agent shall not make or be deemed to have made any representations or warranties
with respect to the Collateral, any Pool Aircraft or any Lease or the validity or sufficiency of
any assignment or other disposition of the Collateral, any Pool Aircraft or any Lease.

          Section 5.05 Cape Town Convention. The Collateral Agent, during the term of this
Agreement, shall establish and maintain a valid and existing account as a Transacting User Entity
with the International Registry and appoint an Administrator and/or a Professional User Entity to
make registrations in regard to the Collateral as required by any Loan Documents

          Section 5.06 No Individual Liability. The Collateral Agent shall not have any
individual liability in respect of all or any part of the Secured Obligations, and all shall look,
subject to the lien and priorities of payment provided herein and in the Loan Documents, only to
the property of the Grantors (to the extent provided in the Loan Documents) for payment or
satisfaction of the Secured Obligations pursuant to this Agreement and the other Loan Documents.

ARTICLE VI

SUCCESSOR COLLATERAL AGENT

          Section 6.01 Resignation and Removal of the Collateral Agent. The Collateral Agent
may resign at any time without cause by giving at least 30 days’ prior written notice to the
Borrower and the Lenders. The Required Lenders may at any time remove the Collateral Agent without
cause by an instrument in writing delivered to the Borrower, the Lenders and the Collateral Agent.
No resignation by or removal of the Collateral Agent pursuant to this Section 6.01 shall become
effective prior to the date of appointment by the Required Lenders of a

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successor Collateral Agent
and the acceptance of such appointment by such successor Collateral Agent.

          Section 6.02 Appointment of Successor. (a) In the case of the resignation or removal
of the Collateral Agent, the Required Lenders shall promptly appoint a successor Collateral Agent.
So long as no Event of Default shall have occurred and be continuing, any such successor Collateral
Agent shall as a condition to its appointment be reasonably acceptable to the Borrower. If a
successor Collateral
Agent shall not have been appointed and accepted its appointment hereunder within 60 days
after the Collateral Agent gives notice of resignation, the retiring Collateral Agent, the
Administrative Agent or the Required Lenders may petition any court of competent jurisdiction for
the appointment of a successor Collateral Agent. Any successor Collateral Agent so appointed by
such court shall immediately and without further act be superseded by any successor Collateral
Agent appointed as provided in the first sentence of this paragraph within one year from the date
of the appointment by such court.

          (b) Any successor Collateral Agent shall execute and deliver to the relevant Secured Parties
an instrument accepting such appointment. Upon the acceptance of any appointment as Collateral
Agent hereunder, a successor Collateral Agent, upon the execution and filing or recording of such
financing statements, or amendments thereto, and such amendments or supplements to this Agreement,
and, subject to the Express Perfection Requirements, such other instruments or notices, as may be
necessary, or as the Administrative Agent may request in order to continue the perfection (if any)
of the Liens granted or purported to be granted hereby, shall succeed to and become vested with all
the rights, powers, discretion, privileges and duties of the retiring Collateral Agent, and the
retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement
and the other Loan Documents. The retiring Collateral Agent shall take all steps necessary to
transfer all Collateral in its possession and all its control over the Collateral to the successor
Collateral Agent. All actions under this paragraph (b) shall be at the expense of the Borrower;
provided that if a successor Collateral Agent has been appointed as a result of the
circumstances described in Section 6.02(d), any actions under this paragraph (b) as relating to
such appointment shall be at the expense of the successor Collateral Agent.

          (c) The Collateral Agent shall be an Eligible Institution, if there be such an institution
willing, able and legally qualified to perform the duties of the Collateral Agent hereunder and,
unless such institution is an Affiliate of a Secured Party or an Event of Default has occurred and
is continuing, reasonably acceptable to the Borrower.

          (d) Any corporation or other entity into which the Collateral Agent may be merged or converted
or with which it may be consolidated, or any corporation or other entity resulting from any merger,
conversion or consolidation to which the Collateral Agent shall be a party, or any corporation or
other entity to which substantially all the business of the Collateral Agent may be transferred,
shall be the Collateral Agent under this Agreement without further act.

ARTICLE VII

INDEMNITY AND EXPENSES

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          Section 7.01 Indemnity. (a) Each of the Grantors shall indemnify, defend and hold
harmless the Collateral Agent (and its officers, directors, employees, representatives and agents)
from and against, any loss, liability or expense (including reasonable legal fees and expenses)
incurred by it without negligence or bad faith on its part in connection with the acceptance or
administration of this Agreement and its duties hereunder, including the costs and expenses of
defending itself against any claim or liability and of complying with any process served upon it or
any of its
officers in connection with the exercise or performance of any of its powers or duties
hereunder. The Collateral Agent (i) must provide reasonably prompt notice to the applicable
Grantor of any claim for which indemnification is sought, provided that the failure to
provide notice shall only limit the indemnification provided hereby to the extent of any
incremental expense or actual prejudice as a result of such failure; and (ii) must not make any
admissions of liability or incur any significant expenses after receiving actual notice of the
claim or agree to any settlement without the written consent of the applicable Grantor, which
consent shall not be unreasonably withheld. No Grantor shall be required to reimburse any expense
or indemnity against any loss or liability incurred by the Collateral Agent through negligence or
bad faith.

          Each Grantor, as applicable, may, in its sole discretion, and at its expense, control the
defense of the claim including, without limitation, designating counsel for the Collateral Agent
and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of
any claim; provided that (i) the applicable Grantor may not agree to any settlement
involving any indemnified person that contains any element other than the payment of money and
complete indemnification of the indemnified person without the prior written consent of the
affected indemnified person, (ii) the applicable Grantor shall engage and pay the expenses of
separate counsel for the indemnified person to the extent that the interests of the Collateral
Agent are in conflict with those of such Grantor and (iii) the indemnified person shall have the
right to approve the counsel designated by such Grantor which consent shall not be unreasonably
withheld.

          (b) Each Grantor shall agrees to pay to the Collateral Agent (i) an annual fee set forth under
a separate agreement between the Borrower and the Collateral Agent and (ii) all reasonable
out-of-pocket expenses incurred by the Collateral Agent, including the reasonable fees and expenses
of its counsel and of any experts and agents in connection with (A) the administration of this
Agreement (in accordance with fee arrangements agreed between the Collateral Agent and the
Borrower), (B) the making of any filing or registration required under the Loan Documents
including, without limitation, with the International Registry, (C) the custody, preservation, use
or operation of, or the sale of, collection from or other realization upon, any of the Collateral,
(D) the exercise or enforcement of any of the rights of the Collateral Agent or any other Secured
Party against such Grantor hereunder or (E) the failure by any Grantor to perform or observe any of
the provisions hereof.

          Section 7.02 Secured Parties’ Indemnity. (a) The Collateral Agent shall be entitled
to be indemnified (subject to the limitations and requirements described in Section 7.01
mutatis mutandis) by the Lenders to the sole satisfaction of the Collateral Agent
before proceeding to exercise any right or power under this Agreement at the request or direction
of the Administrative Agent, to the extent not indemnified by the Grantors.

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          (b) In order to recover under clause (a) above, the Collateral Agent: (i) must provide
reasonably prompt notice to the Administrative Agent of any claim for which indemnification is
sought, provided that the failure to provide notice shall only limit the indemnification
provided hereby to the extent of any incremental expense or actual prejudice as a result of such
failure; and (ii) must not make any admissions of liability or incur any significant
expenses after receiving actual notice of the claim or agree to any settlement without the
written consent of the Administrative Agent which consent shall not be unreasonably withheld.

          (c) The Administrative Agent may, in its sole discretion, and at its expense, control the
defense of the claim including, without limitation, designating counsel for the Collateral Agent
and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of
any claim; provided that (i) the Administrative Agent may not agree to any settlement
involving any indemnified person that contains any element other than the payment of money and
complete indemnification of the indemnified person without the prior written consent of the
affected indemnified person, (ii) the Administrative Agent shall engage and pay the expenses of
separate counsel for the indemnified person to the extent that the interests of the Collateral
Agent are in conflict with those of the Administrative Agent and (iii) the indemnified person shall
have the right to approve the counsel designated by the Administrative Agent which consent shall
not be unreasonably withheld.

          (d) The provisions of Section 7.01 and this Section 7.02 shall survive the termination of this
Agreement or the earlier resignation or removal of the Collateral Agent.

          Section 7.03 No Compensation from Secured Parties. The Collateral Agent agrees that
it shall have no right against the Secured Parties for any fee as compensation for its services in
such capacity.

ARTICLE VIII

MISCELLANEOUS

          Section 8.01 Amendments; Waivers; Etc. (a) No amendment or waiver of any provision
of this Agreement, and no consent to any departure by any party from the provisions of this
Agreement, shall in any event be effective unless the same shall be in writing and signed by the
Collateral Agent and each party hereto. No failure on the part of the Collateral Agent to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The Collateral Agent may, but shall have no obligation
to, execute and deliver any amendment or modification which would affect its duties, powers,
rights, immunities or indemnities hereunder.

          (b) Upon the execution and delivery by any Person of a Grantor Supplement, (i) such Person
shall be referred to as an “Additional Grantor” and shall be and become a Grantor hereunder, and
each reference in this Agreement to “Grantor” shall also mean and be a reference to such Additional
Grantor, (ii) Annexes I, II, III and IV attached to each Grantor Supplement shall be incorporated
into, become a part of and supplement Schedules I, II, III and IV, respectively, and the Collateral
Agent may attach such Annexes as supplements to such Schedules; and each reference to such
Schedules shall be a reference to such Schedules as so

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supplemented and (iii) such Additional
Grantor shall be a Grantor for all purposes under this Agreement and shall be bound by the
obligations of the Grantors hereunder.

          (c) Upon the execution and delivery by a Grantor of a Collateral Supplement, Annexes I and II
to such Collateral Supplement shall be incorporated into, become a part of and supplement Schedules
I and II, respectively, and the Collateral Agent may attach such Annexes as supplements to such
Schedules; and each reference to such Schedules shall be a reference to such Schedules as so
supplemented.

          Section 8.02 Addresses for Notices; Delivery of Documents. (a) Except in the case of
notices and other communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopier or
electronic mail as follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as follows:

For each Grantor (other than Irish Subsidiary Holdco):

International Lease Finance Corporation

10250 Constellation Blvd.

Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Facsimile: (310) 788-1990

Telephone: (310) 788-1999

Email: legalnotices@ilfc.com

For Irish Subsidiary Holdco:

Ballysky Aircraft Ireland Limited

c/o ILFC Ireland Limited

30 North Wall Quay

Dublin 1, Ireland

Facsimile: 353-1-672-0270

Telephone: 353-1-802-8901

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with a copy to

International Lease Finance Corporation

10250 Constellation Blvd.

Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Facsimile: (310) 788-1990

Telephone: (310) 788-1999

Email: legalnotices@ilfc.com

     For the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile: (212) 657-2762

or, as to each party, at such other address as shall be designated by such party in a written
notice to each other party complying as to delivery with the terms of this Section 8.02. Notices
and other communications sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices and other communications
sent by telecopier shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).

          (b) All documents required to be delivered to the Collateral Agent shall be delivered in
accordance with the provisions of Section 5.09(c) of the Credit Agreement.

          Section 8.03 Remedies. The remedies herein provided are cumulative and not exclusive
of any remedies provided by law.

          Section 8.04 Severability. If any provision of this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired.

          Section 8.05 Continuing Security Interest. Subject to Section 8.06, this Agreement
shall create a continuing security interest in the Collateral and shall (a) remain in full force
and effect until the earlier of the payment in full in cash of the Secured Obligations then
outstanding to the Secured Parties, (b) be binding upon each Grantor, its successors and assigns
and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the
benefit of the Secured Parties and their respective successors, permitted transferees and permitted
assigns.

          Section 8.06 Release and Termination. (a) Upon any sale, transfer or other
disposition or removal from the Designated Pool of any Pool Aircraft or other item of Collateral in
accordance with the terms of the Loan Documents, including such Pool Aircraft, the Pledged Equity
Interest in each Owner Subsidiary or Intermediate Lessee that owns or leases such Pool Aircraft, or
if applicable, Irish Subsidiary Holdco or CA Subsidiary Holdco (in each case, upon a

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removal of
such Obligor in accordance with Sections 2.10 or 5.04 of the Credit Agreement), such Collateral
will be deemed released from the Lien hereof (and related guarantees will be deemed released in
accordance with Section 7.11 of the Credit Agreement), and the Collateral Agent will, at the
relevant Grantor’s expense, execute and deliver to the Grantor of such item of Collateral such
documents as such Grantor shall reasonably request and provide to the Collateral Agent to evidence
the release of such item of Collateral from the assignment and security interest granted hereby and
to evidence the release of any related guaranty, and to the extent that (A) the Collateral Agent’s
consent is required for any deregistration of the interests in such released Collateral from the
International Registry or any other registry or (B) the Collateral Agent is required to initiate
any such deregistration, the Collateral Agent shall ensure that such consent or such initiation of
such deregistration is effected.

          Any amounts released from the Collateral Account by the Collateral Agent in accordance with
the terms of the Loan Documents shall be deemed released from the Lien hereof.

          (b) Upon the payment in full in cash of the Secured Obligations then outstanding, the pledge,
assignment and security interest granted by Section 2.01 hereof shall terminate, the Collateral
Agent shall cease to be a party to this agreement, and all provisions of this Agreement (except for
this Section 8.06(b)) relating to the Secured Obligations, the Secured Parties or the Collateral
Agent shall cease to be of any effect insofar as they relate to the Secured Obligations, the
Secured Parties or the Collateral Agent. Upon any such termination, the Collateral Agent will, at
the relevant Grantor’s expense, execute and deliver to each relevant Grantor such documents as such
Grantor shall prepare and reasonably request to evidence such termination.

          (c) If, prior to the termination of this Agreement, the Collateral Agent ceases to be the
Collateral Agent in accordance with the definition of “Collateral Agent” in Section 1.01, all
certificates, instruments or other documents being held by the Collateral Agent at such time shall,
within five (5) Business Days from the date on which it ceases to be the Collateral Agent, be
delivered to the successor Collateral Agent.

          Section 8.07 Currency Conversion. If any amount is received or recovered by the
Collateral Agent in a currency (the “Received Currency”) other than the currency in which
such amount was expressed to be payable (the “Agreed Currency”), then the amount in the
Received Currency actually received or recovered by the Collateral Agent, to the extent permitted
by law, shall only constitute a discharge of the relevant Grantor to the extent of the amount of
the Agreed Currency which the Collateral Agent was or would have been able in accordance with its
or his normal procedures to
purchase on the date of actual receipt or recovery (or, if that is not practicable, on the
next date on which it is so practicable), and, if the amount of the Agreed Currency which the
Collateral Agent is or would have been so able to purchase is less than the amount of the Agreed
Currency which was originally payable by the relevant Grantor, such Grantor shall pay to the
Collateral Agent for the benefit of the Secured Parties such amount as it shall determine to be
necessary to indemnify the Collateral Agent and the Secured Parties against any loss sustained by
it as a result (including the cost of making any such purchase and any premiums, commissions or
other charges paid or incurred in connection therewith) and so that, to the extent permitted by
law, (i) such indemnity shall constitute a

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separate and independent obligation of each Grantor
distinct from its obligation to discharge the amount which was originally payable by such Grantor
and (ii) shall give rise to a separate and independent cause of action and apply irrespective of
any indulgence granted by the Collateral Agent and continue in full force and effect
notwithstanding any judgment, order, claim or proof for a liquidated amount in respect of the
amount originally payable by any Grantor or any judgment or order and no proof or evidence of any
actual loss shall be required.

          Section 8.08 Governing Law. THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW
YORK AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          Section 8.09 Jurisdiction; Consent to Service of Process. (a) To the extent
permitted by applicable law, each party hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of any New York State court or federal court
of the United States of America sitting in New York County, and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan
Documents, 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 shall affect any right that any
Secured Party may otherwise have to bring any action or proceeding relating to this Agreement or
the other Loan Documents against any Borrower Party or its properties in the courts of any
jurisdiction.

          (b) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection that 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 or the other
Loan Documents in any New York State or federal court described above. 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.

          (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 8.02. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          Section 8.10 Counterparts; Integration; Effectiveness. This Agreement may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents and the Agent Fee Letter constitute the entire contract
among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. This
Agreement (i) will become effective when the Collateral Agent shall have received counterparts
hereof that, when taken together, bear the signatures of each of the other parties hereto and (ii)
thereafter will be binding upon and inure to the benefit of the parties hereto and

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their respective
permitted successors and assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or electronic mail will be effective as delivery of a manually executed
counterpart of this Agreement.

          Section 8.11 Table of Contents, Headings, Etc. Article and Section headings and the
Table of Contents herein are for convenience of reference only, are not part of this Agreement and
shall not affect the construction of, or be taken into consideration in interpreting, this
Agreement.

          Section 8.12 Non-Invasive Provisions. (a) Notwithstanding any other provision of the
Loan Documents, the Collateral Agent agrees that, so long as no Event of Default shall have
occurred and be continuing and the Loans have been accelerated and such acceleration has not been
rescinded, not to take any action or cause to be taken any action, or permit any Person claiming
by, through or on behalf of it to take any action or cause any action, that would interfere with
the possession, use, operation and quiet enjoyment of and other rights with respect to any Pool
Aircraft or Collateral related thereto and all rents, revenues, profits and income therefrom,
including, the right to enforce manufacturers’ warranties, the right to apply or obtain insurance
proceeds for damage to the Pool Aircraft to the repair or replacement of the Pool Aircraft or
otherwise to the extent not required to be deposited as Account Collateral under the Loan Documents
and the right to engage in pooling, leasing and similar actions, in each case in accordance with
the terms of this Agreement or the other applicable Loan Documents.

          (b) Notwithstanding any other provision of the Loan Documents, the Collateral Agent agrees
that, so long as no “Event of Default” (or similar term) under a Lease (as defined in such Lease)
shall have occurred and be continuing and as otherwise provided in any Lease, not to take any
action or cause to be taken any action, or permit any person claiming by, through or on behalf of
it to take any action or cause any action, that would interfere with the possession, use, operation
and quiet enjoyment of and other rights of the Lessee with respect to any Pool Aircraft or
Collateral related thereto and all rents, revenues, profits and income therefrom, including, the
right to enforce manufacturers’ warranties, the right to apply or obtain
insurance proceeds for damage to the Pool Aircraft to the repair of the Pool Aircraft or
otherwise as provided in such Lease and the right to engage in pooling, leasing and similar
actions, in each case in accordance with the terms of such Lease.

          (c) The Collateral Agent agrees to release any Lien the Collateral Agent may have upon any
Engine upon (i) a Grantor providing the Collateral Agent with written notice of a transfer thereof
promptly after receipt of a notice thereof from the relevant Lessee and with a copy of the bill of
sale or other instrument evidencing the transfer of title of such replacement Engine to a Grantor,
(ii) in the case of the transfer of title to an Engine initiated by a Grantor, the Grantor
providing the Collateral Agent with a certificate of such transfer and a copy of the bill of sale
or other instrument evidencing the transfer of title of a replacement Engine to a Grantor, or (iii)
upon the total loss payment or Loan repayment being received (or replacement aircraft being
provided) in a case where the Airframe, but not such Engine, was the subject of an Event of Loss or
other total loss; provided that, for the avoidance of doubt, the Collateral Agent shall not
release any Lien upon an engine that is not replaced by a Grantor or a Lessee, unless such Engine
is associated with an aircraft that was subject to an Event of Loss or other total loss or
otherwise removed from the Designated Pool. The Borrower shall at the request of the Collateral
Agent

Aircraft Mortgage and Security Agreement

35

 

execute a supplement to this Agreement to evidence that any such replacement engine has
become subject to the Lien of this Agreement and the Collateral Agent shall, at the request of the
Borrower, execute a supplement to this Agreement to evidence the release of the applicable Engine
from the Lien of the Collateral Agent.

          (d) The Lenders and the Collateral Agent agree that they will not claim, and upon the request
of the Borrower, the Collateral Agent will confirm in writing that it does not claim, any right,
title or interest in any engine or part (including any audio, visual, telephonic, seating,
entertainment or similar equipment) that is installed on a Pool Aircraft which does not constitute
an “engine” or “part” as defined in the applicable Lease

          (e) For the avoidance of doubt, the Collateral Agent agrees that a Borrower Party may from
time to time lease out an engine that is part of a Pool Aircraft or lease in an engine that is not
part of a Pool Aircraft as it determines in accordance with Leasing Company Practice.

          Section 8.13 Limited Recourse. (a) In the event that the direct or indirect assets
of the Grantors are insufficient, after payment of all other claims, if any, ranking in priority to
the claims of the Collateral Agent or any Secured Party hereunder, to pay in full such claims of
the Collateral Agent or such Secured Party (as the case may be), then the Collateral Agent or the
Secured Party shall have no further claim against the Grantors (other than the Borrower) in respect
of any such unpaid amounts; provided that the foregoing limitation on recourse shall in no
way limit the right of any Secured Party to enforce the obligations of ILFC set forth in Article 7
of the Credit Agreement.

          (b) To the extent permitted by applicable law, no recourse under any obligation, covenant or
agreement of any party contained in this Agreement shall be had against any equityholder (not
including any Grantor as an equityholder of any Pledged Equity Party hereunder), officer or
director of the relevant party as such, by the enforcement of any
assessment or by any proceeding, by virtue of any statute or otherwise; it being expressly
agreed and understood that this Agreement is a corporate obligation of the relevant party and no
personal liability shall attach to or be incurred by the equityholders (not including any Grantor
as an equityholder of any other Grantor hereunder), officers or directors of the relevant party as
such, or any of them under or by reason of any of the obligations, covenants or agreements of such
relevant party contained in this Agreement, or implied therefrom, and that any and all personal
liability for breaches by such party of any of such obligations, covenants or agreements, either at
law or at equity or by statute or constitution, of every such equityholder (not including any
Grantor as an equityholder of any Pledged Equity Party hereunder), officer or director is hereby
expressly waived by the other parties as a condition of and consideration for the execution of this
Agreement.

          (c) The guarantees, obligations, liabilities and undertakings granted by any Pledged Equity
Party organized under the laws of France under this Agreement and the other Loan Documents shall,
for each relevant financial year, be, in any and all cases, strictly limited to 90% of the annual
net margin generated by such Pledged Equity Party or Pledged Equity Parties in connection with
back-to-back leasing activities between it and any other Pledged Equity Party with respect to the
lease of Pool Aircraft.

Aircraft Mortgage and Security Agreement

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[The Remainder of this Page is Intentionally Left Blank]

Aircraft Mortgage and Security Agreement

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          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by its representative or officer thereunto duly authorized as of the date first above
written.

	 	 	 	 	 
	 	PARK TOPANGA AIRCRAFT INC., as a Grantor

 	 
	 	By 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	TEMESCAL AIRCRAFT INC., as a Grantor

 	 
	 	By 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BALLYSKY AIRCRAFT IRELAND LIMITED, as a Grantor

 	 
	 	By 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CHARMLEE AIRCRAFT INC., as a Grantor

 	 
	 	By 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 Aircraft Mortgage and Security Agreement

38

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITIBANK, N.A. not in its individual capacity but solely

as the Collateral Agent

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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SCHEDULE I

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

AIRCRAFT OBJECTS

	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	 
	 	 	Manufacturer and	 	Airframe	 	Engine Manufacturer and	 	 
	 	 	Model	 	MSN	 	Engine Model	 	Engine MSNs
	1.

	 	None
	 	N/A
	 	N/A
	 	N/A

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SCHEDULE II

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

PLEDGED EQUITY INTERESTS

PLEDGED STOCK

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of
	Pledged Equity	 	 	 	 	 	Number of	 	Outstanding
	Party	 	Par Value	 	Certificate No(s).	 	Shares	 	Shares
	Temescal
Aircraft Inc.
	 	N/A	 	1	 	100	 	100%
	 
	 	 	 	 	 	 	 	 
	Ballysky
Aircraft Ireland
Limited
	 	$1	 	1	 	10	 	100%
	 
	 	 	 	 	 	 	 	 
	Charmlee
Aircraft Inc.
	 	N/A	 	1	 	100	 	100%

PLEDGED BENEFICIAL INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Beneficial Interest
	 

	 	 
	 	 

PLEDGED MEMBERSHIP INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Membership Interest
	 

	 	 
	 	 

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PLEDGED DEBT

	 	 	 	 	 	 	 
	Intercompany	 	Intercompany	 	Description of Instrument of	 	Amount of
	Lender	 	Borrower	 	Pledged Debt	 	Pledged Debt
	Temescal Aircraft 

Inc.
	 	Charmlee Aircraft

Inc.
	 	Intercompany Demand

Promissory Note
	 	$3,000,000,000
	 	 	 	 	 	 	 
	Temescal
Aircraft 

Inc.
	 	Ballysky Aircraft

Ireland Limited
	 	Intercompany Demand

Promissory Note
	 	$3,000,000,000

II-2

 

 

SCHEDULE III

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

TRADE NAMES

	1.	 	Grantor: Park Topanga Aircraft Inc.

Trade Name: Park Topanga Aircraft Inc.
	 
	2.	 	Grantor: Temescal Aircraft Inc.

Trade Name: Temescal Aircraft Inc.
	 
	3.	 	Grantor: Charmlee Aircraft Inc.

Trade Name: Charmlee Aircraft Inc.
	 
	4.	 	Grantor: Ballysky Aircraft Ireland Limited

Trade Name: Ballysky Aircraft Ireland Limited

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SCHEDULE IV

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

CHIEF PLACE OF BUSINESS AND CHIEF EXECUTIVE OR REGISTERED OFFICE

	 	 	 

	Name of Grantor

	 	Chief Executive Office, Chief Place of

Business or Registered Office

and Organizational ID (if applicable)
	 
	 	 
	Park Topanga Aircraft Inc.

	 	10250 Constellation Blvd.
	 

	 	Suite 3400
	 

	 	Los Angeles, CA 90067
	 

	 	Facsimile: (310) 788-1990
	 

	 	Telephone: (310) 788-1999
	 

	 	Organizational ID: 27-5306173
	 
	 	 
	Temescal Aircraft Inc.

	 	10250 Constellation Blvd.
	 

	 	Suite 3400
	 

	 	Los Angeles, CA 90067
	 

	 	Facsimile: (310) 788-1990
	 

	 	Telephone: (310) 788-1999
	 

	 	Organizational ID: 27-5306297
	 
	 	 
	Ballysky Aircraft Ireland Limited

	 	c/o ILFC Ireland Limited
	 

	 	30 North Wall Quay
	 

	 	Dublin 1, Ireland
	 

	 	Facsimile: 353-1-672-0270
	 

	 	Telephone: 353-1-802-8901
	 

	 	Corporation No. 495999
	 
	 	 
	Charmlee Aircraft Inc.

	 	10250 Constellation Blvd.
	 

	 	Suite 3400
	 

	 	Los Angeles, CA 90067
	 

	 	Facsimile: (310) 788-1990
	 

	 	Telephone: (310) 788-1999
	 

	 	Organizational ID: 27-5304959

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SCHEDULE V

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

INSURANCE

	1.	 	Obligation to Insure
	 
	 	 	So long as this Agreement shall remain in effect, the Grantors will ensure that there is
effected and maintained appropriate insurances, maintained with insurers or reinsured
with reinsurers of recognized responsibility or pursuant to governmental indemnities, in
respect of each Pool Aircraft and the Collateral Agent and the Administrative Agent and its
operation including insurance for:

	 	(a)	 	loss or damage to each Pool Aircraft and each part thereof; and

	 	(b)	 	any liability for injury to or death of persons and damage to or the
destruction of public or private property arising out of or in connection with the
operation, storage, maintenance or use of (in each case to the extent available) the
Pool Aircraft and of any other part thereof not belonging to the Grantors but from time
to time installed on the airframe.

	2.	 	Specific Insurances
	 
	 	 	The Grantors will maintain or will cause to be maintained the following specific insurances
with respect to each Pool Aircraft (subject to paragraph 3):

	 	(a)	 	All Risks Hull Insurance — All risks hull insurance policy on the Pool Aircraft
in an amount at least equal to 110% of the outstanding principal of the Loans allocable
to such Pool Aircraft, calculated based on the most recent appraised value (the
“Required Insured Value”) on an agreed value basis and naming the Collateral
Agent (for and on behalf of itself and the Secured Parties) as a loss payee for the
Required Insured Value (provided, however, that, if the applicable
insurance program uses AVN67B or a successor London market endorsement similar thereto,
the Grantor shall procure that the Collateral Agent is named as a “Contract Party” in
respect of such hull insurance and shall ensure that the Collateral Agent is also named
as such a “Contract Party” in respect of any new Lease entered into);
	 
	 	(b)	 	Hull War Risk Insurance — Hull war risk and allied perils insurance, including
hijacking, (excluding, however, confiscation by government of registry or country of
domicile to the extent coverage of such risk is not generally available to the
applicable Lessee in the relevant insurance market at a commercially reasonable cost or
is not customarily obtained by operators in such jurisdiction at such time in accordance
with Leasing Company Practice) on the Pool Aircraft where the custom in the industry is
to carry war risk for aircraft operating on routes or kept in locations similar to the
Pool Aircraft in an amount not less than the Required Insured Value on an agreed value
basis and naming the Collateral Agent (for and on behalf of itself and the Secured
Parties) as a loss payee for the Required Insured Value (provided,
however, that, if the applicable insurance program uses AVN67B or a successor

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	 	 	 	London market endorsement similar thereto, the Grantors shall procure that the
Collateral Agent is named as a “Contract Party” in respect of such insurance and shall
ensure that the Collateral Agent is also named as such a “Contract Party” in respect of
any new Lease entered into);

	 	(c)	 	Legal Liability Insurance — Third party legal liability insurance (including
war and allied perils) for a combined single limit (bodily injured and property damage)
of not less than $500,000,000 for a Narrowbody Aircraft, and not less than $750,000,000
for Widebody Aircraft. The Collateral Agent and the Administrative Agent (for and on
behalf of themselves and the Secured Parties) shall be named as additional insureds on
such policies; provided that if the applicable insurance program uses AVN 67B or
a successor London market endorsement similar thereto, the Grantors shall procure that
the Collateral Agent and the Administrative Agent are named as “Contract Parties” in
respect of such insurance and the Grantors shall ensure that the Collateral Agent and
the Administrative Agent are also named as such a “Contract Party” in respect of any new
Lease.

	 	(d)	 	Aircraft Spares Insurance — Insurance for the engines and the parts while not
installed on the airframe for their replacement cost or an agreed value basis.

	 	 	Proceeds of insurance paid to the Collateral Agent shall be disbursed to the Borrower unless
an Event of Default has occurred and is continuing, in which case such proceeds will be held
in the Collateral Account until applied as provided in the Credit Agreement or herein;
provided, however, that if, pursuant to a Lease, such insurance proceeds are
payable to a Lessee, such insurance proceeds shall in all circumstances be paid to such Lessee
in accordance with such Lease.

	3.	 	Variations on Specific Insurance Requirements
	 
	 	 	In certain circumstances, it is customary that not all of the insurances described in
paragraph 2 be carried for the Pool Aircraft. For example, when a Pool Aircraft is not on
lease to a passenger air carrier or is in storage or is being repaired or maintained, ferry
or ground rather than passenger flight coverage for the Pool Aircraft are applicable.
Similarly, indemnities may be provided by a Governmental Authority in lieu of particular
insurances; provided, however, that the Grantors shall not, without the prior
written consent of the Collateral Agent, be entitled to accept any new such governmental
indemnities other than when such indemnities are granted by a Governmental Authority of a
country or jurisdiction that is not a Prohibited Country. The relevant Grantor will
determine the necessary coverage for the Pool Aircraft in such situations consistent with
Leasing Company Practice with respect to similar aircraft.

	4.	 	Hull Insurances in Excess of Required Insurance Value
	 
	 	 	For the avoidance of doubt, any Grantor and/or any Lessee may carry hull risks and hull war
and allied perils insurance on the Pool Aircraft in excess of the Required Insured Value
which (subject in the case of the Grantors with respect to the insurance required to be
carried by the Lessee under the Lease to no Event of Default having occurred and being

Aircraft Mortgage and Security Agreement

V-2

 

 

	 	 	continuing) will not be payable to the Collateral Agent. Such excess insurance proceeds, if
paid under the insurances required to be carried by the Lessee under the Lease, will be
payable to (i) if payable to the Grantors, to the relevant Grantor, unless an Event of
Default has occurred and is continuing in which case the excess shall be payable to the
Collateral Agent or (ii) if payable to the Lessee to the Lessee in all circumstances.

	5.	 	Currency
	 
	 	 	All insurance and reinsurances effected pursuant to this Schedule V shall be payable in
Dollars, save that in the case of the insurances referred to in paragraph 2(c) (if such
denomination is (a) required by the law of the state of registration of the Pool Aircraft; or
(b) the normal practice of airlines in the relevant country that operate aircraft leased from
lessors located outside such country; or (c) otherwise accepted in accordance with Leasing
Company Practice) or paragraph 2(d).
	 
	6.	 	Specific Terms of Insurances
	 
	 	 	Insurance policies which are underwritten in the London and/or other non-US insurance market
and which pertain to financed or leased aircraft equipment contain the coverage and
endorsements described in AVN67B or a successor London market endorsement as it may be
amended or revised or its equivalent. Each of the Grantors agrees that, so long as this
Agreement shall remain in effect, the Pool Aircraft will be insured and the applicable
insurance policies endorsed either (i) in a manner consistent with AVN67B or a successor
London market endorsement, as it may be amended or revised or its equivalent or (ii) as may
then be customary in the airline industry for aircraft of the same type as the Pool Aircraft
utilised by operators in the same country and whose operational network for such Pool
Aircraft and credit status is similar to the type of business as the Lessee (if any) and at
the time commonly available in the insurance market. In all cases, the relevant Grantor will
set the standards, review and manage the insurances on the Pool Aircraft consistent with
Leasing Company Practice with respect to similar aircraft.
	 
	7.	 	Insurance Brokers and Insurers
	 
	 	 	In reviewing and accepting the insurance brokers (if any) and reinsurance brokers (if any)
and insurers and reinsurers (if any) providing coverage with respect to the Pool Aircraft,
the relevant Grantor will utilize standards consistent with Leasing Company Practice with
respect to similar aircraft. It is recognized that airlines in certain countries are
required to utilize brokers (and sometimes even no brokers) or carry insurance with local
insurance brokers and insurers. If at any time any Pool Aircraft is not subject to a Lease,
the relevant Grantor will cause its insurance brokers to provide the Collateral Agent with
evidence that the insurances described in this Schedule V are in full force and effect.
	 
	8.	 	Deductible Amounts, Self-Insurance and Reinsurance
	 
	 	 	With respect to the type of aircraft concerned, the nationality and creditworthiness of the
airline operator, the airline operator’s use and operation thereof and to the scope of and
the amount covered by the insurances carried by the Lessee, the relevant Grantor will apply
standards consistent with Leasing Company Practice with respect to similar aircraft in

Aircraft Mortgage and Security Agreement

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	 	 	reviewing and accepting the amount of any insurance deductibles, whether the Lessee may
self-insure any of the risks covered by the insurances and the scope and terms of
reinsurance, if any, including a cut-through and assignment clause.

	9.	 	Renewals
	 
	 	 	The Grantors will monitor the insurances on the Pool Aircraft and their expiration dates.
The relevant Grantor shall, when requested by the Collateral Agent, promptly inform the
Collateral Agent as to whether or not it has been advised that renewal instructions for any
of the insurances have been given by the airline operator or its broker prior to or on the
scheduled expiry date of the relevant insurance. The relevant Grantor shall promptly notify
the Collateral Agent in writing if it receives notice that any of the insurances have in fact
expired without renewal. Promptly after receipt, the relevant Grantor will provide to the
Collateral Agent evidence of renewal of the insurances and reinsurance (if any).
	 
	10.	 	Information
	 
	 	 	Subject to applicable confidentiality restrictions, each of the Grantors shall provide the
Collateral Agent or shall ensure that the Collateral Agent is provided with any information
reasonably requested by it from time to time concerning the insurances maintained with
respect to the Pool Aircraft or, if reasonably available to the Grantors, in connection with
any claim being made or proposed to be made thereunder.

Aircraft Mortgage and Security Agreement

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EXHIBIT A-1

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF COLLATERAL SUPPLEMENT

Citibank, N.A., as Collateral Agent

388 Greenwich Street, 14th Floor

New York, NY 10013

Attn: Jenny Cheng

Fax: 212-657-2762

	 	 	 

	 

	 	[Date]

     Re: Aircraft Mortgage and Security Agreement, dated as of March 30, 2011

Ladies and Gentlemen:

          Reference is made to the Aircraft Mortgage and Security Agreement, dated as of March 30, 2011
(the “Aircraft Mortgage and Security Agreement”), among PARK TOPANGA AIRCRAFT INC., a
California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC., a California corporation
(the “Borrower”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability company
incorporated under the laws of Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT
INC., a California corporation (the “CA Subsidiary Holdco”), and the ADDITIONAL GRANTORS
who from time to time become grantors under the Aircraft Mortgage and Security Agreement (together
with Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the
“Grantors”), and CITIBANK, N.A., a national banking association, as the collateral agent
(in such capacity, and together with any permitted successor or assign thereto or any permitted
replacement thereof, the “Collateral Agent”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the Aircraft Mortgage and
Security Agreement.

          The undersigned hereby delivers, as of the date first above written, the attached Annexes I,
II, III and IV pursuant to Section 2.16 of the Aircraft Mortgage and Security Agreement.

          The undersigned Grantor hereby confirms that the property included in the attached Annexes
constitutes part of the Collateral and hereby makes each representation and warranty set forth in
Section 2.03 of the Aircraft Mortgage and Security Agreement (as supplemented by the attached
Annexes I and II).

          Attached are (i) as Annex I, a duly completed description of each of the Aircraft Objects
constituting part of the Collateral granted by the undersigned Grantor and not described in the
schedules to the Security Agreement, or another Grantor Supplement or Collateral Supplement, (ii)
as Annex II, a duly completed description of the Pledged Equity Interests granted by the
undersigned Grantor and not described in the schedules to the Security Agreement, or another
Grantor Supplement or Collateral Supplement, (iii) as Annex III, where

Aircraft Mortgage and Security Agreement

A-1-1

 

 

required with respect to any Assigned Agreement relating to the foregoing Collateral, a copy
of the notice to each counterparty thereto and (iv) as Annex IV, with respect to any Assigned Lease
relating to the foregoing Collateral, the Lessee Notice.

          This Collateral Supplement is delivered in and shall in all respects be governed by, and
construed in accordance with, the laws of the State of New York, including all matters of
construction, validity and performance.

Very truly yours,

[—]

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Acknowledged and agreed to as of the date first above written:

CITIBANK, N.A.,

not in its individual capacity, but

solely as the Collateral Agent

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Aircraft Mortgage and Security Agreement

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ANNEX I

COLLATERAL SUPPLEMENT

AIRCRAFT OBJECTS

	 	 	 	 	 	 	 
	 	 	Airframe Manufacturer	 	 	 	Engine Manufacturer and
	Airframe MSN	 	and Model	 	Engine MSNs	 	Model
	 

	 	 
	 	 
	 	 

Aircraft Mortgage and Security Agreement

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ANNEX II

COLLATERAL SUPPLEMENT

PLEDGED EQUITY INTERESTS

PLEDGED BENEFICIAL INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Beneficial Interest
	 

	 	 
	 	 

PLEDGED MEMBERSHIP INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Membership Interest
	 

	 	 
	 	 

PLEDGED STOCK

	 	 	 	 	 
	Pledged Equity Party	 	Certificate No.	 	Percentage Stock
	 

	 	 
	 	 

PLEDGED DEBT

[-]

Aircraft Mortgage and Security Agreement

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ANNEX III

COLLATERAL SUPPLEMENT

[Insert copy of notice, if applicable]

Aircraft Mortgage and Security Agreement

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ANNEX IV

COLLATERAL SUPPLEMENT

[Insert Lessee Notice]

Aircraft Mortgage and Security Agreement

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EXHIBIT A-2

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF GRANTOR SUPPLEMENT

Citibank, N.A., as Collateral Agent

388 Greenwich Street, 14th Floor

New York, NY 10013

Attn: Jenny Cheng

Fax: 212-657-2762

	 	 	 

	 

	 	[Date]

     Re: Aircraft Mortgage and Security Agreement, dated as of March 30, 2011

Ladies and Gentlemen:

          Reference is made to the Aircraft Mortgage and Security Agreement, dated as of March 30, 2011
(the “Aircraft Mortgage and Security Agreement”), among PARK TOPANGA AIRCRAFT INC., a
California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC., a California corporation
(the “Borrower”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability company
incorporated under the laws of Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT
INC., a California corporation (the “CA Subsidiary Holdco”), and the ADDITIONAL GRANTORS
who from time to time become grantors under the Aircraft Mortgage and Security Agreement (together
with Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the
“Grantors”), and CITIBANK, N.A., a national banking association, as the collateral agent
(in such capacity, and together with any permitted successor or assign thereto or any permitted
replacement thereof, the “Collateral Agent”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the Aircraft Mortgage and
Security Agreement.

          The undersigned hereby agrees, as of the date first above written, to become a Grantor under
the Aircraft Mortgage and Security Agreement as if it were an original party thereto and agrees
that, except as otherwise provided or the context otherwise so requires, each reference in the
Aircraft Mortgage and Security Agreement to “Grantor” shall also mean and be a reference to the
undersigned.

          Grant of Security Interest. To secure the Secured Obligations, the undersigned Grantor hereby
assigns and pledges to the Collateral Agent for its benefit and the benefit of the other Secured
Parties and hereby grants to the Collateral Agent for its benefit and the benefit of the other
Secured Parties a first priority security interest in, all of its right, title and interest in and
to the following (collectively, the “Supplementary Collateral”):

          (a) all of such Grantor’s right, title and interest in and to (i) each Pool Aircraft,
including the Airframe and Engines with respect to such Pool Aircraft as the same is now and will
hereafter be constituted, and in the case of such Engines, whether or not any such Engine shall be
installed in or attached to the Airframe or any other airframe, together with (ii)

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all Parts of whatever nature, which are from time to time relating to any Airframe or Engine,
including all substitutions, renewals and replacements of and additions, improvements, accessions
and accumulations to the Airframe and Engines (other than additions, improvements, accessions and
accumulations which constitute appliances, parts, instruments, appurtenances, accessories,
furnishings or other equipment excluded from the definition of Parts), (iii) all Aircraft Documents
and (iv) any money or non-money proceeds of an Airframe or Engine arising from the total or partial
loss or destruction of such Airframe or its Engine or its total or partial confiscation,
condemnation or requisition up to the amount of hull insurance in respect of such Pool Aircraft
required to be carried hereunder;

          (b) all of such Grantor’s right, title and interest in and to all Leases to which such Grantor
is or may from time to time be party with respect to the Pool Aircraft, including any leasing
arrangements with respect to such Pool Aircraft among Grantors with respect to such Leases together
with all Related Collateral Documents (all such Leases and Related Collateral Documents, the
“Assigned Leases”), including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due under or pursuant to such Assigned Leases, (ii) all rights of
such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to
such Assigned Leases up to the amount of hull insurance in respect of such Pool Aircraft required
to be carried hereunder, (iii) claims of such Grantor for damages arising out of or for breach or
default under such Assigned Leases, (iv) all rights under any such Assigned Lease with respect to
any subleases of the Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor
to terminate such Assigned Leases and to compel performance of, and otherwise to exercise all
remedies under, any Assigned Lease, whether arising under such Assigned Leases or by statute or at
law or in equity (the “Lease Collateral”);

          (c) all of the following (the “Security Collateral”):

          (i) the Pledged Stock and the certificates representing such Pledged Stock, and all
dividends, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

          (ii) all additional shares of the capital stock of any other Pledged Equity Party from
time to time acquired by such Grantor in any manner, including the capital stock of any
other Pledged Equity Party that may be formed from time to time, and all certificates, if
any, representing such additional shares of the capital stock and all dividends, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all such additional shares; and

          (iii) the Pledged Debt and all instruments evidencing the Pledged Debt, and all
interest, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Debt (the
“Pledged Debt Collateral”);

          (d) all of the following (the “Membership Interest Collateral”):

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          (i) the Pledged Membership Interests, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Membership
Interests, any contracts and instruments pursuant to which any such Pledged Membership
Interests are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Membership Interests; and

          (ii) all of such Grantor’s right, title and interest in all additional membership
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the membership interests in any other Pledged Equity Party that may be
formed from time to time, and all certificates, if any, from time to time representing such
additional membership interests and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all such additional membership interests;

          (e) all of the following (the “Beneficial Interest Collateral”):

          (i) the Pledged Beneficial Interest, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Beneficial
Interest, any contracts and instruments pursuant to which any such Pledged Beneficial
Interest are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Beneficial Interest; and

          (ii) all of such Grantor’s right, title and interest in all additional beneficial
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the beneficial interests in any other Pledged Equity Party that may be
formed from time to time, the trust agreements and any other contracts and instruments
pursuant to which any such Pledged Equity Party is created or issued, and all certificates,
if any, from time to time representing such additional beneficial interests and all
distributions, cash, instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all such additional
beneficial interests;

          (f) all of the following (the “Assigned Agreement Collateral”):

          (i) all of such Grantor’s right, title and interest in and to all security assignments,
cash deposit agreements and other security agreements executed in its favor in respect of
any Pool Aircraft (including any Airframe and any Engine) or in respect of or pursuant to
any Assigned Lease, in each case as such agreements may be amended or otherwise modified
from time to time (collectively, the “Assigned Agreements”); and

          (ii) all of such Grantor’s right, title and interest in and to all property of whatever
nature, in each case pledged, assigned or transferred to it or mortgaged or charged in its
favor pursuant to any Assigned Agreement;

Aircraft Mortgage and Security Agreement

A-2-3

 

 

          (g) all of such Grantor’s right, title and interest in and to the Acquisition Agreements (the
“Aircraft Purchase Collateral”);

          (h) all right of such Grantor in and to the Collateral Account and all funds, cash, investment
property, investments, securities, instruments or other property (including all “financial assets”
within the meaning of Section 8-102(a)(9) of the UCC) at any time or from time to time credited to
any such account (collectively, the “Account Collateral”);

          (i) all of such Grantor’s right, title and interest in and to the personal property identified
as subject to the Lien hereof in a Grantor Supplement or a Collateral Supplement executed and
delivered by such Grantor to the Collateral Agent; and

          (j) all proceeds of any and all of the foregoing Collateral (including proceeds that
constitute property of the types described in subsections (a), (b), (c), (d), (e), (f), (g), (h)
and (i) above);

provided that the Collateral shall not include any Excluded Property.

          The undersigned Grantor hereby makes each representation and warranty set forth in Section
2.03 of the Aircraft Mortgage and Security Agreement (as supplemented by the attached Annexes I
through IV) with respect to itself and its Collateral and hereby agrees to be bound as a Grantor by
all of the terms and provisions of the Aircraft Mortgage and Security Agreement. Each reference in
the Aircraft Mortgage and Security Agreement to the Assigned Agreements, the Assigned Agreement
Collateral, the Acquisition Agreements, the Aircraft Purchase Collateral, the Assigned Leases,
Security Collateral, the Membership Interest Collateral, the Beneficial Interest Collateral, the
Assigned Documents, the Assigned Agreements and the Account Collateral shall be construed to
include a reference to the corresponding Collateral hereunder.

          The undersigned hereby agrees, together with the other Grantors, jointly and severally to
indemnify the Collateral Agent and its officers, directors, employees and agents in the manner set
forth in Section 7.01 of the Aircraft Mortgage and Security Agreement.

          Attached are (i) as Annex I, a duly completed description of each of the Aircraft Objects
constituting part of the Supplementary Collateral, (ii) as Annex II, a duly completed description
of the Pledged Equity Interests constituting part of the Supplementary Collateral, (iii) as Annex
III, a list of any trade names applicable to the undersigned Grantor, (iv) as Annex IV, the Chief
Executive Office, Chief Place of Business and Registered Office and Organizational ID (if
applicable) of the undersigned Grantor, (v) as Annex V, where required with respect to any Assigned
Agreement relating to the Supplementary Collateral, a copy of the notice to each counterparty
thereto and (vi) as Annex VI, with respect to any Assigned Lease relating to the Supplementary
Collateral, the Lessee Notice.

[Signature Page Follows]

Aircraft Mortgage and Security Agreement

A-2-4

 

 

          This Grantor Supplement is delivered in the State of New York and shall in all respects be
governed by, and construed in accordance with, the laws of the State of New York, including all
matters of construction, validity and performance.

Very truly yours,

[NAME OF GRANTOR]

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Acknowledged and agreed to as of the date first above written:

CITIBANK, N.A.,

not in its individual capacity, but solely as the

Collateral Agent

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Aircraft Mortgage and Security Agreement

A-2-5

 

 

	 	 	 	 	 

ANNEX I

GRANTOR SUPPLEMENT

AIRCRAFT OBJECTS

	 	 	 	 	 	 	 
	 	 	Airframe Manufacturer	 	 	 	Engine Manufacturer
	Airframe MSN	 	and Model	 	Engine MSNs	 	and Model
	 

	 	 
	 	 
	 	 

Aircraft Mortgage and Security Agreement

A-2-6

 

 

ANNEX II

GRANTOR SUPPLEMENT

PLEDGED EQUITY INTERESTS

PLEDGED BENEFICIAL INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Beneficial Interest
	 

	 	 
	 	 

PLEDGED MEMBERSHIP INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Membership Interest
	 

	 	 
	 	 

PLEDGED STOCK

	 	 	 	 	 
	Pledged Equity Party	 	Certificate No.	 	Percentage Stock
	 

	 	 
	 	 

PLEDGED DEBT

Aircraft Mortgage and Security Agreement

A-2-7

 

 

ANNEX III

GRANTOR SUPPLEMENT

TRADE NAMES

Aircraft Mortgage and Security Agreement

A-2-8

 

 

ANNEX IV

GRANTOR SUPPLEMENT

	 	 	 

	Name of Grantor

	 	Chief Executive Office, Chief Place of

Business and Registered Office and Organizational ID

(if applicable)

Aircraft Mortgage and Security Agreement

A-2-9

 

 

ANNEX V

COLLATERAL SUPPLEMENT

[Insert copy of notice, if applicable]

Aircraft Mortgage and Security Agreement

A-2-10

 

 

ANNEX VI

COLLATERAL SUPPLEMENT

[Insert Lessee Notice]

Aircraft Mortgage and Security Agreement

A-2-11

 

 

EXHIBIT B

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF CHARGE OVER SHARES OF IRISH SUBSIDIARY HOLDCO

[SEE ATTACHED]

Aircraft Mortgage and Security Agreement

B-1

 

 

March__ 2011

SHARE CHARGE

between

TEMESCAL AIRCRAFT INC.

as Chargor

and

CITIBANK, N.A.

as Chargee

in respect of shares of

Ballysky Aircraft Ireland Limited

A & L GOODBODY

1

 

THIS SHARE CHARGE is made on March__ 2011

BETWEEN

	 	(1)	 	TEMESCAL AIRCRAFT INC., a company incorporated under the laws of California
(the Chargor); and
	 
	 	(2)	 	CITIBANK, N.A., a national banking association as the collateral agent under
the Security Agreement (as defined below), (the Chargee);

WHEREAS:

	A.	 	By a term loan credit agreement dated as of March__
2011 made between Temescal Aircraft Inc.
as borrower, ILFC, Topanga Park Aircraft Inc., Charmlee Aircraft Inc and Ballysky Aircraft
Ireland Limited (the Company) as obligors, the lenders identified therein as lenders,
Citibank, N.A. as administrative agent and collateral agent (the Collateral Agent), Citigroup
Global Markets Inc. and Credit Suisse Securities (USA) LLC as joint lead structuring agents
and joint lead placement agents and BNP Paribas as joint placement agent (the Credit
Agreement) the Lenders have agreed to make available a term loan facility to the Borrower.
	 
	B.	 	By an aircraft mortgage and security agreement dated as of March__ 2011 between the Chargor
and others and the additional grantors referred to therein as Grantors and the Chargee, as the
Collateral Agent, such Grantors have agreed to grant certain security to the Chargee (the
Security Agreement).
	 
	C.	 	Pursuant to the terms of the Credit Agreement, the Chargor has agreed to grant this charge
over the shares in the Company.
	 
	D.	 	The terms and conditions of this Charge are acceptable to the Chargee.

NOW THIS CHARGE WITNESSETH as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1.	 	In this Charge (including the Recitals), words and expressions defined in the Security
Agreement shall (unless otherwise defined herein or the context requires otherwise) have the
same meaning herein and the following words and expressions shall have the following meanings,
except where the context otherwise requires:
	 
	 	 	Act means the Land and Conveyancing Law Reform Act 2009;
	 
	 	 	this Charge means this share charge;
	 
	 	 	Company means Ballysky Aircraft Ireland Limited (registered number 495999), a company
incorporated in Ireland having its registered office at 30 North Wall Quay, Dublin 1,
Ireland;
	 
	 	 	Charged Property means:

	 	(1)	 	all the issued shares in the capital of the Company as described
in Schedule A and all other shares and share warrants in the capital of the
Company from time to time legally or beneficially owned by the Chargor during
the Security Period (together the Charged Shares); and
	 
	 	(2)	 	including in each case all proceeds of sale thereof and all
dividends, interest or other distributions hereafter declared, made, paid or
payable in respect of the same and all allotments, accretions, offers, rights,
benefits and advantages whatsoever at any time accruing, offered or arising in
respect of or incidental to the same and all stocks, shares, rights, money or
property accruing thereto or offered at any time by way of conversion,
redemption, bonus, preference, option, substitution, capital redemption or
otherwise in respect thereof;

2

 

	 	 	 	provided, however, that notwithstanding any of the foregoing provisions, so
long as no Event of Default shall have occurred and be continuing and the Loans have been
accelerated and for so long as such acceleration shall not have been rescinded, the Chargor
shall have the right, to the exclusion of the Chargee to (i) all distributions, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Charged Property, and once
paid by Chargor to a non-Grantor under the Security Agreement, shall be free and clear of
the Charge hereof and shall not constitute Charged Property, and if an Event of Default
shall have occurred and be continuing and the Loans have been accelerated and for so long as
such acceleration shall not have been rescinded, Chargor shall not make any such payment to
a non-Grantor without the Chargee’s consent; provided further that the
Charged Property shall not include any Excluded Property.
	 
	 	 	 	Charged Shares has the meaning assigned thereto in the definition of Charged Property;
	 
	 	 	 	Event of Default means any Event of Default as defined in the Credit Agreement;
	 
	 	 	 	Loan Document has the meaning given to it in the Credit Agreement;
	 
	 	 	 	Parties mean the parties to this Charge;
	 
	 	 	 	Receiver means a receiver (whether appointed pursuant to this Charge, pursuant to any
statute, by a court or otherwise) of the Charged Property or any part of it;
	 
	 	 	 	Secured Obligations has the meaning given to it in the Security Agreement;
	 
	 	 	 	Secured Party means any of or, in the plural form, all of the Chargee, the Lenders, the
Administrative Agent and the Syndication Agent; and
	 
	 	 	 	Security Period means the period commencing on the date of execution of this Charge and
terminating upon the date on which the Secured Obligations have been unconditionally and
irrevocably paid and discharged in full.

	1.2.	 	In this Charge:

	 	1.2.1.	 	words and phrases the definition of which is contained in or referred to section 2 of
the Companies Act, 1963 are to be construed as having the meaning attributed to them
therein;
	 
	 	1.2.2.	 	references to statutory provisions shall be construed as references to those
provisions as amended or re-enacted or as their application is modified by other
provisions from time to time and shall include references to any provisions of which
they are reenactments (whether with or without modification);
	 
	 	1.2.3.	 	references to clauses, recitals and schedules are references to clauses hereof,
recitals hereof and schedules hereto; references to sub-clauses or paragraphs are,
unless otherwise stated, references to sub-clauses of the clause or paragraphs of the
schedule in which the reference appears;
	 
	 	1.2.4.	 	references to the singular shall include the plural and vice versa and references to
the masculine shall include the feminine or neuter and vice versa;
	 
	 	1.2.5.	 	references to persons shall include natural persons, firms, partnerships, companies,
corporations, associations, organisations, governments, states, foundations, trusts,
bodies of persons whether incorporated or unincorporated (in each case whether or not
having a separate legal personality);
	 
	 	1.2.6.	 	references to assets include property, rights and assets of every description;
	 
	 	1.2.7.	 	references to any document are to be construed as references to such document as
amended, varied, assigned, novated, restated or supplemented from time to time;
	 
	 	1.2.8.	 	references to any person shall be construed so as to include that person’s
successors, assigns and transferees;
	 
	 	1.2.9.	 	any reference to a legal term for any action, remedy, method of judicial proceeding,
legal

3

 

	 	document, legal status, court, official or any legal concept or thing is, in respect
of any jurisdiction other than Ireland, shall be deemed to include a reference to
what mostly nearly approximates in that jurisdiction to the Irish legal term;
	 
	 	1.2.10.	 	the headings are inserted for convenience only and are not to affect the
construction of this Charge; and
	 
	 	1.2.11.	 	any phrase introduced by the terms “including”, “include”, “in particular” or any
similar expression is to be construed as illustrative and shall not limit the sense of
the words proceeding those terms.

	2.	 	COVENANT TO PAY AND PERFORM
	 
	2.1.	 	The Chargor hereby covenants and undertakes with the Chargee that it shall pay and discharge
the Secured Obligations as and when they become due to be paid or discharged as and to the
extent provided in the Credit Agreement, this Charge or any other Loan Document.
	 
	2.2.	 	The Chargor shall pay interest on any delinquent sum (before and after any judgment) from the
date of demand until the date of payment calculated on a daily basis in accordance with the
provisions of the Credit Agreement.
	 
	2.3.	 	Any payment made by the Chargor under this Charge shall be made free and clear of and without
any deduction for or on account of any set-off or counterclaim.
	 
	3.	 	SECURITY
	 
	3.1.	 	As a continuing security for the payment and performance of the Secured Obligations, the
Chargor as legal and beneficial owner hereby charges to the Chargee, by way of a first fixed
charge, all of its right, title and interest in and to the Charged Property.
	 
	3.2.	 	The Chargor hereby agrees to deliver to the Chargee, on the date of execution of this Charge:

	 	3.2.1.	 	an undated stock transfer form (executed in blank by or on behalf of the Chargor) in
respect of all the Charged Shares;
	 
	 	3.2.2.	 	all share certificates, warrants and other documents of title representing the
Charged Shares together with a certified copy of the up to date register of members of
the Company;
	 
	 	3.2.3.	 	an undated irrevocable proxy in respect of the Charged Shares executed by the
Chargor, in the for set out in Schedule C to this Charge;
	 
	 	3.2.4.	 	an irrevocable appointment signed by the Chargor in respect of the Charged Shares, in
the form set out in Schedule D to this Charge; and
	 
	 	3.2.5.	 	executed but undated letters of resignation and release from each of the directors,
alternate directors and secretary of the Company appointed by the Chargor in the forms
set out in Schedule B to this Charge.

The Chargee acknowledges and agrees that if at any time the Secured Obligations have been
unconditionally and irrevocably paid and discharged in full it shall, or if otherwise
required pursuant to this Charge or the Security Agreement or the Credit Agreement, the
Chargee shall deliver the documents referred to in this clause 3.2 to the Chargor or to a
new Chargee if so instructed by the Chargor and thereafter during the Security Period, such
documents shall be held by the new Chargee.

	3.3.	 	The Chargor will procure that, for the duration of the Security Period, there shall be (a) no
increase or reduction in the authorised or issued share capital of the Company, (b) no
variation of the rights attaching to or conferred by the Charged Property or any part of it,
and (c) no alteration to the constitutive documents of the Company, in each case, without the
prior consent in writing of the Chargee (not to be unreasonably withheld), but the foregoing
shall not be interpreted as requiring the Chargee’s consent to further capital contribution to
the Company by the Chargor.

4

 

	3.4.	 	The Chargor will deliver, or cause to be delivered, to the Chargee immediately upon (subject
to clause 3.3) the issue of any further Charged Shares, the items listed in clauses 3.2.1 and
3.2.2 in respect of all such further Charged Shares.
	 
	3.5.	 	The Chargor will deliver or cause to be delivered, to the Chargee immediately upon (subject
to clause 3.3) the appointment of any further director, alternate director or officer of the
Company an undated, signed letter of resignation from such further director, alternate
director or officer in a form acceptable to the Chargee.
	 
	3.6.	 	The Chargor hereby covenants that, except as otherwise provided in the Loan Documents, during
the Security Period:

	 	3.6.1.	 	it will remain the legal and beneficial owner of the Charged Property;
	 
	 	3.6.2.	 	it will not create or suffer the creation or existence of any Liens (other than
Permitted Liens) on or in respect of the whole of any part of the Charged Property or
any of its interest therein;
	 
	 	3.6.3.	 	it will not sell, assign, transfer or otherwise dispose of any of its interest in the
Charged Property in any such case, without the prior consent in writing of the Chargee;
	 
	 	3.6.4.	 	it will not permit any person other than the Chargee (or such person as may be
specified for this purpose in writing by the Chargee) to be registered as holder of the
Shares or any part thereof;
	 
	 	3.6.5.	 	it will duly and promptly pay all calls, instalments or other payments which may be
or become due in respect of the Charged Shares as and when the same from time to time
become due;
	 
	 	3.6.6.	 	it will promptly give to the Chargee all material notices and other documents
received in respect of the Charged Shares;
	 
	 	3.6.7.	 	it will ensure that, except as required by law, the Charged Shares are, and at all
times remain, free from any restriction on transfer to the Chargee, its nominee(s) or
to any purchaser from the Chargee pursuant to the exercise of any rights or remedies of
the Chargee under or pursuant to this Charge;
	 
	 	3.6.8.	 	it will notify the Chargee immediately upon receipt of any notice issued under
section 16(1) of the Companies Act, 1990 in respect of all or any of the Charged Shares
or upon becoming aware that any such notice has been issued or that steps have been
taken or are about to be taken to obtain an order for the sale of all or any of the
Charged Shares under section 16(7) of the Companies Act 1990;
	 
	 	3.6.9.	 	it will not claim any set-off or counterclaim against the Chargee or any Secured
Party;
	 
	 	3.6.10.	 	following the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been
rescinded, it will not claim or prove in competition with the Chargee or any Secured
Party in the bankruptcy or liquidation of the Company or have the benefit of, or share
in, any payment from or composition with, the Company for any indebtedness of the
Company provided that if so directed by the Chargee, it will prove for the whole or any
part of its claim in the liquidation or bankruptcy of the Company on terms that the
benefit of such proof and of all money received by it in respect thereof shall be held
on trust for the Chargee and applied in or towards the discharge of the liabilities and
obligations of the Chargor to the Chargee under this Charge in such manner as the
Chargee shall deem appropriate;
	 
	 	3.6.11.	 	it will not exercise its rights of subrogation against the Company;
	 
	 	3.6.12.	 	following the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been
rescinded, it will take such action as the Chargee may, in its absolute discretion,
direct in the event that it becomes possible (whether under the terms of issue of the
Charged Shares, a reorganisation or otherwise) to convert or exchange the Charged
Shares or have them repaid or in the event that any offer to purchase is made in
respect of the Charged Shares or any proposal is made for
varying or abrogating any rights attaching to them; and

5

 

	 	3.6.13.	 	it will not permit any of the Charged Shares to be redeemed and repaid.

	3.7.	 	The Chargor shall remain liable to perform all the obligations assumed by it in relation to
the Charged Property and the Chargee shall be under no obligation of any kind whatsoever in
respect thereof or be under any liability whatsoever in the event of any failure by the
Chargor to perform its obligations in respect thereof.
	 
	3.8.	 	For the avoidance of doubt, the Chargee shall not in any circumstances incur and liability
whatsoever in respect of any calls, instalments or otherwise in connection with the Charged
Property.
	 
	3.9.	 	Upon the Chargee being satisfied that the Secured Obligations have been unconditionally and
irrevocably paid and discharged in full, or as otherwise provided in the Credit Agreement or
the other Loan Documents, and following a written request therefor from the Chargor, the
Chargee will, subject to being indemnified to their reasonable satisfaction for the costs and
expenses incurred by the Chargee in connection therewith, release the security constituted by
this Charge.
	 
	4.	 	REPRESENTATIONS AND WARRANTIES OF THE CHARGOR
	 
	4.1.	 	The Chargor hereby represents and warrants to the Chargee and the Secured Parties that:

	 	4.1.1.	 	it is not in breach of any of its obligations under this Charge;
	 
	 	4.1.2.	 	the Chargor is the sole legal and beneficial owner of all of the Charged Property
free from any Lien (other than any Permitted Lien) and any options or rights of
pre-emption;
	 
	 	4.1.3.	 	the Chargor has not sold or otherwise disposed of or agreed to sell or otherwise
dispose of or granted or agreed to grant any option in respect of the Charged Property
and, except as otherwise permitted under the Loan Documents, will not do any of the
foregoing at any time during the Security Period;
	 
	 	4.1.4.	 	it is not necessary that this Charge be filed, recorded or enrolled with any court or
other authority in Ireland or any other jurisdiction (except filing with the Irish
Companies Registration Office pursuant to Section 111 of the Companies Act 1963 and
under the Uniform Commercial Code enacted in any jurisdiction);
	 
	 	4.1.5.	 	the Charged Shares constitute all of the issued share capital of the Company;
	 
	 	4.1.6.	 	the Charged Shares have been duly authorised, validly issued and are fully paid or
credited as fully paid, no calls have been made in respect thereof and remain unpaid
and no calls can be made in respect of such Charged Shares in the future;
	 
	 	4.1.7.	 	the terms of the Charged Shares and of the constitutive documents of the Company do
not restrict or otherwise limit the Chargor’s right to transfer or charge the Charged
Shares and the directors of the Company cannot refuse to register any transfer of the
Charged Shares to the Chargee or any party nominated by the Chargee;
	 
	 	4.1.8.	 	it will not be required to make any deduction or withholding from any payment it may
make under this Charge.

	4.2.	 	The Chargor acknowledges that the Chargee has entered into this Charge in reliance on the
representations and warranties set out in Clause 4.1.
	 
	5.	 	DEALINGS WITH CHARGED PROPERTY
	 
	5.1.	 	Unless and until the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been rescinded:

	 	5.1.1.	 	subject always to Clause 3.3, the Chargor shall continue to be entitled to exercise
all voting and consensual powers pertaining to the Charged Property or any part thereof
for all purposes not inconsistent with the terms of this Charge; and

6

 

	 	5.1.2.	 	the Chargor shall be entitled to receive and retain any cash dividends, but not other
moneys or assets accruing on or in respect of the Charged Property or any part thereof
	 
	 	provided that the Chargor shall not exercise such voting rights in any manner which would,
or would be reasonably likely to, violate the Credit Agreement or the Security Agreement.

	5.2.	 	The Chargor shall pay when due all calls, installments or other payments and shall discharge
all other obligations, which may become due in respect of any of the Charged Property and
following the occurrence of an Event of Default which is continuing and the acceleration of
the Loans and for so long as such acceleration shall not have been rescinded, the Chargee may
if it thinks fit (but shall not be obliged to) make such payments or discharge such
obligations on behalf of the Chargor. Any sums so paid by the Chargee in respect thereof
shall be repayable on demand by the Chargor with interest thereon calculated in accordance
with clause 2.2 and pending such repayment shall constitute part of the Secured Obligations.
	 
	5.3.	 	The Chargee shall not have any duty to ensure that any dividends, interest or other moneys
and assets receivable in respect of the Charged Property are duly and punctually paid,
received or collected as and when the same become due and payable or to ensure that the
correct amounts (if any) are paid or received on or in respect of the Charged Property or to
ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other
property paid, distributed, accruing or offered at any time by way of redemption, bonus,
rights, preference, or otherwise on or in respect of, any of the Charged Property.
	 
	5.4.	 	The Chargor hereby authorises the Chargee to arrange at any time and from time to time (after
the occurrence of an Event of Default which is continuing and the acceleration of the Loans
and for so long as such acceleration shall not have been rescinded) for the Charged Property
or any part thereof to be registered in the name of the Chargee (or its nominee) thereupon to
be held, as so registered, subject to the terms of this Charge.
	 
	5.5.	 	The Chargor may not take any action in relation to the Charged Property or this Charge under
the provisions of Section 94 of the Act (Court order for sale).
	 
	6.	 	PRESERVATION OF SECURITY
	 
	6.1.	 	It is hereby agreed and declared that:

	 	6.1.1.	 	the security created by this Charge shall be held by the Chargee as a continuing
security for the payment and discharge of the Secured Obligations and the security so
created shall not be satisfied by any intermediate payment or satisfaction of any part
of the Secured Obligations;
	 
	 	6.1.2.	 	the security created by this Charge is in addition to and independent of and shall
not prejudice or merge with any other security (or any right of set-off) which the
Chargee may hold at any time for the Secured Obligations or any of them;
	 
	 	6.1.3.	 	the Chargee shall not be bound to seek to recover any amounts due from the Borrowers
or any other person, exercise any rights against a Borrower or any other person or
enforce any other security before enforcing the security created by this Charge;
	 
	 	6.1.4.	 	no delay or omission on the part of the Chargee in exercising any right, power or
remedy under this Charge shall impair such right, power or remedy or be construed as a
waiver thereof nor shall any single or partial exercise of any such right, power or
remedy preclude any further exercise thereof or the exercise of any other right, power
or remedy. The rights, powers and remedies herein provided are cumulative and not
exclusive of any rights, powers and remedies provided by law and may be exercised from
time to time and as often as the Chargee may deem expedient; and
	 
	 	6.1.5.	 	any waiver by the Chargee of any terms of this Charge shall only be effective if
given in writing and then only against the Chargee and for the purpose and upon the
terms for which it is given.

	6.2.	 	Where any discharge is made in whole or in part or any arrangement is made on the faith of
any payment, security or other disposition which is avoided or must be repaid on bankruptcy,
liquidation, by

7

 

	 	 	virtue of Section 1001 of the Taxes Consolidation Act 1997 or otherwise without limitation,
this Charge shall continue in force as if there had been no such discharge or arrangement.
The Chargee shall be entitled to concede or compromise in good faith any claim that any such
payment, security or other disposition is liable to avoidance or repayment.

	6.3.	 	Until the Secured Obligations have been unconditionally and irrevocably satisfied and
discharged in full to the satisfaction of the Chargee or as otherwise provided in the Credit
Agreement or the Security Agreement, the Chargee may at any time keep in a separate account or
accounts (without liability to pay interest thereon) in the name of the Chargee for as long as
the Chargee may think fit, any moneys received recovered or realised under this Charge or
under any other guarantee, security or agreement relating in whole or in part to the Secured
Obligations without being under any intermediate obligation to apply the same or any part
thereof in or towards the discharge of such amount except as otherwise provided in the Loan
Documents.
	 
	7.	 	ENFORCEMENT OF SECURITY
	 
	7.1.	 	The security hereby constituted shall become enforceable upon the occurrence of an Event of
Default which is continuing and the acceleration of the Loans and for so long as such
acceleration shall not have been rescinded.
	 
	7.2.	 	At any time after the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been rescinded,
the rights conferred on the Chargee under this Charge or by law shall be immediately
exercisable upon and at any time thereafter and, without prejudice to the generality of the
foregoing, the Chargee or any Receiver appointed hereunder without further notice to the
Chargor:

	 	7.2.1.	 	may solely and exclusively exercise all voting and/or consensual powers pertaining to
the Charged Property or any part thereof and may exercise such powers in a such manner
as the Chargee may think fit; and/or
	 
	 	7.2.2.	 	may complete any share transfer forms then held by the Chargee pursuant to this
Charge in the name of the Chargee (or its nominee) and the Chargor shall do whatever
the Chargee requires in order to procure the prompt registration of such transfer and
the prompt issue of a new certificate or certificates for the relevant Charged Property
in the name of the Chargee; and/or
	 
	 	7.2.3.	 	date any or all, as the Chargee in its absolute discretion may deem appropriate, of
the letters of resignation of the Directors and Secretary of the Company provided to
the Chargee pursuant to clause 3.2.5, the proxy provided to the Chargee pursuant to
clause 3.2.3 and the appointment provided to the Chargee pursuant to clause 3.2.4 and
sign, seal, execute, deliver, acknowledge, file and register all such documents,
instruments, agreements, certificates and any other document (including, but not
limited to, such letters of resignation) and do any and all such other acts or things
as the Chargee may in its absolute discretion deem necessary or desirable to remove any
or all of the Directors and/or Secretary from the office of director or, as the case
may be, secretary of the Company.
	 
	 	7.2.4.	 	may receive and retain all dividends, interest or other moneys or assets accruing on
or in respect of the Charged Property or any part thereof, such dividends, interest or
other moneys or assets to be held by the Chargee, as additional security charged under
and subject to the terms of this Charge and any such dividends, interest and other
moneys or assets received by the Chargor after such time shall be held in trust by the
Chargor for the Chargee and paid or transferred to the Chargee on demand; and/or
	 
	 	7.2.5.	 	may sell, transfer, grant options over or otherwise dispose of the Charged Property
or any part thereof at such place and in such manner and at such price or prices as the
Chargee may deem fit, and thereupon the Chargee shall have the right to deliver, assign
and transfer in accordance therewith the Charged Property so sold, transferred, granted
options over or otherwise disposed of.

	7.3.	 	At any time after the security constituted by this Charge has become enforceable:

	 	7.3.1.	 	the statutory power of sale conferred by section 100 (Power of sale) of the Act free
from restrictions contained in section 100(1)(a), (b), (c), (2), (3) and (4) and
without the requirement

8

 

	 	to serve notice (as provided for in section 100(1)); and
	 
	 	7.3.2.	 	the incidental powers of sale conferred by section 102 (Incidental powers)
	 
	 	will immediately arise and be exercisable by the Chargee and/or any Receiver (as
appropriate).

	7.4.	 	Upon any sale of the Charged Property or any part thereof by the Chargee, the purchaser shall
not be bound to see or enquire whether the Chargee’s power of sale has become exercisable in
the manner provided in this Charge and for the purposes and benefit of such purchaser the sale
shall be deemed to be within the power of the Chargee, and the receipt of the Chargee for the
purchase money shall effectively discharge the purchaser who shall not be concerned with the
manner of application of the proceeds of sale or be in any way answerable therefor.
	 
	7.5.	 	The Chargee shall not be obliged to make any enquiry as to the nature or sufficiency of any
payment received by it under this Charge or to make any claim or to take any action to collect
any moneys assigned by this Charge or to enforce any rights or benefits assigned to it by this
Charge or to which the it may at any time be entitled hereunder.
	 
	7.6.	 	Neither the Chargee nor any of its respective agents, managers, officers, employees,
delegates and advisers shall be liable for any claim, demand, liability, loss, damage, cost or
expense incurred or arising in connection with the exercise or purported exercise of any
rights, powers and discretions hereunder in the absence of gross negligence, dishonesty or
willful default.
	 
	7.7.	 	The provisions of section 97 of the Act (Taking possession), section 99(1) (Mortgagee in
possession) and section 101 (Applications under sections 97 and 100) shall not apply to this
Charge.
	 
	7.8.	 	Receivers

	 	7.8.1.	 	At any time after the occurrence of an Event of Default and for so long as it is
continuing and the acceleration of the Loans and for so long as such acceleration shall
not have been rescinded, the Chargee may by a written instrument and without notice to
any party appoint a Receiver of the Charged Property or any part of it. A Receiver so
appointed shall be the agent of the Chargor and the Chargor shall be solely responsible
for his acts, defaults and remuneration but the Chargee will have power from time to
time to fix the remuneration of any Receiver and direct payment thereof out of the
proceeds of the Charged Property. The restrictions contained in section 108(1) and the
provisions of sub-sections 108(4) and (7) (Appointment of a Receiver) of the Act will
not apply to the appointment of a Receiver under this clause 7.8.1;
	 
	 	7.8.2.	 	The Chargee may by instrument in writing delegate to any such Receiver all or any of
the rights, powers and discretions vested in it by this Charge pursuant to section
108(3) of the Act;
	 
	 	7.8.3.	 	The Chargee may by instrument in writing delegate to any such Receiver all or any of
the rights, powers and discretions vested in it by this Charge;
	 
	 	7.8.4.	 	In addition to the powers conferred on the Chargee by this Charge, the Receiver
appointed pursuant to Clause 7.8.1 shall have in relation to the Charged Property all
the powers conferred by the Act (as extended by this Charge) on a Receiver appointed
under that Act;
	 
	 	7.8.5.	 	The Chargee shall not be responsible for any negligence on the part of a Receiver,
provided that the Chargee shall have used bona fides in the appointment of such
Receiver;
	 
	 	7.8.6.	 	Neither the Chargee nor any Receiver appointed under this Charge shall be liable to
account as mortgagee in possession in respect of any of the Charged Property or be
liable for any loss upon realisation or for any neglect or default of any nature
whatsoever (except to the extent that the same results from their or his gross
negligence or willful default in connection with any of the Charged Property) for which
a mortgagee in possession might as such be liable and all costs, charges and expenses
incurred by the Chargee or any Receiver appointed hereunder (including the costs of any
proceedings to enforce the security) together with all Value Added Tax thereon shall be
paid by the Chargor on a solicitor and own client basis and shall form part of the
Secured Obligations and be charged on and paid out of the Charged Property; and
	 
	 	7.8.7.	 	All amounts realized by the Chargee in connection with the exercise of rights and
remedies

9

 

	 	 	 	hereunder shall be applied by the Chargee as provided in section 3.02 (Priority of
Payments) of the Security Agreement. To the extent relevant, the subordination
arrangements set forth in Sections 2, 5 and 6 of the Intercreditor Agreement shall
apply to this Charge.

	8.	 	FURTHER ASSURANCES
	 
	8.1.	 	The Chargor shall from time to time at its expense, but only to the extent required by the
Express Perfection Requirements, execute and deliver any and all such further instruments and
documents and take all such actions as the Chargee in its reasonable discretion may require
for:

	 	8.1.1.	 	perfecting, protecting or ensuring the priority of the security hereby created (or
intended to be created);
	 
	 	8.1.2.	 	preserving or protecting any of the rights of the Chargee under this Charge;
	 
	 	8.1.3.	 	ensuring that the security constituted by this Charge and the covenants and
obligations of the Chargor under this Charge shall enure to the benefit of any assignee
of the Chargee;
	 
	 	8.1.4.	 	facilitating the appropriation or realisation of the Charged Property or any part
thereof; or
	 
	 	8.1.5.	 	the exercise of any power, authority or discretion vested in the Chargee under this
Charge,
	 
	 	 	 	in any such case, forthwith upon demand by the Chargee and at the expense of the Chargor.

	9.	 	INDEMNITIES
	 
	9.1.	 	The Chargor will indemnify and save harmless the Chargee and each of its agents or attorneys
appointed under or pursuant to this Charge from and against any and all expenses, claims,
liabilities, losses, taxes, costs, duties, fees and charges suffered, incurred or made by the
Chargee or such agent or attorney:

	 	9.1.1.	 	in the exercise or purported exercise of any rights, powers or discretions vested in
them pursuant to this Charge;
	 
	 	9.1.2.	 	in the preservation or enforcement of the Chargee’s rights under this Charge or the
priority thereof; or
	 
	 	9.1.3.	 	on the release of any part of the Charged Property from the security created by this
Charge,
	 
	 	 	 	as provided in the Security Agreement and subject to the terms thereof.

	9.2	 	If, under any applicable law or regulation, and whether pursuant to a judgment being made or
registered against the Chargor or the bankruptcy or liquidation of the Chargor or for any
other reason any payment under or in connection with this Charge is made or fails to be
satisfied in a currency (the Payment Currency) other than the currency in which such payment
is due under or in connection with this Charge (the Contractual Currency), then to the extent
that the amount of such payment actually received by the Chargee when converted into the
Contractual Currency at the rate of exchange, falls short of the amount due under or in
connection with this Charge, the Chargor, as a separate and independent obligation, shall
indemnify and hold harmless the Chargee against the amount of such shortfall. For the
purposes of this clause 9.2, rate of exchange means the rate at which the Chargee is able on
or about the date of such payment to purchase the Contractual Currency with the Payment
Currency and shall take into account any premium and other costs of exchange with respect
thereto.
	 
	10.	 	POWER OF ATTORNEY

	10.1.	 	The Chargor by way of security hereby irrevocably appoints and constitutes the Chargee and
any Receiver jointly and also severally the attorney or attorneys of the Chargor on the
Chargor’s behalf and in the name of the Chargor or otherwise and to do all acts and to
execute, seal or otherwise affect any deed, assurance, agreement, instrument, document or act
which the Chargor could itself do in relation to the Charged Property or which may be required
or which may be deemed proper for any of the

10

 

	 	 	matters provided for in this Charge.

	10.2.	 	The power hereby conferred shall be a general power of attorney and the Chargor hereby
ratifies and confirms and agrees to ratify and confirm any instrument, act or thing which any
such attorney may execute or do. In relation to the power referred to herein, the exercise by
the Chargee of such power shall be conclusive evidence of its right to exercise the same.
	 
	10.3.	 	This power shall not become exercisable unless and until an Event of Default has occurred
and is continuing and the Loans have been accelerated and for so long as such acceleration
shall not have been rescinded.
	 
	11.	 	EXPENSES
	 
	11.1.	 	As and to the extent provided in the Credit Agreement and the Security Agreement, the
Chargor shall pay to the Chargee within 10 Business Days of demand all costs, fees and
expenses (including, but not limited to, legal fees and expenses) and taxes thereon incurred
by the Chargee (or any Secured Party) or for which the Chargee may become liable in connection
with:

	 	11.1.1.	 	the negotiation, preparation and execution of this Charge;
	 
	 	11.1.2.	 	the preserving or enforcing of, or attempting to preserve or enforce, any of its
rights under this Charge or the priority hereof;
	 
	 	11.1.3.	 	any variation of, or amendment or supplement to, any of the terms of this Charge;
and /or
	 
	 	11.1.4.	 	any consent or waiver required from the Chargee in relation to this Charge,

	 	 	and in the case referred to in clauses 11.1.3 and 11.1.4 regardless of whether the same is
actually implemented, completed or granted, as the case may be.
	 
	11.2.	 	The Chargor shall pay promptly all stamp, documentary, registration and other like duties
and taxes to which this Charge may be subject or give rise and shall indemnify the Chargee on
demand against any and all liabilities with respect to or resulting from any delay or omission
on the part of the Chargor to pay any such duties or taxes.
	 
	11.3.	 	The provisions of section 109 (Application of money received) of the Act shall not apply to
this Charge.
	 
	12.	 	ASSIGNMENTS
	 
	12.1.	 	This Charge shall be binding upon and shall enure to the benefit of the Chargor and the
Chargee and each of their respective successors and (subject as hereinafter provided) assigns
and references in this Charge to any of them shall be construed accordingly.
	 
	12.2.	 	The Chargor may not assign or transfer all or any part of its rights and/or obligations
under this Charge except as provided under the Credit Agreement or the Security Agreement.
	 
	12.3.	 	The Chargee may assign or transfer all or any part of its rights or obligations under this
Charge as provided in the Security Agreement. The Chargee will be entitled to disclose any
information concerning the Chargor to any proposed assignee or transferee. The Chargee shall
notify the Chargor promptly following any such assignment or transfer.
	 
	12.4.	 	In the event of assignment or transfer by the Chargee as permitted by clause 12.3, the
Chargor shall at the request of the Chargee join in such assignment or transfer so as to cause
the full benefit of this Charge to be passed to the relevant assignee or transferee.
	 
	13.	 	MISCELLANEOUS
	 
	13.1.	 	The Chargee, at any time and from time to time, may delegate by power of attorney or in any
other manner to any person or persons all or any of the powers, authorities and discretions
which are for the time being exercisable by the Chargee under this Charge in relation to the
Charged Property or any part thereof. Any such delegation may be made upon such terms and be
subject to the regulations as

11

 

	 	 	the Chargee may think fit. The Chargee shall not be in any way liable or responsible to the
Chargor for any loss or damage arising from any act, default, omission or misconduct on the
part of any such delegate provided that the Chargee has acted reasonably in selecting such
delegate.

	13.2.	 	If any of the clauses, conditions, covenants or restrictions (the Provision) of this Charge
or any deed or document emanating from it shall be found to be void but would be valid if some
part thereof were deleted or modified, then the Provision shall apply with such deletion or
modification as may be necessary to make it valid and effective.
	 
	13.3.	 	This Charge (together with any documents referred to herein) constitutes the whole agreement
between the Parties relating to its subject matter and no variations hereof shall be effective
unless made in writing and signed by each of the Parties.
	 
	13.4.	 	This Charge may be executed in counterparts each of which when executed and delivered shall
constitute an original but all such counterparts together shall constitute one and the same
instrument.
	 
	13.5.	 	A certificate of the Chargee as to the amount of any Secured Obligation owed to it (whether
for itself or in a representative capacity) shall, in the absence of manifest error, be
conclusive evidence of the existence and amount of such Secured Obligation.
	 
	13.6.	 	If the Chargee causes or requires Charged Property to be registered in the name of a nominee
for the Chargee, any reference in this Charge to the Chargee shall, if the context so permits
or requires, be construed as a reference to each of the Chargee and such nominee.
	 
	13.7.	 	The rights and remedies of the Chargee under this Charge are cumulative and without
prejudice and in addition to any rights or remedies which the Chargee may have at law or in
equity. No exercise by the Chargee of any right or remedy under this Charge or at law or in
equity shall (save to the extent, if any, provided expressly in this Charge, or at law or in
equity) operate so as to hinder or prevent the exercise by it of any other right or remedy.
Each and every right and remedy may be exercised from time to time as often and in such order
as may be deemed expedient by the Chargee.
	 
	14.	 	LIMIT OF LIABILITY
	 
	 	 	The provisions of section 8.13 (Limited Recourse) of the Security Agreement shall apply
mutatis mutandis to this Charge as if written out in full herein.
	 
	15.	 	LAW AND JURISDICTION
	 
	15.1.	 	This Charge, and any non-contractual obligations arising out of or in connection with this
Charge, shall be governed and construed in accordance with Irish law.
	 
	15.2.	 	The Chargor irrevocably agrees for the benefit of the Chargee that the courts of Ireland
shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle
any disputes, whether relating to a contractual or non-contractual obligation, which may arise
out of or in connection with this Charge and, for such purposes, irrevocably submits to the
jurisdiction of such courts.
	 
	15.3.	 	The Chargor irrevocably waives any objection which it might now or hereafter have to the
courts referred to in Clause 15.2 being nominated as the forum to hear and determine any suit,
action or proceeding, and to settle any disputes, which may arise out of or in connection with
this Charge and agrees not to claim that any such court is not a convenient or appropriate
forum in each case whether on the grounds of venue or forum non convenient or any similar
grounds or otherwise.
	 
	15.4.	 	The submission to the jurisdiction of the courts referred to in Clause 15.2 shall not (and
shall not be construed so as to) limit the right of the Chargee to take proceedings against
the Chargor in any other court of competent jurisdiction nor shall the taking of proceedings
in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction,
whether concurrently or not.
	 
	15.5.	 	To the extent that the Chargor, or any of the property of the Chargor is or becomes entitled
at any time to any immunity on the grounds of sovereignty or otherwise from any legal action,
suit or proceeding, from set-off or counterclaim, from the jurisdiction of any competent
court, from service of process, from attachment prior to judgment, from attachment in aid of
execution, or from execution prior to judgment,

12

 

	 	 	or other legal process in any jurisdiction, the Chargor for itself, and its property does
hereby irrevocably and unconditionally waive, and agrees not to plead or claim, any such
immunity with respect to its or his, as the case may be, obligations, liabilities or any
other matter under or arising out of or in connection with this Charge or the subject matter
hereof or thereof.

	16.	 	SERVICE OF PROCESS AGENT
	 
	 	 	The Chargor hereby irrevocably appoints ILFC Ireland Limited of 30 North Wall Quay, Dublin
1 as its Agent with full authority to receive, accept and acknowledge, for itself and on its
behalf, service of all process issued out of or relating to any proceedings referred to in
clause 15 in the Courts of Ireland.
	 
	17.	 	CONFLICTS
	 
	 	 	In the event of a conflict between the provisions of this Charge on the one hand and the
Credit Agreement and the Security Agreement on the other hand, the provisions of the Credit
Agreement or Security Agreement shall control.

13

 

Schedule A

	 	 	 	 	 
	Company	 	
Number and Description of Shares	 	Registered Holder
	Ballysky Aircraft Ireland Limited

	 	10 Ordinary Shares
of US$1.00 each
	 	Temescal Aircraft Inc.

14

 

SCHEDULE B

Part I

To: Citibank, N.A.

       (the Chargee)

Date: March__ 2011

(Date of Charge)          

Dear Sirs

Ballysky Aircraft Ireland Limited (the Company)

I hereby unconditionally and irrevocably authorise you to date the resignation letter in respect of
the Company deposited by me with you pursuant to the share charge dated March__ 2011 (the Charge)
between Temescal Aircraft Inc. and yourselves, as and when you become entitled to date and complete
the same pursuant to the terms of the Charge.

Yours faithfully,

[name]

[Director] / [Secretary]

15

 

SCHEDULE B

PART II

Date________________

The Board of Directors

Ballysky Aircraft Ireland Limited (the Company)

Dear Sirs,

Resignation of Directors/Secretary

[I]/[We] hereby tender [my]/[our] resignation as [Director]/[Secretary] of the Company with effect
from the date hereof .

[I]/[We] hereby confirm that we have no rights to compensation or claims against the Company for
loss of office or arrears of pay [(or, in the case of secretary, fees)].

This letter shall be governed by and construed in accordance with Irish law.

Yours faithfully,

	 	 	 	 	 
	Signed and Delivered
	 	 	 	 
	by [insert name of director/secretary]

	 	 

	 	 
	in the presence of:
	 	 	 	 

	 	 	 	 	 

	Witness Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

16

 

SCHEDULE C

“Irrevocable Proxy”

We, Temescal Aircraft Inc., hereby irrevocably appoint Citibank, N.A., (the Chargee) as our proxy
to vote at meetings of the shareholders of Ballysky Aircraft Ireland Limited (the Company) in
respect of any existing or further shares in the Company which may have been or may from time to
time be issued to us and/or registered in our name. This proxy is irrevocable by reason of being
coupled with the interest of Citibank, N.A., as Chargee of the aforesaid shares.

 

Temescal Aircraft Inc.

Dated:

17

 

SCHEDULE D

“Irrevocable Appointment”

We, Temescal Aircraft Inc., hereby irrevocably appoint Citibank, N.A., (as Chargee) as our duly
authorised representative to sign resolutions in writing of Ballysky Aircraft Ireland Limited (the
Company) in respect of any existing or further shares in the Company which may have been or may
from time to time be issued to us and/or registered in our name.

 

Temescal Aircraft Inc.

Dated:

18

 

IN WITNESS whereof the parties hereto have caused this Charge to be duly executed on the date first
written.

	 	 	 	 	 

	SIGNED by
	 	 	 	 
	TEMESCAL AIRCRAFT INC.

	 	 	 	 

	in the presence of:
	 	 	 	 

	 	 	 	 	 

	Witness Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 

	SIGNED by

CITIBANK, N.A.,

in the presence of:

	 	 

	 	 	 	 	 

	Witness Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

19

 

EXHIBIT C

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF ACCOUNT CONTROL AGREEMENT

March 30, 2011

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

Whereas, Temescal Aircraft Inc. (“Pledgor”) has granted to Citibank, N.A., as Collateral Agent
(“Pledgee”), for the benefit of the Secured Parties, a security interest in Account number 798628
(the “Collateral Account”), held by Citibank, N.A. (the “Securities Intermediary”) together with
all financial funds, investments, instruments, assets, investment property, securities, cash and
other property now or hereafter held therein, and the proceeds thereof, including without
limitation dividends payable in cash or stock and shares or other proceeds of conversions or splits
of any securities in the Collateral Account (collectively, the “Collateral”). Pledgor, Pledgee and
the Securities Intermediary agree that the Collateral Account is a “securities account” within the
meaning of Article 8 of the Uniform Commercial Code of the State of New York (the “UCC”) and that
all Collateral held in the Collateral Account will be treated as a “financial asset” within the
meaning of Section 8-102(a)(9) of the UCC.

Whereas, the grant of security interest described above is pursuant to that certain Aircraft
Mortgage and Security Agreement dated as of the date hereof among Park Topanga Aircraft Inc., the
Pledgor, Charmlee Aircraft Inc., Ballysky Aircraft Ireland Limited, the additional grantors
referred to therein, and the Pledgee (the “Security Agreement”).

Whereas, the Pledgor and Pledgee, inter alia, are party to the Term Loan Credit Agreement dated as
of the date hereof (the “Credit Agreement”).

Terms used but not defined herein shall have the meaning set forth in the Security Agreement and,
if not defined therein, such terms shall have the meaning set forth in the Credit Agreement.

In connection therewith, the parties hereto agree (which agreement by the Pledgor will be construed
as instructions to the Securities Intermediary):

	1.	 	The Securities Intermediary is instructed to register the pledge on its books. Securities
Intermediary shall hold all certificated securities that comprise all or part of the
Collateral with proper endorsements to the Securities Intermediary or in blank, or will
deliver possession of such certificated securities to the Pledgee. The Securities
Intermediary acknowledges the security interest granted by the Pledgor in favor of the Pledgee
in the Collateral.
	 
	2.	 	The Securities Intermediary represents, warrants and agrees that the Collateral Account (i)
has been established and is and will be maintained with the Securities Intermediary on its
books and records and (ii) is and will be a “securities account” (as defined in Section
8-501(a) of the UCC) in respect of which the (A) Securities Intermediary is a “securities
intermediary” (as defined in Section 8-102(a)(14) of the UCC), (B) the Pledgor is the
“entitlement holder” (as defined in

Aircraft Mortgage and Security Agreement

C-1

 

 

	 	 	Section 8-102(a)(7) of the UCC) of the Collateral Account subject to the “control” (as
defined in Section 8-106 of the UCC) of the Pledgee, (C) the “securities intermediary’s
jurisdiction” (as defined in Section 8-110(e) of the UCC) of the Securities Intermediary in
respect of the Collateral Account is New York and (D) all financial assets carried in the
Collateral Account will have been duly credited thereto in compliance with Section 8-501 of
the UCC.
	 
	3.	 	The Securities Intermediary is instructed to deliver to the Pledgee copies of monthly
statements on the Collateral Account.
	 
	4.	 	The Collateral Account will be styled: “#798628 Citi f/b/o Citibank, N.A. as Collateral
Agent and Securities Intermediary f/b/o Temescal Aircraft, Inc. under the Aircraft Mortgage
and Security Account Control Agreement.”
	 
	5.	 	All dividends, interest, gains and other profits with respect to the Collateral Account will
be reported in the name and tax identification number of the Pledgor.
	 
	6.	 	(a) The Securities Intermediary may not, without the prior written consent of Pledgee,
deliver, release or otherwise dispose of the Collateral or any interest therein unless the
proceeds thereof are held or reinvested in the Collateral Account as part of the Collateral or
applied by Securities Intermediary to the satisfaction of an Unsubordinated Obligation (as
defined below) owed to it. Except for such limitation and unless and until the Securities
Intermediary receives and has a reasonable period of time to act upon written notice from the
Pledgee which states that Pledgee is exercising exclusive control over the Collateral Account
(a “Notice of Exclusive Control”), the Securities Intermediary may comply with any investment
orders or instructions from Pledgor concerning the Collateral Account, or as set forth in
Section 6(b) below. A Notice of Exclusive Control (Exhibit A) may be delivered by the Pledgee
at any time upon the occurrence and continuance of an Event of Default and the acceleration of
the Loans and such acceleration has not been rescinded, and shall designate the account,
person or other location to which the financial assets in the Collateral Account, and cash
dividends, interest, income, earnings and other distributions received with respect thereto,
shall thereafter be delivered. As between Pledgor and Pledgee, Pledgee agrees not to deliver
a Notice of Exclusive Control until the occurrence of an Event of Default (as defined in the
Security Agreement) that is continuing and the acceleration of the Loans and such acceleration
has not been rescinded. For the avoidance of doubt, Securities Intermediary shall have no
responsibility for monitoring or determining whether an Event of Default has occurred or is
continuing.
	 
		 	(b) In accordance with the Loan Agreement, upon, as part of, or in the absence after the
relevant period of an Interim Cure, the Pledgee shall issue an “entitlement order” to the
Securities Intermediary to distribute from the Collateral Account to the Pledgor an amount
equal to the Interim Cash deposited in connection with the related LTV Cure.
	 
		 	(c) Upon deposit of any insurance proceeds in the Collateral Account, the Pledgee shall
instruct the Securities Intermediary to distribute from the Collateral Account the amount of
such insurance proceeds in accordance with the instructions of the Collateral Agent (who
shall direct that such amounts be distributed as set forth in Schedule V of the Security
Agreement).
	 
	7.	 	The Pledgor authorizes the Securities Intermediary, and the Securities Intermediary agrees,
to comply with any order or instruction from Pledgee concerning the Collateral Account,
including an order or instruction directing sale, transfer (to the extent that the Collateral
is transferable), release or redemption of all or part of the Collateral and the remittance of
the proceeds thereof, if

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	 	 	any, to Pledgee or as otherwise instructed by the Pledgee, without further consent by the
Pledgor. Securities Intermediary shall have no responsibility or liability to Pledgor for
complying with any order or instruction, whether oral or written, concerning the Collateral
Account, the Collateral, any interest therein, or the proceeds thereof originated by Pledgee
and shall have no responsibility to investigate the appropriateness of any such order or
instruction, even if Pledgor notifies Securities Intermediary that Pledgee is not legally
entitled to originate any such order or instruction. Securities Intermediary shall have no
responsibility or liability to Pledgee for complying with any order or instruction, whether
oral or written, concerning the Collateral Account, the Collateral, any interest therein, or
the proceeds thereof originated by Pledgor except to the extent such compliance would cause
Securities Intermediary to violate (i) paragraph 6 hereof or (ii) written orders or
instructions previously received from Pledgee, including without limitation, a Notice of
Exclusive Control, but only to the extent Securities Intermediary has had reasonable
opportunity to act thereon. Securities Intermediary shall be able to rely upon any notice,
order or instruction that it reasonably believes to be genuine. Securities Intermediary
shall have no responsibility or liability to Pledgee with respect to the value of the
Collateral Account or any of the Collateral. This Agreement does not create any obligation
or duty on the part of Securities Intermediary other than those expressly set forth herein.
	 
	8.	 	The Pledgor agrees to indemnify and hold the Securities Intermediary, its directors,
officers, employees, and agents harmless from and against any and all claims, causes of
action, liabilities, losses, lawsuits, demands, damages, costs and expenses, including without
limitation court costs and reasonable attorneys’ fees and expenses, that may arise out of or
in connection with this Agreement or any action taken or not taken pursuant hereto, except to
the extent caused by Securities Intermediary’s gross negligence or willful misconduct. The
obligations of the Pledgor set forth in this paragraph 8 shall survive the termination of this
Agreement.
	 
	9.	 	The Securities Intermediary is instructed that the Collateral Account is to remain a “cash
account” within the meaning of Regulation T issued by the Board of Governors of the Federal
Reserve System. The Securities Intermediary represents that it has not received notice
regarding any lien, encumbrance or other claim to the Collateral or the Collateral Account
from any other person and has not entered into an agreement with any third party to act on
such third party’s instructions without further consent of the Pledgor. The Securities
Intermediary further agrees not to enter into any such agreement with any third party.
	 
	10.	 	The Securities Intermediary subordinates to the lien and security interest of the Pledgee any
right of setoff, encumbrance, security interest, lien or other claim that it may have against
the Collateral, except for any lien, claim, encumbrance or right of set off against the
Collateral Account for (i) customary commissions and fees arising from permitted trading
activity within the Collateral Account, and (ii) payment owed to Securities Intermediary for
open trade commitments for the purchase and/or sale of financial assets in and for the
Collateral Account (the “Unsubordinated Obligations”).
	 
	11.	 	To the extent a conflict exists between the terms of this Agreement and any account agreement
between the Pledgor and the Securities Intermediary, the terms of this Agreement will control,
provided that this Agreement shall not alter or affect any mandatory arbitration
provision currently in effect between Securities Intermediary and Pledgor.
	 
	12.	 	The terms of this Agreement may not be modified except by a writing signed by all parties
hereto.

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	13.	 	Securities Intermediary reserves the right, unilaterally, to terminate this Agreement, such
termination to be effective thirty (30) days after written notice thereof is given to Pledgor
and Pledgee. At the end of such thirty (30) day period, Securities Intermediary will deliver
all assets held in the Collateral Account to Pledgee unless Pledgee and Pledgor deliver joint
instructions to Securities Intermediary during such thirty (30) day period to deliver or
transfer the assets held in the Collateral Account to another party or securities
intermediary. In the event that it is not possible or practicable, in the judgment of the
Securities Intermediary, to transfer the Collateral or deliver the Collateral to any other
party, the Securities Intermediary will sell such assets and deliver the proceeds according to
the instructions provided by the Pledgee or the joint instructions given by the Pledgee and
Pledgor. Nothing set forth in this provision shall be deemed to limit the right of Pledgee to
issue orders or instructions to the Securities Intermediary pursuant to paragraph 6 hereof.
Pledgee may terminate this Agreement by giving notice to Securities Intermediary and Pledgor.
Termination shall not affect any of the rights or liabilities of the parties hereto incurred
before the date of termination.
	 
	14.	 	This Agreement and the Loan Documents set forth the entire agreement of the parties with
respect to the subject matter hereof, and, subject to paragraph 10 above, supersedes any prior
agreement and contemporaneous oral agreements of the parties concerning its subject matter.
	 
	15.	 	Except as otherwise expressly provided herein, any notice, order, instruction, request or
other communication required or permitted to be given under this Agreement shall be in writing
and may be delivered in person, sent by facsimile or other electronic means if electronic
confirmation of error free receipt is received, or sent by United States mail, postage
prepaid, addressed to the party at the address set forth below.
	 
	16.	 	The Securities Intermediary will be excused from failing to act or delay in acting, and no
such failure or delay shall constitute a breach of this Agreement or otherwise give rise to
any liability of the Securities Intermediary, if (i) such failure or delay is caused by
circumstances beyond the reasonable control of the Securities Intermediary, including without
limitation legal constraint, emergency conditions, action or inaction of governmental, civil
or military authority, terrorism, fire, strike, lockout or other labor dispute, war, riot,
theft, flood, earthquake or other natural disaster, breakdown of public or private or common
carrier communication or transmission facilities, equipment failure, or act, negligence or
default of Pledgor or (ii) such failure or delay resulted from Securities Intermediary’s
reasonable belief that the action would have violated any guideline, rule or regulation of any
governmental authority.
	 
	17.	 	Pledgor agrees to pay Securities Intermediary, upon receipt of Securities Intermediary’s
invoice, all reasonable costs, expenses and attorneys’ fees incurred in the preparation and
administration of this Agreement (including any amendments hereto or instruments or agreements
required hereunder). Pledgor agrees to pay Securities Intermediary, upon receipt of
Securities Intermediary’s invoice, all reasonable costs, expenses and attorneys’ fees incurred
by Securities Intermediary in connection with the enforcement of this Agreement or any
instrument or agreement required hereunder, including without limitation any reasonable costs,
expenses, and fees arising out of the resolution of any conflict, dispute, motion regarding
entitlement to rights or rights of action, or other action to enforce Securities
Intermediary’s rights hereunder in a case arising under Title 11, United States Code. This
paragraph 17 shall survive termination of this Agreement.
	 
	18.	 	Notwithstanding any of the other provisions of this Agreement, in the event of the
commencement of a case pursuant to Title 11, United States Code, filed by or against Pledgor,
or in the event of the commencement of any similar case under then applicable federal or state
law

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	 	 	providing for the relief of debtors or the protection of creditors by or against Pledgor,
Securities Intermediary may act as Securities Intermediary deems necessary to comply with
all applicable provisions of governing statutes and Pledgor shall not assert any claim
against Securities Intermediary for so doing.
	 
	19.	 	If any term or provision of this Agreement shall be invalid or unenforceable, the remainder
of this Agreement, or the application of such term or provision to persons or circumstances
other than those to which it is held invalid or unenforceable, shall be construed in all
respects as if such invalid or unenforceable term or provision were omitted.
	 
	20.	 	This Agreement may be executed in counterparts, each of which shall be an original, and all
of which shall constitute one and the same agreement.
	 
	21.	 	This Agreement is being delivered in New York and shall be governed and construed in
accordance with the law of the State of New York.

*    *    *    *    *    *

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IN WITNESS WHEREOF, the Pledgor and the Pledgee have agreed to the terms of this Agreement as
of the date indicated above.

	 	 	 
	PLEDGOR:

	 	PLEDGEE:
	TEMESCAL AIRCRAFT INC.

	 	CITIBANK, N.A., as Collateral Agent
	 
	 	 
	By: 

	 	By: 

	Name: 

	 	Name: 

	Title: 

	 	Title: 

	Telephone No.: 

	 	Telephone No.: 

	Address:

	 	Address:

	 
	 	 
	10250 Constellation Blvd., Suite 3400

	 	388 Greenwich Street, 14th Floor
	Los Angeles, CA 90067

	 	New York, NY 10013
	Attention: Treasurer with a copy to the General Counsel

	 	Attention: Jenny Cheng Facsimile No. (212) 657-2762
	Facsimile No. (310) 788-1990
	 	 
	 
	 	 
	Date: March 30, 2011

	 	Date: March 30, 2011

Acknowledged and Agreed to:

SECURITIES INTERMEDIARY

CITIBANK, N.A.

	 	 	 	 	 
	 	 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Date:  	 	 
	 

Address:

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

Date: March 30, 2011

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Exhibit A

[Letterhead of the Pledgee]

[Date]

     A. BY FACSIMILE TRANSMISSION AND CERTIFIED MAIL

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

			
	           Re:	 	Temescal Aircraft Inc.
 Account No. 798628

     B. NOTICE OF EXCLUSIVE CONTROL

Ladies and Gentlemen:

As referenced in the Collateral Account Control Agreement, dated as of March 30, 2011, among
Temescal Aircraft Inc., as Pledgor, Citibank, N.A., as Collateral Agent for the Secured Parties, as
Pledgee, and Citibank, N.A., as Securities Intermediary, we hereby give you notice of our exclusive
control over securities account number 798628 (the “Collateral Account”) and all financial
assets credited thereto. You are hereby instructed not to accept any direction, instruction or
entitlement order with respect to the Collateral Account or the financial assets credited thereto
from any person other than the undersigned.

You are hereby instructed to [deliver][invest] the financial assets in the Collateral Account and
cash dividends, interest, income, earning, and other distributions received with respect thereto,
as follows:

	 	 	 	 	 

	 

	 	[____________________________
	 	 
	 

	 	____________________________	 	 
	 

	 	____________________________	 	 
	 

	 	____________________________]	 	 

	 	 	 	 	 
	 	Very truly yours,

CITIBANK, N.A., as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc:       Temescal Aircraft Inc.

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EXHIBIT D

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF FAA AIRCRAFT MORTGAGE

FAA AIRCRAFT MORTGAGE (MSN [_____])

     THIS FAA AIRCRAFT MORTGAGE (MSN [_____]) (this “Agreement”) dated as of [__________],
is made by and between [_____], as grantor (the “Grantor”), and CITIBANK, N.A., a national
banking association, as the Collateral Agent (the “Collateral Agent”) under the Aircraft
Mortgage and Security Agreement (the “Aircraft Mortgage”), dated as of March 30, 2011,
among PARK TOPANGA AIRCRAFT INC., a California corporation (“Parent Holdco”), TEMESCAL
AIRCRAFT INC., a California corporation (the “Borrower”), BALLYSKY AIRCRAFT IRELAND
LIMITED, a private limited liability company incorporated under the laws of Ireland (the “Irish
Subsidiary Holdco”), CHARMLEE AIRCRAFT INC., a California corporation (the “CA Subsidiary
Holdco”), and the additional grantors referred to therein, as the grantors, and CITIBANK, N.A.,
as the Collateral Agent. Capitalized terms used and not defined herein are used as defined in
Appendix A hereto.

W  I  T  N  E  S  S  E  T  H:

          WHEREAS, Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco,
Citibank, N.A., as the administrative agent, the lenders identified therein and the Collateral
Agent have entered into the Credit Agreement, dated as of March 30, 2011 (the “Credit
Agreement”), pursuant to which the Lenders have made the Loans to the Borrower;

          WHEREAS, the Grantor and the Collateral Agent have entered into the Aircraft Mortgage in order
to secure the payment and performance of all obligations of the Borrower Parties under the Credit
Agreement; and

          WHEREAS, the Grantor has agreed to secure the Secured Obligations by granting to the
Collateral Agent for the benefit of the Secured Parties a Lien on its interest in the airframes
(the “Airframes”) and engines (the “Engines”) described in Schedule I hereto
(collectively, the “Pool Aircraft”) and on certain other property and rights relating
thereto; and

          NOW, THEREFORE, in order to (a) induce the Secured Parties to enter into the Loan Documents
and (b) secure the prompt payment and performance of all the Secured Obligations, the Grantor and
the Collateral Agent hereby agree as follows:

     1. SECURITY INTEREST.

          The Grantor does hereby transfer, convey, pledge, mortgage, hypothecate, assign and grant a
first priority security interest to the Collateral Agent, subject to no prior interests of any
Person whatsoever except for a lessee under a Lease, in the following collateral (collectively, the
“Mortgage Collateral”) attaching on the date of this Agreement all of such Grantor’s
rights, title and interest in and to:

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	 	a.	 	each Pool Aircraft, including the Airframe and Engines with respect to such Pool
Aircraft as the same is now and will hereafter be constituted, and in the case of such
Engines, whether or not any such Engine shall be installed in or attached to the
Airframe or any other airframe;
	 
	 	b.	 	all Parts of whatever nature, which are from time to time relating to any
Airframe or Engine, including all substitutions, renewals and replacements of and
additions, improvements, accessions and accumulations to any Airframe or Engine (other
than additions, improvements accessions and accumulations which constitute appliances,
parts, instruments, appurtenances, accessories, furnishings or other equipment excluded
from the definition of Parts);
	 
	 	c.	 	all of the Grantor’s right, title and interest in the technical data, manuals and
log books, and all inspection, modification and overhaul records and other service,
repair, maintenance, technical records in respect of a Pool Aircraft that are Owned by a
Grantor and required pursuant to applicable law to be maintained with respect to such
Pool Aircraft, and such term shall include all additions, renewals, revisions and
replacements of any such materials from time to time made, or required to be made,
pursuant to applicable law, and in each case in whatever form and whatever means or
medium (including, without limitation, microfiche, microfilm, paper or computer disk)
such materials may be maintained or retained by the relevant lessee of the Pool Aircraft
(collectively, the “Aircraft Documents”);
	 
	 	d.	 	any money or non-money proceeds of an Airframe or Engine arising from the total
or partial loss or destruction of such Airframe or its Engine or its total or partial
confiscation, condemnation or requisition up to the amount of hull insurance in respect
of such Pool Aircraft required to be carried hereunder; and
	 
	 	e.	 	all proceeds, howsoever arising, of the foregoing.

          TO HAVE AND TO HOLD the Mortgage Collateral unto the Collateral Agent, and its successors and
assigns, as security for the Secured Obligations.

2. INCORPORATION BY REFERENCE. THE SECURITY INTEREST IN THE MORTGAGE COLLATERAL CREATED
UNDER THIS AGREEMENT IS GRANTED IN ACCORDANCE WITH THE AIRCRAFT MORTGAGE AND ALL OF THE
TERMS AND CONDITIONS THEREOF, INCLUDING BUT NOT LIMITED TO PROVISIONS RELATING TO THE
EXERCISE OF REMEDIES, SHALL BE INCORPORATED HEREIN BY REFERENCE.

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3. MISCELLANEOUS

     3.1 Successors and Assigns. All the terms, provisions, conditions and covenants herein
contained shall be binding upon and shall inure to the benefit of the Grantor, the Collateral Agent
and their respective permitted successors, assigns and transferees.

     3.2 Severability. Any provision of this Agreement prohibited by the laws of any jurisdiction
or otherwise held to be invalid by any court of law of any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition, or modified to conform with such
laws, without invalidating the remaining provisions hereof; and any such prohibition in any
jurisdiction shall not invalidate such provisions in any other jurisdiction.

     3.3 Governing Law. THIS AGREEMENT IS DELIVERED IN AND SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     3.4 Further Assurances. At any time and from time to time, upon the request of the Collateral
Agent, the Grantor shall promptly and duly execute and deliver any and all such further instruments
and documents that may be necessary, or that the Collateral Agent may reasonably request, in order
for the Collateral Agent to obtain the full benefits of security interests and assignments created
or intended to be created hereby and of the rights and powers granted herein and in the Aircraft
Mortgage.

     3.5 Notices. All notices, requests, demands or other communications required hereunder or
given pursuant hereto shall be in writing unless otherwise expressly provided to the following
specified address or to such other address as either party may from time to time hereafter
designate to the other party in writing:

          If to the Grantor:

[_____]

[ADDRESS]

Attention: [_____]

Fax: [_____]

          If to the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Fax: 212-657-2762

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     3.6 Collateral Agent.

     The Collateral Agent shall be afforded all of the rights, protections, immunities and
indemnities set forth in the Aircraft Mortgage as if such rights, protections, immunities
and indemnities were specifically set forth herein.

     3.7 Cape Town Convention.

     The parties hereto agree that for the purposes of the Cape Town Convention, each Airframe and
Engine is an “aircraft object” (as defined in the Protocol) and this Agreement constitutes an
International Interest in each such Airframe and each such Engine.

     3.8 Execution in Counterparts.

     This Agreement may be executed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures were upon the same instrument.

[Remainder of page intentionally left blank]

Aircraft Mortgage and Security Agreement

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     IN WITNESS WHEREOF, the parties hereto have, by their indicated officers thereunto duly
authorized, caused this FAA Aircraft Mortgage to be executed as of the day and year first above
written and to be delivered in the State of New York.

	 	 	 	 	 
	GRANTOR: 	[_____]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	COLLATERAL AGENT: 	CITIBANK, N.A., not in its individual capacity but

solely as Collateral Agent

 	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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     APPENDIX A

FAA AIRCRAFT MORTGAGE

DEFINITIONS

     For all purposes of this Agreement, all capitalized terms used, but not defined, in this
Agreement shall have the respective meanings assigned to such terms in the Aircraft Mortgage, and
the following terms have the meanings indicated below:

          “Agreement” has the meaning specified in the recital of parties to this Agreement.

          “Aircraft Documents” has the meaning assigned to such term in Section 1(c) of this Agreement.

          “Aircraft Mortgage” has the meaning specified in the preliminary statements to this Agreement.

          “Airframes” has the meaning specified in the third recital of this Agreement.

          “Borrower Parties” has the meaning specified in the Credit Agreement.

          “Cape Town Convention” has the meaning specified in the Credit Agreement.

          “Credit Agreement” has the meaning specified in the first recital of this Agreement.

          “Engines” has the meaning specified in the third recital of this Agreement.

          “Grantor” has the meaning specified in the recital of parties to this Agreement.

          “International Interest” has the meaning specified in the Cape Town Convention.

          “Lease” means a lease agreement relating to any Pool Aircraft, which is listed on Schedule I
hereto, as such schedule is supplemented (or, if not so supplemented, required to be supplemented)
pursuant to the terms of the Credit Agreement from time to time, between a Borrower Party (as
lessor), and a lessee, in each case together with all schedules, supplements and amendments thereto
and each other document, agreement and instrument related thereto.

          “Lien” has the meaning specified in the Credit Agreement.

          “Loan Documents” has the meaning specified in the Credit Agreement.

          “Mortgage Collateral” means the Pool Aircraft and other property described in Section 1 hereof
and subject to the security interest created by this Agreement.

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          “Owned” has the meaning specified in the Credit Agreement.

          “Part” means all appliances, parts, components, instruments, appurtenances, accessories,
furnishings, seats and other equipment of whatever nature (other than (a) Engines or engines, and
(b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other
equipment that would qualify as a removable part and is leased by a lessee from a third party or is
subject to a security interest granted to a third party), that may from time to time be installed
or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom
and, if the applicable Pool Aircraft or Engine is subject to a Lease, is owned by a Grantor under
the terms of such Lease.

          “Person” has the meaning specified in the Credit Agreement.

          “Pool Aircraft” has the meaning specified in the third recital of this Agreement.

          “Protocol” has the meaning specified in the Credit Agreement.

          “Secured Obligations” has the meaning given to the term “Secured Obligations” in the Aircraft
Mortgage.

          “Secured Parties” has the meaning given to the term “Secured Parties” in the Aircraft
Mortgage.

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SCHEDULE I

FAA AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

MORTGAGE COLLATERAL

“Aircraft [__]” means:

     one (1) [__________] Model [__________]1 aircraft bearing manufacturer’s serial no.
[_____] and FAA registration number [_____];

     together with two (2) [__________]2 Model [__________]3 aircraft engines
(each of which engines has 550 or more rated takeoff horsepower and is a jet propulsion aircraft
engine having at least 1750 pound of thrust or the equivalent thereof) bearing manufacturer’s
serial nos. [_____] and [_____] respectively.

 

	 		
	1     	 	  Described on the International Registry drop down menu as [__]. 
	 2   	 	 Described on the International Registry drop down menu as [__].  
	 3   	 	  Described on the International Registry drop down menu as [__].

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     EXHIBIT E

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT

FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT (MSN [_____])

          THIS FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT (MSN [_____]) (this
“Agreement”) dated as of [__________], is made by and between [_____], as grantor (the
“Grantor”), and CITIBANK, N.A., a national banking association, as the Collateral Agent
(the “Collateral Agent”) under the Aircraft Mortgage and Security Agreement (the
“Aircraft Mortgage”), dated as of March 30, 2011, among PARK TOPANGA AIRCRAFT INC., a
California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC., a California corporation
(the “Borrower”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability company
incorporated under the laws of Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT
INC., a California Corporation (the “CA Subsidiary Holdco”) and the additional grantors
referred to therein, as the grantors, and CITIBANK, N.A., as the Collateral Agent. Capitalized
terms used and not defined herein are used as defined in Appendix A hereto.

W I T N E S S E T H:

          WHEREAS, Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco,
Citibank, N.A., as the administrative agent, the lenders identified therein and the Collateral
Agent have entered into the Credit Agreement, dated as of March 30, 2011 (the “Credit
Agreement”), pursuant to which the Lenders have made the Loans to the Borrower;

          WHEREAS, the Grantor and the Collateral Agent have entered into the Aircraft Mortgage in order
to secure the payment and performance of all obligations of the Borrower Parties under the Credit
Agreement; and

          WHEREAS, the Grantor has agreed to secure the Secured Obligations by granting to the
Collateral Agent for the benefit of the Secured Parties a Lien on its interest in the airframes
(the “Airframes”) and engines (the “Engines”) described in Schedule I hereto
(collectively, the “Pool Aircraft”) and by granting to the Collateral Agent a Lien on and
security interest in its rights under the lease agreements described in Schedule I hereto together
with all schedules, supplements and amendments thereto (the “Assigned Leases”) and on
certain other property and rights relating thereto; and

          NOW, THEREFORE, in order to (a) induce the Secured Parties to enter into the Loan Documents
and (b) secure the prompt payment and performance of all the Secured Obligations, the Grantor and
the Collateral Agent hereby agree as follows:

          1. SECURITY INTEREST. The Grantor does hereby transfer, convey, pledge, mortgage,
hypothecate, assign and grant a first priority security interest to the Collateral Agent, subject
to no prior interests of any Person whatsoever except for the lessee under each Assigned

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Lease, in the following collateral (collectively, the “Mortgage Collateral”) attaching on the date of this Agreement all of
such Grantor’s rights, title and interest in and to:

	 	a.	 	each Pool Aircraft, including the Airframe and Engines with respect to such Pool
Aircraft as the same is now and will hereafter be constituted, and in the case of such
Engines, whether or not any such Engine shall be installed in or attached to the Airframe
or any other airframe
	 
	 	b.	 	all Parts of whatever nature, which are from time to time relating to any Airframe or
Engine, including all substitutions, renewals and replacements of and additions,
improvements, accessions and accumulations to any Airframe or Engine (other than additions,
improvements accessions and accumulations which constitute appliances, parts, instruments,
appurtenances, accessories, furnishings or other equipment excluded from the definition of
Parts);
	 
	 	c.	 	all of the Grantor’s right, title and interest in the technical data, manuals and log
books, and all inspection, modification and overhaul records and other service, repair,
maintenance, technical records in respect of a Pool Aircraft that are Owned by a Grantor
and required pursuant to applicable law to be maintained with respect to such Pool
Aircraft, and such term shall include all additions, renewals, revisions and replacements
of any such materials from time to time made, or required to be made, pursuant to
applicable law, and in each case in whatever form and whatever means or medium (including,
without limitation, microfiche, microfilm, paper or computer disk) such materials may be
maintained or retained by the relevant lessee of the Pool Aircraft (collectively, the
“Aircraft Documents”);
	 
	 	d.	 	any money or non-money proceeds of an Airframe or Engine arising from the total or
partial loss or destruction of such Airframe or its Engine or its total or partial
confiscation, condemnation or requisition up to the amount of hull insurance in respect of
such Pool Aircraft required to be carried hereunder;
	 
	 	e.	 	each Assigned Lease, including without limitation: (i) all rights of such Grantor to
receive moneys due and to become due under or pursuant to such Assigned Leases, (ii) all
rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or
guaranty with respect to such Assigned Leases up to the amount of hull insurance in respect
of such Pool Aircraft required to be carried under the Aircraft Mortgage, (iii) claims of
such Grantor for damages arising out of or for breach or default under such Assigned
Leases, (iv) all rights under any such Assigned Lease with respect to any subleases of the
Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor to terminate
such Assigned Leases and to compel performance of, and otherwise to exercise all remedies
under, any Assigned Lease, whether arising under such Assigned Leases or by statute or at
law or in equity; and
	 
	 	f.	 	all proceeds, howsoever arising, of the foregoing.

          TO HAVE AND TO HOLD the Mortgage Collateral unto the Collateral Agent, and its successors and
assigns, as security for the Secured Obligations.

Aircraft Mortgage and Security Agreement

E-2

 

2. INCORPORATION BY REFERENCE. THE SECURITY INTEREST IN THE MORTGAGE COLLATERAL CREATED
UNDER THIS AGREEMENT IS GRANTED IN ACCORDANCE WITH THE AIRCRAFT MORTGAGE AND ALL OF THE
TERMS AND CONDITIONS THEREOF, INCLUDING BUT NOT LIMITED TO PROVISIONS RELATING TO THE
EXERCISE OF REMEDIES, SHALL BE INCORPORATED HEREIN BY REFERENCE.

     3. MISCELLANEOUS

          3.1 Successors and Assigns. All the terms, provisions, conditions and covenants
herein contained shall be binding upon and shall inure to the benefit of the Grantor, the
Collateral Agent and their respective permitted successors, assigns and transferees.

          3.2 Severability. Any provision of this Agreement prohibited by the laws of any
jurisdiction or otherwise held to be invalid by any court of law of any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition, or modified to conform with
such laws, without invalidating the remaining provisions hereof; and any such prohibition in any
jurisdiction shall not invalidate such provisions in any other jurisdiction.

          3.3 Governing Law. THIS AGREEMENT IS DELIVERED IN AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          3.4 Further Assurances. At any time and from time to time, upon the request of the
Collateral Agent, the Grantor shall promptly and duly execute and deliver any and all such further
instruments and documents that may be necessary, or that the Collateral Agent may reasonably
request, in order for the Collateral Agent to obtain the full benefits of security interests and
assignments created or intended to be created hereby and of the rights and powers granted herein
and in the Aircraft Mortgage.

          3.5 Notices. All notices, requests, demands or other communications required
hereunder or given pursuant hereto shall be in writing unless otherwise expressly provided to the
following specified address or to such other address as either party may from time to time
hereafter designate to the other party in writing:

If to the Grantor:

[_____]

[ADDRESS]

Attention: [_____]

Fax: [_____]

Aircraft Mortgage and Security Agreement

E-3

 

If to the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Fax: 212-657-2762

          3.6 Collateral Agent.

               The Collateral Agent shall be afforded all of the rights, protections, immunities and
indemnities set forth in the Aircraft Mortgage as if such rights, protections, immunities and
indemnities were specifically set forth herein.

          3.7 Cape Town Convention.

          The parties hereto agree that for the purposes of the Cape Town Convention, each Airframe and
Engine is an “aircraft object” (as defined in the Protocol) and this Agreement constitutes (i) an
International Interest in each such Airframe and each such Engine and (ii) with respect to a Lease
that constitutes an International Interest, an assignment of such International Interest and
associated rights associated with each such Airframe and each such Engine as regards each Assigned
Lease.

          3.8 Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures were
upon the same instrument.

[Remainder of page intentionally left blank]

Aircraft Mortgage and Security Agreement

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     IN WITNESS WHEREOF, the parties hereto have, by their indicated officers thereunto duly
authorized, caused this FAA Aircraft Mortgage and Lease Security Assignment to be executed as of
the day and year first above written and to be delivered in the State of New York.

	 	 	 	 	 
	GRANTOR:  	[_____]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	COLLATERAL AGENT: 	CITIBANK, N.A., not in its individual capacity but

solely as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

E-5

 

     APPENDIX A

FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT

DEFINITIONS

     For all purposes of this Agreement, all capitalized terms used, but not defined, in this
Agreement shall have the respective meanings assigned to such terms in the Aircraft Mortgage, and
the following terms have the meanings indicated below:

          “Agreement” has the meaning specified in the recital of parties to this Agreement.

          “Aircraft” has the meaning specified in the third recital of this Agreement.

          “Aircraft Documents” has the meaning assigned to such term in Section 1(c) of this Agreement.

          “Aircraft Mortgage” has the meaning specified in the preliminary statements to this Agreement.

          “Airframes” has the meaning specified in the third recital of this Agreement.

          “Assigned Lease” has the meaning specified in the third recital of this Agreement.

          “Borrower Parties” has the meaning specified in the Credit Agreement.

          “Cape Town Convention” has the meaning specified in the Credit Agreement.

          “Credit Agreement” has the meaning specified in the first recital of this Agreement.

          “Engines” has the meaning specified in the third recital of this Agreement.

          “Grantor” has the meaning specified in the recital of parties to this Agreement.

          “International Interest” has the meaning specified in the Cape Town Convention.

          “Lien” has the meaning specified in the Credit Agreement.

          “Loan Documents” has the meaning specified in the Credit Agreement.

          “Mortgage Collateral” means the Pool Aircraft, the Assigned Leases and other property
described in Section 1 hereof and subject to the security interest created by this Agreement.

          “Owned” has the meaning specified in the Credit Agreement.

Aircraft Mortgage and Security Agreement

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          “Part” means all appliances, parts, components, instruments, appurtenances, accessories,
furnishings, seats and other equipment of whatever nature (other than (a) Engines or engines, and
(b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other
equipment that would qualify as a removable part and is leased by a lessee from a third party or is
subject to a security interest granted to a third party), that may from time to time be installed
or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom
and, if the applicable Aircraft or Engine is subject to a Lease, is owned by a Grantor under the
terms of such Lease.

          “Person” has the meaning specified in the Credit Agreement..

          “Pool Aircraft” has the meaning specified in the third recital of this Agreement.

          “Protocol” has the meaning specified in the Credit Agreement.

          “Secured Obligations” has the meaning given to the term “Secured Obligations” in the Aircraft
Mortgage.

          “Secured Parties” has the meaning given to the term “Secured Parties” in the Aircraft
Mortgage.

Aircraft Mortgage and Security Agreement

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SCHEDULE I

FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT

MORTGAGE COLLATERAL

     “Airframe [__]” means one (1) [__________] Model [__________]1 aircraft bearing
manufacturer’s serial no. [_____] and FAA registration number [_____].

     “Engines [__]” means two (2) [__________]2 Model [__________]3 aircraft
engines (each of which engines has 550 or more rated takeoff horsepower and is a jet propulsion
aircraft engine having at least 1750 pound of thrust or the equivalent thereof) bearing
manufacturer’s serial nos. [_____] and [_____] respectively.

     [Lease Agreement] dated [__________], between [__________] and [__________] relating to
Airframe [__] and Engines [__] recorded by the Federal Aviation Administration on _______________
and assigned Conveyance No. ____________.

 

			
	1  	 	 Described on the International Registry drop down menu as [__].
	 
	2  	 	 Described on the International Registry drop down menu as [__].
	 
	3  	 	 Described on the International Registry drop down menu as [__].
	 

Aircraft Mortgage and Security Agreement

E-8

 

EXHIBIT F

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF FAA LEASE SECURITY ASSIGNMENT

FAA LEASE SECURITY ASSIGNMENT (MSN [_____])

          THIS FAA LEASE SECURITY ASSIGNMENT (MSN [_____]) (this “Assignment”) dated as of
[__________], is made by and between [_____], as grantor (the “Grantor”), and CITIBANK,
N.A., a national banking association, as the Collateral Agent (the “Collateral Agent”)
under the Aircraft Mortgage and Security Agreement (the “Aircraft Mortgage”), dated as of
March 30, 2011, among PARK TOPANGA AIRCRAFT INC., a California corporation (“Parent
Holdco”), TEMESCAL AIRCRAFT INC., a California corporation (the “Borrower”), BALLYSKY
AIRCRAFT IRELAND LIMITED, a private limited liability company incorporated under the laws of
Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT INC., a California corporation
(the “CA Subsidiary Holdco”) and the additional grantors referred to therein, as the
grantors, and CITIBANK, N.A., as the Collateral Agent. Capitalized terms used and not defined
herein are used as defined in Appendix A hereto.

W I T N E S S E T H:

     WHEREAS, Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco,
Citibank, N.A., as the administrative agent, the lenders identified therein and the Collateral
Agent have entered into the Credit Agreement, dated as of March 30, 2011 (the “Credit
Agreement”), pursuant to which the Lenders have made the Loans to the Borrower; and

     WHEREAS, the Grantor and the Collateral Agent have entered into the Aircraft Mortgage in order
to secure the payment and performance of all obligations of the Borrower Parties under the Credit
Agreement; and

     WHEREAS, the Grantor has agreed to secure the Secured Obligations by assigning to the
Collateral Agent the lease agreements as more fully described on Schedule 1 hereto, together with
all schedules, supplements and amendments thereto (the “Assigned Leases”); and

     NOW THEREFORE, the Grantor hereby agrees as follows with the Collateral Agent for its benefit
and the benefit of the other Secured Parties:

1. The Grantor does hereby transfer, convey, pledge, mortgage, hypothecate, assign and grant a
first priority security interest to the Collateral Agent, subject to no prior interests of any
Person whatsoever except for the lessee under each Assigned Lease, in all of such Grantor’s rights,
title and interest in and to each Assigned Lease, including without limitation: (i) all rights of
such Grantor to receive moneys due and to become due under or pursuant to such Assigned Leases,
(ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or
guaranty with respect to such Assigned Leases up to the amount of hull insurance in respect of such
Pool Aircraft required to be carried under the Aircraft Mortgage, (iii) claims of such Grantor for
damages arising out of or for breach or default under such Assigned Leases, (iv) all

Aircraft Mortgage and Security Agreement

F-1

 

rights under any such Assigned Lease with respect to any subleases of the Pool Aircraft subject to
such Assigned Lease, (v) the right of such Grantor to terminate such Assigned Leases and to compel
performance of, and otherwise to exercise all remedies under, any Assigned Lease, whether arising
under such Assigned Leases or by statute or at law or in equity and (vi) all proceeds, howsoever
arising, of the foregoing.

2. INCORPORATION BY REFERENCE. THE SECURITY INTEREST CREATED UNDER THIS ASSIGNMENT IS
GRANTED IN ACCORDANCE WITH THE AIRCRAFT MORTGAGE AND ALL OF THE TERMS AND CONDITIONS
THEREOF, INCLUDING BUT NOT LIMITED TO PROVISIONS RELATING TO THE GRANTOR’S RIGHTS IN
RESPECT OF DEALING WITH ANY ASSIGNED LEASE AND THE COLLATERAL AGENT’S EXERCISE OF REMEDIES,
SHALL BE INCORPORATED HEREIN BY REFERENCE.

	3.	 	MISCELLANEOUS

     3.1 Successors and Assigns. All the terms, provisions, conditions and covenants
herein contained shall be binding upon and shall inure to the benefit of the Grantor, the
Collateral Agent and their respective permitted successors, assigns and transferees.

     3.2 Severability. Any provision of this Assignment prohibited by the laws of any
jurisdiction or otherwise held to be invalid by any court of law of any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition, or modified to conform with
such laws, without invalidating the remaining provisions hereof; and any such prohibition in any
jurisdiction shall not invalidate such provisions in any other jurisdiction.

     3.3 Governing Law. THIS ASSIGNMENT IS DELIVERED IN AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     3.4 Further Assurances. At any time and from time to time, upon the request of the
Collateral Agent, the Grantor shall promptly and duly execute and deliver any and all such further
instruments and documents that may be necessary, or that the Collateral Agent may reasonably
request, in order for the Collateral Agent to obtain the full benefits of security interests and
assignments created or intended to be created hereby and of the rights and powers granted herein
and in the Aircraft Mortgage.

     3.5 Notices. All notices, requests, demands or other communications required
hereunder or given pursuant hereto shall be in writing unless otherwise expressly provided to the
following specified address or to such other address as either party may from time to time hereafter designate to
the other party in writing:

Aircraft Mortgage and Security Agreement

F-2

 

If to the Grantor:

[_____]

[ADDRESS]

Attention: [_____]

Fax: [_____]

If to the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Fax: 212-657-2762

	 	3.6	 	Collateral Agent.
	 
	               The Collateral Agent shall be afforded all of the rights, protections, immunities and
indemnities set forth in the Aircraft Mortgage as if such rights, protections, immunities and
indemnities were specifically set forth herein.
	 
	 	3.7	 	Cape Town Convention.
	 
	               The parties hereto agree that for the purposes of the Cape Town Convention, each Airframe and
Engine are “aircraft objects” (as defined in the Protocol) and this Assignment constitutes, with
respect to a Lease that constitutes an International Interest, an assignment of such International
Interest and associated rights associated with each Airframe and Engine as regards the Assigned
Lease.
	 
	        3.8 Execution in Counterparts. This Assignment may be executed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures were
upon the same instrument.

[Remainder of page intentionally left blank]

Aircraft Mortgage and Security Agreement

F-3

 

IN WITNESS WHEREOF, the undersigned have executed or caused this Assignment to be executed on the
day and year first written above.

	 	 	 	 	 
	 	GRANTOR:

[_____]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	COLLATERAL AGENT:

CITIBANK, N.A., not in its individual capacity but solely 

as
Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

F-4

 

     APPENDIX A

FAA LEASE SECURITY ASSIGNMENT

DEFINITIONS

     For all purposes of this Assignment, all capitalized terms used, but not defined, in this
Assignment shall have the respective meanings assigned to such terms in the Aircraft Mortgage, and
the following terms have the meanings indicated below:

          “Assignment” has the meaning specified in the recital of parties to this Assignment.

          “Aircraft Mortgage” has the meaning specified in the preliminary statements to this
Assignment.

          “Airframes” means the airframes described in Schedule I hereto.

          “Assigned Lease” has the meaning specified in the third recital of this Assignment.

          “Borrower Parties” has the meaning specified in the Credit Agreement.

          “Cape Town Convention” has the meaning specified in the Credit Agreement.

          “Credit Agreement” has the meaning specified in the first recital of this Assignment.

          “Engines” means the engines described in Schedule I hereto.

          “Grantor” has the meaning specified in the recital of parties to this Assignment.

          “International Interest” has the meaning specified in the Cape Town Convention.

          “Lien” has the meaning specified in the Credit Agreement.

          “Person” has the meaning specified in the Credit Agreement.

          “Pool Aircraft” means, collectively, the Airframes and Engines.

          “Protocol” has the meaning specified in the Credit Agreement.

          “Secured Obligations” has the meaning given to the term “Secured Obligations” in the Aircraft
Mortgage.

          “Secured Parties” has the meaning given to the term “Secured Parties” in the Aircraft
Mortgage.

Aircraft Mortgage and Security Agreement

F-5

 

Schedule 1

to FAA Lease Security Assignment (MSN [_____])

     “Airframe [__]” means one (1) [__________] Model [__________]1 aircraft bearing
manufacturer’s serial no. [_____] and FAA registration number [_____].

     “Engines [__]” means two (2) [__________]2 Model [__________]3 aircraft
engines (each of which engines has 550 or more rated takeoff horsepower and is a jet propulsion
aircraft engine having at least 1750 pound of thrust or the equivalent thereof) bearing
manufacturer’s serial nos. [_____] and [_____] respectively.

     [Lease Agreement] dated [__________], between [__________] and [__________] relating to
Airframe [__] and Engines [__] recorded by the Federal Aviation Administration on _______________
and assigned Conveyance No. ____________.

 

			
	1  	 	 Described on the International Registry drop down menu as [__].
	 
	2  	 	 Described on the International Registry drop down menu as [__].
	 
	3  	 	 Described on the International Registry drop down menu as [__].

Aircraft Mortgage and Security Agreement

F-6

 

     EXHIBIT G

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF NOTICE OF ASSIGNMENT

From: [__________] (the “Lessor”)

To: [__________] (the “Lessee”)

[DATE]

Ladies and Gentlemen:

We refer to the [Aircraft Lease Agreement] dated as of [__________] (as amended and supplemented,
the “Lease”) entered into between Lessee and Lessor pertaining to one (1)
[MANUFACTURER/MODEL] aircraft bearing manufacturer’s serial number [MSN] and registration number
[REG] and [MANUFACTURER/MODEL] engines bearing manufacturer’s serial numbers [ESN] and [ESN], each
of which is a jet propulsion engine bearing at least 1750 pounds of thrust or the equivalent
thereof.

Any and all initially capitalized terms used herein shall have the meanings ascribed thereto in the
Lease, unless specifically defined herein.

The Lessor hereby gives you notice that by that certain Aircraft Mortgage and Security Agreement
dated as of March 30, 2011, and made between the parties named therein including Lessor and
Citibank, N.A., as the Collateral Agent (the “Collateral Agent”), the Lessor has assigned
to the Collateral Agent by way of security all its right, title and interest in and to the Lease
and the proceeds thereof, including certain insurance proceeds (the “Security Assignment”).
The Lessor also notifies you that the Collateral Agent is a [Collateral Agent] as defined under
the Lease.

Notwithstanding any contrary provision in the Lease, Citibank, N.A., as Collateral Agent, shall be
the loss payee, a contract party and an additional insured, as applicable, on all hull and war risk
policies of insurance and Citibank, N.A., as Collateral Agent and Administrative Agent shall be a
contract party and an additional insured, as applicable, on all liability policies of insurance.

If the Collateral Agent issues to you a notice (a “Relevant Notice”) that its rights as
assignee under the Security Assignment have become exercisable as provided therein, you are hereby
authorized and required to thereafter perform, observe and comply with all your undertakings and
obligations under the Lease in favor and for the benefit of the Collateral Agent as if the
Collateral Agent were named as lessor therein instead of Lessor, and from and after the date of the
Relevant Notice, you shall make all payments under the Lease as provided in the Relevant Notice or
as the Collateral Agent shall otherwise direct.

Aircraft Mortgage and Security Agreement

G-1

 

This notice and the instructions herein contained are irrevocable unless and until the Collateral
Agent revokes them.

This notice shall be governed by and construed in accordance with [New York]/[English] law.

Very truly yours,

[__________]

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

G-2

 

EXHIBIT C

FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as
of the Effective Date set forth below and is entered into by and between
[the][each]1 Assignor identified in item 1 below ([the][each, an]
“Assignor”) and [the][each]2 Assignee identified in item 2 below
([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations
of [the Assignors][the Assignees]3 hereunder are several and not joint.]4
Capitalized terms used but not defined herein shall have the meanings given to them in the Term
Loan Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which
is hereby acknowledged by [the][each] Assignee. The Standard Terms and Conditions set forth in
Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part
of this Assignment and Assumption as if set forth herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below, (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities
identified below and (ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the
respective Assignors (in their respective capacities as Lenders)] against any Person, whether known
or unknown, arising under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed thereby or in any way
based on or related to any of the foregoing, including, but not limited to, contract claims, tort
claims, malpractice claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned by [the][any] Assignor to
[the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein
collectively as [the][an] “Assigned Interest”). Each such sale and assignment
is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by [the][any] Assignor.

 

			
	1	 	For bracketed language here and elsewhere in
this form relating to the Assignor(s), if the assignment is from a single
Assignor, choose the first bracketed language. If the assignment is from
multiple Assignors, choose the second bracketed language.
	 
	2	 	For bracketed language here and elsewhere in
this form relating to the Assignee(s), if the assignment is to a single
Assignee, choose the first bracketed language. If the assignment is to
multiple Assignees, choose the second bracketed language.
	 
	3	 	Select as appropriate.
	 
	4	 	Include bracketed language if there are
either multiple Assignors or multiple Assignees.

Term Loan Credit Agreement

C-1

 

	 	 	 	 	 	 	 

	1.

	 	Assignor[s]:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee[s]:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 	 	[for each Assignee, indicate [Affiliate] of [identify Lender]]

	 	 	 	 	 

	3.

	 	Borrower:
	 	 

	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	Citibank, N.A., as the administrative
agent under the Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The Term Loan Credit Agreement dated as
of March 30, 2011, among Temescal
Aircraft Inc., as Borrower,
International Lease Finance
Corporation, Park Topanga Aircraft
Inc., as an Obligor, Charmlee Aircraft
Inc., as a Guarantor, Ballysky Aircraft
Ireland Limited, as an Obligor, the
Lenders from time to time party
thereto, Citibank, N.A, as
Administrative Agent, Citibank, N.A, as
Collateral Agent, Citigroup Global
Markets Inc. and Credit Suisse
Securities (USA) LLC as joint lead
structuring agents and joint lead
placement agents, and BNP Paribas as
joint placement agent.
	 
	 	 	 	 
	6. Assigned Interest[s]:

	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	Percentage
	 	 	 	 	Amount of	 	Amount of	 	Assigned of
	 	 	 	 	Commitment/Loans	 	Commitment/Loans	 	Commitment/
	Assignor[s]5	 	Assignee[s]6	 	for all Lenders7	 	Assigned	 	Loans8
	 
	 	 	 	$
	 	$
	 	%
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	$
	 	$
	 	%
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	$
	 	$
	 	%
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 

	[7. Trade Date: __________________]9

 

			
	5	 	List each Assignor, as appropriate.
	 
	6	 	List each Assignee, as appropriate.
	 
	7	 	Amounts in this column and in the column
immediately to the right to be adjusted by the counterparties to take into
account any payments or prepayments made between the Trade Date and the
Effective Date.
	 
	8	 	Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

Term Loan Credit Agreement

C-2

 

Effective Date: _____________ ___, _____ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	[Consented to and]10 Accepted:

CITIBANK, N.A., as

Administrative Agent

 	 
	By  	 	 
	 	Title: 	 
	 	 	 
	[Consented to:]11

TEMESCAL AIRCRAFT INC.

 	 
	By  	 	 
	 	Title: 	 

 

(continued...)

			
	9	 	To be completed if the Assignor
and the Assignee intend that the minimum assignment amount is to be determined
as of the Trade Date.
	 
	10	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	11	 	To be added only if the consent of the
Borrower is required by the terms of the Credit Agreement.

Term Loan Credit Agreement

C-3

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

     1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of any Loan Document or (iv) the performance or observance by
the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

     1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 9.05 of the
Credit Agreement (subject to such consents, if any, as may be required under Section 9.05 of the
Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of
the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either
it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned
Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit
Agreement, and has received or has been accorded the opportunity to receive copies of the most
recent financial statements delivered pursuant to Section 5.09 thereof, as applicable, and such
other documents and information as it deems appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase
[the][such] Assigned Interest, (vii) if it is a Foreign Lender, attached hereto is any
documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by [the][such] Assignee, and (viii) without limitation to Section 9.05 of
the Credit Agreement, if as a result of circumstances existing at the Effective Date, the Borrower
would be obliged to make a payment to [the][such] Assignee under Section 2.08 or 2.09 of the Credit
Agreement, then the rights of [the][such] Assignee to receive payment under such Sections by
reference to the circumstances existing as at the Effective Date (or a continuation of such
circumstances) shall be limited to the extent of the entitlement of

Term Loan Credit Agreement

C-4

 

[the][the relevant] Assignor had the assignment of [the][the relevant] Assigned Interest not
occurred; and (b) agrees that (i) it will, independently and without reliance upon the
Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of [the][each] Assigned Interest (including payments of principal,
interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to
but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued
from and after the Effective Date.

     3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be construed
in accordance with and governed by the laws of the State of New York.

Term Loan Credit Agreement

C-5

 

EXHIBIT D-1A

FORM OF OPINION OF CLIFFORD CHANCE US LLP

[SEE ATTACHED]

Term Loan Credit Agreement

D-1A-1

 

			
	To the Addressees Listed on Schedule 1
	 	____________, 2011

Ladies and Gentlemen:

We have acted as New York counsel to International Lease Finance Corporation (the “Company”) and
the other Obligors as defined below in connection with the Term Loan Credit Agreement (the “Credit
Agreement”) dated as of the date hereof among Temescal Aircraft Inc., a California corporation, as
Borrower (the “Borrower”), the Company, Park Topanga Aircraft Inc., a California corporation (the
“Parent Holdco”), Charmlee Aircraft Inc., a California corporation (the “CA Subsidiary Holdco”),
Ballysky Aircraft Ireland Limited, a private limited liability company incorporated under the laws
of Ireland (the “Irish Subsidiary Holdco”), the Lenders party thereto, Citibank, N.A., as
Administrative Agent and Collateral Agent (the “Collateral Agent”), Citigroup Global Markets Inc.
and Credit Suisse Securities (USA) LLC, as Joint Lead Structuring Agents and Joint Lead Placement
Agents, and BNP Paribas, as the Joint Placement Agent.

Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in
the Credit Agreement. This opinion is delivered pursuant to Section 4.01(e) of the Credit
Agreement.

In rendering the opinions expressed below, we have examined executed copies of the following
documents:

(a) the Credit Agreement;

(b) the Aircraft Mortgage and Security Agreement (the “Security Agreement”) dated as of the
date hereof among the Parent Holdco, the Borrower, the CA Subsidiary Holdco, the Irish
Subsidiary Holdco, the additional grantors party thereto and the Collateral Agent;

 

 

(c) the Account Control Agreement (the “Account Control Agreement”) dated as of
____________, 2011 among the ____________, ____________ and the Collateral Agent; and

(d) the Intercreditor Agreement (the “Intercreditor Agreement”) dated as of the date hereof
among ____________, ____________, the Company and the Collateral Agent.

Each of the Company, the Parent Holdco, the Borrower, the CA Subsidiary Holdco and the Irish
Subsidiary Holdco is referred to herein as an “Obligor”. Each of the Company, the Parent Holdco,
the Borrower and the CA Subsidiary Holdco is referred to herein, individually, as a “CA Obligor”,
and collectively, as the “CA Obligors”. Each of the Credit Agreement, the Security Agreement, the
Intercreditor Agreement and the Account Control Agreement is referred to herein as a “Transaction
Document”. Each of the Security Agreement and the Account Control Agreement is referred to herein
as a “Security Document”. For purposes of this opinion, the term “Collateral” shall mean the
Pledged Debt and Pledged Equity (each as defined below).

We have also examined and relied upon such records and statements and certificates of public
officials and representatives and officers of the Obligors and other persons as we have deemed
necessary as a basis for the opinions expressed below. As to factual matters relevant to our
opinions expressed below, we have, without independent investigation, relied upon the foregoing and
the representations and warranties made in or pursuant to the Transaction Documents. We have not
reviewed the dockets or other records of any court, arbitrator or governmental or regulatory body
or agency or conducted any other investigation or inquiry or otherwise established or verified any
factual matter.

In such examination, we have assumed the legal capacity of all natural persons, the genuineness of
all signatures, the authenticity of all documents submitted to us as originals and the conformity
with the originals of all documents submitted to us as certified or photostatic copies.

Except as expressly opined on by us below, we have assumed, without investigation: (i) the due
organization, valid existence and, to the extent applicable, good standing of each party to the
Transaction Documents; (ii) that each party to the Transaction Documents has requisite power and
authority to execute, deliver and perform its obligations under the Transaction Documents to which
it is a party; (iii) that each Transaction Document has been duly authorized, executed and
delivered by each party thereto; (iv) that each Transaction Document constitutes a valid, binding
and enforceable obligation of each party thereto; (v) that the execution, delivery and performance
by each party of the Transaction Documents to which it is a party do not contravene such party’s
constitutional documents, violate any law, rule or regulation applicable to such party or result in

- 2 -

 

any conflict with or breach of any agreement or instrument to which such party is a party or by
which such party is bound; (vi) that each party to the Transaction Documents has obtained or made
all consents, approvals, authorizations, filings, registrations, qualifications or recordations
with each Governmental Authority required in connection with the execution, delivery and
performance of the Transaction Documents; (vii) all applicable filings, registrations, recordations
or other actions necessary to perfect as to ownership or security interest (except as set forth
herein) including under the Cape Town Convention have been or will be made; (viii) for purposes of
the Uniform Commercial Code of the State of New York (the “NYUCC”), Irish Subsidiary Holdco is
deemed located in Washington D.C.; and (ix) the accuracy and completeness as of the date hereof of
the certificates and other information and statements delivered or made to us by representatives
and officers of each Obligor.

We have made no investigation or review of any matters relating to the Obligors or any other person
or entity other than as expressly described herein. Further, we have made no special investigation
of the business operations of the Obligors or any other person or entity for the purpose of
identifying laws or regulations to which the Obligors or any other person or entity are subject.
With reference particularly to our opinion in paragraph 3 below, we note that our representation of
the Obligors is limited to this and similar transactions and that we are not generally familiar
with their respective affairs or operations.

We have also assumed that:

     (i) all applicable chattel paper (as such term is defined in Article 9 of the Uniform
Commercial Code of the State of New York (the “NYUCC”) constitutes “tangible chattel paper” within
the meaning of Section 9-102 of the NYUCC and is located only in the State of New York and is in
the possession of the Collateral Agent;

     (ii) the Collateral subject to the Lien of the Security Documents exists, and each applicable
Obligor has rights in the applicable Collateral and has the power to transfer its respective rights
in the applicable Collateral;

     (iii) the descriptions of the Collateral contained in, or attached as schedules to, the
applicable Security Documents sufficiently describe the Collateral intended to be covered by such
Security Documents;

     (iv) the Collateral does not include any “cooperative interest” or “commercial tort claim” (as
such terms are defined in Article 9 of the NYUCC);

- 3 -

 

     (v) for purposes of Article 9 of the NYUCC, no statute, regulation or treaty of the United
States is applicable to any of the Collateral;

     (vi) the certificates representing the Pledged Equity (used herein to mean the Pledged Equity
certificates listed in Schedule II to the Security Agreement) of the Borrower, the CA Subsidiary
Holdco and the Irish Subsidiary Holdco are in the possession of the Collateral Agent, together with
duly executed in blank instruments of transfer in respect thereof; and

     (vii) the instruments representing the Pledged Debt (used herein to mean the Pledged Debt
instruments listed in Schedule II to the Security Agreement) are each in the possession of the
Collateral Agent. 

Based upon the foregoing and subject to the qualifications and limitations set forth below, we
are of the opinion that:

     (1) Each Transaction Document is a valid and binding obligation of each Obligor party thereto,
enforceable against such Obligor in accordance with its terms.

     (2) The execution and delivery by each Obligor of the Transaction Documents to which it is a
party do not, and the performance by each Obligor of its obligations thereunder will not, cause
such Obligor to violate any Generally Applicable Law (defined below).

     (3) No consent, approval or authorization of, and no filing, registration, qualification or
recordation with, United States federal or State of New York governmental authorities pursuant to
any Generally Applicable Law is required in connection with the execution and delivery and
consummation of the transactions contemplated thereby by any Obligor of the Transaction Documents
to which it is a party.

     (4) The Security Agreement is effective to create in favor of the Collateral Agent a valid
security interest in all right, title and interest of each Obligor in the Collateral (as defined in
the Security Agreement) to secure the Secured Obligations, in each case to the extent a security
interest therein may be created under Article 9 of the NYUCC.

     (5) Each Uniform Commercial Code financing statement a copy of which is attached as Schedule 2
hereto (“Financing Statement”) is in the form required by the Uniform Commercial Code of the
jurisdiction named therein.

     (6) To the extent that the creation of security interests in the Collateral is governed by the
NYUCC, perfection of such security interests in such collateral consisting of investment

- 4 -

 

property, general intangibles, tangible chattel paper, accounts, equipment and other goods and
other rights and/or property in which a security interest can be perfected under the NYUCC is
governed, under Section 9-301 of the NYUCC, by the local laws of the jurisdiction where the
applicable grantor is located, except that perfection of a possessory security interest in such
Collateral is governed, under Section 9-301 of the NYUCC, by the local laws of the jurisdiction of
the location of such Collateral. Except for (a) the Collateral Agent taking delivery of (i)
instruments which represent the entire interest of the Pledged Debt and (ii) the certificates which
represent the entire interest of the Pledged Equity in each of the Borrower, the CA Subsidiary
Holdco and the Irish Subsidiary Holdco along with, in each case, a duly executed in blank
instrument of transfer of such Pledged Debt or such Pledged Equity, and (b) the filing of each
Financing Statement in the filing office named therein with respect to such Collateral, no further
action, including the filing or recording of any document, is necessary under the CALUCC, the DCUCC
or the laws of the State of New York or of the United States in order to perfect the security
interests created under the Security Agreement in such Pledged Equity or Pledged Debt to the extent
the perfection of a security interest thereon may be effected under the NYUCC by the filing of a
Financing Statement.

     (7) The Collateral Agent’s security interest in that portion of the Collateral consisting of
(i) the Collateral Account (as defined in the Account Control Agreement) and (ii) security
entitlements (as defined in the NYUCC) being credited by book entry to the Collateral Account (the
“Pledged Financial Assets”) will be perfected upon the execution and delivery by each party thereto
of the Account Control Agreement.

As used herein, “Generally Applicable Law” means any law otherwise included within the scope of
this opinion that a New York lawyer exercising customary professional diligence would reasonably be
expected to recognize as being currently applicable to the Obligors, the Transaction Documents or
the transactions contemplated thereby, including the grants of the security interests, excluding
securities laws and any law that is applicable to the Obligors, the Transaction Documents or the
transactions contemplated thereby, including the grants of the security interests, solely because
of the specific assets or business of any party to any of the Transaction Documents or any of its
affiliates. In particular, but without limitation, we express no opinion upon the application or
effect of (i) any customs, international trade or other laws relating to the possession, import,
export, use, operation, maintenance, repair or replacement of or the nature of any equipment, or
any interest therein; (ii) federal or state antitrust and unfair competition, environmental,
intellectual property, pension and employee benefit, or securities (including “blue sky”) laws;
(iii) federal or state laws relating to aviation, banking, communications, customs, insurance,
international trade, public utilities or taxation; (iv) federal

- 5 -

 

and state laws and policies relating to (A) national and local emergencies and (B) deference to
acts of sovereign states, including court orders; (v) federal or state criminal and civil
forfeiture laws; (vi) other federal and state statutes of general application to the extent they
provide for criminal prosecution (e.g., mail fraud and wire fraud statutes); and (vii) the laws of
any counties, cities, towns, municipalities and special political subdivisions or agencies thereof;
and in the case of each of the foregoing, all rules and regulations promulgated thereunder or
administrative or judicial decisions with respect thereto.

Our opinions set forth above are subject to the following qualifications and limitations:

     (a) Our opinion set forth in paragraph 1 above is subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting the
enforcement of creditors’ rights and general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law, and including, without
limitation, principles relating to materiality, good faith and fair dealing, reasonableness,
unconscionability and availability of equitable remedies).

     (b) We express no opinion on the effect of the Cape Town Convention or the Convention on the
International Recognition of Rights in Aircraft signed at Geneva on June 19, 1948.

     (c) We express no opinion as to any provision of a Transaction Document that provides the
terms thereof may not be waived or modified except in writing, which may be limited under certain
circumstances.

     (d) We express no opinion as to any provision in a Transaction Document asserting that the
partial invalidity of one or more provisions thereof shall not invalidate the remaining provisions
thereof.

     (e) We express no opinion with respect to any indemnification or reimbursement obligation or
limitation on liability contained in a Transaction Document, insofar as such provision provides
exculpation or exemption from, or requires indemnification or reimbursement of a party for, its own
action or inaction, where such action or inaction involves such party’s gross negligence,
recklessness or wilful or unlawful misconduct or to the extent any such provision is contrary to
public policy.

     (f) Certain of the remedial provisions of a Security Document may be further limited or
rendered unenforceable by applicable law, but, subject to the other qualifications set forth herein
and except for the economic consequences of any delay that might arise from such

- 6 -

 

limitation on enforceability, in our opinion such law does not make the remedies afforded by
such Security Document inadequate for the practical realization of the principal benefits intended
to be provided thereby.

     (g) United States federal court jurisdiction is limited by Section 28 U.S.C. § 1332 where
diversity of citizenship is lacking and, even where diversity exists, federal courts retain the
power to transfer an action from one federal court to another under 28 U.S.C. § 1404(a) or to
dismiss by reason of the doctrine of forum non conveniens.

     (h) We express no opinion as to title to any property or whether a United States federal court
or state court outside of the State of New York would give effect to the choice of New York law
provided for in a Transaction Document. Our opinion as to the legality, validity, binding effect
and enforceability of the governing law provisions of each Transaction Document is based solely on
Section 5-1401 of the New York General Obligations Law. Our opinion as to the legality, validity,
binding effect and enforceability of the provisions of each Transaction Document in respect of the
submission to the jurisdiction of the courts of the State of New York is based solely on Section
5-1402 of the New York General Obligations Law.

     (i) We express no opinion, except as expressly set forth herein, as to the creation,
perfection or priority of any lien, pledge or security interest.

     (j) We express no opinion as to indemnities against loss in converting from amounts
denominated or paid in one currency into a second currency. We note that, generally, all judgments
and decrees rendered by a federal or state court sitting in the State of New York are denominated
in U.S. Dollars; under the laws of the State of New York, however, where a cause of action is based
on an obligation denominated in another currency, any judgments or decrees must be rendered or
entered in such currency and be converted into U.S. Dollars at the rate of exchange prevailing on
the date of entry of the judgment or decree.

     (k) We express no opinion as to any provision of a Transaction Document that purports to (i)
grant rights of set-off to any person not a party thereto or (ii) permit set-off to be made without
notice.

     (l) We express no opinion as to any provision of any Transaction Documents that purports to
waive or exclude the rights of any person to commence any bankruptcy, reorganization, insolvency or
similar proceeding or purports to waive notice of acceleration.

     (m) We express no opinion as to the effect of (i) the compliance or non-compliance of any
Obligor, the Collateral Agent or any other person or entity with any state or federal laws or

- 7 -

 

regulations applicable to such party because of its legal or regulatory status or the nature
of its business or (ii) the failure of any person or entity to be duly authorized to conduct
business in any jurisdiction.

     (n) We also express no opinion as to the applicability to, or effect on, the obligations of
any Obligor under any Transaction Document of Section 547 or 548 of the United States Bankruptcy
Code, 11 U.S.C. Sections 101 et seq. (as amended from time to time, the “Bankruptcy Code”) or
Article 10 of the New York Debtor and Creditor Law or any other New York or Federal law relating to
preferences or fraudulent transfers and obligations.

     (o) We call to your attention that a security interest of the Collateral Agent in any
Collateral constituting “payment intangibles”, “general intangibles” or “accounts” (as such terms
are defined in Article 9 of the NYUCC) may be subject to the rights, claims and defenses of account
debtors and the terms of agreements with account debtors. In the case of any Collateral which is
itself secured by other property, we express no opinion with respect to the Collateral Agent’s
rights in and to such underlying property.

     (p) Our opinion set forth in paragraph 4 above is subject to the further qualification that:
(i) in the case of proceeds, the Collateral Agent’s security interest is limited as provided in
Sections 9-315 and 9-322 of the NYUCC; and (ii) Section 552 of the Bankruptcy Code limits (subject
to the exceptions set forth therein) the extent to which property acquired by a debtor after the
commencement of a case under the Bankruptcy Code may be subject to a security interest arising from
a security agreement entered into by the debtor before the commencement of such case.

     (q) In rendering our opinion set forth in paragraph 4 above, we have assumed that value has
been given to each Obligor party to a Security Document.

     (r) In the case of Collateral in which the security interest of the Collateral Agent has been
perfected by the filing of a Financing Statement, Article 9 of the Uniform Commercial Code requires
the filing of continuation statements within the period of six months prior to the expiration of
five years from the date of the original filings in order to maintain the effectiveness of such
filings.

     (s) The perfection of the Collateral Agent’s security interest will be terminated as to any
Collateral acquired by an Obligor more than four months after such Obligor so changes its name as
to make the Financing Statement filed in respect of such Obligor seriously misleading,

- 8 -

 

unless an amendment to such Financing Statement indicating the new name of the relevant entity
is properly filed before the expiration of such four months.

     (t) If any Obligor changes its jurisdiction of organization to a new jurisdiction, the
Collateral Agent’s security interest in certain of the Collateral will terminate four months after
such change (or, if earlier, when perfection would have ceased under the law of the former
jurisdiction), unless such security interest is perfected in such new jurisdiction before
termination.

     (u) In rendering our opinion set forth in paragraph 6 above, while we note Irish Subsidiary
Holdco is organized under the laws of Ireland, which we understand has a filing system for the
recordation of security interests and is a Contracting State, we have assumed for the purpose of
perfecting a security interest under New York law that Irish Subsidiary Holdco is located in the
District of Columbia.

     (v) We express no opinion at to any provision of any Transaction Document that provides for
waiver of trial by jury or of other rights or defenses that under applicable law (including
judicial decisions) or public policy cannot be waived.

The opinions expressed herein are limited to the federal laws of the United States, the laws of the
State of New York and, insofar as may be relevant to our opinions expressed herein in paragraphs 5
and 6, the laws of the State of New York, the CALUCC and the DCUCC. We are members of the bar of
the State of New York. Our opinions relating to the CALUCC are based solely on our review of
statutory compilations of such laws appearing in recognized reporting services. With respect to
matters involving the DCUCC, we draw your attention to the fact that we are not admitted to the bar
in the District of Columbia and are not experts in the laws of the District of Columbia and that
the opinions concerning the DCUCC are based on our review of a standard compilation of such laws
and in reliance on D.C. Mun. Regs., tit. 9, §513.2 which provides (notwithstanding the provisions
of Section 9-501(a) of the DCUCC specifying that the office in which to file a financing statement
for all collateral other than as-extracted collateral and timber to be cut is the Office of the
Mayor) that “[a] financing statement to perfect a security interest shall be filed with the
Recorder of Deeds.”

The opinions set forth herein are rendered as of the date hereof and we disclaim any undertaking to
update this letter or otherwise advise you as to any changes of law or fact that may hereafter be
brought to our attention.

- 9 -

 

This opinion is rendered solely for your benefit (and the benefit of your successors and permitted
assigns) in connection with the Credit Agreement and may not be relied upon for any other purpose,
or relied upon by any other person or entity without our prior written consent in each instance.

Very truly yours,

Clifford Chance US LLP

- 10 -

 

Schedule 1

Citibank, N.A., as Administrative Agent and Collateral Agent, on behalf of the Lenders

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

BNP Paribas

The Lenders party to the Term Loan Credit Agreement as of the Effective Date and the Incremental
Lenders

 

 

Schedule 2

UCC Financing Statements

 

 

EXHIBIT D-1B

FORM OF OPINION OF IN-HOUSE COUNSEL TO THE OBLIGORS

[SEE ATTACHED]

Term Loan Credit Agreement

D-1B-1

 

[ILFC Letterhead]

	 

	                                        , 2011

To the addressees listed on Schedule I attached hereto

Ladies and Gentlemen:

          This opinion is being delivered to you by the undersigned as _________ of International Lease
Finance Corporation, a California corporation (“ILFC”), in connection with that certain
Term Loan Credit Agreement, dated as of the date hereof (the “Credit Agreement”), among
Temescal Aircraft Inc., a California corporation (the “Borrower”), ILFC, Park Topanga
Aircraft Inc., a California corporation (the “Parent Holdco”), Charmlee Aircraft Inc., a
California corporation (the “CA Subsidiary Holdco”), Ballysky Aircraft Ireland Limited, a
private limited liability company incorporated under the laws of Ireland (the “Irish Subsidiary
Holdco”), the lenders from time to time party to the Credit Agreement (collectively, the
“Lenders”), Citibank, N.A. (“Citibank”), as administrative agent (in such capacity,
the “Administrative Agent”), Citibank, as collateral agent (in such capacity, the
“Collateral Agent”), Citigroup Global Markets Inc. (“Citigroup”) and Credit Suisse
Securities (USA) LLC, as joint lead structuring agents and joint lead placement agents (in such
capacity, the “Joint Lead Agents”) and BNP Paribas, as Joint Placement Agent
(“Joint Placement Agent”).

          This opinion is being furnished pursuant to Section 4.01(e) of the Credit Agreement.
Capitalized terms used and not otherwise defined herein shall have the respective meanings set
forth in the Credit Agreement.

          In rendering the opinions set forth herein, I have examined and relied on originals or copies
of the following:

          (a) the Credit Agreement;

          (b) the Aircraft Mortgage and Security Agreement, dated as of the date hereof (the
“Security Agreement”), among the Borrower, the Parent Holdco, the CA Subsidiary Holdco, the
Irish Subsidiary Holdco, the additional grantors from time to time party thereto and the Collateral
Agent;

          (c) the Share Charge dated as of the date hereof (the “Share Charge”), between the
Borrower, as chargor, and the Collateral Agent, as chargee, in respect of shares in the Irish
Subsidiary Holdco;

- 1 -

 

          (d) the Account Control Agreement dated as of March __, 2011 (the “Account Control
Agreement”) between the Borrower, as pledgor, and the Collateral Agent, as Pledgee;

          (e) the Intercreditor Agreement dated as of the date hereof (the “Intercreditor
Agreement”) among the Parent Holdco, the Borrower, the CA Subsidiary Holdco, the Irish
Subsidiary Holdco, ILFC and the Collateral Agent;

          (f) the Articles of Incorporation of each CA Obligor, as certified by the Secretary of each CA
Obligor as hereafter defined;

          (g) the Bylaws of each CA Obligor, as certified by the Secretary of each CA Obligor;

          (h) the resolutions of the Board of Directors of each CA Obligor adopted by unanimous written
consent; and

          (i) certificates, from the Secretary of State of the State of California and the Franchise Tax
Board of the State of California, as to each CA Obligor’s existence and good standing in the State
of California.

          Each of ILFC, the Parent Holdco, the Borrower and the CA Subsidiary Holdco is referred to
herein, individually, as a “CA Obligor”, and collectively, as the “CA Obligors.”
The Credit Agreement, the Security Agreement, the Share Charge, the Account Control Agreement and
the Intercreditor Agreement are referred to herein, individually, as a “Transaction
Document” and, collectively, as the “Transaction Documents”.

          I have also examined originals or copies, certified or otherwise identified to my
satisfaction, of such records of the CA Obligors and such agreements, certificates and receipts of
public officials, certificates of officers or other representatives of the CA Obligors and others,
and such other documents as I have deemed necessary or appropriate as a basis for the opinions set
forth below.

          In my examination, I have assumed the legal capacity of all natural persons, the genuineness
of all signatures, the authenticity and completeness of all documents submitted to me as originals,
the conformity to original documents of all documents submitted to me as facsimile, electronic,
certified or photostatic copies, and the authenticity of the originals of such copies. As to any
facts material to the opinions expressed herein that I did not independently establish or verify, I
have relied upon statements and representations of other officers and other representatives of the
CA Obligors and others and of public officials.

          The opinions set forth below are subject to the following further qualifications, further
assumptions and limitations:

          (a) the opinion set forth in paragraph 1 below with respect to the due incorporation, valid
existence and good standing status of each CA Obligor under the

- 2 -

 

laws of the State of California is based solely upon the certificates issued by the Secretary
of State of the State of California and the Franchise Tax Board of the State of California;

          (b) for purposes of the opinions set forth below, (i) “Applicable Laws” means those
laws, rules and regulations of the State of California and those federal laws, rules and
regulations of the United States of America, in each case that, in my experience, are normally or
customarily applicable to transactions of the type contemplated by the Transaction Documents, but
without having made any special investigation as to the applicability of any specific law, rule or
regulation; (ii) “Applicable Contracts” means those agreements or instruments identified on
Schedule II attached hereto; (iii) “Governmental Approval” means any consent,
approval, license, authorization or validation of, or filing, recording or registration with, any
Governmental Authority pursuant to Applicable Laws where the failure to obtain such consent,
approval, license, authorization or validation or to make such filing, recording or registration
will result in a Material Adverse Effect, and other than any consent, approval, license,
authorization, validation, filing, qualification or registration that may have become applicable as
a result of the involvement of any party (other than any of the CA Obligors) in the transactions
contemplated by the Transaction Documents or because of such parties’ legal or regulatory status or
because of any other facts specifically pertaining to such parties or required to be obtained after
the date hereof; and (iv) “Governmental Authority” means any court, regulatory body,
administrative agency or governmental body of the State of California or the United States of
America having jurisdiction over any CA Obligor under Applicable Laws;

          (c) I do not express any opinion as to the validity, binding effect or enforceability of the
Transaction Documents; and

          (d) I express no opinion as to: (1) United States federal or state securities, insurance or
banking laws or regulations; (2) United States federal or state antitrust or unfair competition
laws or regulations; (3) United States federal or state environmental laws or regulations; (4)
United States federal or state tax laws or regulations; (5) United States federal or state public
utility laws or regulations; (6) pension or employee benefit laws or regulations; (7) United States
federal patent, copyright or trademark, state trademark, or other United States federal or state
intellectual property laws or regulations; (8) United States federal or state health and safety
laws or regulations; (9) United States federal or state labor laws or regulations; (10) United
States federal or state laws, regulations or policies relating to national or local emergencies;
(11) statutes, ordinances, administrative decisions, rules or regulations of counties, towns,
municipalities or special political subdivisions (whether created or enabled through legislative
action at the United States federal, state or regional level); (12) United States federal or state
laws, rules or regulations relating to zoning, land use, building or construction; (13) United
States federal or state usury laws (other than California usury laws); (14) pension or employee
benefits laws or regulations, including the Employee Retirement Income Security Act of 1974, as
amended; (15) The USA Patriot Act (Title III of Public L. 107-56) or other anti-money laundering
laws or regulations; (16) the Foreign Corrupt Practices Act; (17) (a) the Trading with the Enemy
Act of 1917, 50 U.S.C.A. app. §1 et seq., of the United States, (b) the International Emergency

- 3 -

 

Economic Powers Act, 50 U.S.C.A. §1701 et seq., of the United States, or (c) all United States
Executive Orders (including the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism), rules,
regulations (including those from the Office of Foreign Assets Control of the U.S. Department of
the Treasury), and other official acts promulgated under any of the foregoing; or (18) judicial
decisions to the extent that they deal with any of the foregoing,

          (e) I do not express any opinion as to the effect on the opinions expressed herein of (i) the
compliance or noncompliance of any party to the Transaction Documents (other than the CA Obligors
to the extent necessary to render the opinions set forth herein) with any state, federal or other
laws or regulations applicable to it or them or (ii) the legal or regulatory status or the nature
of the business of any party (other than with respect to the CA Obligors to the extent necessary to
render the opinions set forth herein).

          I am admitted to the bar of the State of California, and I do not express any opinion as to
any laws other than the laws of the State of California and the federal laws of the United States
of America to the extent referred to specifically herein. Insofar as the opinions expressed herein
relate to matters governed by laws other than those set forth in the preceding sentence, I have
assumed, without having made any independent investigation, that such laws do not affect any of the
opinions set forth herein. The opinions expressed herein are based on laws in effect on the date
hereof, which laws are subject to change with possible retroactive effect.

          Based upon the foregoing and subject to the limitations, qualifications, exceptions and
assumptions set forth herein, I am of the opinion that:

          1. Each CA Obligor is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of California.

          2. Each CA Obligor has the requisite corporate power and authority to execute, deliver and
perform its obligations under the Transaction Documents. The execution, delivery and performance
by each CA Obligor of the Transaction Documents has been duly authorized by all necessary corporate
action on the part of such CA Obligor.

          3. Each of the Transaction Documents to which a CA Obligor is a party has been duly executed
and delivered by such CA Obligor.

          4. The execution and delivery of the Transaction Documents by each CA Obligor does not, and
the performance by each CA Obligor of its obligations under the Transaction Documents to which it
is a party will not (a) violate such CA Obligor’s Articles of Incorporation or Bylaws, (b)
contravene any provision of any Applicable Law, (c) constitute a violation of or a default under
any Applicable Contract or (d) result in or cause the creation of any security interest or lien
upon any of the property of such CA Obligor pursuant to any Applicable Contract.

- 4 -

 

          5. No Governmental Approval is required on the part of any CA Obligor, for the authorization,
execution, and delivery of or performance of its obligation under the Transaction Documents to
which it is a party, except for such Governmental Approvals which (i) have been obtained or taken
and are in full force and effect or (ii) will be obtained or made in the ordinary course of
business.

          6. In any proceedings duly taken in the courts of the State of California or a United States
federal court sitting in the State of California to enforce any of the Transaction Documents, the
choice of New York or Ireland law as the substantive law governing such Transaction Documents
should be recognized and such law should be applied except as may otherwise be provided under the
Transaction Documents and the California Uniform Commercial Code, including the California Uniform
Commercial Code Sections 9-301 to 9-307. The foregoing assumes that either the parties to the
Transaction Documents or the transactions contemplated thereby bear a substantial relationship to
the State of New York or to the country of Ireland and that the application of New York or Ireland
law would not result in a violation of a fundamental public policy of the State of California.

          The opinions set forth herein are solely for the benefit of the addressees (and their
successors and assigns) identified at the beginning of this opinion letter (the
“Addressees”) in connection with the execution and delivery of the Transaction Documents to
which it is a party by each CA Obligor, and may not be relied upon in any manner or for any purpose
by, nor may copies of this opinion letter be delivered or distributed to, any other person or
entity without my prior written consent. The opinions set forth herein are limited to the matters
stated herein and expressly set forth in this opinion letter, and no opinion is to be implied or
may be inferred beyond the matters expressly stated herein. This opinion letter is being provided
to the Addressees as of the date hereof, and the CA Obligors and I do not assume any obligation to
update this opinion letter for events occurring after the date of this opinion letter or to provide
the Addressees with any additional information that may come to our attention after the date
hereof. Each Addressee’s recourse, if any, on account of any opinion herein proving inaccurate,
shall be against the CA Obligors. I am rendering these opinions and this opinion letter in my
capacity as _________ of ILFC and not individually.

	 

	Very truly yours,

- 5 -

 

Schedule I

Citibank, N.A., as Administrative Agent, on behalf of the Lenders

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

Citibank, N.A., as Collateral Agent, on behalf of the Lenders

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

Citigroup Global Markets Inc., as Joint Lead Structuring Agent and Joint Lead Placement Agent

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

Credit Suisse Securities (USA) LLC, as Joint Lead Structuring Agent and Joint Lead Placement Agent

Eleven Madison Avenue, 5th Floor

New York, NY 10010

BNP Paribas, as Joint Placement Agent

Aviation Finance Group

520 Madison Avenue, 3rd Floor

New York, NY 10022

Attention: Robert Papas/Stephanie Klein

Facsimile No. (212) 841-2748

The Lenders from time to time party to that certain Credit Agreement, dated as of the date hereof,
by and among Temescal Aircraft Inc., International Lease Finance Corporation, Park Topanga Aircraft
Inc., Charmlee Aircraft Inc., Ballysky Aircraft Ireland Limited, and the other parties described
therein

 

 

Schedule II

Applicable Contracts

          1. Indenture, dated as of November 1, 1991, between the Company and U.S. Bank National
Association (successor to Continental Bank, National Association), as Trustee, as supplemented as
of November 1, 2000, February 28, 2001, September 26, 2001, November 6, 2002, December 27, 2002,
June 2, 2003, October 8, 2004, October 5, 2005, October 5, 2006 and October 9, 2007.

          2. Indenture, dated as of November 1, 2000, between the Company and The Bank of New York, as
Trustee, as supplemented as of August 16, 2002.

          3. Junior Subordinated Indenture, dated as of December 21, 2005, between the Company and
Deutsche Bank Trust Company Americas, as Trustee.

          4. Indenture, dated as of August 1, 2006, between the Company and Deutsche Bank Trust Company
Americas, as Trustee, as supplemented by the First Supplemental Indenture dated as of August 20,
2010, and the Second Supplemental Indenture, dated as of December 7, 2010.

          5. Indenture, dated as of March 22, 2010, among the Company, Wilmington Trust FSB, as Trustee,
and Deutsche Bank Trust Company Americas, as paying agent, security registrar and authentication
agent.

          6. Indenture, dated as of August 11, 2010, among the Company and The Bank of New York Mellon
Trust Company, as Trustee.

          7. Agency Agreement (Amended and Restated), dated as of September 15, 2006, supplemented by
the Supplemental Agency Agreement dated September 7, 2007, the Supplemental Agency Agreement dated
September 5, 2008, and the Supplemental Agency Agreement dated September 4, 2009, among the Company,
Citibank, N.A., as Agent, and Dexia Banque Internationale a Luxembourg Societe Anonyme.

          8. Aircraft Facility Agreement, dated as of January 19, 1999, among the Company, Sierra
Leasing Limited, Aircraft SPC-9, Inc., Bank of Scotland PLC (as
successor to Halifax PLC) as Agent and as Security Trustee, and the banks
and financial institutions named therein, as amended as of April 22, 1999 and April 2000.

          9. Aircraft Facility Agreement, dated as of May 18, 2004, among the Company, The Governor and
Company of The Bank of Scotland, London Branch, The Governor and Company of the Bank of Scotland,
Frankfurt Branch, The Governor and Company of the Bank of Scotland, Paris Branch, Whitney Leasing
Limited, Aircraft SPC-12, Inc. and the financial institutions named therein providing up to
$4,643,660,000 for the financing of aircraft, as amended as of April 20, 2005, May 30, 2006, May
30, 2007, May 29, 2008 and May 11, 2009.

          10. Deed of Cross-Collateralization, dated as of February 27, 2010, among the Bank of Scotland
PLC in various capacities as described therein, the financial institutions listed therein, Whitney
Leasing Limited, Aircraft SPC-12, Inc., Sierra Leasing Limited, Aircraft SPC-9, Inc., and the
Company in various capacities as described therein.

 

 

          11. Side Letter Agreement, dated as of February 27, 2010, among the Company, Whitney Leasing
Limited, Aircraft SPC-12, Inc., Bank of Scotland PLC, Bank of Scotland PLC, Paris Branch, and Bank
of Scotland PLC, Frankfurt Branch.

          12. $2,500,000,000 Five-Year Revolving Credit Agreement, dated as of October 13, 2006, among
the Company, CitiCorp USA, Inc., as Agent, and the other financial institutions listed therein, as
amended on April 16, 2010 and December 17, 2010.

          13. Term Loan 1 Credit Agreement, dated as of March 17, 2010, among the Company, ILFC Ireland
Limited, and ILFC (Bermuda) III, Ltd., as initial intermediate lessees, the lenders from time to
time party thereto, Bank of America, N.A., as administrative agent and collateral agent, and
Goldman Sachs Lending Partners LLC, as syndication agent.

          14. Term Loan 1 Aircraft Mortgage and Security Agreement, dated as of March 17, 2010, among
the Company, ILFC Ireland Limited, ILFC (Bermuda) III, Ltd., additional grantors from time to time
party thereto and Bank of America, N.A., as collateral agent.

          15. Term Loan 2 Credit Agreement, dated as of March 17, 2010, among Delos Aircraft Inc., as
Borrower, the Company, certain other subsidiaries as guarantors party thereto, the lenders from
time to time party thereto, Bank of America, N.A., as administrative agent and collateral agent,
and Goldman Sachs Lending Partners LLC, as syndication agent.

          16.
Term Loan 2 Security Agreement, dated as of March 17, 2010, among
Hyperion Aircraft Inc., Delos Aircraft Inc., Artemis (Delos) Limited, Apollo Aircraft Inc., the additional grantors from time to time
party thereto and Bank of America, N.A., as collateral agent.

          17. Security and Guarantee Agreement, dated as of April 16, 2010, among Citicorp USA, Inc., as
collateral agent, and Flying Fortress Inc., Flying Fortress US Leasing Inc., Flying Fortress
Ireland Leasing Limited and the additional guarantors named therein, as the guarantors.

          18. Aircraft Mortgage and Security Agreement and Guaranty, dated as of August 11, 2010, among
the Company, ILFC Ireland Limited, ILFC (Bermuda) III, Ltd., the additional grantors referred to
therein, and Wells Fargo Bank Northwest, National Association.

          19. $2,000,000,000 Three-Year Revolving Credit Agreement, dated as of January 31, 2011, among
the Company, Citibank N.A., as Administrative Agent, and the other financial institutions listed
therein.

 

EXHIBIT D-1C

FORM OF OPINION OF A&L GOODBODY

[SEE ATTACHED]

Term Loan Credit Agreement

D-1C-1

 

A&L Goodbody Solicitors International Financial Services Centre North Wall Quay Dublin 1

Tel: +353 1 649 2000   Fax: +353 1 649 2649 email: info@algoodbody.com  website:
www.algoodbody.com  dx: 29 Dublin

our ref | CD 01373175
                                        your ref |                                         date |
30 March 2011

CLOSING OPINION

The addressees outlined in the Schedule hereto (the Addressees)

Dear Sirs,

We have acted on behalf of International Lease Finance Corporation (ILFC) which has requested us to
give you this opinion in connection with a credit agreement dated as of March 30 2011 (the Credit
Agreement) between Temescal Aircraft Inc. as borrower (the Borrower), ILFC, Park Topanga Aircraft
Inc., Charmlee Aircraft Inc and Ballysky Aircraft Ireland Limited (the Company) as obligors, the
lenders identified therein as lenders, Citibank, N.A. (the Collateral Agent) as administrative
agent and collateral agent, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC as
joint lead structuring agents and joint lead placement agents and BNP Paribas as joint placement
agent (the Transaction).

	1.	 	We have examined copies of

	 	1.1.	 	the Credit Agreement;
	 
	 	1.2.	 	the Security Agreement dated as of March 30 2011 among the Borrower, Park
Topanga Aircraft Inc. Charmlee Aircraft Inc., the Company and the additional grantors
referred to therein as grantors and the Collateral Agent as collateral agent (as
amended, supplemented or otherwise modified from time to time prior to the date
hereof, the Security Agreement);
	 
	 	1.3.	 	the Intercreditor Agreement dated as of March 30 2011 among the Borrower,
ILFC, Park Topanga Aircraft Inc., Charmlee Aircraft Inc., the Company and the
Collateral Agent (the Intercreditor Agreement and, together with the Credit Agreement
and the Security Agreement, the New York Law Agreements); and
	 
	 	1.4.	 	the Share Charge dated as of March 30 2011 between the Borrower as chargor
and the Collateral Agent as chargee in respect of shares in the Company (the Share
Charge and, together with the New York Law Agreement, the Agreements);
	 
	 	1.5.	 	a corporate certificate of the Company dated 30 March 2011 (the Certificate)
attaching:  

	 	1.5.1.	 	copies of the certificate of incorporation and memorandum and articles
of association of the Company;
	 
	 	1.5.2.	 	list of directors and secretary of the Company;
	 
	 	1.5.3.	 	a copy of the resolutions passed at the meeting of the board of directors of
the Company dated 28 March 2011;

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Dublin

	 	Belfast
	 	London
	 	Boston
	 	New York	 	 	 	 	 	 	 	 	 	 	 	 
	S.C. Hamilton

	 	C.E. Gill
	 	V.J. Power
	 	P.V. Maher
	 	E. MacNeill
	 	N. O’Sullivan
	 	S.O’Croinin
	 	J.B. Somerville
	 	C. Widger
	 	J. Cahir
	 	A. J. Johnston
	R.B. Buckley

	 	E.M. Fitzgerald
	 	L.A. Kennedy
	 	S. O’Riordan
	 	K.P. Allen
	 	M.J. Ward
	 	J.W. Yarr
	 	M.F. Barr
	 	M. Dale
	 	M. Traynor
	 	M. Rasdale
	P.M. Law

	 	B.M. Cotter
	 	S.M. Doggett
	 	M.P.McKenna
	 	E.A. Roberts
	 	A.C. Burke
	 	D.R. Baxter
	 	M.L. Stack
	 	N. Coyne
	 	P.M. Murray	 	 
	P.J. Carroll

	 	J.G. Grennan
	 	B.McDermott
	 	K.A. Feeney
	 	C. Rogers
	 	J. Given
	 	A.McCarthy
	 	B.Walsh
	 	C. McCourt
	 	N. Ryan	 	 
	J.H. Hickson

	 	J.Coman
	 	C. Duffy
	 	M.Sherlock
	 	G. O’Toole
	 	D. Widger
	 	J.F. Whelan
	 	A.M.Curran
	 	R.M. Moore
	 	K. Furlong	 	 
	M.F. O’Gorman

	 	P.D. White
	 	E.M. Brady
	 	E.P. Conlon
	 	J.N. Kelly
	 	C. Christle
	 	D.R. Conlon
	 	A. Roberts
	 	D. Main
	 	P.T. Fahy	 	 

Consultants: J.R. Osborne S.W Haughey T.V. O’Connor Professor J.C.W. Wylie A.F. Browne
M.A. Greene A.V. Fanagan J.A. O’Farrell I.B.Moore

	 	1.5.4.	 	a copy of the power of attorney of the Company dated 28 March 2011; and

1

 

	 	1.5.5.	 	a copy of the specimen signatures;

	 	 	and such other documents as we have considered necessary or desirable to examine in order
that we may give this opinion.
	 
	 	 	Terms defined in the Credit Agreement have the same meaning in this opinion letter.

	2.	 	For the purpose of giving this opinion we have assumed:

	 	2.1.	 	the authenticity of all documents submitted to us as originals and the
completeness and conformity to the originals of all copies of documents of any kind
furnished to us;
	 
	 	2.2.	 	that the copies produced to us of minutes of meetings and/or of resolutions
are true copies and correctly record the proceedings of such meetings and/or the
subject-matter which they purport to record and that any meetings referred to in such
copies were duly convened and held and that all resolutions set out in such minutes
were duly passed and are in full force and effect;
	 
	 	2.3.	 	the genuineness of the signatures and seals on all original and copy
documents which we have examined;
	 
	 	2.4.	 	that the memorandum and articles of association of the Company attached to
the Certificate are correct and up to date;
	 
	 	2.5.	 	the accuracy and completeness as to factual matters of the representations,
warranties and certificates of the Company contained in the Certificate and the
accuracy of all certificates provided to us by the Company;
	 
	 	2.6.	 	that there are no agreements or arrangements in existence which in any way
amend or vary the terms of the Transaction as disclosed by the Share Charge;
	 
	 	2.7.	 	without having made any investigation that the terms of the New York Law
Agreements are lawful and fully enforceable under the laws of the State of New York
and any other applicable laws other than the laws of Ireland and that the Security
Agreement creates valid and enforceable security interests in accordance with its
terms under the laws of the State of New York;
	 
	 	2.8.	 	without having made any investigation, that the Borrower is the legal and
beneficial owner free from encumbrances of all right, title and interest in and to the
Charged Property (as defined in the Share Charge) and that it has delivered, or will
deliver, to the Collateral Agent each of the documents listed in Clause 3.2 of the
Share Charge;
	 
	 	2.9.	 	the accuracy and completeness of all information appearing on public records;
and
	 
	 	2.10.	 	that the Company has entered into the Transaction in good faith, for its
legitimate business purposes, for good consideration, and that it derives commercial
benefit from the Transaction commensurate with the risks undertaken by it in the
Transactions.

	3.	 	We express no opinion as to any matters falling to be determined other than under the laws of
Ireland and, without reference to provisions of other laws imported by Irish private
international law, in Ireland as of the date of this letter. Subject to that qualification and
to the other qualifications set out herein, we are of the opinion that:

2

 

	 	3.1.	 	the Company is a company duly incorporated under the laws of Ireland and is a
separate legal entity, subject to suit in its own name. Based only on searches
carried out in the Irish Companies Registration Office and the Central Office of the
High Court on the date hereof, the Company is validly existing under the laws of
Ireland and no steps have been taken or are being taken to appoint a receiver,
examiner or liquidator over it or to wind it up;
	 
	 	3.2.	 	the Company has the necessary power and authority, and all necessary
corporate and other action has been taken, to enable it to execute, deliver and
perform the obligations undertaken by it under the Agreements to which it is a party,
and the implementation by the Company of the foregoing will not cause:

	 	3.2.1.	 	any limit on it or on its directors (whether imposed by the documents
constituting the Company or by statute or regulation) to be exceeded; or
	 
	 	3.2.2.	 	any law or order to be contravened;

	 	3.3.	 	each of the Agreements to which it is a party has been duly executed on
behalf of the Company;
	 
	 	3.4.	 	the obligations on the part of the Borrower under the Share Charge are valid
and legally binding on and are in a form capable of enforcement against the Borrower
under the laws of Ireland in the courts of Ireland, in accordance with their terms;
	 
	 	3.5.	 	no authorisations, approvals, licences, exemptions or consents of
governmental or regulatory authorities with respect to the Agreements are required to
be obtained in Ireland;
	 
	 	3.6.	 	under the laws of Ireland in force at the date hereof, the claims of the
Collateral Agent against the Company under the Agreements will rank at least pari
passu with the claims of all other unsecured creditors, except claims which rank at
law as preferential claims in a winding up, examinership or receivership;
	 
	 	3.7.	 	it is not necessary or advisable under the laws of Ireland in order to ensure
the legality, validity, enforceability or priority of the obligations or rights of any
party to the Agreements, or the perfection or priority of any security interest
created under the Agreements, that the Agreements be filed, registered, recorded, or
notarised in any public office or elsewhere or that any other instrument relating
thereto be signed, delivered, filed, registered or recorded other than the requirement
to file particulars of the charges created pursuant to the Security Agreement and the
Share Charge with the Irish Registrar of Companies within 21 days of their execution
(in this regard, we have been instructed to, and will, make the requisite filings);
	 
	 	3.8.	 	the Company is not entitled to claim any immunity from suit, execution,
attachment or other legal process in Ireland;
	 
	 	3.9.	 	in any proceedings taken in Ireland for the enforcement of the New York Law
Agreements, the choice of the law of the State of New York as the governing law of the
contractual rights and obligations of the parties under the New York Law Agreements
would be upheld by the Irish Courts in accordance with and subject to the provisions
of the Rome I Regulation EC No 593/2008 on the Law Applicable to

3

 

	 		 	Contractual
Obligations;
	 
	 	3.10.	 	in any proceedings taken in Ireland for the enforcement of a judgment
obtained against the Company in the courts of New York (a Foreign Judgment) the
Foreign Judgment should be recognised and enforced by the courts of Ireland save that
to enforce such a Foreign Judgment in Ireland it would be necessary to obtain an order
of the Irish courts. Such order should be granted on proper proof of the Foreign
Judgment without any re-trial or examination of the merits of the case subject to the
following qualifications:

	 	3.10.1.	 	that the foreign court had jurisdiction, according to the laws of Ireland;
	 
	 	3.10.2.	 	that the Foreign Judgment was not obtained by fraud;
	 
	 	3.10.3.	 	that the Foreign Judgment is not contrary to public policy or natural
justice as understood in Irish law;
	 
	 	3.10.4.	 	that the Foreign Judgment is final and conclusive;
	 
	 	3.10.5.	 	that the Foreign Judgment is for a definite sum of money; and
	 
	 	3.10.6.	 	that the procedural rules of the court giving the Foreign Judgment have
been observed.

	 	 	 	Any such order of the Irish courts may be expressed in a currency other than euro
in respect of the amount due and payable by the Company but such order may be
issued out of the Central Office of the Irish High Court expressed in euro by
reference to the official rate of exchange prevailing on the date of issue of such
order. However, in the event of a winding up of the Company, amounts claimed by or
against the Company in a currency other than the euro (the Foreign Currency) would,
to the extent properly payable in the winding up, be paid if not in the Foreign
Currency in the euro equivalent of the amount due in the Foreign Currency converted
at the rate of exchange pertaining on the date of the commencement of such winding
up;

	 	3.11.	 	it is not necessary under the laws of Ireland (a) in order to enable the
Collateral Agent to enforce its rights under the Agreements or (b) by reason of the
execution of the Agreements, that the Collateral Agent should be licensed, qualified
or otherwise entitled to carry on business in Ireland;
	 
	 	3.12.	 	the Agreements will not be liable to any ad valorem tax or duty,
registration tax, stamp duty or any similar tax or duty imposed by a competent
authority of or within Ireland;
	 
	 	3.13.	 	by reason only of the execution, delivery and performance of the Agreements
by the Collateral Agent, it shall not be deemed to be resident, domiciled or carrying
on a trade or business in Ireland;
	 
	 	3.14.	 	there is no applicable usury or interest limitation law in Ireland which
would restrict the recovery of payments in accordance with the Agreements; and
 
	 
	 	3.15.	 	
the Irish Courts will generally recognise the security interests created by
the 

4

 

	 	 	 	Company pursuant to the Security Agreement in accordance with its terms, provided
that such interests or their enforcement are not illegal or contrary to public policy
as a matter of Irish law, that all Irish law formalities with regard to security
interests and their enforcement have been complied with and that the party creating
the security has absolute title, free from encumbrances and other third party rights,
to such assets.

	4.	 	The opinions set forth in this opinion letter are given subject to the following
qualifications

	 	4.1.	 	an order of specific performance or any other equitable remedy is a
discretionary remedy and is not available when damages are considered to be an
adequate remedy;
	 
	 	4.2.	 	this opinion is given subject to general provisions of Irish law relating to
insolvency, bankruptcy, liquidation, reorganisation, receivership, moratoria, court
scheme of arrangement, administration and examination, and the fraudulent preference
of creditors and other Irish law generally affecting the rights of creditors;
	 
	 	4.3.	 	this opinion is subject to the general laws relating to the limitation of
actions in Ireland;
	 
	 	4.4.	 	a determination, description, calculation, opinion or certificate of any
person as to any matter provided for in the Share Charge might be held by the Irish
courts not to be final, conclusive or binding if it could be shown to have an
unreasonable, incorrect, or arbitrary basis or not to have been made in good faith;
	 
	 	4.5.	 	additional interest imposed by any clause of the Share Charge might be held
to constitute a penalty and the provisions of that clause imposing additional interest
would thus be held to be void. The fact that such provisions are held to be void would
not in itself prejudice the legality and enforceability of any other provisions of the
Share Charge but could restrict the amount recoverable by way of interest under the
Share Charge;
	 
	 	4.6.	 	claims may be or become subject to defences of set-off or counter-claim;
	 
	 	4.7.	 	an Irish court has power to stay an action where it is shown that there is
some other forum having competent jurisdiction which is more appropriate for the trial
of the action, in which the case can be tried more suitably for the interests of all
the parties and the ends of justice, and where staying the action is not inconsistent
with Council Regulation 2001/44/EC on Jurisdiction and the Enforcement of Judgments;
	 
	 	4.8.	 	there is some possibility that depending on the actual course of dealing
between the parties to the Share Charge, the fixed charges contained in the Share
Charge may not be construed as fixed charges but as floating charges and so become
subject to prior claims of certain statutory preferential creditors;
	 
	 	4.9.	 	the enforceability of severance clauses is at the discretion of the court and
may not be enforceable in all circumstances;
	 
	 	4.10.	 	a waiver of all defences to any proceedings may not be enforceable;
	 
	 	4.11.	 	provisions in the Share Charge providing for indemnification resulting from
loss suffered on conversion of the amount of a claim made in a foreign currency into
euro in a liquidation may not be enforceable;

5

 

	 	4.12.	 	we express no opinion as to the priority of any of the security created by
the
Share Charge or whether the property or assets comprised in such security is owned
by relevant chargor thereunder, or whether such property or assets is or are now or
may become subject to any equities or subject to any rights or interests of any
other
person ranking in priority to or free of such security or whether they could be
transferred to any other person free of any such security;
	 
	 	4.13.	 	in the event of the Borrower seeking to dispose of the shares which are the
subject of the security created pursuant to the Share Charge, an application for a
clearance from the Competition Authority pursuant to the Competition Acts 2002 and
2006 may have to be made;
	 
	 	4.14.	 	we express no opinion on any taxation matters other than as expressly set
out in paragraph 3.12 or on the contractual terms of the relevant documents other than
by reference to the legal character thereof.

	 	 	This opinion is addressed only to the Addressees and may be relied upon only by each such Addressee
for its sole benefit in connection with the Transaction and may not be relied on by any assignees
of any such persons or any other person.

	 	 	Yours faithfully,

6

 

SCHEDULE

The Addressees

Citibank, N.A., as administrative agent

on behalf of the Lenders at the date hereof

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Citibank, N.A., as collateral agent

on behalf of the Lenders at the date hereof

388 Greenwich Street, 14th Floor

New York, NY 10013

Citigroup Global Markets Inc., as joint lead agent

390 Greenwich Street, 1st Floor

New York, NY 10013

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 5th Floor

New York, NY 10010

BNP Paribas

Aviation Finance Group

520 Madison Avenue

3rd Floor

New York, NY 10022

Attn: Robert Papas/Stephanie Klein

Each Lender party to the Credit Agreement on the date hereof

7

 

EXHIBIT E-1A

FORM OF OPINION OF WHITE & CASE LLP,

COUNSEL TO THE RELEVANT ADVANCE PARTIES

[SEE ATTACHED]

Term Loan Credit Agreement

E-1A-1

 

 [

To the Addressees Listed on Schedule 1

                    , 2011

	 	Re: 	 	 One [                    ] Aircraft bearing manufacturer’s serial number [                    ] and [Two]
[                    ] Engines bearing manufacturer’s serial numbers [                    ] and [                    ],
respectively (the “Aircraft”)

Ladies and Gentlemen:

We have acted as New York counsel to International Lease Finance Corporation (the “Company”) and
the other Obligors as defined below in connection with the Term Loan Credit Agreement (the “Credit
Agreement”) dated as of                     , 2011 among Temescal Aircraft Inc., a California corporation,
as Borrower (the “Borrower”), the Company, Park Topanga Aircraft Inc., a California corporation
(the “Parent Holdco”), Charmlee Aircraft Inc., a California corporation (the “CA Subsidiary
Holdco”), Ballysky Aircraft Ireland Limited, a private limited liability company incorporated under
the laws of Ireland (the “Irish Subsidiary Holdco”), the Lenders party thereto, Citibank, N.A., as
Administrative Agent and Collateral Agent (the “Collateral Agent”), Citigroup Global Markets Inc.
and Credit Suisse Securities (USA) LLC, as Joint Lead Structuring Agents and Joint Lead Placement
Agents, and BNP Paribas, as the Joint Placement Agent.

Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in
the Credit Agreement. This opinion is delivered pursuant to Section 4.02(d) of the Credit
Agreement in connection with the Advance in respect of the Aircraft.

In rendering the opinions expressed below, we have examined executed copies of the following
documents:

[(a) Grantor Supplement dated ____________, 20[_] between ____________ (“Aircraft Owner”)
and the Collateral Agent [list each additional Grantor Supplement in a separate paragraphs]
([the grantor supplements listed in paragraphs [________],] the “Grantor Supplement[s]”);]

 

 

[(b) Collateral Supplement dated                     , 20[_] between                      and the Collateral
Agent [list each additional Collateral Supplement in a separate paragraph] ([the collateral
supplements listed in paragraphs [__],] the “Collateral Supplement[s]”);]

[(c) Obligor Assumption Agreement dated as of                     , 20[_] between                      and
the Administrative Agent [list each additional Obligor Assumption Agreement in an additional
paragraph] ([the obligor assumption agreements listed in paragraphs [___],] the “Obligor
Assumption Agreement”);]

(d) the Credit Agreement; and

(e) the Aircraft Mortgage and Security Agreement dated as of                     , 2011, among the
Parent Holdco, the Borrower, the CA Subsidiary Holdco, the Irish Subsidiary Holdco, the
additional grantors party thereto, including the Subject Obligors (as hereafter defined),
and the Collateral Agent as amended and supplemented by the Grantor Supplement[s], the
Collateral Supplements[s] and the grantor supplements and collateral supplements referred to
in our opinion letters delivered pursuant to Section 4.02(d) of the Credit Agreement on or
before the date of this opinion (the “Security Agreement”).

[[[Each of]                     ] is referred to herein as a “CA Subject Obligor”.]
 [[[Each of]                    ] is
referred to herein as an “Irish Subject Obligor”.] [[[Each of]                     ] is referred to herein as
a “Trust Subject Obligor”.] Each of the [CA Subject Obligors, the Irish Subject Obligors and the
Trust Subject Obligors] is referred to herein as a “Subject Obligor”. Each of the Company, the
Parent Holdco, the Borrower, the CA Subsidiary Holdco and the Irish Subsidiary Holdco and the
Subject Obligors is referred to herein as an “Obligor”. Each of the Company, the Parent Holdco,
the Borrower, the CA Subsidiary Holdco and each of the CA Subject Obligors is referred to herein as
a “CA Obligor”. Each of the Grantor Supplement[s], the Collateral Supplement[s] and the Obligor
Assumption Agreement is referred to herein as an “Opinion Document”, and the Opinion Documents, the
Credit Agreement and the Security Agreement are referred to herein as “Transaction Documents”. The
Collateral described in the Grantor Supplements and the Collateral Supplement[s] is the
“Collateral” as such term is used herein.

We have also examined and relied upon such records and statements and certificates of public
officials and representatives and officers of the Obligors and other persons as we have deemed
necessary as a basis for the opinions expressed below. As to factual matters relevant to our
opinions expressed below, we have, without independent investigation, relied upon the foregoing and
the representations and warranties made in or pursuant to the Transaction Documents. We have not
reviewed the dockets or other records of any court, arbitrator or governmental or

- 2 -

 

regulatory body or agency or conducted any other investigation or inquiry or otherwise established
or verified any factual matter.

In such examination, we have assumed the legal capacity of all natural persons, the genuineness of
all signatures, the authenticity of all documents submitted to us as originals, the conformity with
the originals of all documents submitted to us as certified or photostatic copies and the
authenticity of the originals of such copies.

We have assumed that (i) the information contained in the priority search certificates
(collectively, the “Priority Search Certificates”) identifying the Airframe and Engines as listed
in, and attached as, Exhibit I to this opinion letter is accurate in all respects, (ii) the
information in the International Registry has not been altered since the date of such Priority
Search Certificates, (iii) each Priority Search Certificate contains all registered information and
data on the International Registry in connection with the aircraft object to which it relates and
(iv) the term “Obligations” (as used in the definition of “Secured Obligations” (as defined in the
Security Agreement)) is able to be determined such that the Secured Obligations are able to be
determined, but without the need to state a sum or maximum sum secured.

Except as expressly opined on by us below, we have assumed, without investigation: (i) the due
organization, valid existence and, to the extent applicable, good standing of each party to the
Transaction Documents; (ii) that each party to the Transaction Documents has requisite power and
authority to execute, deliver and perform its obligations under the Transaction Documents to which
it is a party; (iii) that each Transaction Document has been duly authorized, executed and
delivered by each party thereto; (iv) that each Transaction Document constitutes a valid, binding
and enforceable obligation of each party thereto; (v) that the execution, delivery and performance
by each party of the Transaction Documents to which it is a party do not contravene such party’s
constitutional documents, violate any law, rule or regulation applicable to such party or result in
any conflict with or breach of any agreement or instrument to which such party is a party or by
which such party is bound; (vi) that each party to the Transaction Documents has obtained or made
all consents, approvals, authorizations, filings, registrations, qualifications or recordations
with each Governmental Authority required in connection with the execution, delivery and
performance of the Transaction Documents; (vii) [for purposes of the Uniform Commercial Code of the
State of New York (the “NYUCC”), Irish Subsidiary Holdco [and each Irish Subject Obligor] is deemed
located in Washington, D.C.;]1 (viii) all applicable filings, registrations,
recordations or other actions necessary to perfect as to ownership or security interest (except as
set forth herein) including under the Cape Town Convention have been made; and (ix) the

 

			
	1	 	Include if Irish Subsidiary Holdco executes a Collateral Supplement or if there is an Irish Subject Obligor.

- 3 -

 

accuracy and completeness as of the date hereof of the certificates and other information and
statements delivered or made to us by representatives and officers of each Obligor.

We have made no investigation or review of any matters relating to the Obligors or any other person
or entity other than as expressly described herein. Further, we have made no special investigation
of the business operations of the Obligors or any other person or entity for the purpose of
identifying laws or regulations to which the Obligors or any other person or entity are subject.
With reference particularly to our opinion in paragraph 3 below, we note that our representation of
the Obligors is limited to this and similar transactions and that we are not generally familiar
with their respective affairs or operations.

We have also assumed that:

          (i) any conditions to the effectiveness of the Transaction Documents have been
satisfied or waived;

          (ii) the Collateral subject to the Lien of the Security Agreement exists, each
applicable Obligor has rights in the applicable Collateral and has the power to transfer its
respective rights in the applicable Collateral, and the Aircraft Owner has the “power to dispose”
of the Airframe and applicable Engines under the Security Agreement within the meaning of the Cape
Town Convention;

          (iii) the descriptions of the Collateral contained in, or attached as schedules to,
the Grantor Supplement[s] and the Collateral Supplement[s] sufficiently describe the Collateral
intended to be covered thereby;

          (iv) for purposes of the Cape Town Convention, the Aircraft Owner is “situated” in
the United States as such term is used in Articles 3 and 4 of the Cape Town Convention;

          (v) [the [Aircraft Lease Agreement dated [                    ] between the Company and
[                    ] (“Lessee”) as novated and amended by the Novation and Amendment Agreement dated
[                    ] among the Company, Aircraft Owner and Lessee (the “Lease”) is effective to provide
for an International Interest;]2

          (vi) the loans and the transactions contemplated by the Opinion Documents meet the
minimum amount required under Sections 5-501 and 5-1401 of the New York General Obligations Law;
and

          (vii) since the original execution and delivery thereof, no Transaction Document has
been amended, restated, modified, supplemented or terminated and no rights pursuant thereto have
been released, waived, or modified either expressly or by any action or inaction of the parties
thereto, except (x) in the case of the Security Agreement, as set forth in

 

			
	2	 	Include if there is a registration on the International Registry in respect of the Lease.

- 4 -

 

paragraph (e) above, and (y) in the case of the Credit Agreement as set forth in [____________
and in] obligor assumption agreements referred to in our opinion letters delivered on or before the
date hereof pursuant to Section 4.02(d) of the Credit Agreement, and each Transaction Document
continues to be in full force and effect.

Based upon the foregoing and subject to the qualifications and limitations set forth below, we are
of the opinion that:

     1. Each Opinion Document to which an Obligor is a party is a valid and binding
obligation of such Obligor, enforceable against such Obligor in accordance with its terms.

     2. The execution and delivery by each Obligor of each Opinion Document to which it
is a party do not, and the performance by such Obligor of its obligations thereunder will not,
cause such Obligor to violate any Generally Applicable Law (as defined below).

     3. No consent, approval or authorization of, and no filing, registration,
qualification or recordation with, United States federal or State of New York governmental
authorities pursuant to any Generally Applicable Law is required in connection with the execution,
delivery and performance by any Obligor of the Opinion Documents to which it is a party, other than
(a) those that are specified in the Transaction Documents, (b) filings necessary to create, record,
perfect or maintain the security interests created by the Opinion Documents, (c) those that have
been duly obtained, taken or made and (d) in the case of Collateral constituting securities, as may
be required in connection with any disposition of such Collateral.

     4. The Security Agreement is effective to create in favor of the Collateral Agent as
security for the Secured Obligations a security interest in the Collateral in which a security
interest therein may be created under Article 9 of the NYUCC (the “Article 9 Collateral”).

     5. Each Uniform Commercial Code financing statement a copy of which is attached as
Schedule 2 hereto (“Financing Statement”) to be filed in the appropriate filing office in
[California] is in appropriate form for filing in such office.3
4

     6. Upon the due filing of the Financing Statement[s] with the appropriate filing
office in the [State of California/District of Columbia/the State of New York], together with the
payment of the applicable filing fees, the Collateral Agent will have a perfected security interest
in that portion of the Article 9 Collateral described therein in which a security interest is
perfected by filing a financing statement under Article 9 of the [CALUCC/DCUCC/NYUCC].

     7. To the extent that the creation of security interests in the Collateral is
governed by the NYUCC, perfection of such security interests in such Collateral consisting of
general intangibles, tangible chattel paper, accounts, equipment and other goods not covered by a

 

			
	3	 	Opinions as to the perfection of security interests in Collateral granted by Trust Subject Obligors will be provided by counsel to the Trustee, not W&C .
	 
	4	 	Repeat as needed for DC or New York filings.

- 5 -

 

certificate of title in which a security interest can be perfected under the NYUCC is
governed, under Section 9-301 of the NYUCC, by the local laws of the jurisdiction where the
applicable grantor is located, except that perfection of a possessory security interest in such
Collateral is governed, under Section 9-301 of the NYUCC, by the local laws of the jurisdiction of
the location of such Collateral.

     8. To the extent that the Pledged Equity listed in the Collateral Supplement[s] [and
the Grantor Supplement[s]] (the “Subject Pledged Equity”) constitutes Article 9 Collateral and
consists of “certificated securities” (as defined in Section 8-102(a) of the NYUCC) and the Pledged
Debt listed in the Collateral Supplement[s] [and the Grantor Supplement[s] (the “Subject Pledged
Debt”) constitutes Article 9 Collateral and consists of “instruments” (as defined in Section
9-102(a) of the NYUCC), the security interest of the Collateral Agent in the Subject Pledged Equity
and the Subject Pledged Debt will be a perfected security interest under Section 9-313(a) of the
NYUCC (i) in such Subject Pledged Equity, upon delivery (within the meaning of Section 8-301 of the
NYUCC) in the State of New York to the Collateral Agent of the certificates representing such
Subject Pledged Equity and (ii) in such Subject Pledged Debt, upon the Collateral Agent taking
possession in the State of New York of such instruments representing such Subject Pledged Debt, and
such security interest will in each case remain perfected for so long as such certificates and
instruments, as the case may be, are held by the Collateral Agent in the State of New York.

     9. [The Security Agreement is effective to constitute, under the Cape Town
Convention, an International Interest with respect to the Airframe and Engines identified in the
Priority Search Certificates.

     10. [The Security Agreement is effective as an “assignment” (as defined in the Cape
Town Convention) of International Interest provided for by the Lease.]5

     11. Upon the registration of [(i) the “assignment” of the International Interest
provided for by the Lease, and (ii)]6 the International Interest in the
Airframe and each of Engines created by the Security Agreement, in each case, becoming searchable
on the International Registry, no further registration is required under the Cape Town Convention
in order to maintain the effectiveness of such interests of Security Trustee.]7

     12. [The Security Agreement constitutes a Security Agreement, as defined in the Cape
Town Convention]8

 

			
	5	 	Include if there is a registration in the International Registry in respect of the Lease,
	 
	6	 	Include if there is a registration in the International Registry in respect of the Lease.
	 
	7	 	Include Opinions 9, 10 and 11 only if Aircraft Owner is organized under the laws of the United States or a state thereof.
	 
	8	 	Include this opinion only if the Aircraft Owners organized under the laws of Ireland or elsewhere outside the United States.

- 6 -

 

As used herein, “Generally Applicable Law” means any New York or federal law otherwise
included within the scope of this opinion that a New York lawyer exercising customary professional
diligence would reasonably be expected to recognize as being currently applicable to the Obligors,
the Transaction Documents or the transactions contemplated thereby, including the grants of the
security interests, excluding any law that is applicable to the Obligors, the Transaction Documents
or the transactions contemplated thereby, including the grants of the security interests, solely
because of the specific assets or business of any party to any of the Transaction Documents or any
of its affiliates. In particular, but without limitation, we express no opinion upon the
application or effect of (1) securities laws or regulations, including Regulations T, U and X of
the Board of Governors of the Federal Reserve System; (2) antitrust or unfair competition laws or
regulations, including the Hart-Scott-Rodino Antitrust Improvements Act of 1986, as amended; (3)
banking, insurance or tax laws or regulations; (4) public utility laws or regulations; (5)
environmental, health and safety, or labor laws or regulations; (6) patent, copyright, trademark or
other intellectual property laws or regulations; (7) pension or employee benefit laws or
regulations, including the Employee Retirement Security Income Security Act of 1974, as amended,
and regulations issued thereunder; (8) laws, regulations or policies relating to national or local
emergencies; (9) statutes, ordinances, administrative decisions, rules or regulations of counties,
towns, municipalities or special political subdivisions (whether created or enabled through
legislative action at the federal, state or regional level); (10) the Foreign Corrupt Practices
Act, the Exon-Florio Amendment to the Defense Production Act of 1952, the USA PATRIOT Act (Title
III of Public L. 107-56) or other anti-money laundering laws and regulations, the Trading with the
Enemy Act or regulations issued thereunder, including the Foreign Assets Control Regulations, the
International Emergency Economic Powers Act or the Comprehensive Iran Sanctions, Accountability and
Divestment Act of 2010; (11) any United States Executive Orders, including the September 24, 2001,
Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to
Commit or support Terrorism; (12) except as expressly covered by paragraphs 7 and 8 Title 49,
United States Code, “Transportation” or any laws or treaties relating to aircraft or airlines; (13)
the Dodd-Frank Wall Street Reform and Consumer Protection Act; and (14) any other laws to the
extent not customarily applicable to transactions of the type contemplated by the Transaction
Documents or (15) judicial decisions to the extent that they deal with any of the foregoing.

Our opinions set forth above are subject to the following qualifications and limitations:

     (a) Our opinion set forth in paragraph 1 above is subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting the enforcement of creditors’ rights and general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at

- 7 -

 

law, and including, without limitation, principles relating to materiality, good faith
and fair dealing, reasonableness, unconscionability and availability of equitable remedies).

     (b) We express no opinion on the effect of the Cape Town Convention or the
Convention on the International Recognition of Rights in Aircraft signed at Geneva on June
19, 1948 except as expressly provided in paragraphs 9[, 10 and 11]9
above. We have reviewed and considered such research materials as are available with
respect thereto, but call to your attention the absence of any applicable case law
concerning the Cape Town Convention.

     (c) We express no opinion as to any provision of a Transaction Document that
provides the terms thereof may not be waived or modified except in writing, which may be
limited under certain circumstances.

     (d) We express no opinion as to any provision in a Transaction Document
asserting that the partial invalidity of one or more provisions thereof shall not invalidate
the remaining provisions thereof.

     (e) We express no opinion with respect to any indemnification or
reimbursement obligation or limitation on liability contained in a Transaction Document,
insofar as such provision provides exculpation or exemption from, or requires
indemnification or reimbursement of a party for, its own action or inaction, where such
action or inaction involves such party’s gross negligence, recklessness or willful or
unlawful misconduct or to the extent any such provision is contrary to public policy or
violative of or rendered unenforceable by applicable law.

     (f) Certain of the remedial or procedural provisions of a Transaction
Document may be further limited or rendered unenforceable by applicable law, but, subject to
the other qualifications set forth herein and except for the economic consequences of any
delay that might arise from such limitation on enforceability, in our opinion such law does
not make the remedies afforded by such Opinion Document inadequate for the practical
realization of the principal benefits intended to be provided thereby.

     (g) We express no opinion as to (i) the subject matter jurisdiction of any
United States federal court, or (ii) whether a United States federal court will give effect
to (x) the waiver of any objection to the laying of venue and of any claim of forum non
conveniens or (y) the forum selection provisions contained in any Opinion Document, and we
note that the designation in the Transaction Documents of the United States federal courts
sitting in the County of New York as the venue for actions or proceedings under the
Transaction Documents is subject to the power of such courts to transfer such actions and
proceedings pursuant to 28 U.S.C. §1404(a) or to dismiss such actions and proceedings on the
ground that such federal court is an inconvenient forum for such actions or proceedings.

 

			
	9	 	Include only if Aircraft Owner is organized under the laws of the United States or a state thereof.

- 8 -

 

     (h) We express no opinion as to title to any property or whether a United
States federal court or state court outside of the State of New York would give effect to
the choice of New York law provided for in a Transaction Document. Our opinion as to the
legality, validity, binding effect and enforceability of the governing law provisions of
each Transaction Document is based solely on Section 5-1401 of the New York General
Obligations Law. Our opinion as to the legality, validity, binding effect and
enforceability of the provisions of each Transaction Document in respect of the submission
to the jurisdiction of the courts of the State of New York is based solely on Section 5-1402
of the New York General Obligations Law. The choice of New York law does not apply to the
extent provided to the contrary in subsection two of Section 1-105 of the NYUCC and the
application of New York law, pursuant to the New York General Obligations Law, to a
transaction that has no contact or only insignificant contact with New York State may raise
constitutional issues.

     (i) We express no opinion (i), except as expressly set forth herein, as to
the creation, perfection or priority of any lien, pledge or security interest or (ii) as to
any security interest purported to be granted in any “as-extracted collateral”, “commercial
tort claim”, “cooperative interest”, “electronic chattel paper”, “fixtures”, or
“letter-of-credit right”, each as defined in Section 9-102(a) of the NYUCC, or intellectual
property.

     (j) We express no opinion as to (i) any provision of any of the Transaction
Documents that appoints or purports to appoint attorneys-in-fact or other representatives or
confers powers of attorney or grants similar authorizations or powers or that provides that
a determination by any party will be conclusive and binding on any other parties, (ii) any
provisions of the Transaction Documents providing for forfeitures or the recovery of, or
securing, amounts deemed to constitute penalties, or for or in the nature of liquidated
damages, acceleration of future amounts due (other than principal) without appropriate
discount to present value, late charges and prepayment charges, (iii) any provisions that
constitute a waiver of illegality or of rights and duties which cannot, as a matter of law,
be effectively waived, (iv) any rights of setoff provided in the Transaction Documents, (v)
any provision that refers to, incorporates or is based upon the law of any jurisdiction
other than the States of California or New York the District of Columbia or the United
States. We also express no opinion as to the effect on the obligations of the Subject
Obligors under the Opinion Documents of (i) any modification to or amendment of the Opinion
Documents that materially increases or modifies the obligations of the Subject Obligors
under the Opinion Documents or (ii) any other action by any person that materially
prejudices the Subject Obligors under the Opinion Documents, if, in any such instance, such
modification, amendment or action occurs without the consent of the Subject Obligors.

     (k) We express no opinion as to any provision of any Transaction Documents
that purports to waive or exclude the rights of any person to commence any bankruptcy,
reorganization, insolvency or similar proceeding or purports to waive notice of
acceleration.

     (l) We express no opinion as to the effect of (i) the compliance or
non-compliance of any Obligor, the Collateral Agent or any other person or entity with any

- 9 -

 

state or federal laws or regulations applicable to such party because of its legal or
regulatory status or the nature of its business or (ii) the failure of any person or entity
to be duly authorized to conduct business in any jurisdiction.

     (m) We also express no opinion as to the applicability to, or effect on, the
obligations of any Obligor under any Transaction Document of Section 547 or 548 of the
United States Bankruptcy Code, 11 U.S.C. Sections 101 et seq. (as amended from time to time,
the “Bankruptcy Code”) or Article 10 of the New York Debtor and Creditor Law or any other
New York or United States federal law relating to preferences or fraudulent transfers and
obligations. We note the effect of New York law and court decisions which provide that
certain suretyship rights and defenses are available to a party that encumbers its property
to secure the obligations of another.

     (n) We call to your attention that a security interest of the Collateral
Agent in any Collateral constituting “payment intangibles”, “general intangibles” or
“accounts” (as such terms are defined in Article 9 of the NYUCC) may be subject to the
rights, claims and defenses of account debtors and the terms of agreements with account
debtors. In the case of any Collateral which is itself secured by other property, we
express no opinion with respect to the Collateral Agent’s rights in and to such underlying
property.

     (o) Our opinion set forth in paragraphs 4 and 6 above is subject to the
further qualification that: (i) in the case of proceeds, the Collateral Agent’s security
interest is limited as provided in Sections 9-315 and 9-322 of the NYUCC; and (ii) Section
552 of the Bankruptcy Code limits (subject to the exceptions set forth therein) the extent
to which property acquired by a debtor after the commencement of a case under the Bankruptcy
Code may be subject to a security interest arising from a security agreement entered into by
the debtor before the commencement of such case.

     (p) In rendering our opinion set forth in paragraph 4 above, we have assumed
that value has been given to each Obligor party to the Security Agreement.

     (q) In the case of Collateral in which the security interest of the
Collateral Agent has been perfected by the filing of a Financing Statement, Article 9 of the
Uniform Commercial Code requires the filing of continuation statements within the period of
six months prior to the expiration of five years from the date of the original filings in
order to maintain the effectiveness of such filings. We express no opinion as to whether
the description of the collateral contained in the Security Documents or any UCC financing
statements is sufficient within the meaning of Sections 9-108 and 9-504 of the NYUCC and we
assume that the information set forth in each UCC financing statement is correct. We also
express no opinion whether or to what extent a financing statement will be effective to
perfect a security interest in assets outside of the United States.

     (r) We express no opinion as to any provision of any Transaction Document
that provides for waiver of trial by jury or of other rights or defenses that under
applicable law (including judicial decisions) or public policy cannot be waived.

- 10 -

 

     (s) We express no opinion as to the effect of any judicial, administrative or
other action giving effect to the actions of foreign courts or other foreign governmental
authorities or to foreign laws.

     (t) We express no opinion as (i) to any waivers or variations of rights of a
debtor, including a guarantor, or duties of a secured party under Section 1-102(3) of the
NYUCC or under provisions referred to in Section 9-602 of the NYUCC and (ii) the effect of
any provision of the Transaction Documents that is intended to establish any standard other
than a standard set forth in the NYUCC as the measure of performance by any party thereto of
such party’s obligations of good faith, due diligence, reasonableness or care or the
fulfillment of the duties imposed on any secured party by the NYUCC.

     (u) We express no opinion as to the enforceability of the security interest
created under the Transaction Documents in any item of Collateral subject to any restriction
on or prohibition against transfer contained in or otherwise applicable to such item of
Collateral or any agreement, license, permit, security, instrument or document constituting,
evidencing or relating to such item, except to the extent that any such restriction or
prohibition is rendered ineffective pursuant to any of Sections 9-406 through 9-409,
inclusive, of the NYUCC.

     (v) We express no opinion with respect to any security interest in any
Collateral consisting of any securities issued by, or obligations or claims against, any
government or governmental agency or instrumentality (including without limitation the
United States of America, any state thereof or any political subdivision, agency or
instrumentality of any thereof). We call to your attention that your rights as secured
parties may be subject to the provisions of the organizational and governing documents of
any entity in which any equity interests (or other rights of equity holders or investors)
are pledged and the provisions of the applicable laws under which any such entity is
organized.

     (w) We call to your attention that under the [NYUCC, CALUCC and DCUCC]
(collectively the “UCC”), events occurring subsequent to the creation of a security interest
subject to the UCC may affect such security interest, including, without limitation, factors
of the type identified in Section 9-316 of the UCC with respect to changes in governing law
or the location of the debtor; Sections 9-507 and 9-508 of the UCC with respect to changes
in the name and identity of the debtor; Section 9-339 of the UCC with respect to
subordination agreements; and Sections 9-320, 9-330 and 9-331 of the UCC with respect to
subsequent purchasers of Collateral. In addition, actions taken by a secured party
(e.g., releasing or assigning the security interest, delivery of possession of the
collateral to the debtor or another person) may affect the security interest.

The opinions expressed herein are limited to the federal laws of the United States and to the laws
of the State of New York [and, insofar as may be relevant to our opinions expressed herein in
paragraphs 5 and 6, the laws of the CALUCC and the DCUCC.] [The opinion concerning the DCUCC
filing of financing statements is rendered in reliance on D.C. Mun. Regs., tit. 9, §513.2 which
provides (notwithstanding the provisions of Section 9-501(a) of the DCUCC specifying

- 11 -

 

that the office in which to file a financing statement for all collateral other than as-extracted
collateral and timber to be cut is the Office of the Mayor) that “[a] financing statement to
perfect a security interest shall be filed with the Recorder of Deeds.”] We do not express any
opinion as to the laws of any other jurisdiction.

Furthermore, we express no opinion as to, and assume no responsibility for, the effect of, or to
update this opinion for, any fact or circumstance occurring subsequent to the date of this letter,
including, without limitation, legislative and other changes in the law or changes in circumstances
affecting any party to the Transaction Documents. We assume no responsibility to advise you of any
such facts or circumstances of which we become aware, regardless of whether or not they affect the
opinions herein. This opinion letter shall be interpreted in accordance with the customary
practice of lawyers in New York who regularly give and lawyers who on behalf of their clients
regularly advise opinion recipients regarding opinions in transactions of this type.

This opinion is delivered to you solely in connection with the transactions described herein and
may not be relied upon by you for any other purpose and may not be used or relied upon by, or
published or communicated to, any Person other than the addressees hereof for any purpose
whatsoever without our prior written consent in each instance, except that a copy of this opinion
may be furnished (but such recipients may not rely on this opinion) without our prior written
consent to (i) any of your successors or assigns or prospective successors or assigns, (ii) your
legal and other advisors, (iii) any legislative, administrative, regulatory or judicial body if
required by applicable law and (iv) any Person pursuant to legal process.

Very truly yours,

- 12 -

 

Schedule 1

Citibank, N.A., as Administrative Agent and Collateral Agent

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

BNP Paribas

[Add names of each Lender]

 

 

Schedule 2

UCC Financing Statements

 

 

[Exhibit I]

Priority Search Certificates

 

 

EXHIBIT E-1B

FORM OF OPINION OF IN-HOUSE COUNSEL

TO THE RELEVANT ADVANCE PARTIES

[SEE ATTACHED]

Term Loan Credit Agreement

E-1B-1

 

[ILFC Letterhead]

______________, 2011

To the addressees listed on Schedule I attached hereto

Ladies and Gentlemen:

     This opinion is being delivered to you by the undersigned as __________ of International Lease
Finance Corporation, a California corporation (“ILFC”), in connection with that certain
Term Loan Credit Agreement, dated as of the date hereof (the “Credit Agreement”), among
Temescal Aircraft Inc., a California corporation (the “Borrower”), ILFC, Park Topanga
Aircraft Inc., a California corporation (the “Parent Holdco”), Charmlee Aircraft Inc., a
California corporation (the “CA Subsidiary Holdco”), Ballysky Aircraft Ireland Limited, a
private limited liability company incorporated under the laws of Ireland (the “Irish Subsidiary
Holdco”), the lenders from time to time party to the Credit Agreement (collectively, the
“Lenders”), Citibank, N.A. (“Citibank”), as administrative agent (in such capacity,
the “Administrative Agent”), Citibank, as collateral agent (in such capacity, the
“Collateral Agent”), Citigroup Global Markets Inc. (“Citigroup”) and Credit Suisse
Securities (USA) LLC, as joint lead structuring agents and joint lead placement agents (in such
capacity, the “Joint Lead Agents”) and BNP Paribas, as Joint Placement Agent
(“Joint Placement Agent”).

     This opinion is being furnished pursuant to Section 4.02(d) of the Credit Agreement.
Capitalized terms used and not otherwise defined herein shall have the respective meanings set
forth in the Credit Agreement.

     In rendering the opinions set forth herein, I have examined and relied on originals or copies
of the following:

     (a) the Obligor Assumption Agreement, dated ______________, 201[    ] (the “Obligor
Agreement”), executed by ______________ (the “New CA Obligor”) to the Collateral Agent
and duly acknowledged and agreed to by the Collateral Agent;

     (b) the Collateral Supplement, dated ______________, 201[    ] (the “Collateral
Supplement”), executed by ______________ to the Collateral Agent and duly acknowledged and
agreed to by the Collateral Agent;

     (c) [the Grantor Supplement, dated as of ______________, 201[    ] (the “Grantor
Supplement”), executed by the New CA Obligor to the Collateral Agent and duly acknowledged and
agreed to by the Collateral Agent];

- 1 -

 

     (d) [the FAA Aircraft Mortgage and Lease Assignment, dated ______________, 201[    ] (the
“FAA Mortgage”), executed by the New CA Obligor, the Borrower, the Parent Holdco, the CA
Subsidiary Holdco, the Irish Subsidiary Holdco, the additional grantors from time to time party
thereto and the Collateral Agent];

     (e) [the Share Charge dated ______________, 201[    ] (the “Share Charge”), between the
New CA Obligor, as chargor, and the Collateral Agent, as chargee, in respect of shares in
_____________];

     (f) [the Trust Agreement (MSN[_____]) dated ______________, 201[    ] (the “Trust
Agreement”), between the New CA Obligor, as beneficiary, and ______________, as owner trustee];

     (g) a true and complete copy of the Articles of Incorporation of each CA Obligor, as certified
by the Secretary of each CA Obligor;

     (h) a true and complete copy of the Bylaws of each CA Obligor, as certified by the Secretary
of each CA Obligor;

     (i) the resolutions of the Board of Directors of each CA Obligor adopted by unanimous written
consent; and

     (j) certificates, from the Secretary of State of the State of California and the Franchise Tax
Board of the State of California, as to each CA Obligor’s existence and good standing in the State
of California.

     Each of the ILFC, the Parent Holdco, the Borrower, the New CA Obligor and the CA Subsidiary
Holdco is referred to herein, individually, as a “CA Obligor”, and collectively, as the
“CA Obligors.” The Obligor Agreement and the Collateral Supplement [and], [the Grantor
Supplement] [the FAA Mortgage] [the Share Charge] [and the Trust Agreement] are referred to herein,
individually, as a “Transaction Document” and, collectively, as the “Transaction
Documents”.

     I have also examined originals or copies, certified or otherwise identified to my
satisfaction, of such records of the CA Obligors and such agreements, certificates and receipts of
public officials, certificates of officers or other representatives of the CA Obligors and others,
and such other documents as I have deemed necessary or appropriate as a basis for the opinions set
forth below.

     In my examination, I have assumed the legal capacity of all natural persons, the genuineness
of all signatures, the authenticity and completeness of all documents submitted to me as originals,
the conformity to original documents of all documents submitted to me as facsimile, electronic,
certified or photostatic copies, and the authenticity of the originals of such copies. As to any
facts material to the opinions expressed herein that I did not independently establish or verify, I
have relied upon statements and representations of other officers and other representatives of the
CA Obligors and others and of public officials.

- 2 -

 

     The opinions set forth below are subject to the following further qualifications, further
assumptions and limitations:

     (a) the opinion set forth in paragraph 1 below with respect to the due incorporation, valid
existence and good standing status of each CA Obligor under the laws of the State of California is
based solely upon the certificates issued by the Secretary of State of the State of California and
the Franchise Tax Board of the State of California;

     (b) for purposes of the opinions set forth below, (i) “Applicable Laws” means those
laws, rules and regulations of the State of California and those federal laws, rules and
regulations of the United States of America, in each case that, in my experience, are normally or
customarily applicable to transactions of the type contemplated by the Transaction Documents, but
without having made any special investigation as to the applicability of any specific law, rule or
regulation; (ii) “Applicable Contracts” means those agreements or instruments identified on
Schedule II attached hereto; (iii) “Governmental Approval” means any consent,
approval, license, authorization or validation of, or filing, recording or registration with, any
Governmental Authority pursuant to Applicable Laws where the failure to obtain such consent,
approval, license, authorization or validation or to make such filing, recording or registration
will result in a Material Adverse Effect, and other than any consent, approval, license,
authorization, validation, filing, qualification or registration that may have become applicable as
a result of the involvement of any party (other than any of the CA Obligors) in the transactions
contemplated by the Transaction Documents or because of such parties’ legal or regulatory status or
because of any other facts specifically pertaining to such parties or required to be obtained after
the date hereof; and (iv) “Governmental Authority” means any court, regulatory body,
administrative agency or governmental body of the State of California or the United States of
America having jurisdiction over any CA Obligor under Applicable Laws;

     (c) I do not express any opinion as to the validity, binding effect or enforceability of the
Transaction Documents; and

     (d) I express no opinion as to: (1) United States federal or state securities, insurance or
banking laws or regulations; (2) United States federal or state antitrust or unfair competition
laws or regulations; (3) United States federal or state environmental laws or regulations; (4)
United States federal or state tax laws or regulations; (5) United States federal or state public
utility laws or regulations; (6) pension or employee benefit laws or regulations; (7) United States
federal patent, copyright or trademark, state trademark, or other United States federal or state
intellectual property laws or regulations; (8) United States federal or state health and safety
laws or regulations; (9) United States federal or state labor laws or regulations; (10) United
States federal or state laws, regulations or policies relating to national or local emergencies;
(11) statutes, ordinances, administrative decisions, rules or regulations of counties, towns,
municipalities or special political subdivisions (whether created or enabled through legislative
action at the United States federal, state or regional level); (12) United States federal or state
laws, rules or regulations relating to zoning, land use, building or construction; (13) United
States federal or state usury laws (other than California usury

- 3 -

 

laws); (14) pension or employee benefits laws or regulations, including the Employee
Retirement Income Security Act of 1974, as amended; (15) The USA Patriot Act (Title III of Public
L. 107-56) or other anti-money laundering laws or regulations; (16) the Foreign Corrupt Practices
Act; (17) (a) the Trading with the Enemy Act of 1917, 50 U.S.C.A. app. §1 et seq., of the United
States, (b) the International Emergency Economic Powers Act, 50 U.S.C.A. §1701 et seq., of the
United States, or (c) all United States Executive Orders (including the September 24, 2001,
Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to
Commit or Support Terrorism), rules, regulations (including those from the Office of Foreign Assets
Control of the U.S. Department of the Treasury), and other official acts promulgated under any of
the foregoing; or (18) judicial decisions to the extent that they deal with any of the foregoing.

     (e) I do not express any opinion as to the effect on the opinions expressed herein of (i) the
compliance or noncompliance of any party to the Transaction Documents (other than the CA Obligors
to the extent necessary to render the opinions set forth herein) with any state, federal or other
laws or regulations applicable to it or them or (ii) the legal or regulatory status or the nature
of the business of any party (other than with respect to the CA Obligors to the extent necessary to
render the opinions set forth herein).

     I am admitted to the bar of the State of California, and I do not express any opinion as to
any laws other than the laws of the State of California and the federal laws of the United States
of America to the extent referred to specifically herein. Insofar as the opinions expressed herein
relate to matters governed by laws other than those set forth in the preceding sentence, I have
assumed, without having made any independent investigation, that such laws do not affect any of the
opinions set forth herein. The opinions expressed herein are based on laws in effect on the date
hereof, which laws are subject to change with possible retroactive effect.

     Based upon the foregoing and subject to the limitations, qualifications, exceptions and
assumptions set forth herein, I am of the opinion that:

     1. Each CA Obligor is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of California.

     2. Each CA Obligor has the requisite corporate power and authority to execute, deliver and
perform its obligations under the Transaction Documents. The execution, delivery and performance
by each CA Obligor of the Transaction Documents has been duly authorized by all necessary corporate
action on the part of such CA Obligor.

     3. Each of the Transaction Documents to which a CA Obligor is a party has been duly executed
and delivered by such CA Obligor.

     4. The execution and delivery of the Transaction Documents by each CA Obligor does not, and
the performance by each CA Obligor of its obligations under

- 4 -

 

the Transaction Documents to which it is a party, will not (a) violate such CA Obligor’s
Articles of Incorporation or Bylaws, (b) contravene any provision of any Applicable Law, (c)
constitute a violation of or a default under any Applicable Contract or (d) result in or cause the
creation of any security interest or lien upon any of the property of such CA Obligor pursuant to
any Applicable Contract.

     5. No Governmental Approval is required on the part of any CA Obligor for the authorization,
execution and delivery of or performance of its obligations under the Transaction Documents to
which it is a party, except for such Governmental Approvals which (i) have been obtained or taken
and are in full force and effect or (ii) will be obtained or made in the ordinary course of
business.

     6. In any proceedings duly taken in the courts of the State of California or a United States
federal court sitting in the State of California to enforce any of the Transaction Documents, the
choice of New York [or _______] law as the substantive law governing such Transaction Documents
should be recognized and such law should be applied except as may otherwise be provided under the
Transaction Documents and the California Uniform Commercial Code, including the California Uniform
Commercial Code Sections 9-301 to 9-307. The foregoing assumes that either the parties to the
Transaction Documents or the transactions contemplated thereby bear a substantial relationship to
the State of New York [or _______] and that the application of New York [or _______] law would not
result in a violation of a fundamental public policy of the State of California.

     The opinions set forth herein are solely for the benefit of the addressees (and their
successors and assigns) identified at the beginning of this opinion letter (the
“Addressees”) in connection with the execution and delivery of the Transaction Documents to
which it is a party by each CA Obligor, and may not be relied upon in any manner or for any purpose
by, nor may copies of this opinion letter be delivered or distributed to, any other person or
entity without my prior written consent. The opinions set forth herein are limited to the matters
stated herein and expressly set forth in this opinion letter, and no opinion is to be implied or
may be inferred beyond the matters expressly stated herein. This opinion letter is being provided
to the Addressees as of the date hereof, and the CA Obligors and I do not assume any obligation to
update this opinion letter for events occurring after the date of this opinion letter or to provide
the Addressees with any additional information that may come to our attention after the date
hereof. Each Addressee’s recourse, if any, on account of any opinion herein proving inaccurate,
shall be against the CA Obligors. I am rendering these opinions and this opinion letter in my
capacity as ___________ of ILFC and not individually.

	 	 	 	 	 
	 	Very truly yours,
 	 

- 5 -

 

	 	 	 	 	 

Schedule I

Citibank, N.A., as Administrative Agent, on behalf of the Lenders

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

Citibank, N.A., as Collateral Agent, on behalf of the Lenders

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

Citigroup Global Markets Inc., as Joint Lead Structuring Agent and Joint Lead Placement Agent

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Attention: Suzanna Gallagher

Facsimile No. (212) 994-0961

Credit Suisse Securities (USA) LLC, as Joint Lead Structuring Agent and Joint Lead Placement Agent

Eleven Madison Avenue, 5th Floor

New York, NY 10010

BNP Paribas, as Joint Placement Agent

Aviation Finance Group

520 Madison Avenue, 3rd Floor

New York, NY 10022

Attention: Robert Papas/Stephanie Klein

Facsimile No. (212) 841-2748

The Lenders from time to time party to that certain Credit Agreement, dated as of the date hereof,
by and among Temescal Aircraft Inc., International Lease Finance Corporation, Park Topanga Aircraft
Inc., Charmlee Aircraft Inc., Ballysky Aircraft Ireland Limited, and the other parties described
therein

 

 

Schedule II

Applicable Contracts

[TO BE PROVIDED]

 

 

EXHIBIT E-1C

FORM OF OPINION OF A&L GOODBODY,

COUNSEL TO THE RELEVANT ADVANCE PARTIES

[SEE ATTACHED]

Term Loan Credit Agreement

E-1C-1

 

A&L Goodbody Solicitors International Financial Services Centre North Wall Quay Dublin 1

Tel: +353 1 649 2000     Fax: +353 1 649 2649     email: info@algoodbody.com     website: www.algoodbody.com     dx: 29 Dublin

our ref | CD 01373175                                         your ref |                                         date | _____2011

ADVANCE OPINION

The addressees outlined in Schedule 1 hereto (the Addressees)

International Lease Finance Corporation

ILFC-Citi/CS Facility -Term Loan Credit Agreement

Dear Sirs

We have acted on behalf of International Lease Finance Corporation (ILFC) which has requested us to
give you this opinion in connection with a credit agreement dated as of March__ 2011 (the Credit
Agreement) between Temescal Aircraft Inc. as borrower (the Borrower), ILFC, Park Topanga Aircraft
Inc. (Parent Holdco), Charmlee Aircraft Inc. (CA Subsidiary Holdco) and Ballysky Aircraft Ireland
Limited (Irish Subsidiary Holdco) as obligors, the lenders identified therein as lenders, Citibank,
N.A. (the Collateral Agent) as administrative agent and collateral agent, Citigroup Global Markets
Inc. and Credit Suisse Securities (USA) LLC as joint lead structuring agents and joint lead
placement agents and BNP Paribas as joint placement agent (the Transaction).

	1.	 	We have examined copies of

	 	1.1.	 	the agreements listed in Schedule 2 hereto (together the Agreements);
	 
	 	1.2.	 	a contracting state search certificate (the Contracting State Certificate)
issued on ______ in respect of Ireland describing the declarations made by Ireland
which is attached to this opinion as Exhibit I;
	 
	 	1.3.	 	priority search certificates (the Priority Search Certificates) issued on
____ covering registrations describing the airframe and engines of each of the
aircraft more particularly described in Schedule 3 (the Pool Aircraft) which includes
the registration of international interests in the airframe and engines of each of the
Pool Aircraft on the International Registry and attached to this opinion as Exhibit
II;
	 
	 	1.4.	 	a corporate certificate of [_____] (the New Irish Company) dated ____ (the
New Irish Company Certificate) attaching:1  

	 	1.4.1.	 	copies of the certificate of incorporation and memorandum and articles
of association of the New Irish Company;
	 
	 	1.4.2.	 	list of directors and secretary of the New Irish Company;
	 
	 	1.4.3.	 	a copy of the resolutions passed at the meeting of the board of directors of

 

			
	1	 	Include for each Irish entity that is
becoming a Borrower Party as of the relevant Advance Date.

Dublin     Belfast     London     Boston     New York

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	S.C. Hamilton

	 	C.E. Gill
	 	V.J. Power
	 	P.V. Maher
	 	E. MacNeill
	 	N. O’Sullivan
	 	S.O’Croinin
	 	J.B. Somerville
	 	C. Widger
	 	J. Cahir
	 	A.J. Johnston
	R.B. Buckley

	 	E.M. Fitzgerald
	 	L.A. Kennedy
	 	S. O’Riordan
	 	K.P. Allen
	 	M.J. Ward
	 	J.W. Yarr
	 	M.F. Barr
	 	M. Dale
	 	M. Traynor
	 	M. Rasdale
	P.M. Law

	 	B.M. Cotter
	 	S.M. Doggett
	 	M.P.McKenna
	 	E.A. Roberts
	 	A.C. Burke
	 	D.R. Baxter
	 	M.L. Stack
	 	N. Coyne
	 	P.M. Murray	 	 
	P.J. Carroll

	 	J.G. Grennan
	 	B.McDermott
	 	K.A. Feeney
	 	C. Rogers
	 	J. Given
	 	A.McCarthy
	 	B.Walsh
	 	C. McCourt
	 	N. Ryan	 	 
	J.H. Hickson

	 	J.Coman
	 	C. Duffy
	 	M.Sherlock
	 	G. O’Toole
	 	D. Widger
	 	J.F. Whelan
	 	A.M.Curran
	 	R.M. Moore
	 	K. Furlong	 	 
	M.F. O’Gorman

	 	P.D. White
	 	E.M. Brady
	 	E.P. Conlon
	 	J.N. Kelly
	 	C. Christle
	 	D.R. Conlon
	 	A. Roberts
	 	D. Main
	 	P.T. Fahy	 	 

Consultants:     J.R. Osborne     S.W Haughey     T.V. O’Connor     Professor J.C.W. Wylie     A.F. Browne     M.A. Greene     A.V. Fanagan     J.A. O’Farrell     I.B.Moore

 

 

	 	 	 	the New Irish Company on ___________;     
	 
	 	1.4.4.	 	a copy of the power of attorney of the New Irish Company dated _____; and
	 
	 	1.4.5.	 	a copy of the specimen signatures;

	 	1.5.	 	a corporate certificate of [_____] (the Existing Irish Company) dated ____
(the Existing Irish Company Certificate) attaching:2

	 	1.5.1.	 	copies of the certificate of incorporation and memorandum and articles
of association of the Existing Irish Company;
	 
	 	1.5.2.	 	list of directors and secretary of the Existing Irish Company;
	 
	 	1.5.3.	 	a copy of the resolutions passed at the meeting of the board of directors of
the Existing Irish Company on _____;
	 
	 	1.5.4.	 	a copy of the power of attorney of the Existing Irish Company dated _____;
and
	 
	 	1.5.5.	 	a copy of the specimen signatures;

	 	 	and such other documents as we have considered necessary or desirable to examine in order
that we may give this opinion.
	 
	 	 	Terms defined in the Credit Agreement have the same meaning in this opinion letter. The
Irish Subsidiary HoldCo, the New Irish Company and the Existing Irish Company are together
herein referred to as the Companies and each a Company. The New Irish Company Certificate
and the Existing Irish Company Certificate are together referred to herein as the
Certificates. The Agreements listed at 4-7 of Schedule 2 are together referred to herein as
the Relevant Agreements. The Security Agreement, [list each Grantor Supplement and each
Equity Document] are together referred to herein as the Security Documents. The Credit
Agreement, the Intercreditor Agreement, the Obligor Assumption Agreement, the Security
Agreement, the Collateral Supplement and the Grantor Supplement are together referred to
herein as the New York Law Agreements.
	 
	 	 	The Security Agreement as amended and supplemented by the [Grantor Supplements and
Collateral Supplements] , insofar as it relates to the Pool Aircraft, is referred to
herein as the Cape Town Agreement. 3
	 
	 	 	For the purpose of this opinion, the following terms shall have the following
definitions. The Convention means the Convention on International Interests in Mobile
Equipment signed in Cape Town on 16 November 2001 and the Protocol to the Convention on
Matters Specific to Aircraft Equipment (Aviation Protocol) adopted by the Secretariats of
International Civil Aviation Organisation (ICAO) and the International Institute for the
Unification of Private Law
(UNIDROIT), and adopted pursuant to Resolution No. 1 of the Final Act of the Diplomatic

 

			
	2	 	Include for any Irish entity that is
already a Borrower Party that is delivering a Collateral Supplement relating to
the relevant Advance Date – define collectively with each new Irish entity as
the Companies.
	 
	3	 	Include Cape Town language in opinion
only if an Aircraft Owned by an Irish entity is becoming a Pool Aircraft as of
the relevant Advance Date.

2

 

	 	 	Conference to adopt the Convention and the Aviation Protocol under the auspices of ICAO and
UNIDROIT at Cape Town from 29 October to 16 November 2001. The Convention and the Aviation
Protocol are read and interpreted together as a single document as required by Article 6(1)
of the Convention and reference to the Convention in this opinion includes the Aviation
Protocol. In this opinion, references are made to the Articles of the Consolidated Text
which is a combination of the Convention and the Aviation Protocol authorised and created
pursuant to Resolution No. 1 of the Diplomatic Conference to Adopt a Mobile Equipment
Convention and an Aircraft Protocol. References to “Irish law” include the Convention as
enacted into Irish law by the International Interests in Mobile Equipment (Cape Town
Convention) Act, 2005.

	 	 	Terms used in this opinion in respect of the Convention (whether or not capitalised) and
not otherwise defined in this opinion shall have the meanings given to such terms in the
Consolidated Text or the Regulations issued by the Supervisory Authority for the
International Registry pursuant to Article 27 of the Consolidated Text (the Regulations).
	 
	2.	 	For the purpose of giving this opinion we have assumed:

	 	2.1.	 	the authenticity of all documents submitted to us as originals and the
completeness and conformity to the originals of all copies of documents of any kind
furnished to us;
	 
	 	2.2.	 	that the copies produced to us of minutes of meetings and/or of resolutions
are true copies and correctly record the proceedings of such meetings and/or the
subject-matter which they purport to record and that any meetings referred to in such
copies were duly convened and held and that all resolutions set out in such minutes
were duly passed and are in full force and effect;
	 
	 	2.3.	 	the genuineness of the signatures and seals on all original and copy
documents which we have examined;
	 
	 	2.4.	 	that the memorandum and articles of association of the Companies attached to
the Certificates are correct and up to date;
	 
	 	2.5.	 	the accuracy and completeness as to factual matters of the representations,
warranties and certificates of the Companies contained in the Certificates and the
accuracy of all certificates provided to us by the Companies;
	 
	 	2.6.	 	that there are no agreements or arrangements in existence which in any way
amend or vary the terms of the Transaction as disclosed by the Agreements;
	 
	 	2.7.	 	without having made any investigation that the terms of the New York Law
Agreements are lawful and fully enforceable under the laws of the State of New York
and any other applicable laws other than the laws of Ireland and that the Security
Documents that are New York Law Agreements (as defined in Schedule 2 hereto) creates
valid and enforceable security interests in accordance with its terms under the laws
of the State of New York;
	 
	 	2.8.	 	without having made any investigation, that [___] is the beneficial owner
free from encumbrances of all right, title and interest in and to the Charged Property
(as defined in the Equity Document) and that it has delivered, or will deliver, to the
Collateral Agent each of the documents listed in Clause [3.2] of the Equity

3

 

	 	 	 	Document;4
	 
	 	2.9.	 	the accuracy and completeness of all information appearing on public records;

	 	2.10.	 	that each of the Companies has entered into the Transaction in good faith,
for its legitimate business purposes, for good consideration, and that it derives
commercial benefit from the Transaction commensurate with the risks undertaken by it
in the Transactions; and
	 
	 	2.11.	 	in relation to the Cape Town Agreement:

	 	2.11.1.	 	that the minimum technical requirements stipulated in the definition of
“airframes” and/or “aircraft engines” in the Convention and the Regulations
have been fulfilled;
	 
	 	2.11.2.	 	that the airframe and engines of the Pool Aircraft are correctly identified
and described by the manufacturer’s serial number, name of manufacturer and
the manufacturer’s model designation;
	 
	 	2.11.3.	 	that as a matter of the laws of the State of New York, the Cape Town
Agreement is a “security agreement” and constitutes an international interest
in respect of the Pool Aircraft [and an assignment of international interest
and associated rights in respect of the Cape Town Lease in respect of the Pool
Aircraft] in each case within the meaning of the Convention;
	 
	 	2.11.4.	 	[that, at the time of execution of the Cape Town Agreement, the New Irish
Company was “situated” in Ireland within the meaning of the Convention. In
this regard we note that the New Irish Company is incorporated in Ireland];
	 
	 	2.11.5.	 	[that, at the time of execution of the Cape Town Lease, the Lessee was
“situated” in a Contracting State with the meaning of the Convention];
	 
	 	2.11.6.	 	that the New Irish Company has “power to dispose” of the Pool Aircraft
within the meaning of Convention;
	 
	 	2.11.7.	 	no other agreements have been entered into including, without limitation, a
subordination agreement, which would constitute international interests or
determine the priority of interest of any of the parties;
	 
	 	2.11.8.	 	that the Contracting State Certificate description of declarations made by
Ireland and the date on which each such declaration is recorded is accurate in
all respects.

	3.	 	We express no opinion as to any matters falling to be determined other than under the laws of
Ireland and, without reference to provisions of other laws imported by Irish private
international law, in Ireland as of the date of this letter. Subject to that qualification
and to the other qualifications set out herein, we are of the opinion that:

 

			
	4	 	Include language relating to Equity
Document (or any other specific Agreement) only if being delivered with respect
to the relevant Advance Date. Also, make changes as necessary if the Equity
Document is governed by laws other than Irish laws (e.g. if the Prior Irish
Company is delivering a French law share pledge).]

4

 

	 	3.1.	 	each of the Companies is a company duly incorporated under the laws of
Ireland and is a separate legal entity, subject to suit in its own name. Based only
on searches carried out in the Irish Companies Registration Office and the Central
Office of the High Court on the date of this Opinion, each of the Companies is validly
existing under the laws of Ireland and no steps have been taken or are being taken to
appoint a receiver, examiner or liquidator over it or to wind it up;

	 	3.2.	 	each of the Companies has the necessary power and authority, and all
necessary corporate and other action has been taken, to enable it to execute, deliver
and perform the obligations undertaken by it under the Relevant Agreements to which it
is a party, and the implementation by the Companies of the foregoing will not cause:

	 	3.2.1.	 	any limit on it or on its directors (whether imposed by the documents
constituting the Companies or by statute or regulation) to be exceeded; or
	 
	 	3.2.2.	 	any law or order to be contravened;

	 	3.3.	 	each of the Relevant Agreements to which a Company is a party has been duly
executed on behalf of that Company;
	 
	 	3.4.	 	the obligations of [name equityholder] under the Equity Document are valid
and legally binding on and are in a form capable of enforcement against [name
equityholder] under the laws of Ireland, in the Courts of Ireland in accordance with
its terms;
	 
	 	3.5.	 	no authorisations, approvals, licences, exemptions or consents of
governmental or regulatory authorities with respect to the Agreements are required to
be obtained in Ireland;
	 
	 	3.6.	 	under the laws of Ireland in force at the date hereof, the claims of the
Collateral Agent against the [[name equityholder] under the Equity Document and
the]5 Companies under the Relevant Agreements will rank at least
pari passu with the claims of all other unsecured creditors, except claims which rank
at law as preferential claims in a winding up, examinership or receivership;
	 
	 	3.7.	 	it is not necessary or advisable under the laws of Ireland in order to ensure
the legality, validity, enforceability or priority of the obligations or rights of any
party to the Relevant Agreements, or the perfection or priority of any security
interest created under any Relevant Agreements, that any of them be filed, registered,
recorded, or notarised in any public office or elsewhere or that any other instrument
relating thereto be signed, delivered, filed, registered or recorded other than:

	 	3.7.1.	 	the requirement to file particulars of the charges created pursuant to the
Security Documents with the Irish Registrar of Companies within 21 days of
their execution (in this regard, we have been instructed to, and will, make
the requisite filings); and
	 
	 	3.7.2.	 	in order to ensure the priority given to a registered interest pursuant to
Article 42 of the Consolidated Text, it is necessary that the international
interests [and assignments of international interests] constituted by the Cape

 

			
	5	 	Only include if Chargor is an Irish
company

5

 

	 	 	 	Town Agreement be registered with the International Registry in the order
agreed by the relevant parties;

	 	3.8.	 	none of the Companies are entitled to claim any immunity from suit,
execution, attachment or other legal process in Ireland;

	 	3.9.	 	in any proceedings taken in Ireland for the enforcement of the New York Law
Agreements, the choice of the law of the State of New York as the governing law of the
contractual rights and obligations of the parties under the New York Law Agreements
would be upheld by the Irish Courts;
	 
	 	3.10.	 	in any proceedings taken in Ireland for the enforcement of a judgment
obtained against the Companies in the courts of New York (a Foreign Judgment) the
Foreign Judgment should be recognised and enforced by the courts of Ireland save that
to enforce such a Foreign Judgment in Ireland it would be necessary to obtain an order
of the Irish courts. Such order should be granted on proper proof of the Foreign
Judgment without any re-trial or examination of the merits of the case subject to the
following qualifications:

	 	3.10.1.	 	that the foreign court had jurisdiction, according to the laws of Ireland;
	 
	 	3.10.2.	 	that the Foreign Judgment was not obtained by fraud;
	 
	 	3.10.3.	 	that the Foreign Judgment is not contrary to public policy or natural
justice as understood in Irish law;
	 
	 	3.10.4.	 	that the Foreign Judgment is final and conclusive;
	 
	 	3.10.5.	 	that the Foreign Judgment is for a definite sum of money; and
	 
	 	3.10.6.	 	that the procedural rules of the court giving the Foreign Judgment have
been observed.

	 	 	 	Any such order of the Irish courts may be expressed in a currency other than euro
in respect of the amount due and payable by the Companies but such order may be
issued out of the Central Office of the Irish High Court expressed in euro by
reference to the official rate of exchange prevailing on the date of issue of such
order. However, in the event of a winding up of the Companies, amounts claimed by
against the Companies in a currency other than the euro (the Foreign Currency)
would, to the extent properly payable in the winding up, be paid if not in the
Foreign Currency in the euro equivalent of the amount due in the Foreign Currency
converted at the rate of exchange pertaining on the date of the commencement of
such winding up;
	 
	 	3.11.	 	it is not necessary under the laws of Ireland (a) in order to enable the
Collateral Agent to enforce its rights under the Agreements or (b) by reason of the
execution of the Agreements, that the Collateral Agent should be licensed, qualified
or otherwise entitled to carry on business in Ireland;
	 
	 	3.12.	 	the Agreements will not be liable to any ad valorem tax or duty,
registration tax, stamp duty or any similar tax or duty imposed by a competent
authority of or within Ireland;

6

 

	 	3.13.	 	by reason only of the execution, delivery and performance of the Agreements
by the Collateral Agent, it shall not be deemed to be resident, domiciled or carrying
on a trade or business in Ireland;
	 
	 	3.14.	 	there is no applicable usury or interest limitation law in Ireland which
would restrict the recovery of payments in accordance with the Agreements;

	 	3.15.	 	the Irish Courts will generally recognise the security interests created by
each Company pursuant to the Security Agreement [Grantor Supplement and Collateral
Supplement] in accordance with its terms, provided that such interests or their
enforcement are not illegal or contrary to public policy as a matter of Irish law,
that all Irish law formalities with regard to security interests and their enforcement
have been complied with and that the party creating the security has absolute title,
free from encumbrances and other third party rights, to such assets;
	 
	 	3.16.	 	the International Interests in Mobile Equipment (Cape Town Convention) Act
2005 gave the force of law in Ireland to the Convention and Aviation Protocol;
	 
	 	3.17.	 	the interest granted by the New Irish Company to and held by the Collateral
Agent under the Cape Town Agreement constitutes an “international interest” [and
“assignment”] under the Convention. In order to ensure the priority given to a
registered interest pursuant to Article 42 of the Consolidated Text, it is necessary
that the international interests [and assignment of international interests]
constituted by the Cape Town Agreement should be registered in the order agreed by the
relevant parties with the International Registry;
	 
	 	3.18.	 	according to the Contracting State Certificate, Ireland is a Contracting
State and as a Contracting State has made the declarations under the Convention listed
in the Contracting State Certificate;
	 
	 	3.19.	 	based upon the Priority Search Certificates, the international interests
[and assignment of international interests] in respect of the airframe and engines of
each of the Pool Aircraft created by the Cape Town Agreement (collectively, the Cape
Town Interests) have been duly registered on the International Registry and,
accordingly, are effective against third parties in Ireland as a matter of Irish law
subject in each case to the rights and interests described in paragraph 4.20 below;
	 
	 	3.20.	 	each of the Cape Town Interests is entitled to the priorities, protections
and benefits of the Convention subject to the assumptions and qualifications set forth
herein; and
	 
	 	3.21.	 	no further registration in the International Registry of any of the Cape
Town Interests is required under the Convention in order to maintain the effectiveness
and priority thereof.

	4.	 	The opinions set forth in this opinion letter are given subject to the following
qualifications:

	 	 4.1.	 	an order of specific performance or any other equitable remedy is a
discretionary remedy and is not available when damages are considered to be an
adequate remedy;
	 
	 	 4.2.	 	this opinion is given subject to general provisions of Irish law relating to
insolvency, bankruptcy, liquidation, reorganisation, receivership, moratoria, court
scheme of arrangement, administration and examination, and the fraudulent preference
of

7

 

	 	 	 	creditors and other Irish law generally affecting the rights of creditors;
	 
	 	4.3.	 	this opinion is subject to the general laws relating to the limitation of
actions in Ireland;

	 	4.4.	 	a determination, description, calculation, opinion or certificate of any
person as to any matter provided for in the Agreements might be held by the Irish
courts not to be final, conclusive or binding if it could be shown to have an
unreasonable, incorrect, or arbitrary basis or not to have been made in good faith;
	 
	 	4.5.	 	additional interest imposed by any clause of any Agreement might be held to
constitute a penalty and the provisions of that clause imposing additional interest
would thus be held to be void. The fact that such provisions are held to be void
would not in itself prejudice the legality and enforceability of any other provisions
of the relevant Agreement but could restrict the amount recoverable by way of interest
under such Agreement;
	 
	 	4.6.	 	claims may be or become subject to defences of set-off or counter-claim;
	 
	 	4.7.	 	pursuant to section 1001 of the Taxes Consolidation Act, 1997, the Collateral
Agent may become liable to make certain payments to the Irish Revenue Commissioners
(the Revenue) by reason of having been granted a fixed charge on book debts of the
Companies pursuant to the Security Agreement. Such liability would be computed by
reference to (i) amounts of income tax deducted by the relevant Company from the wages
of its employees and (ii) amounts of value added tax in each case owing but not paid
by the relevant Company to the Revenue (Relevant Amounts). However, the liability to
pay to the Revenue amounts received by it from the Companies will be limited to
amounts received after the relevant Company shall have been notified in writing by the
Revenue that such Relevant Amounts are due (the Revenue Notice). Further, if the
Revenue have received, within 21 days of execution, prescribed details of the charge
created thereby by the Security Agreement the liability of the Collateral Agent to
discharge the Relevant Amounts will be limited to the Relevant Amounts accruing after
the date of the Revenue Notice;
	 
	 	4.8.	 	under Section 1002 of the Taxes Consolidation Act, 1997, any debt to a person
(including any deposit with a financial institution) may be attached by the Revenue
Commissioners in order to discharge any liabilities of that person in respect of
outstanding tax whether the liabilities are due on its own account or as an agent or
trustee. This right of the Revenue Commissioners (on which there is no case law) may
override the rights of the holders of security (whether fixed or floating) in relation
to the debt in question. Section 1002 could be relevant to the security created by the
Security Agreement;
	 
	 	4.9.	 	an Irish court has power to stay an action where it is shown that there is
some other forum having competent jurisdiction which is more appropriate for the trial
of the action, in which the case can be tried more suitably for the interests of all
the parties and the ends of justice, and where staying the action is not inconsistent
with Council Regulation 2001/44/EC on Jurisdiction and the Enforcement of Judgments;
	 
	 	4.10.	 	there is some possibility that depending on the actual course of dealing
between the parties to the Security Agreement, the fixed charges contained in the
Security Agreement may not be construed as fixed charges but as floating charges and
so become subject to prior claims of certain statutory preferential creditors;

8

 

	 	4.11.	 	the enforceability of severance clauses is at the discretion of the court
and may not be enforceable in all circumstances;
	 
	 	4.12.	 	a waiver of all defences to any proceedings may not be enforceable;

	 	4.13.	 	provisions in any of the Agreements providing for indemnification resulting
from loss suffered on conversion of the amount of a claim made in a foreign currency
into euro in a liquidation may not be enforceable;
	 
	 	4.14.	 	any undertakings contained in any of the Agreements by any of the Companies
in respect of stamp duty may not be held to be binding on the relevant
Company; 
	 
	 	4.15.	 	an Irish court may refuse to give effect to undertakings contained in any of the
Agreements that the Companies will pay legal expenses and costs in respect of any
action before the Irish courts;
	 
	 	4.16.	 	we express no opinion as to the priority of any of the security created by
the Security Documents or whether the property or assets comprised in such security is
owned by a the relevant chargor thereunder, or whether such property or assets is or
are now or may become subject to any equities or subject to any rights or interests of
any other person ranking in priority to or free of such security or whether they could
be transferred to any other person free of any such security;
	 
	 	4.17.	 	we express no opinion on any taxation matters other than as expressly set
out in paragraph 3.12 or on the contractual terms of the relevant documents other than
by reference to the legal character thereof;
	 
	 	4.18.	 	in the event of the Collateral Agent seeking to dispose of the shares which
are the subject of the security created pursuant to the Equity Document, an
application for a clearance from the Competition Authority pursuant to the Competition
Acts 2002 and 2006 may have to be made;
	 
	 	4.19.	 	the Convention and Aviation Protocol came into force on 1 March 2006. As
such, practice and procedure with respect to legal opinions on the interpretation or
applicability of the Convention and Aviation Protocol, and the registrations and
searches made pursuant thereto, are still developing. The opinions set forth herein
are based on our interpretation of the Convention and Aviation Protocol as at the date
hereof, without the benefit of any precedent or established custom and practice;
	 
	 	4.20.	 	the Convention provides that the rights and interests of the parties arising
from international interests will only be subject to:

	 	4.20.1.	 	the rights and interests of persons evidenced on the Priority Search
Certificates as having a registration in relation to each “aircraft object”
that exists prior to the international interests constituted under the Cape
Town Agreement. [In this regard, we confirm that the Priority Certificates do
not reveal any existing interests in relation to any “aircraft object”
comprised in the Pool Aircraft];
	 
	 	4.20.2.	 	the rights and interests of the New Irish Company in each “aircraft object”
the subject of the Cape Town Agreement pursuant to the Convention and the
quiet enjoyment provisions set out in any of the Leases;

9

 

	 	4.20.3.	 	a pre-existing right or interest which enjoyed, under the applicable law
before the effective date of the Convention, a priority greater than that
international interest;

	 	4.20.4.	 	non-consensual rights or interests included in those categories covered by
the declarations made by Ireland under the Convention, that under Irish law
have priority over an interest registered against an aircraft object; and
	 
	 	4.20.5.	 	the right of Ireland, or any State entity, intergovernmental organisation
or other private provider of public services described in the declarations
made by Ireland under the Convention, or of any Contracting State which may
move such a declaration in the future, to arrest or detain an aircraft object
under the laws of that Contracting State for payment of amounts owed to such
entity, organisation or provider directly relating to those services in
respect of that object or another aircraft object. Please note paragraph 4.20
in this regard;

	 	4.21.	 	Ireland has made a declaration under Article 39 of the Convention wherein
Ireland declared that a non-consensual right or interest has priority over a
registered international interest and providing that nothing in the Convention and
Aviation Protocol affects the laws of Ireland in relation to the detention and sale of
an aircraft to discharge payments in respect of a public service provided by Irish
governmental and other service providers in relation to all aircraft (by way of
example, landing fees charged by an Irish airport); and
	 
	 	4.22.	 	Ireland has not made a declaration under Article XI of the Aviation Protocol
on remedies on insolvency and, as a result, Irish national law will apply to the
rights of the Collateral Agent under the Cape Town Agreement on the insolvency of the
New Irish Company.

This opinion is addressed only to the Addressees and may be relied upon only by each such Addressee
for its sole benefit in connection with the Transaction and may not be relied on by any
assignees of any such persons or any other person.

Yours faithfully,

10

 

SCHEDULE 1

The Addressees

Citibank, N.A., as administrative agent

on behalf of the Lenders at the date hereof

2 Penns Way, Suite 1100

New Castle, Delaware 19720

Citibank, N.A., as collateral agent

on behalf of the Lenders at the date hereof

388 Greenwich Street, 14th Floor

New York, NY 10013

Citigroup Global Markets Inc., as joint lead agent

390 Greenwich Street, 1st Floor

New York, NY 10013

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 5th Floor

New York, NY 10010

BNP Paribas

Aviation Finance Group

520 Madison Avenue

3rd Floor

New York, NY 10022

Attn: Robert Papas/Stephanie Klein

Each Lender party to the Credit Agreement on the date hereof

11

 

SCHEDULE 2

The Agreements

All documents are dated as of _____ unless otherwise stated

	1.	 	The Credit Agreement.
	 
	2.	 	The Intercreditor Agreement dated as of __ March 2011 between ILFC, Parent Holdco, the
Borrower, Irish Subsidiary Holdco, CA Subsidiary Holdco and the Collateral Agent.
	 
	3.	 	Aircraft Mortgage and Security Agreement dated as of __ March 2011 among the Borrower Parties
(including the New Company, by way of the Grantor Supplement) and the additional grantors
referred to therein as grantors and the Collateral Agent as collateral agent (the Security
Agreement).
	 
	4.	 	[[Share Charge] between [insert relevant equityholder] as chargor and the Collateral Agent as
chargee in respect of [the shares of the New Irish Company] (the Equity Document).] [Describe
any share charge or other pledge over equity interests being delivered by or in respect of an
Irish entity on the relevant advance date.]
	 
	5.	 	[Obligor Assumption Agreement from the New Irish Company pursuant to the Credit Agreement
(the Obligor Assumption Agreement).] [Describe any Obligor Assumption Agreement being
delivered by an Irish entity on the relevant advance date.]
	 
	6.	 	[Grantor Supplement from the New Irish Company to the Collateral Agent in respect of the
Collateral (as defined in the Security Agreement) granted by the New Irish Company, duly
acknowledged and agreed to by the Collateral Agent (the Grantor Supplement).] [Describe any
Collateral Supplement being delivered by an Irish entity on the relevant advance date.]
	 
	7.	 	[Collateral Supplement from [__] to the Collateral Agent in respect of [__] duly acknowledged
and agreed to by the Collateral Agent (the Collateral Supplement) [Describe any Collateral
Supplement being delivered by an Irish entity on the relevant advance date.]

12

 

SCHEDULE 3

Pool Aircraft

13

 

Exhibit I

Contracting State Certificate

14

 

Exhibit II

Priority Search Certificates

M-10382568-9

15

 

EXHIBIT E-2

FORM OF OPINION OF DAUGHERTY, FOWLER, PEREGRIN, HAUGHT & JENSON

[SEE ATTACHED]

Term Loan Credit Agreement

E-2-1

 

DFPH&J DRAFT

___/___/11 

IR Form 1 — S/A and COS 

(For the Letterhead of Daugherty, Fowler, Peregrin, Haught & Jenson)

________ __, 2011

To the Parties Named on

     Schedule 1 attached hereto

	RE: 	 	 One (1) _______ model _______ aircraft bearing manufacturer’s serial number ______ (the
“Airframe”) and two (2) ______ model _______ aircraft engines bearing manufacturer’s serial
numbers ______ and ______ (the “Engines”)

Ladies and Gentlemen:

          Acting as special legal counsel this opinion is furnished to you with respect to the
registration of interests with the International Registry (the “IR”) created pursuant to, and
according to the provisions of, the Convention on International Interests in Mobile Equipment (the
“Convention”), the Protocol to the Convention on International Interests in Mobile Equipment on
Matters Specific to Aircraft Equipment (the “Protocol”), both signed in Cape Town, South Africa on
November 16, 2001, together with the Regulations for the International Registry (the
“Regulations”), the International Registry Procedures (the “Procedures”), and all other rules,
amendments, supplements, and revisions thereto (collectively the “CTT”).

          Terms capitalized herein and not otherwise defined herein shall have the meanings given in the
CTT and on Schedule 3 attached hereto.

          Based upon our examination of such records of the IR as we deemed necessary to render this
opinion, it is our opinion that:

	 	1.	 	the Airframe and the Engines constitute Aircraft Objects based upon the
Interim Updatable List of Eligible Aircraft Objects compiled by the Federal Aviation
Administration;
	 
	 	2.	 	based upon the Priority Search Certificates dated ________ __, 2011 obtained
from the IR, copies of which are attached hereto as Schedule 2 and incorporated herein
by reference:

 

 

To the Parties Named on

Schedule 1 attached hereto

                    
____, 2011

Page 2

	 	(a)	 	the Airframe and the Engines are subject only to the Security
Agreement International Interest;
	 
	 	(b)	 	the Security Agreement International Interest has been duly
registered on the IR and constitutes a first priority International Interest
in the Airframe and the Engines; and,
	 
	 	(c)	 	the Contract of Sale has been duly registered on the IR and
constitutes a Sale, with respect to the Airframe and the Engines;

	 	3.	 	the CTT Interests are entitled to the priorities, protections and benefits of
the CTT, subject to the statements on Exhibit A attached hereto; and,
	 
	 	4.	 	no further registration on the IR of the CTT Interests is required under the
CTT in order to maintain the effectiveness and priority thereof.

          
In the event the CTT Interests are not subject to the CTT, then the interests created thereby
are governed by applicable law.

          This opinion is subject to certain comments, limitations and assumptions as listed in Exhibit
A attached hereto and incorporated herein by reference.

	Very truly yours,

	
Robert M. Peregrin
	For the Firm

RMP\ms

 

 

     SCHEDULE 1

Citibank, N.A., as administrative agent and collateral agent on behalf of the Lenders

Citigroup Global Markets Inc., as joint lead structuring agent and joint lead placement agent

Credit Suisse Securities (USA) LLC, as joint lead structuring agent and joint lead placement agent

BNP Paribas, as joint placement agent

The Lenders party to the Term Loan Credit Agreement as of the Effective Date and the Incremental
Lenders

 

 

     SCHEDULE 2

[the Priority Search Certificates attached hereto]

 

 

     SCHEDULE 3

     Description of Security Agreement International Interest

          International Interest between ______________, as Debtor, and Citibank, N.A., as Creditor,
registered with the International Registry on ________ __, 2011, as set forth on the Priority
Search Certificates, with respect to the Airframe and the Engines.

     Description of Contract of Sale

          Contract of Sale between __________________, as Seller, and _______________, as Buyer,
registered with the International Registry on ________ __, 2011, as set forth on the Priority
Search Certificates, with respect to the Airframe and the Engines.

     Description of CTT Interests

          The Security Agreement International Interest and the Contract of Sale are referred to
collectively as the “CTT Interests”.

 

 

     EXHIBIT A

Assumptions and Limitations

In rendering the foregoing opinion we have assumed that:

	 	(i)	 	the Priority Search Certificates are accurate in all respects, contain all
the registered information and data on the IR in connection with the Airframe and the
Engines to which they relate, and have not been altered since the date of such
Priority Search Certificates;
	 
	 	(ii)	 	the IR descriptions of the Airframe and the Engines are as noted above and
are accurate and complete descriptions with respect to the registrations on the IR;
	 
	 	(iii)	 	the CTT Interests are effective to constitute an International Interest or a
Contract of Sale subject to the CTT and registration on the IR;
	 
	 	(iv)	 	all of the registrations indicated on the Priority Search Certificates are
fully and properly constituted and validly created under the CTT;
	 
	 	(v)	 	any registrations on the IR pertaining to the Airframe and the Engines are
valid, enforceable and sufficient under the relevant applicable law or the CTT to
create, effect or terminate the rights and interests they purport to create, effect or
terminate;
	 
	 	(vi)	 	there has been no subordination or variation of any priority that would be
acquired pursuant to the terms of the CTT, in connection with the registrations on the
IR evidenced by the Priority Search Certificates other than pursuant to any
subordination indicated on the Priority Search Certificates.

In addition, since our examination was limited to records maintained by the IR, our opinion is
subject to the following limitations:

	 	(i)	 	a search on the IR pursuant to the CTT requires that the searching party enter
the exact manufacturer, model or serial number of an airframe or engine being searched
using the appropriate drop-down boxes, where available, and if a registration has been
made on the IR against the Airframe
and the Engines which describes the Airframe and the Engines differently (i.e. any
space, comma, dash, added number or character, missing number or character, or any

A-1

 

	 	 	 	other discrepancy whatsoever in the description of the manufacturer, model or serial
number) the Priority Search Certificates will produce an inaccurate search result;
accordingly, there may be registrations on the IR against the Airframe and the
Engines which are not reflected on the Priority Search Certificates and which may
have priority over subsequent registrations on the IR or filings with the FAA;
	 
	 	(ii)	 	in respect of rights derived from registrations with the IR does not cover
liens, claims or encumbrances which are perfected without the filing of notice
thereof;
	 
	 	(iii)	 	does not cover liens perfected in foreign jurisdictions, except to the
extent applicable law would regulate their priority based on registration with the IR;
and,
	 
	 	(iv)	 	does not cover any rights to arrest or detain an airframe or an engine under
any applicable law.

 

 

DFPH&J DRAFT

___/___/11
 

IR Form 2 — Existing Lease II

(For the Letterhead of Daugherty, Fowler, Peregrin, Haught & Jenson)

________ __, 2011

To the Parties Named on

     Schedule 1 attached hereto

	RE:	 	 One (1) _______ model _______ aircraft bearing manufacturer’s serial number ______ (the
“Airframe”) and two (2) ______ model _______ aircraft engines bearing manufacturer’s serial
numbers ______ and ______ (the “Engines”)

Ladies and Gentlemen:

          Acting as special legal counsel this opinion is furnished to you with respect to the
registration of interests with the International Registry (the “IR”) created pursuant to, and
according to the provisions of, the Convention on International Interests in Mobile Equipment (the
“Convention”), the Protocol to the Convention on International Interests in Mobile Equipment on
Matters Specific to Aircraft Equipment (the “Protocol”), both signed in Cape Town, South Africa on
November 16, 2001, together with the Regulations for the International Registry (the
“Regulations”), the International Registry Procedures (the “Procedures”), and all other rules,
amendments, supplements, and revisions thereto (collectively the “CTT”).

          Terms capitalized herein and not otherwise defined herein shall have the meanings given in the
CTT and on Schedule 3 attached hereto.

          Based upon our examination of such records of the IR as we deemed necessary to render this
opinion, it is our opinion that:

	 	1.	 	the Airframe and the Engines constitute Aircraft Objects based upon the
Interim Updatable List of Eligible Aircraft Objects compiled by the Federal Aviation
Administration;
	 
	 	2.	 	based upon the Priority Search Certificates dated ________ __, 2011 obtained
from the IR, copies of which are attached hereto as Schedule 2 and incorporated herein
by reference:

 

 

To the Parties Named on

Schedule 1 attached hereto

                    
______, 2011

Page 2

	 	(a)	 	the Airframe and the Engines are subject only to:

	 	(i)	 	the Lease International Interest, which has
been assigned to ___________ by the Lease Assignment Interest and to
the Collateral Agent by the Lease Security Assignment Interest; and,
	 
	 	(ii)	 	the Mortgage International Interest;

	 	(b)	 	the Lease International Interest has been duly registered on
the IR and constitutes a first priority International Interest in the Airframe
and the Engines; and,
	 
	 	(c)	 	the Mortgage International Interest has been duly
registered on the IR and constitutes an International Interest in the
Airframe and the Engines;
	 
	 	(d)	 	Right to Discharge A has been duly registered on the IR as
a Transfer of the Right to Discharge the Lease International Interest in
favor of the Collateral Agent;
	 
	 	(e)	 	the Lease Assignment Interest has been duly registered on
the IR as an Assignment of the Lease International Interest;
	 
	 	(f)	 	Right to Discharge B has been duly registered on the IR as
a Transfer of the Right to Discharge the Lease Assignment Interest in favor
of the Collateral Agent;
	 
	 	(g)	 	the Lease Security Assignment Interest has been duly
registered on the IR as an Assignment of the Lease Assignment Interest; and,
	 
	 	(h)	 	the Contract of Sale has been duly registered on the IR and
constitutes a Sale, with respect to the Airframe and the Engines;

 

 

To the Parties Named on

Schedule 1 attached hereto

                     ______ , 2011

Page 3

	 	3.	 	the CTT Interests are entitled to the priorities, protections and benefits of
the CTT, subject to the statements on Exhibit A attached hereto; and,
	 
	 	4.	 	no further registration on the IR of the CTT Interests is required under the
CTT in order to maintain the effectiveness and priority thereof.

          In the event the CTT Interests are not subject to the CTT, then the interests created thereby
are governed by applicable law.

          This opinion is subject to certain comments, limitations and assumptions as listed in Exhibit
A attached hereto and incorporated herein by reference.

	Very truly yours,
	 
	Robert M. Peregrin
	For the Firm

RMP\ms

     IF THERE IS A NOVATION WE WILL ADD A NEW LEASE INTERNATIONAL INTEREST, A RIGHT TO DISCHARGE IN
FAVOR OF THE COLLATERAL AGENT AND AN ASSIGNMENT OF THE LEASE INTERNATIONAL INTEREST IN FAVOR OF THE
COLLATERAL AGENT.

 

 

     SCHEDULE 1

Citibank, N.A., as administrative agent and collateral agent on behalf of the Lenders

Citigroup Global Markets Inc., as joint lead structuring agent and joint lead placement agent

Credit Suisse Securities (USA) LLC, as joint lead structuring agent and joint lead placement agent

BNP Paribas, as joint placement agent

The Lenders party to the Term Loan Credit Agreement as of the Effective Date and the Incremental
Lenders

 

 

     SCHEDULE 2

[the Priority Search Certificates attached hereto]

 

 

     SCHEDULE 3

     Description of Lease International Interest

          International Interest between ______________, as Debtor, and ____________, as Creditor,
registered with the International Registry on ________ __, ____, as set forth on the Priority
Search Certificates, with respect to the Airframe and the Engines.

     Description of Mortgage International Interest

          International Interest between ______________, as Debtor, and Citibank, N.A., as Creditor,
registered with the International Registry on ________ __, ____, as set forth on the Priority
Search Certificates, with respect to the Airframe and the Engines.

     Description of Lease Assignment Interest

          Assignment of an International Interest between ______________, as Assignor, and
_______________, as Assignee, registered with the International Registry on ________ __, ____, as
set forth on the Priority Search Certificates, with respect to the Airframe and the Engines.

     Description of Lease Security Assignment Interest

          Assignment of an Assignment of an International Interest between ______________, as Assignor,
and Citibank, N.A., as Assignee, registered with the International Registry on ________ __, ____,
as set forth on the Priority Search Certificates, with respect to the Airframe and the Engines.

     Description of Right to Discharge A

          Transfer of the Right to Discharge between _______________, as transferor, and Citibank, N.A.,
as transferee, with respect to the Lease International Interest, registered with the International
Registry on _____________ as set forth on the Priority Search Certificates, with respect to the
Airframe and the Engines.

 

 

     Description of Right to Discharge B

          Transfer of the Right to Discharge between _______________, as transferor, and Citibank, N.A.,
as transferee, with respect to the Lease Assignment Interest, registered with the International
Registry on _____________ as set forth on the Priority Search Certificates, with respect to the
Airframe and the Engines.

     Description of Contract of Sale

          Contract of Sale between __________________, as Seller, and _______________, as Buyer,
registered with the International Registry on ________ __, 2011, as set forth on the Priority
Search Certificates, with respect to the Airframe and the Engines.

     Description of CTT Interests

          The Lease International Interest, the Mortgage International Interest, the Lease Assignment
Interest, the Lease Security Assignment Interest, Right to Discharge A, Right to Discharge B and
the Contract of Sale are referred to collectively as the “CTT Interests”.

 

 

     EXHIBIT A

Assumptions and Limitations

In rendering the foregoing opinion we have assumed that:

	 	(i)	 	the Priority Search Certificates are accurate in all respects, contain all the
registered information and data on the IR in connection with the Airframe and the
Engines to which they relate, and have not been altered since the date of such Priority
Search Certificates;
	 
	 	(ii)	 	the IR descriptions of the Airframe and the Engines are as noted above and are
accurate and complete descriptions with respect to the registrations on the IR;
	 
	 	(iii)	 	the CTT Interests are effective to constitute an International Interest, an
Assignment of an International Interest, a Transfer of the Right to Discharge or a
Contract of Sale subject to the CTT and registration on the IR;
	 
	 	(iv)	 	all of the registrations indicated on the Priority Search Certificates are
fully and properly constituted and validly created under the CTT;
	 
	 	(v)	 	any registrations on the IR pertaining to the Airframe and the Engines are
valid, enforceable and sufficient under the relevant applicable law or the CTT to
create, effect or terminate the rights and interests they purport to create, effect or
terminate;
	 
	 	(vi)	 	there has been no subordination or variation of any priority that would be
acquired pursuant to the terms of the CTT, in connection with the registrations on the
IR evidenced by the Priority Search Certificates other than pursuant to any
subordination indicated on the Priority Search Certificates.

In addition, since our examination was limited to records maintained by the IR, our opinion is
subject to the following limitations:

	 	(i)	 	a search on the IR pursuant to the CTT requires that the searching party enter
the exact manufacturer, model or serial number of an airframe or engine being
searched using the appropriate drop-down boxes, where available, and if a
registration has been made on the IR against the Airframe and the Engines which
describes the Airframe and the Engines differently (i.e. any space,

A-1

 

	 	 	 	comma, dash,
added number or character, missing number or character, or any other discrepancy
whatsoever in the description of the manufacturer, model or serial number) the
Priority Search Certificates will produce an inaccurate search result; accordingly,
there may be registrations on the IR against the Airframe and the Engines which are
not reflected on the Priority Search Certificates and which may have priority over
subsequent registrations on the IR or filings with the FAA;
	 
	 	(ii)	 	in respect of rights derived from registrations with the IR does not cover
liens, claims or encumbrances which are perfected without the filing of notice
thereof;
	 
	 	(iii)	 	does not cover liens perfected in foreign jurisdictions, except to the
extent applicable law would regulate their priority based on registration with the IR;
and,
	 
	 	(iv)	 	does not cover any rights to arrest or detain an airframe or an engine under
any applicable law.

A-2

 

DFPH&J DRAFT

__/__/11

FAA Opinion with Lease II

(For the Letterhead of Daugherty, Fowler, Peregrin, Haught & Jenson)

________ __, 2011

To the Parties Named on 

       Schedule 1 attached hereto

			
	RE:	 	One (1) _______ model ______ (shown on the IR as ______ model ______) aircraft bearing
manufacturer’s serial number ______ and U.S. Registration No. N______ (the “Airframe”) and two
(2) ______ model ______ (shown on the IR as ______ model ______) aircraft engines bearing
manufacturer’s serial numbers ______ and ______ (the “Engines”)

Ladies and Gentlemen:

          Acting as special legal counsel in connection with the transactions contemplated by the
instruments described below, this opinion is furnished to you with respect to (i) the registration
of interests with the International Registry (the “IR”) created pursuant to, and according to the
provisions of, the Convention on International Interests in Mobile Equipment (the “Convention”),
the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific
to Aircraft Equipment (the “Protocol”), both signed in Cape Town, South Africa on November 16,
2001, together with the Regulations for the International Registry (the “Regulations”), the
International Registry Procedures (the “Procedures”), and all other rules, amendments, supplements,
and revisions thereto (collectively the “CTT”), all as in effect on this date in the United States
of America, as a Contracting State, and (ii) the recordation of instruments and the registration of
airframes with the Federal Aviation Civil Aircraft Registry (the “FAA”) under the requirements of
Title 49 of the United States Code (the “Transportation Code”).

          Terms capitalized herein and not otherwise defined herein shall have the meanings given in the
CTT and on Schedule 3 attached hereto.

 

 

To the Parties Named on

       Schedule 1 attached hereto

________ __, 2011

Page 2

          On ________ __, 2011, we examined and filed with the FAA the following described instruments
at the respective times listed below:

	 	(a)	 	AC Form 8050-2 Aircraft Bill of Sale dated ________ __, 2011 (the “FAA Bill of
Sale”) by International Lease Finance Corporation (“ILFC”), as seller, conveying title
to the Airframe to ____________, as owner trustee under the Trust Agreement (the “Owner
Trustee”), as purchaser, which FAA Bill of Sale was filed at _____ __ .m., C.S.T.;
	 
	 	(b)	 	AC Form 8050-1 Aircraft Registration Application dated ________ __, 2011 (the
“Aircraft Registration Application”) by the Owner Trustee, as applicant, with respect
to the Airframe, which Aircraft Registration Application was filed at _____ __.m.,
C.S.T.;
	 
	 	(c)	 	Affidavit of Citizenship dated ________ __, 2011 (the “Owner Trustee
Affidavit”) by the Owner Trustee pursuant to Section 47.7(c)(2)(iii) of the Federal
Aviation Regulations, which Owner Trustee Affidavit was filed at _____ __.m., C.S.T.;
	 
	 	(d)	 	Trust Agreement dated as of ________ __, 2011 (the “Trust Agreement”) between
_______, as trustor, and the Owner Trustee, which Trust Agreement was filed at _____
__.m., C.S.T.;
	 
	 	(e)	 	Assignment and Assumption Agreement dated ________ __, 2011 (the “Assignment”)
between ILFC, as assignor, and the Owner Trustee, as assignee, assigning all right,
title and interest of ILFC in the Lease, with respect to the Airframe and the Engines,
in favor of the Owner Trustee, which Assignment was filed at _____ __.m., C.S.T.;and,
	 
	 	(f)	 	FAA Aircraft Mortgage and Lease Security Assignment (MSN _______) dated as of
________ __, 2011 (the “Mortgage”) between the Owner Trustee, as grantor, and Citibank,
N.A., as collateral agent (the “Collateral Agent”), with respect to the Airframe, the
Engines and the Lease, as assigned by the Assignment, which Mortgage was filed at _____
__.m., C.S.T.

 

 

To the Parties Named on

     Schedule 1 attached hereto

________ __, 2011

Page 3

          We have also examined a copy of the Warranty Bill of Sale dated ________ __, 2011 (the
“Warranty Bill of Sale”) from ILFC, as seller, conveying title to the Airframe and the Engines to
the Owner Trustee, as purchaser.

          The interest created by the FAA Bill of Sale and the Warranty Bill of Sale is referred to
herein as the “CTT Sale”. The interest in the Airframe and the Engines created by the Mortgage is
referred to herein as the “CTT Security Interest”. The interest created by the Lease is referred
to herein as the “CTT Lease Interest”. The Transfer of the Right to Discharge the CTT Lease
Interest from ILFC, as transferor, to the Collateral Agent, as transferee, is referred to herein as
“CTT Right to Discharge A”. The interest created by the Assignment is referred to herein as the
“CTT Assignment Interest”. The Transfer of the Right to Discharge the CTT Assignment Interest from
the Owner Trustee, as transferor, to the Collateral Agent, as transferee, is referred to herein as
“CTT Right to Discharge B”. The security assignment in the Lease created by the Mortgage is
referred to herein as the “CTT Security Assignment Interest”. The CTT Sale, the CTT Security
Interest, the CTT Lease Interest, CTT Right to Discharge A, the CTT Assignment Interest, CTT Right
to Discharge B and the CTT Security Assignment Interest are referred to herein collectively as the
“CTT Interests”.

          Based upon our examination of the foregoing instruments and such records of the FAA and the IR
as we deemed necessary to render this opinion, it is our opinion that:

	 	1.	 	the Airframe and the Engines constitute Aircraft Objects based upon the Interim
Updatable List of Eligible Aircraft Objects compiled by the FAA;
	 
	 	2.	 	the Aircraft Registration Application, the Owner Trustee Affidavit and the
Trust Agreement are in due form for filing and have been duly filed with the FAA
pursuant to and in accordance with the Transportation Code;
	 
	 	3.	 	the FAA Bill of Sale, the Assignment and the Mortgage are in due form for
recordation by, and have been duly filed for recordation with, the FAA pursuant to and
in accordance with the Transportation Code;
	 
	 	4.	 	the Airframe is eligible for registration by the FAA for purposes of
the Transportation Code in the name of the Owner Trustee and the filing with the

 

 

To the Parties Named on

     Schedule 1 attached hereto

________ __, 2011

Page 4

	 	 	 	FAA of the FAA Bill of Sale, the Aircraft Registration Application, the Owner
Trustee Affidavit and the Trust Agreement will cause the FAA to register the
Airframe, in due course, in the name of the Owner Trustee, at which time the FAA
will issue an AC Form 8050-3 Certificate of Aircraft Registration in the name of the
Owner Trustee, pursuant to and in accordance with the Transportation Code;
	 
	 	5.	 	the owner of the Airframe for registration purposes at the FAA is the Owner
Trustee and the Airframe and the Engines are free and clear of liens and encumbrances
of record at the FAA except as created by:
	 
	 	(a)	 	the Lease, as assigned by the Assignment, which has been
assigned for security purposes to the Collateral Agent by the Mortgage; and,
	 
	 	(b)	 	the Mortgage;
	 
	 	6.	 	the Mortgage creates a duly perfected first priority security interest, subject
to the rights of the parties under the Lease, as assigned by the Assignment, in favor
of the Collateral Agent, pursuant to the Transportation Code, in the Airframe and the
Engines, it being understood that no opinion is rendered herein as to the validity,
priority or enforceability of such security interest under applicable local or foreign
law, or as to recognition of the perfection of the security interest as against third
parties in any legal proceeding outside the United States;
	 
	 	7.	 	the rights of the Owner Trustee, as lessor, and _______, as lessee, under the
Lease, as assigned by the Assignment, with respect to the Airframe and the Engines, are
perfected at the FAA;
	 
	 	8.	 	the Assignment creates a valid assignment of all of the right, title and
interest of ILFC in the Lease, with respect to the Airframe and the Engines, in favor
of the Owner Trustee;
	 
	 	9.	 	the Mortgage creates a duly perfected assignment for security purposes in favor of
the Collateral Agent of all of the right, title and interest of the Owner

 

 

To the Parties Named on

     Schedule 1 attached hereto

________ __, 2011

Page 5

	 	 	 	Trustee in, to and under the Lease, as assigned by the Assignment (insofar as such
assignment affects an interest covered by the recording system established by the
FAA pursuant to 49 U.S.C. Section 44107), it being understood that no opinion is
herein expressed as to the validity, priority or enforceability of such assignment
under local law or as to the recognition of the perfection of such assignment as
against third parties in any legal proceeding outside the United States;
	 
	 	10.	 	based upon the Priority Search Certificates dated ________ __, 2011 obtained
from the IR, copies of which are attached hereto as Schedule 2 and incorporated herein
by reference:

	 	(a)	 	the Airframe and the Engines are subject only to:

	 	(i)	 	the CTT Lease Interest, which has been assigned to
the Owner Trustee by the CTT Assignment Interest and to the Collateral
Agent by the CTT Security Assignment Interest; and,
	 
	 	(ii)	 	the CTT Security Interest;

	 	(b)	 	the CTT Lease Interest has been duly registered on the IR and
constitutes a first priority International Interest in the Airframe and the
Engines;
	 
	 	(c)	 	the CTT Security Interest has been duly registered on the IR
and constitutes an International Interest in the Airframe and the Engines;
	 
	 	(d)	 	CTT Right to Discharge A has been duly registered on the IR as
a Transfer of the Right to Discharge the CTT Lease Interest in favor of the
Collateral Agent;
	 
	 	(e)	 	the CTT Sale has been duly registered on the IR and constitutes
a Sale with respect to the Airframe and the Engines;

 

 

To the Parties Named on

     Schedule 1 attached hereto

________ __, 2011

Page 6

	 	(f)	 	the CTT Assignment Interest has been duly registered on the IR
as an Assignment of the CTT Lease Interest in favor of the Owner Trustee;
	 
	 	(g)	 	CTT Right to Discharge B has been duly registered on the IR as
a Transfer of the Right to Discharge the CTT Assignment Interest in favor of
the Collateral Agent; and,
	 
	 	(h)	 	the CTT Security Assignment Interest has been duly registered
on the IR as an Assignment of the CTT Assignment Interest in favor of the
Collateral Agent;

	 	11.	 	the CTT Interests are entitled to the priorities, protections and benefits of
the CTT, subject to the statements on Exhibit A attached hereto;
	 
	 	12.	 	no further registration on the IR of the CTT Interests is required under the
CTT in order to maintain the effectiveness and priority thereof and no other
registration of the Airframe or filings other than filings with the FAA (which have
been duly effected) are necessary in order to:

	 	(a)	 	maintain the registration of the Airframe in the name of the
Owner Trustee; and,
	 
	 	(b)	 	maintain the lien and priority of:

	 	(i)	 	the Lease, as assigned by the Assignment, with
respect to the Airframe and the Engines; and,
	 
	 	(ii)	 	the Mortgage, with respect to the Airframe, the
Engines and the Lease, as assigned by the Assignment; and,

	 	13.	 	no authorization, approval, consent, license or order of, or registration with,
or the giving of notice to, the FAA is required for the valid authorization, delivery
and performance of the Trust Agreement, the Lease, as assigned by the Assignment, or
the Mortgage, except for such filings as are referred to above and the prior filing of
the Lease with the FAA.

 

 

To the Parties Named on

     Schedule 1 attached hereto

________ __, 2011

Page 7

     In the event the CTT Interests are not subject to the CTT, then the interests created
thereby are governed by the Transportation Code or applicable law.

     This opinion is subject to certain comments, limitations and assumptions as listed in Exhibit
A attached hereto and incorporated herein by reference.

     In rendering this opinion we have relied upon the opinion of the Aeronautical Center Counsel
dated ________ __, 2011 a copy of which is attached hereto.

	 	 	 	 	 
	 	Very truly yours,

Robert M. Peregrin

For the Firm

 	 
	 

RMP\ms

 

 

     SCHEDULE 1

Citibank, N.A., as administrative agent and collateral agent on behalf of the Lenders

Citigroup Global Markets Inc., as joint lead structuring agent and joint lead placement agent

Credit Suisse Securities (USA) LLC, as joint lead structuring agent and joint lead placement agent

BNP Paribas, as joint placement agent

International Lease Finance Corporation

The Lenders party to the Term Loan Credit Agreement as of the Effective Date and the Incremental
Lenders

 

 

     SCHEDULE 2

[the Priority Search Certificates attached hereto]

 

 

     SCHEDULE 3

     Description of Lease

          Aircraft Lease Agreement dated ______ between ______, as lessor, and ______, as lessee, which
was recorded by the Federal Aviation Administration on ______ and assigned Conveyance No. _____.

 

 

     SCHEDULE 4

[United States Contracting State Search attached hereto]

 

 

     EXHIBIT A

Assumptions and Limitations

In rendering the foregoing opinion we have assumed that:

	 	(i)	 	the records maintained by the FAA are accurate in all respects;
	 
	 	(ii)	 	the Priority Search Certificates are accurate in all respects, contain all the
registered information and data on the IR in connection with the Airframe and the
Engines to which they relate, and have not been altered since the date of such Priority
Search Certificates;
	 
	 	(iii)	 	the IR descriptions of the Airframe and the Engines are as noted above and are
accurate and complete descriptions with respect to the registrations on the IR;
	 
	 	(iv)	 	at the time each of the Lease and the Mortgage was concluded, the Debtor was
situated, pursuant to the CTT, in the United States;
	 
	 	(v)	 	the necessary parties under each of the Warranty Bill of Sale, the Lease, the
Assignment and the Mortgage have given the consents in writing to the registration with
the IR of the interests in the Airframe and the Engines created thereby;
	 
	 	(vi)	 	each of the CTT Interests is effective under applicable local law to constitute
an Interest, a Sale, an Assignment or a Transfer of the Right to Discharge subject to
the CTT and registration on the IR;
	 
	 	(vii)	 	all of the registrations indicated on the Priority Search Certificates are
fully and properly constituted and validly created under the CTT;
	 
	 	(viii)	 	all documents identified in this opinion, all documents in the records maintained by
the FAA for the Airframe and the Engines, as well as any registrations on the IR
pertaining to the Airframe and the Engines, are valid, enforceable and sufficient under
the relevant applicable law or the CTT to create, effect or terminate the rights and
interests they purport to create, effect or terminate;

	 	(ix)	 	in rendering this opinion, we have assumed that:

A-1

 

	 	(a)	 	the Owner Trustee qualifies as a “citizen of the United States” as
defined in the Transportation Code;
	 
	 	(b)	 	the instruments described above are valid and enforceable under
applicable local law; and,
	 
	 	(c)	 	there are no documents with respect to the Airframe and the
Engines which have been filed for recordation with the FAA under the FAA’s
recording system but which have not yet been listed in the available records of
such system as having been so filed;

	 	(x)	 	there has been no subordination or variation of any priority that would be
acquired pursuant to the terms of the CTT, in connection with the registrations on the
IR evidenced by the Priority Search Certificates other than pursuant to any
subordination indicated on the Priority Search Certificates;
	 
	 	(xi)	 	the Airframe is not registered under the civil aircraft registry of any other
country;
	 
	 	(xii)	 	the Interim Updatable List of Eligible Aircraft Objects compiled by the FAA,
insofar as it relates to the Airframe and the Engines, is accurate in all respects;
	 
	 	(xiii)	 	the Airframe and the Engines have been accurately described by manufacturer’s name,
model and serial number by the parties in each of the Lease, the Assignment and the
Mortgage; and,
	 
	 	(xiv)	 	the United States Contracting State search certificate description of
declarations, withdrawals of declarations and categories of non-consensual rights or
interests, as communicated to the Registrar by UNIDROIT as the Depositary as having
been declared by the United States, and the date on which each such declaration or
withdrawal of declaration is recorded, are accurate in all respects. A copy of the
United States Contracting State Search dated ________ __, 2011 is attached hereto as
Schedule 4.

In addition, our opinion is subject to the following limitations:

A-2

 

	 	(i)	 	a search on the IR pursuant to the CTT requires that the searching party enter
the exact manufacturer, model or serial number of an airframe or engine being
searched using the appropriate drop-down boxes, where available, and if a
registration has been made on the IR against the Airframe and the Engines which
describes the Airframe and the Engines differently (i.e. any space, comma, dash,
added number or character, missing number or character, or any other discrepancy
whatsoever in the description of the manufacturer, model or serial number) the
Priority Search Certificates will produce an inaccurate search result; accordingly,
there may be registrations on the IR against the Airframe and the Engines which are
not reflected on the Priority Search Certificates and which may have priority over
subsequent registrations on the IR or filings with the FAA;
	 
	 	(ii)	 	the opinion relating to the registration of the Airframe with the FAA is issued
only as to its current eligibility for registration and not with respect to events
which may occur in the future which may affect the continued eligibility for
registration;
	 
	 	(iii)	 	as to matters of United States Citizenship as defined in the Transportation
Code, the undersigned has relied upon representations made in the Aircraft Registration
Application;
	 
	 	(iv)	 	because the FAA does not maintain registration records for engines for
nationality purposes, we cannot independently verify the owner, make, model, or serial
numbers of the Engines;
	 
	 	(v)	 	in rendering this opinion, we are subject to the accuracy of the FAA, its
employees and agents in the filing, indexing, cross-referencing, imaging and recording
of instruments filed with the FAA;
	 
	 	(vi)	 	no opinion is expressed herein as to laws other than the CTT and the
Transportation Code;
	 
	 	(vii)	 	this opinion as to the status of the records of the FAA as to the Airframe
covers only that period of time during which the Airframe has been subject to United
States Registration; and,
	 
	 	(viii)	 	since our examination was limited to records maintained by the FAA and the IR, our opinion:

A-3

 

	 	(a)	 	in respect of rights derived from FAA filings, does not cover
liens, claims or encumbrances of which the parties have actual notice as
contemplated by 49 U.S.C. §44108(a);
	 
	 	(b)	 	in respect of rights derived from FAA filings or registrations
with the IR, does not cover liens, claims or encumbrances which are perfected
without the filing of notice thereof with the FAA or the IR, including without
limitation, federal tax liens, liens arising under Section 1368(a) of Title 29
of the United States Code, liens arising under 49 U.S.C. §46304 and certain
artisan’s liens;
	 
	 	(c)	 	does not cover liens perfected in foreign jurisdictions, except
to the extent applicable law would regulate their priority based on registration
with the IR; and,
	 
	 	(d)	 	does not cover any rights to arrest or detain an airframe or an
engine under any applicable law.

A-4

 

EXHIBIT F

FORM OF NOTE

_________ __, 20__                               

     FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to
_____________________ or registered assigns (the “Lender”), in accordance with the
provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time
to time made by the Lender to the Borrower under that certain Term Loan Credit Agreement, dated as
of March 30, 2011 (as amended, restated, extended, supplemented or otherwise modified in writing
from time to time, the “Agreement”; the terms defined therein being used herein as therein
defined), among International Lease Finance Corporation, as an Obligor, Temescal Aircraft Inc., as
the Borrower, Park Topanga Aircraft Inc., as an Obligor, Charmlee Aircraft Inc., as an Obligor,
Ballysky Aircraft Ireland Limited, as an Obligor, the lenders identified therein, as Lenders,
Citibank, N.A., as the Administrative Agent, Citibank, N.A., as Collateral Agent, Citigroup Global
Markets Inc. and Credit Suisse Securities (USA) LLC as joint lead structuring agents and joint lead
placement agents, and BNP Paribas as joint placement agent.

     The Borrower promises to pay interest on the unpaid principal amount of each Loan from the
date of such Loan until such principal amount is paid in full, at such interest rates and at such
times as provided in the Agreement. All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately available funds at the
Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof until the date of
actual payment (and before as well as after judgment) computed at the per annum rate set forth in
the Agreement.

     This Note is one of the Notes referred to in the Agreement, is entitled to the benefits
thereof and may be prepaid in whole or in part subject to the terms and conditions provided
therein. This Note is also secured by the Collateral. Upon the occurrence and continuation of one
or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on
this Note shall become, or may be declared to be, immediately due and payable all as provided in
the Agreement. Loans made by the Lender shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Lender may also attach schedules
to this Note and endorse thereon the date, amount and maturity of its Loans and payments with
respect thereto.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Note. 

Term Loan Credit Agreement

F-1

 

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

	 	 	 	 	 
	 	TEMESCAL AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Term Loan Credit Agreement

F-2

 

LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of Principal	 	Outstanding	 	 
	 	 	 	 	End of Interest	 	or Interest Paid	 	Principal Balance	 	 
	Date	 	Amount of Loan Made	 	Period	 	This Date	 	This Date	 	Notation Made By
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 

Term Loan Credit Agreement

F-3

 

EXHIBIT G

FORM OF ADMINISTRATIVE QUESTIONNAIRE

[SEE ATTACHED]

Term Loan Credit Agreement

G-1

 

ADMINISTRATIVE QUESTIONNAIRE

[BORROWER]

	 	 	 	 	 	 	 

	Agent Address:

	 	2 Penns Way
	 	Return form to:
	 	Loan Syndications
	 

	 	Suite 100
	 	Telephone:
	 	302-894-[XXXX]
	 

	 	New Castle, DE 19720
	 	Facsimile:
	 	212-994-0961
	 

	 	 	 	E-mail:
	 	oploanswebadmin@citi.com

It is very important that all of the requested information be completed accurately and that this questionnaire be returned promptly. If your institution is sub-allocating its allocation, please fill out an administrative questionnaire for each legal entity.

Legal Name of Lender to appear in Documentation:

 

	 	 	 

	Signature Block
	 	 
	Information:
	 	 
	 

	 	 

	 	 	 	 	 	 	 

	 

	 	Signing Credit Agreement
	 	o Yes
	 	o No
	 
	 	 	 	 	 	 
	 

	 	Coming in via Assignment
	 	o Yes
	 	o No

	 	 	 

	Type of Lender:
	 	 
	 

	 	 

     (Bank, Asset Manager, Broker/Dealer, CLO/CDO; Finance Company, Hedge Fund, Insurance, Mutual Fund, Pension Fund, Other Regulated
Investment Fund, Special Purpose Vehicle, Other-please specify)

	 	 	 

	Lender Parent:
	 	 
	 

	 	 

	 	 	 

	Domestic Address

	 	Eurodollar Address
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 

Term Loan Credit Agreement

G-2

 

Contacts/Notification Methods: Borrowings, Paydowns, Interest, Fees, etc

	 	 	 	 	 

	 

	 	 Primary Credit Contact 
	 	Secondary Credit Contact
	Name:
	 	 	 	 
	 

	 	 
	 	 
	Company:
	 	 	 	 
	 

	 	 
	 	 
	Title:
	 	 	 	 
	 

	 	 
	 	 
	Address:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Telephone:
	 	 	 	 
	 

	 	 
	 	 
	Facsimile:
	 	 	 	 
	 

	 	 
	 	 
	E-Mail Address:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	Primary Operations Contact
	 	Primary Disclosure Contact
	Name:
	 	 	 	 
	 

	 	 
	 	 
	Company:
	 	 	 	 
	 

	 	 
	 	 
	Title:
	 	 	 	 
	 

	 	 
	 	 
	Address:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Telephone:
	 	 	 	 
	 

	 	 
	 	 
	Facsimile:
	 	 	 	 
	 

	 	 
	 	 
	E-Mail Address:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	Bid Contact
	 	L/C Contact
	Name:
	 	 	 	 
	 

	 	 
	 	 
	Company:
	 	 	 	 
	 

	 	 
	 	 
	Title:
	 	 	 	 
	 

	 	 
	 	 
	Address:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Telephone:
	 	 	 	 
	 

	 	 
	 	 
	Facsimile:
	 	 	 	 
	 

	 	 
	 	 
	E-Mail Address:
	 	 	 	 
	 

	 	 
	 	 

Term Loan Credit Agreement

G-3

 

Lender’s Domestic Wire Instructions

	 	 	 

	Bank Name:
	 	 
	 

	 	 
	ABA/Routing No.:
	 	 
	 

	 	 
	Account Name:
	 	 
	 

	 	 
	Account No.:
	 	 
	 

	 	 
	FFC Account Name:
	 	 
	 

	 	 
	FFC Account No.:
	 	 
	 

	 	 
	Attention:
	 	 
	 

	 	 
	Reference:
	 	 
	 

	 	 

Lender’s Foreign Wire Instructions

	 	 	 

	Currency:
	 	 
	 

	 	 
	Bank Name:
	 	 
	 

	 	 
	Swift/Routing No.:
	 	 
	 

	 	 
	Account Name:
	 	 
	 

	 	 
	Account No.:
	 	 
	 

	 	 
	FFC Account Name:
	 	 
	 

	 	 
	FFC Account No.:
	 	 
	 

	 	 
	Attention:
	 	 
	 

	 	 
	Reference:
	 	 
	 

	 	 

Agent’s Wire Instructions

	 	 	 

	Bank Name:

	 	[Citibank N.A.]
	ABA/Routing No.:

	 	[021000089]
	Account Name:

	 	[Agency/Medium Term Finance]
	Account No.:

	 	[36852248]

Term Loan Credit Agreement

G-4

 

					
	 	 	 	 	 
	Reference:
	 	[Company Name]
	 	 

Tax Documents

NON-U.S.
LENDER INSTITUTIONS:

I. Corporations:

If your institution is incorporated outside of the
United States for U.S. federal income tax purposes, and is the beneficial owner of the interest and
other income it receives, you must complete one of the following three tax forms, as
applicable to your institution: a.) Form W-8BEN (Certificate of Foreign Status of Beneficial
Owner), b.) Form W-8ECI (Income Effectively Connected to a U.S. Trade or Business), or c.) Form
W-8EXP (Certificate of Foreign Government or Governmental Agency).

A U.S. taxpayer identification
number is required for any institution submitting Form W-8ECI. It is also required on Form W-8BEN
for certain institutions claiming the benefits of a tax treaty with the U.S. Please refer to the
instructions when completing the form applicable to your institution. In addition, please be
advised that U.S. tax regulations do not permit the acceptance of faxed forms. An original tax
form must be submitted.

II. Flow-Through Entities:

If your institution is organized
outside the U.S., and is classified for U.S. federal income tax purposes as either a Partnership,
Trust, Qualified or Non-Qualified Intermediary, or other non-U.S. flow-through entity, an original
Form W-8IMY (Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S.
Branches for United States Tax Withholding) must be completed by the intermediary together with a
withholding statement. Flow-through entities other than Qualified Intermediaries are required to
include tax forms for each of the underlying beneficial owners.

Please refer to the
instructions when completing this form. In addition, please be advised that U.S. tax regulations
do not permit the acceptance of faxed forms. Original tax form(s) must be submitted.

U.S.
LENDER INSTITUTIONS:

If your
institution is incorporated or organized within the United States, you must
complete and return Form W-9 (Request for Taxpayer Identification Number and Certification).
Please be advised that we request that you submit an original Form W-9.

Pursuant to the language
contained in the tax section of the Credit Agreement, the applicable tax form for your institution
must be completed and returned prior to the first payment of income. Failure to provide the proper
tax form when requested may subject your institution to U.S. tax withholding.

Term Loan Credit Agreement

G-5

 

EXHIBIT H

FORM OF INTERCREDITOR AGREEMENT

[SEE ATTACHED]

Term Loan Credit Agreement

H-1

 

INTERCREDITOR AGREEMENT

     INTERCREDITOR AGREEMENT (this “Agreement”), dated as of March 30, 2011, among PARK
TOPANGA AIRCRAFT INC., a California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC.,
a California corporation (“Borrower”), CHARMLEE AIRCRAFT INC., a California corporation
(“CA Subsidiary Holdco”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability
company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”), INTERNATIONAL
LEASE FINANCE CORPORATION, a California corporation (“ILFC”), and CITIBANK, N.A.
(“Citibank”), as the Collateral Agent.

     WHEREAS, ILFC, Parent Holdco, the Borrower, the CA Subsidiary Holdco, the Irish Subsidiary
Holdco, the lenders from time to time party thereto, Citibank, as the administrative agent,
Citibank, as the collateral agent, Citigroup Global Markets Inc. and Credit Suisse Securities (USA)
LLC, as joint lead structuring agents and joint lead placement agents, and BNP Paribas, as joint
placement agent, are parties to that certain Term Loan Credit Agreement, dated as of March 30, 2011
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”);

     WHEREAS, Parent Holdco, the Borrower, the Subsidiary Holdcos, the other grantors from time to
time party to thereto and Citibank, as the collateral agent, are parties to that certain Aircraft
Mortgage and Security Agreement, dated as of March 30, 2011 (as amended, supplemented or otherwise
modified from time to time, the “Security Agreement” and, together with the Credit
Agreement and the other Loan Documents as defined in the Credit Agreement, the “Loan
Documents”);

     WHEREAS, to secure the Secured Obligations, each of Parent Holdco, the Borrower and each
Subsidiary Holdco has granted a first priority security interest in the Collateral to the
Collateral Agent, for its benefit and the benefit of the other Secured Parties;

     WHEREAS, from time to time, (i) ILFC will make certain unsecured and subordinated intercompany
loans to certain Obligors subject to this Agreement, (ii) Parent Holdco will make certain unsecured
and subordinated intercompany loans to certain Obligors subject to this Agreement and pledged
pursuant to the Security Agreement, (iii) the Borrower will make certain unsecured and subordinated
intercompany loans to certain Obligors subject to this Agreement and pledged pursuant to the
Security Agreement, (iv) the CA Subsidiary Holdco will make certain unsecured and subordinated
intercompany loans to certain Obligors subject to this Agreement and pledged pursuant to the
Security Agreement and (v) Irish Subsidiary Holdco will make certain unsecured and subordinated
intercompany loans to certain Obligors subject to this Agreement and pledged pursuant to the
Security Agreement;

     WHEREAS, the parties hereto are entering into this Agreement to set forth certain arrangements
with respect to the subordination of the Intercompany Debt Obligations to the Secured Obligations;

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

1

 

     Section 1. Definitions. The following terms shall have the following meanings:

     “Agreement” shall have the meaning assigned to such term in the preamble.

     “Borrower” shall have the meaning assigned to such term in the preamble.

     “CA Subsidiary Holdco” shall have the meaning assigned to such term in the preamble.

     “Citibank” shall have the meaning assigned to such term in the preamble.

     “ILFC” shall have the meaning assigned to such term in the preamble.

     “Insolvency Event” shall mean any event or occurrence described in clauses (g), (h) or
(i) of Article 6 of the Credit Agreement.

	 	 	“Intercompany Debt” means the Pledged Debt and the Unpledged Intercompany Debt.

     “Intercompany Debt Documents” means, collectively any note, agreement or other
instrument evidencing Intercompany Debt and any certificates or designations delivered in
connection therewith.

     “Intercompany Debt Default” shall mean any breach or default by the relevant obligor
under any Intercompany Debt Document or in respect of any Intercompany Debt Obligation.

     “Intercompany Debt Obligations” means Intercompany Debt and all other obligations in
respect thereof or related thereto.

     “Intercompany Lenders” means ILFC, Parent Holdco, the Borrower, CA Subsidiary Holdco,
Irish Subsidiary Holdco and each of their respective, successors and assigns.

     “Irish Subsidiary Holdco” shall have the meaning assigned to such term in the
preamble.

     “Parent Holdco” shall have the meaning assigned to such term in the preamble.

     “Unpledged Intercompany Debt” means any and all Indebtedness from time to time owing
by any Obligor to ILFC.

     Capitalized terms not otherwise defined herein shall have the meanings assigned thereto in the
Security Agreement, including by reference to the Credit Agreement.

     Section 2. Agreement of Intercompany Lenders. Each Intercompany Lender hereby agrees
that (i) it shall not grant any Lien on the Pledged Debt Collateral to any Person except the
Secured Parties pursuant to the Loan Documents and (ii) it shall not to consent to any action of
any Person contrary to the terms of this Agreement, in each case, except as otherwise permitted
under the Loan Documents.

     Section 3. Terms of Subordination of Intercompany Debt Obligations. The Intercompany
Debt Obligations shall be subordinate and junior in right of payment to the full and prior payment
in cash of the Obligations to the extent and in the manner hereinafter set forth:

2

 

          (a) Upon the occurrence and during the continuance of an Event of Default and the Loans have
been accelerated and for so long as such acceleration shall not have been rescinded, (i) each
Intercompany Lender hereby authorizes and empowers the Collateral Agent acting on behalf of the
Secured Parties and, subject to the terms and conditions hereof, to demand, sue for, collect and
receive every payment or distribution made on or in respect of the Intercompany Debt Obligations
thereafter, and to file claims and take such other proceedings, in the name of the holders of the
Intercompany Debt Obligations, as the Collateral Agent acting on behalf of the Secured Parties may
deem necessary or advisable for the enforcement of the provisions hereof and (ii) each Intercompany
Lender further agrees duly and promptly to take such action as may be requested by the Collateral
Agent acting on behalf of the Secured Parties to collect the indebtedness evidenced by any note
issued under the Intercompany Debt Documents or otherwise owing to it under the Intercompany Debt
Documents and/or to file appropriate proofs of claim in respect to such indebtedness, and to
execute and deliver to the Collateral Agent acting on behalf of the Secured Parties on demand such
powers of attorney, proofs of claim, assignments of claim or proofs of claim (but in any such case
without any recourse, representation or warranty), or other instruments as may be requested by the
Collateral Agent acting on behalf of the Secured Parties to enforce any and all claims upon or with
respect to or otherwise owing to it under the Intercompany Debt Documents.

          (b) Upon the occurrence and during the continuance of an Event of Default and the Loans have
been accelerated and for so long as such acceleration shall not have been rescinded, the Collateral
Agent acting on behalf of the Secured Parties may, at any time and from time to time, without the
consent of or notice to any Intercompany Lenders, without incurring responsibility to such holders
and without impairing or releasing any of the rights of the Secured Parties, or any of the
obligations of Intercompany Lenders hereunder:

          (i) subject to the terms hereof and the Loan Documents, sell, exchange, release or
otherwise deal with all or any part of any property by whomsoever mortgaged or pledged to
secure, or howsoever securing, the Intercompany Debt Obligations for application as provided
in the Loan Documents;

          (ii) except as otherwise expressly provided in this Agreement or the Loan Documents,
exercise or refrain from exercising any rights against any Intercompany Lender or any other
Person; and

          (iii) apply any sums, by whomsoever paid or however realized, as provided in the Loan
Documents.

          (c) Upon the occurrence and during the continuance of an Event of Default and the Loans have
been accelerated and for so long as such acceleration shall not have been rescinded, all payments
or distributions upon or with respect to the Intercompany Debt Obligations or proceeds of the
Intercompany Debt Obligations thereafter that are received by any Intercompany Lender contrary to
the provisions of this Agreement shall be received for the
benefit of the Secured Parties, shall be segregated from other funds and property held by the
Secured Parties in trust for the Secured Parties and shall be forthwith paid over to the Collateral
Agent in the same form as so received (with any necessary endorsement) to be applied (in the case
of cash) to or held as collateral (in the case of non-cash property or securities) for the

3

 

payment
or prepayment of the Obligations owed to the Secured Parties in accordance with the terms hereof.
For the avoidance of doubt, so long as no Event of Default has occurred and is continuing and the
Loans have been accelerated and for so long as such acceleration shall not have been rescinded,
each Intercompany Lender may receive (free and clear of any Lien) payments in respect of
Intercompany Debt Obligations and the Obligors may make payments in respect thereof.

          (d) Upon the occurrence and continuance of an Event of Default and the Loans have been
accelerated and for so long as such acceleration shall not have been rescinded (i) no payment,
prepayment or redemption (including any payment that may be payable by reason of any other
indebtedness of any Obligor being subordinated to payment of the Intercompany Debt Obligations)
shall be made by or on behalf of any Obligor for or on account of any Intercompany Debt
Obligations, and the Intercompany Lenders shall not take or receive from any Obligor, directly or
indirectly, in cash, other property, or any rights or by set-off or in any other manner, including
from or by way of collateral or otherwise, payment of all or any of the Intercompany Debt
Obligations, unless and until each of the Obligations shall have been indefeasibly paid in full and
(ii) any payment or distribution of any kind (whether in cash, property or securities) that
otherwise would be payable or deliverable upon or with respect to the Intercompany Debt Obligations
shall be paid or delivered directly to the Collateral Agent for application (in the case of cash)
to, or as collateral (in the case of non-cash property or securities) for the payment or prepayment
of the Obligations until the Obligations shall have been indefeasibly paid in full.

          (e) Each Intercompany Lender agrees that it may not commence any action or proceeding against
any Obligor or any other Person obligated in respect of any Intercompany Debt Documents in respect
of the Pledged Debt Collateral or the Intercompany Debt Obligations to recover all or any part of
any sum owing to it under any Intercompany Debt Document or join with any creditor, unless the
Collateral Agent shall also join in bringing any such action or proceeding or the Collateral Agent
otherwise consents.

          (f) No payment or distribution of assets to which any holder of the Intercompany Debt
Obligations would have been entitled except for the provisions of this Section 3, and which shall
have been received by the Secured Parties shall, as between any Obligor or other obligor thereon,
its creditors, and the holder of the Intercompany Debt Obligations, be deemed to be a payment by
the relevant Obligor or such other obligor to the holders of the Intercompany Debt Obligations for
or on account of the Intercompany Debt Obligations, and from and after the payment in full of all
Obligations and all other amounts owing to the holders thereof under the Loan Documents, the
holders of the Intercompany Debt Obligations shall be subrogated to the then or thereafter existing
rights of the Collateral Agent or the Secured Parties, as the case may be, to receive payments or
distributions of assets of Parent Holdco or such other obligor made on or in respect of the
Obligations or such other amounts until the principal of, and interest on, the Intercompany Debt
Obligations and all other amounts owing to the holders thereof under the Intercompany Debt
Documents shall be paid in full in
cash. The Intercompany Lenders agree that no payment or distributions to the Secured Parties
pursuant to the provisions of this Agreement shall entitle any Intercompany Lender to exercise any
rights of subrogation in respect thereof until no Loans are outstanding and all Obligations owed to
the Secured Parties shall have been paid in full.

4

 

          (g) The provisions of this Section 3 are solely for the purpose of defining the relative
rights of the Secured Parties on the one hand, and the holders of the Intercompany Debt Obligations
on the other hand, and nothing herein shall impair the obligation of the relevant Obligor, which is
unconditional and absolute, to pay to the holders of the Intercompany Debt Obligations, subject to
the terms hereof, all amounts payable hereunder and under the other Intercompany Debt Documents in
accordance with the terms and the provisions thereof.

          (h) The Collateral Agent is hereby authorized to demand specific performance of this Agreement
at any time when any of the Intercompany Lenders shall have failed to comply with any of the
provisions of this Agreement applicable to them. The Intercompany Lenders hereby irrevocably waive
any defense based on the adequacy of a remedy at law that might be asserted as a bar to such remedy
of specific performance.

          (i) Each Intercompany Lender shall cause the Intercompany Debt Obligations to be evidenced by
an instrument endorsed with the following legend:

“THE INDEBTEDNESS EVIDENCED BY THIS INSTRUMENT IS SUBORDINATED TO THE PRIOR PAYMENT IN FULL
OF THE OBLIGATIONS (AS DEFINED IN THE INTERCREDITOR AGREEMENT HEREINAFTER REFERRED TO)
PURSUANT TO, AND TO THE EXTENT PROVIDED IN, THE INTERCREDITOR AGREEMENT DATED AS OF MARCH
30, 2011, AS THE SAME MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME,
BY INTERNATIONAL LEASE FINANCE CORPORATION, TEMESCAL AIRCRAFT INC., PARK TOPANGA AIRCRAFT
INC., CHARMLEE AIRCRAFT INC., BALLYSKY AIRCRAFT IRELAND LIMITED, AND CITIBANK, N.A., AS THE
COLLATERAL AGENT.”

          (j) Each Intercompany Lender shall further mark its books of account in such a manner as
shall be effective to give proper notice of the effect of this Agreement.

     Section 4. Amendments. This Agreement may be amended only upon execution and
delivery of an amendment or supplement hereto executed by the Collateral Agent, ILFC, Parent
Holdco, the Borrower and each Subsidiary Holdco.

     Section 5. Negative Covenants of Intercompany Lenders. So long as any Obligations
shall be secured by the Pledged Debt Collateral and prior to the full and final payment in cash of
the Obligations, no Intercompany Lender shall, without the prior written consent of the Collateral
Agent:

          (a) sell, assign or otherwise transfer, in whole or in part, the Intercompany Debt Obligations
or any interest therein to any other Person (other than an Affiliate that agrees to be bound to the
provisions of this Agreement or an Intercompany Lender) or create, incur or
suffer to exist any security interest, lien, charge or other encumbrance whatsoever upon the
Intercompany Debt Obligations (except a Permitted Lien);

          (b) permit the Intercompany Debt Documents to be amended, modified or otherwise supplemented
in any respect, in each case, without the express prior written consent of the Collateral Agent, if
the effect of any such amendment, modification or supplement is to

5

 

(i) purport to grant a security
interest in the Pledged Debt Collateral or (ii) contest any rights of the Collateral Agent or
obligations of the Intercompany Lenders hereunder; and

          (c) commence, or join with any creditors other than the Collateral Agent in commencing, any
involuntary Insolvency Event against any Obligor for which such Intercompany Lender holds
Intercompany Debt Obligations, or prosecute in the case of any Insolvency Event any motion for
adequate protection (or any comparable request for relief) based solely upon their interest in the
Intercompany Debt Obligations under the Intercompany Debt Documents.

     Section 6. Miscellaneous.

          (a) Jurisdiction; Consent to Service of Process  (i) To the extent permitted
by applicable law, each party hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the exclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York County, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement or the other Loan Documents,
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 shall affect any right that any
Secured Party may otherwise have to bring any action or proceeding relating to this Agreement or
the other Loan Documents against any Borrower Party or its properties in the courts of any
jurisdiction.

          (ii) Each party hereto hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that 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 or the other Loan Documents in any New York State or federal court described
above. 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.

          (iii) Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 6. Nothing in this Agreement will affect the right
of any party to this Agreement to serve process in any other manner permitted by law.

     (b) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY 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 (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR

6

 

OTHERWISE, THAT SUCH OTHER PERSON
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 AND THE OTHER
LOAN DOCUMENTS, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     (c) GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK.

     (d) Notices and Communications. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier or electronic mail as
follows, and all notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:

If to ILFC, Parent Holdco, the Borrower, CA Subsidiary Holdco or Irish Subsidiary
Holdco to:

International Lease Finance Corporation

10250 Constellation Blvd.

Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Facsimile: (310) 788-1990

Telephone: (310) 788-1999

Email: legalnotices@ilfc.com

If to the Collateral Agent, to:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile: (212) 657-2762

or, as to each party, at such other address as shall be designated by such party in a written
notice to each other party complying as to delivery with the terms of this Section 6. Notices and
other communications sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices and other communications
sent by telecopier shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).

7

 

     (e) Delivery of Documents. All documents required to be delivered to the Collateral
Agent shall be delivered in accordance with the provisions of Section 5.09(c) of the Credit
Agreement.

     (f) Enforcement. Each of the Intercompany Lenders agrees that this Agreement shall be
enforceable against it and the other Intercompany Lenders, respectively, under all circumstances,
including in any proceeding relating to an Insolvency Event.

     (g) Obligations of Intercompany Lenders Not Affected. All rights and interests of
the Collateral Agent and the other Secured Parties hereunder and under any other Loan Document, and
all agreements and obligations of the Intercompany Lenders under this Agreement and any
Intercompany Debt Document to any Secured Party, shall remain in full force and effect irrespective
of:

     (i) any lack of validity or enforceability of any Loan Document, Assigned Document,
Intercompany Debt Document or any other agreement or instrument relating thereto;

     (ii) any change in the time, manner or place of payment of, the security for, or in
any other term of, all or any of the Secured Obligations, the Intercompany Debt Obligations
or any other amendment or waiver of or any consent to any departure from any Loan Document,
Assigned Document, Intercompany Debt Document or any other agreement or instrument relating
thereto;

     (iii) any taking, exchange, release or non-perfection of the Pledged Debt Collateral
or any other collateral, or taking, release or amendment or waiver of or consent to
departure from any guaranty, for all or any of the Secured Obligations or the Intercompany
Debt Obligations;

     (iv) any manner of application of Pledged Debt Collateral, or proceeds thereof, to all
or any of the Secured Obligations, or any manner of sale or other disposition of any Pledged
Debt Collateral for all or any of the Secured Obligations or any other assets of the
Grantors;

     (v) any change, restructuring or termination of the corporate structure or existence
of any Grantor; or

     (vi) any other circumstance that might otherwise constitute a defense available to, or
a discharge of, the Intercompany Lenders, a subordinated creditor or a secured subordinated
creditor or a Person deemed to be a surety.

This Agreement shall continue to be effective or shall be revived or reinstated, as the case may
be, if at any time any payment of any of the Secured Obligations owed to any Secured Party is
rescinded or must otherwise be returned by any Secured Party upon the insolvency, bankruptcy or
reorganization of any Grantor, or otherwise, all as though such payment had not been made.

8

 

     (h) Benefit of Agreement. This Agreement shall be binding upon, and inure to the
benefit of, and be enforceable by, the parties hereto and thereto and their respective successors,
permitted assigns and transferees.

     (i) Further Assurances. Each of the Intercompany Lenders shall, at the expense of the
relevant Grantors at any time and from time to time promptly execute and deliver all further
instruments and documents, and take all further action, that the Collateral Agent, as applicable,
may reasonably request, in order to protect any right or interest granted or purported to be
granted hereby or to enable the Collateral Agent, respectively, to exercise and enforce its rights
and remedies hereunder.

     (j) Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement, the other Loan Documents and the Intercompany Debt Documents constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. Delivery of
an executed counterpart of a signature page of this Agreement by telecopy or electronic mail will
be effective as delivery of a manually executed counterpart of this Agreement.

     (k) Severability. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall
not in any way be affected or impaired.

     (l) Collateral Agent. The Collateral Agent’s actions pursuant hereto are solely in
its capacity as Collateral Agent under the Loan Documents, and are subject to the provisions of
Article V and VII of the Security Agreement and Article 8 and Section 9.16 of the Credit Agreement.
The Collateral Agent shall have no obligations under this Agreement with respect to any
Intercompany Lender other than as provided in the Loan Documents and other than to distribute funds
as provided therein. In no event will the Collateral Agent or any Secured Party be liable
whatsoever for any act or omission on the part of Parent Holdco or any Intercompany Lender.

[Remainder of Page Intentionally Left Blank]

9

 

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

	 	 	 	 	 
	 	CITIBANK, N.A., as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INTERNATIONAL LEASE
FINANCE CORPORATION

 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PARK TOPANGA AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TEMESCAL AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CHARMLEE AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

10

 

	 	 	 	 	 

	 	 	 	 	 
	 	BALLYSKY AIRCRAFT IRELAND
LIMITED	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

11

 

EXHIBIT I

FORM OF LTV CERTIFICATE

INTERNATIONAL LEASE FINANCE CORPORATION

LTV CERTIFICATE

_______ __, 20__

     This LTV Certificate is delivered pursuant to Section 5.09(a)(vii) of that certain Term Loan
Credit Agreement dated as of March 30, 2011 (as amended, restated or otherwise modified from time
to time, the “Credit Agreement”), among International Lease Finance Corporation, as an Obligor,
Temescal Aircraft Inc., as the Borrower, Park Topanga Aircraft Inc., as an Obligor, Charmlee
Aircraft Inc., as an Obligor, Ballysky Aircraft Ireland Limited, as an Obligor, the lenders
identified therein, as Lenders, Citibank, N.A., as the Administrative Agent, Citibank, N.A., as
Collateral Agent, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC as joint
lead structuring agents and joint lead placement agents, and BNP Paribas as joint placement agent.
Capitalized terms used and not defined herein have the meanings given to such terms in the Credit
Agreement.

     The undersigned hereby certifies in his/her capacity as [chief financial officer][principal
accounting officer][treasurer][controller] of the Borrower and not in his/her individual capacity,
that

	 	(i)	 	The [Initial Test Date]/[LTV Determination Date] is _______ __, 20__;
	 
	 	(ii)	 	The aggregate outstanding principal amount of the Loans as of such [Initial
Test Date]/[LTV Determination Date] is $[__________________]. For the avoidance of
doubt, any payment or prepayment of the Loans on or before such [Initial Test
Date]/[LTV Determination Date] has been taken into account;
	 
	 	(iii)	 	The aggregate Appraised Value of all Pool Aircraft included in the Designated
Pool as of such [Initial Test Date]/[LTV Determination Date] is $[_________________];
	 
	 	(iv)	 	The ratio of (ii) to (iii) is _____ (the “Loan-to-Value Ratio”);
	 
	 	(v)	 	The aggregate outstanding principal amount of the Loans as of such LTV
Determination Date, immediately prior to giving effect to each Removal and Deemed
Removal and prior to giving effect to any related or prior payment, is
$[__________________]; [only include if the LTV Determination Date occurs because of a
Removal or Deemed Removal]

Term Loan Credit Agreement

I-1

 

	 	(vi)	 	The aggregate Appraised Value of all Pool Aircraft included in the Designated
Pool as of such LTV Determination Date, immediately prior to giving effect to each
Removal or Deemed Removal, is $[_________________]; [only include if the LTV
Determination Date occurs because of a Removal or Deemed Removal]
	 
	 	(vii)	 	The ratio of (v) to (vi) is _____ (the “Prior Loan-to-Value Ratio”); [only
include if the LTV Determination Date occurs because of a Removal or Deemed Removal]
	 
	 	(viii)	 	The Loan-to-Value Ratio [does] [does not] exceed [65.0%] [the Maximum LTV then in
effect];
	 
	 	(ix)	 	The Loan-to-Value Ratio [does] [does not] exceed the Prior Loan-to-Value Ratio;
[only include if the LTV Determination Date occurs because of a Removal]
	 
	 	(x)	 	[The Borrower will, within [insert number of days required pursuant to Section
5.16] following the [Initial Test Date] [LTV Determination Date], prepay [all of the
Loans][a portion of the Loans in the amount of $[____________];]
	 
	 	(xi)	 	[The Borrower will, within [insert number of days required pursuant to Section
5.16] following the LTV Determination Date, deposit Interim Cash into the Collateral
Account in the amount of $[____________];]
	 
	 	(xii)	 	[The Obligors [have transferred][will, within [insert number of days required
pursuant to Section 5.16] days following the delivery of this LTV Certificate,
transfer] to an Owner Subsidiary the following Non-Pool Aircraft: _____________;]
	 
	 	(xiii)	 	[The required Appraisals with respect to the Aircraft proposed to be added pursuant
to an LTV Cure are not yet available, so this LTV Certificate (x) has been prepared
using approximate Appraised Values estimated by ILFC in good faith and (y) when the
required Appraisals are available and not later than the addition of such Aircraft, an
updated and completed LTV Certificate with respect to and dated as of the LTV
Determination Date attaching the three Appraisals required to be provided with respect
to such Aircraft shall be delivered]. [only include as applicable according to Section
5.09(a)(vii)]
	 
	 	(xiv)	 	Set forth on Annex I attached hereto is a complete list of all PS Pool
Aircraft [identifying which are Pool Aircraft and Undelivered Pool Aircraft] as of the
date hereof (which list shall replace Schedule 3.17(a) to the Credit Agreement upon
delivery of this LTV Certificate);
	 
	 	(xv)	 	Set forth on Annex [II] attached hereto is a complete list of the
Leases of all PS Pool Aircraft as of the date hereof (which list shall replace Schedule
3.17(b) to the Credit Agreement); [only include if an Annual Anniversary]

Term Loan Credit Agreement

I-2

 

	 	(xvi)	 	Set forth on Annex [III] attached hereto is a calculation of the Pool
Specifications of the PS Pool Aircraft as of the [Initial Test Date] / [LTV
Determination Date], after giving effect to any LTV Cure described herein;
	 
	 	(xvii)	 	Attached as Annex [IV] [are three Appraisals, each conducted by a Qualified
Appraiser, of] / [is a description of the approximate Appraised Values estimated in
good faith by ILFC with respect to], any Aircraft added (or being proposed to be added
pursuant to an LTV Cure) to the Designated Pool since the [Effective Date] [immediately
preceding LTV Determination Date]; and
	 
	 	(xviii)	 	Attached as Annex [V] attached hereto is a lease report; [only include if an
Annual Anniversary, in the form attached as Annex [V] to this form certificate].

     IN WITNESS WHEREOF, the undersigned Financial Officer of the Borrower has signed this LTV
Certificate as of the date first written above.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Term Loan Credit Agreement

I-3

 

ANNEX I to LTV CERTIFICATE

PS POOL AIRCRAFT

	 	 	Pool Aircraft:

	 	 	[                ]

	 	 	Undelivered Pool Aircraft:

	 	 	[                ]

Term Loan Credit Agreement

I-4

 

ANNEX [II] to LTV CERTIFICATE

LEASES

Term Loan Credit Agreement

I-5

 

ANNEX [III] to LTV CERTIFICATE

Below is the calculation of the Pool Specifications of the PS Pool Aircraft as of the [Initial Test
Date] / [LTV Determination Date], after giving effect to any relevant LTV Cure:

	 	(i)	 	the aggregate Appraised Value of a single type of Widebody Aircraft at such
time is _______%, which does not exceed 35% of the aggregate Appraised Value of all PS
Pool Aircraft at such time;
	 
	 	(ii)	 	the aggregate Appraised Value of all Widebody Aircraft at such time is
_______%, which does not exceed 55% of the aggregate Appraised Value of all PS Pool
Aircraft at such time;
	 
	 	(iii)	 	the aggregate Appraised Value of all Permitted Aircraft Types at such time is
_______%, which is 100% of the aggregate Appraised Value of all PS Pool Aircraft at
such time;
	 
	 	(iv)	 	the aggregate Appraised Value of all PS Pool Aircraft leased to a single Lessee
at such time is _______%, which does not exceed 25% of the aggregate Appraised Value of
all PS Pool Aircraft at such time (excluding any PS Pool Aircraft leased to a Lessee
that results from the merger of two or more Lessees, if the affected Lease of such PS
Pool Aircraft was included in the Collateral prior to such merger);
	 
	 	(v)	 	the aggregate Appraised Value of all PS Pool Aircraft leased to Lessees based
or domiciled in any single country at such time is _______%, which does not exceed 40%
of the aggregate Appraised Value of all PS Pool Aircraft at such time; and
	 
	 	(vi)	 	the Average Age of all PS Pool Aircraft at such time is _______, which does not
exceed 5.86 years, plus the amount of time elapsed since the date of the Credit
Agreement, plus 6 months.

Term Loan Credit Agreement

I-6

 

ANNEX [IV] to LTV CERTIFICATE

APPRAISALS

Term Loan Credit Agreement

I-7

 

ANNEX [V] to LTV CERTIFICATE

CONFIDENTIAL AND PROPRIETARY

LEASE REPORT

PART A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MSN	 	 	Aircraft Type	 	 	Lessee	 	 	Country	 	 	Region	 	 	Date of Delivery	 	 	Lease End	 

PART B

	 	 	Leases under which the Lessee is in arrears for 90 or more days:

PART C

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total Rent due from	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[__]* to scheduled	 	 	Early termination	 	 	Security deposits	 
	Model	 	 	MSN	 	 	Lessee	 	 	Reg. #	 	 	Currency	 	 	Lease end	 	 	option	 	 	held as of [___]*	 
	 
	 

 

			
	*	 	Insert date on or about the date of the LTV Certificate.

Term Loan Credit Agreement

I-8

 

EXHIBIT J

FORM OF ADVANCE REQUEST

___________, __ 201__

Citibank, N.A., as Administrative Agent

Citibank, N.A., as Collateral Agent

Ladies and Gentlemen:

     Reference is made herein to the Term Loan Credit Agreement dated as of March 30, 2011 (as
amended, restated or otherwise modified from time to time, the “Credit Agreement”), among
International Lease Finance Corporation, as an Obligor, Temescal Aircraft Inc., as the Borrower,
Park Topanga Aircraft Inc., as an Obligor, Charmlee Aircraft Inc., as an Obligor, Ballysky Aircraft
Ireland Limited, as an Obligor, the lenders identified therein, as Lenders, Citibank, N.A., as the
Administrative Agent, Citibank, N.A., as Collateral Agent, Citigroup Global Markets Inc. and Credit
Suisse Securities (USA) LLC as joint lead structuring agents and joint lead placement agents, and
BNP Paribas as joint placement agent. Capitalized terms not otherwise defined herein, shall have
the meaning assigned to such terms in the Credit Agreement.

     The Borrower hereby gives the Administrative Agent and Collateral Agent notice pursuant to
Section 2.02 of the Credit Agreement that the Borrower hereby requests an advance of the Loans, in
an amount and pursuant to the conditions set forth below and under the Credit Agreement (the
“Advance”) in connection with the Aircraft identified herein.

     The date of the Advance shall be [________] (the “Advance Date”). The below delineates
information related to (i) each Aircraft to which the Advance relates (each, a “Related Pool
Aircraft” with respect to such Advance), (ii) the relevant Owner Subsidiary which Owns (or will Own
as of the Advance Date) each Related Pool Aircraft, (iii) the relevant Intermediate Lessee (if any)
which leases, or will lease, each Related Pool Aircraft, (iv) the aggregate amount of Loans related
to each Related Pool Aircraft and (v) the relevant Initial Appraised Value of each Related Pool
Aircraft.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Relevant	 	 	 	 
	Reg.	 	Airframe Mftr. and	 	Airframe	 	 	 	 	 	Engine	 	Relevant Owner	 	Intermediate Lessee	 	Relevant Advanced	 	Relevant Initial
	No.	 	Model	 	MSN	 	Engine Model	 	MSNs	 	Subsidiary	 	(if any)	 	Loans	 	Appraised Value
	 
	 
	 

     The aggregate amount of the Loans to be advanced is $[_________] (the “Aggregate
Requested Advance Amount”).

Term Loan Credit Agreement

J-1

 

     In respect of each Related Pool Aircraft, taking into account the Advances requested pursuant
to this Advance Request and the relevant Initial Appraised Value of each such Aircraft, the Initial
LTV Ratio for each such Aircraft is 65.0%.

     The Borrower hereby requests that the Administrative Agent to transfer the Aggregate Requested
Advance Amount to the Borrower at the following account:

Bank:

ABA Number:

Account No.:

Term Loan Credit Agreement

J-2

 

     IN WITNESS WHEREOF, the Borrower, each Owner Subsidiary [and Intermediate Lessee] has executed
this Advance Request as of the day and year first above written.

	 	 	 	 	 
	 	TEMESCAL AIRCRAFT INC.,

as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  		 
	 	
[_______], as Owner Subsidiary 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	
[_______, as Intermediate Lessee] 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Term Loan Credit Agreement

J-3

 

EXHIBIT K

FORM OF OBLIGOR ASSUMPTION AGREEMENT

___________, __ ______

Citibank, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made herein to the Term Loan Credit Agreement dated as of March 30, 2011 (as
amended, restated or otherwise modified from time to time, the “Credit Agreement”), among
International Lease Finance Corporation, as an Obligor, Temescal Aircraft Inc., as the Borrower,
Park Topanga Aircraft Inc., as an Obligor, Charmlee Aircraft Inc., as an Obligor, Ballysky Aircraft
Ireland Limited, as an Obligor, the lenders identified therein, as Lenders, Citibank, N.A., as the
Administrative Agent, Citibank, N.A., as Collateral Agent, Citigroup Global Markets Inc. and Credit
Suisse Securities (USA) LLC as joint lead structuring agents and joint lead placement agents, and
BNP Paribas as joint placement agent. Capitalized terms not otherwise defined herein, shall have
the meaning assigned to such terms in the Credit Agreement.

     [Name of new Obligor], a [____] incorporated under the laws of [___] (the “New Obligor”),
hereby confirms, represents and warrants to the Administrative Agent and the Lenders that the New
Obligor is a wholly owned subsidiary of [____] and is [an Owner Subsidiary] / [an Intermediate
Lessee].

     Pursuant to Section [2.10] / [4.02] of the Credit Agreement, and for other good and valuable
consideration hereby acknowledged, (a) the New Obligor hereby confirms that, with effect form the
date hereof, the New Obligor shall have the obligations, duties and liabilities toward each of the
other parties to the Loan Documents and other Obligors identical to those which the New Obligor
would have had if the New Obligor had been named as an original party to the Loan Documents as an
Obligor on the Effective Date, including without limitation those set forth in Article 7 of the
Credit Agreement with respect to the Guaranteed Obligations and (b) the New Obligor hereby makes
and gives all representations and warranties in the Loan Documents in each case applicable to such
New Obligor as if it had been named as an original party to the Loan Documents as an Obligor on the
Effective Date, but such representations and warranties are made on and as of the date hereof.

     This Agreement shall constitute a Loan Document. This Agreement shall be construed in
accordance with and governed by the Laws of the State of New York.

[Signature pages follow.]

Term Loan Credit Agreement

K-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Obligor Assumption Agreement as of the
day and year first above written.

	 	 	 	 	 
	 	[__________], as New Obligor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and accepted:

	 	 	 	 	 
	 	CITIBANK, N.A., as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Term Loan Credit Agreement

K-2

 

EXHIBIT L

FORM OF INCREMENTAL LENDER ASSUMPTION AGREEMENT

___________, __ ______

Citibank, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made herein to the Term Loan Credit Agreement dated as of March 30, 2011 (as
amended, restated or otherwise modified from time to time, the “Credit Agreement”), among
International Lease Finance Corporation, as an Obligor, Temescal Aircraft Inc., as the Borrower,
Park Topanga Aircraft Inc., as an Obligor, Charmlee Aircraft Inc., as an Obligor, Ballysky Aircraft
Ireland Limited, as an Obligor, the lenders identified therein, as Lenders, Citibank, N.A., as the
Administrative Agent, Citibank, N.A., as Collateral Agent, Citigroup Global Markets Inc. and Credit
Suisse Securities (USA) LLC as joint lead structuring agents and joint lead placement agents, and
BNP Paribas as joint placement agent. Capitalized terms not otherwise defined herein, shall have
the meaning assigned to such terms in the Credit Agreement.

     Pursuant to Section 2.01(c) of the Credit Agreement, from and after the date of this
Incremental Lender Assumption Agreement (the “Incremental Effective Date”), [each of] [name of new
Incremental Lender(s)] ([each, an] / [the] “Incremental Lender”) shall be bound by the provisions
of the Credit Agreement as a Lender thereunder and have the rights and obligations of a Lender
thereunder, with an aggregate Commitment equal to $200,000,000 [and [list individual Commitments if
more than one Incremental Lender]].

     Each Incremental Lender hereby (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Incremental Lender
Assumption Agreement and to consummate the transactions contemplated hereby and to become a Lender
under the Credit Agreement, (ii) it has received a copy of the Credit Agreement, and has received
or has been accorded the opportunity to receive copies of such documents and information as it
deems appropriate to make its own credit analysis and decision to enter into this Incremental
Lender Assumption Agreement, (iii) if it is a Foreign Lender, attached hereto is all documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and
executed by it, and (iv) [insert relevant tax requirements]; and (b) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

     Each Obligor hereby makes to each Incremental Lender each representation and warranty of such
Obligor contained in Article 3 of the Credit Agreement and contained in each other Loan Document
dated as of a date on or prior to the Incremental Effective Date on and as of the Incremental
Effective Date, except to the extent that such representations and warranties specifically refer to
an earlier date.

Term Loan Credit Agreement

L-1

 

     Exhibit A of the Credit Agreement is hereby amended by replacing the contents thereof with the
contents of Schedule 1 hereto. Schedule 3.17(a) of the Credit Agreement is hereby amended by
replacing the contents thereof with the contents of Schedule 2 hereto. Schedule 3.17(b) of the
Credit Agreement is hereby amended by replacing the contents thereof with the contents of Schedule
3 hereto.

     This Incremental Lender Assumption Agreement shall be a Loan Document. This Incremental
Lender Assumption Agreement shall be binding upon, and inure to the benefit of, the parties hereto
and their respective successors and assigns. This Incremental Lender Assumption Agreement may be
executed in any number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Incremental Lender Assumption Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of this Incremental
Lender Assumption Agreement. This Incremental Lender Assumption Agreement shall be construed in
accordance with and governed by the laws of the State of New York.

[Signature pages follow.]

Term Loan Credit Agreement

L-2

 

     IN WITNESS WHEREOF, the undersigned has executed this Incremental Lender Assumption Agreement
as of the day and year first above written.

	 	 	 	 	 
	 	TEMESCAL AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INTERNATIONAL LEASE FINANCE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PARK TOPANGA AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CHARMLEE AIRCRAFT INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BALLYSKY AIRCRAFT IRELAND LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[_________], as the Incremental Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Term Loan Credit Agreement

L-3

 

Acknowledged and agreed:

	 	 	 	 	 
	 	CITIBANK, N.A., as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Term Loan Credit Agreement

L-4

 

SCHEDULE 1

TO INCREMENTAL LENDER ASSUMPTION AGREEMENT

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 
	Lender	 	Commitment	 	Applicable Percentage
	 
	[_______]

	 	$[_______]
	 	 	[_______]	%
	 
	 	 	 	 	 	 
	[_______]

	 	$[_______]
	 	 	[_______]	%
	 
	 	 	 	 	 	 
	Total

	 	$[_______]
	 	        100.000000000%

Term Loan Credit Agreement

L-5

 

SCHEDULE 2

TO INCREMENTAL LENDER ASSUMPTION AGREEMENT

PS POOL AIRCRAFT

Term Loan Credit Agreement

L-6

 

SCHEDULE 3

TO INCREMENTAL LENDER ASSUMPTION AGREEMENT

LEASES

Term Loan Credit Agreement

L-7

 

EXHIBIT M

INCREMENTAL AIRCRAFT

The Borrower shall add the Aircraft set forth below to the Designated Pool as of the Incremental
Effective Date:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	 	 	 
	 	 	Manufacturer and	 	Airframe	 	Engine Manufacturer and	 	 	 	Country of
	 	 	Model	 	MSN	 	Engine Model	 	Lessee*	 	Registration*
	1

	 	Airbus A319-100
	 	 	3020	 	 	International Aero Engines V2524-A5
	 	***
	 	China
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2

	 	Airbus A320-200
	 	 	2665	 	 	CFM International CFM56-5B4/P
	 	***
	 	Malta
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	3

	 	Airbus A321-200
	 	 	1734	 	 	International Aero Engines V2533-A5
	 	***
	 	South Korea
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	4

	 	Airbus A321-200
	 	 	1926	 	 	International Aero Engines V2533-A5
	 	***
	 	Macau
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	5

	 	Airbus A330-200
	 	 	911	 	 	Pratt & Whitney PW4168A
	 	***
	 	Germany
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	6

	 	Boeing B737-700
	 	 	29359	 	 	CFM International CFM56-7B20
	 	***
	 	Hungary
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	7

	 	Boeing B737-800
	 	 	30724	 	 	CFM International CFM56-7B26/3
	 	***
	 	Germany
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	8

	 	Boeing B737-800
	 	 	37159	 	 	CFM International CFM56-7B26/3
	 	***
	 	Norway

 

			
	*	 	As of the date of this Credit Agreement

Such Aircraft have the following Leases:

International Lease Finance Corporation (“ILFC”)

ILFC Ireland Limited (“ILFC Ireland”)

***

     Airbus A321-200 aircraft bearing serial number 1926

Aircraft Lease Agreement dated as of January 31, 2002 between ***, as Lessee, and
ILFC, as Lessor.

***

     Airbus A320-200 aircraft bearing serial number 2665

 

			
	***	 	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

M-1

 

Amended and Restated Aircraft Lease Agreement dated as of January 14, 2003 between
***, as Lessee, and ILFC, as Lessor.

***

     Airbus A321-200 aircraft bearing serial number 1734

Aircraft Lease Agreement dated as of January 10, 2001 between ***, as Lessee, and
ILFC Ireland, as Lessor.

Aircraft Headlease Agreement dated as of January 10, 2001 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

***

     Airbus A319-100 aircraft bearing serial number 3020

Aircraft Lease Agreement dated as of November 4, 2003, between ***, as Lessee, ILFC
Ireland, as Lessor, and ***, as Consenting Party.

Aircraft Headlease Agreement dated as of November 4, 2003 between ILFC Ireland, as
Lessee, and ILFC, as Lessor.

Aircraft Lease Novation and Amendment Agreement dated December 31, 2004, between
ILFC Ireland, as Lessor, ***, as Existing Lessee, ***, as New Lessee, and ***, as
Consenting Party.

***

     Airbus A330-200 aircraft bearing serial number 911

Aircraft Lease Agreement dated as of September 28, 2006 between ***, as Lessee, and
ILFC Ireland, as Lessor.

Aircraft Headlease Agreement dated as of September 28, 2006 between ILFC Ireland, as
Headlessee, and ILFC, as Headlessor.

***

     Boeing B737-700 aircraft bearing serial number 29359

Aircraft Lease Agreement dated as of June 30, 2002 between ***, as Lessee, and ILFC,
as Lessor.

***

 

			
	***	 	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

M-2

 

     Boeing B737-800 aircraft bearing serial number 37159

Aircraft Lease Agreement dated as of January 8, 2009 between ***, as Lessee, and
ILFC, as Lessor.

***

     Boeing B737-800 aircraft bearing serial number 30724

Amended and Restated Aircraft Lease Agreement dated as of January 24, 2007 between
***, as Lessee and ILFC, as Lessor.

Aircraft Lease Novation and Amendment Agreement dated as of January 24, 2007 between
***, as Lessee, and ILFC, as Lessor.

 

			
	***	 	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Term Loan Credit Agreement

M-3

 

ANNEX 1

PROHIBITED COUNTRIES

Burma/Myanmar

Cuba

Iran

non-Specified Areas of Sudan

North Korea

Syria

Term Loan Credit Agreement

1-1exv10w3

Exhibit 10.3

EXECUTION VERSION

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

Dated as of March 30, 2011

among

PARK TOPANGA AIRCRAFT INC.,

TEMESCAL AIRCRAFT INC.,

BALLYSKY AIRCRAFT IRELAND LIMITED,

CHARMLEE AIRCRAFT INC.,

and

THE ADDITIONAL GRANTORS REFERRED TO HEREIN

as the Grantors

and

CITIBANK, N.A.,

as the Collateral Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	PAGE
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	2	 
	Section 1.02 Construction and Usage
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II SECURITY
	 	 	8	 
	Section 2.01 Grant of Security
	 	 	8	 
	Section 2.02 Security for Obligations
	 	 	12	 
	Section 2.03 Representations and Warranties of the Grantors
	 	 	12	 
	Section 2.04 Grantors Remain Liable
	 	 	14	 
	Section 2.05 Delivery of Collateral
	 	 	14	 
	Section 2.06 As to the Assigned Documents
	 	 	15	 
	Section 2.07 As to the Pool Aircraft Collateral
	 	 	16	 
	Section 2.08 As to the Equity Collateral and Investment Collateral
	 	 	16	 
	Section 2.09 Further Assurances
	 	 	17	 
	Section 2.10 Place of Perfection; Records
	 	 	19	 
	Section 2.11 Voting Rights; Dividends; Etc.
	 	 	19	 
	Section 2.12 Transfers and Other Liens; Additional Shares or Interests
	 	 	20	 
	Section 2.13 Collateral Agent Appointed Attorney-in-Fact
	 	 	20	 
	Section 2.14 Collateral Agent May Perform
	 	 	21	 
	Section 2.15 Covenant to Pay
	 	 	21	 
	Section 2.16 Delivery of Collateral Supplements
	 	 	21	 
	Section 2.17 Identification of Collateral Agent’s Interest
	 	 	22	 
	Section 2.18 Insurance
	 	 	22	 
	Section 2.19 Covenant Regarding Control
	 	 	22	 
	Section 2.20 Covenant Regarding Collateral Account
	 	 	22	 
	Section 2.21 As to Irish Law
	 	 	22	 
	Section 2.22 Additional Charges Over Shares
	 	 	22	 
	 
	 	 	 	 
	ARTICLE III REMEDIES
	 	 	23	 
	 
	 	 	 	 
	Section 3.01 Remedies
	 	 	23	 
	Section 3.02 Priority of Payments
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IV SECURITY INTEREST ABSOLUTE
	 	 	24	 
	 
	 	 	 	 
	Section 4.01 Security Interest Absolute
	 	 	24	 
	 
	 	 	 	 
	ARTICLE V THE COLLATERAL AGENT
	 	 	25	 
	 
	 	 	 	 
	Section 5.01 Authorization and Action
	 	 	25	 
	Section 5.02 Absence of Duties
	 	 	25	 

Aircraft Mortgage and Security Agreement

i

 

	 	 	 	 	 

	Section 5.03 Representations or Warranties
	 	 	25	 
	Section 5.04 Reliance; Agents; Advice of Counsel
	 	 	26	 
	Section 5.05 Cape Town Convention
	 	 	27	 
	Section 5.06 No Individual Liability
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI SUCCESSOR COLLATERAL AGENT
	 	 	27	 
	 
	 	 	 	 
	Section 6.01 Resignation and Removal of the Collateral Agent
	 	 	27	 
	Section 6.02 Appointment of Successor
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VII INDEMNITY AND EXPENSES
	 	 	28	 
	 
	 	 	 	 
	Section 7.01 Indemnity
	 	 	29	 
	Section 7.02 Secured Parties’ Indemnity
	 	 	29	 
	Section 7.03 No Compensation from Secured Parties
	 	 	30	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS
	 	 	30	 
	 
	 	 	 	 
	Section 8.01 Amendments; Waivers; Etc
	 	 	30	 
	Section 8.02 Addresses for Notices; Delivery of Documents
	 	 	31	 
	Section 8.03 Remedies
	 	 	32	 
	Section 8.04 Severability
	 	 	32	 
	Section 8.05 Continuing Security Interest
	 	 	32	 
	Section 8.06 Release and Termination
	 	 	32	 
	Section 8.07 Currency Conversion
	 	 	33	 
	Section 8.08 Governing Law
	 	 	34	 
	Section 8.09 Jurisdiction; Consent to Service of Process
	 	 	34	 
	Section 8.10 Counterparts; Integration; Effectiveness
	 	 	34	 
	Section 8.11 Table of Contents, Headings, Etc
	 	 	35	 
	Section 8.12 Non-Invasive Provisions
	 	 	35	 
	Section 8.13 Limited Recourse
	 	 	36	 

	 	 	 	 	 

	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule I Aircraft Objects
	 	 	 	 
	Schedule II Pledged Equity Interests; Pledged Debt
	 	 	 	 
	Schedule III Trade Names
	 	 	 	 
	Schedule IV Chief Place of Business and Chief Executive or Registered Office
	 	 	 	 
	Schedule V Insurance
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A-1 Form of Collateral Supplement
	 	 	 	 
	Exhibit A-2 Form of Grantor Supplement
	 	 	 	 
	Exhibit B Form of Charge Over Shares of Irish Subsidiary Holdco
	 	 	 	 
	Exhibit C Form of Account Control Agreement
	 	 	 	 
	Exhibit D Form of FAA Aircraft Mortgage
	 	 	 	 

Aircraft Mortgage and Security Agreement

ii

 

	 	 	 	 	 

	Exhibit E Form of FAA Aircraft Mortgage and Lease Assignment
	 	 	 	 
	Exhibit F Form of FAA Lease Assignment
	 	 	 	 
	Exhibit G Notice of Assignment
	 	 	 	 

Aircraft Mortgage and Security Agreement

iii

 

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

          This AIRCRAFT MORTGAGE AND SECURITY AGREEMENT (this “Agreement”), dated as of March
30, 2011, is made among PARK TOPANGA AIRCRAFT INC., a California corporation (“Parent
Holdco”), TEMESCAL AIRCRAFT INC., a California corporation (the “Borrower”), BALLYSKY
AIRCRAFT IRELAND LIMITED, a private limited liability company incorporated under the laws of
Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT INC., a California corporation
(the “CA Subsidiary Holdco”) and the ADDITIONAL GRANTORS who from time to time become
grantors under this Agreement (together with Parent Holdco, the Borrower, the Irish Subsidiary
Holdco and the CA Subsidiary Holdco, the “Grantors”), and Citibank, N.A., a national
banking association (“Citibank”), as the collateral agent (in such capacity, and together
with any permitted successor or assign thereto or any permitted replacement thereof, the
“Collateral Agent”).

PRELIMINARY STATEMENTS:

          (1) International Lease Finance Corporation (“ILFC”), the Borrower, Parent Holdco, the
Irish Subsidiary Holdco, the CA Subsidiary Holdco, the lenders identified therein (the
“Lenders”), Citibank as the administrative agent (in such capacity, the “Administrative
Agent”) and the Collateral Agent have entered into the Term Loan Credit Agreement, dated as of
the date hereof (the “Credit Agreement”), pursuant to which the Lenders will make the Loans
to the Borrower.

          (2) ILFC is the direct or indirect owner of certain Aircraft and ILFC and certain of its
Affiliates are parties to lease and sub-lease contracts with respect to such Aircraft.

          (3) The Grantors may from time to time grant additional security for the benefit of the
Secured Parties, all in accordance with, and subject to the terms and conditions of this Agreement.

          (4) (a) Parent Holdco owns 100% of the outstanding capital stock of the Borrower, (b) the
Borrower owns 100% of the outstanding capital stock of the CA Subsidiary Holdco and 100% of the
Equity Interests of the Irish Subsidiary Holdco, (c) the Irish Subsidiary Holdco and the CA
Subsidiary Holdco will acquire directly or indirectly (and subject to the Local Requirements
Exception), from time to time, 100% of the Equity Interests in Owner Subsidiaries that will, from
time to time on or after the Effective Date, acquire Pool Aircraft from ILFC or its Affiliates and
(d) CA Subsidiary Holdco or Irish Subsidiary Holdco will acquire directly or indirectly (and
subject to the Local Requirements Exception) 100% of the Equity Interests of any Intermediate
Lessee that will, from time to time after the Effective Date, act as leasing intermediary with
respect to certain Pool Aircraft.

          (5) The Grantors in each case party thereto have agreed pursuant to the Credit Agreement, and
it is a condition precedent to the making of the Loans by the Lenders under the Credit Agreement,
that the Grantors grant the security interests required by this Agreement.

          (6) Each Grantor will derive substantial direct and indirect benefit from the transactions
described above.

Aircraft Mortgage and Security Agreement

 

 

          (7) Citibank is willing to act as the Collateral Agent under this Agreement.

          NOW, THEREFORE, in consideration of the premises, each Grantor hereby agrees with the
Collateral Agent for its respective benefit and the benefit of the other Secured Parties as
follows:

ARTICLE I

DEFINITIONS

          Section 1.01 Definitions. (a) Certain Defined Terms. For the purposes of
this Agreement, the following terms have the meanings indicated below:

          “1881 Act” has the meaning set forth in Section 2.21.

          “Account Collateral” has the meaning specified in Section 2.01(h).

          “Account Control Agreement” means the collateral account control agreement in the form
attached hereto as Exhibit C in respect of the Collateral Account dated on or about the Effective
Date among the Securities Intermediary, the Borrower and the Collateral Agent.

          “Acquisition Agreement” means any agreement to provide warranties in respect of a Pool
Aircraft to a Grantor hereunder in connection with any agreement pursuant to which such Pool
Aircraft has been or will be acquired by such Grantor to the extent permitted to be assigned
without third party consent.

          “Additional Grantor” has the meaning specified in Section 8.01(b).

          “Agreed Currency” has the meaning specified in Section 8.07.

          “Agreement” has the meaning specified in the recital of parties to this Agreement.

          “Aircraft Documents” means all technical data, manuals and log books, and all inspection,
modification and overhaul records and other service, repair, maintenance and technical records in
respect of a Pool Aircraft that are Owned by a Grantor and required pursuant to applicable law to
be maintained with respect to such Pool Aircraft, and such term shall include all additions,
renewals, revisions and replacements of any such materials from time to time made, or required to
be made, pursuant to applicable law, and in each case in whatever form and by whatever means or
medium (including, without limitation, microfiche, microfilm, paper or computer disk) such
materials may be maintained or retained by the relevant Lessee.

          “Aircraft Objects” means, collectively, the Aircraft Objects (as defined in the Protocol)
described on Schedule I hereto, as supplemented by each Collateral Supplement and Grantor
Supplement.

          “Aircraft Purchase Collateral” has the meaning specified in Section 2.01(g).

Aircraft Mortgage and Security Agreement

2

 

          “Airframe” means, individually, each of the airframes described on Schedule I hereto, as
supplemented by any Collateral Supplement or Grantor Supplement.

          “Assigned Agreement Collateral” has the meaning specified in Section 2.01(f).

          “Assigned Agreements” has the meaning specified in Section 2.01(f)(i).

          “Assigned Documents” means, collectively, the Assigned Agreements, the Assigned Leases and the
Acquisition Agreements.

          “Assigned Lease Documents” means, collectively, the Assigned Agreements and the Assigned
Leases.

          “Assigned Leases” has the meaning specified in Section 2.01(b).

          “Beneficial Interest Collateral” has the meaning specified in Section 2.01(e).

          “Borrower” has the meaning specified in the preliminary statements of this Agreement.

          “Certificated Security” means a certificated security (as defined in Section 8-102(a)(4) of
the UCC) other than a Government Security.

          “Chattel Paper Original” has the meaning specified in Section 2.05.

          “Citibank” has the meaning specified in the recital of parties to this Agreement.

          “Collateral” has the meaning specified in Section 2.01.

          “Collateral Agent” has the meaning specified in the recital of parties to this Agreement.

          “Collateral Supplement” means a supplement to this Agreement in substantially the form
attached as Exhibit A-1 executed and delivered by a Grantor.

          “Credit Agreement” has the meaning specified in the preliminary statements to this Agreement.

          “Eligible Institution” means (a) Citibank in its capacity as the Collateral Agent under this
Agreement; (b) any bank not organized under the laws of the United States of America so long as it
has either (i) a long-term unsecured debt rating of A or better by Standard & Poor’s and A2 or
better by Moody’s or (ii) a short-term unsecured debt rating of A-1+ by Standard & Poor’s and P-1
or better by Moody’s; or (c) any bank organized under the laws of the United States of America or
any state thereof, or the District of Columbia (or any branch of a foreign bank licensed under any
such laws), so long as it (i) has either (A) a long-term unsecured debt rating of A or better by
each of Standard & Poor’s and Moody’s or (B) a short-term unsecured debt rating of A-l+ by Standard
& Poor’s and P-1 by Moody’s and (ii) can act as a securities intermediary under the New York
Uniform Commercial Code.

Aircraft Mortgage and Security Agreement

3

 

          “Engine” means, individually, each of the aircraft engines described on Schedule I hereto, as
supplemented by each Collateral Supplement and Grantor Supplement.

          “Equity Collateral” has the meaning specified in Section 2.08(a).

          “Event of Default” means any Event of Default (as defined in the Credit Agreement).

          “Excluded Property” shall mean (a) proceeds of public liability insurance (or government or
other Person (including the Manufacturer, the Lessee and any sublessee of the Lessee) indemnities
in lieu thereof) paid or payable as a result of insurance claims made, or losses suffered, by any
Grantor or their Affiliates, (b) proceeds of insurance maintained by any Grantor or their
Affiliates for its or their own account or benefit (whether directly or through a Grantor) and not
required by this Agreement, and proceeds of insurance in excess of the amounts required hereunder,
(c) any general, Tax or other indemnity payments, expenses, reimbursements and similar payments and
interest in respect thereof paid or payable in favor of any Grantor or their Affiliates or their
respective successors or assigns, officers, directors, employees, agents, managers and servants,
including any such payments pursuant to any Lease, except to the extent such Grantor or Affiliate
owes such amounts in respect of the same claim to a Secured Party, (d) any security interest held
by a Grantor or any of its Affiliates in any assets of a Lessee or any sublessee thereof or of any
of their Affiliates (other than the security deposit or a letter of credit in lieu thereof), which
secure obligations (other than owing solely under the Assigned Lease Documents) owed by such
Lessee, sublessee or Affiliate pursuant to a grant of collateral under documents other than solely
under the Assigned Lease Documents, (e) cash payments in respect of Collateral or Indebtedness
subject to the Intercreditor Agreement after such payments are made by a Grantor to a non-Grantor,
(f) any interest that pursuant to a Lease may from time to time accrue in respect of any of the
amounts described in clauses (a) through (e) above, (g) the proceeds from the enforcement of any
right to enforce the payment of any amount described in clauses (a) to (f) above, and (h) any right
to exercise any election or option or make any decision or determination, or to give or receive any
notice, consent, waiver or approval, or to take any other action in respect of, but in each case,
only to the extent relating to, any Excluded Property.

          “FAA Aircraft Mortgage” means an FAA Aircraft Mortgage substantially in the form attached as
Exhibit D.

          “FAA Aircraft Mortgage and Lease Security Assignment” means an FAA Aircraft Mortgage and Lease
Security Assignment substantially in the form attached as Exhibit E.

          “FAA Lease Security Assignment” means the Lease Security Assignment in substantially the form
attached as Exhibit F hereto.

          “Government Security” means any security issued or guaranteed by the United States of America
or an agency or instrumentality thereof that is maintained in book-entry on the records of the
FRBNY and is subject to Revised Book-Entry Rules.

          “Grantor Supplement” means a supplement to this Agreement in substantially the form attached
as Exhibit A-2 executed and delivered by a Grantor.

Aircraft Mortgage and Security Agreement

4

 

          “Grantors” has the meaning specified in the recital of parties to this Agreement.

          “ILFC” has the meaning specified in the recital of parties in this Agreement.

          “Instrument” means any “instrument” as defined in Section 9-102(a)(47) of the UCC.

          “Insurances” means, in relation to each Pool Aircraft, any and all contracts or policies of
insurance and reinsurance complying with the provisions of Schedule V hereto or an indemnity from a
Governmental Authority as indemnitor, as appropriate, and required to be effected and maintained in
accordance with this Agreement.

          “Lease Assignment Documents” means, in respect of any Assigned Lease, (a) any agreement
providing for the novation thereof to substitute, or the assignment thereof to, a Grantor as the
lessor, (b) any agreement or instrument supplemental to this Agreement for the purpose of effecting
and/or perfecting the assignment of, and the grant of a lien upon, such Assigned Lease in favor of
the Collateral Agent under any applicable law (other than the law of the State of New York) in each
case to the extent required by the Express Perfection Requirements, (c) any notice provided to the
applicable Lessee of the assignment thereof pursuant to this Agreement and/or such supplement and
(d) any undertaking of quiet enjoyment given by the Collateral Agent in respect thereof.

          “Lease Collateral” has the meaning specified in Section 2.01(b).

          “Lenders” has the meaning specified in the preliminary statements to this Agreement.

          “Membership Interest Collateral” has the meaning specified in Section 2.01(d).

          “Parent Holdco” has the meaning specified in the recital of parties in to Agreement.

          “Parts” means all appliances, parts, components, instruments, appurtenances, accessories,
furnishings, seats and other equipment of whatever nature (other than (a) Engines or engines, and
(b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other
equipment that would qualify as a removable part and is leased by a Lessee from a third party or is
subject to a security interest granted to a third party), that may from time to time be installed
or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom
and, if the applicable Pool Aircraft or Engine is subject to a Lease, is owned by a Grantor
hereunder under the terms of such Lease.

          “Pledged Beneficial Interests” means all of the beneficial interest in the Pledged Equity
Parties described in the attached Schedule II, as supplemented by any Collateral Supplement or
Grantor Supplement.

          “Pledged Borrower Debt” means any and all Indebtedness from time to time owing by the Borrower
to any Borrower Party.

Aircraft Mortgage and Security Agreement

5

 

          “Pledged CA Subsidiary Holdco Debt” means any and all Indebtedness from time to time owing by
the CA Subsidiary Holdco to any Borrower Party.

          “Pledged Debt” means the Pledged Parent Holdco Debt, the Pledged Borrower Debt, the Pledged
Irish Subsidiary Holdco Debt, the Pledged CA Subsidiary Holdco Debt, the Pledged Owner Subsidiary
Debt and the Pledged Intermediate Lessee Debt.

          “Pledged Debt Collateral” has the meaning assigned to such term in Section 2.01(c)(iii).

          “Pledged Equity Interests” means the Pledged Beneficial Interests, the Pledged Membership
Interests and the Pledged Stock.

          “Pledged Equity Party” means the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary
Holdco, each Owner Subsidiary and each Intermediate Lessee.

          “Pledged Intermediate Lessee Debt” means any and all Indebtedness from time to time owing by
any Intermediate Lessee to any Borrower Party.

          “Pledged Irish Subsidiary Holdco Debt” means any and all Indebtedness from time to time owing
by the Irish Subsidiary Holdco to any Borrower Party.

          “Pledged Owner Subsidiary Debt” means any and all Indebtedness from time to time owing by any
Owner Subsidiary to any Borrower Party.

          “Pledged Membership Interests” means all of the membership interests in the Pledged Equity
Parties described in the attached Schedule II, as supplemented by any Collateral Supplement or
Grantor Supplement.

          “Pledged Parent Holdco Debt” means any and all Indebtedness from time to time owing by Parent
Holdco to any Borrower Party.

          “Pledged Stock” means the outstanding shares of capital stock and/or issued share capital of
the Pledged Equity Parties described in the attached Schedule II, as supplemented by any Collateral
Supplement or Grantor Supplement.

          “Received Currency” has the meaning specified in Section 8.07.

          “Related Collateral Documents” means a letter of credit, third-party or bank guarantee or cash
collateral provided by or on behalf of a Lessee pursuant to the terms of a Lease of a Pool Aircraft
to secure such Lessee’s obligations under a Lease, in each case to the extent assignable without
the consent of a third party.

          “Relevant FAA Aircraft Mortgages” means, collectively, the FAA Aircraft Mortgages.

          “Relevant FAA Aircraft Mortgages and Lease Security Assignments” means, collectively, the FAA
Aircraft Mortgage and Lease Security Assignments.

Aircraft Mortgage and Security Agreement

6

 

          “Relevant FAA Lease Security Assignments” means, collectively, the FAA Lease Security
Assignments.

          “Revised Book-Entry Rules” means 31 C.F.R. § 357 (Treasury bills, notes and bonds); 12 C.F.R.
§ 615 (book-entry securities of the Farm Credit Administration); 12 C.F.R. §§ 910 and 912
(book-entry securities of the Federal Home Loan Banks); 24 C.F.R. § 81 (book-entry securities of
the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation); 12
C.F.R. § 1511 (book-entry securities of the Resolution Funding Corporation); 31 C.F.R. § 354
(book-entry securities of the Student Loan Marketing Association); and any substantially comparable
book-entry rules of any other Federal agency or instrumentality.

          “Secured Obligations” has the meaning assigned to the term “Obligations” in the Credit
Agreement.

          “Secured Party” means any of or, in the plural form, all of the Lender Parties.

          “Securities Account” means a securities account as defined in Section 8-501(a) of the UCC
maintained in the name of the Collateral Agent as “entitlement holder” (as defined in Section
8-102(a)(7) of the UCC) on the books and records of a Securities Intermediary whose “securities
intermediary’s jurisdiction” (within the meaning of Section 8-110(e) of the UCC) is the State of
New York.

          “Securities Intermediary” means any “securities intermediary” with respect to the Collateral
Agent as defined in 31 C.F.R. Section 357.2 or Section 8-102(a)(14) of the UCC.

          “Security Collateral” has the meaning specified in Section 2.01(c).

          “Uncertificated Security” means an uncertificated security (as defined in Section 8-102(a)(18)
of the UCC) other than a Government Security.

          (b) Terms Defined in the Cape Town Convention. The following terms shall have the
respective meanings ascribed thereto in the Cape Town Convention: “Administrator”, “Contracting
State”, “Contract of Sale”, “International Interest”, “Professional User Entity”, “Prospective
International Interest”, “situated in” and “Transacting User Entity”.

          (c) Terms Defined in the Credit Agreement. For all purposes of this Agreement, all
capitalized terms used but not defined in this Agreement shall have the respective meanings
assigned to such terms in the Credit Agreement.

          Section 1.02 Construction and Usage. Unless the context otherwise requires:

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

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

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

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

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

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

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

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

          (i) Where any payment is to be made, funds applied or any calculation is to be made hereunder
on a day which is not a Business Day, unless any Loan Document otherwise provides, such payment
shall be made, funds applied and calculation made on the next succeeding Business Day, and payments
shall be adjusted accordingly; provided, however, that no additional interest shall
be due in respect of such delay.

ARTICLE II

SECURITY

          Section 2.01 Grant of Security.

          To secure the Secured Obligations, each Grantor hereby assigns and pledges to the Collateral
Agent, for its benefit and the benefit of the other Secured Parties, and hereby grants to the
Collateral Agent for its benefit and the benefit of the other Secured Parties a security interest
in, all of such Grantor’s right, title and interest in and to the following, whether now owned or
hereafter acquired (collectively, the “Collateral”):

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          (a) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
(i) each Pool Aircraft, including the Airframe and Engines with respect to such Pool Aircraft as
the same is now and will hereafter be constituted, and in the case of such Engines, whether or not
any such Engine shall be installed in or attached to the Airframe or any other airframe, together
with (ii) all Parts of whatever nature, which are from time to time relating to any Airframe or
Engine, including all substitutions, renewals and replacements of and additions, improvements,
accessions and accumulations to the Airframe and Engines (other than additions, improvements,
accessions and accumulations which constitute appliances, parts, instruments, appurtenances,
accessories, furnishings or other equipment excluded from the definition of Parts), (iii) all
Aircraft Documents and (iv) any money or non-money proceeds of an Airframe or Engine arising from
the total or partial loss or destruction of such Airframe or its Engine or its total or partial
confiscation, condemnation or requisition up to the amount of hull insurance in respect of such
Pool Aircraft required to be carried hereunder;

          (b) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
all Leases to which such Grantor is or may from time to time be party with respect to the Pool
Aircraft, including any leasing arrangements with respect to such Pool Aircraft among Grantors with
respect to such Leases together with all Related Collateral Documents, but not including any
Assigned Agreement (all such Leases and Related Collateral Documents, the “Assigned
Leases”), including, without limitation, (i) all rights of such Grantor to receive moneys due
and to become due under or pursuant to such Assigned Leases, (ii) all rights of such Grantor to
receive proceeds of any insurance, indemnity, warranty or guaranty with respect to such Assigned
Leases up to the amount of hull insurance in respect of such Pool Aircraft required to be carried
hereunder, (iii) claims of such Grantor for damages arising out of or for breach or default under
such Assigned Leases, (iv) all rights under any such Assigned Lease with respect to any subleases
of the Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor to terminate
such Assigned Leases and to compel performance of, and otherwise to exercise all remedies under,
any Assigned Lease, whether arising under such Assigned Leases or by statute or at law or in equity
(the “Lease Collateral”);

          (c) with respect to each Grantor, all of the following (the “Security Collateral”):

          (i) the Pledged Stock and the certificates representing such Pledged Stock, and all
dividends, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

          (ii) all additional shares of the capital stock of any other Pledged Equity Party from
time to time acquired by such Grantor in any manner, including the capital stock of any
other Pledged Equity Party that may be formed from time to time,
and all certificates, if any, representing such additional shares of the capital stock
and all dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all such
additional shares; and

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               (iii) the Pledged Debt and all instruments evidencing the Pledged Debt, and all
interest, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Debt (the
“Pledged Debt Collateral”);

          (d) with respect to each Grantor, all of the following (the “Membership Interest
Collateral”):

               (i) the Pledged Membership Interests, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Membership
Interests, any contracts and instruments pursuant to which any such Pledged Membership
Interests are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Membership Interests; and

               (ii) all of such Grantor’s right, title and interest in all additional membership
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the membership interests in any other Pledged Equity Party that may be
formed from time to time, and all certificates, if any, from time to time representing such
additional membership interests and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all such additional membership interests;

          (e) with respect to each Grantor, all of the following (the “Beneficial Interest
Collateral”):

               (i) the Pledged Beneficial Interest, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Beneficial
Interest, any contracts and instruments pursuant to which any such Pledged Beneficial
Interest are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Beneficial Interest; and

               (ii) all of such Grantor’s right, title and interest in all additional beneficial
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the beneficial interests in any other Pledged Equity Party that may be
formed from time to time, the trust agreements and any other contracts and instruments
pursuant to which any such Pledged Equity Party is created or issued, and all certificates,
if any, from time to time representing such additional beneficial interests and all
distributions, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or
all such additional beneficial interests;

          (f) with respect to each Grantor, all of the following (the “Assigned Agreement
Collateral”):

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               (i) all of such Grantor’s right, title and interest in and to all security assignments,
cash deposit agreements and other security agreements executed in its favor in respect of
any Pool Aircraft (including any Airframe and any Engine) or in respect of or pursuant to
any Assigned Lease, in each case as such agreements may be amended or otherwise modified
from time to time, but only to the extent such security assignment, cash deposit agreement
or other security agreement is provided to the Grantor by (a) a Person (other than the
Lessee or any of its Affiliates under an Assigned Lease and other than a sublessee or any of
its Affiliates under a sublease) or (b) the Lessee or a sublessee or any of their Affiliates
and (with respect to this clause (b)) related to arrangements described in the definition of
“Local Requirements Exception” or a trust, conditional sale or similar arrangement described
in the definition of “Own” (collectively, the “Assigned Agreements”); and

               (ii) all of such Grantor’s right, title and interest in and to all underlying property
of whatever nature, in each case pledged, assigned or transferred to it or mortgaged or
charged in its favor pursuant to any Assigned Agreement;

          (g) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
the Acquisition Agreements (the “Aircraft Purchase Collateral”);

          (h) with respect to each Grantor, all right of such Grantor in and to the Collateral Account
and all funds, cash, investment property, investments, securities, instruments or other property
(including all “financial assets” within the meaning of Section 8-102(a)(9) of the UCC) at any time
or from time to time credited to any such account (collectively, the “Account Collateral”);

          (i) with respect to each Grantor, all of such Grantor’s right, title and interest in and to
the personal property identified as subject to the Lien hereof in a Grantor Supplement or a
Collateral Supplement executed and delivered by such Grantor to the Collateral Agent; and

          (j) all proceeds of any and all of the foregoing Collateral (including proceeds that
constitute property of the types described in subsections (a), (b), (c), (d), (e), (f), (g), (h)
and (i) of this Section 2.01);

provided, however, that notwithstanding any of the foregoing provisions, so long as
no Event of Default shall have occurred and be continuing and the Loans have been accelerated and
for so long as such acceleration shall not have been rescinded, each Grantor shall have the right,
to the exclusion of the Collateral Agent, to (i) all distributions, cash, instruments and other
property from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Collateral (other than the Pledged Debt) and (ii) all interest,
cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Pledged Debt, and once paid by a Grantor to a non-Grantor, shall
be free and clear of the Lien hereof and shall not constitute Collateral, and if an Event of
Default shall have occurred and be continuing and the Loans have been accelerated and for so long
as such acceleration shall not have been rescinded, no Grantor shall make any such payment to a
non-Grantor without the Collateral Agent’s consent; provided further that the
Collateral shall not include any Excluded Property. The foregoing provisos shall in no event give
rise to any

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right on behalf of any Obligor to cause the release of amounts from the Collateral
Account other than in accordance with the Loan Documents.

          Section 2.02 Security for Obligations. This Agreement secures the payment and
performance of all Secured Obligations of the Grantors to each Secured Party (subject to the
subordination provisions of this Agreement) and shall be held by the Collateral Agent in trust for
the Secured Parties. Without limiting the generality of the foregoing, this Agreement secures the
payment of all amounts that constitute part of the Secured Obligations and would be owed by any
Grantor to any Secured Party but for the fact that Secured Obligations are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such
Grantor.

          Section 2.03 Representations and Warranties of the Grantors. Each Grantor represents
and warrants as of the date of this Agreement, the Effective Date, each Advance Date in respect of
which such Grantor is a Relevant Advance Party and as of each date on which such Grantor executes
and delivers a Grantor Supplement or a Collateral Supplement, as follows:

          (a) Each Pool Aircraft is legally and beneficially Owned by the Owner Subsidiary identified in
the applicable Advance Request or legally Owned by the Owner Subsidiary and beneficially Owned by a
Subsidiary Holdco or Owner Subsidiary, except to the extent of the Local Requirements Exception and
as provided in the definition of “Own”. None of the Pool Aircraft Assets or the Collateral has
been sold in violation of the provisions of the Loan Documents, or is currently pledged, assigned
or otherwise encumbered except for Permitted Liens, and no Pool Aircraft Assets or Collateral are
described in (i) any UCC financing statements filed against any Obligor other than UCC financing
statements which have been (or have been agreed by the secured parties referenced therein to be)
terminated and UCC Financing Statements filed in connection with Permitted Liens or (ii) any other
mortgage registries, including the International Registry (which for the avoidance of doubt, shall
not include any Contract of Sale), or filing records that may be applicable to the Collateral in
any other relevant jurisdiction, other than such filings or registrations that have been (or have
been agreed by the secured parties referenced therein to be) terminated or that have been made in
connection with Permitted Liens. Except to the extent of the Local Requirements Exception and as
provided in the definition of “Own”, the Grantors are the legal and beneficial owners of the
Collateral.

          (b) In each case as and to the extent required under the Express Perfection Requirements, this
Agreement creates a valid and (upon the taking of the actions required hereby) perfected security
interest in favor of the Collateral Agent in the Collateral as security for the Secured
Obligations, subject in priority to no other Liens (other than Permitted Liens),
and all filings and other actions necessary to perfect and protect such security interest as a
first priority security interest of the Collateral Agent have been (or to the extent permitted
hereby or in the case of future Collateral, will be) duly taken, enforceable against the applicable
Grantors and creditors of and purchasers from such Grantors.

          (c) No Grantor has any trade names except as set forth on Schedule III hereto.

          (d) No consent of any other Person and no authorization, approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or other

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third party (including, for the avoidance of doubt, the International Registry) is required under any
applicable law that is necessary to comply with the Express Perfection Requirements (i) for the
grant by such Grantor of the assignment and security interest granted hereby, (ii) for the
execution, delivery or performance of this Agreement by such Grantor or (iii) for the perfection or
maintenance of the pledge, assignment and security interest created hereby, except for (A) with
respect to each Pool Aircraft whose country of registration is the United States of America, the
filing with the FAA, in due form, for recordation where applicable, pursuant to Section 40102 and
Section 44101 through Section 44112 of Title 49, United States Code, “Transportation”, of any and
all title, registration and financing documentation necessary to accomplish the purposes of this
Agreement, including, without limitation, each of the Relevant FAA Aircraft Mortgages, each of the
Relevant FAA Aircraft Mortgages and Lease Assignments and/or each of the Relevant FAA Lease
Security Assignments, as applicable, with respect to such Pool Aircraft and/or the related Assigned
Lease, (B) the filing of financing and continuation statements under the UCC, (C) the Required Cape
Town Registrations, (D) the applicable Irish filings pursuant to Section 2.09(e), (E) such other
filings as are required under relevant local law in the case of Grantors that are not organized
under the laws of the United States or a state thereof or Ireland and (F) the Lessee Notices
(except in each case set forth in this clause (d) that only the Express Perfection Requirements
shall be required to be satisfied).

          (e) The chief place of business, organizational identification number (if applicable) and
chief executive or registered office of such Grantor and the office where such Grantor keeps
records of the Collateral are located at the address specified opposite the name of such Grantor on
the attached Schedule IV or, in the case of records, at ILFC. If such Grantor is the lessor under
a Cape Town Lease, it has the right to assign the International Interest provided for in such Cape
Town Lease and all associated rights in respect of such Cape Town Lease that form part of the
Collateral.

          (f) The Pledged Stock constitutes the percentage of the issued and outstanding shares of
capital stock of the issuers thereof indicated on the attached Schedule II. The Pledged Membership
Interests constitute the percentage of the membership interest of the issuer thereof, as indicated
on Schedule II hereto. The Pledged Beneficial Interests constitute the percentage of the
beneficial interest of the issuer thereof indicated on Schedule II hereto.

          (g) The Pledged Stock, the Pledged Membership Interests and the Pledged Beneficial Interests
have been duly authorized and validly issued and are fully paid up and nonassessable. The Pledged
Debt has been duly authorized or issued and delivered and is the legal, valid and binding
obligation of each Borrower Party thereunder.

          (h) The Pledged Stock and the Pledged Membership Interests constitute “certificated
securities” within the meaning of Section 8-102(4) of the UCC. If the issuer thereof is organized
under the laws of the United States or a state thereof, the terms of any Pledged Equity Interest
expressly provide that such Pledged Equity Interest shall be governed by Article 8 of the Uniform
Commercial Code as in effect in the jurisdiction of the issuer of such Pledged Membership Interest
or such Article 8 shall be applicable thereto under applicable Laws. Any Certificated Security or
Instrument evidencing the Pledged Stock, the Pledged Debt, the Pledged Beneficial Interests and the
Pledged Membership Interests have been delivered to the Collateral Agent in accordance with Section
2.08. The Pledged Stock and the Pledged Membership Interest

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either (i) are in bearer form, (ii) have been indorsed, by an effective indorsement, to the Collateral Agent or in blank or (iii) have
been registered in the name of the Collateral Agent. None of the Pledged Stock, the Pledged
Beneficial Interests and the Pledged Membership Interest that constitute or evidence the Collateral
have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed
to any person other than the Collateral Agent (other than those agreed by the secured parties
referenced therein to be terminated or released). Any Pledged Beneficial Interests either (i)
constitute “certificated securities” within the meaning of Section 8-102(a)(4) of the UCC, have
been delivered to the Collateral Agent and (1) are in bearer form, (2) have been indorsed, by an
effective indorsement, to the Collateral Agent or in blank or (3) have been registered in the name
of the Collateral Agent or (ii) a fully executed “control agreement” has been delivered to the
Collateral Agent with respect to such Pledged Beneficial Interests.

          (i) A true and complete copy of each Assigned Agreement in effect on the date the relevant
Aircraft becomes a Pool Aircraft has been delivered to the Collateral Agent as of such date.

          Section 2.04 Grantors Remain Liable. Anything contained herein to the contrary
notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included
in the Collateral to the extent set forth therein to perform all of its duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the
Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its
duties or obligations under the contracts and agreements included in the Collateral and (c) in each
case, unless the Collateral Agent or any other Secured Party, expressly in writing or by operation
of law, assumes or succeeds to the interests of any Grantor hereunder, no Secured Party shall have
any obligation or liability under the contracts and agreements included in the Collateral by reason
of this Agreement, nor shall any Secured Party be obligated to perform any of the obligations or
duties of any Grantor under the contracts and agreements included in the Collateral or to take any
action to collect or enforce any claim for payment assigned under this Agreement.

          Section 2.05 Delivery of Collateral. The Collateral Agent shall have the right, upon
the occurrence and during the continuance of an Event of Default and if the Loans have been
accelerated and such acceleration has not been rescinded, to transfer to or to register in the name
of the Collateral Agent or any of its nominees any or all of the Pledged Equity Interests, subject
only to the revocable rights specified in Section 2.11(a). In addition, the Collateral Agent shall have the right at any
time, upon the occurrence and during the continuance of an Event of Default, to exchange
certificates or instruments representing or evidencing any Collateral for certificates or
instruments of smaller or larger denominations. To the extent that any Assigned Lease constitutes
“tangible chattel paper” (as defined in Section 9-102(a)(78) of the UCC) and a Grantor has
designated an original counterpart thereof as a “chattel paper original”, the Grantor shall, if it
has such original of such Assigned Lease in its possession, cause such original of such Assigned
Lease (the “Chattel Paper Original”) to be delivered to the Collateral Agent promptly (and
in any case no later than thirty days) after the later of the date of the execution and delivery of
such Assigned Lease by all its parties and the date of the Collateral Supplement delivered in
respect of such Assigned Lease. Notwithstanding anything else to the contrary in any Loan

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Document, no Grantor shall be required to deliver to the Collateral Agent any letter of credit,
promissory note or other Related Collateral Documents issued pursuant to an Assigned Lease.

          Section 2.06 As to the Assigned Documents. (a) Upon the inclusion of any Assigned
Agreement in the Collateral, the relevant Grantor will to the extent required under the Express
Perfection Requirements (i) give due notice to each such other party to such Assigned Agreement of
its assignment pursuant to this Agreement, (ii) take such actions as required to perfect the
Collateral Agent’s security interest in such Assigned Agreement and (iii) deliver to the Collateral
Agent a copy of such notice referred to in clause (i) and of any other documents or instruments (if
any) executed pursuant to clause (ii). Upon the inclusion of any Assigned Lease in the Collateral,
promptly after its delivery thereof to the relevant Lessee party thereto, the relevant Grantor will
deliver to the Collateral Agent the Lessee Notice, which shall contain terms to substantially the
same effect as the provisions of Exhibit G or in the form provided for in the Lease. Each Grantor
will ensure that, with respect to each Assigned Lease which constitutes an International Interest
to which it is a party, such Grantor receives a consent of the relevant Lessee to the extent
required by the Cape Town Convention for an assignment of an International Interest in respect of a
Lease to be enforceable against such Lessee The Collateral Agent (solely in its capacity as such)
will, upon request of an Obligor, reasonably promptly execute letters relating to quiet enjoyment
and other matters in accordance with Section 4.03 of the Credit Agreement.

          (b) Each Grantor shall, at its expense:

               (i) use reasonable commercial efforts, in accordance with Leasing Company Practice to
(A) perform and observe all the terms and provisions of the Assigned Documents to be
performed or observed by it and (B) after an Event of Default has occurred and is continuing
and the Loans have been accelerated and such acceleration has not been rescinded take all
such action to such end as may be from time to time reasonably requested by the Collateral
Agent; and

               (ii) furnish to the Collateral Agent a true and complete copy of each Assigned Lease
Document, on or prior to the Advance Date in respect of a Pool Aircraft, or if later,
promptly after inclusion of such Assigned Lease Document in the Collateral, whichever is
applicable and a true and complete copy of each material amendment, supplement or waiver to
an Assigned Lease Document received by such
Grantor under or pursuant to the Assigned Lease Documents, and from time to time
(subject to the provisions of the applicable Assigned Lease Document relating to the
Lessee’s obligation to furnish such information, and subject to any confidentiality
provisions therein) after an Event of Default has occurred and is continuing and the Loans
have been accelerated and for so long as such acceleration shall not have been rescinded,
upon reasonable request of the Collateral Agent, make to each other party to any Assigned
Lease Document such demands and requests for information and reports or for action as such
Grantor is entitled to make thereunder.

          (c) So long as an Event of Default shall not have occurred and be continuing, and the Loans
have not been accelerated or such acceleration shall have been rescinded and notwithstanding any
provision to the contrary in this Agreement, each Grantor shall be entitled,

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to the exclusion of the Collateral Agent but subject always to the terms of the Loan Documents (x) to exercise and
receive, directly or indirectly through one or more agents, any of the claims, rights, powers,
privileges, remedies and other benefits under, pursuant to, with respect to or arising out of the
Assigned Documents and (y) to take any action or to not take any action, directly or indirectly
through one or more agents, related to the Assigned Documents and the lessees or counterparties
thereunder, including entering into, amending, supplementing, terminating, performing, enforcing,
compelling performance of, exercising all remedies (whether arising under any Assigned Document or
by statute or at law or in equity or otherwise) under, exercising rights, elections or options or
taking any other action under or in respect of, granting or withholding notices, waivers, approvals
and consents in respect of, receiving all payments under, dealing with any credit support or
collateral security in respect of, or taking any other action in respect of, the Assigned Documents
and contacting or otherwise having any dealings with any lessee or counterparty thereunder;
provided, however, (i) so long as any Assigned Lease remains in effect, no Grantor
will abrogate any right, power or privilege granted expressly in favor of the Collateral Agent or
any other Secured Party under any Lease Assignment Document and (ii) during the continuance of an
Event of Default and the Loans have been accelerated and for so long as such acceleration shall not
have been rescinded, all such rights of each Grantor shall cease if the Collateral Agent shall, to
the extent permitted by law, notify such Grantor of such cessation and thereafter all such rights
shall become vested in the Collateral Agent, which shall thereupon have the sole right to exercise
or refrain from exercising such rights.

          (d) Notwithstanding anything in the Loan Documents to the contrary, no Grantor shall be
obligated to assign to the Collateral Agent the right to remove a Lease from the International
Registry if such assignment is expressly prohibited under such Lease, and in such case such right
may be retained by the applicable Grantor without assignment hereunder.

          Section 2.07 As to the Pool Aircraft Collateral. The Grantors shall, at their
expense, use reasonable commercial efforts, in accordance with Leasing Company Practice to (A)
perform and observe, or cause to be performed and observed, all the terms and provisions of the
documents and instruments constituting Pool Aircraft Collateral to be performed or observed by a
Obligor and (B) after an Event of Default has occurred and is continuing and the Loans have been
accelerated and for long as such acceleration shall not have been rescinded take all such action to
such end as may be from time to time reasonably requested by the Collateral Agent.

          Section 2.08 As to the Equity Collateral and Investment Collateral. (a) All Security
Collateral, Membership Interest Collateral and Beneficial Interest Collateral (collectively, the
“Equity Collateral”) shall be delivered to the Collateral Agent as follows:

               (i) in the case of each Certificated Security or Instrument, by (A) causing the
delivery of such Certificated Security or Instrument to the Collateral Agent, registered in
the name of the Collateral Agent or duly endorsed by an appropriate person to the Collateral
Agent or in blank and, in each case, held by the Collateral Agent, or (B) if such
Certificated Security or Instrument is registered in the name of any Securities Intermediary
on the books of the issuer thereof or on the books of any Securities Intermediary, by
causing such Securities Intermediary to continuously credit by book entry such Certificated
Security or Instrument to a Securities Account maintained by such

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Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that it
has been so credited;

               (ii) in the case of each Uncertificated Security, by (A) causing such Uncertificated
Security to be continuously registered on the books of the issuer thereof in the name of the
Collateral Agent or (B) if such Uncertificated Security is registered in the name of a
Securities Intermediary on the books of the issuer thereof or on the books of any securities
intermediary of a Securities Intermediary, by causing such Securities Intermediary to
continuously credit by book entry such Uncertificated Security to a Securities Account
maintained by such Securities Intermediary in the name of the Collateral Agent and
confirming in writing to the Collateral Agent that it has been so credited; and

               (iii) in the case of each Government Security registered in the name of any Securities
Intermediary on the books of the FRBNY or on the books of any securities intermediary of
such Securities Intermediary, by causing such Securities Intermediary to continuously credit
by book entry such security to the collateral account maintained by such Securities
Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral
Agent that it has been so credited.

          (b) Each Grantor and the Collateral Agent hereby represents, with respect to the Equity
Collateral, that it has not entered into, and hereby agrees that it will not enter into, any
currently effective agreement (i) with any of the other parties hereto or any Securities
Intermediary specifying any jurisdiction other than the State of New York as the “securities
intermediary’s jurisdiction” within the meaning of Section 8-110(e) of the UCC in connection with
any Securities Account with any Securities Intermediary referred to in Section 2.08(a) for purposes
of 31 C.F.R. Section 357.11(b), Section 8-110(e) of the UCC or any similar state or Federal law, or
(ii) with any other person relating to such account pursuant to which it has agreed that any
Securities Intermediary may comply with entitlement orders made by such person. The Collateral
Agent represents that it will, by express agreement with each Securities Intermediary, provide for
each item of property constituting Equity Collateral held in and credited to the Securities
Account, including cash, to be treated as a “financial asset” within the meaning of Section
8-102(a)(9)(iii) of the UCC for the purposes of Article 8 of the UCC.

          (c) Without limiting the foregoing, each Grantor and the Collateral Agent agree, and the
Collateral Agent shall cause each Securities Intermediary, to take such different or additional
action as may be required in order to maintain the perfection and priority of the security interest
of the Collateral Agent in the Equity Collateral in the event of any change in applicable law or
regulation, including Articles 8 and 9 of the UCC and regulations of the U.S. Department of the
Treasury governing transfers of interests in Government Securities.

          Section 2.09 Further Assurances. (a) In each case to the extent required pursuant to
the Express Perfection Requirements, each Grantor agrees that from time to time, at the expense of
such Grantor, such Grantor shall promptly execute and deliver all further instruments and
documents, and take all further action (including under the laws of any foreign jurisdiction), that
may be necessary, or that the Collateral Agent may reasonably request, in order to perfect and
protect any pledge, assignment or security interest granted or purported to be

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granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect
to any Collateral. Without limiting the generality of the foregoing but subject to the
qualification that the following are required only to the extent of the Express Perfection
Requirements, each Grantor shall: (i) execute and file such financing or continuation statements,
or amendments thereto, under the UCC and such other instruments or notices, that may be necessary,
or as the Collateral Agent may reasonably request, in order to perfect and preserve the pledge,
assignment and security interest granted or purported to be granted hereby and (ii) execute, file,
record, or register such additional documents and supplements to this Agreement, including any
further assignments, security agreements, pledges, grants and transfers, as may be required under
the laws of any foreign jurisdiction of organization or domicile of the relevant Grantor hereunder
or as the Collateral Agent may reasonably request, to create, attach, perfect, validate, render
enforceable, protect or establish the priority of the security interest and lien of this Agreement.

          (b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or
continuation statements, and amendments thereto, under the UCC relating to all or any part of the
Collateral without the signature of such Grantor where permitted by law. A photocopy or other
reproduction of this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

          (c) Each Grantor shall, prior to or simultaneously with any Person Owning or becoming a lessor
of any Pool Aircraft or (if its equity interests are directly or indirectly held by Parent Holdco)
directly or indirectly holding the equity interests in any such Person, cause such Person to enter
into a Grantor Supplement.

          (d) Each Grantor shall ensure that at all times an individual shall be appointed as
administrator with respect to each Owner Subsidiary and each Intermediate Lessee for purposes of
the International Registry and shall cause each such Owner Subsidiary and each such Intermediate
Lessee to register or cause to be registered (or if the Collateral Agent is making such
registration, without relieving each Grantor of such obligation, consent to such registration) with
the International Registry the Required Cape Town Registrations. To the extent that (A) the
Collateral Agent’s consent is required for any such registration, or (B) the Collateral Agent is
required to initiate any such registration, the Collateral Agent shall ensure that such consent or
such initiation of such registration is effected, and no Grantor shall be in breach of this
Section should the Collateral Agent fail to do so in a proper fashion (it being understood and
agreed that in no event shall the Collateral Agent be liable for any failure to so register as a
result of such Grantor’s failure to provide any necessary information required for such
registration in a timely manner or if such information is inaccurate or incomplete). It is
understood and agreed that International Interests provided for hereunder shall be registered in
the name of the Collateral Agent. The parties hereto agree that for the purposes of the Cape Town
Convention, each Airframe and each Engine are Aircraft Objects (as defined in the Protocol) and
this Security Agreement constitutes (i) an International Interest in each such Airframe and each
such Engine and (ii) with respect to a Lease that constitutes an International Interest, an
assignment of associated rights associated with each such Airframe and each such Engine as regards
each Lease. The parties hereto agree that for the purposes of the definition of Prospective
International Interest in the Cape Town Convention, the making of the Loans by the Lenders

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shall constitute the stated event upon which the Borrower has created or provided for an International
Interest in the Aircraft Objects and Assigned Leases.

          (e) With respect to each Pool Aircraft that is registered in the United States of America,
each Grantor shall, so long as such Pool Aircraft is so registered, and (i) in the case of a Pool
Aircraft that is not subject to an Assigned Lease, register and record with the FAA the Relevant
FAA Aircraft Mortgages with respect to such Pool Aircraft and (ii) in the case of a Pool Aircraft
that is subject to an Assigned Lease, register and record with the FAA the Relevant FAA Aircraft
Mortgages and Lease Security Assignments with respect to such Pool Aircraft. Each Grantor shall,
if at any time after the filing with the FAA of a Relevant FAA Aircraft Mortgage with respect to a
Pool Aircraft such Pool Aircraft becomes subject to an Assigned Lease, register and record with the
FAA the Relevant FAA Lease Security Assignments with respect to such Aircraft. With respect to
each Grantor holding an Equity Interest in a Pledged Equity Party incorporated under the laws of
Ireland, such Grantor shall cause each Security Document executed by it and an Additional Charge
Over Shares or, in each case, its relevant particulars to be filed in the Irish Companies
Registration Office and, where applicable, the Irish Revenue Commissioners within 21 days of
execution thereof.

          Section 2.10 Place of Perfection; Records. Each Grantor shall keep its chief place of
business and chief executive office at the location therefor specified in Schedule IV and shall
keep its records concerning the Collateral at such location or at ILFC’s chief executive office or,
upon 30 days’ prior written notice to the Collateral Agent, at such other locations in a
jurisdiction where all actions required by Section 2.03(e) shall have been taken with respect to
the Collateral. Subject to applicable confidentiality restrictions, each Grantor shall hold and
preserve such records and, if an Event of Default shall have occurred and be continuing, shall
permit representatives of the Collateral Agent upon reasonable prior notice at any time during
normal business hours reasonably to inspect and make abstracts from such records, all at the sole
cost and expense of such Grantor.

          Section 2.11 Voting Rights; Dividends; Etc. (a) So long as no Event of Default shall have occurred and be continuing and the Loans have
been accelerated and for so long as such acceleration shall not have been rescinded:

          (i) Each Grantor shall be entitled to exercise any and all voting and other consensual
rights pertaining to all or any part of the Equity Collateral pledged by such Grantor for
any purpose not inconsistent with the terms of this Agreement, the charter documents of such
Grantor, or the Loan Documents; provided that such Grantor shall not exercise or
shall refrain from exercising any such right if such action would constitute a breach of its
obligations under the Loan Documents; and

          (ii) The Collateral Agent shall execute and deliver (or cause to be executed and
delivered) to such Grantor all such proxies and other instruments as such Grantor may
reasonably request in writing and provide for the purpose of enabling such Grantor to
exercise the voting and other rights that it is entitled to exercise pursuant to Section
2.11(a)(i).

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          (b) After an Event of Default shall have occurred and be continuing and the Loans have been
accelerated and for so long as such acceleration shall not have been rescinded and such Grantor
shall have received notice to such effect from the Collateral Agent, to the extent such notice is
permitted by applicable Law, any and all distributions, dividends and interest paid in respect of
the Equity Collateral pledged by such Grantor, including any and all (i) distributions, dividends
and interest paid or payable other than in cash in respect of, and instruments and other property
received, receivable or otherwise distributed in respect of, or in exchange for, such Security
Collateral, Membership Interest Collateral or Beneficial Interest Collateral; (ii) distributions,
dividends and other distributions paid or payable in cash in respect of such Security Collateral,
Membership Interest Collateral or Beneficial Interest Collateral in connection with a partial or
total liquidation or dissolution or in connection with a reduction of capital, capital surplus or
paid-in surplus; and (iii) cash paid, payable or otherwise distributed in respect of principal of,
or in redemption of, or in exchange for, such Security Collateral, Membership Interest Collateral
or Beneficial Interest Collateral shall be forthwith delivered to the Collateral Agent and, if
received by such Grantor, shall be received in trust for the benefit of the Collateral Agent, be
segregated from the other property or funds of such Grantor and be forthwith delivered to the
Collateral Agent in the same form as so received (with any necessary endorsement).

          (c) During the continuance of an Event of Default and the Loans have been accelerated and for
so long as such acceleration shall not have been rescinded and such Grantor shall have received
notice to such effect from the Collateral Agent, to the extent such notice is permitted by
applicable Law, all rights of each Grantor to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise pursuant to Section
2.11(a)(i) and 2.11(a)(ii) shall cease, and all such rights shall thereupon become vested in the
Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising
such voting and other consensual rights.

          Section 2.12 Transfers and Other Liens; Additional Shares or Interests. (a) No Grantor shall (i) sell, assign (by operation of law or otherwise) or otherwise
dispose of, or grant any option with respect to, any of the Collateral or (ii) create or suffer to
exist any Lien upon or with respect to any of the Collateral, in the case of clause (i) or (ii)
other than a Permitted Lien or as otherwise provided for or permitted in any Loan Document.

          (b) Except as otherwise provided pursuant to the Loan Documents, the Grantors (other than
Parent Holdco) shall not issue, deliver or sell any shares, interests, participations or other
equivalents except those pledged hereunder and except to the extent of the Local Requirements
Exception. Any beneficial interests, membership interests or capital stock or other securities or
interests issued in respect of or in substitution for the Pledged Stock, the Pledged Membership
Interests or the Pledged Beneficial Interest shall be issued or delivered (with any necessary
endorsement) to the Collateral Agent in accordance with Section 2.08.

          Section 2.13 Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby
irrevocably appoints, as security for the Secured Obligations, the Collateral Agent as such
Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the
name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion during
the occurrence and continuance of an Event of Default and the acceleration of the Loans and

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such acceleration shall not have been rescinded, to take any action and to execute any instrument that
the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement,
including:

          (a) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral;

          (b) to receive, indorse and collect any drafts or other instruments and documents in
connection included in the Collateral;

          (c) to file any claims or take any action or institute any proceedings that the Collateral
Agent may deem necessary for the collection of any of the Collateral or otherwise to enforce the
rights of the Collateral Agent with respect to any of the Collateral; and

          (d) to execute and file any financing or continuation statements, or amendments thereto, and
such other instruments or notices, as may be necessary, in order to perfect (except in the case of
the Beneficial Interest Collateral provided pursuant to Section 2.01(e)) and preserve the pledge,
assignment and security interest granted hereby; provided, that the Collateral Agent’s
exercise of any such power in this clause (d) shall be subject to the Express Perfection
Requirements.

          Section 2.14 Collateral Agent May Perform. If any Grantor fails to perform any
agreement contained in this Agreement, the Collateral Agent may (but shall not be obligated to)
after such prior notice as may be reasonable under the circumstances, itself perform, or cause
performance of, such agreement, and the expenses of the Collateral Agent incurred in connection with doing so shall be payable by the
Grantors.

          Section 2.15 Covenant to Pay. Each Grantor covenants with the Collateral Agent (for
the benefit of the Secured Parties) that it will pay or discharge any monies and liabilities
whatsoever that are now, or at any time hereafter may be, due, owing or payable by such Grantor in
any currency, actually or contingently, solely and/or jointly, and/or severally with another or
others, as principal or surety on any account whatsoever pursuant to the Loan Documents in
accordance with their terms. Each Grantor agrees that (except as provided in Article 7 of the
Credit Agreement) no payment or distribution by such Grantor pursuant to the preceding sentence
shall entitle such Grantor to exercise any rights of subrogation in respect thereof until the
related Secured Obligations shall have been paid in full.

          Section 2.16 Delivery of Collateral Supplements. Upon the addition of any Pool
Aircraft or the acquisition by any Grantor of any Security Collateral, Membership Interest
Collateral or Beneficial Interest Collateral, each relevant Grantor shall concurrently execute and
deliver to the Collateral Agent a Collateral Supplement duly completed with respect to such
Collateral and shall take such steps with respect to the perfection of such Collateral as are
called for by this Agreement for Collateral of the same type; provided that the foregoing
shall not be construed to provide for any action with respect to perfection not required by the
Express Perfection Requirements; and provided further that the failure of any
Grantor to deliver any

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Collateral Supplement as to any such Collateral shall not impair the lien of
this Agreement as to such Collateral.

          Section 2.17 Identification of Collateral Agent’s Interest. The Grantors agree to use
reasonable commercial efforts to cause to be affixed as promptly as practicable after the date an
Aircraft becomes a Pool Aircraft and thereafter to maintain in the cockpit of each Pool Aircraft,
in a clearly visible location, and on each Engine, a nameplate bearing the inscription “MORTGAGED
TO CITIBANK, N.A., AS COLLATERAL AGENT”, and to use reasonable commercial efforts to cause such
nameplate to be replaced, if necessary, with a nameplate reflecting the name of any successor
Collateral Agent.

          Section 2.18 Insurance. The Grantors shall cause to be maintained, or procure that
the relevant Lessee maintains, hull and third party liability insurance policies in respect of each
Pool Aircraft in accordance with the terms of Schedule V hereto.

          Section 2.19 Covenant Regarding Control. No Grantor shall cause nor permit any Person
other than the Collateral Agent to have “control” (as defined in Section 8-106 of the UCC) of the
Collateral Account pursuant to the terms of the Credit Agreement and the Account Control Agreement.

          Section 2.20 Covenant Regarding Collateral Account. Borrower shall enter into the
Account Control Agreement as of the date hereof.

          Section 2.21 As to Irish Law. Notwithstanding anything to the contrary contained in
this Agreement and in addition to and without prejudice to any other rights or power of the
Collateral Agent under this Agreement or under general law in any relevant jurisdiction, at any
time that the Collateral shall become enforceable as provided in Section 3.01, the Collateral Agent
shall be entitled to appoint a receiver under this Agreement or under the Land and Conveyancing Law
Reform Act 2009 (as amended and as the same may be amended, modified or replaced from time to time,
the “2009 Act”) without the need for the occurrence of any of the events specified in (a)
to (c) of section 108(1) (Appointment of Receiver) of the 2009 Act, such receiver shall have all
such powers, rights and authority conferred under the 2009 Act, this Agreement and otherwise under
the laws of Ireland without any limitation or restriction imposed by the 2009 Act or otherwise
under the laws of Ireland which may be excluded or removed. The statutory power of sale conferred
by section 100 (Power of sale) of the 2009 Act shall apply to the Collateral free from restrictions
contained in section 100(1), (2), (3) and (4) and without the requirement to serve notice (as
provided for in section 100(1)) and section 108 (7) (Remuneration of a receiver) of the 2009 Act
shall not apply to the Collateral or to any receiver appointed under this Agreement.

          Section 2.22 Additional Charges Over Shares. Each Grantor undertakes with the
Collateral Agent to enter into an Additional Charge Over Shares in respect of the Equity Interests
held by it of any Subsidiary of a Grantor which is incorporated under the laws of Ireland and in
respect of any other Subsidiary of a Grantor, in each case to the extent such Additional Charge
Over Shares is necessary to perfect or protect the Collateral Agent’s interests in such Equity
Interests under applicable Law and to the extent required under the Express Perfection
Requirements.

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ARTICLE III

REMEDIES

          Section 3.01 Remedies. Notwithstanding anything herein or in any other Loan

Document to the contrary, if any Event of Default shall have occurred and be continuing and the
Loans have been accelerated and for so long as such acceleration shall not have been rescinded, and
in each case subject to the quiet enjoyment rights of the applicable Lessee of any Pool Aircraft:

          (a) The Collateral Agent may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein (including, for the avoidance of doubt, the rights and
remedies of the Collateral Agent provided for in Section 2.11(c)), all of the rights and remedies
of a secured party upon default under the UCC (whether or not the UCC applies to the affected
Collateral) and all of the rights and remedies under applicable law and also may (i) require any
Grantor to, and such Grantor hereby agrees that it shall at its expense and upon written request of
the Collateral Agent forthwith, assemble all or any part of the Collateral as directed by the
Collateral Agent and make it available to the Collateral Agent at a place to be designated by the
Collateral Agent that is reasonably convenient to both parties and (ii) without notice except as
specified below, sell or cause the sale of the Collateral or any part thereof in one or more
parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash,
on credit or for future delivery, and upon such other terms as the Collateral Agent may deem
commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required
by law, at least ten days’ prior notice to such Grantor of the time and place of any public sale or
the time after which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale
having been given. The Collateral Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned.

          (b) The Collateral Agent may, in addition to or in connection with any other remedies
available hereunder or under any other applicable law, exercise any and all remedies granted under
the Cape Town Convention as it shall determine in its sole discretion. In connection therewith,
the parties hereby agree to the extent permitted by the UCC that (i) Article 9(1) and Article 9(2)
of the Convention, wherein the parties may agree or the court may order that any Collateral shall
vest in the Collateral Agent in or towards satisfaction of the Secured Obligations, shall not
preclude the Collateral Agent from obtaining title to any Collateral pursuant to any other remedies
available under applicable law (including but not limited to Article 9-620 of the UCC); (ii) any
surplus of cash or cash proceeds held by the Collateral Agent and remaining after payment in full
of all the Secured Obligations owed to it shall be paid over to the Grantors in accordance with
Section 3.02 hereof; and (iii) the Collateral Agent may obtain from any applicable court, pending
final determination of any claim resulting from an Event of Default, speedy relief in the form of
any of the orders specified in Article 13 of the Convention and Article X of the Protocol as the
Collateral Agent shall determine in its sole and absolute discretion, subject to any procedural
requirements prescribed by applicable laws.

          (c) All cash proceeds received by the Collateral Agent in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral shall be applied in

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accordance with Section 3.02. Any sale or sales conducted in accordance with the terms of this
Section 3.01 shall be deemed conclusive and binding on each Grantor and the Secured Parties.

          Section 3.02 Priority of Payments. The Collateral Agent hereby agrees that all
cash proceeds received by the Collateral Agent in respect of any Collateral pursuant to Section
3.01 hereof and any payments by any Grantor to the Collateral Agent following an Event of Default
and the acceleration of the Loans and such acceleration shall not have been rescinded shall be paid
by the Collateral Agent in the order of priority set forth below:

          (a) first, to the Collateral Agent for the benefit of the Secured Parties, until payment
in full in cash of the Secured Obligations then outstanding; and

          (b) second, all remaining amounts to the relevant Grantors or whomsoever may be lawfully
entitled to receive such amounts as directed by a court of competent jurisdiction.

ARTICLE IV

SECURITY INTEREST ABSOLUTE

          Section 4.01 Security Interest Absolute. A separate action or actions may be
brought and prosecuted against each Grantor to enforce this Agreement, irrespective of whether any
action is brought against any other Grantor or whether any other Grantor is joined in any such
action or actions. Except as otherwise provided in the Loan Documents, all rights of the
Collateral Agent and the security interests and Liens granted under, and all obligations of each
Grantor under, until the Secured Obligations then outstanding are paid in full, this Agreement and
each other Loan Document shall be absolute and unconditional, irrespective of:

          (a) any lack of validity or enforceability of any Loan Document, Assigned Document or any
other agreement or instrument relating thereto;

          (b) any change in the time, manner or place of payment of, the security for, or in any
other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any
consent to any departure from any Loan Document or Assigned Document or any other agreement or
instrument relating thereto;

          (c) any taking, exchange, release or non-perfection of the Collateral or any other
collateral or taking, release or amendment or waiver of or consent to departure from any guaranty,
for all or any of the Secured Obligations;

          (d) any manner of application of Collateral, or proceeds thereof, to all or any of the
Secured Obligations, or any manner of sale or other disposition of any Collateral for all or any of
the Secured Obligations or any other assets of the Grantors;

          (e) any change, restructuring or termination of the corporate structure or existence of
any Grantor; or

          (f) any other circumstance that might otherwise constitute a defense available to, or a
discharge of, any Grantor or a third-party grantor of a security interest or a Person deemed to be
a surety.

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ARTICLE V

THE COLLATERAL AGENT

          The Collateral Agent and the Secured Parties agree among themselves as follows:

          Section 5.01 Authorization and Action. (a) Each Secured Party by its acceptance
of the benefits of this Agreement hereby appoints and authorizes Citibank as the initial Collateral
Agent to take such action as trustee on behalf of the Secured Parties and to exercise such powers
and discretion under this Agreement and the other Loan Documents as are specifically delegated to
the Collateral Agent by the terms of this Agreement and of the Loan Documents, and no implied
duties and covenants shall be deemed to arise against the Collateral Agent. For the avoidance of
doubt, each Secured Party by its acceptance of the benefits of this Agreement hereby requests and
instructs the Collateral Agent to enter into all Assigned Lease-related documents and instruments
on this date and as may arise from time to time for the purpose of establishing and maintaining its
security interest for itself and for the benefit of the other Secured Parties in respect of any
Assigned Lease.

          (b) The Collateral Agent accepts such appointment and agrees to perform the same but only
upon the terms of this Agreement (including any quiet enjoyment covenants given to the Lessees)
and agrees to receive and disburse all moneys received by it in accordance with the terms of this
Agreement. The Collateral Agent in its individual capacity shall not be answerable or accountable
under any circumstances, except for its own willful misconduct or gross negligence (or simple
negligence in the handling of funds or breach of any of its representations or warranties set forth
in this Agreement) and the Collateral Agent shall not be liable for any action or inaction of any
Grantor or any other parties to any of the Loan Documents.

          Section 5.02 Absence of Duties. The powers conferred on the Collateral Agent
under this Agreement with respect to the Collateral are solely to protect its interests in this
Agreement and shall not impose any duty upon it, except as explicitly set forth herein, to exercise
any such powers. Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it under the Loan Documents, the Collateral Agent shall
not have any duty as to any Collateral, as to ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or
not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of
any necessary steps to preserve or perfect rights against any parties or any other rights
pertaining to any Collateral. The
Collateral Agent shall not have any duty to ascertain or inquire as to the performance or
observance of any covenants, conditions or agreements on the part of any Grantor or Lessee.

          Section 5.03 Representations or Warranties. The Collateral Agent shall not make
nor shall it be deemed to have made any representations or warranties as to the validity, legality
or enforceability of this Agreement, any other Loan Document or any other document or instrument or
as to the correctness of any statement contained in any thereof, or as to the validity or
sufficiency of any of the pledge and security interests granted hereby, except that the Collateral
Agent in its individual capacity hereby represents and warrants (a) that each such specified
document to which it is a party has been or will be duly executed and delivered by one

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of its
officers who is and will at such time be duly authorized to execute and deliver such document on
its behalf, and (b) this Agreement is or will be the legal, valid and binding obligation of the
Collateral Agent in its individual capacity, enforceable against the Collateral Agent in its
individual capacity in accordance with its terms, subject to the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights
generally.

          Section 5.04 Reliance; Agents; Advice of Counsel. (a) The Collateral Agent shall
not incur any liability to anyone as a result of acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, bond or other document or paper
believed by it to be genuine and believed by it to be signed by the proper party or parties. The
Collateral Agent may accept a copy of a resolution of the board or other governing body of any
party to this Agreement or any Loan Document, certified by the Secretary or an Assistant Secretary
thereof or other duly authorized Person of such party as duly adopted and in full force and effect,
as conclusive evidence that such resolution has been duly adopted by said board or other governing
body and that the same is in full force and effect. As to any fact or matter the manner of
ascertainment of which is not specifically described in this Agreement, the Collateral Agent shall
be entitled to receive and may for all purposes hereof conclusively rely, and shall be fully
protected in acting or refraining from acting, on a certificate, signed by an officer of any duly
authorized Person, as to such fact or matter, and such certificate shall constitute full protection
to the Collateral Agent for any action taken or omitted to be taken by them in good faith in
reliance thereon. The Collateral Agent shall assume, and shall be fully protected in assuming,
that each other party to this Agreement is authorized by its constitutional documents to enter into
this Agreement and to take all action permitted to be taken by it pursuant to the provisions of
this Agreement, and shall not inquire into the authorization of such party with respect thereto.

          (b) The Collateral Agent may execute any of its powers hereunder or perform any duties
under this Agreement either directly or by or through agents, including financial advisors, or
attorneys or a custodian or nominee, provided, however, that the appointment of any
agent shall not relieve the Collateral Agent of its responsibilities or liabilities hereunder.

          (c) The Collateral Agent may consult with counsel and any opinion of counsel or any advice
of such counsel shall be full and complete authorization and protection in respect
of any action taken or suffered or omitted by it under this Agreement in good faith and in
accordance with such advice or opinion of counsel.

          (d) The Collateral Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this
Agreement or in relation hereto, at the request, order or direction of any of the Secured Parties,
pursuant to the provisions of this Agreement, unless such Secured Party shall have offered to the
Collateral Agent reasonable security or indemnity reasonably satisfactory to it against the costs,
expenses and liabilities which may be incurred therein or thereby.

          (e) The Collateral Agent shall not be required to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if there is reasonable ground for believing that the

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repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability
is not reasonably assured to it, and none of the provisions contained in this Agreement shall in
any event require the Collateral Agent to perform, or be responsible or liable for the manner of
performance of, any obligations of any Grantor under any of the Loan Documents.

          (f) If the Collateral Agent incurs expenses or renders services in connection with an
exercise of remedies specified in Section 3.01, such expenses (including the fees and expenses of
its counsel) and the compensation for such services are intended to constitute expenses of
administration under any bankruptcy law or law relating to creditors’ rights generally.

          (g) The Collateral Agent shall not be charged with knowledge of an Event of Default unless
the Collateral Agent obtains actual knowledge of such event or the Collateral Agent receives
written notice of such event from any of the Secured Parties.

          (h) The Collateral Agent shall not have any duty to monitor the performance of any Grantor
or any other party to the Loan Documents, nor shall the Collateral Agent have any liability in
connection with the malfeasance or nonfeasance by such parties. The Collateral Agent shall not
have any liability in connection with compliance by any Grantor or any Lessee under a Lease with
statutory or regulatory requirements related to the Collateral, any Pool Aircraft or any Lease.
The Collateral Agent shall not make or be deemed to have made any representations or warranties
with respect to the Collateral, any Pool Aircraft or any Lease or the validity or sufficiency of
any assignment or other disposition of the Collateral, any Pool Aircraft or any Lease.

          Section 5.05 Cape Town Convention. The Collateral Agent, during the term of this
Agreement, shall establish and maintain a valid and existing account as a Transacting User Entity
with the International Registry and appoint an Administrator and/or a Professional User Entity to
make registrations in regard to the Collateral as required by any Loan Documents

          Section 5.06 No Individual Liability. The Collateral Agent shall not have any individual liability in respect of all or any part
of the Secured Obligations, and all shall look, subject to the lien and priorities of payment
provided herein and in the Loan Documents, only to the property of the Grantors (to the extent
provided in the Loan Documents) for payment or satisfaction of the Secured Obligations pursuant to
this Agreement and the other Loan Documents.

ARTICLE VI

SUCCESSOR COLLATERAL AGENT

          Section 6.01 Resignation and Removal of the Collateral Agent. The Collateral
Agent may resign at any time without cause by giving at least 30 days’ prior written notice to the
Borrower and the Lenders. The Required Lenders may at any time remove the Collateral Agent without
cause by an instrument in writing delivered to the Borrower, the Lenders and the Collateral Agent.
No resignation by or removal of the Collateral Agent pursuant to this Section 6.01 shall become
effective prior to the date of appointment by the Required Lenders of a

Aircraft Mortgage and Security Agreement

27

 

successor Collateral Agent
and the acceptance of such appointment by such successor Collateral Agent.

          Section 6.02 Appointment of Successor. (a) In the case of the resignation or
removal of the Collateral Agent, the Required Lenders shall promptly appoint a successor Collateral
Agent. So long as no Event of Default shall have occurred and be continuing, any such successor
Collateral Agent shall as a condition to its appointment be reasonably acceptable to the Borrower.
If a successor Collateral Agent shall not have been appointed and accepted its appointment
hereunder within 60 days after the Collateral Agent gives notice of resignation, the retiring
Collateral Agent, the Administrative Agent or the Required Lenders may petition any court of
competent jurisdiction for the appointment of a successor Collateral Agent. Any successor
Collateral Agent so appointed by such court shall immediately and without further act be superseded
by any successor Collateral Agent appointed as provided in the first sentence of this paragraph
within one year from the date of the appointment by such court.

          (b) Any successor Collateral Agent shall execute and deliver to the relevant Secured
Parties an instrument accepting such appointment. Upon the acceptance of any appointment as
Collateral Agent hereunder, a successor Collateral Agent, upon the execution and filing or
recording of such financing statements, or amendments thereto, and such amendments or supplements
to this Agreement, and, subject to the Express Perfection Requirements, such other instruments or
notices, as may be necessary, or as the Administrative Agent may request in order to continue the
perfection (if any) of the Liens granted or purported to be granted hereby, shall succeed to and
become vested with all the rights, powers, discretion, privileges and duties of the retiring
Collateral Agent, and the retiring Collateral Agent shall be discharged from its duties and
obligations under this Agreement and the other Loan Documents. The retiring Collateral Agent shall
take all steps necessary to transfer all Collateral in its possession and all its control over the
Collateral to the successor Collateral Agent. All actions under this paragraph (b) shall be at the
expense of the Borrower; provided that if a successor Collateral Agent has been appointed
as a result of the circumstances described in Section 6.02(d), any actions under this
paragraph (b) as relating to such appointment shall be at the expense of the successor
Collateral Agent.

          (c) The Collateral Agent shall be an Eligible Institution, if there be such an institution
willing, able and legally qualified to perform the duties of the Collateral Agent hereunder and,
unless such institution is an Affiliate of a Secured Party or an Event of Default has occurred and
is continuing, reasonably acceptable to the Borrower.

          (d) Any corporation or other entity into which the Collateral Agent may be merged or
converted or with which it may be consolidated, or any corporation or other entity resulting from
any merger, conversion or consolidation to which the Collateral Agent shall be a party, or any
corporation or other entity to which substantially all the business of the Collateral Agent may be
transferred, shall be the Collateral Agent under this Agreement without further act.

ARTICLE VII

INDEMNITY AND EXPENSES

Aircraft Mortgage and Security Agreement

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          Section 7.01 Indemnity. (a) Each of the Grantors shall indemnify, defend and
hold harmless the Collateral Agent (and its officers, directors, employees, representatives and
agents) from and against, any loss, liability or expense (including reasonable legal fees and
expenses) incurred by it without negligence or bad faith on its part in connection with the
acceptance or administration of this Agreement and its duties hereunder, including the costs and
expenses of defending itself against any claim or liability and of complying with any process
served upon it or any of its officers in connection with the exercise or performance of any of its
powers or duties hereunder. The Collateral Agent (i) must provide reasonably prompt notice to the
applicable Grantor of any claim for which indemnification is sought, provided that the
failure to provide notice shall only limit the indemnification provided hereby to the extent of any
incremental expense or actual prejudice as a result of such failure; and (ii) must not make any
admissions of liability or incur any significant expenses after receiving actual notice of the
claim or agree to any settlement without the written consent of the applicable Grantor, which
consent shall not be unreasonably withheld. No Grantor shall be required to reimburse any expense
or indemnity against any loss or liability incurred by the Collateral Agent through negligence or
bad faith.

          Each Grantor, as applicable, may, in its sole discretion, and at its expense, control the
defense of the claim including, without limitation, designating counsel for the Collateral Agent
and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of
any claim; provided that (i) the applicable Grantor may not agree to any settlement
involving any indemnified person that contains any element other than the payment of money and
complete indemnification of the indemnified person without the prior written consent of the
affected indemnified person, (ii) the applicable Grantor shall engage and pay the expenses of
separate counsel for the indemnified person to the extent that the interests of the Collateral
Agent are in conflict with those of such Grantor and (iii) the indemnified person shall have the
right to approve the counsel designated by such Grantor which consent shall not be unreasonably
withheld.

          (b) Each Grantor shall agrees to pay to the Collateral Agent (i) an annual fee set forth
under a separate agreement between the Borrower and the Collateral Agent and (ii) all reasonable
out-of-pocket expenses incurred by the Collateral Agent, including the reasonable fees and expenses
of its counsel and of any experts and agents in connection with (A) the administration of this
Agreement (in accordance with fee arrangements agreed between the Collateral Agent and the
Borrower), (B) the making of any filing or registration required under the Loan Documents
including, without limitation, with the International Registry, (C) the custody, preservation, use
or operation of, or the sale of, collection from or other realization upon, any of the Collateral,
(D) the exercise or enforcement of any of the rights of the Collateral Agent or any other Secured
Party against such Grantor hereunder or (E) the failure by any Grantor to perform or observe any of
the provisions hereof.

          Section 7.02 Secured Parties’ Indemnity. (a) The Collateral Agent shall be
entitled to be indemnified (subject to the limitations and requirements described in Section 7.01
mutatis mutandis) by the Lenders to the sole satisfaction of the Collateral Agent
before proceeding to exercise any right or power under this Agreement at the request or direction
of the Administrative Agent, to the extent not indemnified by the Grantors.

Aircraft Mortgage and Security Agreement

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          (b) In order to recover under clause (a) above, the Collateral Agent: (i) must provide
reasonably prompt notice to the Administrative Agent of any claim for which indemnification is
sought, provided that the failure to provide notice shall only limit the indemnification
provided hereby to the extent of any incremental expense or actual prejudice as a result of such
failure; and (ii) must not make any admissions of liability or incur any significant expenses after
receiving actual notice of the claim or agree to any settlement without the written consent of the
Administrative Agent which consent shall not be unreasonably withheld.

          (c) The Administrative Agent may, in its sole discretion, and at its expense, control the
defense of the claim including, without limitation, designating counsel for the Collateral Agent
and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of
any claim; provided that (i) the Administrative Agent may not agree to any settlement
involving any indemnified person that contains any element other than the payment of money and
complete indemnification of the indemnified person without the prior written consent of the
affected indemnified person, (ii) the Administrative Agent shall engage and pay the expenses of
separate counsel for the indemnified person to the extent that the interests of the Collateral
Agent are in conflict with those of the Administrative Agent and (iii) the indemnified person shall
have the right to approve the counsel designated by the Administrative Agent which consent shall
not be unreasonably withheld.

          (d) The provisions of Section 7.01 and this Section 7.02 shall survive the termination of
this Agreement or the earlier resignation or removal of the Collateral Agent.

          Section 7.03 No Compensation from Secured Parties. The Collateral Agent agrees
that it shall have no right against the Secured Parties for any fee as compensation for its
services in such capacity.

ARTICLE VIII

MISCELLANEOUS

          Section 8.01 Amendments; Waivers; Etc. (a) No amendment or waiver of any
provision of this Agreement, and no consent to any departure by any party from the provisions of
this Agreement, shall in any event be effective unless the same shall be in writing and signed by
the Collateral Agent and each party hereto. No failure on the part of the Collateral Agent to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The Collateral Agent may, but shall have no obligation
to, execute and deliver any amendment or modification which would affect its duties, powers,
rights, immunities or indemnities hereunder.

          (b) Upon the execution and delivery by any Person of a Grantor Supplement, (i) such Person
shall be referred to as an “Additional Grantor” and shall be and become a Grantor hereunder, and
each reference in this Agreement to “Grantor” shall also mean and be a reference to such Additional
Grantor, (ii) Annexes I, II, III and IV attached to each Grantor Supplement shall be incorporated
into, become a part of and supplement Schedules I, II, III and IV, respectively, and the Collateral
Agent may attach such Annexes as supplements to such Schedules; and each reference to such
Schedules shall be a reference to such Schedules as so

Aircraft Mortgage and Security Agreement

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supplemented and (iii) such Additional
Grantor shall be a Grantor for all purposes under this Agreement and shall be bound by the
obligations of the Grantors hereunder.

          (c) Upon the execution and delivery by a Grantor of a Collateral Supplement, Annexes I and
II to such Collateral Supplement shall be incorporated into, become a part of and supplement
Schedules I and II, respectively, and the Collateral Agent may attach such Annexes as supplements
to such Schedules; and each reference to such Schedules shall be a reference to such Schedules as
so supplemented.

          Section 8.02 Addresses for Notices; Delivery of Documents. (a) Except in the
case of notices and other communications expressly permitted to be given by telephone, all notices
and other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopier or
electronic mail as follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as follows:

For each Grantor (other than Irish Subsidiary Holdco):

International Lease Finance Corporation

10250 Constellation Blvd.

Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Facsimile: (310) 788-1990

Telephone: (310) 788-1999

Email: legalnotices@ilfc.com

For Irish Subsidiary Holdco:

Ballysky Aircraft Ireland Limited

c/o ILFC Ireland Limited

30 North Wall Quay

Dublin 1, Ireland

Facsimile: 353-1-672-0270

Telephone: 353-1-802-8901

with a copy to

Aircraft Mortgage and Security Agreement

31

 

International Lease Finance Corporation

10250 Constellation Blvd.

Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Facsimile: (310) 788-1990

Telephone: (310) 788-1999

Email: legalnotices@ilfc.com

     For the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile: (212) 657-2762

or, as to each party, at such other address as shall be designated by such party in a written
notice to each other party complying as to delivery with the terms of this Section 8.02. Notices
and other communications sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices and other communications
sent by telecopier shall be deemed to have been given when sent (except that, if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).

          (b) All documents required to be delivered to the Collateral Agent shall be delivered in
accordance with the provisions of Section 5.09(c) of the Credit Agreement.

          Section 8.03 Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

          Section 8.04 Severability. If any provision of this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired.

          Section 8.05 Continuing Security Interest. Subject to Section 8.06, this
Agreement shall create a continuing security interest in the Collateral and shall (a) remain in
full force and effect until the earlier of the payment in full in cash of the Secured Obligations
then outstanding to the Secured Parties, (b) be binding upon each Grantor, its successors and
assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to
the benefit of the Secured Parties and their respective successors, permitted transferees and
permitted assigns.

          Section 8.06 Release and Termination. (a) Upon any sale, transfer or other
disposition or removal from the Designated Pool of any Pool Aircraft or other item of Collateral in
accordance with the terms of the Loan Documents, including such Pool Aircraft, the Pledged Equity
Interest in each Owner Subsidiary or Intermediate Lessee that owns or leases such Pool Aircraft, or
if applicable, Irish Subsidiary Holdco or CA Subsidiary Holdco (in each case, upon a

Aircraft Mortgage and Security Agreement

32

 

removal of
such Obligor in accordance with Sections 2.10 or 5.04 of the Credit Agreement), such Collateral
will be deemed released from the Lien hereof (and related guarantees will be deemed released in
accordance with Section 7.11 of the Credit Agreement), and the Collateral Agent will, at the
relevant Grantor’s expense, execute and deliver to the Grantor of such item of Collateral such
documents as such Grantor shall reasonably request and provide to the Collateral Agent to evidence
the release of such item of Collateral from the assignment and security interest granted hereby and
to evidence the release of any related guaranty, and to the extent that (A) the Collateral Agent’s
consent is required for any deregistration of the interests in such released Collateral from the
International Registry or any other registry or (B) the Collateral Agent is required to initiate
any such deregistration, the Collateral Agent shall ensure that such consent or such initiation of
such deregistration is effected.

          Any amounts released from the Collateral Account by the Collateral Agent in accordance with
the terms of the Loan Documents shall be deemed released from the Lien hereof.

          (b) Upon the payment in full in cash of the Secured Obligations then outstanding, the
pledge, assignment and security interest granted by Section 2.01 hereof shall terminate, the
Collateral Agent shall cease to be a party to this agreement, and all provisions of this Agreement
(except for this Section 8.06(b)) relating to the Secured Obligations, the Secured Parties or the
Collateral Agent shall cease to be of any effect insofar as they relate to the Secured Obligations,
the Secured Parties or the Collateral Agent. Upon any such termination, the Collateral Agent will,
at the relevant Grantor’s expense, execute and deliver to each relevant Grantor such documents as
such Grantor shall prepare and reasonably request to evidence such termination.

          (c) If, prior to the termination of this Agreement, the Collateral Agent ceases to be the
Collateral Agent in accordance with the definition of “Collateral Agent” in Section 1.01, all
certificates, instruments or other documents being held by the Collateral Agent at such time shall,
within five (5) Business Days from the date on which it ceases to be the Collateral Agent, be
delivered to the successor Collateral Agent.

          Section 8.07 Currency Conversion. If any amount is received or recovered by the
Collateral Agent in a currency (the “Received Currency”) other than the currency in which
such amount was expressed to be payable (the “Agreed Currency”), then the amount in the
Received Currency actually received or recovered by the Collateral Agent, to the extent permitted
by law, shall only constitute a discharge of the relevant Grantor to the extent of the amount of
the Agreed Currency which the Collateral Agent was or would have been able in accordance with its
or his normal procedures to purchase on the date of actual receipt or recovery (or, if that is not
practicable, on the next date on which it is so practicable), and, if the amount of the Agreed
Currency which the Collateral Agent is or would have been so able to purchase is less than the
amount of the Agreed Currency which was originally payable by the relevant Grantor, such Grantor
shall pay to the Collateral Agent for the benefit of the Secured Parties such amount as it shall
determine to be necessary to indemnify the Collateral Agent and the Secured Parties against any
loss sustained by it as a result (including the cost of making any such purchase and any premiums,
commissions or other charges paid or incurred in connection therewith) and so that, to the extent
permitted by law, (i) such indemnity shall constitute a

Aircraft Mortgage and Security Agreement

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separate and independent obligation of each
Grantor distinct from its obligation to discharge the amount which was originally payable by such
Grantor and (ii) shall give rise to a separate and independent cause of action and apply
irrespective of any indulgence granted by the Collateral Agent and continue in full force and
effect notwithstanding any judgment, order, claim or proof for a liquidated amount in respect of
the amount originally payable by any Grantor or any judgment or order and no proof or evidence of
any actual loss shall be required.

          Section 8.08 Governing Law. THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW
YORK AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          Section 8.09 Jurisdiction; Consent to Service of Process. (a) To the extent permitted by applicable law, each party hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York
State court or federal court of the United States of America sitting in New York County, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Loan Documents, 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 shall
affect any right that any Secured Party may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against any Borrower Party or its properties
in the courts of any jurisdiction.

          (b) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that 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 or the
other Loan Documents in any New York State or federal court described above. 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.

          (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 8.02. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          Section 8.10 Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and the other Loan Documents and the Agent Fee Letter constitute the
entire contract among the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof.
This Agreement (i) will become effective when the Collateral Agent shall have received counterparts
hereof that, when taken together, bear the signatures of each of the other parties hereto and (ii)
thereafter will be binding upon and inure to the benefit of the parties hereto and

Aircraft Mortgage and Security Agreement

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their respective
permitted successors and assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or electronic mail will be effective as delivery of a manually executed
counterpart of this Agreement.

          Section 8.11 Table of Contents, Headings, Etc. Article and Section headings and
the Table of Contents herein are for convenience of reference only, are not part of this Agreement
and shall not affect the construction of, or be taken into consideration in interpreting, this
Agreement.

          Section 8.12 Non-Invasive Provisions. (a) Notwithstanding any other provision of the Loan Documents, the Collateral Agent agrees
that, so long as no Event of Default shall have occurred and be continuing and the Loans have been
accelerated and such acceleration has not been rescinded, not to take any action or cause to be
taken any action, or permit any Person claiming by, through or on behalf of it to take any action
or cause any action, that would interfere with the possession, use, operation and quiet enjoyment
of and other rights with respect to any Pool Aircraft or Collateral related thereto and all rents,
revenues, profits and income therefrom, including, the right to enforce manufacturers’ warranties,
the right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair or
replacement of the Pool Aircraft or otherwise to the extent not required to be deposited as Account
Collateral under the Loan Documents and the right to engage in pooling, leasing and similar
actions, in each case in accordance with the terms of this Agreement or the other applicable Loan
Documents.

          (b) Notwithstanding any other provision of the Loan Documents, the Collateral Agent agrees
that, so long as no “Event of Default” (or similar term) under a Lease (as defined in such Lease)
shall have occurred and be continuing and as otherwise provided in any Lease, not to take any
action or cause to be taken any action, or permit any person claiming by, through or on behalf of
it to take any action or cause any action, that would interfere with the possession, use, operation
and quiet enjoyment of and other rights of the Lessee with respect to any Pool Aircraft or
Collateral related thereto and all rents, revenues, profits and income therefrom, including, the
right to enforce manufacturers’ warranties, the right to apply or obtain insurance proceeds for
damage to the Pool Aircraft to the repair of the Pool Aircraft or otherwise as provided in such
Lease and the right to engage in pooling, leasing and similar actions, in each case in accordance
with the terms of such Lease.

          (c) The Collateral Agent agrees to release any Lien the Collateral Agent may have upon any
Engine upon (i) a Grantor providing the Collateral Agent with written notice of a transfer thereof
promptly after receipt of a notice thereof from the relevant Lessee and with a copy of the bill of
sale or other instrument evidencing the transfer of title of such replacement Engine to a Grantor,
(ii) in the case of the transfer of title to an Engine initiated by a Grantor, the Grantor
providing the Collateral Agent with a certificate of such transfer and a copy of the bill of sale
or other instrument evidencing the transfer of title of a replacement Engine to a Grantor, or (iii)
upon the total loss payment or Loan repayment being received (or replacement aircraft being
provided) in a case where the Airframe, but not such Engine, was the subject of an Event of Loss or
other total loss; provided that, for the avoidance of doubt, the Collateral Agent shall not
release any Lien upon an engine that is not replaced by a Grantor or a Lessee, unless such Engine
is associated with an aircraft that was subject to an Event of Loss or other total loss or
otherwise removed from the Designated Pool. The Borrower shall at the request of the Collateral
Agent

Aircraft Mortgage and Security Agreement

35

 

execute a supplement to this Agreement to evidence that any such replacement engine has
become subject to the Lien of this Agreement and the Collateral Agent shall, at the request of the
Borrower, execute a supplement to this Agreement to evidence the release of the applicable Engine
from the Lien of the Collateral Agent.

          (d) The Lenders and the Collateral Agent agree that they will not claim, and upon the
request of the Borrower, the Collateral Agent will confirm in writing that it does not claim, any
right, title or interest in any engine or part (including any audio, visual, telephonic,
seating, entertainment or similar equipment) that is installed on a Pool Aircraft which does
not constitute an “engine” or “part” as defined in the applicable Lease

          (e) For the avoidance of doubt, the Collateral Agent agrees that a Borrower Party may from
time to time lease out an engine that is part of a Pool Aircraft or lease in an engine that is not
part of a Pool Aircraft as it determines in accordance with Leasing Company Practice.

          Section 8.13 Limited Recourse. (a) In the event that the direct or indirect
assets of the Grantors are insufficient, after payment of all other claims, if any, ranking in
priority to the claims of the Collateral Agent or any Secured Party hereunder, to pay in full such
claims of the Collateral Agent or such Secured Party (as the case may be), then the Collateral
Agent or the Secured Party shall have no further claim against the Grantors (other than the
Borrower) in respect of any such unpaid amounts; provided that the foregoing limitation on
recourse shall in no way limit the right of any Secured Party to enforce the obligations of ILFC
set forth in Article 7 of the Credit Agreement.

          (b) To the extent permitted by applicable law, no recourse under any obligation, covenant
or agreement of any party contained in this Agreement shall be had against any equityholder (not
including any Grantor as an equityholder of any Pledged Equity Party hereunder), officer or
director of the relevant party as such, by the enforcement of any assessment or by any proceeding,
by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement
is a corporate obligation of the relevant party and no personal liability shall attach to or be
incurred by the equityholders (not including any Grantor as an equityholder of any other Grantor
hereunder), officers or directors of the relevant party as such, or any of them under or by reason
of any of the obligations, covenants or agreements of such relevant party contained in this
Agreement, or implied therefrom, and that any and all personal liability for breaches by such party
of any of such obligations, covenants or agreements, either at law or at equity or by statute or
constitution, of every such equityholder (not including any Grantor as an equityholder of any
Pledged Equity Party hereunder), officer or director is hereby expressly waived by the other
parties as a condition of and consideration for the execution of this Agreement.

          (c) The guarantees, obligations, liabilities and undertakings granted by any Pledged
Equity Party organized under the laws of France under this Agreement and the other Loan Documents
shall, for each relevant financial year, be, in any and all cases, strictly limited to 90% of the
annual net margin generated by such Pledged Equity Party or Pledged Equity Parties in connection
with back-to-back leasing activities between it and any other Pledged Equity Party with respect to
the lease of Pool Aircraft.

Aircraft Mortgage and Security Agreement

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[The Remainder of this Page is Intentionally Left Blank]

Aircraft Mortgage and Security Agreement

37

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by its representative or officer thereunto duly authorized as of the date first above
written.

	 	 	 	 	 
	 	PARK TOPANGA AIRCRAFT INC., as a Grantor

 	 
	 	By  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Treasurer 	 
	 
	 	TEMESCAL AIRCRAFT INC., as a Grantor

 	 
	 	By  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Treasurer 	 
	 
	 	BALLYSKY AIRCRAFT IRELAND LIMITED, as a Grantor

 	 
	 	By  	/s/ Niall C. Sommerville
 	 
	 	 	Name:  	Niall C. Sommerville 	 
	 	 	Title:  	Director 	 
	 
	 	CHARMLEE AIRCRAFT INC., as a Grantor

 	 
	 	By  	/s/ Pamela S. Hendry
 	 
	 	 	Name:  	Pamela S. Hendry 	 
	 	 	Title:  	Treasurer 	 
	 

Aircraft Mortgage and Security Agreement

38

 

	 	 	 	 	 
	 	CITIBANK, N.A. not in its individual capacity but solely

as the Collateral Agent

 	 
	 	By  	/s/ Thomas Hollahan
 	 
	 	 	Name:  	Thomas Hollahan 	 
	 	 	Title:  	Managing Director and Vice President 	 
	 

Aircraft Mortgage and Security Agreement

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SCHEDULE I

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

AIRCRAFT OBJECTS

	 	 	 	 	 	 	 	 	 
	 	 	Airframe	 	 	 	 	 	 
	 	 	Manufacturer and	 	 	 	Engine Manufacturer and	 	 
	 	 	Model	 	Airframe MSN	 	Engine Model	 	Engine MSNs
	1.

	 	None
	 	N/A
	 	N/A
	 	N/A

Aircraft Mortgage and Security Agreement

I-1

 

SCHEDULE II

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

PLEDGED EQUITY INTERESTS

PLEDGED STOCK

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of	 
	Pledged Equity Party	 	Par Value	 	 	Certificate No(s).	 	 	Number of Shares	 	 	Outstanding Shares	 
	Temescal Aircraft
Inc.
	 	 	N/A	 	 	 	1	 	 	 	100	 	 	 	100	%
	Ballysky Aircraft
Ireland Limited
	 	$	1	 	 	 	1	 	 	 	10	 	 	 	100	%
	Charmlee Aircraft
Inc.
	 	 	N/A	 	 	 	1	 	 	 	100	 	 	 	100	%

PLEDGED BENEFICIAL INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Beneficial Interest
	 

	 	 
	 	 

PLEDGED MEMBERSHIP INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Membership Interest
	 

	 	 
	 	 

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PLEDGED DEBT

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Description of	 	 
	 	 	Intercompany	 	Instrument of	 	Amount of Pledged
	Intercompany Lender	 	Borrower	 	Pledged Debt	 	Debt
	Temescal Aircraft
Inc.

	 	Charmlee Aircraft
Inc.
	 	Intercompany Demand

Promissory Note
	 	$	3,000,000,000	 
	Temescal Aircraft
Inc.

	 	Ballysky Aircraft

Ireland Limited
	 	Intercompany Demand

Promissory Note
	 	$	3,000,000,000	 

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SCHEDULE III

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

TRADE NAMES

	1.	 	Grantor: Park Topanga Aircraft Inc.

Trade Name: Park Topanga Aircraft Inc.
	 
	2.	 	Grantor: Temescal Aircraft Inc.

Trade Name: Temescal Aircraft Inc.
	 
	3.	 	Grantor: Charmlee Aircraft Inc.

Trade Name: Charmlee Aircraft Inc.
	 
	4.	 	Grantor: Ballysky Aircraft Ireland Limited

Trade Name: Ballysky Aircraft Ireland Limited

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SCHEDULE IV

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

CHIEF PLACE OF BUSINESS AND CHIEF EXECUTIVE OR REGISTERED OFFICE

	 	 	 
	 

	 	Chief Executive Office, Chief Place of
	 

	 	Business or Registered Office
	Name of Grantor
	 	and Organizational ID (if applicable)
	Park Topanga Aircraft Inc.

	 	10250 Constellation Blvd.
	 

	 	Suite 3400
	 

	 	Los Angeles, CA 90067
	 

	 	Facsimile: (310) 788-1990
	 

	 	Telephone: (310) 788-1999
	 

	 	Organizational ID: 27-5306173
	 
	 	 
	Temescal Aircraft Inc.

	 	10250 Constellation Blvd.
	 

	 	Suite 3400
	 

	 	Los Angeles, CA 90067
	 

	 	Facsimile: (310) 788-1990
	 

	 	Telephone: (310) 788-1999
	 

	 	Organizational ID: 27-5306297
	 
	 	 
	Ballysky Aircraft Ireland Limited

	 	c/o ILFC Ireland Limited
	 

	 	30 North Wall Quay
	 

	 	Dublin 1, Ireland
	 

	 	Facsimile: 353-1-672-0270
	 

	 	Telephone: 353-1-802-8901
	 

	 	Corporation No. 495999
	 
	 	 
	Charmlee Aircraft Inc.

	 	10250 Constellation Blvd.
	 

	 	Suite 3400
	 

	 	Los Angeles, CA 90067
	 

	 	Facsimile: (310) 788-1990
	 

	 	Telephone: (310) 788-1999
	 

	 	Organizational ID: 27-5304959

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SCHEDULE V

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

INSURANCE

	1.	 	Obligation to Insure
	 
	 	 	So long as this Agreement shall remain in effect, the Grantors will ensure that there is
effected and maintained appropriate insurances, maintained with insurers or reinsured
with reinsurers of recognized responsibility or pursuant to governmental indemnities, in
respect of each Pool Aircraft and the Collateral Agent and the Administrative Agent and its
operation including insurance for:

	 	(a)	 	loss or damage to each Pool Aircraft and each part thereof; and
	 
	 	(b)	 	any liability for injury to or death of persons and damage to or the
destruction of public or private property arising out of or in connection with the
operation, storage, maintenance or use of (in each case to the extent available) the
Pool Aircraft and of any other part thereof not belonging to the Grantors but from time
to time installed on the airframe.

	2.	 	Specific Insurances

	 	 	The Grantors will maintain or will cause to be maintained the following specific insurances
with respect to each Pool Aircraft (subject to paragraph 3):

	 	(a)	 	All Risks Hull Insurance — All risks hull insurance policy on the Pool
Aircraft in an amount at least equal to 110% of the outstanding principal of the Loans
allocable to such Pool Aircraft, calculated based on the most recent appraised value
(the “Required Insured Value”) on an agreed value basis and naming the
Collateral Agent (for and on behalf of itself and the Secured Parties) as a loss payee
for the Required Insured Value (provided, however, that, if the
applicable insurance program uses AVN67B or a successor London market endorsement
similar thereto, the Grantor shall procure that the Collateral Agent is named as a
“Contract Party” in respect of such hull insurance and shall ensure that the Collateral
Agent is also named as such a “Contract Party” in respect of any new Lease entered
into);
	 
	 	(b)	 	Hull War Risk Insurance — Hull war risk and allied perils insurance,
including hijacking, (excluding, however, confiscation by government of registry or
country of domicile to the extent coverage of such risk is not generally available to
the applicable Lessee in the relevant insurance market at a commercially reasonable cost
or is not customarily obtained by operators in such jurisdiction at such time in
accordance with Leasing Company Practice) on the Pool Aircraft where the custom in the
industry is to carry war risk for aircraft operating on routes or kept in locations
similar to the Pool Aircraft in an amount not less than the Required Insured Value on an
agreed value basis and naming the Collateral Agent (for and on behalf of itself and the
Secured Parties) as a loss payee for the Required Insured Value (provided,

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	 	 	 	however, that, if the applicable insurance program uses AVN67B or a successor
London market endorsement similar thereto, the Grantors shall procure that the
Collateral Agent is named as a “Contract Party” in respect of such insurance and shall
ensure that the Collateral Agent is also named as such a “Contract Party” in respect of
any new Lease entered into);
	 
	 	(c)	 	Legal Liability Insurance — Third party legal liability insurance
(including war and allied perils) for a combined single limit (bodily injured and
property damage) of not less than $500,000,000 for a Narrowbody Aircraft, and not less
than $750,000,000 for Widebody Aircraft. The Collateral Agent and the Administrative
Agent (for and on behalf of themselves and the Secured Parties) shall be named as
additional insureds on such policies; provided that if the applicable insurance
program uses AVN 67B or a successor London market endorsement similar thereto, the
Grantors shall procure that the Collateral Agent and the Administrative Agent are named
as “Contract Parties” in respect of such insurance and the Grantors shall ensure that
the Collateral Agent and the Administrative Agent are also named as such a “Contract
Party” in respect of any new Lease.
	 
	 	(d)	 	Aircraft Spares Insurance — Insurance for the engines and the parts while
not installed on the airframe for their replacement cost or an agreed value basis.
	 
	 	 	 	Proceeds of insurance paid to the Collateral Agent shall be disbursed to the Borrower unless
an Event of Default has occurred and is continuing, in which case such proceeds will be held
in the Collateral Account until applied as provided in the Credit Agreement or herein;
provided, however, that if, pursuant to a Lease, such insurance proceeds are
payable to a Lessee, such insurance proceeds shall in all circumstances be paid to such Lessee
in accordance with such Lease.

	3.	 	Variations on Specific Insurance Requirements

	 	 	In certain circumstances, it is customary that not all of the insurances described in
paragraph 2 be carried for the Pool Aircraft. For example, when a Pool Aircraft is not on
lease to a passenger air carrier or is in storage or is being repaired or maintained, ferry
or ground rather than passenger flight coverage for the Pool Aircraft are applicable.
Similarly, indemnities may be provided by a Governmental Authority in lieu of particular
insurances; provided, however, that the Grantors shall not, without the prior
written consent of the Collateral Agent, be entitled to accept any new such governmental
indemnities other than when such indemnities are granted by a Governmental Authority of a
country or jurisdiction that is not a Prohibited Country. The relevant Grantor will
determine the necessary coverage for the Pool Aircraft in such situations consistent with
Leasing Company Practice with respect to similar aircraft.

	4.	 	Hull Insurances in Excess of Required Insurance Value

	 	 	For the avoidance of doubt, any Grantor and/or any Lessee may carry hull risks and hull war
and allied perils insurance on the Pool Aircraft in excess of the Required Insured Value
which (subject in the case of the Grantors with respect to the insurance required to

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	 	 	be carried by the Lessee under the Lease to no Event of Default having occurred and being
continuing) will not be payable to the Collateral Agent. Such excess insurance proceeds, if
paid under the insurances required to be carried by the Lessee under the Lease, will be
payable to (i) if payable to the Grantors, to the relevant Grantor, unless an Event of
Default has occurred and is continuing in which case the excess shall be payable to the
Collateral Agent or (ii) if payable to the Lessee to the Lessee in all circumstances.
	 
	5.	 	Currency
	 
	 	 	All insurance and reinsurances effected pursuant to this Schedule V shall be payable in
Dollars, save that in the case of the insurances referred to in paragraph 2(c) (if such
denomination is (a) required by the law of the state of registration of the Pool Aircraft; or
(b) the normal practice of airlines in the relevant country that operate aircraft leased from
lessors located outside such country; or (c) otherwise accepted in accordance with Leasing
Company Practice) or paragraph 2(d).
	 
	6.	 	Specific Terms of Insurances
	 
	 	 	Insurance policies which are underwritten in the London and/or other non-US insurance market
and which pertain to financed or leased aircraft equipment contain the coverage and
endorsements described in AVN67B or a successor London market endorsement as it may be
amended or revised or its equivalent. Each of the Grantors agrees that, so long as this
Agreement shall remain in effect, the Pool Aircraft will be insured and the applicable
insurance policies endorsed either (i) in a manner consistent with AVN67B or a successor
London market endorsement, as it may be amended or revised or its equivalent or (ii) as may
then be customary in the airline industry for aircraft of the same type as the Pool Aircraft
utilised by operators in the same country and whose operational network for such Pool
Aircraft and credit status is similar to the type of business as the Lessee (if any) and at
the time commonly available in the insurance market. In all cases, the relevant Grantor will
set the standards, review and manage the insurances on the Pool Aircraft consistent with
Leasing Company Practice with respect to similar aircraft.
	 
	7.	 	Insurance Brokers and Insurers
	 
	 	 	In reviewing and accepting the insurance brokers (if any) and reinsurance brokers (if any)
and insurers and reinsurers (if any) providing coverage with respect to the Pool Aircraft,
the relevant Grantor will utilize standards consistent with Leasing Company Practice with
respect to similar aircraft. It is recognized that airlines in certain countries are
required to utilize brokers (and sometimes even no brokers) or carry insurance with local
insurance brokers and insurers. If at any time any Pool Aircraft is not subject to a Lease,
the relevant Grantor will cause its insurance brokers to provide the Collateral Agent with
evidence that the insurances described in this Schedule V are in full force and effect.
	 
	8.	 	Deductible Amounts, Self-Insurance and Reinsurance
	 
	 	 	With respect to the type of aircraft concerned, the nationality and creditworthiness of the
airline operator, the airline operator’s use and operation thereof and to the scope of and
the

Aircraft Mortgage and Security Agreement

V-3

 

	 	 	amount covered by the insurances carried by the Lessee, the relevant Grantor will apply
standards consistent with Leasing Company Practice with respect to similar aircraft in
reviewing and accepting the amount of any insurance deductibles, whether the Lessee may
self-insure any of the risks covered by the insurances and the scope and terms of
reinsurance, if any, including a cut-through and assignment clause.
	 
	9.	 	Renewals
	 
	 	 	The Grantors will monitor the insurances on the Pool Aircraft and their expiration dates.
The relevant Grantor shall, when requested by the Collateral Agent, promptly inform the
Collateral Agent as to whether or not it has been advised that renewal instructions for any
of the insurances have been given by the airline operator or its broker prior to or on the
scheduled expiry date of the relevant insurance. The relevant Grantor shall promptly notify
the Collateral Agent in writing if it receives notice that any of the insurances have in fact
expired without renewal. Promptly after receipt, the relevant Grantor will provide to the
Collateral Agent evidence of renewal of the insurances and reinsurance (if any).
	 
	10.	 	Information
	 
	 	 	Subject to applicable confidentiality restrictions, each of the Grantors shall provide the
Collateral Agent or shall ensure that the Collateral Agent is provided with any information
reasonably requested by it from time to time concerning the insurances maintained with
respect to the Pool Aircraft or, if reasonably available to the Grantors, in connection with
any claim being made or proposed to be made thereunder.

Aircraft Mortgage and Security Agreement

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EXHIBIT A-1

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF COLLATERAL SUPPLEMENT

Citibank, N.A., as Collateral Agent

388 Greenwich Street, 14th Floor

New York, NY 10013

Attn: Jenny Cheng

Fax: 212-657-2762

[Date]

      Re: Aircraft Mortgage and Security Agreement, dated as of March 30, 2011

Ladies and Gentlemen:

          Reference is made to the Aircraft Mortgage and Security Agreement, dated as of March 30, 2011
(the “Aircraft Mortgage and Security Agreement”), among PARK TOPANGA AIRCRAFT INC., a
California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC., a California corporation
(the “Borrower”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability company
incorporated under the laws of Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT
INC., a California corporation (the “CA Subsidiary Holdco”), and the ADDITIONAL GRANTORS
who from time to time become grantors under the Aircraft Mortgage and Security Agreement (together
with Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the
“Grantors”), and CITIBANK, N.A., a national banking association, as the collateral agent
(in such capacity, and together with any permitted successor or assign thereto or any permitted
replacement thereof, the “Collateral Agent”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the Aircraft Mortgage and
Security Agreement.

          The undersigned hereby delivers, as of the date first above written, the attached Annexes I,
II, III and IV pursuant to Section 2.16 of the Aircraft Mortgage and Security Agreement.

          The undersigned Grantor hereby confirms that the property included in the attached Annexes
constitutes part of the Collateral and hereby makes each representation and warranty set forth in
Section 2.03 of the Aircraft Mortgage and Security Agreement (as supplemented by the attached
Annexes I and II).

          Attached are (i) as Annex I, a duly completed description of each of the Aircraft Objects
constituting part of the Collateral granted by the undersigned Grantor and not described in the
schedules to the Security Agreement, or another Grantor Supplement or Collateral Supplement, (ii)
as Annex II, a duly completed description of the Pledged Equity Interests granted by the
undersigned Grantor and not described in the schedules to the Security

Aircraft Mortgage and Security Agreement

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Agreement, or another Grantor Supplement or Collateral Supplement, (iii) as Annex III, where
required with respect to any Assigned Agreement relating to the foregoing Collateral, a copy of the
notice to each counterparty thereto and (iv) as Annex IV, with respect to any Assigned Lease
relating to the foregoing Collateral, the Lessee Notice.

          This Collateral Supplement is delivered in and shall in all respects be governed by, and
construed in accordance with, the laws of the State of New York, including all matters of
construction, validity and performance.

Very truly yours,

[-]

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and agreed to as of the date first above written:

CITIBANK, N.A.,

not in its individual capacity, but

solely as the Collateral Agent

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

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ANNEX I

COLLATERAL SUPPLEMENT

AIRCRAFT OBJECTS

	 	 	 	 	 	 	 
	 	 	Airframe Manufacturer	 	 	 	Engine Manufacturer and
	Airframe MSN	 	and Model	 	Engine MSNs	 	Model
	 

	 	 
	 	 
	 	 

Aircraft Mortgage and Security Agreement

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ANNEX II

COLLATERAL SUPPLEMENT

PLEDGED EQUITY INTERESTS

PLEDGED BENEFICIAL INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Beneficial Interest
	 

	 	 
	 	 

PLEDGED MEMBERSHIP INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Membership Interest
	 

	 	 
	 	 

PLEDGED STOCK

	 	 	 	 	 
	Pledged Equity Party	 	Certificate No.	 	Percentage Stock
	 

	 	 
	 	 

PLEDGED DEBT

[-]

Aircraft Mortgage and Security Agreement

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ANNEX III

COLLATERAL SUPPLEMENT

[Insert copy of notice, if applicable]

Aircraft Mortgage and Security Agreement

A-1-5

 

ANNEX IV

COLLATERAL SUPPLEMENT

[Insert Lessee Notice]

Aircraft Mortgage and Security Agreement

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EXHIBIT A-2

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF GRANTOR SUPPLEMENT

Citibank, N.A., as Collateral Agent

388 Greenwich Street, 14th Floor

New York, NY 10013

Attn: Jenny Cheng

Fax: 212-657-2762

[Date]

     Re: Aircraft Mortgage and Security Agreement, dated as of March 30, 2011

Ladies and Gentlemen:

          Reference is made to the Aircraft Mortgage and Security Agreement, dated as of March 30, 2011
(the “Aircraft Mortgage and Security Agreement”), among PARK TOPANGA AIRCRAFT INC., a
California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC., a California corporation
(the “Borrower”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability company
incorporated under the laws of Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT
INC., a California corporation (the “CA Subsidiary Holdco”), and the ADDITIONAL GRANTORS
who from time to time become grantors under the Aircraft Mortgage and Security Agreement (together
with Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the
“Grantors”), and CITIBANK, N.A., a national banking association, as the collateral agent
(in such capacity, and together with any permitted successor or assign thereto or any permitted
replacement thereof, the “Collateral Agent”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the Aircraft Mortgage and
Security Agreement.

          The undersigned hereby agrees, as of the date first above written, to become a Grantor under
the Aircraft Mortgage and Security Agreement as if it were an original party thereto and agrees
that, except as otherwise provided or the context otherwise so requires, each reference in the
Aircraft Mortgage and Security Agreement to “Grantor” shall also mean and be a reference to the
undersigned.

          Grant of Security Interest. To secure the Secured Obligations, the undersigned Grantor hereby
assigns and pledges to the Collateral Agent for its benefit and the benefit of the other Secured
Parties and hereby grants to the Collateral Agent for its benefit and the benefit of the other
Secured Parties a first priority security interest in, all of its right, title and interest in and
to the following (collectively, the “Supplementary Collateral”):

          (a) all of such Grantor’s right, title and interest in and to (i) each Pool Aircraft,
including the Airframe and Engines with respect to such Pool Aircraft as the same is now and will
hereafter be constituted, and in the case of such Engines, whether or not any such

Aircraft Mortgage and Security Agreement

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Engine shall be installed in or attached to the Airframe or any other airframe, together with
(ii) all Parts of whatever nature, which are from time to time relating to any Airframe or Engine,
including all substitutions, renewals and replacements of and additions, improvements, accessions
and accumulations to the Airframe and Engines (other than additions, improvements, accessions and
accumulations which constitute appliances, parts, instruments, appurtenances, accessories,
furnishings or other equipment excluded from the definition of Parts), (iii) all Aircraft Documents
and (iv) any money or non-money proceeds of an Airframe or Engine arising from the total or partial
loss or destruction of such Airframe or its Engine or its total or partial confiscation,
condemnation or requisition up to the amount of hull insurance in respect of such Pool Aircraft
required to be carried hereunder;

          (b) all of such Grantor’s right, title and interest in and to all Leases to which such Grantor
is or may from time to time be party with respect to the Pool Aircraft, including any leasing
arrangements with respect to such Pool Aircraft among Grantors with respect to such Leases together
with all Related Collateral Documents (all such Leases and Related Collateral Documents, the
“Assigned Leases”), including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due under or pursuant to such Assigned Leases, (ii) all rights of
such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to
such Assigned Leases up to the amount of hull insurance in respect of such Pool Aircraft required
to be carried hereunder, (iii) claims of such Grantor for damages arising out of or for breach or
default under such Assigned Leases, (iv) all rights under any such Assigned Lease with respect to
any subleases of the Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor
to terminate such Assigned Leases and to compel performance of, and otherwise to exercise all
remedies under, any Assigned Lease, whether arising under such Assigned Leases or by statute or at
law or in equity (the “Lease Collateral”);

          (c) all of the following (the “Security Collateral”):

          (i) the Pledged Stock and the certificates representing such Pledged Stock, and all
dividends, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

          (ii) all additional shares of the capital stock of any other Pledged Equity Party from
time to time acquired by such Grantor in any manner, including the capital stock of any
other Pledged Equity Party that may be formed from time to time, and all certificates, if
any, representing such additional shares of the capital stock and all dividends, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all such additional shares; and

          (iii) the Pledged Debt and all instruments evidencing the Pledged Debt, and all
interest, cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged Debt (the
“Pledged Debt Collateral”);

          (d) all of the following (the “Membership Interest Collateral”):

Aircraft Mortgage and Security Agreement

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          (i) the Pledged Membership Interests, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Membership
Interests, any contracts and instruments pursuant to which any such Pledged Membership
Interests are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Membership Interests; and

          (ii) all of such Grantor’s right, title and interest in all additional membership
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the membership interests in any other Pledged Equity Party that may be
formed from time to time, and all certificates, if any, from time to time representing such
additional membership interests and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all such additional membership interests;

          (e) all of the following (the “Beneficial Interest Collateral”):

          (i) the Pledged Beneficial Interest, all certificates, if any, from time to time
representing all of such Grantor’s right, title and interest in the Pledged Beneficial
Interest, any contracts and instruments pursuant to which any such Pledged Beneficial
Interest are created or issued and all distributions, cash, instruments and other property
from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Pledged Beneficial Interest; and

          (ii) all of such Grantor’s right, title and interest in all additional beneficial
interests in any other Pledged Equity Party from time to time acquired by such Grantor in
any manner, including the beneficial interests in any other Pledged Equity Party that may be
formed from time to time, the trust agreements and any other contracts and instruments
pursuant to which any such Pledged Equity Party is created or issued, and all certificates,
if any, from time to time representing such additional beneficial interests and all
distributions, cash, instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all such additional
beneficial interests;

          (f) all of the following (the “Assigned Agreement Collateral”):

          (i) all of such Grantor’s right, title and interest in and to all security assignments,
cash deposit agreements and other security agreements executed in its favor in respect of
any Pool Aircraft (including any Airframe and any Engine) or in respect of or pursuant to
any Assigned Lease, in each case as such agreements may be amended or otherwise modified
from time to time (collectively, the “Assigned Agreements”); and

          (ii) all of such Grantor’s right, title and interest in and to all property of whatever
nature, in each case pledged, assigned or transferred to it or mortgaged or charged in its
favor pursuant to any Assigned Agreement;

Aircraft Mortgage and Security Agreement

A-2-3

 

          (g) all of such Grantor’s right, title and interest in and to the Acquisition Agreements (the
“Aircraft Purchase Collateral”);

          (h) all right of such Grantor in and to the Collateral Account and all funds, cash, investment
property, investments, securities, instruments or other property (including all “financial assets”
within the meaning of Section 8-102(a)(9) of the UCC) at any time or from time to time credited to
any such account (collectively, the “Account Collateral”);

          (i) all of such Grantor’s right, title and interest in and to the personal property identified
as subject to the Lien hereof in a Grantor Supplement or a Collateral Supplement executed and
delivered by such Grantor to the Collateral Agent; and

          (j) all proceeds of any and all of the foregoing Collateral (including proceeds that
constitute property of the types described in subsections (a), (b), (c), (d), (e), (f), (g), (h)
and (i) above);

provided that the Collateral shall not include any Excluded Property.

          The undersigned Grantor hereby makes each representation and warranty set forth in Section
2.03 of the Aircraft Mortgage and Security Agreement (as supplemented by the attached Annexes I
through IV) with respect to itself and its Collateral and hereby agrees to be bound as a Grantor by
all of the terms and provisions of the Aircraft Mortgage and Security Agreement. Each reference in
the Aircraft Mortgage and Security Agreement to the Assigned Agreements, the Assigned Agreement
Collateral, the Acquisition Agreements, the Aircraft Purchase Collateral, the Assigned Leases,
Security Collateral, the Membership Interest Collateral, the Beneficial Interest Collateral, the
Assigned Documents, the Assigned Agreements and the Account Collateral shall be construed to
include a reference to the corresponding Collateral hereunder.

          The undersigned hereby agrees, together with the other Grantors, jointly and severally to
indemnify the Collateral Agent and its officers, directors, employees and agents in the manner set
forth in Section 7.01 of the Aircraft Mortgage and Security Agreement.

          Attached are (i) as Annex I, a duly completed description of each of the Aircraft Objects
constituting part of the Supplementary Collateral, (ii) as Annex II, a duly completed description
of the Pledged Equity Interests constituting part of the Supplementary Collateral, (iii) as Annex
III, a list of any trade names applicable to the undersigned Grantor, (iv) as Annex IV, the Chief
Executive Office, Chief Place of Business and Registered Office and Organizational ID (if
applicable) of the undersigned Grantor, (v) as Annex V, where required with respect to any Assigned
Agreement relating to the Supplementary Collateral, a copy of the notice to each counterparty
thereto and (vi) as Annex VI, with respect to any Assigned Lease relating to the Supplementary
Collateral, the Lessee Notice.

[Signature Page Follows]

Aircraft Mortgage and Security Agreement

A-2-4

 

          This Grantor Supplement is delivered in the State of New York and shall in all respects be
governed by, and construed in accordance with, the laws of the State of New York, including all
matters of construction, validity and performance.

Very truly yours,

					
	 	

[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and agreed to as of the date first above written:

CITIBANK, N.A.,

not in its individual capacity, but solely as the

Collateral Agent

					
	 	
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

A-2-5

 

ANNEX I

GRANTOR SUPPLEMENT

AIRCRAFT OBJECTS

	 	 	 	 	 	 	 
	 	 	Airframe Manufacturer	 	 	 	Engine Manufacturer
	Airframe MSN	 	and Model	 	Engine MSNs	 	and Model
	 

	 	 
	 	 
	 	 

Aircraft Mortgage and Security Agreement

A-2-6

 

ANNEX II

GRANTOR SUPPLEMENT

PLEDGED EQUITY INTERESTS

PLEDGED BENEFICIAL INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Beneficial Interest
	 

	 	 
	 	 

PLEDGED MEMBERSHIP INTERESTS

	 	 	 	 	 
	 	 	 	 	Percentage of
	Pledged Equity Party	 	Certificate No.	 	Membership Interest
	 

	 	 
	 	 

PLEDGED STOCK

	 	 	 	 	 
	Pledged Equity Party	 	Certificate No.	 	Percentage Stock
	 

	 	 
	 	 

PLEDGED DEBT

Aircraft Mortgage and Security Agreement

A-2-7

 

ANNEX III

GRANTOR SUPPLEMENT

TRADE NAMES

Aircraft Mortgage and Security Agreement

A-2-8

 

ANNEX IV

GRANTOR SUPPLEMENT

	 	 	 
	 	 	Chief Executive Office, Chief Place of
	 	 	Business and Registered Office and Organizational ID
	Name of Grantor	 	(if applicable)
	 

	 	 

Aircraft Mortgage and Security Agreement

A-2-9

 

ANNEX V

COLLATERAL SUPPLEMENT

[Insert copy of notice, if applicable]

Aircraft Mortgage and Security Agreement

A-2-10

 

ANNEX VI

COLLATERAL SUPPLEMENT

[Insert Lessee Notice]

Aircraft Mortgage and Security Agreement

A-2-11

 

EXHIBIT B

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF CHARGE OVER SHARES OF IRISH SUBSIDIARY HOLDCO

[SEE ATTACHED]

Aircraft Mortgage and Security Agreement

B-1

 

March__ 2011

SHARE CHARGE

between

TEMESCAL AIRCRAFT INC.

as Chargor

and

CITIBANK, N.A.

as Chargee

in respect of shares of

Ballysky Aircraft Ireland Limited

A & L GOODBODY

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THIS SHARE CHARGE is made on March__ 2011

BETWEEN

	 	(1)	 	TEMESCAL AIRCRAFT INC., a company incorporated under the laws of California
(the Chargor); and
	 
	 	(2)	 	CITIBANK, N.A., a national banking association as the collateral agent under
the Security Agreement (as defined below), (the Chargee);

WHEREAS:

	A.	 	By a term loan credit agreement dated as of March__ 2011made between Temescal Aircraft Inc.
as borrower, ILFC, Topanga Park Aircraft Inc., Charmlee Aircraft Inc and Ballysky Aircraft
Ireland Limited (the Company) as obligors, the lenders identified therein as lenders,
Citibank, N.A. as administrative agent and collateral agent (the Collateral Agent), Citigroup
Global Markets Inc. and Credit Suisse Securities (USA) LLC as joint lead structuring agents
and joint lead placement agents and BNP Paribas as joint placement agent (the Credit
Agreement) the Lenders have agreed to make available a term loan facility to the Borrower.
	 
	B.	 	By an aircraft mortgage and security agreement dated as of March__ 2011 between the Chargor
and others and the additional grantors referred to therein as Grantors and the Chargee, as the
Collateral Agent, such Grantors have agreed to grant certain security to the Chargee (the
Security Agreement).
	 
	C.	 	Pursuant to the terms of the Credit Agreement, the Chargor has agreed to grant this charge
over the shares in the Company.
	 
	D.	 	The terms and conditions of this Charge are acceptable to the Chargee.

NOW THIS CHARGE WITNESSETH as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1.	 	In this Charge (including the Recitals), words and expressions defined in the Security
Agreement shall (unless otherwise defined herein or the context requires otherwise) have the
same meaning herein and the following words and expressions shall have the following meanings,
except where the context otherwise requires:
	 
	 	 	Act means the Land and Conveyancing Law Reform Act 2009;
	 
	 	 	this Charge means this share charge;
	 
	 	 	Company means Ballysky Aircraft Ireland Limited (registered number 495999), a company
incorporated in Ireland having its registered office at 30 North Wall Quay, Dublin 1,
Ireland;
	 
	 	 	Charged Property means:

	 	(1)	 	all the issued shares in the capital of the Company as described
in Schedule A and all other shares and share warrants in the capital of the
Company from time to time legally or beneficially owned by the Chargor during
the Security Period (together the Charged Shares); and
	 
	 	(2)	 	including in each case all proceeds of sale thereof and all
dividends, interest or other distributions hereafter declared, made, paid or
payable in respect of the same and all allotments, accretions, offers, rights,
benefits and advantages whatsoever at any time accruing, offered or arising in
respect of or incidental to the same and all stocks, shares, rights, money or
property accruing thereto or offered at any time by way of conversion,
redemption, bonus, preference, option, substitution, capital redemption or
otherwise in respect thereof;

2

 

	 	 	 	provided, however, that notwithstanding any of the foregoing provisions, so
long as no Event of Default shall have occurred and be continuing and the Loans have been
accelerated and for so long as such acceleration shall not have been rescinded, the Chargor
shall have the right, to the exclusion of the Chargee to (i) all distributions, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Charged Property, and once
paid by Chargor to a non-Grantor under the Security Agreement, shall be free and clear of
the Charge hereof and shall not constitute Charged Property, and if an Event of Default
shall have occurred and be continuing and the Loans have been accelerated and for so long as
such acceleration shall not have been rescinded, Chargor shall not make any such payment to
a non-Grantor without the Chargee’s consent; provided further that the
Charged Property shall not include any Excluded Property.
	 
	 	 	 	Charged Shares has the meaning assigned thereto in the definition of Charged Property;
	 
	 	 	 	Event of Default means any Event of Default as defined in the Credit Agreement;
	 
	 	 	 	Loan Document has the meaning given to it in the Credit Agreement;
	 
	 	 	 	Parties mean the parties to this Charge;
	 
	 	 	 	Receiver means a receiver (whether appointed pursuant to this Charge, pursuant to any
statute, by a court or otherwise) of the Charged Property or any part of it;
	 
	 	 	 	Secured Obligations has the meaning given to it in the Security Agreement;
	 
	 	 	 	Secured Party means any of or, in the plural form, all of the Chargee, the Lenders, the
Administrative Agent and the Syndication Agent; and
	 
	 	 	 	Security Period means the period commencing on the date of execution of this Charge and
terminating upon the date on which the Secured Obligations have been unconditionally and
irrevocably paid and discharged in full.

	1.2.	 	In this Charge:

	 	1.2.1.	 	words and phrases the definition of which is contained in or referred to section 2 of
the Companies Act, 1963 are to be construed as having the meaning attributed to them
therein;
	 
	 	1.2.2.	 	references to statutory provisions shall be construed as references to those
provisions as amended or re-enacted or as their application is modified by other
provisions from time to time and shall include references to any provisions of which
they are reenactments (whether with or without modification);
	 
	 	1.2.3.	 	references to clauses, recitals and schedules are references to clauses hereof,
recitals hereof and schedules hereto; references to sub-clauses or paragraphs are,
unless otherwise stated, references to sub-clauses of the clause or paragraphs of the
schedule in which the reference appears;
	 
	 	1.2.4.	 	references to the singular shall include the plural and vice versa and references to
the masculine shall include the feminine or neuter and vice versa;
	 
	 	1.2.5.	 	references to persons shall include natural persons, firms, partnerships, companies,
corporations, associations, organisations, governments, states, foundations, trusts,
bodies of persons whether incorporated or unincorporated (in each case whether or not
having a separate legal personality);
	 
	 	1.2.6.	 	references to assets include property, rights and assets of every description;
	 
	 	1.2.7.	 	references to any document are to be construed as references to such document as
amended, varied, assigned, novated, restated or supplemented from time to time;
	 
	 	1.2.8.	 	references to any person shall be construed so as to include that person’s
successors, assigns and transferees;
	 
	 	1.2.9.	 	any reference to a legal term for any action, remedy, method of judicial proceeding,
legal

3

 

	 	 	 	document, legal status, court, official or any legal concept or thing is, in respect
of any jurisdiction other than Ireland, shall be deemed to include a reference to
what mostly nearly approximates in that jurisdiction to the Irish legal term;
	 
	 	1.2.10.	 	the headings are inserted for convenience only and are not to affect the
construction of this Charge; and
	 
	 	1.2.11.	 	any phrase introduced by the terms “including”, “include”, “in particular” or any
similar expression is to be construed as illustrative and shall not limit the sense of
the words proceeding those terms.

	2.	 	COVENANT TO PAY AND PERFORM

	2.1.	 	The Chargor hereby covenants and undertakes with the Chargee that it shall pay and discharge
the Secured Obligations as and when they become due to be paid or discharged as and to the
extent provided in the Credit Agreement, this Charge or any other Loan Document.
	 
	2.2.	 	The Chargor shall pay interest on any delinquent sum (before and after any judgment) from the
date of demand until the date of payment calculated on a daily basis in accordance with the
provisions of the Credit Agreement.
	 
	2.3.	 	Any payment made by the Chargor under this Charge shall be made free and clear of and without
any deduction for or on account of any set-off or counterclaim.

	3.	 	SECURITY

	3.1.	 	As a continuing security for the payment and performance of the Secured Obligations, the
Chargor as legal and beneficial owner hereby charges to the Chargee, by way of a first fixed
charge, all of its right, title and interest in and to the Charged Property.
	 
	3.2.	 	The Chargor hereby agrees to deliver to the Chargee, on the date of execution of this Charge:

	 	3.2.1.	 	an undated stock transfer form (executed in blank by or on behalf of the Chargor) in
respect of all the Charged Shares;
	 
	 	3.2.2.	 	all share certificates, warrants and other documents of title representing the
Charged Shares together with a certified copy of the up to date register of members of
the Company;
	 
	 	3.2.3.	 	an undated irrevocable proxy in respect of the Charged Shares executed by the
Chargor, in the for set out in Schedule C to this Charge;
	 
	 	3.2.4.	 	an irrevocable appointment signed by the Chargor in respect of the Charged Shares, in
the form set out in Schedule D to this Charge; and
	 
	 	3.2.5.	 	executed but undated letters of resignation and release from each of the directors,
alternate directors and secretary of the Company appointed by the Chargor in the forms
set out in Schedule B to this Charge.

	 	 	The Chargee acknowledges and agrees that if at any time the Secured Obligations have been
unconditionally and irrevocably paid and discharged in full it shall, or if otherwise
required pursuant to this Charge or the Security Agreement or the Credit Agreement, the
Chargee shall deliver the documents referred to in this clause 3.2 to the Chargor or to a
new Chargee if so instructed by the Chargor and thereafter during the Security Period, such
documents shall be held by the new Chargee.
	 
	3.3.	 	The Chargor will procure that, for the duration of the Security Period, there shall be (a) no
increase or reduction in the authorised or issued share capital of the Company, (b) no
variation of the rights attaching to or conferred by the Charged Property or any part of it,
and (c) no alteration to the constitutive documents of the Company, in each case, without the
prior consent in writing of the Chargee (not to be unreasonably withheld), but the foregoing
shall not be interpreted as requiring the Chargee’s consent to further capital contribution to
the Company by the Chargor.

4

 

	3.4.	 	The Chargor will deliver, or cause to be delivered, to the Chargee immediately upon (subject
to clause 3.3) the issue of any further Charged Shares, the items listed in clauses 3.2.1 and
3.2.2 in respect of all such further Charged Shares.
	 
	3.5.	 	The Chargor will deliver or cause to be delivered, to the Chargee immediately upon (subject
to clause 3.3) the appointment of any further director, alternate director or officer of the
Company an undated, signed letter of resignation from such further director, alternate
director or officer in a form acceptable to the Chargee.
	 
	3.6.	 	The Chargor hereby covenants that, except as otherwise provided in the Loan Documents, during
the Security Period:

	 	3.6.1.	 	it will remain the legal and beneficial owner of the Charged Property;
	 
	 	3.6.2.	 	it will not create or suffer the creation or existence of any Liens (other than
Permitted Liens) on or in respect of the whole of any part of the Charged Property or
any of its interest therein;
	 
	 	3.6.3.	 	it will not sell, assign, transfer or otherwise dispose of any of its interest in the
Charged Property in any such case, without the prior consent in writing of the Chargee;
	 
	 	3.6.4.	 	it will not permit any person other than the Chargee (or such person as may be
specified for this purpose in writing by the Chargee) to be registered as holder of the
Shares or any part thereof;
	 
	 	3.6.5.	 	it will duly and promptly pay all calls, instalments or other payments which may be
or become due in respect of the Charged Shares as and when the same from time to time
become due;
	 
	 	3.6.6.	 	it will promptly give to the Chargee all material notices and other documents
received in respect of the Charged Shares;
	 
	 	3.6.7.	 	it will ensure that, except as required by law, the Charged Shares are, and at all
times remain, free from any restriction on transfer to the Chargee, its nominee(s) or
to any purchaser from the Chargee pursuant to the exercise of any rights or remedies of
the Chargee under or pursuant to this Charge;
	 
	 	3.6.8.	 	it will notify the Chargee immediately upon receipt of any notice issued under
section 16(1) of the Companies Act, 1990 in respect of all or any of the Charged Shares
or upon becoming aware that any such notice has been issued or that steps have been
taken or are about to be taken to obtain an order for the sale of all or any of the
Charged Shares under section 16(7) of the Companies Act 1990;
	 
	 	3.6.9.	 	it will not claim any set-off or counterclaim against the Chargee or any Secured
Party;
	 
	 	3.6.10.	 	following the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been
rescinded, it will not claim or prove in competition with the Chargee or any Secured
Party in the bankruptcy or liquidation of the Company or have the benefit of, or share
in, any payment from or composition with, the Company for any indebtedness of the
Company provided that if so directed by the Chargee, it will prove for the whole or any
part of its claim in the liquidation or bankruptcy of the Company on terms that the
benefit of such proof and of all money received by it in respect thereof shall be held
on trust for the Chargee and applied in or towards the discharge of the liabilities and
obligations of the Chargor to the Chargee under this Charge in such manner as the
Chargee shall deem appropriate;
	 
	 	3.6.11.	 	it will not exercise its rights of subrogation against the Company;
	 
	 	3.6.12.	 	following the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been
rescinded, it will take such action as the Chargee may, in its absolute discretion,
direct in the event that it becomes possible (whether under the terms of issue of the
Charged Shares, a reorganisation or otherwise) to convert or exchange the Charged
Shares or have them repaid or in the event that any offer to purchase is made in
respect of the Charged Shares or any proposal is made for varying or
abrogating any rights attaching to them; and

5

 

	 	3.6.13.	 	it will not permit any of the Charged Shares to be redeemed and repaid.

	3.7.	 	The Chargor shall remain liable to perform all the obligations assumed by it in relation to
the Charged Property and the Chargee shall be under no obligation of any kind whatsoever in
respect thereof or be under any liability whatsoever in the event of any failure by the
Chargor to perform its obligations in respect thereof.
	 
	3.8.	 	For the avoidance of doubt, the Chargee shall not in any circumstances incur and liability
whatsoever in respect of any calls, instalments or otherwise in connection with the Charged
Property.
	 
	3.9.	 	Upon the Chargee being satisfied that the Secured Obligations have been unconditionally and
irrevocably paid and discharged in full, or as otherwise provided in the Credit Agreement or
the other Loan Documents, and following a written request therefor from the Chargor, the
Chargee will, subject to being indemnified to their reasonable satisfaction for the costs and
expenses incurred by the Chargee in connection therewith, release the security constituted by
this Charge.
	 
	4.	 	REPRESENTATIONS AND WARRANTIES OF THE CHARGOR
	 
	4.1.	 	The Chargor hereby represents and warrants to the Chargee and the Secured Parties that:

	 	4.1.1.	 	it is not in breach of any of its obligations under this Charge;
	 
	 	4.1.2.	 	the Chargor is the sole legal and beneficial owner of all of the Charged Property
free from any Lien (other than any Permitted Lien) and any options or rights of
pre-emption;
	 
	 	4.1.3.	 	the Chargor has not sold or otherwise disposed of or agreed to sell or otherwise
dispose of or granted or agreed to grant any option in respect of the Charged Property
and, except as otherwise permitted under the Loan Documents, will not do any of the
foregoing at any time during the Security Period;
	 
	 	4.1.4.	 	it is not necessary that this Charge be filed, recorded or enrolled with any court or
other authority in Ireland or any other jurisdiction (except filing with the Irish
Companies Registration Office pursuant to Section 111 of the Companies Act 1963 and
under the Uniform Commercial Code enacted in any jurisdiction);
	 
	 	4.1.5.	 	the Charged Shares constitute all of the issued share capital of the Company;
	 
	 	4.1.6.	 	the Charged Shares have been duly authorised, validly issued and are fully paid or
credited as fully paid, no calls have been made in respect thereof and remain unpaid
and no calls can be made in respect of such Charged Shares in the future;
	 
	 	4.1.7.	 	the terms of the Charged Shares and of the constitutive documents of the Company do
not restrict or otherwise limit the Chargor’s right to transfer or charge the Charged
Shares and the directors of the Company cannot refuse to register any transfer of the
Charged Shares to the Chargee or any party nominated by the Chargee;
	 
	 	4.1.8.	 	it will not be required to make any deduction or withholding from any payment it may
make under this Charge.

	4.2.	 	The Chargor acknowledges that the Chargee has entered into this Charge in reliance on the
representations and warranties set out in Clause 4.1.
	 
	5.	 	DEALINGS WITH CHARGED PROPERTY
	 
	5.1.	 	Unless and until the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been rescinded:

	 	5.1.1.	 	subject always to Clause 3.3, the Chargor shall continue to be entitled to exercise
all voting and consensual powers pertaining to the Charged Property or any part thereof
for all purposes not inconsistent with the terms of this Charge; and

6

 

	 	5.1.2.	 	the Chargor shall be entitled to receive and retain any cash dividends, but not other
moneys or assets accruing on or in respect of the Charged Property or any part thereof

	 	 	provided that the Chargor shall not exercise such voting rights in any manner which would,
or would be reasonably likely to, violate the Credit Agreement or the Security Agreement.
	 
	5.2.	 	The Chargor shall pay when due all calls, installments or other payments and shall discharge
all other obligations, which may become due in respect of any of the Charged Property and
following the occurrence of an Event of Default which is continuing and the acceleration of
the Loans and for so long as such acceleration shall not have been rescinded, the Chargee may
if it thinks fit (but shall not be obliged to) make such payments or discharge such
obligations on behalf of the Chargor. Any sums so paid by the Chargee in respect thereof
shall be repayable on demand by the Chargor with interest thereon calculated in accordance
with clause 2.2 and pending such repayment shall constitute part of the Secured Obligations.
	 
	5.3.	 	The Chargee shall not have any duty to ensure that any dividends, interest or other moneys
and assets receivable in respect of the Charged Property are duly and punctually paid,
received or collected as and when the same become due and payable or to ensure that the
correct amounts (if any) are paid or received on or in respect of the Charged Property or to
ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other
property paid, distributed, accruing or offered at any time by way of redemption, bonus,
rights, preference, or otherwise on or in respect of, any of the Charged Property.
	 
	5.4.	 	The Chargor hereby authorises the Chargee to arrange at any time and from time to time (after
the occurrence of an Event of Default which is continuing and the acceleration of the Loans
and for so long as such acceleration shall not have been rescinded) for the Charged Property
or any part thereof to be registered in the name of the Chargee (or its nominee) thereupon to
be held, as so registered, subject to the terms of this Charge.
	 
	5.5.	 	The Chargor may not take any action in relation to the Charged Property or this Charge under
the provisions of Section 94 of the Act (Court order for sale).
	 
	6.	 	PRESERVATION OF SECURITY
	 
	6.1.	 	It is hereby agreed and declared that:

	 	6.1.1.	 	the security created by this Charge shall be held by the Chargee as a continuing
security for the payment and discharge of the Secured Obligations and the security so
created shall not be satisfied by any intermediate payment or satisfaction of any part
of the Secured Obligations;
	 
	 	6.1.2.	 	the security created by this Charge is in addition to and independent of and shall
not prejudice or merge with any other security (or any right of set-off) which the
Chargee may hold at any time for the Secured Obligations or any of them;
	 
	 	6.1.3.	 	the Chargee shall not be bound to seek to recover any amounts due from the Borrowers
or any other person, exercise any rights against a Borrower or any other person or
enforce any other security before enforcing the security created by this Charge;
	 
	 	6.1.4.	 	no delay or omission on the part of the Chargee in exercising any right, power or
remedy under this Charge shall impair such right, power or remedy or be construed as a
waiver thereof nor shall any single or partial exercise of any such right, power or
remedy preclude any further exercise thereof or the exercise of any other right, power
or remedy. The rights, powers and remedies herein provided are cumulative and not
exclusive of any rights, powers and remedies provided by law and may be exercised from
time to time and as often as the Chargee may deem expedient; and
	 
	 	6.1.5.	 	any waiver by the Chargee of any terms of this Charge shall only be effective if
given in writing and then only against the Chargee and for the purpose and upon the
terms for which it is given.

	6.2.	 	Where any discharge is made in whole or in part or any arrangement is made on the faith of
any payment, security or other disposition which is avoided or must be repaid on bankruptcy,
liquidation, by

7

 

	 	 	virtue of Section 1001 of the Taxes Consolidation Act 1997 or otherwise without limitation,
this Charge shall continue in force as if there had been no such discharge or arrangement.
The Chargee shall be entitled to concede or compromise in good faith any claim that any such
payment, security or other disposition is liable to avoidance or repayment.
	 
	6.3.	 	Until the Secured Obligations have been unconditionally and irrevocably satisfied and
discharged in full to the satisfaction of the Chargee or as otherwise provided in the Credit
Agreement or the Security Agreement, the Chargee may at any time keep in a separate account or
accounts (without liability to pay interest thereon) in the name of the Chargee for as long as
the Chargee may think fit, any moneys received recovered or realised under this Charge or
under any other guarantee, security or agreement relating in whole or in part to the Secured
Obligations without being under any intermediate obligation to apply the same or any part
thereof in or towards the discharge of such amount except as otherwise provided in the Loan
Documents.
	 
	7.	 	ENFORCEMENT OF SECURITY
	 
	7.1.	 	The security hereby constituted shall become enforceable upon the occurrence of an Event of
Default which is continuing and the acceleration of the Loans and for so long as such
acceleration shall not have been rescinded.
	 
	7.2.	 	At any time after the occurrence of an Event of Default which is continuing and the
acceleration of the Loans and for so long as such acceleration shall not have been rescinded,
the rights conferred on the Chargee under this Charge or by law shall be immediately
exercisable upon and at any time thereafter and, without prejudice to the generality of the
foregoing, the Chargee or any Receiver appointed hereunder without further notice to the
Chargor:

	 	7.2.1.	 	may solely and exclusively exercise all voting and/or consensual powers pertaining to
the Charged Property or any part thereof and may exercise such powers in a such manner
as the Chargee may think fit; and/or
	 
	 	7.2.2.	 	may complete any share transfer forms then held by the Chargee pursuant to this
Charge in the name of the Chargee (or its nominee) and the Chargor shall do whatever
the Chargee requires in order to procure the prompt registration of such transfer and
the prompt issue of a new certificate or certificates for the relevant Charged Property
in the name of the Chargee; and/or
	 
	 	7.2.3.	 	date any or all, as the Chargee in its absolute discretion may deem appropriate, of
the letters of resignation of the Directors and Secretary of the Company provided to
the Chargee pursuant to clause 3.2.5, the proxy provided to the Chargee pursuant to
clause 3.2.3 and the appointment provided to the Chargee pursuant to clause 3.2.4 and
sign, seal, execute, deliver, acknowledge, file and register all such documents,
instruments, agreements, certificates and any other document (including, but not
limited to, such letters of resignation) and do any and all such other acts or things
as the Chargee may in its absolute discretion deem necessary or desirable to remove any
or all of the Directors and/or Secretary from the office of director or, as the case
may be, secretary of the Company.
	 
	 	7.2.4.	 	may receive and retain all dividends, interest or other moneys or assets accruing on
or in respect of the Charged Property or any part thereof, such dividends, interest or
other moneys or assets to be held by the Chargee, as additional security charged under
and subject to the terms of this Charge and any such dividends, interest and other
moneys or assets received by the Chargor after such time shall be held in trust by the
Chargor for the Chargee and paid or transferred to the Chargee on demand; and/or
	 
	 	7.2.5.	 	may sell, transfer, grant options over or otherwise dispose of the Charged Property
or any part thereof at such place and in such manner and at such price or prices as the
Chargee may deem fit, and thereupon the Chargee shall have the right to deliver, assign
and transfer in accordance therewith the Charged Property so sold, transferred, granted
options over or otherwise disposed of.

	7.3.	 	At any time after the security constituted by this Charge has become enforceable:

	 	7.3.1.	 	the statutory power of sale conferred by section 100 (Power of sale) of the Act free
from restrictions contained in section 100(1)(a), (b), (c), (2), (3) and (4) and
without the requirement

8

 

	 	 	 	to serve notice (as provided for in section 100(1));
and

	 	7.3.2.	 	the incidental powers of sale conferred by section 102 (Incidental powers)

	 	 	will immediately arise and be exercisable by the Chargee and/or any Receiver (as
appropriate).
	 
	7.4.	 	Upon any sale of the Charged Property or any part thereof by the Chargee, the purchaser shall
not be bound to see or enquire whether the Chargee’s power of sale has become exercisable in
the manner provided in this Charge and for the purposes and benefit of such purchaser the sale
shall be deemed to be within the power of the Chargee, and the receipt of the Chargee for the
purchase money shall effectively discharge the purchaser who shall not be concerned with the
manner of application of the proceeds of sale or be in any way answerable therefor.
	 
	7.5.	 	The Chargee shall not be obliged to make any enquiry as to the nature or sufficiency of any
payment received by it under this Charge or to make any claim or to take any action to collect
any moneys assigned by this Charge or to enforce any rights or benefits assigned to it by this
Charge or to which the it may at any time be entitled hereunder.
	 
	7.6.	 	Neither the Chargee nor any of its respective agents, managers, officers, employees,
delegates and advisers shall be liable for any claim, demand, liability, loss, damage, cost or
expense incurred or arising in connection with the exercise or purported exercise of any
rights, powers and discretions hereunder in the absence of gross negligence, dishonesty or
willful default.
	 
	7.7.	 	The provisions of section 97 of the Act (Taking possession), section 99(1) (Mortgagee in
possession) and section 101 (Applications under sections 97 and 100) shall not apply to this
Charge.
	 
	7.8.	 	Receivers

	 	7.8.1.	 	At any time after the occurrence of an Event of Default and for so long as it is
continuing and the acceleration of the Loans and for so long as such acceleration shall
not have been rescinded, the Chargee may by a written instrument and without notice to
any party appoint a Receiver of the Charged Property or any part of it. A Receiver so
appointed shall be the agent of the Chargor and the Chargor shall be solely responsible
for his acts, defaults and remuneration but the Chargee will have power from time to
time to fix the remuneration of any Receiver and direct payment thereof out of the
proceeds of the Charged Property. The restrictions contained in section 108(1) and the
provisions of sub-sections 108(4) and (7) (Appointment of a Receiver) of the Act will
not apply to the appointment of a Receiver under this clause 7.8.1;
	 
	 	7.8.2.	 	The Chargee may by instrument in writing delegate to any such Receiver all or any of
the rights, powers and discretions vested in it by this Charge pursuant to section
108(3) of the Act;
	 
	 	7.8.3.	 	The Chargee may by instrument in writing delegate to any such Receiver all or any of
the rights, powers and discretions vested in it by this Charge;
	 
	 	7.8.4.	 	In addition to the powers conferred on the Chargee by this Charge, the Receiver
appointed pursuant to Clause 7.8.1 shall have in relation to the Charged Property all
the powers conferred by the Act (as extended by this Charge) on a Receiver appointed
under that Act;
	 
	 	7.8.5.	 	The Chargee shall not be responsible for any negligence on the part of a Receiver,
provided that the Chargee shall have used bona fides in the appointment of such
Receiver;
	 
	 	7.8.6.	 	Neither the Chargee nor any Receiver appointed under this Charge shall be liable to
account as mortgagee in possession in respect of any of the Charged Property or be
liable for any loss upon realisation or for any neglect or default of any nature
whatsoever (except to the extent that the same results from their or his gross
negligence or willful default in connection with any of the Charged Property) for which
a mortgagee in possession might as such be liable and all costs, charges and expenses
incurred by the Chargee or any Receiver appointed hereunder (including the costs of any
proceedings to enforce the security) together with all Value Added Tax thereon shall be
paid by the Chargor on a solicitor and own client basis and shall form part of the
Secured Obligations and be charged on and paid out of the Charged Property; and
	 
	 	7.8.7.	 	All amounts realized by the Chargee in connection with the exercise of rights and
remedies

9

 

	 	 	 	hereunder shall be applied by the Chargee as provided in section 3.02 (Priority of
Payments) of the Security Agreement. To the extent relevant, the subordination
arrangements set forth in Sections 2, 5 and 6 of the Intercreditor Agreement shall
apply to this Charge.

	8.	 	FURTHER ASSURANCES
	 
	8.1.	 	The Chargor shall from time to time at its expense, but only to the extent required by the
Express Perfection Requirements, execute and deliver any and all such further instruments and
documents and take all such actions as the Chargee in its reasonable discretion may require
for:

	 	8.1.1.	 	perfecting, protecting or ensuring the priority of the security hereby created (or
intended to be created);
	 
	 	8.1.2.	 	preserving or protecting any of the rights of the Chargee under this Charge;
	 
	 	8.1.3.	 	ensuring that the security constituted by this Charge and the covenants and
obligations of the Chargor under this Charge shall enure to the benefit of any assignee
of the Chargee;
	 
	 	8.1.4.	 	facilitating the appropriation or realisation of the Charged Property or any part
thereof; or
	 
	 	8.1.5.	 	the exercise of any power, authority or discretion vested in the Chargee under this
Charge, in any such case, forthwith upon demand by the Chargee and at the expense of the Chargor.

	9.	 	INDEMNITIES
	 
	9.1.	 	The Chargor will indemnify and save harmless the Chargee and each of its agents or attorneys
appointed under or pursuant to this Charge from and against any and all expenses, claims,
liabilities, losses, taxes, costs, duties, fees and charges suffered, incurred or made by the
Chargee or such agent or attorney:

	 	9.1.1.	 	in the exercise or purported exercise of any rights, powers or discretions vested in
them pursuant to this Charge;
	 
	 	9.1.2.	 	in the preservation or enforcement of the Chargee’s rights under this Charge or the
priority thereof; or
	 
	 	9.1.3.	 	on the release of any part of the Charged Property from the security created by this
Charge, as provided in the Security Agreement and subject to the terms thereof.

	9.2	 	If, under any applicable law or regulation, and whether pursuant to a judgment being made or
registered against the Chargor or the bankruptcy or liquidation of the Chargor or for any
other reason any payment under or in connection with this Charge is made or fails to be
satisfied in a currency (the Payment Currency) other than the currency in which such payment
is due under or in connection with this Charge (the Contractual Currency), then to the extent
that the amount of such payment actually received by the Chargee when converted into the
Contractual Currency at the rate of exchange, falls short of the amount due under or in
connection with this Charge, the Chargor, as a separate and independent obligation, shall
indemnify and hold harmless the Chargee against the amount of such shortfall. For the
purposes of this clause 9.2, rate of exchange means the rate at which the Chargee is able on
or about the date of such payment to purchase the Contractual Currency with the Payment
Currency and shall take into account any premium and other costs of exchange with respect
thereto.
	 
	10.	 	POWER OF ATTORNEY
	 
	10.1.	 	The Chargor by way of security hereby irrevocably appoints and constitutes the Chargee and
any Receiver jointly and also severally the attorney or attorneys of the Chargor on the
Chargor’s behalf and in the name of the Chargor or otherwise and to do all acts and to
execute, seal or otherwise affect any deed, assurance, agreement, instrument, document or act
which the Chargor could itself do in relation to the Charged Property or which may be required
or which may be deemed proper for any of the

10

 

	 	 	matters provided for in this Charge.
	 
	10.2.	 	The power hereby conferred shall be a general power of attorney and the Chargor hereby
ratifies and confirms and agrees to ratify and confirm any instrument, act or thing which any
such attorney may execute or do. In relation to the power referred to herein, the exercise by
the Chargee of such power shall be conclusive evidence of its right to exercise the same.
	 
	10.3.	 	This power shall not become exercisable unless and until an Event of Default has occurred
and is continuing and the Loans have been accelerated and for so long as such acceleration
shall not have been rescinded.
	 
	11.	 	EXPENSES
	 
	11.1.	 	As and to the extent provided in the Credit Agreement and the Security Agreement, the
Chargor shall pay to the Chargee within 10 Business Days of demand all costs, fees and
expenses (including, but not limited to, legal fees and expenses) and taxes thereon incurred
by the Chargee (or any Secured Party) or for which the Chargee may become liable in connection
with:

	 	11.1.1.	 	the negotiation, preparation and execution of this Charge;
	 
	 	11.1.2.	 	the preserving or enforcing of, or attempting to preserve or enforce, any of its
rights under this Charge or the priority hereof;
	 
	 	11.1.3.	 	any variation of, or amendment or supplement to, any of the terms of this Charge;
and /or
	 
	 	11.1.4.	 	any consent or waiver required from the Chargee in relation to this Charge,

	 	 	and in the case referred to in clauses 11.1.3 and 11.1.4 regardless of whether the same is
actually implemented, completed or granted, as the case may be.
	 
	11.2.	 	The Chargor shall pay promptly all stamp, documentary, registration and other like duties
and taxes to which this Charge may be subject or give rise and shall indemnify the Chargee on
demand against any and all liabilities with respect to or resulting from any delay or omission
on the part of the Chargor to pay any such duties or taxes.
	 
	11.3.	 	The provisions of section 109 (Application of money received) of the Act shall not apply to
this Charge.
	 
	12.	 	ASSIGNMENTS
	 
	12.1.	 	This Charge shall be binding upon and shall enure to the benefit of the Chargor and the
Chargee and each of their respective successors and (subject as hereinafter provided) assigns
and references in this Charge to any of them shall be construed accordingly.
	 
	12.2.	 	The Chargor may not assign or transfer all or any part of its rights and/or obligations
under this Charge except as provided under the Credit Agreement or the Security Agreement.
	 
	12.3.	 	The Chargee may assign or transfer all or any part of its rights or obligations under this
Charge as provided in the Security Agreement. The Chargee will be entitled to disclose any
information concerning the Chargor to any proposed assignee or transferee. The Chargee shall
notify the Chargor promptly following any such assignment or transfer.
	 
	12.4.	 	In the event of assignment or transfer by the Chargee as permitted by clause 12.3, the
Chargor shall at the request of the Chargee join in such assignment or transfer so as to cause
the full benefit of this Charge to be passed to the relevant assignee or transferee.
	 
	13.	 	MISCELLANEOUS
	 
	13.1.	 	The Chargee, at any time and from time to time, may delegate by power of attorney or in any
other manner to any person or persons all or any of the powers, authorities and discretions
which are for the time being exercisable by the Chargee under this Charge in relation to the
Charged Property or any part thereof. Any such delegation may be made upon such terms and be
subject to the regulations as

11

 

	 	 	the Chargee may think fit. The Chargee shall not be in any way liable or responsible to the
Chargor for any loss or damage arising from any act, default, omission or misconduct on the
part of any such delegate provided that the Chargee has acted reasonably in selecting such
delegate.
	 
	13.2.	 	If any of the clauses, conditions, covenants or restrictions (the Provision) of this Charge
or any deed or document emanating from it shall be found to be void but would be valid if some
part thereof were deleted or modified, then the Provision shall apply with such deletion or
modification as may be necessary to make it valid and effective.
	 
	13.3.	 	This Charge (together with any documents referred to herein) constitutes the whole agreement
between the Parties relating to its subject matter and no variations hereof shall be effective
unless made in writing and signed by each of the Parties.
	 
	13.4.	 	This Charge may be executed in counterparts each of which when executed and delivered shall
constitute an original but all such counterparts together shall constitute one and the same
instrument.
	 
	13.5.	 	A certificate of the Chargee as to the amount of any Secured Obligation owed to it (whether
for itself or in a representative capacity) shall, in the absence of manifest error, be
conclusive evidence of the existence and amount of such Secured Obligation.
	 
	13.6.	 	If the Chargee causes or requires Charged Property to be registered in the name of a nominee
for the Chargee, any reference in this Charge to the Chargee shall, if the context so permits
or requires, be construed as a reference to each of the Chargee and such nominee.
	 
	13.7.	 	The rights and remedies of the Chargee under this Charge are cumulative and without
prejudice and in addition to any rights or remedies which the Chargee may have at law or in
equity. No exercise by the Chargee of any right or remedy under this Charge or at law or in
equity shall (save to the extent, if any, provided expressly in this Charge, or at law or in
equity) operate so as to hinder or prevent the exercise by it of any other right or remedy.
Each and every right and remedy may be exercised from time to time as often and in such order
as may be deemed expedient by the Chargee.
	 
	14.	 	LIMIT OF LIABILITY
	 
	 	 	The provisions of section 8.13 (Limited Recourse) of the Security Agreement shall apply
mutatis mutandis to this Charge as if written out in full herein.
	 
	15.	 	LAW AND JURISDICTION
	 
	15.1.	 	This Charge, and any non-contractual obligations arising out of or in connection with this
Charge, shall be governed and construed in accordance with Irish law.
	 
	15.2.	 	The Chargor irrevocably agrees for the benefit of the Chargee that the courts of Ireland
shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle
any disputes, whether relating to a contractual or non-contractual obligation, which may arise
out of or in connection with this Charge and, for such purposes, irrevocably submits to the
jurisdiction of such courts.
	 
	15.3.	 	The Chargor irrevocably waives any objection which it might now or hereafter have to the
courts referred to in Clause 15.2 being nominated as the forum to hear and determine any suit,
action or proceeding, and to settle any disputes, which may arise out of or in connection with
this Charge and agrees not to claim that any such court is not a convenient or appropriate
forum in each case whether on the grounds of venue or forum non convenient or any similar
grounds or otherwise.
	 
	15.4.	 	The submission to the jurisdiction of the courts referred to in Clause 15.2 shall not (and
shall not be construed so as to) limit the right of the Chargee to take proceedings against
the Chargor in any other court of competent jurisdiction nor shall the taking of proceedings
in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction,
whether concurrently or not.
	 
	15.5.	 	To the extent that the Chargor, or any of the property of the Chargor is or becomes entitled
at any time to any immunity on the grounds of sovereignty or otherwise from any legal action,
suit or proceeding, from set-off or counterclaim, from the jurisdiction of any competent
court, from service of process, from attachment prior to judgment, from attachment in aid of
execution, or from execution prior to judgment,

12

 

	 	 	or other legal process in any jurisdiction, the Chargor for itself, and its property does
hereby irrevocably and unconditionally waive, and agrees not to plead or claim, any such
immunity with respect to its or his, as the case may be, obligations, liabilities or any
other matter under or arising out of or in connection with this Charge or the subject matter
hereof or thereof.
	 
	16.	 	SERVICE OF PROCESS AGENT
	 
	 	 	The Chargor hereby irrevocably appoints ILFC Ireland Limited of 30 North Wall Quay, Dublin
1 as its Agent with full authority to receive, accept and acknowledge, for itself and on its
behalf, service of all process issued out of or relating to any proceedings referred to in
clause 15 in the Courts of Ireland.
	 
	17.	 	CONFLICTS
	 
	 	 	In the event of a conflict between the provisions of this Charge on the one hand and the
Credit Agreement and the Security Agreement on the other hand, the provisions of the Credit
Agreement or Security Agreement shall control.

13

 

Schedule A

	 	 	 	 	 
	 	 	Number and	 	 
	Company	 	Description of Shares	 	Registered Holder
	Ballysky Aircraft Ireland Limited

	 	10 Ordinary Shares
of US$1.00 each
	 	Temescal Aircraft Inc.

14

 

SCHEDULE B

Part I

			
	To:	 	Citibank, N.A.

(the Chargee)

Date: March__ 2011 

(Date of Charge)          

Dear Sirs

Ballysky Aircraft Ireland Limited (the Company)

I hereby unconditionally and irrevocably authorise you to date the resignation letter in respect of
the Company deposited by me with you pursuant to the share charge dated March__ 2011 (the Charge)
between Temescal Aircraft Inc. and yourselves, as and when you become entitled to date and complete
the same pursuant to the terms of the Charge.

Yours faithfully,

[name]

[Director] / [Secretary]

15

 

SCHEDULE B

PART II

Date________________

The Board of Directors

Ballysky Aircraft Ireland Limited (the Company)

Dear Sirs,

Resignation of Directors/Secretary

[I]/[We] hereby tender [my]/[our] resignation as [Director]/[Secretary] of the Company with effect
from the date hereof .

[I]/[We] hereby confirm that we have no rights to compensation or claims against the Company for
loss of office or arrears of pay [(or, in the case of secretary, fees)].

This letter shall be governed by and construed in accordance with Irish law.

Yours faithfully,

	 	 	 

	Signed and Delivered
	 	 
	by [insert name of director/secretary] 

in the presence of:

	 	 

	 	 	 	 	 

	Witness Signature:
	 	 	 	 
	 

	 	 

	 	 
	Witness Name:
	 	 	 	 
	 

	 	 

	 	 
	Witness Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 

	 	 

	 	 
	 
	 

	 	 

	 	 

16

 

	 	 	 
	SCHEDULE C

	 	 	 
	
“Irrevocable Proxy”

We, Temescal Aircraft Inc., hereby irrevocably appoint Citibank, N.A., (the Chargee) as our proxy
to vote at meetings of the shareholders of Ballysky Aircraft Ireland Limited (the Company) in
respect of any existing or further shares in the Company which may have been or may from time to
time be issued to us and/or registered in our name. This proxy is irrevocable by reason of being
coupled with the interest of Citibank, N.A., as Chargee of the aforesaid shares.

 

Temescal Aircraft Inc.

Dated:

17

 

SCHEDULE D

“Irrevocable Appointment”

We, Temescal Aircraft Inc., hereby irrevocably appoint Citibank, N.A., (as Chargee) as our duly
authorised representative to sign resolutions in writing of Ballysky Aircraft Ireland Limited (the
Company) in respect of any existing or further shares in the Company which may have been or may
from time to time be issued to us and/or registered in our name.

 

Temescal Aircraft Inc.

Dated:

18

 

IN WITNESS whereof the parties hereto have caused this Charge to be duly executed on the date first
written.

	 	 	 	 	 

	SIGNED by

TEMESCAL AIRCRAFT INC.

in the presence of:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 	 	 

	Witness Signature:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Witness Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Witness Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 

	SIGNED by

CITIBANK, N.A.,

in the presence of:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 

	Witness Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Witness Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

19

 

EXHIBIT C

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF ACCOUNT CONTROL AGREEMENT

March 30, 2011

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

Whereas, Temescal Aircraft Inc. (“Pledgor”) has granted to Citibank, N.A., as Collateral Agent
(“Pledgee”), for the benefit of the Secured Parties, a security interest in Account number 798628
(the “Collateral Account”), held by Citibank, N.A. (the “Securities Intermediary”) together with
all financial funds, investments, instruments, assets, investment property, securities, cash and
other property now or hereafter held therein, and the proceeds thereof, including without
limitation dividends payable in cash or stock and shares or other proceeds of conversions or splits
of any securities in the Collateral Account (collectively, the “Collateral”). Pledgor, Pledgee and
the Securities Intermediary agree that the Collateral Account is a “securities account” within the
meaning of Article 8 of the Uniform Commercial Code of the State of New York (the “UCC”) and that
all Collateral held in the Collateral Account will be treated as a “financial asset” within the
meaning of Section 8-102(a)(9) of the UCC.

Whereas, the grant of security interest described above is pursuant to that certain Aircraft
Mortgage and Security Agreement dated as of the date hereof among Park Topanga Aircraft Inc., the
Pledgor, Charmlee Aircraft Inc., Ballysky Aircraft Ireland Limited, the additional grantors
referred to therein, and the Pledgee (the “Security Agreement”).

Whereas, the Pledgor and Pledgee, inter alia, are party to the Term Loan Credit Agreement dated as
of the date hereof (the “Credit Agreement”).

Terms used but not defined herein shall have the meaning set forth in the Security Agreement and,
if not defined therein, such terms shall have the meaning set forth in the Credit Agreement.

In connection therewith, the parties hereto agree (which agreement by the Pledgor will be construed
as instructions to the Securities Intermediary):

	1.	 	The Securities Intermediary is instructed to register the pledge on its books. Securities
Intermediary shall hold all certificated securities that comprise all or part of the
Collateral with proper endorsements to the Securities Intermediary or in blank, or will
deliver possession of such certificated securities to the Pledgee. The Securities
Intermediary acknowledges the security interest granted by the Pledgor in favor of the Pledgee
in the Collateral.
	 
	2.	 	The Securities Intermediary represents, warrants and agrees that the Collateral Account (i)
has been established and is and will be maintained with the Securities Intermediary on its
books and records and (ii) is and will be a “securities account” (as defined in Section
8-501(a) of the UCC) in respect of which the (A) Securities Intermediary is a “securities
intermediary” (as defined in Section 8-102(a)(14) of the UCC), (B) the Pledgor is the
“entitlement holder” (as defined in

Aircraft Mortgage and Security Agreement

C-1

 

	 	 	Section 8-102(a)(7) of the UCC) of the Collateral Account subject to the “control” (as
defined in Section 8-106 of the UCC) of the Pledgee, (C) the “securities intermediary’s
jurisdiction” (as defined in Section 8-110(e) of the UCC) of the Securities Intermediary in
respect of the Collateral Account is New York and (D) all financial assets carried in the
Collateral Account will have been duly credited thereto in compliance with Section 8-501 of
the UCC.
	 
	3.	 	The Securities Intermediary is instructed to deliver to the Pledgee copies of monthly
statements on the Collateral Account.
	 
	4.	 	The Collateral Account will be styled: “#798628 Citi f/b/o Citibank, N.A. as Collateral
Agent and Securities Intermediary f/b/o Temescal Aircraft, Inc. under the Aircraft Mortgage
and Security Account Control Agreement.”
	 
	5.	 	All dividends, interest, gains and other profits with respect to the Collateral Account will
be reported in the name and tax identification number of the Pledgor.
	 
	6.	 	(a) The Securities Intermediary may not, without the prior written consent of Pledgee,
deliver, release or otherwise dispose of the Collateral or any interest therein unless the
proceeds thereof are held or reinvested in the Collateral Account as part of the Collateral or
applied by Securities Intermediary to the satisfaction of an Unsubordinated Obligation (as
defined below) owed to it. Except for such limitation and unless and until the Securities
Intermediary receives and has a reasonable period of time to act upon written notice from the
Pledgee which states that Pledgee is exercising exclusive control over the Collateral Account
(a “Notice of Exclusive Control”), the Securities Intermediary may comply with any investment
orders or instructions from Pledgor concerning the Collateral Account, or as set forth in
Section 6(b) below. A Notice of Exclusive Control (Exhibit A) may be delivered by the Pledgee
at any time upon the occurrence and continuance of an Event of Default and the acceleration of
the Loans and such acceleration has not been rescinded, and shall designate the account,
person or other location to which the financial assets in the Collateral Account, and cash
dividends, interest, income, earnings and other distributions received with respect thereto,
shall thereafter be delivered. As between Pledgor and Pledgee, Pledgee agrees not to deliver
a Notice of Exclusive Control until the occurrence of an Event of Default (as defined in the
Security Agreement) that is continuing and the acceleration of the Loans and such acceleration
has not been rescinded. For the avoidance of doubt, Securities Intermediary shall have no
responsibility for monitoring or determining whether an Event of Default has occurred or is
continuing.
	 
	 	 	(b) In accordance with the Loan Agreement, upon, as part of, or in the absence after the
relevant period of an Interim Cure, the Pledgee shall issue an “entitlement order” to the
Securities Intermediary to distribute from the Collateral Account to the Pledgor an amount
equal to the Interim Cash deposited in connection with the related LTV Cure.
	 
	 	 	(c) Upon deposit of any insurance proceeds in the Collateral Account, the Pledgee shall
instruct the Securities Intermediary to distribute from the Collateral Account the amount of
such insurance proceeds in accordance with the instructions of the Collateral Agent (who
shall direct that such amounts be distributed as set forth in Schedule V of the Security
Agreement).
	 
	7.	 	The Pledgor authorizes the Securities Intermediary, and the Securities Intermediary agrees,
to comply with any order or instruction from Pledgee concerning the Collateral Account,
including an order or instruction directing sale, transfer (to the extent that the Collateral
is transferable), release or redemption of all or part of the Collateral and the remittance of
the proceeds thereof, if

Aircraft Mortgage and Security Agreement

C-2

 

	 	 	any, to Pledgee or as otherwise instructed by the Pledgee, without further consent by
the Pledgor. Securities Intermediary shall have no responsibility or liability to Pledgor
for complying with any order or instruction, whether oral or written, concerning the
Collateral Account, the Collateral, any interest therein, or the proceeds thereof originated
by Pledgee and shall have no responsibility to investigate the appropriateness of any such
order or instruction, even if Pledgor notifies Securities Intermediary that Pledgee is not
legally entitled to originate any such order or instruction. Securities Intermediary shall
have no responsibility or liability to Pledgee for complying with any order or instruction,
whether oral or written, concerning the Collateral Account, the Collateral, any interest
therein, or the proceeds thereof originated by Pledgor except to the extent such compliance
would cause Securities Intermediary to violate (i) paragraph 6 hereof or (ii) written orders
or instructions previously received from Pledgee, including without limitation, a Notice of
Exclusive Control, but only to the extent Securities Intermediary has had reasonable
opportunity to act thereon. Securities Intermediary shall be able to rely upon any notice,
order or instruction that it reasonably believes to be genuine. Securities Intermediary
shall have no responsibility or liability to Pledgee with respect to the value of the
Collateral Account or any of the Collateral. This Agreement does not create any obligation
or duty on the part of Securities Intermediary other than those expressly set forth herein.
	 
	8.	 	The Pledgor agrees to indemnify and hold the Securities Intermediary, its directors,
officers, employees, and agents harmless from and against any and all claims, causes of
action, liabilities, losses, lawsuits, demands, damages, costs and expenses, including without
limitation court costs and reasonable attorneys’ fees and expenses, that may arise out of or
in connection with this Agreement or any action taken or not taken pursuant hereto, except to
the extent caused by Securities Intermediary’s gross negligence or willful misconduct. The
obligations of the Pledgor set forth in this paragraph 8 shall survive the termination of this
Agreement.
	 
	9.	 	The Securities Intermediary is instructed that the Collateral Account is to remain a “cash
account” within the meaning of Regulation T issued by the Board of Governors of the Federal
Reserve System. The Securities Intermediary represents that it has not received notice
regarding any lien, encumbrance or other claim to the Collateral or the Collateral Account
from any other person and has not entered into an agreement with any third party to act on
such third party’s instructions without further consent of the Pledgor. The Securities
Intermediary further agrees not to enter into any such agreement with any third party.
	 
	10.	 	The Securities Intermediary subordinates to the lien and security interest of the Pledgee any
right of setoff, encumbrance, security interest, lien or other claim that it may have against
the Collateral, except for any lien, claim, encumbrance or right of set off against the
Collateral Account for (i) customary commissions and fees arising from permitted trading
activity within the Collateral Account, and (ii) payment owed to Securities Intermediary for
open trade commitments for the purchase and/or sale of financial assets in and for the
Collateral Account (the “Unsubordinated Obligations”).
	 
	11.	 	To the extent a conflict exists between the terms of this Agreement and any account agreement
between the Pledgor and the Securities Intermediary, the terms of this Agreement will control,
provided that this Agreement shall not alter or affect any mandatory arbitration
provision currently in effect between Securities Intermediary and Pledgor.
	 
	12.	 	The terms of this Agreement may not be modified except by a writing signed by all parties
hereto.

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	13.	 	Securities Intermediary reserves the right, unilaterally, to terminate this Agreement,
such termination to be effective thirty (30) days after written notice thereof is given to
Pledgor and Pledgee. At the end of such thirty (30) day period, Securities Intermediary will
deliver all assets held in the Collateral Account to Pledgee unless Pledgee and Pledgor
deliver joint instructions to Securities Intermediary during such thirty (30) day period to
deliver or transfer the assets held in the Collateral Account to another party or securities
intermediary. In the event that it is not possible or practicable, in the judgment of the
Securities Intermediary, to transfer the Collateral or deliver the Collateral to any other
party, the Securities Intermediary will sell such assets and deliver the proceeds according to
the instructions provided by the Pledgee or the joint instructions given by the Pledgee and
Pledgor. Nothing set forth in this provision shall be deemed to limit the right of Pledgee to
issue orders or instructions to the Securities Intermediary pursuant to paragraph 6 hereof.
Pledgee may terminate this Agreement by giving notice to Securities Intermediary and Pledgor.
Termination shall not affect any of the rights or liabilities of the parties hereto incurred
before the date of termination.
	 
	14.	 	This Agreement and the Loan Documents set forth the entire agreement of the parties with
respect to the subject matter hereof, and, subject to paragraph 10 above, supersedes any prior
agreement and contemporaneous oral agreements of the parties concerning its subject matter.
	 
	15.	 	Except as otherwise expressly provided herein, any notice, order, instruction, request or
other communication required or permitted to be given under this Agreement shall be in writing
and may be delivered in person, sent by facsimile or other electronic means if electronic
confirmation of error free receipt is received, or sent by United States mail, postage
prepaid, addressed to the party at the address set forth below.
	 
	16.	 	The Securities Intermediary will be excused from failing to act or delay in acting, and no
such failure or delay shall constitute a breach of this Agreement or otherwise give rise to
any liability of the Securities Intermediary, if (i) such failure or delay is caused by
circumstances beyond the reasonable control of the Securities Intermediary, including without
limitation legal constraint, emergency conditions, action or inaction of governmental, civil
or military authority, terrorism, fire, strike, lockout or other labor dispute, war, riot,
theft, flood, earthquake or other natural disaster, breakdown of public or private or common
carrier communication or transmission facilities, equipment failure, or act, negligence or
default of Pledgor or (ii) such failure or delay resulted from Securities Intermediary’s
reasonable belief that the action would have violated any guideline, rule or regulation of any
governmental authority.
	 
	17.	 	Pledgor agrees to pay Securities Intermediary, upon receipt of Securities Intermediary’s
invoice, all reasonable costs, expenses and attorneys’ fees incurred in the preparation and
administration of this Agreement (including any amendments hereto or instruments or agreements
required hereunder). Pledgor agrees to pay Securities Intermediary, upon receipt of
Securities Intermediary’s invoice, all reasonable costs, expenses and attorneys’ fees incurred
by Securities Intermediary in connection with the enforcement of this Agreement or any
instrument or agreement required hereunder, including without limitation any reasonable costs,
expenses, and fees arising out of the resolution of any conflict, dispute, motion regarding
entitlement to rights or rights of action, or other action to enforce Securities
Intermediary’s rights hereunder in a case arising under Title 11, United States Code. This
paragraph 17 shall survive termination of this Agreement.
	 
	18.	 	Notwithstanding any of the other provisions of this Agreement, in the event of the
commencement of a case pursuant to Title 11, United States Code, filed by or against Pledgor,
or

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	 	 	in the event of the commencement of any similar case under then applicable federal or
state law providing for the relief of debtors or the protection of creditors by or against
Pledgor, Securities Intermediary may act as Securities Intermediary deems necessary to
comply with all applicable provisions of governing statutes and Pledgor shall not assert any
claim against Securities Intermediary for so doing.
	 
	19.	 	If any term or provision of this Agreement shall be invalid or unenforceable, the remainder
of this Agreement, or the application of such term or provision to persons or circumstances
other than those to which it is held invalid or unenforceable, shall be construed in all
respects as if such invalid or unenforceable term or provision were omitted.
	 
	20.	 	This Agreement may be executed in counterparts, each of which shall be an original, and all
of which shall constitute one and the same agreement.
	 
	21.	 	This Agreement is being delivered in New York and shall be governed and construed in
accordance with the law of the State of New York.

* * * * * *

Aircraft Mortgage and Security Agreement

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IN WITNESS WHEREOF, the Pledgor and the Pledgee have agreed to the terms of this Agreement as
of the date indicated above.

	 	 	 	 	 	 	 

	PLEDGOR:	 	PLEDGEE:
	 
	TEMESCAL AIRCRAFT INC.	 	CITIBANK, N.A., as Collateral Agent
	 
	By: 	 	 	By: 	 
		Name:
	 	 	Name: 

	 	Title:
	 		Title:

		Telephone No.: 
	 		Telephone No.: 

	 
	Address:	 	 	Address:
	 
	10250 Constellation Blvd., Suite 3400	 	388 Greenwich Street, 14th Floor
	Los Angeles, CA 90067	 	New York, NY 10013
	Attention: Treasurer with a copy to the General Counsel	 	Attention: Jenny Cheng
	Facsimile No. (310) 788-1990	 	Facsimile No. (212) 657-2762
	 
	Date: March 30, 2011	 	Date: March 30, 2011

	 	 	 	 	 
	Acknowledged and Agreed to:

SECURITIES INTERMEDIARY

CITIBANK, N.A.

 	 
	By:  	 	 
	  	Name:
	 
	  	Title:
	 
	
 	Date: 

	 

Address:

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

Date: March 30, 2011

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Exhibit A

[Letterhead of the Pledgee]

[Date]

     A. BY FACSIMILE TRANSMISSION AND CERTIFIED MAIL

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Facsimile No. (212) 657-2762

Re: Temescal Aircraft Inc.

      Account No. 798628

     B. NOTICE OF EXCLUSIVE CONTROL

Ladies and Gentlemen:

As referenced in the Collateral Account Control Agreement, dated as of March 30, 2011, among
Temescal Aircraft Inc., as Pledgor, Citibank, N.A., as Collateral Agent for the Secured Parties, as
Pledgee, and Citibank, N.A., as Securities Intermediary, we hereby give you notice of our exclusive
control over securities account number 798628 (the “Collateral Account”) and all financial
assets credited thereto. You are hereby instructed not to accept any direction, instruction or
entitlement order with respect to the Collateral Account or the financial assets credited thereto
from any person other than the undersigned.

You are hereby instructed to [deliver][invest] the financial assets in the Collateral Account and
cash dividends, interest, income, earning, and other distributions received with respect thereto,
as follows:

[                                                            

                                                            

                                                            

                                                            ]

	 	 	 	 	 
	 	Very truly yours,

CITIBANK, N.A., as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	

 	 
	 

     cc:   Temescal Aircraft Inc.

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EXHIBIT D

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF FAA AIRCRAFT MORTGAGE

FAA AIRCRAFT MORTGAGE (MSN [                    ])

          THIS FAA AIRCRAFT MORTGAGE (MSN [                    ]) (this “Agreement”) dated as of [      ],
is made by and between [                    ], as grantor (the “Grantor”), and CITIBANK, N.A., a national
banking association, as the Collateral Agent (the “Collateral Agent”) under the Aircraft
Mortgage and Security Agreement (the “Aircraft Mortgage”), dated as of March 30, 2011,
among PARK TOPANGA AIRCRAFT INC., a California corporation (“Parent Holdco”), TEMESCAL
AIRCRAFT INC., a California corporation (the “Borrower”), BALLYSKY AIRCRAFT IRELAND
LIMITED, a private limited liability company incorporated under the laws of Ireland (the “Irish
Subsidiary Holdco”), CHARMLEE AIRCRAFT INC., a California corporation (the “CA Subsidiary
Holdco”), and the additional grantors referred to therein, as the grantors, and CITIBANK, N.A.,
as the Collateral Agent. Capitalized terms used and not defined herein are used as defined in
Appendix A hereto.

W I T N E S S E T H:

          WHEREAS, Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco,
Citibank, N.A., as the administrative agent, the lenders identified therein and the Collateral
Agent have entered into the Credit Agreement, dated as of March 30, 2011 (the “Credit
Agreement”), pursuant to which the Lenders have made the Loans to the Borrower;

          WHEREAS, the Grantor and the Collateral Agent have entered into the Aircraft Mortgage in order
to secure the payment and performance of all obligations of the Borrower Parties under the Credit
Agreement; and

          WHEREAS, the Grantor has agreed to secure the Secured Obligations by granting to the
Collateral Agent for the benefit of the Secured Parties a Lien on its interest in the airframes
(the “Airframes”) and engines (the “Engines”) described in Schedule I hereto
(collectively, the “Pool Aircraft”) and on certain other property and rights relating
thereto; and

          NOW, THEREFORE, in order to (a) induce the Secured Parties to enter into the Loan Documents
and (b) secure the prompt payment and performance of all the Secured Obligations, the Grantor and
the Collateral Agent hereby agree as follows:

     1. SECURITY INTEREST.

          The Grantor does hereby transfer, convey, pledge, mortgage, hypothecate, assign and grant a
first priority security interest to the Collateral Agent, subject to no prior interests of any
Person whatsoever except for a lessee under a Lease, in the following collateral (collectively, the
“Mortgage Collateral”) attaching on the date of this Agreement all of such Grantor’s
rights, title and interest in and to:

Aircraft Mortgage and Security Agreement

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	 	a.	 	each Pool Aircraft, including the Airframe and Engines with respect to such Pool
Aircraft as the same is now and will hereafter be constituted, and in the case of such
Engines, whether or not any such Engine shall be installed in or attached to the
Airframe or any other airframe;
	 
	 	b.	 	all Parts of whatever nature, which are from time to time relating to any
Airframe or Engine, including all substitutions, renewals and replacements of and
additions, improvements, accessions and accumulations to any Airframe or Engine (other
than additions, improvements accessions and accumulations which constitute appliances,
parts, instruments, appurtenances, accessories, furnishings or other equipment excluded
from the definition of Parts);
	 
	 	c.	 	all of the Grantor’s right, title and interest in the technical data, manuals and
log books, and all inspection, modification and overhaul records and other service,
repair, maintenance, technical records in respect of a Pool Aircraft that are Owned by a
Grantor and required pursuant to applicable law to be maintained with respect to such
Pool Aircraft, and such term shall include all additions, renewals, revisions and
replacements of any such materials from time to time made, or required to be made,
pursuant to applicable law, and in each case in whatever form and whatever means or
medium (including, without limitation, microfiche, microfilm, paper or computer disk)
such materials may be maintained or retained by the relevant lessee of the Pool Aircraft
(collectively, the “Aircraft Documents”);
	 
	 	d.	 	any money or non-money proceeds of an Airframe or Engine arising from the total
or partial loss or destruction of such Airframe or its Engine or its total or partial
confiscation, condemnation or requisition up to the amount of hull insurance in respect
of such Pool Aircraft required to be carried hereunder; and
	 
	 	e.	 	all proceeds, howsoever arising, of the foregoing.

          TO HAVE AND TO HOLD the Mortgage Collateral unto the Collateral Agent, and its successors and
assigns, as security for the Secured Obligations.

2. INCORPORATION BY REFERENCE. THE SECURITY INTEREST IN THE MORTGAGE COLLATERAL CREATED
UNDER THIS AGREEMENT IS GRANTED IN ACCORDANCE WITH THE AIRCRAFT MORTGAGE AND ALL OF THE
TERMS AND CONDITIONS THEREOF, INCLUDING BUT NOT LIMITED TO PROVISIONS RELATING TO THE
EXERCISE OF REMEDIES, SHALL BE INCORPORATED HEREIN BY REFERENCE.

Aircraft Mortgage and Security Agreement

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	3.	 	MISCELLANEOUS

          3.1 Successors and Assigns. All the terms, provisions, conditions and covenants herein
contained shall be binding upon and shall inure to the benefit of the Grantor, the Collateral Agent
and their respective permitted successors, assigns and transferees.

          3.2 Severability. Any provision of this Agreement prohibited by the laws of any jurisdiction
or otherwise held to be invalid by any court of law of any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition, or modified to conform with such
laws, without invalidating the remaining provisions hereof; and any such prohibition in any
jurisdiction shall not invalidate such provisions in any other jurisdiction.

          3.3 Governing Law. THIS AGREEMENT IS DELIVERED IN AND SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          3.4 Further Assurances. At any time and from time to time, upon the request of the Collateral
Agent, the Grantor shall promptly and duly execute and deliver any and all such further instruments
and documents that may be necessary, or that the Collateral Agent may reasonably request, in order
for the Collateral Agent to obtain the full benefits of security interests and assignments created
or intended to be created hereby and of the rights and powers granted herein and in the Aircraft
Mortgage.

          3.5 Notices. All notices, requests, demands or other communications required hereunder or
given pursuant hereto shall be in writing unless otherwise expressly provided to the following
specified address or to such other address as either party may from time to time hereafter
designate to the other party in writing:

If to the Grantor:

[                    ]

[ADDRESS]

Attention: [                    ]

Fax: [                    ]

If to the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Fax: 212-657-2762

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	 	3.6	 	Collateral Agent.

          The Collateral Agent shall be afforded all of the rights, protections, immunities and
indemnities set forth in the Aircraft Mortgage as if such rights, protections, immunities
and indemnities were specifically set forth herein.

	 	3.7	 	Cape Town Convention.

          The parties hereto agree that for the purposes of the Cape Town Convention, each Airframe and
Engine is an “aircraft object” (as defined in the Protocol) and this Agreement constitutes an
International Interest in each such Airframe and each such Engine.

	 	3.8	 	Execution in Counterparts.

          This Agreement may be executed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures were upon the same instrument.

[Remainder of page intentionally left blank]

Aircraft Mortgage and Security Agreement

D-4

 

     IN WITNESS WHEREOF, the parties hereto have, by their indicated officers thereunto duly
authorized, caused this FAA Aircraft Mortgage to be executed as of the day and year first above
written and to be delivered in the State of New York.

	 	 	 	 	 
	GRANTOR:	[                    ]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	COLLATERAL AGENT:	 CITIBANK, N.A., not in its individual capacity but
solely as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

D-5

 

APPENDIX A

FAA AIRCRAFT MORTGAGE

DEFINITIONS

     For all purposes of this Agreement, all capitalized terms used, but not defined, in this
Agreement shall have the respective meanings assigned to such terms in the Aircraft Mortgage, and
the following terms have the meanings indicated below:

          “Agreement” has the meaning specified in the recital of parties to this Agreement.

          “Aircraft Documents” has the meaning assigned to such term in Section 1(c) of this Agreement.

          “Aircraft Mortgage” has the meaning specified in the preliminary statements to this Agreement.

          “Airframes” has the meaning specified in the third recital of this Agreement.

          “Borrower Parties” has the meaning specified in the Credit Agreement.

          “Cape Town Convention” has the meaning specified in the Credit Agreement.

          “Credit Agreement” has the meaning specified in the first recital of this Agreement.

          “Engines” has the meaning specified in the third recital of this Agreement.

          “Grantor” has the meaning specified in the recital of parties to this Agreement.

          “International Interest” has the meaning specified in the Cape Town Convention.

          “Lease” means a lease agreement relating to any Pool Aircraft, which is listed on Schedule I
hereto, as such schedule is supplemented (or, if not so supplemented, required to be supplemented)
pursuant to the terms of the Credit Agreement from time to time, between a Borrower Party (as
lessor), and a lessee, in each case together with all schedules, supplements and amendments thereto
and each other document, agreement and instrument related thereto.

          “Lien” has the meaning specified in the Credit Agreement.

          “Loan Documents” has the meaning specified in the Credit Agreement.

          “Mortgage Collateral” means the Pool Aircraft and other property described in Section 1 hereof
and subject to the security interest created by this Agreement.

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          “Owned” has the meaning specified in the Credit Agreement.

          “Part” means all appliances, parts, components, instruments, appurtenances, accessories,
furnishings, seats and other equipment of whatever nature (other than (a) Engines or engines, and
(b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other
equipment that would qualify as a removable part and is leased by a lessee from a third party or is
subject to a security interest granted to a third party), that may from time to time be installed
or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom
and, if the applicable Pool Aircraft or Engine is subject to a Lease, is owned by a Grantor under
the terms of such Lease.

          “Person” has the meaning specified in the Credit Agreement.

          “Pool Aircraft” has the meaning specified in the third recital of this Agreement.

          “Protocol” has the meaning specified in the Credit Agreement.

          “Secured Obligations” has the meaning given to the term “Secured Obligations” in the Aircraft
Mortgage.

          “Secured Parties” has the meaning given to the term “Secured Parties” in the Aircraft
Mortgage.

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SCHEDULE I

FAA AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

MORTGAGE COLLATERAL

“Aircraft [__]” means:

     one (1) [__________] Model [__________]1 aircraft bearing manufacturer’s serial no.
[_____] and FAA registration number [_____];

     together with two (2) [__________]2 Model [__________]3 aircraft engines
(each of which engines has 550 or more rated takeoff horsepower and is a jet propulsion aircraft
engine having at least 1750 pound of thrust or the equivalent thereof) bearing manufacturer’s
serial nos. [_____] and [_____] respectively.

 

1 Described on the International Registry drop down menu as [__].

2 Described on the International Registry drop down menu as [__].

3 Described on the International Registry drop down menu as [__].

Aircraft Mortgage and Security Agreement

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EXHIBIT E

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT

FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT (MSN [_____])

     THIS FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT (MSN [_____]) (this
“Agreement”) dated as of [__________], is made by and between [_____], as grantor (the
“Grantor”), and CITIBANK, N.A., a national banking association, as the Collateral Agent
(the “Collateral Agent”) under the Aircraft Mortgage and Security Agreement (the
“Aircraft Mortgage”), dated as of March 30, 2011, among PARK TOPANGA AIRCRAFT INC., a
California corporation (“Parent Holdco”), TEMESCAL AIRCRAFT INC., a California corporation
(the “Borrower”), BALLYSKY AIRCRAFT IRELAND LIMITED, a private limited liability company
incorporated under the laws of Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT
INC., a California Corporation (the “CA Subsidiary Holdco”) and the additional grantors
referred to therein, as the grantors, and CITIBANK, N.A., as the Collateral Agent. Capitalized
terms used and not defined herein are used as defined in Appendix A hereto.

W I T N E S S E T H:

     WHEREAS, Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco,
Citibank, N.A., as the administrative agent, the lenders identified therein and the Collateral
Agent have entered into the Credit Agreement, dated as of March 30, 2011 (the “Credit
Agreement”), pursuant to which the Lenders have made the Loans to the Borrower;

     WHEREAS, the Grantor and the Collateral Agent have entered into the Aircraft Mortgage in order
to secure the payment and performance of all obligations of the Borrower Parties under the Credit
Agreement; and

     WHEREAS, the Grantor has agreed to secure the Secured Obligations by granting to the
Collateral Agent for the benefit of the Secured Parties a Lien on its interest in the airframes
(the “Airframes”) and engines (the “Engines”) described in Schedule I hereto
(collectively, the “Pool Aircraft”) and by granting to the Collateral Agent a Lien on and
security interest in its rights under the lease agreements described in Schedule I hereto together
with all schedules, supplements and amendments thereto (the “Assigned Leases”) and on
certain other property and rights relating thereto; and

     NOW, THEREFORE, in order to (a) induce the Secured Parties to enter into the Loan Documents
and (b) secure the prompt payment and performance of all the Secured Obligations, the Grantor and
the Collateral Agent hereby agree as follows:

     1. SECURITY INTEREST. The Grantor does hereby transfer, convey, pledge, mortgage,
hypothecate, assign and grant a first priority security interest to the Collateral Agent, subject
to no prior interests of any Person whatsoever except for the lessee under each Assigned

Aircraft Mortgage and Security Agreement

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Lease, in the following collateral (collectively, the “Mortgage Collateral”) attaching
on the date of this Agreement all of such Grantor’s rights, title and interest in and to:

	 	a.	 	each Pool Aircraft, including the Airframe and Engines with respect to such Pool
Aircraft as the same is now and will hereafter be constituted, and in the case of such
Engines, whether or not any such Engine shall be installed in or attached to the Airframe
or any other airframe
	 
	 	b.	 	all Parts of whatever nature, which are from time to time relating to any Airframe or
Engine, including all substitutions, renewals and replacements of and additions,
improvements, accessions and accumulations to any Airframe or Engine (other than additions,
improvements accessions and accumulations which constitute appliances, parts, instruments,
appurtenances, accessories, furnishings or other equipment excluded from the definition of
Parts);
	 
	 	c.	 	all of the Grantor’s right, title and interest in the technical data, manuals and log
books, and all inspection, modification and overhaul records and other service, repair,
maintenance, technical records in respect of a Pool Aircraft that are Owned by a Grantor
and required pursuant to applicable law to be maintained with respect to such Pool
Aircraft, and such term shall include all additions, renewals, revisions and replacements
of any such materials from time to time made, or required to be made, pursuant to
applicable law, and in each case in whatever form and whatever means or medium (including,
without limitation, microfiche, microfilm, paper or computer disk) such materials may be
maintained or retained by the relevant lessee of the Pool Aircraft (collectively, the
“Aircraft Documents”);
	 
	 	d.	 	any money or non-money proceeds of an Airframe or Engine arising from the total or
partial loss or destruction of such Airframe or its Engine or its total or partial
confiscation, condemnation or requisition up to the amount of hull insurance in respect of
such Pool Aircraft required to be carried hereunder;
	 
	 	e.	 	each Assigned Lease, including without limitation: (i) all rights of such Grantor to
receive moneys due and to become due under or pursuant to such Assigned Leases, (ii) all
rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or
guaranty with respect to such Assigned Leases up to the amount of hull insurance in respect
of such Pool Aircraft required to be carried under the Aircraft Mortgage, (iii) claims of
such Grantor for damages arising out of or for breach or default under such Assigned
Leases, (iv) all rights under any such Assigned Lease with respect to any subleases of the
Pool Aircraft subject to such Assigned Lease and (v) the right of such Grantor to terminate
such Assigned Leases and to compel performance of, and otherwise to exercise all remedies
under, any Assigned Lease, whether arising under such Assigned Leases or by statute or at
law or in equity; and
	 
	 	f.	 	all proceeds, howsoever arising, of the foregoing.

          TO HAVE AND TO HOLD the Mortgage Collateral unto the Collateral Agent, and its successors and
assigns, as security for the Secured Obligations.

Aircraft Mortgage and Security Agreement

E-2

 

2. INCORPORATION BY REFERENCE. THE SECURITY INTEREST IN THE MORTGAGE COLLATERAL CREATED
UNDER THIS AGREEMENT IS GRANTED IN ACCORDANCE WITH THE AIRCRAFT MORTGAGE AND ALL OF THE
TERMS AND CONDITIONS THEREOF, INCLUDING BUT NOT LIMITED TO PROVISIONS RELATING TO THE
EXERCISE OF REMEDIES, SHALL BE INCORPORATED HEREIN BY REFERENCE.

     3. MISCELLANEOUS

          3.1 Successors and Assigns. All the terms, provisions, conditions and covenants
herein contained shall be binding upon and shall inure to the benefit of the Grantor, the
Collateral Agent and their respective permitted successors, assigns and transferees.

          3.2 Severability. Any provision of this Agreement prohibited by the laws of any
jurisdiction or otherwise held to be invalid by any court of law of any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition, or modified to conform with
such laws, without invalidating the remaining provisions hereof; and any such prohibition in any
jurisdiction shall not invalidate such provisions in any other jurisdiction.

          3.3 Governing Law. THIS AGREEMENT IS DELIVERED IN AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          3.4 Further Assurances. At any time and from time to time, upon the request of the
Collateral Agent, the Grantor shall promptly and duly execute and deliver any and all such further
instruments and documents that may be necessary, or that the Collateral Agent may reasonably
request, in order for the Collateral Agent to obtain the full benefits of security interests and
assignments created or intended to be created hereby and of the rights and powers granted herein
and in the Aircraft Mortgage.

          3.5 Notices. All notices, requests, demands or other communications required
hereunder or given pursuant hereto shall be in writing unless otherwise expressly provided to the
following specified address or to such other address as either party may from time to time
hereafter designate to the other party in writing:

If to the Grantor:

[_____]

[ADDRESS]

Attention: [_____]

Fax: [_____]

If to the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Fax: 212-657-2762

Aircraft Mortgage and Security Agreement

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          3.6 Collateral Agent.

               The Collateral Agent shall be afforded all of the rights, protections, immunities and
indemnities set forth in the Aircraft Mortgage as if such rights, protections, immunities and
indemnities were specifically set forth herein.

          3.7 Cape Town Convention.

          The parties hereto agree that for the purposes of the Cape Town Convention, each Airframe and
Engine is an “aircraft object” (as defined in the Protocol) and this Agreement constitutes (i) an
International Interest in each such Airframe and each such Engine and (ii) with respect to a Lease
that constitutes an International Interest, an assignment of such International Interest and
associated rights associated with each such Airframe and each such Engine as regards each Assigned
Lease.

          3.8 Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures were
upon the same instrument.

[Remainder of page intentionally left blank]

Aircraft Mortgage and Security Agreement

E-4

 

     IN WITNESS WHEREOF, the parties hereto have, by their indicated officers thereunto duly
authorized, caused this FAA Aircraft Mortgage and Lease Security Assignment to be executed as of
the day and year first above written and to be delivered in the State of New York.

	 	 	 	 	 
	GRANTOR: 	 [__________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	COLLATERAL AGENT: 	 CITIBANK, N.A., not in its individual capacity but

solely as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Aircraft Mortgage and Security Agreement

E-5

 

APPENDIX A

FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT

DEFINITIONS

     For all purposes of this Agreement, all capitalized terms used, but not defined, in this
Agreement shall have the respective meanings assigned to such terms in the Aircraft Mortgage, and
the following terms have the meanings indicated below:

          “Agreement” has the meaning specified in the recital of parties to this Agreement.

          “Aircraft” has the meaning specified in the third recital of this Agreement.

          “Aircraft Documents” has the meaning assigned to such term in Section 1(c) of this Agreement.

          “Aircraft Mortgage” has the meaning specified in the preliminary statements to this Agreement.

          “Airframes” has the meaning specified in the third recital of this Agreement.

          “Assigned Lease” has the meaning specified in the third recital of this Agreement.

          “Borrower Parties” has the meaning specified in the Credit Agreement.

          “Cape Town Convention” has the meaning specified in the Credit Agreement.

          “Credit Agreement” has the meaning specified in the first recital of this Agreement.

          “Engines” has the meaning specified in the third recital of this Agreement.

          “Grantor” has the meaning specified in the recital of parties to this Agreement.

          “International Interest” has the meaning specified in the Cape Town Convention.

          “Lien” has the meaning specified in the Credit Agreement.

          “Loan Documents” has the meaning specified in the Credit Agreement.

          “Mortgage Collateral” means the Pool Aircraft, the Assigned Leases and other property
described in Section 1 hereof and subject to the security interest created by this Agreement.

          “Owned” has the meaning specified in the Credit Agreement.

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          “Part” means all appliances, parts, components, instruments, appurtenances, accessories,
furnishings, seats and other equipment of whatever nature (other than (a) Engines or engines, and
(b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other
equipment that would qualify as a removable part and is leased by a lessee from a third party or is
subject to a security interest granted to a third party), that may from time to time be installed
or incorporated in or attached or appurtenant to any Airframe or any Engine or removed therefrom
and, if the applicable Aircraft or Engine is subject to a Lease, is owned by a Grantor under the
terms of such Lease.

          “Person” has the meaning specified in the Credit Agreement..

          “Pool Aircraft” has the meaning specified in the third recital of this Agreement.

          “Protocol” has the meaning specified in the Credit Agreement.

          “Secured Obligations” has the meaning given to the term “Secured Obligations” in the Aircraft
Mortgage.

          “Secured Parties” has the meaning given to the term “Secured Parties” in the Aircraft
Mortgage.

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SCHEDULE I

FAA AIRCRAFT MORTGAGE AND LEASE SECURITY ASSIGNMENT

MORTGAGE COLLATERAL

     “Airframe [__]” means one (1) [__________] Model [__________]1 aircraft bearing
manufacturer’s serial no. [_____] and FAA registration number [_____].

     “Engines [__]” means two (2) [__________]2 Model [__________]3 aircraft
engines (each of which engines has 550 or more rated takeoff horsepower and is a jet propulsion
aircraft engine having at least 1750 pound of thrust or the equivalent thereof) bearing
manufacturer’s serial nos. [_____] and [_____] respectively.

     [Lease Agreement] dated [__________], between [__________] and [__________] relating to
Airframe [__] and Engines [__] recorded by the Federal Aviation Administration on _______________
and assigned Conveyance No. ____________.

 

1     Described on the International Registry drop down menu as [__].

2     Described on the International Registry drop down menu as [__].

3     Described on the International Registry drop down menu as [__].

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EXHIBIT F

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF FAA LEASE SECURITY ASSIGNMENT

FAA LEASE SECURITY ASSIGNMENT (MSN [_____])

          THIS FAA LEASE SECURITY ASSIGNMENT (MSN [_____]) (this “Assignment”) dated as of
[__________], is made by and between [_____], as grantor (the “Grantor”), and CITIBANK,
N.A., a national banking association, as the Collateral Agent (the “Collateral Agent”)
under the Aircraft Mortgage and Security Agreement (the “Aircraft Mortgage”), dated as of
March 30, 2011, among PARK TOPANGA AIRCRAFT INC., a California corporation (“Parent
Holdco”), TEMESCAL AIRCRAFT INC., a California corporation (the “Borrower”), BALLYSKY
AIRCRAFT IRELAND LIMITED, a private limited liability company incorporated under the laws of
Ireland (the “Irish Subsidiary Holdco”), CHARMLEE AIRCRAFT INC., a California corporation
(the “CA Subsidiary Holdco”) and the additional grantors referred to therein, as the
grantors, and CITIBANK, N.A., as the Collateral Agent. Capitalized terms used and not defined
herein are used as defined in Appendix A hereto.

W I T N E S S E T H:

     WHEREAS, Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco,
Citibank, N.A., as the administrative agent, the lenders identified therein and the Collateral
Agent have entered into the Credit Agreement, dated as of March 30, 2011 (the “Credit
Agreement”), pursuant to which the Lenders have made the Loans to the Borrower; and

     WHEREAS, the Grantor and the Collateral Agent have entered into the Aircraft Mortgage in order
to secure the payment and performance of all obligations of the Borrower Parties under the Credit
Agreement; and

     WHEREAS, the Grantor has agreed to secure the Secured Obligations by assigning to the
Collateral Agent the lease agreements as more fully described on Schedule 1 hereto, together with
all schedules, supplements and amendments thereto (the “Assigned Leases”); and

     NOW THEREFORE, the Grantor hereby agrees as follows with the Collateral Agent for its benefit
and the benefit of the other Secured Parties:

1. The Grantor does hereby transfer, convey, pledge, mortgage, hypothecate, assign and grant a
first priority security interest to the Collateral Agent, subject to no prior interests of any
Person whatsoever except for the lessee under each Assigned Lease, in all of such Grantor’s rights,
title and interest in and to each Assigned Lease, including without limitation: (i) all rights of
such Grantor to receive moneys due and to become due under or pursuant to such Assigned Leases,
(ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or
guaranty with respect to such Assigned Leases up to the amount of hull insurance in respect of such
Pool Aircraft required to be carried under the Aircraft Mortgage, (iii) claims of such

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Grantor for damages arising out of or for breach or default under such Assigned Leases, (iv) all
rights under any such Assigned Lease with respect to any subleases of the Pool Aircraft subject to
such Assigned Lease, (v) the right of such Grantor to terminate such Assigned Leases and to compel
performance of, and otherwise to exercise all remedies under, any Assigned Lease, whether arising
under such Assigned Leases or by statute or at law or in equity and (vi) all proceeds, howsoever
arising, of the foregoing.

2. INCORPORATION BY REFERENCE. THE SECURITY INTEREST CREATED UNDER THIS ASSIGNMENT IS
GRANTED IN ACCORDANCE WITH THE AIRCRAFT MORTGAGE AND ALL OF THE TERMS AND CONDITIONS
THEREOF, INCLUDING BUT NOT LIMITED TO PROVISIONS RELATING TO THE GRANTOR’S RIGHTS IN
RESPECT OF DEALING WITH ANY ASSIGNED LEASE AND THE COLLATERAL AGENT’S EXERCISE OF REMEDIES,
SHALL BE INCORPORATED HEREIN BY REFERENCE.

3. MISCELLANEOUS

     3.1 Successors and Assigns. All the terms, provisions, conditions and covenants
herein contained shall be binding upon and shall inure to the benefit of the Grantor, the
Collateral Agent and their respective permitted successors, assigns and transferees.

     3.2 Severability. Any provision of this Assignment prohibited by the laws of any
jurisdiction or otherwise held to be invalid by any court of law of any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition, or modified to conform with
such laws, without invalidating the remaining provisions hereof; and any such prohibition in any
jurisdiction shall not invalidate such provisions in any other jurisdiction.

     3.3 Governing Law. THIS ASSIGNMENT IS DELIVERED IN AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     3.4 Further Assurances. At any time and from time to time, upon the request of the
Collateral Agent, the Grantor shall promptly and duly execute and deliver any and all such further
instruments and documents that may be necessary, or that the Collateral Agent may reasonably
request, in order for the Collateral Agent to obtain the full benefits of security interests and
assignments created or intended to be created hereby and of the rights and powers granted herein
and in the Aircraft Mortgage.

     3.5 Notices. All notices, requests, demands or other communications required
hereunder or given pursuant hereto shall be in writing unless otherwise expressly provided to the
following specified address or to such other address as either party may from time to time
hereafter designate to the other party in writing:

          If to the Grantor:

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[_____]

[ADDRESS]

Attention: [_____]

Fax: [_____]

          If to the Collateral Agent:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, NY 10013

Attention: Jenny Cheng

Fax: 212-657-2762

     3.6 Collateral Agent.

          The Collateral Agent shall be afforded all of the rights, protections, immunities and
indemnities set forth in the Aircraft Mortgage as if such rights, protections, immunities and
indemnities were specifically set forth herein.

     3.7 Cape Town Convention.

     The parties hereto agree that for the purposes of the Cape Town Convention, each Airframe and
Engine are “aircraft objects” (as defined in the Protocol) and this Assignment constitutes, with
respect to a Lease that constitutes an International Interest, an assignment of such International
Interest and associated rights associated with each Airframe and Engine as regards the Assigned
Lease.

     3.8 Execution in Counterparts. This Assignment may be executed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures were
upon the same instrument.

[Remainder of page intentionally left blank]

Aircraft Mortgage and Security Agreement

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IN WITNESS WHEREOF, the undersigned have executed or caused this Assignment to be executed on the
day and year first written above.

	 	 	 	 	 
	 	GRANTOR:

[_____]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	
COLLATERAL AGENT:

CITIBANK, N.A., not in its individual capacity but solely 

as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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APPENDIX A

FAA LEASE SECURITY ASSIGNMENT

DEFINITIONS

     For all purposes of this Assignment, all capitalized terms used, but not defined, in this
Assignment shall have the respective meanings assigned to such terms in the Aircraft Mortgage, and
the following terms have the meanings indicated below:

          “Assignment” has the meaning specified in the recital of parties to this Assignment.

          “Aircraft Mortgage” has the meaning specified in the preliminary statements to this
Assignment.

          “Airframes” means the airframes described in Schedule I hereto.

          “Assigned Lease” has the meaning specified in the third recital of this Assignment.

          “Borrower Parties” has the meaning specified in the Credit Agreement.

          “Cape Town Convention” has the meaning specified in the Credit Agreement.

          “Credit Agreement” has the meaning specified in the first recital of this Assignment.

          “Engines” means the engines described in Schedule I hereto.

          “Grantor” has the meaning specified in the recital of parties to this Assignment.

          “International Interest” has the meaning specified in the Cape Town Convention.

          “Lien” has the meaning specified in the Credit Agreement.

          “Person” has the meaning specified in the Credit Agreement.

          “Pool Aircraft” means, collectively, the Airframes and Engines.

          “Protocol” has the meaning specified in the Credit Agreement.

          “Secured Obligations” has the meaning given to the term “Secured Obligations” in the Aircraft
Mortgage.

          “Secured Parties” has the meaning given to the term “Secured Parties” in the Aircraft
Mortgage.

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Schedule 1

to FAA Lease Security Assignment (MSN [_____])

     “Airframe [__]” means one (1) [__________] Model [__________]1 aircraft bearing
manufacturer’s serial no. [_____] and FAA registration number [_____].

     “Engines [__]” means two (2) [__________]2 Model [__________]3 aircraft
engines (each of which engines has 550 or more rated takeoff horsepower and is a jet propulsion
aircraft engine having at least 1750 pound of thrust or the equivalent thereof) bearing
manufacturer’s serial nos. [_____] and [_____] respectively.

     [Lease Agreement] dated [__________], between [__________] and [__________] relating to
Airframe [__] and Engines [__] recorded by the Federal Aviation Administration on _______________
and assigned Conveyance No. ____________.

 

1     Described on the International Registry drop down menu as [__].

2     Described on the International Registry drop down menu as [__].

3     Described on the International Registry drop down menu as [__].

	 	 	 	 	 
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EXHIBIT G

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

FORM OF NOTICE OF ASSIGNMENT

From: [__________] (the “Lessor”)

To: [__________] (the “Lessee”)

[DATE]

Ladies and Gentlemen:

We refer to the [Aircraft Lease Agreement] dated as of [__________] (as amended and supplemented,
the “Lease”) entered into between Lessee and Lessor pertaining to one (1)
[MANUFACTURER/MODEL] aircraft bearing manufacturer’s serial number [MSN] and registration number
[REG] and [MANUFACTURER/MODEL] engines bearing manufacturer’s serial numbers [ESN] and [ESN], each
of which is a jet propulsion engine bearing at least 1750 pounds of thrust or the equivalent
thereof.

Any and all initially capitalized terms used herein shall have the meanings ascribed thereto in the
Lease, unless specifically defined herein.

The Lessor hereby gives you notice that by that certain Aircraft Mortgage and Security Agreement
dated as of March 30, 2011, and made between the parties named therein including Lessor and
Citibank, N.A., as the Collateral Agent (the “Collateral Agent”), the Lessor has assigned
to the Collateral Agent by way of security all its right, title and interest in and to the Lease
and the proceeds thereof, including certain insurance proceeds (the “Security Assignment”).
The Lessor also notifies you that the Collateral Agent is a [Collateral Agent] as defined under
the Lease.

Notwithstanding any contrary provision in the Lease, Citibank, N.A., as Collateral Agent, shall be
the loss payee, a contract party and an additional insured, as applicable, on all hull and war risk
policies of insurance and Citibank, N.A., as Collateral Agent and Administrative Agent shall be a
contract party and an additional insured, as applicable, on all liability policies of insurance.

If the Collateral Agent issues to you a notice (a “Relevant Notice”) that its rights as
assignee under the Security Assignment have become exercisable as provided therein, you are hereby
authorized and required to thereafter perform, observe and comply with all your undertakings and
obligations under the Lease in favor and for the benefit of the Collateral Agent as if the
Collateral Agent were named as lessor therein instead of Lessor, and from and after the date of the
Relevant Notice, you shall make all payments under the Lease as provided in the Relevant Notice or
as the Collateral Agent shall otherwise direct.

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This notice and the instructions herein contained are irrevocable unless and until the Collateral
Agent revokes them.

This notice shall be governed by and construed in accordance with [New York]/[English] law.

Very truly yours,

[__________]

	 	 	 	 	 
	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

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