Document:

Exhibit 10.3

 

A330 FINANCING LETTER AGREEMENT

 

As of January
24, 2006

 

Ladies and Gentlemen:

 

Northwest
Airlines, Inc. (the “Buyer”),
and AVSA, S.A.R.L. (the “Seller”),
have entered into that certain A330 Purchase Agreement, dated as of
December 21, 2000, as amended to and including the date hereof (the “A330 Purchase Agreement”),
which covers, among other matters, the sale by the Seller and the purchase by
the Buyer of fourteen (14) A330 Aircraft scheduled for delivery in 2006 and
2007 (the “Aircraft”)
as described in the A330 Purchase Agreement.

 

The
Buyer and the Seller entered into an A330 Financing Letter Agreement No 1,
dated as of December 21, 2000, as amended, and a New A330 Financing Letter
Agreement No 1, dated as of January 21, 2005 (the “Original FLAs”). The Buyer
commenced voluntary proceedings under Title 11 of the United States Code
in the United States Bankruptcy Court for the Southern District of New York
(the “Court”) and such
proceedings are identified as Case No. 05-17930 (ALG) and are referred to
herein as the “Case”.

 

Pursuant
to a motion submitted by the Buyer in the Case, the Court has made a
determination that the Original FLAs terminated pursuant to their terms.

 

The
Buyer and the Seller have agreed to set forth in this A330 Financing Letter
Agreement (this “Letter Agreement”)
certain terms and conditions regarding the financing of the Aircraft.

 

The
financing support provided or caused to be provided by the Seller hereunder
shall only be available for up to ten (10) Aircraft out of the fourteen (14)
Aircraft to be delivered to the Buyer under the A330 Purchase Agreement.

 

Capitalized
terms used herein and not otherwise defined in this Letter Agreement shall have
the meanings assigned thereto in the A330 Purchase Agreement. The terms “herein”,
“hereof” and “hereunder” and words of similar import refer to this Letter
Agreement.

 

This
Letter Agreement shall not constitute part of the A330 Purchase Agreement, but
shall be a separate and independent contract of financial accommodation.

 

A.            A330 FINANCING:

 

The
Seller hereby agrees that the Seller or one or more of its subsidiaries or
affiliate companies (the “Lender”)
shall provide, or cause to be provided for each of the ten (10) Aircraft
specified herein, a standby credit facility in the form of a senior secured
mortgage debt financing on the terms and conditions outlined below (each an “A330 Financing”).

 

	
  Aircraft eligible under

  	
   

  	
   

  
	
  this Letter Agreement:

  	
   

  	
  A330 aircraft scheduled
  to be delivered in January 2006

  
	
   

  	
   

  	
  A330 aircraft scheduled
  to be delivered in September 2006

  

 

 

	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2006

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2006

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2007

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2007

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2007

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2007

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2007

  
	
   

  	
   

  	
  A330
  aircraft scheduled to be delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT 2007

  
	
   

  	
   

  	
   

  
	
  Financed Amount:

  	
   

  	
  The Financed Amount for an Aircraft shall
  be CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT percent
  of the Aircraft Net Fly Away Price (as defined below) of such Aircraft.

  
	
   

  	
   

  	
   

  
	
  Aircraft Net Fly Away Price:

  	
   

  	
  Final Contract Price of the relevant
  Aircraft, net of all airframe and engine credit memoranda available at
  delivery to reduce the Final Contract Price regardless of the application of
  such credit memoranda by the Buyer. The Aircraft Net Fly Away Price for an
  Aircraft shall include the cost, subject to the limits set out below, of
  buyer furnished equipment and AVSA-supplied buyer furnished

  

 

 

	
   

  	
   

  	
  equipment under Clause 18 of the A330
  Purchase Agreement, (together the “Equipment”)
  for such Aircraft. The cost of Equipment included within the Aircraft Net Fly
  Away Price shall not exceed CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
  CONFIDENTIAL TREATMENT percent (CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT%) of the Aircraft Net Fly Away Price excluding the
  cost of the Equipment for such Aircraft. For A330 Financings funded after the
  Consummation Date, the Net Fly Away Price shall not include amounts added to
  the Final Contract Price pursuant to Paragraph 1.4(i) of Letter Agreement 8
  to the A330 Purchase Agreement.

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  Each A330 Financing shall mature on the
  earlier of (x) the date that is CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT years from the date of funding and (y) the
  date that is CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
  TREATMENT years from the date of substantial consummation (as defined in 11
  U.S.C. §1101), which, for purposes of this Letter Agreement, shall be no
  later than the effective date of a plan of reorganization of the Buyer that
  is confirmed by the Court (the “Consummation
  Date”)

  
	
   

  	
   

  	
   

  
	
  Repayment Profile:

  	
   

  	
  Each A330 Financing shall amortize from the
  Financed Amount using a fixed principal annuity repayment profile based on a
  notional interest rate of CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
  CONFIDENTIAL TREATMENT% per annum down to a CONFIDENTIAL MATERIAL OMITTED AND
  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
  REQUEST FOR CONFIDENTIAL TREATMENT percent (CONFIDENTIAL MATERIAL OMITTED AND
  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
  REQUEST FOR CONFIDENTIAL TREATMENT%) balance repayment of the Aircraft Net
  Fly Away Price (the “Balloon”)
  at year CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
  SECURITIES AND EXCHANGE COMMISSION

  

 

 

	
   

  	
   

  	
  PURSUANT TO A REQUEST FOR CONFIDENTIAL
  TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
  TREATMENT).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except as set forth in the next succeeding sentence, each A330
  Financing shall be fully repaid in CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
  CONFIDENTIAL TREATMENT) quarterly principal repayments, in arrears, with a
  final payment equal to the Balloon. If the actual maturity date of any A330
  Financing falls later than the last day of the CONFIDENTIAL MATERIAL OMITTED
  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
  A REQUEST FOR CONFIDENTIAL TREATMENT year from the date of funding thereof,
  then, for the period following such last day of the CONFIDENTIAL MATERIAL
  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT year, through actual
  maturity, the principal amount shall be amortized at the rate of CONFIDENTIAL
  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT percent
  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT%) per
  annum, payable in arrears, until such maturity date, pro rated for periods of
  less than one year.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Installments of interest shall be calculated at the beginning of each
  month of the Term on the principal amount then outstanding using the
  applicable Interest Rate as defined below and shall be payable monthly in
  arrears on the twenty-fourth day of each month during the Term and on the
  maturity date (pro rated for periods of less than one month).

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  The Interest Rate for each A330 Financing
  will be based on a floating rate equal to one (1) month US$LIBOR as
  determined and notified by the Lender to the Buyer as provided above (“1M LIBOR”) plus:

  

 

 

	
   

  	
  (a)

  	
  prior to the Consummation Date,
  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT basis
  points per annum; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  from and after the Consummation Date, the
  highest of

  
	
   

  
	
   

  	
  (A)(1)

  	
  in the case of the
  first five Aircraft financed under this Letter Agreement, the Buyer’s market
  margin over 1M LIBOR for similar types of financings; and (2) in the case of
  the last five Aircraft financed under this Letter Agreement, the Buyer’s
  market margin over 1M LIBOR for similar types of financings plus CONFIDENTIAL
  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT basis points per
  annum, and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  in each case, subject to a cap of (x) in the case of a market margin
  determined pursuant to clause (b)(A)(1), CONFIDENTIAL MATERIAL OMITTED AND
  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
  REQUEST FOR CONFIDENTIAL TREATMENT basis points per annum and (y) in the
  case of a market margin determined under clause (b)(A)(2), CONFIDENTIAL
  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT basis points per
  annum. Each such cap will be decreased by (a) CONFIDENTIAL MATERIAL
  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT basis points per annum for
  all periods commencing on or after the interest payment date immediately
  following the date, if any, on which the Buyer meets each of the conditions
  set forth in Exhibit 1 and (b) CONFIDENTIAL MATERIAL OMITTED AND
  FILED SEPARATELY

  

 

 

	
   

  	
   

  	
  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
  CONFIDENTIAL TREATMENT basis points per annum for all periods commencing on
  or after the Consummation Date if AVSA exercises the deferral rights
  described in Paragraph 1.2 of Amendment No. 9 to the A330 Purchase
  Agreement, of even date herewith;

  
	
   

  	
   

  	
   

  
	
   

  	
  (B)

  	
  CONFIDENTIAL MATERIAL
  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL
  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) basis points per annum; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (C)

  	
  So long as the initial
  Lender or any other Lender that is an affiliate of the Seller holds the A330
  Financing, such Lender’s cost of funds over 1M LIBOR (as determined below)
  for a comparable borrowing plus CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT) basis points per annum.

  
	
   

  
	
   

  	
   

  	
  Before the Consummation Date (with respect to A330 Financings
  completed before such date) and prior to the funding of each A330 Financing
  made after the Consummation Date, the Seller and the Buyer will establish the
  then prevailing Buyer’s market margin over 1M LIBOR and the Lender’s cost of
  funds over 1M LIBOR by requesting their respective banks to determine the
  rate that would be obtainable in the market by the Buyer and by the Lender
  for a comparable borrowing at the time of such A330 Financing. If the two
  banks agree on the Buyer’s market margin over 1M LIBOR and the Lender’s cost
  of funds over 1M LIBOR, then these rates shall be the

  
					

 

 

	
   

  	
   

  	
  Buyer’s market margin over 1M LIBOR and the Lender’s cost of funds
  over 1M LIBOR for purposes of such A330 Financing.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Should the two banks fail to agree on the Buyer’s market margin over
  1M LIBOR and/or the Lender’s cost of funds over 1M LIBOR, the Seller and the
  Buyer will request a mutually selected third bank to determine the Buyer’s
  market margin over 1M LIBOR and/or the Lender’s cost of funds over 1M LIBOR
  and the average of the closest two of the three bank quotations for each of
  the Buyer’s market margin over 1M LIBOR and/or the Lender’s cost of funds
  over 1M LIBOR will be the Buyer’s market margin over 1M LIBOR and/or the
  Lender’s cost of funds over 1M LIBOR for purposes of such A330 Financing.

  
	
   

  	
   

  	
   

  
	
  Prepayment Right:

  	
   

  	
  Each A330 Financing shall be pre-payable in
  whole or in part at any time by the Buyer without, except as provided in the
  next succeeding paragraph, premium or penalty other than 1M LIBOR breakage
  cost, and provided that no event of default has occurred (including, without
  limitation, any event of default arising by reason of any cross-default
  provision and without regard to the cross-collateralization provision
  described below).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In the case of a private placement transaction by the initial
  Airbus-related lender to a bona fide transferee that is not Airbus, AVSA or any of
  their Affiliates of one hundred percent (100%) of the then-outstanding
  principal amount of any A330 Financing, the following prepayment premiums and
  limitations will apply in relation to up to five A330 Financings selected by
  the Lender:

  
	
   

  
	
   

  	
  •

  	
  until the
  Consummation Date, no prepayment;

  
	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  with respect
  to any prepayment occurring during the one year period commencing on the
  Consummation Date, a prepayment premium equal to CONFIDENTIAL MATERIAL
  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT% of the prepaid amount;

  
	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  with respect
  to any prepayment occurring during the one year period commencing on the
  first anniversary of the Consummation Date, a prepayment premium equal to
  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE

  

 

 

	
   

  	
   

  	
  COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT% of the prepaid amount; and

  
	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  with respect
  to any prepayment occurring during the one year period commencing on the
  second anniversary of the Consummation Date, a prepayment premium equal to
  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT% of the
  prepaid amount and the Buyer will execute an amendment to the applicable loan
  documents reflecting the same.

  
	
   

  	
   

  	
   

  
	
  Cross Default and

  
	
  Cross-collateralization:

  	
   

  	
  Cross
  default and cross-collateralization shall apply as among the following
  transactions (the “Airbus
  Financings”) as and to the extent described below:

  
	
   

  
	
   

  	
  •

  	
  A330
  Financings entered into and to be entered into at any time between the Lender
  and the Buyer and/or any of their respective subsidiaries or affiliate
  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  Financings
  of A330 aircraft msn 0674 and 0690 and A319 aircraft msn 2618 and 2641 (the “Existing Aircraft Financings”),

  
	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  The loan
  (the “Term Loan”)
  made pursuant to the Amended and Restated Loan Agreement dated as of
  March 29, 1996, and the related security and other agreements, in each
  case, as amended from time to time (collectively, the “Term Loan Agreement”). In
  the case of the Term Loan, cross-collateralization will be limited such that
  collateral supporting the A330 Financings and the Existing Aircraft
  Financings will support the obligations of the Buyer under the Term Loan
  Agreement, and an event of default under the Term Loan Agreement will
  constitute an event of default under each A330 Financing and each Existing
  Aircraft Financing, but collateral supporting the Term Loan will not support
  any A330 Financing, any Existing Aircraft Financing or any Sublease, nor will
  an event of default under any A330 Financing, any Existing Aircraft Financing
  or any Sublease constitute an event of default under the Term Loan.
  Cross-collateralization and cross-default as between A330 Financings and the
  Existing Aircraft Financings, on the one hand, and the Term Loan, on the
  other, will be discontinued at such

  
						

 

 

	
   

  	
   

  	
  time as the
  Buyer has (i) delivered the first appraisal required to be delivered by
  it pursuant to amendments to the Term Loan Agreement of even date herewith
  and (ii) made any payment that may be necessary to effect compliance by
  it with Section 6.1 of the Term Loan Agreement, as so amended, and

  
	
   

  	
   

  	
   

  
	
   

  	
  •

  	
  Subleases
  listed in Exhibit 2 (each, a “Sublease”
  and, collectively, the “Subleases”).
  Cross-collateralization with respect to the Subleases will be limited such
  that collateral supporting the A330 Financings and the Existing Aircraft
  Financings will support the Buyer’s obligations under the Subleases. An event
  of default under any Sublease will constitute an event of default under each
  A330 Financing and each Existing Aircraft Financing, and an event of default
  under any A330 Financing and each Existing Aircraft Financing will constitute
  an event of default under each of the Subleases.

  
	
   

  
	
   

  	
   

  	
  Cross
  default and cross-collateralization also shall apply in the same manner to
  the “Pooled Airbus Financings” held by a “Pooled Sell-Down Lender” that
  acquired such Pooled Airbus Financings in a “Pooled Sell-Down,” as each of such
  terms is defined in the MSN 0718 Agreements (as defined below in “Transaction
  Documents”), treating references to the “Notes” in such definitions as
  references to a Pooled Airbus Financing.

  
	
   

  	
   

  
	
  Airbus
  Financial Services

  (“AFS”), AFS joint ventures

  	
   

  	
   

  
	
  or
  their subsidiaries:

  	
   

  	
  The
  provisions of Section 8.7 of the credit agreement in relation to the
  Existing Aircraft Financing of A330 aircraft MSN 0633 shall be incorporated
  into each A330 Financing, provided, however, that for purposes of
  (i) providing any A330 Financing or (ii) an assignment of any A330
  Financing, in the event that Avion Capital Limited, AFS or AFS’ successor
  (provided such AFS successor is a subsidiary of Airbus SAS), any joint
  venture where AFS or AFS’ successor (provided such AFS successor is a
  subsidiary of Airbus SAS) is at least a CONFIDENTIAL MATERIAL OMITTED AND
  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
  REQUEST FOR CONFIDENTIAL TREATMENT percent (CONFIDENTIAL MATERIAL OMITTED AND
  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
  REQUEST FOR CONFIDENTIAL TREATMENT%)

  
					

 

 

	
   

  	
   

  	
  participant,
  or any of their wholly owned subsidiaries is either the provider or the
  assignee of an A330 Financing, such entity shall not be subject to a net
  worth test and shall not be required to obtain a third party guarantee of its
  obligations.

  
	
   

  	
   

  	
   

  
	
  Notice:

  	
   

  	
  The Buyer shall inform the Seller of its
  intention to use an A330 Financing offered by the Seller as set forth herein
  as to any Aircraft by providing written notice to the Seller no less than
  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) days
  prior to the scheduled month of delivery of each such Aircraft (the “Preliminary Notice Date”).
  The Buyer will be required to provide final written irrevocable notice (the “Final Notice Date”) to the
  Seller no less than CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
  THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
  TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
  AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
  days prior to the scheduled month of delivery of such Aircraft.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding the foregoing, in order to facilitate administrative
  planning, the Lender will be entitled from time to time and in advance of the
  Preliminary Notice Date to ask the Buyer about its likely intentions with
  regard to the financing of a relevant Aircraft. The Buyer hereby undertakes
  to provide a good faith response to any such enquiry, which will not be
  binding on its ultimate intentions.

  
	
   

  	
   

  	
   

  
	
  Transaction
  Documents:

  	
   

  	
  Except as expressly otherwise provided in
  this Letter Agreement, the documentation for each A330 Financing shall be
  based upon the documentation for the financing of MSN 0718, scheduled to
  be delivered on January 24, 2006 (the “MSN 0718 Agreements”), reasonably adjusted, in the
  case of any A330 Financing after March 1, 2006, to reflect the provisions of
  the Cape Town Convention on International Interests in Mobile Equipment and
  Protocol Thereto on Matters Specific to Aircraft Equipment.

  

 

 

	
  Cost and Expenses:

  	
   

  	
  The Buyer will pay the Lender’s reasonable
  and adequately documented external legal expenses in relation to each A330
  Financing whether or not consummated. The provisions of this Paragraph shall
  survive any termination of this Letter Agreement.

  
	
   

  	
   

  	
   

  
	
  Guarantee:

  	
   

  	
  To the extent that the Seller or an
  affiliate of the Seller other than AFS or AFS’ successor (provided such AFS
  successor is a subsidiary of Airbus SAS) is a Lender under an A330 Financing
  and prior to any transfer or assignment of such A330 Financing by such
  Lender, the obligation of such Lender to disburse the loan thereunder,
  subject to the terms and conditions specified therein, shall be guaranteed by
  Airbus SAS on terms substantially similar to those set forth in Exhibit 3 of
  this Letter Agreement.

  

 

B.            CONDITIONS PRECEDENT:

 

Each A330 Financing will contain the conditions
precedent to the funding of any A330 Financing set forth in the Credit
Agreement included in the MSN 0718 Agreements, (except for conditions precedent
in sections 3.1(b)(v), (vi), (vii), (viii) and (ix) thereof relating to
amendments or assumptions of agreements to be accomplished pursuant to the Term
Sheet in connection with the first A330 Financing or that are not otherwise
relevant to subsequent A330 Financings), and including the following for the
indicated A330 Financings:

 

	
  (i)

  	
   

  	
  For all A330
  Financings, the Buyer’s not being in default at the time of drawdown of debt
  under (a) any Airbus Financing that is not a Pooled Airbus Financing, (b) the
  A330 Purchase Agreement or any other agreement for the purchase of aircraft
  between the Buyer and any of its affiliates and the Seller or any of its
  affiliates (collectively, the “Airbus Purchase Agreements”), and (c) any
  agreement between the Buyer or any of its Affiliates, on the one hand, and
  the Seller, or any of its Affiliates, on the other hand (other than
  agreements described in sub-clauses (a) and (b) of this clause (i), provided
  however, that neither (x) a bona fide dispute relating to matters arising under any
  agreement described in sub-clause (c) of this clause (i) nor (y) the
  commencement by the Borrower of the Case shall constitute a “default” for
  purposes of this clause (i);

  

 

	
  (ii)

  	
   

  	
  For all A330
  Financings, the Buyer not being in material default at the time of drawdown
  of debt under any direct or indirect financing of any A330 Aircraft by the
  propulsion systems manufacturer;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  For A330
  Financings to be entered into after the Consummation Date, the Buyer’s having
  used commercially reasonable efforts to secure third party financing for the
  relevant Aircraft on equal or better terms before utilizing the Seller’s
  financing support hereunder, provided that a letter from a

  

 

 

	
   

  	
   

  	
  major banker
  stating that such third party financing is unavailable on equal or better
  terms to the Buyer shall satisfy the Buyer’s obligation to use commercially
  reasonable efforts to secure such financing;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  For all A330
  Financings to be entered into after the first A330 Financing, not later than
  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) days prior to
  the funding of each such A330 Financing, the Buyer will provide the Lender
  with either an update of the Buyer’s business plan or a certificate of the
  Buyer’s chief financial officer stating that the business plan has not been
  substantially modified in relation to the Buyer’s operation of A330 aircraft
  or, during the pendency of the Case, in relation to the Buyer’s expected
  treatment of any of the transactions contemplated by the NWA Restructuring
  Term Sheet since the business plan was last delivered to the Lender. The
  business plan most recently delivered to the Lender as of any date shall
  cover a period extending to at least CONFIDENTIAL MATERIAL OMITTED AND FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
  FOR CONFIDENTIAL TREATMENT;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  For A330
  Financings to be entered into until the earlier of (a) the date on which
  the Court has approved a debtor-in-possession loan or other financing under
  11 U.S.C. §364 and (b) the Consummation Date, the Buyer shall have an
  amount of Unrestricted Cash greater than or equal to CONFIDENTIAL MATERIAL
  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT U.S. dollars ($CONFIDENTIAL
  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) where “Unrestricted Cash” means
  Cash Equivalents and short term investments that may be classified, in
  accordance with GAAP, as unrestricted on the consolidated balance sheet of
  the Buyer, and “Cash Equivalents”
  means cash and items classified as cash equivalents for purposes of GAAP;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  For all A330
  Financings, there shall not be continuing any default under any
  debtor-in-possession or other financing under 11 U.S.C. §364 prior to the
  Consummation Date or, following the Consummation Date, the Buyer’s primary
  loan facility;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  For A330
  Financings entered into on or prior to the Consummation Date, the Seller will
  be satisfied that (x) all of the provisions of the NWA Restructuring Term
  Sheet, as evidenced by the Airbus Documentation (as defined in the MSN 0718
  Agreements), have been incorporated into the

  

 

 

	
   

  	
   

  	
  Buyer’s plan of
  reorganization, if any has been proposed at the time of such funding, and (y)
  such plan of reorganization, if any, does not contain any provision
  inconsistent with the terms thereof;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  For A330
  Financings entered into on or prior to the Consummation Date, the Buyer’s
  exclusive right to propose a plan of reorganization shall not have been
  terminated;

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  For A330
  Financings entered into on or prior to the Consummation Date, the Court shall
  not have granted relief to any party that is inconsistent with the provisions
  of the NWA Restructuring Term Sheet or any Airbus Documentation (as defined
  above);

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  For A330
  Financings entered into on or prior to the Consummation Date, the Case shall
  not have been converted to a liquidation proceeding under Chapter 7 or
  Chapter 11 of the United States Bankruptcy Code;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  For A330
  Financings entered into on or prior to the Consummation Date, no trustee
  shall have been appointed in respect of the Buyer or any of its Affiliates in
  the Case; and

  
	
   

  	
   

  	
   

  
	
  (xii)

  	
   

  	
  For A330
  Financings entered into on or prior to the Consummation Date, no lien shall
  have been granted in favor of any debtor-in-possession lender or other lender
  (other than the Seller or an affiliate of the Seller), including any lender
  or representative of any lender claiming priority status under 11 U.S.C.
  §364, on any collateral securing any Airbus Financing other than a Pooled
  Airbus Financing (as defined in the MSN 0718 Agreements).

  

 

C.            TERMINATION

 

During the term of this Letter Agreement, each of the
commitments of the Seller set forth herein shall be subject to the non-occurrence
of any of the events described in this paragraph C. Should any event
described in sub-paragraph (a) of this paragraph occur, this Letter
Agreement and the commitments of the Seller hereunder shall automatically
terminate without notice of any kind and without prejudice to any other rights
or remedies that may be available to the Seller. If any event described in sub-paragraphs (b)
or (c) of this paragraph occur, the Seller shall be entitled to terminate this
Letter Agreement and its commitments hereunder.

 

(a)

 

(1)           The Buyer
or any other party shall commence any case, proceeding or other action (other
than the Case) with respect to the Buyer in any jurisdiction relating to
bankruptcy, insolvency, reorganization or relief from debtors or seeking a
reorganization, arrangement, winding-up, liquidation, dissolution or other
relief with respect to its debts and such case, proceeding or action is not
dismissed within CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND

 

 

EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) days.

 

(2)           An action
is commenced seeking the appointment of a receiver, trustee, custodian or other
similar official for the Buyer for all or substantially all of its assets and
such action is not stayed or dismissed within CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT) days, or the Buyer makes a general assignment for the
benefit of its creditors.

 

(3)           An action
is commenced against the Buyer seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets and such action is not dismissed within CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT) days.

 

(4)           The Buyer
is, at any time following the Consummation Date, unable generally to pay its
debts as they become due.

 

(5)           There is a
liquidation, winding-up or analogous event with respect to the Buyer,
including, without limitation, by means of a liquidation conducted in the Case.

 

(b)

 

(1)           The Buyer
or any of its Affiliates fails to make any Predelivery Payment required to be
made pursuant to the A330 Purchase Agreement, the A319 Purchase Agreement or
any Other Purchase Agreement when such payment comes due or fails to make
payment of all or part of the Final Contract Price with respect to any aircraft
required to be made pursuant to the A330 Purchase Agreement or the A319
Agreement or any Other Purchase Agreement.

 

(2)           The Buyer
or any of its Affiliates defaults on any payment of principal or interest on
any indebtedness or in the payment of any guarantee obligation to the Seller or
any of its Affiliates.

 

 

(3)           The Buyer
or any of its Affiliates defaults in its obligation to take delivery of an
aircraft under the A330 Purchase Agreement, the A319 Purchase Agreement or any
Other Purchase Agreement.

 

(4)           The Buyer
or any of its Affiliates defaults in any material respect in the observance or
performance of any other material covenant or undertaking contained in the A330
Purchase Agreement, the A319 Purchase Agreement or any Other Purchase
Agreement, and such default continues beyond the applicable grace period (if
any).

 

(5)           Any of the
A330 Purchase Agreement, the A319 Purchase Agreement or any Other Purchase
Agreement shall have been terminated pursuant to the provisions thereof or for
any other reason or the Buyer or any of its Affiliates shall be in material
default of any of their respective obligations thereunder.

 

(c)           A
material default by the Buyer or any of its Affiliates shall have occurred and
be continuing under any Airbus Financing, any other financings, leases or
subleases entered into between the Seller or any of its affiliates and the
Buyer or any of its affiliates, or under any Airbus Purchase Agreement.

 

D.            GENERAL

 

1.             Assignment

 

Notwithstanding any other provision of this Letter
Agreement or of the A330 Purchase Agreement, this Letter Agreement and the
rights and obligations of the Buyer and the Seller hereunder (excluding, for
the avoidance of doubt, for the purposes of this Paragraph the rights and
obligations under an A330 Financing that has already been closed) will not be
assigned or transferred or mortgaged or pledged in any manner without the prior
written consent of the other party hereunder, and any attempted assignment or
transfer in contravention of the provisions of this Paragraph will be void and
of no force and effect.

 

2.             Miscellaneous
Provisions

 

(a)           Notices

 

All notices and requests required or authorized
hereunder shall be given in writing either by personal delivery to a
responsible officer of the party to whom the same is given or by commercial
courier or mail or by electronic transmission to the addresses set forth below.
The date upon which any such notice or request is so personally delivered or
delivered by commercial courier or mail, or if such notice or request is given
by electronic transmission, the date upon which sent, shall be deemed to be the
effective date of such notice or request.

 

 

The Seller shall be
addressed at:

 

2, rond-point
Maurice Bellonte

31700 Blagnac, France

Attention:  Director – Contracts

Telephone:  (33) 5 61 30 40 12

Fax:  (33) 5 61 30 40 11

 

And the Buyer shall be
addressed at:

 

2700 Lone Oak
Parkway

Eagan, Minnesota  55121, USA

Attention:  Senior Vice President Finance
& Treasurer

Telephone:  (1) 612 726 2274

Fax:  (1) 612 726 2221

 

or at such other address or to such other address or
to such other person as the party receiving the notice or request may designate
from time to time.

 

(b)           Waiver

 

The failure of either party to enforce at any time any
of the provisions of this Letter Agreement, or to exercise any right herein
provided, or to require at any time performance by any other party of any of
the provisions hereof, will in no way be construed to be a present or future
waiver of such provisions nor in any way to affect the validity of this Letter
Agreement or any part hereof or the right of the other party thereafter to
enforce each and every provision. The express waiver by either party of any
provision, condition or requirement of this Letter Agreement shall not
constitute a waiver of any future obligation to comply with such provision,
condition or requirement.

 

(c)           Interpretation
and Law

 

THIS LETTER AGREEMENT AND ANY DOCUMENTS PERTAINING
TO ANY OF THE FINANCING PROVIDED HEREUNDER WILL BE GOVERNED BY AND CONSTRUED,
AND THE PERFORMANCE THEREOF WILL BE DETERMINED, IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE IN SUCH STATE BY RESIDENTS
THEREOF AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE. Each of the Seller
and the Buyer (i) hereby irrevocably submits itself to the non-exclusive
jurisdiction of the courts of the State of New York, New York County, of the
United States, and to the non-exclusive jurisdiction of the United States
District Court for the Southern District of New York, for

 

 

the purposes of any suit, action or other proceeding
arising out of this Letter Agreement, the subject matter hereof or any of the
transactions contemplated hereby brought by any party or parties hereto, except
that during the pendency of the Case the Court shall have exclusive
jurisdiction with respect thereto, and (ii) hereby waives, and agrees not
to assert, by way of motion, as a defense, or otherwise, in any such suit,
action or proceeding, to the extent permitted by applicable law, any defense
based on sovereign or other immunity or that any suit, action or proceeding is
brought in an inconvenient forum, that the venue of such suit, action or
proceeding is improper, or that this Letter Agreement or the subject matter
hereof or any of the transactions contemplated hereby may not be enforced in or
by such courts.

 

(d)           Confidentiality

 

Subject to any legal or governmental requirements of
disclosure, and except for disclosure to legal counsel, credit rating agencies
and lead lenders to the parties on an as-needed basis, the parties (which for
this purpose shall include their board of directors, employees, agents and
advisers (including financial advisers)) shall maintain the terms and
conditions of this Letter Agreement strictly confidential. Without limiting the
generality of the foregoing, the Buyer and the Seller will limit the disclosure
of the contents of this Letter Agreement, to the extent legally permissible, in
any filing required to be made with any governmental agency and shall make such
applications as shall be necessary to implement the foregoing. The Buyer and
the Seller shall consult with each other prior to the making of any public
disclosure or filing, otherwise permitted hereunder, of this Letter Agreement
or the terms and conditions hereof. In the event that the Buyer receives any
other disclosure request from any government or any branch, agency or
instrumentality thereof or any government-related entity, which the Buyer
believes would be advisable to satisfy in whole or in part, the Buyer and the
Seller will consult and the Seller will not unreasonably withhold its consent
to such disclosure. The provisions of this Paragraph shall survive any
termination of this Letter Agreement.

 

(e)           Severability

 

In the event that any provision of this Letter
Agreement should for any reason be held to be without effect, the remainder of
this Letter Agreement shall remain in full force and effect. To the extent
permitted by applicable law, each party hereto hereby waives any provision of
law which renders any provision of this Letter Agreement prohibited or
unenforceable in any respect.

 

 

(f)            Alterations
to Contract

 

This Letter Agreement contains the entire agreement
between the parties with respect to the subject matter hereof and supersedes
any previous understanding, commitments or representations whatsoever, oral or
written.

 

(g)           Language

 

All correspondence, documents and any other written
matters in connection with this Letter Agreement shall be in English.

 

(h)           Headings

 

All headings in this Letter Agreement are for
convenience of reference only and do not constitute a part of this Letter
Agreement.

 

(i)            Counterparts

 

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

 

 

If the
foregoing correctly sets forth your understanding, please execute the original
and one (1) copy hereof in the space provided below and return a copy to AVSA.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVSA S.A.R.L.

  
	
   

  	
  By: 

  	
        /s/ Marie-Pierre Merle Beral

  	
   

  
	
   

  	
   

  	
  Marie-Pierre Merle Beral

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
  Northwest Airlines, Inc.

  	
   

  
	
  By:

  	
        /s/
  Daniel B. Matthews

  	
   

  
	
   

  	
  Daniel B. Matthews

  
	
   

  	
  Senior Vice President & Treasurer

  
						

 

 

Exhibit 1

 

The Buyer shall have complied with each of the
following conditions on or prior to the ***th day following the Consummation
Date:

 

(i)      The
Buyer and its Affiliates shall have obtained concessions from their labor force
(including management), which, in the case of agreements with unionized
employees, will expire not earlier than ***, and which may take the form of,
among other things, wage reductions or benefit reductions, reasonably valued by
the Buyer’s Chief Financial Officer or Treasurer in an annualized amount of not
less than $*** and the Buyer shall have delivered, or caused to be delivered,
to the Lender a copy of a certificate of the Buyer’s Chief Financial Officer or
Treasurer with respect to such valuation;

 

(ii)     the
Buyer shall have not less than $*** in Unrestricted Cash as defined in
Paragraph B (vii); and

 

(iii)    the
Buyer shall have obtained (A) a corporate credit rating of at least “***”
by Standard & Poor’s Ratings Services or a corporate family rating of at
least “***” by Moody’s Investors Services, Inc. (or equivalent rating by
any nationally recognized statistical rating agency) or (B) new equity
investments of at least $*** after December 7, 2005.

 

 

Exhibit
2

 

Sublease [1992
Trust NW-A], dated as of January 1, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 262 and FAA
registration number N321US.

 

Sublease [1992
Trust NW-B], dated as of January 5, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 263 and FAA
registration number N322US.

 

Sublease [1992
Trust NW-C], dated as of February 1, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 272 and FAA
registration number N323US.

 

Sublease [1992
Trust NW-D], dated as of February 5, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 273 and FAA
registration number N324US.

 

Sublease [1992
Trust NW-E], dated as of March 2, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 281 and FAA
registration number N325US.

 

Sublease [1992
Trust NW-F], dated as of March 4, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 282 and FAA
registration number N326US.

 

Sublease [1992
Trust NW-G], dated as of April 1, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 297 and FAA
registration number N327NW.

 

Sublease [1992
Trust NW-H], dated as of April 6, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 298 and FAA
registration number N328NW.

 

Sublease [1992
Trust NW-I], dated as of May 5, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 306 and FAA
registration number N329NW.

 

 

Sublease [1992
Trust NW-J], dated as of May 7, 1992, between Airbus Leasing IV,
Inc., (formerly A.I. Leasing IV, Inc.) and Northwest Airlines, Inc., as
amended and supplemented from time to time, with respect to one
Airbus A320 aircraft bearing airframe serial number 307 and FAA
registration number N330NW.

 

 

Exhibit
3

 

CONSENT
AND GUARANTY

 

Airbus
SAS hereby acknowledges notice of and consents to all of the terms of the [name
of credit agreement the “Credit
Agreement”) between [name of AVSA affiliate] (the “Lender”) and Northwest
Airlines, Inc. (“Northwest”)
in respect of the financing of one (1) A330 aircraft and unconditionally
guarantees upon first written demand the due and punctual performance by the
Lender of the Lender’s obligation to disburse the Loan subject to all of the
terms and conditions specified in the Credit Agreement. Airbus SAS hereby agrees
that its obligations hereunder are unconditional and absolute and, without
limiting the generality of the foregoing, shall not be released, discharged or
otherwise affected by any modification or amendment of or supplement to the
Credit Agreement (other than release, discharge or waiver of this Consent and
Guaranty) provided, however, that the obligations of Airbus SAS under this
Consent and Guaranty shall terminate and be of no further force and effect on
the earlier to occur of (i) the date on which the Lender transfers or
assigns its rights and obligations under the Credit Agreement to any Person
that is not an Affiliate of AVSA S.A.R.L. and (ii) the date on which the
Lender disburses the Loan in accordance with the Credit Agreement. Airbus SAS
agrees that it will execute and deliver such other and further instruments as
may be reasonably requested by Northwest, its successors or assigns to reaffirm
its obligations hereunder.

 

Capitalized
terms used herein and not otherwise defined herein shall have the meanings
ascribed thereto in the Credit Agreement.

 

IN
WITNESS WHEREOF, the undersigned has caused this Consent and Guaranty to be
executed and delivered as of the day first above written.

 

 

	
   

  	
  AIRBUS S.A.S.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:Exhibit 10.4

 

CREDIT
AGREEMENT

 

Dated as of
January 24, 2006

 

Among

 

NORTHWEST
AIRLINES, INC.,

 

as Borrower,

 

THE LENDERS
PARTY HERETO

 

and

 

AIRBUS
FINANCIAL SERVICES,

 

as
Administrative Agent

 

in respect of
one

 

Airbus
A330-223 Aircraft

 

Manufacturer’s
Serial Number 0718

 

FAA
Registration No. N858NW

 

 

TABLE OF
CONTENTS

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS

  	
  1

  
	
   

  	
   

  
	
  SECTION
  1.1.   Certain Defined Terms

  	
  1

  
	
   

  	
   

  
	
  SECTION
  1.2.   Terms Defined in Mortgage

  	
  13

  
	
   

  	
   

  
	
  SECTION
  1.3.   Computation of Time Periods

  	
  13

  
	
   

  	
   

  
	
  SECTION
  1.4.   Accounting Terms

  	
  13

  
	
   

  	
   

  
	
  ARTICLE II AMOUNT AND TERMS OF THE LOAN

  	
  13

  
	
   

  	
   

  
	
  SECTION
  2.1.   The Loan

  	
  13

  
	
   

  	
   

  
	
  SECTION
  2.2.   Making the Loan

  	
  13

  
	
   

  	
   

  
	
  SECTION
  2.3.   Fees

  	
  14

  
	
   

  	
   

  
	
  SECTION
  2.4.   [Intentionally Omitted]

  	
  14

  
	
   

  	
   

  
	
  SECTION
  2.5.   Repayment

  	
  14

  
	
   

  	
   

  
	
  SECTION
  2.6.  (a)   Interest

  	
  15

  
	
   

  	
   

  
	
  SECTION
  2.7.   Interest Rate and Period Determination

  	
  16

  
	
   

  	
   

  
	
  SECTION
  2.8.   Prepayments

  	
  16

  
	
   

  	
   

  
	
  SECTION
  2.9.   Increased Costs

  	
  17

  
	
   

  	
   

  
	
  SECTION
  2.10.   Illegality

  	
  17

  
	
   

  	
   

  
	
  SECTION
  2.11.   Payments and Computations

  	
  17

  
	
   

  	
   

  
	
  SECTION
  2.12.   Taxes

  	
  19

  
	
   

  	
   

  
	
  SECTION
  2.13.   Sharing of Payments, Etc

  	
  21

  
	
   

  	
   

  
	
  SECTION
  2.14.   Use of Proceeds

  	
  22

  
	
   

  	
   

  
	
  SECTION
  2.15.   Lender Cooperation

  	
  22

  
	
   

  	
   

  
	
  SECTION
  2.16.   Replacement of Lenders

  	
  22

  
	
   

  	
   

  
	
  SECTION
  2.17.   Airbus Lenders

  	
  22

  

 

i

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  SECTION
  2.18.   Funding Arrangements

  	
  22

  
	
   

  	
   

  
	
  ARTICLE III CONDITIONS TO MAKING THE LOAN

  	
  23

  
	
   

  	
   

  
	
  SECTION
  3.1.   Conditions Precedent to the Loan

  	
  23

  
	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES

  	
  27

  
	
   

  	
   

  
	
  SECTION
  4.1.   Representations and Warranties of the Borrower

  	
  27

  
	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE BORROWER

  	
  31

  
	
   

  	
   

  
	
  SECTION
  5.1.   Affirmative Covenants

  	
  31

  
	
   

  	
   

  
	
  SECTION
  5.2.   Compliance with Mortgage

  	
  33

  
	
   

  	
   

  
	
  SECTION
  5.3.   Maintenance of Office

  	
  33

  
	
   

  	
   

  
	
  SECTION 5.4.  
  Negative Covenants

  	
  33

  
	
   

  	
   

  
	
  ARTICLE VI EVENTS OF DEFAULT

  	
  33

  
	
   

  	
   

  
	
  SECTION
  6.1.   Events of Default

  	
  33

  
	
   

  	
   

  
	
  ARTICLE VII THE AGENTS

  	
  36

  
	
   

  	
   

  
	
  SECTION
  7.1.   Authorization and Action

  	
  36

  
	
   

  	
   

  
	
  SECTION
  7.2.   Each Agent’s Reliance, Etc

  	
  37

  
	
   

  	
   

  
	
  SECTION
  7.3.   The Agents and Their Affiliates

  	
  37

  
	
   

  	
   

  
	
  SECTION
  7.4.   Lender Credit Decision

  	
  38

  
	
   

  	
   

  
	
  SECTION
  7.5.   Indemnification

  	
  38

  
	
   

  	
   

  
	
  SECTION
  7.6.   Successor Agent

  	
  38

  
	
   

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
  39

  
	
   

  	
   

  
	
  SECTION
  8.1.   Amendments, Etc

  	
  39

  
	
   

  	
   

  
	
  SECTION
  8.2.   Notices, Etc

  	
  39

  
	
   

  	
   

  
	
  SECTION
  8.3.   No Waiver; Remedies

  	
  39

  
	
   

  	
   

  
	
  SECTION
  8.4.   Costs and Expenses

  	
  40

  
	
   

  	
   

  
	
  SECTION
  8.5.   Right of Setoff

  	
  41

  

 

ii

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  SECTION
  8.6.   Binding Effect

  	
  41

  
	
   

  	
   

  
	
  SECTION
  8.7.   Assignments and Participations

  	
  41

  
	
   

  	
   

  
	
  SECTION
  8.8.   Confidentiality

  	
  46

  
	
   

  	
   

  
	
  SECTION
  8.9.   Certain Agreements and Representations of Lenders

  	
  46

  
	
   

  	
   

  
	
  SECTION
  8.10.   GOVERNING LAW

  	
  47

  
	
   

  	
   

  
	
  SECTION
  8.11.   Execution in Counterparts

  	
  47

  
	
   

  	
   

  
	
  SECTION
  8.12.   Jurisdiction, Etc

  	
  47

  
	
   

  	
   

  
	
  SECTION
  8.13.   WAIVER OF JURY TRIAL

  	
  48

  
	
   

  	
   

  
	
  SECTION
  8.14.   Severability

  	
  48

  
	
   

  	
   

  
	
  SECTION
  8.15.   Headings

  	
  48

  
	
   

  	
   

  
	
  SECTION
  8.16.   Interpretation of Term Sheet

  	
  48

  
	
   

  	
   

  
	
  SECTION
  8.17.   Quiet Enjoyment

  	
  48

  
	
   

  	
   

  
	
  SECTION
  8.18.   Concerning Clause (i)(y) of Section 3.6(a)(I) of the
  Mortgage

  	
  49

  

 

iii

 

	
  Schedules

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule I

  	
  -

  	
   

  	
  List of
  Lending Offices

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule II

  	
  -

  	
   

  	
  Approved
  Commercial Banks

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule III

  	
  -

  	
   

  	
  Principal
  Payment Schedule

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule IV

  	
  -

  	
   

  	
  Approved
  Countries for Re-registration

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule V

  	
  -

  	
   

  	
  AL Subleases

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
   

  	
  Form of
  Promissory Note

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
   

  	
  Form of
  Notice of Loan

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
   

  	
  Form of
  Assignment and Acceptance

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D-1

  	
  -

  	
   

  	
  Form of Opinion
  of Associate General Counsel of the Borrower

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D-2

  	
  -

  	
   

  	
  Form of
  Opinion of Cadwalader, Wickersham & Taft LLP, Special Counsel for the
  Borrower

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D-3

  	
  -

  	
   

  	
  Form of
  Opinion of Daugherty, Fowler, Peregrin, Haught & Jenson, Special Aviation
  Counsel for the Agent

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
   

  	
  Form of
  Confidentiality Agreement

  

 

iv

 

CREDIT
AGREEMENT

 

Dated as of
January 24, 2006

 

NORTHWEST AIRLINES, INC., a Minnesota
corporation (the “Borrower”), the lender or lenders
party to this Agreement from time to time (each, a “Lender”)
and AIRBUS FINANCIAL SERVICES, an Irish limited liability company formerly
known as Airbus Industrie Financial Services (“AFS”),
as Administrative Agent (as hereinafter defined) for the Lenders hereunder
agree as follows:

 

WHEREAS, the Borrower and AVSA, S.A.R.L., a
société à responsabilité limitée organized and existing under the laws of the
Republic of France (together with its successors, “AVSA”),
have entered into the Airbus A330 Purchase Agreement, which covers, among other
matters, the sale by AVSA and the purchase by the Borrower of certain Airbus
A330 aircraft;

 

WHEREAS, the Borrower and AVSA have agreed
pursuant to the A330 Financing Letter Agreement, dated as of the date hereof
(the “Letter Agreement”), to certain
additional terms and conditions regarding the financing of the Airbus A330
Aircraft to be delivered under the Airbus A330 Purchase Agreement, including
the responsibility of AVSA to arrange specified financing alternatives for up
to ten of the Airbus A330 Aircraft to be delivered under the Airbus A330
Purchase Agreement, including the Aircraft;

 

WHEREAS, on September 14, 2005 (the “Petition Date”), the Borrower and certain of its Affiliates
commenced Chapter 11 cases by filing voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code in the Bankruptcy Court, Chapter 11 Case No.
05-17930 (ALG) (the “Case”);

 

WHEREAS, on the basis of the foregoing and
subject to the terms and conditions of this Agreement, the Initial Lender is
prepared to make the Loan in the amount of the Financed Amount for the
Aircraft;

 

NOW THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto in such capacity agree as
follows:

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

SECTION
1.1.   Certain Defined Terms.  As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

 

“Administrative Agent” means AFS or such other agents as may
from time to time become party hereto in such capacity pursuant to Section 7.6.

 

“Affiliate” means, as to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under common control
with such Person or is a director or officer of such Person. For purposes of
this definition, the term “control” (including the

 

 

terms “controlling,”
“controlled by” and “under common control with”) of a Person means the
possession, direct or indirect, of the power to vote 5% or more of the Voting
Stock of such Person or to direct or cause the direction of the management and
policies of such Person, whether through the ownership of Voting Stock, by
contract or otherwise.

 

“AFS” has the meaning given to it in the preamble hereto.

 

“AFS Term Loan” means the financing pursuant to the Amended
and Restated Loan Agreement, dated as of March 29, 1996, between the Borrower
and AFS, as amended or otherwise modified from time to time (the “AFS Term Loan Agreement”), and the Other Financing Documents
related to such financing.

 

CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

“Agent” or “Agents” means,
individually or collectively, as the case may be, the Administrative Agent and
the Collateral Agent under (and as defined in) the Mortgage.

 

“Airbus” means Airbus S.A.S., a société par actions
simplifiée organized and existing under the laws of the Republic of France (or
any person or any entity that succeeds to substantially all of the business and
operations thereof).

 

“Airbus A319 Aircraft” means an Airbus model A319-114
aircraft to be delivered, or delivered, as the context may require, pursuant to
the Airbus A319 Purchase Agreement.

 

“Airbus A319 Purchase Agreement” means that certain Airbus
A319-100 Purchase Agreement dated as of September 19, 1997, together with all
exhibits and letter agreements relating thereto, between AVSA and the Borrower
as originally executed and as modified, amended or supplemented in accordance
with the terms thereof.

 

“Airbus A330 Aircraft” means an Airbus model A330-223 or
A330-323 aircraft to be delivered, or delivered, as the context may require,
pursuant to the Airbus A330 Purchase Agreement.

 

“Airbus A330 Purchase Agreement” means that certain Airbus
A330 Purchase Agreement dated as of December 21, 2000, together with all
exhibits and letter agreements relating thereto, between AVSA and the Borrower
as originally executed and as modified, amended or supplemented in accordance
with the terms thereof.

 

“Airbus Documentation” means the Loan Documents, the Airbus
Purchase Agreements and the Other Financing Documents and
any amendment of or supplement to any of the foregoing and any other
document, instrument or agreement entered into by the Borrower or any of
its Affiliates with Airbus or any of its Affiliates pursuant to the Term
Sheet.

 

“Airbus Finance Company Limited” means Airbus Finance Company
Limited, an Irish limited liability company.

 

2

 

“Airbus Financings” means the 2005 A319 Financings, the 2005
A330 Financings, the Committed A330 Financings, the AL Subleases and the AFS
Term LoanCONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

“Airbus Leasing IV” means Airbus Leasing IV, Inc., a Delaware
corporation formerly known as A.I. Leasing IV, Inc.

 

“Airbus Lender” means Airbus, AFS, Airbus Finance Company
Limited, Airbus Leasing IV or any of their Affiliates.

 

“Airbus North America” means Airbus North America Customer
Service, Inc., a Delaware corporation.

 

“Airbus Purchase Agreements” means the Airbus A319 Purchase
Agreement and the Airbus A330 Purchase Agreement.

 

“Aircraft” means the Airframe (or any Replacement Airframe),
together with the two Engines delivered in connection therewith or any
Replacement Engines substituted for any of said Engines, whether or not any of
such initial or substitute Engines may from time to time be installed on the
Airframe or may be installed on any other airframe or any other aircraft.

 

“Airframe” means (A) the Airbus A330 Aircraft (excluding the
Engines or engines from time to time installed thereon) identified in the
Mortgage and (B) any and all Parts (other than Engines or engines) so long as
the same shall be incorporated or installed in or attached to such Airframe.

 

“AL Subleases” means the ten (10) A320-200 sublease
agreements between the Borrower as sublessee and Airbus Leasing IV, as
sublessor, as described in Schedule V hereto.

 

“Alternate Rate” has the meaning given to it in Section
2.7(b).

 

“Applicable Date” has the meaning given to it in Section
2.12(b)(1).

 

“Applicable Margin” means (a) during the pendency of the Case
and prior to the Consummation Date, CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT% per annum, and (b) on and after the Consummation Date,
the lesser of (i) the NWA Market Margin, determined as of the Consummation
Date, and (ii) CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT % per annum, in each case reduced (x) by CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT % per annum, if the Borrower
satisfies all of the Post-Consummation Conditions by the end of the CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A 

 

3

 

REQUEST FOR
CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT) day period after the Consummation Date, such reduction to be
effective on the Interest Payment Date immediately following the satisfaction
of the Post-Consummation Conditions, and (y) by CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT% per annum, if CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT, such reduction to be effective on the
Consummation Date. For the avoidance of doubt, the reductions described in
sub-clauses (x) and (y) of clause (b)(ii) of the preceding sentence may be
cumulative and are not mutually exclusive.

 

“Applicable Rate” means, for any Interest Period, the highest
of (x) the sum of the Eurodollar Rate for such Interest Period
plus the Applicable Margin in effect from time to time during such
Interest Period, (y) until the occurrence of an Initial Lender Sell-Down, the
Initial Lender’s cost of funds for a loan transaction of the same principal
amount with the same tenor and on the same terms and with the same collateral
security as the Loan (as certified in writing by the Initial Lender for such
Interest Period) plus CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT% per annum and (z) the Eurodollar Rate for such Interest Period plus
CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT % per
annum.

 

“Assignment and Acceptance” means an assignment and
acceptance entered into by a Lender and an Eligible Assignee, and accepted by
the Administrative Agent, in substantially the form of Exhibit VIII hereto.

 

“Avion” means Avion Capital Limited, an Irish company.

 

“AVSA” has the meaning given to it in the recitals hereto.

 

CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

 

“Bankruptcy Code” means Title 11 of the United States Code,
as amended, or any subsequent legislation that amends, supplements or
supersedes such provisions.

 

“Bankruptcy Court” means the United States Bankruptcy Court,
Southern District of New York.

 

“Base Rate” means a fluctuating interest rate per annum in
effect from time to time, which rate per annum shall at all times be equal to
(a) the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published for such day (or, if such day is not a Business
Day, for the preceding Business Day) by the Federal Reserve Bank of New York,
or if such rate is not so published for any day that is a Business Day, the

 

4

 

average of the
quotations for such day for such transactions received by the Agent from three
Federal funds brokers of recognized standing selected by it.

 

 “BFE” means all
buyer furnished equipment, if any, installed or loaded on the Aircraft on the
date of its purchase and financing hereunder.

 

“BFE Cost” means the total cost invoiced to the Borrower for
the BFE as such cost is certified to the Administrative Agent pursuant to
Section 3.1(f).

 

“Borrower” has the meaning given to it in the preamble
hereto.

 

“Business Day” means (i) for all purposes other than as
covered by clause (ii) below, any day except Saturday, Sunday and any day which
shall be in New York, New York, Dublin, Ireland or Minneapolis, Minnesota a
legal holiday or a day on which banking institutions are authorized or required
by law or other government action to close and (ii) with respect to all notices and
determinations in connection with, and payments of principal and interest on,
the Loan if it bears interest based upon the Eurodollar Rate, any day which is
a Business Day described in clause (i) above and which is also a day for
trading by and between banks in the interbank Eurodollar market.

 

“Business Plan” means the business plan of the Borrower, as
presented to Airbus during December, 2005, in the binder entitled Business
Restructuring Plan – Bank Meeting, together with the Long Range Planning Model
(Summary Version) 2005, each dated November 1, 2005, covering a period through
to at least December 31, 2010.

 

“Case” has the meaning given to it in the recital hereto.

 

“Cash Equivalents” means cash and items classified as cash
equivalents for purposes of GAAP.

 

“Certificated Air Carrier” means a Citizen of the United
States holding a carrier operating certificate issued by the Secretary of
Transportation pursuant to Chapter 447 of Title 49, United States Code, for
aircraft capable of carrying ten or more individuals or 6,000 pounds or more of
cargo.

 

“Change in Law” has the meaning given to it in Section
2.12(b)(1).

 

“Citizen of the United States” has the meaning given to it in
Section 40102(a)(15) of Title 49 of the United States Code.

 

“Claim” has the meaning ascribed to such
term in Section 101(5) of the Bankruptcy Code.

 

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

 

“Collateral” has the meaning given to it in the Mortgage.

 

5

 

“Committed A330 Financings” means the financings of up to ten
Airbus A330 Aircraft described in the Letter Agreement on the terms and
conditions described therein, including the financing of the Aircraft contemplated
by this Agreement.

 

“Confidential Information” means any information that the
Borrower furnishes to the Agent or any Lender in writing designated as
confidential, but does not include any such information (i) that is or becomes
generally available to the public or (ii) that is or becomes available to the
Agent or such Lender from a source other than the Borrower, unless the Agent or
Lender has the actual knowledge (without being obligated to conduct any
investigation) that such information has been made available by such source in
breach of a confidentiality agreement which such source is bound by with
respect to such information.

 

“Consummation Date” means the date of substantial
consummation (as defined in 11 U.S.C. §1101) of a Plan of Reorganization in the
Case, but not later than the effective date of such a plan that is confirmed by
the Court.

 

“Consolidated” refers to the consolidation of accounts in
accordance with GAAP.

 

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

 

“Eligible Assignee” has the meaning given to it Section
8.7(a).

 

“Engine” means (A) each of the two Pratt & Whitney model
PW4168A engines installed on the Aircraft at the time of delivery to the
Borrower of the Aircraft, as further specified in the Mortgage, whether or not
from time to time installed on the Aircraft or installed on any other aircraft
and (B) any Replacement Engine that may from time to time be substituted for
such engine; together, in each case, with any and all Parts incorporated or
installed in or attached thereto.

 

“Engine Manufacturer” means Pratt & Whitney.

 

“Engine Manufacturer Financing Commitment” means the
commitment by the Engine Manufacturer to finance the Airbus A330 Aircraft to be
delivered in CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT.

 

“Engine Manufacturer Financings” means any existing or future
lease, loan, trade receivable, or other extension of credit between the Engine
Manufacturer or any of its Affiliates, on the one hand, and the Borrower or any
of its Affiliates, on the other hand, whether such lease, loan, trade
receivable, or other extension of credit is direct or is indirect through a
lease, structured financing or otherwise, including, without limitation, the
financings of the Airbus A330 Aircraft pursuant to the Engine Manufacturer
Financing Commitment.

 

6

 

“ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder.

 

“Eurodollar Rate” means, with respect to the Loan for any
Interest Period, the rate per annum (rounded to the nearest 1/100 of 1%) equal
to the British Bankers’ Association quotation that appears on Page 3750 of the
Telerate screen (or otherwise on such screen or on such other screen, page or
service as may replace the Telerate screen) as of 11:00 A.M., London time, two
Business Days prior to the beginning of the applicable Interest Period as the
rate for dollar deposits to be delivered on the first day of such Interest
Period and maintained for such Interest Period. In the event that such rate
does not so appear on the Telerate Screen (or otherwise as aforesaid), the “Eurodollar Rate” for purposes of this definition shall be
the arithmetic average (rounded to the nearest 1/100 of 1%) of the offered
quotation to first-class banks in the interbank Eurodollar market by each
Reference Bank in London for dollar deposits with maturities comparable to the
applicable Interest Period determined as of 11:00 A.M. (London time) on the
date which is two Business Days prior to the commencement of such Interest
Period. If any one or more of the Reference Banks shall not furnish such timely
information to the Administrative Agent for the purpose of determining any such
interest rate, the Administrative Agent shall determine such interest rate on
the basis of timely information furnished by the remaining Reference Bank or
Reference Banks.

 

“Event of Default” has the meaning given to it in Section
6.1.

 

“FAA” means the United States Federal Aviation
Administration, and any agency or instrumentality of the United States
government succeeding to its functions.

 

“Final Order” shall mean the Order
Authorizing Debtor Northwest Airlines, Inc. to (I) Obtain Postpetition
Financing and Grant Security Interests and Liens With Respect Thereto, (II)
Assume Certain Amended Sublease and Purchase Agreements, (III) Use Cash
Collateral to Purchase and Lease Aircraft, (IV) Implement All Other Aspects of
Term Sheet and (V) File Agreements Under Seal, entered by the Bankruptcy Court
on December 22, 2005.

 

“Financed Amount” means $ CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT.

 

“Funding Date” has the meaning given to it in Section 2.2.

 

 “GAAP” has the
meaning given to it in Section 1.4.

 

“Governmental Authority” means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

 

“Indemnified Party” has the meaning given to it in Section
8.4(b).

 

7

 

“Initial Lender” means AFS, as the initial lender under this
Agreement.

 

“Initial Lender Sell-Down” has the meaning given to it in
Section 8.7(j).

 

“Interest Payment Date” means the twenty-fourth (24th) day of
each calendar month or, if such day is not a Business Day, the next succeeding
Business Day after such twenty-fourth (24th) day.

 

“Interest Period” means (a) in the case of the Interest
Period beginning on the Funding Date, the period of one month commencing on the
Funding Date and ending on (but excluding) the first Interest Payment Date
after the Funding Date, (b) in the case of each succeeding Interest Period
(other the Interest Period described in clause (c) of this definition), the
period commencing on the Interest Payment Date at the beginning of each
Interest Period and ending on (but excluding) the next succeeding Interest
Payment Date, and (c) in the case of the Interest Period that includes the
final Principal Payment Date, the period beginning on the Interest Payment Date
at the beginning of such Interest Period and ending on (but excluding) such
final Principal Payment Date.

 

“Lenders” has the meaning given to it in the preamble hereto.

 

“Lending Offices” means with respect to any Lender, the
office of such Lender specified opposite its name on Schedule I hereto or in
the Assignment and Acceptance pursuant to which it became a Lender, or such
other office of such Lender as such Lender may from time to time specify to the
Borrower and the Administrative Agent.

 

“Letter Agreement” has the meaning given to it in the
recitals hereto.

 

“Letter Agreement Aircraft” means the “Aircraft” that are
specified in the Letter Agreement as being eligible for financing with an “A330
Financing,” each as defined in the Letter Agreement.

 

“Lien” means any lien (statutory or otherwise), security
interest or other charge or encumbrance of any kind, or any other type of
preferential arrangement, including, without limitation, the lien or retained
security title of a conditional vendor and any easement, right of way or other
encumbrance on title to real property.

 

“Liquid Assets” means Cash Equivalents and short term
investments that may be classified, in accordance with GAAP, as unrestricted on
the Consolidated balance sheet of the Borrower

 

“Loan” means the Loan made pursuant to this Agreement.

 

“Loan Documents” means this Agreement, the Notes, the
Mortgage and any other agreement or instrument entered into or delivered by the
Borrower pursuant to any of the foregoing.

 

“Manufacturer” means Airbus.

 

8

 

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

 

“Mortgage” means the Mortgage and Security Agreement dated as
of January 24, 2006, between the Borrower and the Collateral Agent named
therein, as supplemented, modified or amended from time to time.

 

“NAC” means Northwest Airlines Corporation, a Delaware
corporation.

 

“Note” means a promissory note of the Borrower payable to the
order of a Lender, in substantially the form of Exhibit A hereto, evidencing
the indebtedness of the Borrower to such Lender resulting from the Loan.

 

“Notice of Loan” has the meaning given to it in Section 2.2.

 

“NWA Market Margin” means the margin over the Eurodollar Rate
at which the Borrower could borrow in a bank loan transaction of the same
principal amount with the same tenor and on the same terms and with the same
collateral security as the Loan, determined pursuant to Section 2.6(b) hereof.

 

“Obligations” means the Borrower’s obligation to make the due
and punctual payment of (i) the principal and interest from time to time due on
the Notes (including interest at the rate specified herein after the occurrence
of an Event of Default), (ii) all sums payable by the Borrower under the
Mortgage and (iii) all other sums payable by the Borrower to the Lenders under
Sections 2.9, 2.12, 2.17, 2.18 and 8.4 of, or elsewhere under, this Agreement
and the other Loan Documents.

 

“Officer’s Certificate” means, as to any company, a certificate
signed by the Chairman, the Vice Chairman, the President, any Executive Vice
President, any Director, any Senior Vice President, any Vice President, any
Assistant Vice President, the Treasurer or any Assistant Treasurer, the
Secretary, or any Assistant Secretary of such company.

 

“Overpaid Lender” has the meaning given to it in Section
2.13.

 

“Other Financing Documents” means, with respect to any Airbus
Financing, the agreements and instruments entered into by the Borrower in
connection with such Airbus Financing or, with respect to any Pooled Airbus
Financing, the agreements and instruments entered into by the Borrower in
connection with such Pooled Airbus Financing.

 

“Other Purchase Agreements” means any agreement for the
purchase of aircraft between the Borrower or any of its Affiliates and AVSA or
any of its Affiliates, other than the Airbus A319 Purchase Agreement and the
Airbus A330 Purchase Agreement.

 

“Other Taxes” means any and 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 from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.

 

9

 

“Parts” means any and all appliances, parts, instruments,
appurtenances, accessories, furnishings, seats, buyer furnished equipment, and
other equipment of whatever nature (other than (a) complete Engines or engines,
(b) any items leased by the Borrower from a third party and (c) cargo
containers) which may from time to time be incorporated or installed in or
attached to the Airframe or either Engine.

 

“Person” means an individual, partnership, corporation, a
business trust, joint stock company, trust, unincorporated association, joint
venture, governmental authority or other entity of whatever nature.

 

“Petition
Date” has the meaning given to it in the recitals
hereto.

 

“Plan of
Reorganization” means a plan in the Case under chapter
11 of the Bankruptcy Code.

 

“Pooled Airbus Financing” means, at any time that any Person
or Persons other than an Airbus Lender hold more than 50% of the then
outstanding principal of the Notes, any Airbus Financing in which such Person
or Persons hold more than 50% of the then outstanding principal amount of such
Airbus Financing or all of the leasehold of any such Airbus Financing that is
an AL Sublease, provided that such Person or
Persons acquired its or their interest in the Notes and in such Airbus
Financing in the same Pooled Sell-Down.

 

“Pooled
Sell-Down” means the acquisition, from one or more
Airbus Lenders, in one or more transactions, or from a single Pooled Sell-Down
Lender, in a single transaction or in a series of related transactions, of more
than 50% of the then outstanding principal amount of the Notes and more than
50% of the then outstanding principal amount of one or more Airbus Financings
(other than Airbus Financings that are AL Subleases) and/or all of the
leasehold interests in one or more Airbus Financings that are AL Subleases.

 

“Pooled
Sell-Down Lender” means a Person or Persons other than
an Airbus Lender that hold more than 50% of the then outstanding principal
amount of the Notes and one or more Pooled Airbus Financings (other than Pooled
Airbus Financings that are AL Subleases) and/or all of the leasehold interests
in one or more Pooled Airbus Financings that are AL Subleases.

 

“Post-Consummation Conditions”
means the following conditions:

 

(a) the
Borrower shall, not later than the end of the CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT) day period commencing on the Consummation Date,
have obtained concessions from its labor force (including management) which, in
the case of concessions from unionized employees shall not terminate earlier
than CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR

 

10

 

CONFIDENTIAL
TREATMENT, which with respect to all employees may take the form of, among
other things, wage reductions or benefit reductions, and which are reasonably
valued by the Chief Financial Officer or Treasurer of Borrower in an annualized
amount of not less than $CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT, evidenced by a certificate of the Chief Financial
Officer or Treasurer of the Borrower as to such valuation (which, if delivered
to any Affiliate of Airbus in connection with any Airbus Financing that is not
a Pooled Airbus Financing, shall be deemed to have been delivered in connection
herewith);

 

(b) the
Borrower shall have aggregate Liquid Assets in the amount of at least $
CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, as
evidenced on a Consolidated balance sheet filed with the Securities and
Exchange Commission prior to the end of such CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT) day period or as certified in writing by the Chief
Financial Officer or Treasurer of the Borrower, and

 

(c) the
Borrower shall (i) have a corporate credit rating of at least “CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT” issued by Standard
& Poor’s or “CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT” by Moody’s prior to the end of such CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT) day period or (ii) have received equity investments
of at least $CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT after December 7, 2005 and prior to the end of such CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) day period.

 

“Potential Competitor” has the meaning given to it in Section
8.7(a).

 

“Pratt & Whitney” means Pratt & Whitney, a division
of United Technologies Corporation, a Delaware corporation.

 

“Principal Payment Date” has the meaning given to it in
Section 2.5.

 

11

 

“Reference Banks” means CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT, CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT and CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT.

 

“Register” has the meaning given to it in Section 8.7(c).

 

“Required Lenders” means Lenders holding not less than
662⁄3% of the aggregate outstanding principal amount of the Loan.

 

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

 

“Subsidiary” of any Person means any corporation,
partnership, joint venture, limited liability company, trust or estate of which
(or in which) more than 50% of (a) the issued and outstanding capital stock
having ordinary voting power to elect a majority of the Board of Directors of
such corporation (irrespective of whether at the time capital stock of any
other class or classes of such corporation shall or might have voting power
upon the occurrence of any contingency), (b) the interest in the capital or
profits of such limited liability company, partnership or joint venture or (c)
the beneficial interest in such trust or estate is at the time directly or
indirectly owned or controlled by such Person, by such Person and one or more
of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries.

 

“Taxes” has the meaning given to it in Section 2.12.

 

“Term Sheet” means the NWA Restructuring Term Sheet, dated
December 7, 2005, among the Borrower, Airbus, AVSA, AFS, Airbus Leasing IV,
Airbus Finance Company Limited and Airbus North America.

 

“Transportation Code” means Title 49 of the United States
Code, comprising those provisions formerly referred to as the Federal Aviation
Act of 1958, as amended or any subsequent legislation that amends, supplements
or supersedes such provisions.

 

“2005 A319 Financings” means the financings of two A319
Airbus Aircraft pursuant to two Credit Agreements, each dated as of December 23,
2005, among Borrower, certain lenders and AFS, as Administrative Agent
thereunder.

 

“2005 A330 Financings” means the financings of two A330
Airbus Aircraft pursuant to two Credit Agreements, dated as of June 21, 2005
and September 12, 2005, respectively, among Borrower, certain lenders and
Airbus Finance Company Limited, as Administrative Agent thereunder.

 

12

 

“U.C.C.” means the Uniform Commercial Code as enacted in the
State of New York, except to the extent that such Uniform Commercial Code
provides that the Uniform Commercial Code of another state is applicable.

 

“United States Income Tax” has the meaning given to it in
Section 2.12(b)(1).

 

“Voting Stock” means capital stock issued by a corporation,
or equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the election
of directors (or persons performing similar functions) of such Person, even if
the right so to vote has been suspended by the happening of such a contingency.

 

SECTION
1.2.   Terms Defined in Mortgage. Terms for which meanings are
provided in any Mortgage are, unless otherwise defined herein, used in this
Agreement with such meanings.

 

SECTION
1.3.   Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to” and “until” each
mean to but excluding.”

 

SECTION
1.4.   Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles in the United States (“GAAP”)
consistent with those applied in the preparation of the financial statements
referred to in Section 4.1(a)(v).

 

ARTICLE II

AMOUNT AND TERMS OF THE LOAN

 

SECTION
2.1.   The Loan. The Initial Lender agrees, on the terms and
conditions hereinafter set forth, to make the Loan to the Borrower on a
Business Day in an amount equal to the Financed Amount.

 

SECTION
2.2.   Making the Loan. The Loan shall be made on notice,
given not later than 5:00 P.M. (New York time) on the fourth Business Day prior
to the proposed date of the Loan, by the Borrower to the Administrative Agent,
which shall give prompt notice thereof to the Initial Lender. Such notice of
the Loan (the “Notice of Loan”) shall be by
telephone, confirmed immediately in writing, or telecopier or telex, in
substantially the form of Exhibit B-1 hereto, specifying therein (i) the
requested date of the Loan (which shall not be a legal holiday in Toulouse,
France, Dublin, Ireland, or New York, New York), (ii) the aggregate amount of
the Loan, (iii) the date of delivery to the Borrower of the Aircraft to be
financed with the Loan, if other than the requested date of the Loan, and (iv)
identifying information for the Aircraft to be financed. The “Funding Date” of the Loan shall be the date on which the
Loan is made. The Initial Lender shall, before 11:00 A.M. (New York time) on
the date specified in the Notice of Loan, make available for the account of its
Lending Office to the Administrative Agent at the account of the Administrative
Agent at CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT and
ABA routing number CONFIDENTIAL MATERIAL OMITTED AND

 

13

 

FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT), in same day funds, the amount of the Loan, provided
that, if the Funding Date does not occur on such date, the Borrower shall
indemnify the Lender to the extent provided in Section 2.18, and provided, further, the
Funding Date shall not occur later than January 31, 2006. After the
Administrative Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent will
make such funds available to the Borrower by transfer to AVSA at such account
as AVSA may direct.

 

SECTION
2.3.   Fees. No commitment, arrangement or like fees shall be
payable by the Borrower in connection with this Agreement or any of the other
Loan Documents.

 

SECTION
2.4.   [Intentionally Omitted]

 

SECTION
2.5.   Repayment. The Borrower shall repay to the
Administrative Agent for the ratable account of each Lender the principal
amount of the Loan in consecutive quarterly installments of principal on the
Interest Payment Dates occurring in each April, July, October and January (each
such Interest Payment Date also being referred to as a “Principal
Payment Date”), commencing on the Principal Payment Date in CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT and ending with a
payment of all unpaid principal on the Principal Payment Date in CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, as set forth on
Schedule III, provided, that if the
Consummation Date occurs prior to the Principal Payment Date in CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, then notwithstanding
the scheduled principal payments in Schedule III for any Principal Payment
Dates after the CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT anniversary of the Consummation Date, the unpaid principal amount of
the Notes shall be due and payable in full on the first Principal Payment Date
after the CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT) anniversary of the Consummation Date, and provided,
further, that the amounts of the
quarterly installments of principal payable on each Principal Payment Date,
which are based on a mortgage style amortization of the initial principal
amount of the loan at an assumed interest rate of CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT % per annum over CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT) quarterly payments in arrears to an agreed
amount ending on the CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT) anniversary of the Funding Date, shall not be affected

 

14

 

by any change in the Applicable
Rate pursuant to the definition thereof or by the acceleration of the final
Principal Payment Date pursuant to the preceding proviso.

 

SECTION
2.6.   (a)  Interest. The Borrower shall pay
interest on the unpaid principal amount of the Loan from the Funding Date until
the Loan shall be paid in full, payable in arrears, on the last day of each
Interest Period (each such date, an “Interest Payment Date”),
at an interest rate per annum equal to the Applicable Rate, except as otherwise
provided in Section 2.6(b), 2.7(b) or 2.10. The Applicable Rate shall be
adjusted from time to time as provided in the definition thereof.

 

(b)  Applicable
Rate. The Borrower shall notify the Administrative Agent at least fifteen
(15) Business Days prior to the expected Consummation Date of (x) such expected
Consummation Date and (y) the bank that it has nominated from among the banks
listed in Schedule II for purposes of determining the NWA Market Margin. The
Administrative Agent shall notify the Borrower of the bank that it has
nominated for such purposes from among the banks listed in Schedule II not
later than the second (2nd) Business Day following its receipt of
the foregoing notice from the Borrower. If the two banks so nominated have not
reached agreement on the NWA Market Margin within five (5) Business Days after
the foregoing nomination by the Administrative Agent, the Borrower and the
Administrative Agent shall nominate a third bank from among the banks listed on
Schedule II to determine the NWA Market Margin, and the NWA Market Margin shall
be the average of the two closest rates for the NWA Market Margin selected from
among the rates specified by the three banks, in each case as calculated by the
Administrative Agent. If the NWA Market Margin has not been determined in
accordance with the preceding three sentences of this Section 2.6(b) by the
Consummation Date, the NWA Market Margin shall be deemed to be the percentage
specified in clause (b)(ii) of the definition of “Applicable Margin” until such
time as the NWA Market Margin has been determined as provided herein or as
otherwise agreed by the Borrower and the Administrative Agent. Upon (i)  receipt of the determination of the two banks
nominated by the Borrower and the Administrative Agent, (ii) the Administrative
Agent’s calculation of the applicable average of the rates of the three banks
or (iii) the agreement of the Borrower and the Administrative Agent as to the
NWA Market Margin, as applicable, the Administrative Agent shall provide to the
Borrower, the Lenders and the Collateral Agent a written notice containing the
NWA Market Margin, the Applicable Margin and the Applicable Rate, effective as
of the Consummation Date or, if the NWA Market Margin has not been determined
by the Consummation Date, effective as of the first Interest Payment Date after
the NWA Market Margin has been determined or agreed in accordance with this
Section 2.6(b). Such notice shall be conclusive and binding on the parties,
absent manifest error by the Administrative Agent in its preparation.

 

(c)  Default
Interest. Upon the occurrence and during the continuance of an Event of
Default under Section 6.1(a), the Borrower shall pay interest on (i) the
overdue portion of the unpaid principal amount of the Loan, payable in arrears
on the dates specified in paragraph (a) above at a rate per annum equal at all
times to CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT% per
annum above the rate per annum required to be paid on the Loan pursuant to
paragraph (a) above and (ii) to the fullest extent permitted by law, the amount
of any interest or other amount payable hereunder that is not paid when due,
from the date such amount shall be due until such amount shall be paid in full,
payable in arrears on the date such

 

15

 

amount shall be paid in full and on demand,
at a rate per annum equal at all times to CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT% per annum above the then applicable rate of
interest.

 

SECTION
2.7.   Interest Rate and Period Determination

 

(a)  The
interest rate for each Interest Period shall be established by the
Administrative Agent. The Administrative Agent shall give prompt notice to the
Borrower and the Lenders of the applicable interest rate determined by the
Administrative Agent from time to time and the rate, if any, furnished by each
Reference Bank and used by the Administrative Agent for the purpose of
determining the Eurodollar Rate.

 

(b)  In the event that, prior to the first day of
any Interest Period, the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrower) that, by
reason of circumstances affecting the market generally, adequate and reasonable
means do not exist for ascertaining the Eurodollar Rate for such Interest
Period, the Administrative Agent shall give telecopy or telephonic notice
thereof to the Borrower and the Lenders as soon as practicable thereafter. During
the next thirty days, the Borrower and the Administrative Agent shall negotiate
a mutually satisfactory interest rate to be substituted for the Eurodollar Rate.
If a substituted interest rate is agreed upon, it shall be effective from the
first day of the applicable Interest Period. If the Borrower and the
Administrative Agent fail to agree upon a substituted interest rate, then, so
long as an Airbus Lender holds any of the Notes, the applicable interest rate
for the Loan shall be equal to the Applicable Rate specified in clause (y) of the
definition thereof and, at any other time, the Base Rate will be substituted
for the Eurodollar Rate in the definition of Applicable Rate. The replacement
interest rate determined pursuant to this paragraph (b) shall herein be
referred to as the “Alternate Rate”.

 

(c)  The
Lenders agree to an Interest Period of a specified number of days to be agreed
with and at the request of the Borrower in the event the Borrower requests such
an accommodation in connection with a refinancing and prepayment of the Loan.

 

SECTION
2.8.   Prepayments . (a)  So long as no Event of
Default shall have occurred and be continuing, either on the date notice is
given pursuant to this Section 2.8(a) or the date of prepayment,  Borrower may, upon at least ten (10) Business
Days’ notice to the Administrative Agent stating the proposed date and
aggregate principal amount of the prepayment (unless the giving of ten Business
Days notice as aforesaid is not practicable, in which event the Borrower agrees
to give such shorter notice as is practicable but in any event not to be less
than three Business Days), and if such notice is given the Borrower shall
prepay the outstanding principal amount of the Loan in whole but not in part,
together with accrued interest to the date of such prepayment on the principal
amount prepaid; provided, however,
that, in the event of any such prepayment of the Loan while interest thereon is
based on the Eurodollar Rate, the Borrower shall be obligated to reimburse the
Lenders in respect thereof pursuant to Section 8.4(c). The Loan, if prepaid
pursuant to this Section 2.8, may not be re-borrowed.

 

(b)  If
an Event of Loss occurs with respect to the Aircraft and the Borrower elects
not to substitute another aircraft for the Aircraft in accordance with the Mortgage,
the Borrower shall prepay the outstanding principal amount of the Loan in
whole, together with accrued

 

16

 

interest to the date of such prepayment and all other Obligations then
due and payable; provided that
(x) the date of prepayment shall not be later than the earlier of the third
Business Day following receipt of insurance proceeds in respect of the Aircraft
(but in no event earlier than 30 days after the occurrence of such Event of
Loss) or the first Business Day following the 120th day after the occurrence of
such Event of Loss, (y) the date of such prepayment shall be notified by the
Borrower to the Administrative Agent at least two Business Days prior thereto
and (z) if interest on the Loan is based upon the Eurodollar Rate at the time
of such prepayment, the Borrower shall be obligated to reimburse the Lenders in
respect thereof pursuant to Section 8.4(c).

 

SECTION 2.9.  Increased Costs . If, due to
either (i) the introduction after the date of this Agreement of or any change
after the date of this Agreement in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force
of law) issued after the date of this Agreement, (1) there shall be any
increase in the cost to any Lender of agreeing to make or making, funding or
maintaining the Loan (excluding for purposes of this Section 2.9 any such
increased costs resulting from (x) Taxes or Other Taxes (as to which Section
2.12 shall govern) and (y) changes in the rate of taxation of overall net
income of such Lender or (2) any Lender determines that compliance with any law
or regulation or any guideline or request from any central bank or other
governmental authority (whether or not having the force of law) affects or
would affect the amount of capital required or expected to be maintained by
such Lender or any corporation controlling such Lender and that the amount of
such capital is increased by or based upon the existence of such Lender’s
commitment to lend hereunder and other commitments of this type, then the
Borrower shall from time to time, upon demand by such Lender (with a copy of
such demand to the Administrative Agent), pay to the Administrative Agent for
the account of such Lender additional amounts sufficient to compensate, in the
case of clause (1) above, such Lender for such increased cost or, in the case
of clause (2) above, such Lender or such corporation in the light of such
circumstances. A certificate as to the amount of such increased cost, submitted
to the Borrower and the Administrative Agent by such Lender, shall be conclusive
and binding for all purposes, absent manifest error.

 

SECTION
2.10.   Illegality. Notwithstanding any other provision
of this Agreement, if any Lender shall notify the Administrative Agent that the
introduction after the date of this Agreement of or any change after the date
of this Agreement in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it
is unlawful, for any Lender or its Lending Office to perform its obligations
hereunder to make, fund or maintain its portion of the Loan bearing interest
based upon the Eurodollar Rate as contemplated herein, then:  (i) such Lender shall notify the
Administrative Agent and the Borrower of the same (ii) such portion of the Loan
will convert into a Loan bearing interest at the Alternate Rate (as determined
pursuant to Section 2.7(b) except that only the Affected Lender shall be
involved), and (iii) the obligation of such Lender to make, fund and
maintain its portion of the Loan based upon the Eurodollar Rate shall be
suspended until the Administrative Agent shall notify the Borrower and the
Lenders that the circumstances causing such suspension no longer exist.

 

SECTION
2.11.   Payments and Computations. (a)  The
Borrower shall make each payment hereunder and under the Notes not later than
11:00 A.M. (New York time) on the

 

17

 

day when due in U.S. dollars to the
Administrative Agent at CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT, account name Airbus Financial Services, account number CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (or to such other account as
shall be designated by the Administrative Agent from time to time) in same day
funds. The Administrative Agent will promptly thereafter but in no event later
than 3:00 P.M. (New York time) on the date such funds are received by the
Administrative Agent from the Borrower cause to be distributed like funds
relating to the payment of principal or interest ratably (other than amounts
payable pursuant to Section 2.9, 2.12, 2.16, 2.17, 2.18 or 8.4(c) and amounts
reflecting different prevailing interest rates on the Loan) to the Lenders for
the account of their respective Lending Offices, and like funds relating to the
payment of any other amount payable to any Lender to such Lender for the
account of its Lending Office, in each case to be applied in accordance with
the terms of this Agreement. Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 8.7(d), from and after the effective date specified in such
Assignment and Acceptance, the Administrative Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to
the Lender assignee thereunder, and the parties to such Assignment and
Acceptance shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

 

(b)  The Borrower hereby authorizes each Lender
(other than an Airbus Lender), if and to the extent payment owed to such Lender
is not made when due hereunder or under any Note held by such Lender, to charge
from time to time against any or all of the Borrower’s accounts with such
Lender any amount so due.

 

(c)  All computations of interest based on the
Eurodollar Rate or the Alternate Rate shall be made by the Administrative Agent
on the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the Interest
Period for which such interest is payable. Each determination by the
Administrative Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.

 

(d)  Whenever any payment hereunder or under the
Notes shall be stated to be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension
of time shall in such case be included in the computation of payment of
interest; provided, however, that, if such extension would cause
payment of interest on or principal of the Loan to be made in the next
following calendar month, such payment shall be made on the immediately
preceding Business Day.

 

(e)  Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Lenders hereunder that the Borrower will not make such payment in full,
the Administrative Agent may assume that the Borrower has made such payment in
full to the Administrative Agent on such date and the Administrative Agent may,
in reliance upon such assumption, cause to be distributed to each Lender on
such due date an amount equal to the amount then due to such Lender. If and to
the extent the Borrower shall not have so made such payment in full to the Administrative
Agent, each such Lender shall

 

18

 

repay to the Administrative
Agent forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at the Eurodollar Rate or the Alternate Rate as the case may be.

 

SECTION
2.12.   Taxes. (a)  All payments made by the
Borrower under this Agreement and the Notes shall be made free and clear of,
and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority or any political subdivision
or taxing authority thereof or therein (all such taxes, levies, imposts,
duties, charges, fees, deductions and withholdings being hereinafter called “Taxes”). If any Taxes are required to be
withheld from any amounts payable to the Agent or any Lender hereunder or under
the Notes, the amounts so payable to the Agent or such Lender shall be
increased to the extent necessary to yield to the Agent or such Lender (after
payment of all Taxes) interest or any such other amounts payable hereunder at
the rates or in the amounts specified in this Agreement and the Notes. In
addition, the Borrower shall pay any Other Taxes to the appropriate taxing
authority in accordance with applicable law. Whenever any Taxes or Other Taxes
are payable by the Borrower, as promptly as possible thereafter the Borrower
shall send to the Agent for its own account or for the account of such Lender,
as the case may be, a certified copy of an original official receipt received
by the Borrower showing payment thereof. If the Borrower fails to pay any Taxes
or Other Taxes which are subject to indemnification hereunder when due to the
appropriate taxing authority or fails to remit to the Agent the required
receipts or other required documentary evidence, the Borrower shall indemnify
the Agent and the Lenders for any incremental taxes, interest or penalties that
may become payable by the Agent or any Lender as a result of any such failure.
Each Lender agrees to use reasonable efforts to initially fund the Loan and to
change its applicable lending office, as the case may be, if to do so (i) would
reduce amounts payable by the Borrower to such Lender pursuant to this
subsection, (ii) would not result in the incurrence by such Lender of
additional costs or expenses (unless the Borrower agrees to pay such costs and
expenses) and (iii) would not, in the reasonable judgment of such Lender, be
disadvantageous to such Lender for material regulatory, competitive or internal
management reasons. The agreements of the Borrower in this subsection shall
survive the termination of this Agreement and the payment of the Notes and all
other amounts payable hereunder and under the other Loan Documents.

 

(b)  Notwithstanding any provision to the contrary
herein, the Borrower shall have no liability to pay or indemnify any Lender or
the Agent with respect to any of the following Taxes or Other Taxes:

 

(1)  Any Taxes or Other Taxes imposed by the
United States federal government or any state or local government or taxing
authority therein that is imposed on, based on, or measured by net or gross
income, or that is a franchise tax (imposed in lieu of a tax on net or gross
income) or a branch profits tax (including any such Taxes or Other Taxes
collected by means of withholding) (herein referred to as “United States Income Taxes”), other than a United States Income Tax
that is payable by means of withholding solely as a result of (A) the enactment
after the date of execution and delivery of this Agreement (the “Applicable Date”) of an amendment to the Code or the
regulations thereunder or (B) ratification after the Applicable

 

19

 

Date of any protocol or other amendment to any United States income tax
convention in effect on the Applicable Date or (C) the ratification after the
Applicable Date of any new United States income tax convention (any of (A), (B)
or (C), a “Change
in Law”); provided, however, that the Borrower shall have no liability
for any United States Income Taxes on payments to or for the benefit of any
Lender that is not AFS that is in excess of the United States Income Taxes that
would be imposed on such payment if made to AFS;

 

(2)  Any Taxes or Other Taxes imposed as a result
of a transfer or disposition by a Lender or Agent including, without
limitation, of all or any portion of its interest in the Aircraft, or any other
Collateral or any Note or the Loan (including sale of participations in such
Note or the Loan) unless such transfer or disposition shall occur pursuant to
the exercise of remedies during the continuation of an Event of Default or
pursuant to a change of lending office that is required under Section 2.15;

 

(3)  Any Taxes or Other Taxes, with respect to the
Loan, imposed with respect to events occurring or matters arising after the
repayment of the Loan;

 

(4)  Any Taxes or Other Taxes to the extent such
Taxes or Other Taxes are imposed as a result of a present, former, or future
connection between any Lender or Agent or Affiliate and the jurisdiction
imposing such Taxes or Other Taxes (other than a connection arising solely from
the Agent or such Lender having executed, delivered, performed its obligations,
received a payment under or enforced this Agreement or any related document or
the Notes) or any political subdivision or taxing authority thereof or therein;

 

(5)  Any Taxes or Other Taxes to the extent
imposed as a result of a Lender’s failure (i) to comply with the requirements
of subsection (c) hereunder or (ii) to provide any other necessary exemption
certificates or other required documentation that is required by law, treaty,
or regulation as a condition to the allowance of any reduction in the rate of
such Taxes or Other Taxes; provided, however, that in the case of both (i) and
(ii) the Lender is legally entitled to comply with such requirements;

 

(6)  Any Taxes or Other Taxes to the extent
arising out of or caused by, or to the extent such Taxes or Other Taxes would
not have been incurred but for, the willful misconduct or gross negligence of
such Lender or Agent or the inaccuracy or breach of any representation,
covenant or agreement by such Lender or Agent in this Agreement or any related
document; and

 

(7)  Any excise tax imposed on any Lender under
Section 4975 of the Code as a result of the use by such Lender of the assets of
an “employee benefit plan” (as defined in Section 3(3) of ERISA) to make the
Loan.

 

(c)  Each Lender that is not incorporated under
the laws of the United States of America or a state thereof agrees that, on or
before the first Interest Payment Date after the date on which such Lender
becomes a Lender hereunder, it will deliver to the Borrower and the
Agent two duly completed copies of United States Internal Revenue Service
(“IRS”) Form W-8BEN, or W-8ECI or
other applicable form, as the case may be, certifying that it is entitled to
receive payments under this Agreement without deduction or withholding of any
United States Federal income taxes or at a reduced rate. Each such Lender also
agrees to deliver to the

 

20

 

Borrower and the Agent two further copies of the said IRS Form W-8BEN
or W-8ECI or other or successor applicable forms or other manner of
certification, as the case may be, on or before the date that any such form
expires or becomes obsolete or after the occurrence of any event requiring a
change in the most recent form previously delivered by it to the Borrower, and
such extensions or renewals thereof as may reasonably be requested by the
Borrower or the Agent. Notwithstanding any other provision of this paragraph, a
Lender shall not be required to deliver any form pursuant to this paragraph
that such Lender is not legally able to deliver.

 

(d)  The Borrower shall duly file IRS Forms 1042
and 1042S or appropriate successor forms annually with respect to all interest
payments hereunder as required by the Code and applicable IRS regulations and
procedures and shall provide the Agent with copies of the forms so filed.

 

(e)  If the Administrative Agent or any Lender
receives a refund in respect of Taxes or Other Taxes paid by the Borrower,
which in the good faith judgment of such Lender is allocable to such payment,
it shall promptly pay such refund, together with any other amounts paid by the
Borrower in connection with such refunded Taxes or Other Taxes, to the
Borrower, net of all out-of-pocket expenses of such Lender incurred in
obtaining such refund, provided, however, that the Borrower agrees to
promptly return such refund to the Administrative Agent or the applicable
Lender as the case may be, if it receives notice from the Administrative Agent
or applicable Lender that such Administrative Agent or Lender is required to
repay such refund unless such repayment is due to events described in Section
2.12(b)(5) hereof.

 

(f)  If a written claim is made against any Lender
or the Administrative Agent for any Taxes or Other Taxes, such Lender or
Administrative Agent, as the case may be, shall promptly notify the Borrower in
writing of such claim, and upon written request of Borrower shall, at the
Borrower’s sole cost and expense, contest the validity or amount of such claim
or permit the Borrower, to contest the validity or amount of such claim, provided, however,
that the Lender or Administrative Agent shall not be required and Borrower
shall not be permitted to contest such claim unless (i) the Borrower shall
provide to the Lender an opinion of the Vice President Tax of the Borrower
reasonably satisfactory to such Lender stating that a reasonable basis exists
to contest such claim and (ii) the Borrower agrees to indemnify the Lender for
any additional taxes, interest, penalties or other expenses incurred as a
result of such contest.

 

SECTION
2.13.   Sharing of Payments, Etc. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of the Loan (other than amounts due
to such Lender pursuant to Section 2.9, 2.12, 2.16, 2.18 or 8.4(c) or on account
of differing rates of interest on portions of the Loan) in excess of its
ratable share of payments on account of the Loan obtained by all the Lenders
(such Lender, the “Overpaid Lender”),
such Overpaid Lender shall forthwith (x) notify the Administrative Agent of
such overpayment (and the Administrative Agent shall notify the Lenders
thereof) and (y) pay to the other Lenders such amounts in cash as shall be
necessary to cause such Overpaid Lender to share the excess payment ratably
with each of them, and the Overpaid Lender, upon such payment to each other
Lender, shall be deemed to have purchased a participation in such other
Lender’s Loan in an amount equal to such payment; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
Overpaid Lender, such payment to and purchase from each Lender shall be
rescinded and such

 

21

 

Lender shall repay to the Overpaid Lender
such payment to the extent of such recovery together with an amount equal to
such Lender’s ratable share (according to the proportion of (i) the amount of
such Lender’s required repayment to (ii) the total amount so recovered from the
Overpaid Lender) of any interest or other amount paid or payable by the
Overpaid Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so deemed to have purchased a participation from another
Lender pursuant to this Section 2.13 may, to the fullest extent permitted by
law, exercise all its rights to obtain payment (including the right of set-off)
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.

 

SECTION
2.14.   Use of Proceeds. The proceeds of the Loan shall
be available (and the Borrower agrees that it shall use such proceeds) solely
in connection with the purchase of the Aircraft.

 

SECTION
2.15.   Lender Cooperation. Each Lender agrees that, as
promptly as practicable after it becomes aware of the occurrence of any event
or the existence of a condition which would cause the provisions of Section 2.9
or Section 2.10 to be applicable to such Lender, it will, to the extent not
inconsistent with such Lender’s internal policies, use reasonable efforts to make,
fund or maintain the Loan through another lending office of such Lender if as a
result thereof the additional monies which would otherwise be required to be
paid in respect of the Loan pursuant to Section 2.9 would be materially reduced
or the illegality or other adverse circumstances which would otherwise exist
pursuant to Section 2.10 would cease to exist, and if, as reasonably determined
by such Lender, the making, funding or maintaining of the Loan through such
other lending office would not otherwise materially adversely affect the Loan
or such Lender.

 

SECTION
2.16.   Replacement of Lenders. The Borrower may, upon
written notice to the Administrative Agent (which shall promptly notify the
affected Lender), arrange for another institution (which may be a Lender) to
purchase, in accordance with Section 8.7, the portion of the Loan made by an
affected Lender. For purposes of this Section 2.16, “affected Lender” shall
mean a Lender which has asserted claims against the Borrower under or sought
rights or remedies provided by Section 2.9, 2.10 or 2.12.

 

SECTION
2.17.   Airbus Lenders. The Borrower acknowledges and
agrees that AFS or another Airbus Lender may obtain the funds necessary for it
to make the Loan (in whole or in part) from banks or other institutional
lenders who, as a condition to providing such funds, may require an Airbus
Lender to enter into covenants of a nature not substantially different from
those described in Section 2.9. The Borrower agrees to pay on demand to AFS or
any other Airbus Lender an amount equal to any amount AFS or any other Airbus
Lender is required to pay under any such covenant as a result of costs so
imposed on AFS or another Airbus Lender which are of general application. Any
such Airbus Lender shall provide the Borrower with a statement in reasonable
detail of such costs.

 

SECTION
2.18.   Funding Arrangements. If the Loan is not made
on the date requested in the applicable Notice of Loan by reason of the failure
of the Borrower to accept delivery of the Aircraft upon valid tender by AVSA
under the Airbus A330 Purchase Agreement, the Borrower agrees to pay to the
Initial Lender, promptly after demand by the Initial Lender, an

 

22

 

amount equal to the cost of funds arranged by
the Initial Lender to make the Loan, less earnings from Permitted Investments
(as defined in the Mortgage) by the Initial Lender of such funds, for the
period from the date of the requested borrowing of the Loan as set forth in the
applicable Notice of Loan to the earlier of (x) the Funding Date of the Loan
and (y) one month after such requested date of borrowing.

 

ARTICLE III

CONDITIONS TO MAKING THE LOAN

 

SECTION
3.1.   Conditions Precedent to the Loan. The obligation
of the Initial Lender to make the Loan shall be subject to the following
conditions precedent.

 

(i)            The Administrative Agent shall have received
the following items, each dated the Funding Date, in form and substance
satisfactory to the Administrative Agent, and the statements contained in the
Officer’s Certificate described in clause (ii) shall be true:

 

(i)            one Note to the order of the Initial Lender
in respect of the Loan;

 

(ii)           an Officer’s Certificate of the Borrower
stating that:

 

(x)  the
representations and warranties made by the Borrower and contained in the Loan
Documents relating to the Loan are correct in all material respects on and as
of the date of the Loan before and after giving effect to the Loan and to the
application of the proceeds therefrom, as though made on and as of such date,
and

 

(y)  no
Default or Event of Default has occurred and is continuing.

 

(iii)          certified copies of the resolutions of the
Board of Directors of the Borrower approving the transactions contemplated
hereby, including the purchase and financing of the Aircraft, and of all
documents evidencing other necessary corporate action and governmental
approvals, if any, to authorize the execution of the Loan Documents and the
performance of the Borrower’s obligations thereunder;

 

(iv)          a certificate of the Secretary or an
Assistant Secretary of the Borrower certifying the names and true signatures of
the officers of the Borrower authorized to sign the Loan Documents and the
other documents to be delivered hereunder and thereunder;

 

(v)           a favorable opinion of an Associate General
Counsel of the Borrower, substantially in the form of Exhibit D-1 hereto;

 

(vi)          a favorable opinion of Cadwalader, Wickersham
& Taft LLP, special counsel for the Borrower, substantially in the form of
Exhibit D-2 hereto; and

 

(vii)         a favorable opinion of Daugherty, Fowler,
Peregrin, Haught & Jenson, a Professional Corporation, special aviation
counsel for the Administrative Agent,

 

23

 

substantially in the form of
Exhibit D-3 hereto and addressed to the Administrative Agent and the Initial
Lender.

 

(b)  The following documents shall have been duly
authorized, executed and delivered by the respective parties thereto, shall
each be reasonably satisfactory in form and substance to the Administrative
Agent and shall be in full force and effect and copies (or an excerpt in the
case of the purchase agreement described in clause (i) below) shall have been
delivered to the Administrative Agent and its counsel:

 

(i)            a copy of Clauses 12 and 13 of the Airbus
A330 Purchase Agreement in respect of the Aircraft, certified by an authorized
representative of the Borrower to be true and correct and not to have been
terminated, amended or waived by the Borrower in respect of the Aircraft;

 

(ii)           a bill of sale covering the Aircraft executed
by AVSA in favor of the Borrower, dated the date of delivery of the Aircraft;

 

(iii)          a bill of sale for the Aircraft on AC Form
8050-2 or such other form as may be approved by the FAA on the date of delivery
of the Aircraft executed by AVSA in favor of the Borrower and dated such date;

 

(iv)          a consent and agreement, relating to the
Collateral Agent’s Lien on the Contract Rights pursuant to the Mortgage,
executed by AVSA and Airbus in favor of the Borrower, dated the date of delivery
of the Aircraft;

 

(v)           a written assumption by the Borrower of the
Airbus A330 Purchase Agreement and a written confirmation by AVSA that
Amendment No. 9 thereto has been executed and delivered by the Borrower;

 

(vi)          a written assumption by the Borrower of the
Airbus A319 Purchase Agreement and a written confirmation by AVSA that
Amendment No. 19 thereto has been executed and delivered by the Borrower

 

(vii)         amendments to the AI Subleases effecting the
modifications set forth in the Term Sheet relating to the AI Subleases;

 

(viii)        an amendment to the AFS Term Loan effecting
the modifications set forth in the Term Sheet relating to the AFS Term Loan;

 

(ix)           amendments to the 2005 A330 Financings,
effecting the modifications set forth in the Term Sheet relating to the 2005
A330 Financings.

 

(c)  The Administrative Agent shall have received
a copy of the Mortgage, together with:

 

(i)            acknowledgment copies or stamped receipt
copies of proper financing statements, duly filed under the U.C.C. in all
jurisdictions that the Administrative Agent

 

24

 

may deem necessary or
desirable in order to perfect the security interests created by the Mortgage;

 

(ii)           evidence of the completion of all recordings
and filings of or with respect to the Mortgage that the Administrative Agent
may deem necessary or desirable in order to perfect the security interest
created by the Mortgage;

 

(iii)          at the Borrower’s cost, an independent
insurance broker’s report (including confirmation of coverage) and evidence of
FAA insurance for war risk coverage, each in form and substance reasonably
satisfactory to the Administrative Agent, as to due compliance with the terms
of such Mortgage relating to insurance with respect to the Aircraft; and

 

(iv)          evidence that all other actions necessary or,
in the reasonable opinion of the Administrative Agent, desirable to perfect and
protect the security interests created by the Mortgage have been taken
(including all FAA filings).

 

(d)  The Borrower has (subject to the filing of an
appropriate bill of sale with the FAA) good title to the Aircraft, free and
clear of Liens other than Permitted Liens.

 

(e)  The Aircraft has been duly certified by the
FAA as to type and airworthiness and the Administrative Agent has received a
copy of such certification (it being agreed that if a copy of such
certification is not available at the time of borrowing of the Loan, such copy
may be delivered within five (5) Business Days thereafter without waiving
compliance by the Borrower with Section 3.2(b) of the Mortgage).

 

(f)  The Administrative Agent shall have received
copies of invoices substantiating to its reasonable satisfaction the BFE Cost.

 

(g)  The Aircraft shall be one of the Letter
Agreement Aircraft specified in the Letter Agreement as being eligible for
financing hereunder.

 

(h)  Pursuant to subsections 364(c)(2) and (3) of
the Bankruptcy Code and the Final Order, all amounts owing by the Borrower to
the Lenders will be secured by a first priority perfected Lien on the
Collateral, and no Lien on the Collateral or in any property securing the
obligations of the Borrower under any Airbus Financing that is not a Pooled
Airbus Financing shall have been granted in favor of any lender or other
financing party or representative thereof under any other financing of the
Borrower authorized in the Case by the Bankruptcy Court under Section 364 of
the Bankruptcy Code.

 

(i)  The Final Order shall be in full force and
effect and shall not have been vacated, reversed, modified, amended or stayed
in any manner that affects the rights or duties of the Agent or the Lenders, in
each case, without the prior written consent of the Agent.

 

(j)  The Borrower shall have paid or caused to
have been paid all amounts due and owing under certain product support
agreements that it and its Affiliates owe to AVSA and all Airbus Lenders,
subject to any bona fide trade
dispute.

 

25

 

(k)  The Administrative Agent shall have received
evidence reasonably satisfactory to the effect that the Borrower has Liquid
Assets in an amount greater than or equal to CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT dollars ($ CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT) as of the Funding Date.

 

(l)  The Case shall not have been converted to a
liquidation under Chapter 7 or Chapter 11 of the Bankruptcy Code, no trustee
shall been appointed in the Case, and the exclusive right of the Borrower and
the other debtors in the Case to propose a Chapter 11 plan in the Case shall
not have been terminated.

 

(m)  The Bankruptcy Court shall not have granted
relief to any Person that is inconsistent with the provisions of the Term Sheet
or the Airbus Documentation, and the Administrative Agent shall be satisfied
that any Chapter 11 plan which may have been proposed by the Borrower prior to
the date hereof shall have incorporated all of the provisions of the Term Sheet
and, if applicable, any Airbus Documentation, and any Chapter 11 plan confirmed
by the Bankruptcy Court (whether or not proposed by the Borrower) which may
have been confirmed prior to the date hereof does not contain any provision
inconsistent with the Term Sheet or the Airbus Documentation.

 

(n)  There shall not be any default by the
Borrower under (i) any Airbus Financing that is not a Pooled Airbus Financing;
(ii) any Airbus Purchase Agreement; (iii) any debtor-in-possession or other
financing of the Borrower authorized in the Case by the Bankruptcy Court under
Section 364 of the Bankruptcy Code; or (iv) any agreement between itself or any
of its Affiliates, on the one hand, and Airbus or any of its Affiliates, on the
other hand (other than agreements described in sub-clauses (i) and (ii) of this
clause (n)), provided, however, that neither a (x) a bona fide dispute relating to matters
arising under any agreement described in subclause (iv) of this clause (n), nor
(y) the commencement by the Borrower of the Case shall constitute a “default”
for purposes of any sub-clause of this clause(n).

 

(o)  There shall not be any material default by
the Borrower under any Engine Manufacturer Financing.

 

(p)  The Borrower shall have supplied to the
Administrative Agent, not less than thirty (30) days prior to the Funding Date
either an update of the Borrower’s Business Plan, which shall maintain the
Borrower’s continuing compliance with its long-term commitment to the Airbus
A330 Aircraft and shall cover a period extending at least through CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT, or a certificate
of the Chief Financial Officer of the Borrower that such Business Plan has not
been substantially modified in relation to the Borrower’s operation of Airbus
A330 aircraft, in each case since the Business Plan or any update meeting the
requirements of this clause (p) was last delivered to the Administrative Agent,
or, prior to the Consummation Date, in relation to the Borrower’s expected
treatment of the transactions contemplated by the Term Sheet.

 

26

 

(q)  No applicable law or regulation or
interpretation thereof by appropriate regulatory authorities shall be in effect
which, in the reasonable opinion of the Administrative Agent or its counsel,
would materially restrict, prohibit or make it illegal for the Initial Lender
to make the Loan; and no action or proceeding shall have been instituted nor
shall government action be threatened before any court or governmental agency,
nor shall any order, judgment or decree have been issued or proposed to be
issued by any court or governmental agency at the time of the Loan to set
aside, restrain, enjoin or prevent the completion and consummation of this
Agreement or the transactions contemplated hereby.

 

Promptly
upon the filing of the Mortgage and the Mortgage Supplement (as defined in such
Mortgage) and the due registration of the Aircraft, in each case pursuant to
the Transportation Code, the Borrower shall cause Daugherty, Fowler, Peregrin,
Haught & Jenson, a Professional Corporation, special aviation counsel for
the Administrative Agent, to deliver an opinion as to the due and valid
registration of the Aircraft in the name of the Borrower, the due recording of
the Borrower’s FAA bill of sale, the Mortgage and the Mortgage Supplement and
the lack of filing of any intervening documents with respect to the Aircraft.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

SECTION
4.1.   Representations and Warranties of the Borrower.
(a)  The Borrower represents and warrants, on the date of this
Agreement, as follows:

 

(i)            The Borrower is a corporation duly organized,
validly existing and in good standing under the laws of the State of Minnesota;
is duly qualified to do business as a foreign corporation in each jurisdiction
in which its operations or the nature of its business requires, other than
failures to qualify which would not have a material adverse effect on the
Consolidated business, assets, properties or condition (financial or otherwise)
of the Borrower and its Subsidiaries taken as a whole or on the ability of the
Borrower to perform its obligations under this Agreement; is a Certificated Air
Carrier; has its location (for purposes of Article 9 of the U.C.C.) in Eagan,
Minnesota; holds all licenses, certificates, permits and franchises from the
appropriate agencies of the United States and/or all other governmental
authorities having jurisdiction necessary to authorize the Borrower to engage
in air transport and to carry on scheduled passenger service as presently
conducted (other than those licenses, certificates, permits and franchises
which, if not obtained, would not have a material adverse effect on the
Consolidated business, assets, properties or condition (financial or otherwise)
of the Borrower and its Subsidiaries taken as a whole or on the ability of the
Borrower to perform its obligations under this Agreement); and has the
corporate power and authority to conduct its business as it is presently being
conducted.

 

(ii)           Taking into account the Final Order, the
execution, delivery and performance by the Borrower of this Agreement and the
consummation of the transactions contemplated hereby, are within the Borrower’s
corporate powers, have been duly authorized by all necessary corporate action,
and do not contravene (1) the Borrower’s charter or by-laws or (2) any law or any
contractual restriction binding on or

 

27

 

affecting the Borrower and
do not result in or require the creation of any lien, security interest or
other charge or encumbrance (other than pursuant to the Mortgage) upon or with
respect to any of its properties.

 

(iii)          No authorization or approval or other action
by, and no notice to or filing with, any Governmental Authority or any other
third party is required for the due execution, delivery and performance by the
Borrower of this Agreement, except for (1) the Final Order, (2) the orders,
permits, waivers, exemptions, authorizations and approvals of the Governmental
Authorities having jurisdiction over the Borrower, which orders, permits,
waivers, exemptions, authorizations and approvals have been duly obtained and
are in full force and effect and (2) any such authorization or approval or
other action, notice or filing to the extent required to be given or obtained
only after the date of this Agreement.

 

(iv)          This Agreement has been duly executed and
delivered by the Borrower. Taking into account the Final Order, this Agreement
is the legal, valid binding obligation of the Borrower enforceable against the
Borrower in accordance with its terms except as such enforceability may be
limited after the Consummation Date by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors’ rights generally
or by equitable principles relating to enforceability.

 

(v)           The Consolidated balance sheet of NAC and its
Subsidiaries as at the end of the most recent fiscal year of NAC for which such
balance sheet is available, and the related Consolidated statements of
operations and cash flows of NAC and its Subsidiaries for such fiscal year, accompanied
by an opinion of Ernst & Young, independent public accountants (or any
other firm of independent public accountants of recognized standing selected by
NAC), and the Consolidated balance sheet of NAC and its Subsidiaries as at the
end of the most recent fiscal quarter of NAC (excluding the final fiscal
quarter of each fiscal year) for which such balance sheet is available, and the
related Consolidated statements of operations and cash flows of NAC and its
Subsidiaries for the fiscal period then ended, duly certified by the chief
financial officer of NAC, copies of which have been furnished to the
Administrative Agent, fairly present, subject, in the case of said balance
sheet as at the end of such fiscal quarter, and said statements of operations
and cash flows for such fiscal period then ended, to year-end audit
adjustments, the Consolidated financial condition of NAC and its Subsidiaries
as at such dates and the Consolidated results of the operations of NAC and its
Subsidiaries for the period ended on such dates, all in accordance with
generally accepted accounting principles consistently applied.

 

(vi)          Except for the Case, there is no pending or
threatened action, suit, investigation, litigation or proceeding affecting the
Borrower or any of its Subsidiaries before any court, governmental agency or
arbitrator that (1) is reasonably likely to have a material adverse effect on
(A) the business, condition (financial or otherwise), operations or properties
of the Borrower and its Subsidiaries taken as a whole, (B) the rights and
remedies of the Administrative Agent or any Lender under this Agreement or (C)
the ability of the Borrower to perform its obligations under this Agreement, or
(2) purports to

 

28

 

affect the legality,
validity or enforceability of this Agreement or the consummation of the
transactions contemplated hereby.

 

(vii)         The Borrower is not engaged in the business
of extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the Board of Governors of the
Federal Reserve System).

 

(viii)        The Final Order is in full force and effect
and has not been vacated, reversed, modified, amended or stayed in any manner
that affects the rights or duties of Airbus or any of its Affiliates, in each
case, without the prior written consent of the Agent, and the Bankruptcy Court
has not granted relief to any Person that is inconsistent with the Term Sheet.

 

(b)  On the Funding Date, the Borrower represents and
warrants as set forth in paragraphs (i), (v) and (vii) of Section 4.1(a) as of
such date and as follows:

 

(i)            The Borrower has the corporate power and
authority to own the Aircraft securing the Loan.

 

(ii)           Taking into account the Final Order, the
execution, delivery and performance by the Borrower of each Loan Document to
which it is or will be a party, and the consummation of the transactions
contemplated thereby, are within the Borrower’s corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene (1)
the Borrower’s charter or by-laws or (2) any law or any contractual restriction
binding on or affecting the Borrower and do not result in or require the
creation of any Lien, security interest or other charge or encumbrance (other
than pursuant to the Mortgage) upon or with respect to any of its properties.

 

(iii)          No authorization or approval or other action
by, and no notice to or filing with, any Governmental Authority or any other
third party is required for the due execution, delivery and performance by the
Borrower of any Loan Document to which it is or will be a party, except for (1)
the Final Order, (2) the orders, permits, waivers, exemptions, authorizations
and approvals of the Governmental Authorities having jurisdiction over the
operation of the Aircraft by the Borrower, which orders, permits, waivers,
exemptions, authorizations and approvals have been duly obtained or will prior
to the Funding Date be duly obtained, and will on the Funding Date be in full force
and effect and (2) any such authorization or approval or other action, notice
or filing to the extent required to be given or obtained only after the Funding
Date.

 

(iv)          Except for (1) the filing for recording
pursuant to the Transportation Code of the Mortgage and the Mortgage Supplement
attached thereto and made a part thereof, (2) the filing of financing
statements (and continuation statements at periodic intervals) with respect to
the perfection of the security and other interests created by such documents in
accordance with the U.C.C. of the State of Minnesota (which financing
statements the Borrower has caused or is in the process of causing to be
presented in due form for filing to the appropriate filing office in Minnesota)
and (3) the taking of possession by the Agent of the original counterparts of
the Mortgage and the Mortgage

 

29

 

Supplement covering the
Aircraft, no further action, including any filing or recording of any document
(including any financing statement in respect thereof under Article 9 of the
U.C.C.), is necessary or advisable in order to establish or perfect the Agent’s
security interest in the Aircraft (granted pursuant to the Mortgage and the
Mortgage Supplement covering the Aircraft) as against the Borrower and any
third parties in any applicable jurisdictions in the United States.

 

(v)           There has not occurred any Default or an
Event of Default which is presently continuing and there has not occurred any
event which constitutes or would, with the passage of time or the giving of
notice, or both, constitute an Event of Loss.

 

(vi)          This Agreement has been, and each of the
other Loan Documents to which the Borrower will be a party when delivered
hereunder will have been, duly executed and delivered by the Borrower. This
Agreement is, and each of the Loan Documents to which the Borrower will be a
party when delivered hereunder will be, the legal, valid and binding obligation
of the Borrower enforceable against the Borrower in accordance with their
respective terms except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles relating to
enforceability.

 

(vii)         Except for the Case, there is no pending or
threatened action, suit, investigation, litigation or proceeding affecting the
Borrower or any of its Subsidiaries before any court, governmental agency or
arbitrator that (1) is reasonably likely to have a material adverse effect on
(A) the business, condition (financial or otherwise), operations or properties
of the Borrower and its Subsidiaries taken as a whole, (B) the rights and
remedies of the Agents or any Lender under the Loan Documents or (C) the ability
of the Borrower to perform its obligations under the Loan Documents or (2)
purports to affect the legality, validity or enforceability of this Agreement
or any Loan Document or the consummation of the transactions contemplated
hereby or thereby.

 

(viii)        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.

 

(ix)           The Borrower has good title to the Aircraft,
free and clear of Liens other than the Permitted Liens. The Aircraft has been
duly certified by the FAA as to type and airworthiness, has been insured by the
Borrower in accordance with the terms of the Mortgage and is in the condition
and state of repair required under the terms of the Mortgage.

 

(x)            The Agent, as secured party under the
Mortgage, is entitled to the protection of Section 1110 of the Bankruptcy Code
in connection with its right to take possession of the Airframe and Engines
securing the Loan in the event of a case under Chapter 11 of the Bankruptcy
Code (including the Case) in which the Borrower is a debtor. Pursuant to
subsections 364(c)(2) and (3) of the Bankruptcy Code and the Final Order, all
amounts owing by the Borrower to the Lenders under any Loan Document are
secured by a first priority perfected Lien on the Collateral.

 

30

 

(xi)           Except for any defaults arising out of or in
connection with the Case or related to the Borrower’s financial condition, the
Borrower is not in material default under any material financing (including,
without limitation, either of the A330 Financings, if Airbus Finance Company
Limited or an Affiliate remains at risk thereunder, the financing under the AFS
Term Loan if AFS or an Affiliate remains at risk thereunder, any lease
financing pursuant to an AL Sublease, if Airbus Leasing IV or an Affiliate
remains at risk thereunder, or any EETC participation, if Airbus or an
Affiliate remains at risk thereunder) or under the Airbus A319 Purchase
Agreement, the Airbus A330 Purchase Agreement or any Other Purchase Agreement.

 

ARTICLE V

COVENANTS OF THE BORROWER

 

SECTION
5.1.   Affirmative Covenants. So long as the Loan shall
remain unpaid, the Borrower will:

 

(a)  Compliance with Laws,
Etc. Comply, and cause each of its Subsidiaries to comply, in all respects,
with all applicable laws, rules, regulations and orders other than those the
noncompliance with which would not have a material adverse effect on the
Consolidated business, assets, properties or condition (financial or otherwise)
of the Borrower and its Subsidiaries taken as a whole or on the ability of the
Borrower to perform its obligations under any Loan Document to which it is a
party.

 

(b)  Payment of Taxes, Etc. Unless
payment thereof is precluded by the Case, pay and discharge, and cause each of
its Subsidiaries to pay and discharge, before the same shall become delinquent,
(i) all taxes, assessments and governmental charges or levies imposed upon it
or upon its property and (ii) all lawful claims that, if unpaid, might become a
Lien upon its property, other than any such tax, assessment and governmental
charge or levy or any such lawful claim which, if unpaid, in the aggregate,
would not have a material adverse effect on the Consolidated business, assets,
properties or condition (financial or otherwise) of the Borrower and its
Subsidiaries taken as a whole or on the ability of the Borrower to perform its
obligations under any Loan Document to which it is a party; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to pay
or discharge any such tax, assessment, charge or claim that is being contested
in good faith and by proper proceedings if it has maintained adequate reserves
with respect thereto in accordance with GAAP.

 

(c)  Preservation of Corporate
Existence, Etc. Except as otherwise required by the Bankruptcy Code,
preserve and maintain and cause each of its Subsidiaries to preserve and
maintain, its corporate existence, rights (charter and statutory) and franchises;
provided, however, that neither the Borrower nor any of its Subsidiaries shall
be required to preserve any right or franchise if the Board of Directors of the
Borrower or such Subsidiary shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Borrower or such
Subsidiary. Notwithstanding the foregoing, the Borrower shall at all times be a
Certificated Air Carrier.

 

31

 

(d)  Visitation Rights. At
any reasonable time and from time to time, permit the Administrative Agent or
any of the Lenders or any agents or representatives thereof, to examine and
make copies of and abstracts from the records and books of account of, and
visit the properties of, the Borrower and any of its Subsidiaries, and to
discuss the affairs, finances and accounts of the Borrower and any of its
Subsidiaries with any of their officers or directors and with their independent
certified public accountants, provided that (i) any Lender exercising its
rights under this Section 5.1(d) must act through the Administrative Agent,
(ii) neither the Borrower nor any of its Subsidiaries shall be required to
violate any confidentiality provision of any agreement by which it is bound and
(iii) nothing in this Section 5.1(d) shall entitle the Agent or Lender or any
of their agents or representatives, in connection with the inspection of the
Aircraft, to open any panels, bays or similar openings without the consent of
the Borrower.

 

(e)  Keeping of Books.
Keep, and cause each of its Subsidiaries to keep, proper books of record and
account, in which full and correct entries shall be made of all financial
transactions and the assets and business of the Borrower and each such
Subsidiary in accordance with generally accepted accounting principles in
effect from time to time.

 

(f)  Reporting Requirements.
Furnish to the Lenders:

 

(i)            as soon as available and in any
event within 60 days after the end of each of the first three quarters of each
fiscal year of NAC, the Consolidated balance sheet of NAC and its Subsidiaries
as of the end of such quarter and Consolidated statements of operations and
cash flows of NAC and its Subsidiaries for the period commencing at the end of
the previous fiscal year and ending with the end of such quarter, duly
certified (subject to year-end audit adjustments) by the chief financial
officer of NAC as having been prepared in accordance with generally accepted
accounting principles;

 

(ii)           as soon as available and in any event within 120
days after the end of each fiscal year of NAC, a copy of the audited annual
report for such fiscal year for NAC and its Subsidiaries, containing
Consolidated balance sheets of NAC and its Subsidiaries as of the end of such
fiscal year and Consolidated statements of operations and cash flows of NAC and
its Subsidiaries for such fiscal year, in each case accompanied by an opinion
by Ernst & Young or any other firm of independent public accountants of
recognized standing selected by NAC and acceptable to the Required Lenders;

 

(iii)          as soon as possible and in any event within
five days after the occurrence of each Default continuing on the date of such
statement, a statement of the chief financial officer of the Borrower setting
forth details of such Default and the action that the Borrower has taken and
proposes to take with respect thereto;

 

(iv)          promptly after the sending or filing thereof,
copies of all reports that the Borrower sends to any of its security holders,
and copies of all reports that the

 

32

 

Borrower
or any Subsidiary files with the Securities and Exchange Commission or any
national securities exchange;

 

(v)           promptly after the commencement thereof,
notice of all actions and proceedings before any court, governmental agency or
arbitrator affecting the Borrower or any of its Subsidiaries of the type
described in Section 4.1(a)(vi) and (b)(vii); and

 

(vi)          such other information respecting the
Borrower or any of its Subsidiaries as any Lender through the Administrative
Agent may from time to time reasonably request;

 

provided
that, in the case of clauses (i), (ii) or (iv) of this Section 5.1(f), to the
extent that any such information is posted on the Borrower’s website or is
otherwise available on the internet through the Securities and Exchange
Commission’s “EDGAR” database (located at www.sec.gov), such information
shall be deemed to have been delivered to the Administrative Agent and each
Lender upon the posting of such information on the internet.

 

SECTION
5.2.   Compliance with Mortgage. So long as the Loan
shall remain unpaid, the Borrower will comply with the terms and provisions of
the Mortgage.

 

SECTION
5.3.   Maintenance of Office. So long as the Loan shall
remain unpaid, the Borrower will maintain an office in the State of Minnesota
where notices, presentations and demands in respect of this Agreement and the
other Loan Documents may be made upon it (which office shall be maintained at
2700 Lone Oak Parkway, Eagan, Minnesota 55121 until such time as the Borrower
shall have notified the Administrative Agent of a change of location).

 

SECTION
5.4.   Negative Covenants. So long as the Loan shall
remain unpaid, the Borrower will not make or permit, or permit any of its
Subsidiaries to make or permit, any change in accounting policies or reporting
practices, except as required or permitted by GAAP.

 

ARTICLE VI

EVENTS OF DEFAULT

 

SECTION
6.1.   Events of Default. Each of the following events
shall constitute an event of default with respect to the Loan (each an “Event of Default”), whether any such event
shall be voluntary or involuntary or come about or be effected by operation of
law or pursuant to or in compliance with any judgment, decree or order of any
court or any order, rule or regulation of any administrative or government
body, and each such Event of Default shall continue so long as, but only as
long as, it shall not have been remedied:

 

(a)  the Borrower shall fail to
make any payment within CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT days after the same shall have become due of principal of, or
interest on, any Note evidencing the Loan; or (ii) the Borrower shall fail to
make any payment when the same shall become due of any other

 

33

 

Obligations
with respect to the Loan, and such failure shall continue unremedied for
CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT days after the
receipt by the Borrower of written notice thereof from the Administrative
Agent; or

 

(b)  the Borrower shall have
failed to perform or observe (or cause to be performed and observed) in any
material respect any covenant or agreement to be performed or observed by it
under this Agreement or the Mortgage (other than the covenant to carry and
maintain insurance in Section 3.6 of the Mortgage), and such failure shall
continue unremedied for a period of thirty (30) days after receipt by the
Borrower of written notice thereof from the Administrative Agent; provided, however,
that if the Borrower shall have undertaken to cure any such failure which
arises under Section 3.2(c) of the Mortgage or under the first sentence of
Section 3.2(b) of the Mortgage as it relates to maintenance, service, repair or
overhaul or under Section 3.4(a), (b), (c) or (d) of the Mortgage and,
notwithstanding the diligence of the Borrower in attempting to cure such
failure, such failure is not cured within said thirty-day period but is curable
with future due diligence, there shall exist no Event of Default under this
Section 6.1(b) so long as the Borrower is proceeding with due diligence to cure
such failure and such failure is remedied not later than one hundred eighty
(180) days after receipt by the Borrower of such written notice; or

 

(c)  any representation or
warranty made by the Borrower herein or in the Mortgage or any document or
certificate furnished by the Borrower in connection herewith or therewith or
pursuant hereto or thereto shall prove to have been incorrect in any material
respect at the time made and the incorrectness of any such representation or
warranty shall not have been cured (to the extent of the adverse impact of such
incorrectness on the interests of the Lenders) within thirty (30) days after
the receipt by the Borrower of written notice from the Administrative Agent
advising the Borrower of the existence of such incorrectness; or

 

(d)  the commencement of an
involuntary case or other proceeding in respect of the Borrower in an
involuntary case under the federal bankruptcy laws, as now or hereafter
constituted, or any other applicable federal or state bankruptcy, insolvency or
other similar law in the United States or seeking the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Borrower or for all or substantially all of its property, or
seeking the winding-up or liquidation of its affairs and the continuation of
any such case or other proceeding undismissed and unstayed for a period of
ninety (90) consecutive days or an order, judgment or decree shall be entered
in any proceeding by any court of competent jurisdiction appointing, without
the consent of the Borrower, a receiver, trustee or liquidator of the Borrower,
or of any substantial part of its property, or sequestering any substantial
part of the property of the Borrower and any such order, judgment or decree or
appointment or sequestration shall be final or shall remain in force
undismissed, unstayed or unvacated for a period of ninety (90) days after the
date of entry thereof; or

 

34

 

(e)  the commencement by the
Borrower of a voluntary case (other than the Case) under the Federal bankruptcy
laws, as now constituted or hereafter amended, or any other applicable federal
or state bankruptcy, insolvency or other similar law in the United States, or
the consent by the Borrower to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Borrower or for all or substantially all of its
property, or the making by the Borrower of any assignment for the benefit of
creditors or the Borrower shall take any corporate action to authorize any of
the foregoing; or

 

(f)  the Borrower shall fail to
carry and maintain on or with respect to the Aircraft (or cause to be carried
and maintained) insurance required to be maintained in accordance with the
provisions of Section 3.6 of the Mortgage; or

 

(g)  so long as (i) an Airbus
Lender holds at least 50% of the outstanding principal amount of the Notes, an
“event of default” shall occur under any Airbus Financing that is not a Pooled
Airbus Financing, or (ii) more than 50% of the outstanding principal amount of
the Notes are held by a Pooled Sell-Down Lender, an “event of default” shall
occur under any Pooled Airbus Financing held by such Pooled Sell-Down Lender, in
each case as the term “event of default” is defined or otherwise described
under the Other Financing Documents for such Airbus Financing or Pooled Airbus
Financing, other than an “event of default” resulting from the commencement of
the Case; or

 

(h)  the Loan Documents and the
Final Order shall, for any reason, cease to create a valid Lien on any of the
Collateral purported to be covered thereby or such Lien shall cease to be a
perfected Lien having the priority provided for herein and in the Final Order,
or the Borrower shall so allege in any pleading filed in any court or any
material provision of any Loan Document shall, for any reason, cease to be
valid and binding on the Borrower (or the Borrower shall challenge the
enforceability of any Loan Document or shall assert in writing, or engage in
any action or inaction based on any such assertion, that any provision of any
of the Loan Documents has ceased to be or otherwise is not valid, binding and
enforceable in accordance with its terms;

 

(i)  the Case shall be dismissed
or converted to a case under Chapter 7 of the Bankruptcy Code or the Borrower
shall file a motion or other pleading seeking the dismissal of any of the Case
under Section 1112 of the Bankruptcy Code or otherwise;

 

(j)  a trustee under Chapter 7 or
Chapter 11 of the Bankruptcy Code, a responsible officer or an examiner with
enlarged powers relating to the operation of the business (powers beyond those
set forth in Section 1106(a)(3) and (4) of the Bankruptcy Code) under Section
1106(b) of the Bankruptcy Code shall be appointed in the Case and the order
appointing such trustee, responsible officer or examiner shall not be reversed
or vacated within 30 days after entry thereof;

 

(k)  the Borrower’s Board of
Directors shall authorize a liquidation of the Borrower’s business;

 

35

 

(l)  the Final Order shall have
been vacated, reversed, modified, amended or stayed in any manner that
materially and adversely affects the rights or duties of the Agent or the
Lenders, in each case, without the prior written consent of the Agent;

 

(m)  any Lien on the Collateral
or in any property securing the obligations of the Borrower under any Airbus
Financing that is not a Pooled Airbus Financing shall have been granted, at any
time after the Consummation Date, in favor of any lender or other financing
party (other than an Airbus Lender) or representative thereof under any other
financing of the Borrower authorized in the Case by the Bankruptcy Court under
Section 364 of the Bankruptcy Code; or

 

(n)  The Borrower files a
proposed Chapter 11 plan in the Case which does not contain or is inconsistent
with the provisions contemplated by this Agreement, the Term Sheet or any
Airbus Financing that is not a Pooled Airbus Financing; or a Chapter 11 plan is
confirmed by the Bankruptcy Court for the Borrower and such Chapter 11 plan as
so confirmed fails to contain or is inconsistent with the provisions of this
Agreement, the Term Sheet or any Airbus Financing that is not a Pooled Airbus
Financing;

 

provided, however, that,
notwithstanding anything to the contrary contained in Section 6.1(b) or (c),
any failure of the Borrower to perform or observe any covenant, condition,
agreement or any error in a representation or warranty shall not constitute an
Event of Default if such failure or error is caused solely by reason of an
event that constitutes an Event of Loss affecting the Aircraft so long as the
Borrower is continuing to comply with all of the terms of Section 3.5 of the Mortgage.

 

Upon
the occurrence of any Event of Default, the Administrative Agent shall at the
request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare all the Notes, all interest thereon and all other amounts
payable under this Agreement in connection with the Loan to be forthwith due
and payable, whereupon the Loan and Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby
expressly waived by the Borrower; provided,
however, that in the event of an
actual or deemed entry of an order for relief with respect to the Borrower
under the Bankruptcy Code, the Loan, the Notes, all such interest and all such
amounts shall automatically become and be due and payable, without presentment,
demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Borrower. To the extent that any rights and remedies under this
Section 6.1 would otherwise be in violation of the automatic stay of section
362 of the Bankruptcy Code, such stay shall be deemed modified, as set forth in
the Final Order, as applicable, to the extent necessary to permit the
Administrative Agent to exercise such rights and remedies.

 

ARTICLE VII

THE AGENTS

 

SECTION
7.1.   Authorization and Action. Each Lender hereby
appoints and authorizes each Agent to take such action as agent on its behalf
and to exercise such powers and discretion under the Loan Documents as are expressly
delegated to such Agent by the terms

 

36

 

thereof, together with such powers and
discretion as are reasonably incidental thereto. Each Agent shall have no
duties or responsibilities except those expressly set forth in this Agreement
and any other Loan Document. As to any matters not expressly provided for by
the Loan Documents (including, without limitation, enforcement or collection of
the Notes), each Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall
be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding
upon all Lenders and all holders of Notes; provided, however, that no Agent
shall be required to take any action that exposes such Agent to personal
liability or that is contrary to this Agreement or applicable law or is not
within the powers and discretion expressly delegated to such Agent pursuant to
the Loan Documents. Each Agent agrees to give to each Lender prompt notice of
each notice received by it from the Borrower pursuant to the terms of this
Agreement.

 

SECTION
7.2.   Each Agent’s Reliance, Etc. Neither Agent nor
such Agent’s directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
the Loan Documents, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, each
Agent:  (i) may treat the payee of any
Note as the holder thereof until the Administrative Agent receives and accepts
an Assignment and Acceptance entered into by the Lender that is the payee of
such Note, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 8.7; (ii) may consult with legal counsel (including counsel for the
Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith
by it in accordance with the advice of such counsel, accountants or experts;
(iii) makes no warranty or representation to any Lender and shall not be
responsible to any Lender for any statements, warranties representations
(whether written or oral) made in or in connection with the Loan Documents;
(iv) shall not have any duty to ascertain or to inquire as to the performance
or observance of any of the terms, covenants or conditions of the Loan
Documents on the part of the Borrower or to inspect the property (including the
books and records and the Airbus Aircraft) of the Borrower; (v) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any Lien or security interest created or purported to be created
under or in connection with, the Loan Documents or any other instrument or
document furnished pursuant thereto; and (vi) shall incur no liability under or
in respect of the Loan Documents by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopier,
telegram or telex) believed by it to be genuine and signed or sent by the
proper party or parties.

 

SECTION
7.3.   The Agents and Their Affiliates. Each Agent (or
an Affiliate of such Agent) shall have the same rights and powers under the
Loan Documents 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, include each Agent in its individual capacity. Each Agent
and its Affiliates may accept deposits from, lend money to, act as trustee
under indentures of, accept investment banking engagements from and generally
engage in any kind of business with, the Borrower, any of its Subsidiaries and
any Person who may do business with or own securities of the Borrower or any
such Subsidiary, all as if such Agent were not an Agent and without any duty to
account therefor to the Lenders.

 

37

 

SECTION
7.4.   Lender Credit Decision. Each Lender acknowledges
that it has, independently and without reliance upon the Agent or any other
Lender and based on the financial statements referred to in Section 4.1(a)(v)
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon any Agent 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 this Agreement.

 

SECTION
7.5.   Indemnification. The Lenders agree to indemnify
each Agent and such Agent’s directors, officers, agents or employees (to the
extent not reimbursed by the Borrower), ratably according to the respective
principal amounts of the Notes then held by each such Lender, from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Agent
in any way relating to or arising out of the Loan Documents or any action taken
or omitted by such Agent under the Loan Documents, provided that no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from an Agent’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse each Agent
promptly upon demand for its ratable share of any out-of-pocket expenses
(including counsel fees) incurred by such Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, the Loan
Documents, to the extent that such Agent is not reimbursed for such expenses by
the Borrower.

 

SECTION
7.6.   Successor Agent. Subject to the appointment and
acceptance of a successor agent as provided below, either Agent may resign at
any time by giving written notice thereof to the Lenders and the Borrower and
may be removed at any time with or without cause by the Required Lenders. Upon
any such resignation or removal, or the earlier written request of such Agent
to resign addressed as aforesaid, the Required Lenders shall have the right to
appoint a successor Agent. If no successor Agent shall have been so appointed
by the Required Lenders, and shall have accepted such appointment, within 30
days after the retiring Agent’s giving of notice of resignation or the Required
Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf
of the Lenders, appoint a successor Agent. In each case, the successor Agent
(if not an Airbus Lender) shall be an entity having a consolidated tangible net
worth of at least $ CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT. Upon the acceptance of any appointment as an Agent by a successor
Agent, such successor Agent shall thereupon succeed to and become vested with
all the rights, powers, discretion, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and
obligations under the Loan Documents. After any retiring Agent’s resignation or
removal hereunder as an Agent, the provisions of this Article VII (including,
without limitation, Section 7.5) shall inure to the retiring Agent’s benefit as
to any actions taken or omitted to be taken by it while it was an Agent under
the Loan Documents. Notwithstanding anything to the contrary herein, the
Administrative Agent and the Collateral Agent under (and as defined in) the
Mortgage shall be the same institution.

 

38

 

ARTICLE
VIII

MISCELLANEOUS

 

SECTION 8.1.   Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Notes or the other Loan Documents, nor consent to any
departure by the Borrower therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no amendment, waiver
or consent shall, unless in writing and signed by all the Lenders (or, in the
case of clauses (b) and (c) below, by the holder of each Note affected
thereby), do any of the following: (a) reduce the principal of, or interest on,
the Loan or the Notes or any other amounts hereunder, (b) postpone any date
fixed for any payment of principal of, or interest on, the Notes or any other
amounts payable hereunder, (c) change the aggregate unpaid principal amount of
the Notes, or the number of Lenders, that shall be required for the Lenders or
any of them to take any action hereunder, (d) release any material portion of
any collateral held to secure the obligations of the Borrower in respect of the
Loan under the Loan Documents or (e) amend this Section 8.1; and provided
further that no amendment, waiver or consent shall, unless in writing and
signed by the Lenders required above to take such action and by the Agent,
affect the rights or duties of the Agent under this Agreement or any Note.

 

SECTION
8.2.   Notices, Etc. All notices and other
communications provided for hereunder shall be in writing (including telecopier
or telegraphic communication) and mailed, telecopied, telegraphed or delivered,
if to the Borrower, at its address at Department A4010, 2700 Lone Oak Parkway,
Eagan, MN 55121, Attention: Senior Vice President and Treasurer (Telecopier No.
+1-612-726-2221); if to the Initial Lender, at its Lending Office specified
opposite its name on Schedule I hereto; if to any other Lender, at its Lending
Office specified in the Assignment and Acceptance pursuant to which it became a
Lender; if to the Administrative Agent, at its address at 5th Floor, 6 George’s
Dock, International Financial Services Centre, Dublin 1, Ireland,
Attention:  Managing Director (Telecopier
No. +353-1-670-2020); or, as to the Borrower or the Agent, at such other
address as shall be designated by such party in a written notice to the other
parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the Agent. All
such notices and communications shall, when mailed, telecopied or telegraphed,
be effective when deposited in the mails, telecopied or delivered to the
telegraph company, respectively, except that notices and communications to the
Agent or any Lender pursuant to Article II, III or VII shall not be effective
until received. Delivery by telecopier of an executed counterpart of any
amendment or waiver of any provision of this Agreement or the Notes or of any
Exhibit hereto to be executed and delivered hereunder shall be effective as
delivery of a manually executed counterpart thereof.

 

SECTION
8.3.   No Waiver; Remedies. No failure on the part of
any Lender or the Agent to exercise, and no delay in exercising, any right
under any Loan Document 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 remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

 

39

 

SECTION
8.4.   Costs and Expenses. (a)  The Borrower
agrees to pay on demand the reasonable and adequately documented fees and
expenses, including without limitation reasonable legal fees and expenses of
counsel for the Agent and any Airbus Lender in connection with the transactions
contemplated hereby; provided that
the Borrower will be obligated to pay the legal fees and expenses of only one
law firm. The Borrower further agrees to pay on demand all reasonable and
adequately documented costs and expenses of the Agent and the Lenders, if any
(including, without limitation, reasonable counsel fees and expenses), in
connection with the enforcement (whether through negotiations, legal
proceedings or otherwise) of the Loan Documents and the other documents to be
delivered under the Loan Documents, including, without limitation, reasonable
fees and expenses of counsel for the Agent and each Lender in connection with
the enforcement of rights under this Section 8.4(a).

 

(b)  The Borrower agrees to indemnify and hold
harmless (x) each Lender, the Agents, Airbus and AVSA, (y) their respective
Affiliates, and (z) their respective officers, directors, employees, agents and
advisors (each, an “Indemnified Party”)
from and against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or by reason of, or in connection
with the preparation for a defense of, any investigation, litigation or
proceeding arising out of, related to or in connection with the Loan Documents,
any of the transactions contemplated herein or therein or the actual or
proposed use of the proceeds of the Loan, whether or not such investigation,
litigation or proceeding is brought by the Borrower, its directors,
shareholders or creditors or an Indemnified Party or any other Person or any
Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated, except to the extent such
claim, damage, loss, liability or expense (i) results from such Indemnified
Party’s gross negligence or willful misconduct, (ii) arises by reason of laws
or governmental regulations, orders or other legal requirements pertaining to
secured lending by such Indemnified Party, (iii) consists of Taxes or Other
Taxes (whether or not otherwise indemnified by the Borrower), (iv) is
attributable, in the case of a particular Indemnified Party, to the
incorrectness of any representation or warranty or the breach of any covenant
of such Indemnified Party in the Loan Documents, (v) is attributable to
amendments to the Loan Documents not made in accordance with the terms thereof,
(vi) constitutes an administrative expense, (vii) arises because of the gross
negligence or willful misconduct of the Agent in distributing funds in
accordance with the Loan Documents, (viii) arises due to a transfer or
disposition of an Indemnified Party’s interest in the Aircraft or in the Loan
Documents other than as required therein or following the occurrence of an
Event of Default or (ix) results from actions of Airbus or AVSA in their
respective capacities as manufacturer and seller of the Aircraft.

 

(c)  If (i) any payment or prepayment of principal
of the Loan is made by the Borrower (or any replacement lender pursuant to
Section 2.16) to or for the account of a Lender other than on the last day of
the Interest Period for the Loan, as a result of a prepayment pursuant to
Section 2.8, acceleration pursuant to Section 6.1 or for any other reason or
(ii) the Loan is converted from being based on the Eurodollar Rate to being
based on a substitute rate pursuant to Section 2.10 other than on the last day
of the Interest Period for the Loan, the Borrower shall, upon demand by such
Lender (with a copy of such demand to the Agent), pay to the Agent for the
account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses that it may reasonably incur and as are
set forth in reasonable detail in a

 

40

 

certificate furnished to the Borrower within 90 days after the
incurrence of such loss, cost or expense as a result of such payment or
conversion (as the case may be), including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund or maintain the Loan.

 

(d)  Without prejudice to the survival of any
other agreement of the Borrower hereunder, the agreements and obligations of
the Borrower contained in Sections 2.9, 2.10, 2.12, 2.13 and 8.4 shall survive
the payment in full of principal, interest and all other amounts payable
hereunder and under the Notes.

 

SECTION
8.5.   Right of Setoff. Upon (i) the occurrence and
during the continuance of any Event of Default and (ii) the making of the
request or the granting of the consent specified by Section 6.1 to authorize
the Administrative Agent to declare the Notes relating to the Loan to be due
and payable pursuant to the provisions of Section 6.1, each Lender is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing
by such Lender to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under any
Loan Document, whether or not such Lender shall have made any demand under such
Loan Document and although such obligations may be unmatured; provided that an
Airbus Lender shall not be entitled to set off and apply as aforesaid deposits
held by or indebtedness owing by the Manufacturer or AVSA to the Borrower. Each
such Lender agrees promptly to notify the Borrower after any such setoff and
application, provided that the failure to give such notice shall not affect the
validity of such setoff and application. The rights of each such Lender under
this Section 8.5 are in addition to other rights and remedies (including,
without limitation, other rights of setoff) that such Lender may have.

 

SECTION
8.6.   Binding Effect; Integration. This Agreement
shall become effective when it shall have been executed by the Borrower, the
Administrative Agent and the Initial Lender and thereafter shall be binding
upon and inure to the benefit of the Borrower, the Administrative Agent and
each Lender and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights hereunder or any interest
herein without the prior written consent of the Lenders. This Agreement and the
other Loan Documents constitute the entire agreement and understanding among
the parties hereto relating to the subject matter hereof and supersede any and
all prior agreements and understandings, oral or written, relating to the
subject matter hereof.

 

SECTION
8.7.   Assignments and Participations.
(a)  Each Lender (x) may, at any time, and (y) shall, so long as no
Default has occurred and is continuing and if demanded by the Borrower pursuant
to the provisions of Section 2.16, assign to one or more Persons all or a
portion of its rights and obligations under the Loan Documents (including,
without limitation, the portion of the Loan owing to it and the Note or Notes
held by it); provided, however, that (i) each such assignment may be of a
constant or of a varying, percentage of all rights and obligations under this
Agreement and the other Loan Documents, (ii) except in the case of an
assignment to a Person that, immediately prior to such assignment, was a Lender
or an assignment of all of a Lender’s rights and obligations under this
Agreement, the principal

 

41

 

amount of the Loan of the assigning Lender
being assigned pursuant to each such assignment (determined as of the date of
the Assignment and Acceptance with respect to such assignment) shall in no
event be less than $5,000,000, (iii) each such assignment shall be (x) (A) to
any Airbus Lender or any Affiliate thereof, or (B) to any special purpose
entity formed pursuant to Section 8.7(j), or (y) (A) to a bank or other
financial institution with a combined capital, surplus and undivided profits of
at least $75,000,000, or a corporation whose consolidated tangible net worth is
at least $75,000,000, exclusive of goodwill, in either case as of the proposed
date of such sale, as determined in accordance with GAAP or (B) to any
Affiliate of any such bank, financial institution or corporation if such bank,
financial institution or corporation furnishes to the Borrower an agreement or
agreements of such bank, financial institution or corporation (in form and
substance reasonably satisfactory to the Borrower) unconditionally guaranteeing
to the Borrower such Affiliate’s obligations to the Borrower hereunder, or (z)
Avion or any Person in which AFS or its successor holds at least twenty-five
percent (25%) of the equity interests, so long as such entity referred to in
clause (x) or (y) or (z) is (A) not an airline, a commercial air carrier, an
air freight forwarder, an entity engaged in the business of parcel transport or
other similar business (collectively, a “Potential
Competitor”) and (B) is not a Person (other than a bank or other
financial institution) controlling, controlled by or under common control with
any such Potential Competitor (the entities referred to in clauses (x) and (y)
above, subject to the limitations aforesaid in clauses (A) and (B),
collectively, the “Eligible Assignees”),
(iv) each such assignment made as a result of a demand by the Borrower pursuant
to Section 2.16 shall be arranged by the Borrower, shall be to an Eligible
Assignee acceptable to the Administrative Agent (which acceptance shall not be
unreasonably withheld) and shall be either an assignment of all of the rights
and obligations of the assigning Lender under the Loan Documents or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of
the rights and obligations of the assigning Lender under the Loan Documents and
(v) no Lender shall be obligated to make any such assignment as a result of a
demand by the Borrower pursuant to Section 2.16 unless and until such Lender
shall have received one or more payments from either the Borrower or one or
more Eligible Assignees in an aggregate amount at least equal to the aggregate
outstanding principal amount of the Loan owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and
all other amounts payable to such Lender under the Loan Documents. The parties
to each such assignment shall execute and deliver to the Administrative Agent,
for its acceptance and recording in the Register, an Assignment and Acceptance
together with any Note subject to such assignment. Upon such execution,
delivery, acceptance and recording from and after the effective date specified
in each Assignment and Acceptance, (x) the assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, have the rights and
obligations of a Lender hereunder and (y) the Lender assignor thereunder shall,
to the extent that rights and obligations hereunder have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Loan Documents (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease
to be a party hereto).

 

(b)  By executing and delivering an Assignment and
Acceptance, the Lender assignor thereunder and the assignee thereunder confirm
to and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Assignment and Acceptance,

 

42

 

such assigning Lender makes no representation or warranty and assumes
no responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or the other Loan Documents or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest
created or purported to be created under or in connection with, this Agreement
or the other Loan Documents or any other instrument or document furnished
pursuant hereto; (ii) such assigning Lender makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its obligations
under this Agreement or the other Loan Documents or any other instrument or
document furnished pursuant hereto; (iii) such assignee confirms that it has
received a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.1(a)(v) and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon the Agent, such assigning Lender 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 this Agreement; (v) such assignee confirms that it is
an Eligible Assignee; (vi) such assignee represents and warrants that either
(x) no part of the funds to be used by it for the purchase of a portion of the
Loan (or any part thereof) constitutes assets of any “employee benefit plan” as
defined in Section 3(3) of ERISA or (y) the proposed assignment will not result
in a nonexempt prohibited transaction (as defined in Section 4975 of the
Internal Revenue Code and ERISA); (vii) such assignee appoints and authorizes
each Agent to take such action as agent on its behalf and to exercise such
powers and discretion under the Loan Documents as are delegated to such Agent
by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; and (ix) such assignee agrees that it will
perform in accordance with their terms all of the obligations that by the terms
of this Agreement are required to be performed by it as a Lender.

 

(c)  The Administrative Agent shall maintain at
its address referred to in Section 8.2 a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names
and addresses of the Lenders, and the principal amount of the Loan owing to,
each Lender from time to time (the “Register”).
If more than 50% of the then outstanding principal amount of the Notes are held
by a Person or Persons other than an Airbus Lender, the Administrative Agent
shall maintain, and make available to the Borrower on request, a list of Pooled
Airbus Financings in which such Person or Persons holds more than 50% of the
then outstanding principal balance (other than Pooled Airbus Financings that
are AL Subleases) and/or all of the leasehold interest in one or more Pooled
Airbus Financings that are AL Subleases. The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agent and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or
any Lender at any reasonable time and from time to time upon reasonable prior
notice.

 

(d)  Upon its receipt of an Assignment and
Acceptance executed by an assigning Lender and an assignee representing that it
is an Eligible Assignee, together with any Note or Notes subject to such
assignment, the Administrative Agent shall, if such Assignment and Acceptance
has been completed and is in substantially the form of Exhibit C hereto, (i)
accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register

 

43

 

and (iii) give prompt notice thereof to the Borrower. Within five
Business Days after its receipt of such notice, the Borrower, at its own
expense, shall execute and deliver to the Administrative Agent in exchange for
any surrendered Notes new Notes to the order of such Eligible Assignee each in
an amount equal to the portion of such surrendered Note assumed by such
Eligible Assignee pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained a portion of such surrendered Note, a new Note to
the order of the assigning Lender in an amount equal to such retained portion
and such old Note shall be returned to the Borrower marked “cancelled”. Such
new Note or Notes shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be in substantially the form of Exhibit A
hereto.

 

(e)  Each Lender may sell participations to one or
more Eligible Assignees in or to all or a portion of the Loan owing to it and
the Note or Notes held by it; provided,
however, 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) such Lender shall remain the holder of any such Note
for all purposes of this Agreement and the other Loan Documents, (iv) the
Borrower, each Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents, and (v) each
such participation shall be in a minimum amount of $ CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT (unless otherwise agreed to by
the Borrower).

 

(f)  Any Lender may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 8.7, disclose to the assignee or participant or proposed assignee
or participant, any information relating to the Borrower furnished to such
Lender by or on behalf of the Borrower; provided
that, prior to any such disclosure, the assignee or participant or proposed
assignee or participant shall agree to preserve the confidentiality of any
Confidential Information relating to the Borrower received by it from such
Lender pursuant to a confidentiality agreement substantially in the form of
Exhibit E.

 

(g)  Notwithstanding any other provision set forth
in this Agreement, any Lender may at any time create a security interest in all
or any portion of its rights under this Agreement (including, without
limitation, the Loan owing to it and the Notes held by it) in favor of any
Federal Reserve Bank in accordance with Regulation A of the Board of Governors
of the Federal Reserve System or any other Person.

 

(h)  The Borrower agrees to cooperate with each
Lender to accommodate the efforts of such Lender to transfer, sell or assign
all or any part of its rights and obligations under this Agreement pursuant to
this Section 8.7. Each Lender severally agrees to reimburse the Borrower’s
reasonable and adequately documented external legal and investment bank fees
and expenses in respect of any such transfer, sale or assignment.

 

(i)  If as a result of one or more assignments,
transfers or other transactions, the Airbus Lenders cease to control the
ability to accelerate the Loan, the Administrative Agent agrees to give prompt
written notice thereof to the Borrower.

 

44

 

(j)  In connection with a transfer, sale,
assignment of, or participation with respect to, all or any part of its rights
and/or obligations under the Loan Documents by the Initial Lender or any
Affiliate thereof (it being understood that the Initial Lender or Affiliate may
allocate particular rights and obligations as between the relevant parties),
including by means of a capital markets, private placement or securitization
transaction in one or more steps (an “Initial
Lender Sell-Down”), the parties agree as follows, notwithstanding
any other provision of this Section 8.7:

 

(i)            that the Borrower shall have the
right to review and approve (acting reasonably) any widely circulated (as, for
example, in a Rule 144A offering) placement or offering materials in connection
with any Initial Lender Sell-Down, limited to those portions of such placement
or offering materials that: (i) describe the Borrower or its business, (ii)
describe the Loan Documents to which the Borrower is a party or (iii) describe
any risk factors concerning the Borrower or the airline industry, and for this
purpose, the Borrower shall have a period of not less than 30 days for any such
review and approval in connection with an Initial Lender Sell-Down;

 

(ii)           that not more than two Initial Lender
Sell-Down transactions (as defined herein and in the credit agreements in
respect of other Airbus Loans) per calendar year shall be subject to the
provisions of this Section 8.7(j) (or the comparable provisions of the credit
agreements in respect of other Airbus Financings) (it being understood that any
one Initial Lender Sell-Down transaction may involve more than one credit
agreement for purposes of this subclause) in which review and approval of the
placement or offering materials by the Borrower is required as provided in the
preceding subclause (1);

 

(iii)          that a special purpose entity (an “SPV”) organized in a manner acceptable to
the placement agents, rating agencies and other participants in an Initial
Lender Sell-Down transaction shall be an acceptable “Eligible Assignee” under
the Loan Documents (it being understood that such SPV may have only nominal
capitalization);

 

(iv)          that the Loan Documents and closing
documents may be disclosed to the rating agencies, underwriters, investors,
placement agents and trustees and other parties reasonably deemed necessary by
the Initial Lender in connection with an Initial Lender Sell-Down transaction,
and their respective counsel, auditors, agents and advisors, each of whom agree
to hold such information confidential in accordance with the terms of Exhibit E
or otherwise in a manner customary for such persons in similar transactions;

 

(v)           that, if requested by the Initial
Lender, the Borrower will provide reliance letters with respect to the legal
opinions delivered at the closing of the Loan at the closing of an Initial
Lender Sell-Down transaction, provided
that such reliance letters need only relate to the date of the closing of the
Loan; and

 

(vi)          that, the Borrower will cooperate with
the Initial Lender, to the extent consistent with the Borrower’s access to the
capital markets (subject to the Borrower informing the Initial Lender, upon
reasonable request by the Initial Lender, of the transactions the Borrower is
then undertaking, or planning to undertake, to raise funds in relation to which
the Borrower is the obligor on the capital markets (whether or not such

 

45

 

transactions are
collateralized by aircraft)), in connection with any Initial Lender Sell-Down
transaction involving a private placement or Rule 144A offering of securities,
in agreeing to amend the terms of this Agreement and the Mortgage to include
such market terms as shall be available to the Borrower at such time (x) to the
extent not included in the Loan Documents and (y) to the extent such amendments
doe not adversely deteriorate the economic value to the Borrower of the Loan
Documents; and

 

(vii)         from and after the closing of an
Initial Lender Sell-Down transaction, that Section 2.11 of this Agreement shall
be deemed amended by adding a new paragraph (f) to read as follows:

 

‘(f) 
Borrower’s payment obligations under the Loan Documents shall be
absolute and unconditional, and shall not be affected by any event or
circumstance, including, without limitation: 
(i) any setoff, counterclaim, recoupment, defense or other right that
Borrower may have against any Airbus Lender, any Affiliate thereof or any other
Person for any reason whatsoever; or (ii) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing; and, to the
extent permitted by applicable law, the Borrower waives and agrees not to assert
any right, claim or defense based on the foregoing.’

 

; it being agreed that the reasonable costs and expenses of Borrower
(including reasonable legal fees and disbursements) incurred by the Borrower in
complying with clauses (iv) and (v) above and in connection with its review and
approval of any widely circulated (as, for example, in a Rule 144A offering)
placement or offering materials to be utilized in connection with an Initial
Lender Sell-Down shall be reimbursed by the Initial Lender.

 

SECTION 8.8.  
Confidentiality. Neither Agent nor any Lender nor the Borrower
shall disclose any Confidential Information to any other Person without the
consent of each other, except (a) to such Agent’s or such Lender’s Affiliates
and their officers, directors, employees, agents and advisors and, as
contemplated by Section 8.7(f), to actual or prospective assignees and
participants, and then only on a confidential basis or as otherwise permitted
under Section 8.7(j), (b) as required by any law, rule or regulation or
judicial process and (c) as requested or required by any state, federal or
foreign authority or examiner regulating banks or banking. Notwithstanding
anything herein to the contrary, any party subject to confidentiality
obligations hereunder or under any other related document (and any employee,
representative or other agent of such party) may disclose to any and all
persons, without limitation of any kind, such party’s U.S. federal income tax
treatment and the U.S. federal income tax structure of the transactions
contemplated by this Agreement relating to such party and all materials of any
kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure. However, no such party shall
disclose any information relating to such tax treatment or tax structure to the
extent nondisclosure is reasonably necessary in order to comply with applicable
securities laws.

 

SECTION
8.9.   Certain Agreements and Representations of Lenders.
Each Lender represents and warrants that: (i) such Lender qualifies as an
Eligible Assignee; (ii) such Lender will not make the Loan or acquire any
interest in the Loan with the assets of any

 

46

 

“employee benefit plan” as defined in Section
3(3) of ERISA or of any “plan” within the meaning of Section 4975(e)(1) of the
Code, unless the acquisition will not result in a non-exempt prohibited
transaction (as defined in Section 4975 of the Code and ERISA; and (iii) such
Lender will acquire the Loan and each Note for investment and not with a view
to resale or distribution (it being understood that such Lender may pledge or
assign as security its interest in the Loan and each Note issued to it),
provided that the disposition of its property shall at all times be and remain
within its control, except that such Lender may sell, transfer or otherwise
dispose of any Note or any portion thereof or grant participations therein, in
a manner which in itself will not require registration under the Securities Act
of 1933, as amended.

 

SECTION
8.10.   GOVERNING LAW. THIS AGREEMENT AND THE NOTES
SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO ANY CHOICE OF LAW PRINCIPLE THAT WOULD
DICTATE THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION.

 

SECTION
8.11.   Execution in Counterparts. This Agreement may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement.

 

SECTION
8.12.   Jurisdiction, Etc. (a)  Each of the
parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or
federal court of the United States of America, in each case sitting in New York
City, except that during the pendency of the Case, the Bankruptcy Court shall
have exclusive jurisdiction, in any action or proceeding arising out of or
relating to the 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 shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment may be heard
and determined in such state court or, to the extent permitted by law, in such
federal court. Each of the parties hereto agrees that a final judgment in such
action or proceeding or in any other manner provided by law. Nothing in this
Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement or the Notes in the courts of
any jurisdiction.

 

(b)  The Borrower hereby irrevocably designates,
appoints and empowers CT Corporation System, with offices on the date hereof at
111 Eighth Avenue, New York, New York 10011 as its designee, appointee and
agent to receive, accept and acknowledge for and on its behalf, and in respect
of its property, service of any and all legal process, summons, notices and
documents which may be served in any such action or proceeding. If for any
reason such designee, appointee and agent shall cease to be available to act as
such, the Borrower agrees to designate a new designee, appointee and agent in
New York City on the terms and for the purposes of this provision satisfactory
to the Administrative Agent under this Agreement. The Borrower further
irrevocably consents to the service of process out of any of the aforementioned

 

47

 

courts specified in paragraph (a) above in any such action or
proceeding by the mailing of copies there by registered or certified mail,
postage prepaid, to the Borrower, such service to become effective 30 days
after such mailing. Nothing herein shall affect the right of the Agent under
this Agreement, any Lender or the holder of any Note to serve process in any
other manner permitted by law or to commence legal proceedings or otherwise
proceed against the Borrower in any other jurisdiction.

 

(c)  Each of the parties hereto 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 the Loan Documents
in any New York State or federal court referred to in Section 8.12(a). 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.

 

SECTION
8.13.   WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE
AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS OR THE ACTIONS OF
THE AGENT OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT THEREOF.

 

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

 

SECTION
8.15.   Headings. All headings in this Agreement are
for convenience of reference only and do not constitute a part of this
Agreement.

 

SECTION
8.16.   Interpretation of Term Sheet. Nothing in this
Agreement or the other Loan Documents shall be deemed to interpret the
provisions of the Term Sheet for purposes of, and no reliance shall be made on
the terms of this Agreement or the other Loan Documents in the negotiation of,
any other financing required to be provided by AVSA under the Term Sheet.

 

SECTION
8.17.   Quiet Enjoyment. Each Lender and the
Administrative Agent covenant to the Borrower as follows:

 

(a)  the Lenders and the Administrative Agent
acknowledge and consent to the provisions contained in the proviso in Section
2.1 of the Mortgage; and

 

(b)  each Lender and the Administrative Agent
shall not, through its own actions or inactions, interfere with, or suffer to
exist with respect to the Aircraft, any Lien attributable to itself which might
interfere with the Borrower’s (or any Lessee’s thereof) continued possession,
use and operation of, and quiet enjoyment (including, without limitation,
administrative quiet enjoyment) of, the Aircraft during the term of the
Mortgage and in accordance with the terms of the Loan Documents so long as no
Event of Default shall have occurred and be continuing.

 

48

 

SECTION
8.18.   Concerning Clause (i)(y) of Section 3.6(a)(I) of the
Mortgage. The Borrower agrees that the dollar amount referred to in
Clause (i)(y) of Section 3.6(a)(I) of the Mortgage shall be: $ Confidential
material omitted and filed separately with the Securities and Exchange
Commission pursuant to a request for confidential treatment per occurrence.

 

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

 

	
   

  	
  NORTHWEST
  AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AIRBUS
  FINANCIAL SERVICES,

  
	
   

  	
  as
  Administrative Agent and as the Initial Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

49

 

Schedule I

to

Credit Agreement

 

Lending Office of Airbus Financial Services

 

	
   

  	
  5th
  Floor

  
	
   

  	
  6
  George’s Dock

  
	
   

  	
  International
  Financial Services Centre

  
	
   

  	
  Dublin
  1, Ireland

  
	
   

  	
  Attn:
  Managing Director

  

 

 

Schedule II

to

Credit Agreement

 

Approved Commercial Banks

 

CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

their
successors or assigns.

 

 

Schedule III

to

Credit Agreement

 

Principal Payment Schedule

 

 

CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

 

 

Schedule IV

to

Credit Agreement

 

Approved Countries for Reregistration

 

 

CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

 

 

Schedule V

to

Credit Agreement

 

AL Subleases

 

Sublease
[1992 Trust NW-A], dated as of January 1, 1992, between Airbus Leasing IV and
the Borrower, as amended and supplemented from time to time, with respect to
one Airbus A320 aircraft bearing airframe serial number 262 and FAA
registration number N321US.

 

Sublease [1992 Trust NW-B],
dated as of January 5, 1992, between Airbus Leasing IV and the Borrower, as
amended and supplemented from time to time, with respect to one Airbus A320
aircraft bearing airframe serial number 263 and FAA registration number N322US.

 

Sublease [1992 Trust NW-C], dated as of
February 1, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 272 and FAA registration number N323US.

 

Sublease [1992 Trust NW-D], dated as of
February 5, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 273 and FAA registration number N324US.

 

Sublease [1992 Trust NW-E], dated as of March
2, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 281 and FAA registration number N325US.

 

Sublease [1992 Trust NW-F], dated as of March
4, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 282 and FAA registration number N326US.

 

Sublease [1992 Trust NW-G], dated as of April
1, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 297 and FAA registration number N327NW.

 

Sublease [1992 Trust NW-H], dated as of April
6, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 298 and FAA registration number N328NW.

 

Sublease [1992 Trust NW-I], dated as of May
5, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 306 and FAA registration number N329NW.

 

Sublease [1992 Trust NW-J], dated as of May
7, 1992, between Airbus Leasing IV and the Borrower, as amended and
supplemented from time to time, with respect to one Airbus A320 aircraft
bearing airframe serial number 307 and FAA registration number N330NW.

 

1

 

Exhibit A

to

Credit Agreement

 

Form of Promissory Note

 

	
  U.S.$ [

  	
                     

  	
  ]

  	
   

  	
  Dated:                   ,
            

  

 

FOR
VALUE RECEIVED, the undersigned, NORTHWEST AIRLINES, INC., a Minnesota corporation
(the “Borrower”), HEREBY PROMISES
TO PAY to                    
(the “Lender”) for the account of
its Lending Office as defined in the Credit Agreement referred to below) the
principal sum of U.S.$ [                 ]
(the “Original Amount”) representing
a Loan made by the Lender to the Borrower pursuant to the Credit Agreement
dated as of January 24, 2006 between the Borrower and Airbus Financial
Services, as the Initial Lender and as Administrative Agent (as amended or
modified from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein
defined). The Original Amount shall be payable in installments in the amounts
and on the dates specified in Section 2.5 of the Credit Agreement.
Notwithstanding the foregoing, the final payment made on this Promissory Note
shall be in an amount sufficient to discharge in full the unpaid Original
Amount and all accrued and unpaid interest on any amounts due under this
Promissory Note.

 

The
Borrower promises to pay interest on the unpaid principal amount hereof from
the date hereof until such principal amount is paid in full, at such interest
rates, and payable at such times, as are specified in the Credit Agreement.

 

Both
principal and interest are payable in lawful money of the United States of
America to the Administrative Agent, to the account specified in Section 2.11
of the Credit Agreement, in same day funds.

 

This
Promissory Note is one of the Notes referred to in, and is entitled to the
benefits of, the Credit Agreement. The Credit Agreement, among other things,
contains provisions for acceleration of the maturity hereof upon the happening
of certain stated events and also for prepayments on account of principal
hereof prior to the maturity hereof upon the terms and conditions therein
specified. The obligations of the Borrower under this Promissory Note and the
Credit Agreement are secured by collateral as provided in the Credit Agreement
and in the Mortgage and Security Agreement, dated as of January 24, 2006,
executed by the Borrower and pertaining to the Aircraft bearing FAA
Registration No. N[    ]NW.

 

	
   

  	
  NORTHWEST
  AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
					

 

1

 

Exhibit B

to

Credit Agreement

 

Form of Notice of Loan

 

	
  Airbus
  Financial Services, as Administrative Agent

  
	
  for the Lenders under to the Credit

  
	
  Agreement referred to below

  
	
   

  
	
  [Date]

  
	
   

  
	
  Attention:

  	
                                            

  	
   

  

 

Ladies and Gentlemen:

 

The
undersigned, Northwest Airlines, Inc., refers to the Credit Agreement, dated as
of January 24, 2006 (as amended or modified from time to time, the “Credit Agreement”, the terms defined
therein being used herein as therein defined), between the undersigned and
Airbus Financial Services, as the Initial Lender and as Administrative Agent
for the Lenders, and hereby gives you notice, irrevocably, pursuant to Section
2.2 of the Credit Agreement that the undersigned hereby requests the Loan under
the Credit Agreement, and in that connection sets forth below the information
relating to the Loan (the “Proposed Loan”)
as required by Section 2.2(a) of the Credit Agreement:

 

The
requested Business Day of the Proposed Loan (which shall not be a legal holiday
in Toulouse, France, Dublin, Ireland, or New York, New York) is January [  ],
2006.

 

The
aggregate amount of the Proposed Loan is $[            ].

 

The
Aircraft related to the Proposed Loan is the Airbus model A330-223 aircraft
bearing manufacturer’s serial number [        ]
and will be delivered to the Borrower on January [  ], 2006.

 

The
undersigned hereby certifies that the following statements are true on the date
hereof, and will be true on the date of the Proposed Loan:

 

(x)  the
representations and warranties made by the Borrower and contained in the Loan
Documents relating to the Loan are correct in all material respects on and as
of the date of the Proposed Loan before and after giving effect to the Loan and
to the application of the proceeds therefrom, as though made on and as of such
date, and

 

B-1

 

(y)  no
Default or Event of Default has occurred and is continuing.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  NORTHWEST
  AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
					

 

B-2

 

Exhibit C

to

Credit Agreement

 

Form of Assignment and Acceptance

 

Reference
is made to the Credit Agreement dated as of January 24, 2006 (as amended or
modified from time to time, the “Credit
Agreement”) between Northwest Airlines, Inc., a Minnesota
corporation (the “Borrower”) and
Airbus Financial Services, as Initial Lender and as Administrative Agent for
the Lenders (the “Administrative Agent”).
Terms defined in the Credit Agreement are used herein with the same meaning.

 

The
“Assignor” and the “Assignee” referred to on Schedule I hereto agree as
follows:

 

1.     The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, an interest in and to
the Assignor’s rights and obligations under the Credit Agreement as of the date
hereof equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement. After giving
effect to such sale and assignment, the amount of the Loan owing to the
Assignee will be as set forth on Schedule 1 hereto.

 

2.     The Assignor (i) represents and warrants that it is the legal
and beneficial owner of the interest being assigned by it hereunder and that
such interest is free and clear of any adverse claim; (ii) makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit
Agreement or the other Loan Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, the Credit Agreement or the other Loan Documents
or any other instrument or document furnished pursuant thereto; (iii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under the Credit Agreement or the other Loan
Documents or any other instrument or document furnished pursuant thereto; and
(iv) attaches each Note held by the Assignor and requests that the
Administrative Agent exchange each such Note for a new Note payable to the
order of the Assignee in an amount equal to the portion of such Note assumed by
the Assignee pursuant hereto or new Notes payable to the Assignee in an amount
equal to the portion of such Note assumed by the Assignee pursuant hereto and
to the Assignor in an amount equal to the portion of such Note retained by the
Assignor under the Credit Agreement, respectively, as specified on Schedule 1
hereto.

 

3.     The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.1(a)(v) thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Agents, the Assignor or any other

 

C-1

 

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 Credit Agreement; (iii) confirms that it is an Eligible Assignee;
(iv) represents and warrants that either (x) no part of the funds to be used by
it for the purchase of the Loan (or any part thereof) constitutes assets of any
“employee benefit plan” as defined in Section 3(3) of ERISA or (y) the proposed
assignment will not result in a non-exempt prohibited transaction (as defined
in Section 4975 of the Code and ERISA); (v) represents and warrants that it
will acquire Notes for investment and not with a view to sale or distribution
(it being understood that the Assignee may pledge or assign as security its
interest in each Note or each such instrument issued to it), provided
that the disposition of its property shall at all times be and remain within
its control, except that the Assignee may sell, transfer or otherwise dispose
of any Note, any such instrument or any portion thereof or grant participations
therein, in a manner which in itself will not require registration under the
Securities Act of 1933, as amended; (vi) appoints and authorizes each Agent to
take such action as agent on its behalf and to exercise such powers and
discretion under the Loan Documents as are delegated to such Agent by the terms
thereof, together with such powers and discretion as are reasonably incidental
thereto; (vii) agrees, for the benefit of the assigning Lender and Borrower,
that it will perform in accordance with their terms all of the obligations that
by the terms of the Credit Agreement are required to be performed by it as a
Lender; and (viii) attaches any U.S. Internal Revenue Service forms required
under Section 2.12 of the Credit Agreement.

 

4.     Following the execution of this Assignment and Acceptance, it
will be delivered to the Administrative Agent for acceptance and recording by
the Administrative Agent. The effective date for this Assignment and Acceptance
(the “Effective Date”) shall be
the date of acceptance hereof by the Administrative Agent (together with such
payment), unless otherwise specified on Schedule 1 hereto.

 

5.     Upon such acceptance and recording by the Administrative Agent,
as of the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the extent provided in this Assignment and Acceptance, relinquish its rights
and be released from its obligations under the Credit Agreement.

 

6.     Upon such acceptance and recording by the Administrative Agent,
from and after the Effective Date, the Administrative Agent shall make all
payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal,
interest and other amounts with respect thereto) to the Assignee. The Assignor
and Assignee shall make all appropriate adjustments in payments under the
Credit Agreement and the Notes for periods prior to the Effective Date directly
between themselves.

 

7.     This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

C-2

 

8.     This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

 

IN
WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this
Assignment and Acceptance to be executed by their officers thereunto duly
authorized as of the date specified thereon.

 

C-3

 

Schedule 1

to

Assignment and Acceptance

 

Percentage
interest assigned:

 

Outstanding
principal amount of the Loan assigned:

 

Effective
Date:

 

	
  Note

  	
   

  	
  Principal Amount of

  Note payable to Assignee

  	
   

  	
  Principal Amount of

  Note payable to Assignor

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  [NAME
  OF ASSIGNOR], as Assignor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Dated:
               ,
           

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME
  OF ASSIGNEE], as Assignee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending
  Office:

  
	
   

  	
   

  	
  [Address]

  
							

 

	
  Accepted
  this

  
	
           
  day of                  ,
          

  
	
   

  
	
  Airbus
  Financial Services, as

  
	
  Administrative
  Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

C-4

 

Exhibit D-1

to

Credit Agreement

 

 

Form of Opinion of Associate General Counsel of The
Borrower

 

 

[In the form delivered at closing]

 

D-1-1

 

Exhibit D-2

to

Credit Agreement

 

 

Form of Opinion of Cadwalader, Wickersham & Taft
LLP,

Special Counsel for the Borrower

 

 

[In the form delivered at closing]

 

D-2-1

 

Exhibit D-3

to

Credit Agreement

 

 

Form of Opinion of Daugherty, Fowler, Peregrin, Haught
& Jenson,

Special Aviation Counsel for the Agent

 

 

[In the form delivered at closing]

 

D-3-1

 

Exhibit E

to

Credit Agreement

 

Form of Confidentiality Agreement

 

 

[Insert
Name and Address of

the Prospective Assignee or Holder

of a Participation]

 

Ladies
and Gentlemen:

 

You
have expressed interest in establishing a credit relationship with Northwest
Airlines, Inc., a Minnesota corporation (together with its subsidiaries and
affiliates, the “Borrower”). In
connection therewith, you have asked for certain information about the
Borrower. In consideration for and as a condition of your receiving the
Materials (as hereinafter defined), you acknowledge the confidential and
proprietary nature of the Materials and agree to hold and keep the same
confidential as provided in this letter agreement and to take or refrain from
taking certain other actions as set forth in this letter agreement.

 

The
term “Materials” means any information concerning the Borrower which was
furnished to us by or on behalf of the Borrower and which we furnish to you.
The term “Materials” does not include information which (i) is or becomes
generally available to the public or (ii) is or becomes available to you from a
source other than the Borrower, unless you have the actual knowledge (without
being obligated to conduct any investigation) that such information has been
made available by such source in breach of a confidentiality agreement by which
such source is bound with respect to such information.

 

We
are prepared to provide you with a copy of the Materials, as necessary, which
have been or may be provided pursuant to the information provisions under the
Credit Agreement (the “Credit Agreement”)
dated as of January 24, 2006 between Northwest Airlines, Inc. and Airbus Financial
Services, as the Initial Lender and as Administrative Agent. Pursuant to
Section 8.7(f) of the Credit Agreement, we are required to have you, as a
prospective assignee or holder of a participation in the Loan (as defined in
the Credit Agreement) enter into this Confidentiality Agreement (the
“Agreement”) before receiving the Materials. Such Materials will be made
available to you upon your execution of this Agreement. In consideration
thereof, you agree that Materials will be kept confidential, in accordance with
your customary procedure for handling confidential information and in
accordance with safe and sound banking practices, and not be used by you except
in connection with the proposed credit relationship referred to above.
Notwithstanding anything herein to the contrary, any party subject to
confidentiality obligations hereunder or under any other related document (and
any employee, representative or other agent of such party) may disclose to any
and all persons, without limitation of any kind, such party’s U.S. federal
income tax treatment and the U.S. federal income tax structure of the
transactions contemplated by the Credit Agreement relating to such party and
all materials of any kind (including opinions or other tax analyses) that are
provided to it relating to such tax treatment and tax structure. However, no
such party shall disclose any information relating to 

 

 

such
tax treatment or tax structure to the extent nondisclosure is reasonably
necessary in order to comply with applicable securities laws.

 

You
acknowledge that the Materials are internal information that may include
allocations, projections data, analyses and calculations that may not
completely and accurately reflect the results of the Borrower’s operations. In
addition, you acknowledge that the Materials regarding operations have not been
prepared for financial statement disclosure purposes.

 

You
hereby acknowledge that you are aware, and that you will advise such of your
representatives who are informed as to the matters which are the subject of
this letter agreement, that the United States securities law impose
restrictions on any person who has received from an issuer material, non-public
information concerning the matters which are the subject of this letter
agreement from purchasing or selling securities of such issuer or from
communicating such information to any other person under circumstances in which
it is reasonably foreseeable that such person is likely to purchase or sell
such securities.

 

You
and your affiliates, directors, officers, employees and representatives agree
to be bound by the terms of this Agreement. This Agreement shall inure to the
benefit of the Borrower.

 

In
this connection, we acknowledge that you may make disclosure as required by any
governmental agency or representative thereof or pursuant to legal process and
that you are subject to oversight by bank or other financial regulatory
agencies and may be required to provide to, or otherwise make available for
review by, the representatives of such agencies the Materials. You also agree
to request confidential treatment of the Materials to the extent permitted by
law.

 

Please
indicate your agreement to the foregoing at the place provided below.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  [Insert
  Name of Lender]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The
  foregoing is agreed to as of

  	
   

  
	
  the
  date of this letter.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]