Document:

e61238368ex4_11.htm

 

Exhibit 4.11

 

EXECUTION VERSION

ESCROW AND PAYING AGENT AGREEMENT

(Class B)

 

Dated as of December 2, 2010

 

among

 

WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION

 

as Escrow Agent

 

MORGAN STANLEY & CO. INCORPORATED,

CREDIT SUISSE SECURITIES (USA) LLC

GOLDMAN, SACHS & CO.,

DEUTSCHE BANK SECURITIES INC.

and

J.P. MORGAN SECURITIES LLC,

as Underwriters

 

WILMINGTON TRUST COMPANY,

not in its individual capacity,

but solely as Pass Through Trustee

for and on behalf of

Continental Airlines Pass Through Trust 2010-1B-O

 

as Pass Through Trustee

 

and

 

WILMINGTON TRUST COMPANY

 

as Paying Agent

 

  

  

  

TABLE OF CONTENTS

	
SECTION 1.  Escrow Agent

	
2

	  	  
	
Section 1.01.  Appointment of Escrow Agent

	
2

	
Section 1.02.  Instruction; Etc.

	
2

	
Section 1.03.  Initial Escrow Amount; Issuance of Escrow Receipts

	
4

	
Section 1.04.  Payments to Receiptholders

	
4

	
Section 1.05.  Mutilated, Destroyed, Lost or Stolen Escrow Receipt

	
4

	
Section 1.06.  Additional Escrow Amounts

	
5

	
Section 1.07.  Resignation or Removal of Escrow Agent

	
5

	
Section 1.08.  Persons Deemed Owners

	
5

	
Section 1.09.  Further Assurances

	
6

	  	  
	
SECTION 2.  Paying Agent

	
6

	 	 
	
Section 2.01.  Appointment of Paying Agent

	
6

	
Section 2.02.  Establishment of Paying Agent Account

	
6

	
Section 2.03.  Payments from Paying Agent Account

	
6

	
Section 2.04.  Withholding Taxes

	
7

	
Section 2.05.  Resignation or Removal of Paying Agent

	
7

	
Section 2.06.  Notice of Final Withdrawal

	
8

	
 

SECTION 3.  Payments

	
8

	
 

SECTION 4.  Other Actions

	
8

	
 

SECTION 5.  Representations and Warranties of the Escrow Agent

	
9

	
 

SECTION 6.  Representations and Warranties of the Paying Agent

	
10

	
 

SECTION 7.  Indemnification

	
11

	
 

SECTION 8.  Amendment, Etc.

	
11

	
 

SECTION 9.  Notices

	
11

	
 

SECTION 10.  Transfer

	
12

	
 

SECTION 11.  Entire Agreement

	
12

	
 

SECTION 12.  Governing Law

	
13

	
 

SECTION 13.  Waiver of Jury Trial Right

	
13

	
 

SECTION 14.  Counterparts

	
13

	
 

SECTION 15.  Rights of Holders

	
13

  

  

  

 

 

Exhibit A          Escrow Receipt

 

Exhibit B           Withdrawal Certificate

  

  

BACK

ESCROW AND PAYING AGENT AGREEMENT (Class B) dated as of December 2, 2010, (as amended, modified or supplemented from time to time, this “Agreement”) among WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking association, as Escrow Agent (in such capacity, together with its successors in such capacity, the “Escrow Agent”); MORGAN STANLEY & CO. INCORPORATED, CREDIT SUISSE SECURITIES (USA) LLC, GOLDMAN, SACHS & CO., DEUTSCHE BANK SECURITIES INC. and J.P. MORGAN SECURITIES LLC, as Underwriters of the Certificates referred to below (the “Underwriters” and together with their respective transferees and assigns as registered owners of the Certificates, the “Investors”) under the Underwriting Agreement referred to below; WILMINGTON TRUST COMPANY, a Delaware banking corporation, not in its individual capacity except as otherwise expressly provided herein, but solely as trustee (in such capacity, together with its successors in such capacity, the “Pass Through Trustee”) under the Pass Through Trust Agreement referred to below; and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as paying agent hereunder (in such capacity, together with its successors in such capacity, the “Paying Agent”).

W I T N E S S E T H

WHEREAS, Continental Airlines, Inc. (“Continental”) and the Pass Through Trustee have entered into a Trust Supplement, dated as of December 2, 2010 (the “Trust Supplement”), to the Pass Through Trust Agreement, dated as of September 25, 1997 (together, as amended, modified or supplemented from time to time in accordance with the terms thereof, the “Pass Through Trust Agreement”) relating to Continental Airlines Pass Through Trust 2010-1B-O (the “Pass Through Trust”) pursuant to which the Continental Airlines Pass Through Trust, Series 2010-1B-O Certificates referred to therein (the “Certificates”) are being issued (the date of such issuance, the “Issuance Date”);

 

WHEREAS, Continental and the Underwriters have entered into an Underwriting Agreement dated as of November 17, 2010 (as amended, modified or supplemented from time to time in accordance with the terms thereof, the “Underwriting Agreement”) pursuant to which the Pass Through Trustee will issue and sell the Certificates to the Underwriters;

 

WHEREAS, Continental, the Pass Through Trustee, another pass through trustee and certain other persons concurrently herewith are entering into the Note Purchase Agreement, dated as of the date hereof (the “Note Purchase Agreement”), pursuant to which the Pass Through Trustee has agreed to acquire from time to time on or prior to the Delivery Period Termination Date (as defined in the Note Purchase Agreement) equipment notes (the “Equipment Notes”) issued to finance certain aircraft currently owned by Continental and certain other aircraft to be acquired by Continental, as owner, utilizing a portion of the proceeds from the sale of the Certificates (the “Net Proceeds”);

 

WHEREAS, the Underwriters and the Pass Through Trustee intend that the Net Proceeds be held in escrow by the Escrow Agent on behalf of the Investors, subject to withdrawal upon request by the Pass Through Trustee and satisfaction of the conditions set forth in the Note Purchase Agreement for the purpose of purchasing Equipment Notes, and that pending such withdrawal the Net Proceeds be deposited on behalf of the Escrow Agent with JPMorgan Chase Bank, N.A., as Depositary (the “Depositary”, which shall also be deemed to refer to any Replacement Depositary (as defined in the Note Purchase Agreement) from and after the date on which the Deposits are transferred to such Replacement Depositary) under the

 

  

  

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Deposit Agreement, dated as of the date hereof between the Depositary and the Escrow Agent relating to the Pass Through Trust (as amended, modified, supplemented or replaced from time to time in accordance with the terms thereof, the “Deposit Agreement”, which shall also be deemed to refer to any Replacement Deposit Agreement (as defined in the Note Purchase Agreement) to which the Escrow Agent becomes a party pursuant to Section 1.02(a) hereof from and after the transfer of the Deposits from the Depositary to the Replacement Depositary) pursuant to which, among other things, the Depositary will pay interest for distribution to the Investors and establish accounts from which the Escrow Agent shall make withdrawals upon request of and proper certification by the Pass Through Trustee;

 

WHEREAS, the Escrow Agent wishes to appoint the Paying Agent to pay amounts required to be distributed to the Investors in accordance with this Agreement; and

 

WHEREAS, capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Pass Through Trust Agreement.

 

NOW, THEREFORE, in consideration of the obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.     Escrow Agent.

 

Section 1.01.    Appointment of Escrow Agent.  Each of the Underwriters, for and on behalf of each of the Investors, hereby irrevocably appoints, authorizes and directs the Escrow Agent to act as escrow agent and fiduciary hereunder and under the Deposit Agreement for such specific purposes and with such powers as are specifically delegated to the Escrow Agent by the terms of this Agreement, together with such other powers as are reasonably incidental thereto.  Any and all money received and held by the Escrow Agent under this Agreement or the Deposit Agreement shall be held in escrow by the Escrow Agent in accordance with the terms of this Agreement.  This Agreement is irrevocable and the Investors’ rights with respect to any monies received and held in escrow by the Escrow Agent under this Agreement or the Deposit Agreement shall only be as provided under the terms and conditions of this Agreement and the Deposit Agreement.  The Escrow Agent (which term as used in this sentence shall include reference to its affiliates and its own and its affiliates’ officers, directors, employees and agents): (a) shall have no duties or responsibilities except those expressly set forth in this Agreement; (b) shall not be responsible to the Pass Through Trustee or the Investors for any recitals, statements, representations or warranties of any person other than itself contained in this Agreement or the Deposit Agreement or for the failure by the Pass Through Trustee, the Investors or any other person or entity (other than the Escrow Agent) to perform any of its obligations hereunder (whether or not the Escrow Agent shall have any knowledge thereof); and (c) shall not be responsible for any action taken or omitted to be taken by it hereunder or provided for herein or in connection herewith, except for its own willful misconduct or gross negligence (or simple negligence in connection with the handling of funds).

 

Section 1.02.    Instruction; Etc.  The Underwriters, for and on behalf of each of the Investors, hereby irrevocably instruct the Escrow Agent, and the Escrow Agent agrees:

 

(a) to enter into the Deposit Agreement, and, if requested by the Company pursuant to Section 4(a)(vii) of the Note Purchase Agreement, to enter into a

 

  

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Replacement Deposit Agreement with the Replacement Depositary specified by the Company;

 

(b) to appoint the Paying Agent as provided in this Agreement;

 

(c) upon receipt at any time and from time to time prior to the Termination Date (as defined below) of a certificate substantially in the form of Exhibit B hereto (a “Withdrawal Certificate”) executed by the Pass Through Trustee, together with an attached Notice of Purchase Withdrawal in substantially the form of Exhibit A to the Deposit Agreement duly completed by the Pass Through Trustee (the “Applicable Notice of Purchase Withdrawal” and the withdrawal to which it relates, a “Purchase Withdrawal”), immediately to execute the Applicable Notice of Purchase Withdrawal as Escrow Agent and transmit it to the Depositary by facsimile transmission in accordance with the Deposit Agreement; provided that, upon the request of the Pass Through Trustee after such transmission, the Escrow Agent shall cancel such Applicable Notice of Purchase Withdrawal;

 

(d) upon receipt of a Withdrawal Certificate executed by the Pass Through Trustee, together with an attached Notice of Replacement Withdrawal in substantially the form of Exhibit C to the Deposit Agreement duly completed by the Pass Through Trustee, to:

 

(X) give such Notice of Replacement Withdrawal to the Depositary requesting a withdrawal, on the date specified in such notice, which shall not be less than five Business Days after such notice is given (the “Replacement Withdrawal Date”), of all Deposits then held by the Depositary together with all accrued and unpaid interest on such Deposits to but excluding the Replacement Withdrawal Date; and

 

(Y) direct the Depositary to transfer such Deposits and accrued interest on behalf of the Escrow Agent to the Replacement Depositary in accordance with the Replacement Deposit Agreement; and

 

(e) if there are any undrawn Deposits (as defined in the Deposit Agreement) on the “Termination Date”, which shall mean the earlier of (i) July 31, 2011, and (ii) the day on which the Escrow Agent receives notice from the Pass Through Trustee that the Pass Through Trustee’s obligation to purchase Equipment Notes under the Note Purchase Agreement has terminated, to immediately give notice to the Depositary (with a copy to the Paying Agent) substantially in the form of Exhibit B to the Deposit Agreement requesting a withdrawal of all of the remaining Deposits, together with accrued and unpaid interest on such Deposits to the date of withdrawal, on the 25th day after the date that such notice of withdrawal is given to the Depositary (or, if not a Business Day, on the next succeeding Business Day) (a “Final Withdrawal”), provided that if the day scheduled for the Final Withdrawal in accordance with the foregoing is within 10 days before or after a Regular Distribution Date, then the Escrow Agent shall request that such requested Final Withdrawal be made on such Regular Distribution Date (the date of such requested withdrawal, the “Final Withdrawal Date”).

 

  

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If for any reason the Escrow Agent shall have failed to give the Final Withdrawal Notice to the Depositary on or before August 8, 2011, and there are unwithdrawn Deposits on such date, the Final Withdrawal Date shall be deemed to be August 31, 2011.

 

Section 1.03.    Initial Escrow Amount; Issuance of Escrow Receipts.  The Escrow Agent hereby directs the Underwriters to, and the Underwriters hereby acknowledge that on the date hereof they shall, irrevocably deliver to the Depositary on behalf of the Escrow Agent, an amount in U.S. dollars (“Dollars”) and immediately available funds equal to $64,492,000 for deposit on behalf of the Escrow Agent with the Depositary in accordance with Section 2.1 of the Deposit Agreement.  The Underwriters hereby instruct the Escrow Agent, upon receipt of such sum from the Underwriters, to confirm such receipt by executing and delivering to the Pass Through Trustee an Escrow Receipt in the form of Exhibit A hereto (an “Escrow Receipt”), (a) to be affixed by the Pass Through Trustee to each Certificate and (b) to evidence the same percentage interest (the “Escrow Interest”) in the Account Amounts (as defined below) as the Fractional Undivided Interest in the Pass Through Trust evidenced by the Certificate to which it is to be affixed.  The Escrow Agent shall provide to the Pass Through Trustee for attachment to each Certificate newly issued under and in accordance with the Pass Through Trust Agreement an executed Escrow Receipt as the Pass Through Trustee may from time to time request of the Escrow Agent.  Each Escrow Receipt shall be registered by the Escrow Agent in a register (the “Register”) maintained by the Escrow Agent in the name of the same holder that is the holder of the Certificate to which it is attached and may not thereafter be detached from such Certificate to which it is to be affixed prior to the distribution of the Final Withdrawal (the “Final Distribution”).  After the Final Distribution, no additional Escrow Receipts shall be issued and the Pass Through Trustee shall request the return to the Escrow Agent for cancellation of all outstanding Escrow Receipts.

 

Section 1.04.    Payments to Receiptholders.  All payments and distributions made to holders of an Escrow Receipt (collectively “Receiptholders”) in respect of the Escrow Receipt shall be made only from amounts deposited in the Paying Agent Account (as defined below) (“Account Amounts”).  Each Receiptholder, by its acceptance of an Escrow Receipt, agrees that (a) it will look solely to the Account Amounts for any payment or distribution due to such Receiptholder pursuant to the terms of the Escrow Receipt and this Agreement (subject to Section 15 hereof) and (b) it will have no recourse to Continental, the Pass Through Trustee, the Paying Agent or the Escrow Agent, except as expressly provided herein or in the Pass Through Trust Agreement.  No Receiptholder shall have any right to vote or in any manner otherwise control the operation and management of the Paying Agent Account or the obligations of the parties hereto, nor shall anything set forth herein, or contained in the terms of the Escrow Receipt, be construed so as to constitute the Receiptholders from time to time as partners or members of an association.

 

Section 1.05.    Mutilated, Destroyed, Lost or Stolen Escrow Receipt.  If (a) any mutilated Escrow Receipt is surrendered to the Escrow Agent or the Escrow Agent receives evidence to its satisfaction of the destruction, loss or theft of any Escrow Receipt and (b) there is delivered to the Escrow Agent and the Pass Through Trustee such security, indemnity or bond, as may be required by them to hold each of them harmless, then, absent notice to the Escrow Agent or the Pass Through Trustee that such destroyed, lost or stolen Escrow Receipt has been acquired by a bona fide purchaser, and provided that the requirements of Section 8-405 of the Uniform Commercial Code in effect in any applicable jurisdiction are met, the Escrow Agent

 

  

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shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Escrow Receipt, a new Escrow Receipt or Escrow Receipts and of like Escrow Interest in the Account Amounts and bearing a number not contemporaneously outstanding.

 

In connection with the issuance of any new Escrow Receipt under this Section 1.05, the Escrow Agent may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Pass Through Trustee and the Escrow Agent) connected therewith.

 

Any duplicate Escrow Receipt issued pursuant to this Section 1.05 shall constitute conclusive evidence of the appropriate Escrow Interest in the Account Amounts, as if originally issued, whether or not the lost, stolen or destroyed Escrow Receipt shall be found at any time.

 

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Escrow Receipts.

 

Section 1.06.    Additional Escrow Amounts.  On the date of any Purchase Withdrawal, the Pass Through Trustee may re-deposit with the Depositary some or all of the amounts so withdrawn in accordance with Section 2.4 of the Deposit Agreement.

 

Section 1.07.    Resignation or Removal of Escrow Agent.  Subject to the appointment and acceptance of a successor Escrow Agent as provided below, the Escrow Agent may resign at any time by giving 30 days’ prior written notice thereof to the Investors, but may not otherwise be removed except for cause by the written consent of the Investors with respect to Investors representing Escrow Interests aggregating not less than a majority in interest in the Account Amounts (an “Action of Investors”).  Upon any such resignation or removal, the Investors, by an Action of Investors, shall have the right to appoint a successor Escrow Agent.  If no successor Escrow Agent shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Escrow Agent’s giving of notice of resignation or the removal of the retiring Escrow Agent, then the retiring Escrow Agent may appoint a successor Escrow Agent.  Any successor Escrow Agent shall be a bank which has an office in the United States with a combined capital and surplus of at least $100,000,000.  Upon the acceptance of any appointment as Escrow Agent hereunder by a successor Escrow Agent, such successor Escrow Agent shall enter into such documents as the Pass Through Trustee shall require and shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Escrow Agent, and the retiring Escrow Agent shall be discharged from its duties and obligations hereunder.  No resignation or removal of the Escrow Agent shall be effective unless a written confirmation shall have been obtained from each of Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, that the replacement of the Escrow Agent with the successor Escrow Agent will not result in (a) a reduction of the rating for the Certificates below the then current rating for the Certificates or (b) a withdrawal or suspension of the rating of the Certificates.

 

Section 1.08.    Persons Deemed Owners.  Prior to due presentment of a Certificate for registration of transfer, the Escrow Agent and the Paying Agent may treat the Person in whose name any Escrow Receipt is registered (as of the day of determination) as the owner of such Escrow Receipt for the purpose of receiving distributions pursuant to this Agreement and

 

  

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for all other purposes whatsoever, and neither the Escrow Agent nor the Paying Agent shall be affected by any notice to the contrary.

 

Section 1.09.    Further Assurances.  The Escrow Agent agrees to take such actions, and execute such other documents, as may be reasonably requested by the Pass Through Trustee in order to effectuate the purposes of this Agreement and the performance by the Escrow Agent of its obligations hereunder.

 

SECTION 2.     Paying Agent.

 

Section 2.01.    Appointment of Paying Agent.  The Escrow Agent hereby irrevocably appoints and authorizes the Paying Agent to act as its paying agent hereunder, for the benefit of the Investors, for such specific purposes and with such powers as are specifically delegated to the Paying Agent by the terms of this Agreement, together with such other powers as are reasonably incidental thereto.  Any and all money received and held by the Paying Agent under this Agreement or the Deposit Agreement shall be held in the Paying Agent Account for the benefit of the Investors.   The Paying Agent (which term as used in this sentence shall include reference to its affiliates and its own and its affiliates’ officers, directors, employees and agents):  (a) shall have no duties or responsibilities except those expressly set forth in this Agreement, and shall not by reason of this Agreement be a trustee for the Escrow Agent; (b) shall not be responsible to the Escrow Agent for any recitals, statements, representations or warranties of any person other than itself contained in this Agreement or for the failure by the Escrow Agent or any other person or entity (other than the Paying Agent) to perform any of its obligations hereunder (whether or not the Paying Agent shall have any knowledge thereof); and (c) shall not be responsible for any action taken or omitted to be taken by it hereunder or provided for herein or in connection herewith, except for its own willful misconduct or gross negligence (or simple negligence in connection with the handling of funds).

 

Section 2.02.    Establishment of Paying Agent Account.  The Paying Agent shall establish a deposit account (the “Paying Agent Account”) at Wilmington Trust Company in the name of the Escrow Agent.  It is expressly understood by the parties hereto that the Paying Agent is acting as the paying agent of the Escrow Agent hereunder and that no amounts on deposit in the Paying Agent Account constitute part of the Trust Property.

 

Section 2.03.    Payments from Paying Agent Account.  The Escrow Agent hereby irrevocably instructs the Paying Agent, and the Paying Agent agrees to act, as follows:

 

(a)           On each Interest Payment Date (as defined in the Deposit Agreement) or as soon thereafter as the Paying Agent has confirmed receipt in the Paying Agent Account from the Depositary of any amount in respect of accrued interest on the Deposits, the Paying Agent shall distribute out of the Paying Agent Account the entire amount deposited therein by the Depositary.  There shall be so distributed to each Receiptholder of record on the 15th day (whether or not a Business Day) preceding such Interest Payment Date by check mailed to such Receiptholder, at the address appearing in the Register, such Receiptholder’s pro rata share (based on the Escrow Interest in the Account Amounts held by such Receiptholder) of the total amount of interest deposited by the Depositary in the Paying Agent Account on such date, except that, with respect to Escrow Receipts registered on the Record Date in the name of The Depository Trust

 

  

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Company (“DTC”), such distribution shall be made by wire transfer in immediately available funds to the account designated by DTC.

 

(b)           Upon the confirmation by the Paying Agent of receipt in the Paying Agent Account from the Depositary of any amount in respect of the Final Withdrawal, the Paying Agent shall forthwith distribute the entire amount of the Final Withdrawal deposited therein by the Depositary.  There shall be so distributed to each Receiptholder of record on the 15th day (whether or not a Business Day) preceding the Final Withdrawal Date by check mailed to such Receiptholder, at the address appearing in the Register, such Receiptholder’s pro rata share (based on the Escrow Interest in the Account Amounts held by such Receiptholder) of the total amount in the Paying Agent Account on account of such Final Withdrawal, except that, with respect to Escrow Receipts registered on the Record Date in the name of DTC, such distribution shall be made by wire transfer in immediately available funds to the account designated by DTC.

 

(c)           If any payment of interest or principal in respect of the Final Withdrawal is not received by the Paying Agent within five days of the applicable date when due, then it shall be distributed to Receiptholders after actual receipt by the Paying Agent on the same basis as a Special Payment is distributed under the Pass Through Trust Agreement.

 

(d)           The Paying Agent shall include with any check mailed pursuant to this Section any notice required to be distributed under the Pass Through Trust Agreement that is furnished to the Paying Agent by the Pass Through Trustee.

 

Section 2.04.    Withholding Taxes.  The Paying Agent shall exclude and withhold from each distribution of accrued interest on the Deposits (as defined in the Deposit Agreement) and any amount in respect of the Final Withdrawal any and all withholding taxes applicable thereto as required by law.  The Paying Agent agrees to act as such withholding agent and, in connection therewith, whenever any present or future taxes or similar charges are required to be withheld with respect to any amounts payable in respect of the Deposits (as defined in the Deposit Agreement) or the escrow amounts, to withhold such amounts and timely pay the same to the appropriate authority in the name of and on behalf of the Receiptholders, that it will file any necessary withholding tax returns or statements when due, and that, as promptly as possible after the payment thereof, it will deliver to each such Receiptholder appropriate documentation showing the payment thereof, together with such additional documentary evidence as such Receiptholder may reasonably request from time to time.  The Paying Agent agrees to file any other information reports as it may be required to file under United States law.

 

Section 2.05.    Resignation or Removal of Paying Agent.  Subject to the appointment and acceptance of a successor Paying Agent as provided below, the Paying Agent may resign at any time by giving 30 days’ prior written notice thereof to the Escrow Agent, but may not otherwise be removed except for cause by the Escrow Agent.  Upon any such resignation or removal, the Escrow Agent shall have the right to appoint a successor Paying Agent.  If no successor Paying Agent shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Paying Agent’s giving of notice of resignation or the removal of the retiring Paying Agent, then the retiring Paying Agent may appoint a successor Paying Agent.  Any successor Paying Agent shall be a bank which has an office in the United States with a combined capital and surplus of at least $100,000,000.  Upon the acceptance of any

 

  

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appointment as Paying Agent hereunder by a successor Paying Agent, such successor Paying Agent shall enter into such documents as the Escrow Agent shall require and shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Paying Agent, and the retiring Paying Agent shall be discharged from its duties and obligations hereunder.

 

Section 2.06.    Notice of Final Withdrawal.  Promptly after receipt by the Paying Agent of notice that the Escrow Agent has requested a Final Withdrawal or that a Final Withdrawal will be made, the Paying Agent shall cause notice of the distribution of the Final Withdrawal to be mailed to each of the Receiptholders at its address as it appears in the Register.  Such notice shall be mailed not less than 15 days prior to the Final Withdrawal Date.  Such notice shall set forth:

 

(i)           the Final Withdrawal Date and the date for determining Receiptholders of record who shall be entitled to receive distributions in respect of the Final Withdrawal,

 

(ii)           the amount of the payment in respect of the Final Withdrawal for each $1,000 face amount Certificate (based on information provided by the Pass Through Trustee) and the amount thereof constituting unused Deposits (as defined in the Deposit Agreement) and interest thereon, and

 

(iii)           if the Final Withdrawal Date is the same date as a Regular Distribution Date, the total amount to be received on such date for each $1,000 face amount Certificate (based on information provided by the Pass Through Trustee).

 

Such mailing may include any notice required to be given to Certificateholders in connection with such distribution pursuant to the Pass Through Trust Agreement.

 

SECTION 3.     Payments.  If, notwithstanding the instructions in Section 4 of the Deposit Agreement that all amounts payable to the Escrow Agent under the Deposit Agreement be paid by the Depositary directly to the Paying Agent, the Pass Through Trustee or a Replacement Depositary (depending on the circumstances), the Escrow Agent receives any payment thereunder, then the Escrow Agent shall forthwith pay such amount in Dollars and in immediately available funds by wire transfer to (a) in the case of a payment of accrued interest on the Deposits (as defined in the Deposit Agreement) or any Final Withdrawal, directly to the Paying Agent Account, (b) in the case of any Purchase Withdrawal, directly to the Pass Through Trustee or its designee as specified and in the manner provided in the Applicable Notice of Purchase Withdrawal and (c) in the case of any Replacement Withdrawal, to the Replacement Depositary as provided in the Replacement Depositary Agreement.  The Escrow Agent hereby waives any and all rights of set-off, combination of accounts, right of retention or similar right (whether arising under applicable law, contract or otherwise) it may have against amounts payable to the Paying Agent howsoever arising.

 

SECTION 4.     Other Actions.  The Escrow Agent shall take such other actions under or in respect of the Deposit Agreement (including, without limitation, the enforcement of the obligations of the Depositary thereunder) as the Investors, by an Action of Investors, may from time to time request.

 

  

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SECTION 5.     Representations and Warranties of the Escrow Agent.  The Escrow Agent represents and warrants to Continental, the Investors, the Paying Agent and the Pass Through Trustee as follows:

 

(i)           it is a national banking association duly organized and validly existing in good standing under the laws of the United States of America;

 

(ii)           it has full power, authority and legal right to conduct its business and operations as currently conducted and to enter into and perform its obligations under this Agreement, the Deposit Agreement and any Replacement Deposit Agreement;

 

(iii)           the execution, delivery and performance of each of this Agreement, the Deposit Agreement and any Replacement Deposit Agreement have been duly authorized by all necessary corporate action on the part of it and do not require any stockholder approval, or approval or consent of any trustee or holder of any indebtedness or obligations of it, and each such document (other than a Replacement Deposit Agreement) has been duly executed and delivered by it and constitutes its legal, valid and binding obligations enforceable against it in accordance with the terms hereof or thereof except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws or equitable principles of general application to or affecting the enforcement of creditors’ rights generally (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

(iv)           no authorization, consent or approval of or other action by, and no notice to or filing with, any United States federal or state governmental authority or regulatory body is required for the execution, delivery or performance by it of this Agreement, the Deposit Agreement or any Replacement Deposit Agreement;

 

(v)           neither the execution, delivery or performance by it of this Agreement, the Deposit Agreement or any Replacement Deposit Agreement, nor compliance with the terms and provisions hereof or thereof, conflicts or will conflict with or results or will result in a breach or violation of any of the terms, conditions or provisions of, or will require any consent or approval under, any law, governmental rule or regulation or the charter documents, as amended, or bylaws, as amended, of it or any similar instrument binding on it or any order, writ, injunction or decree of any court or governmental authority against it or by which it or any of its properties is bound or any indenture, mortgage or contract or other agreement or instrument to which it is a party or by which it or any of its properties is bound, or constitutes or will constitute a default thereunder or results or will result in the imposition of any lien upon any of its properties; and

 

(vi)           there are no pending or, to its knowledge, threatened actions, suits, investigations or proceedings (whether or not purportedly on behalf of it) against or affecting it or any of its property before or by any court or administrative agency which, if adversely determined, (A) would adversely affect the ability of it to perform its obligations under this Agreement, the Deposit

 

  

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Agreement or any Replacement Deposit Agreement or (B) would call into question or challenge the validity of this Agreement or the Deposit Agreement or the enforceability hereof or thereof in accordance with the terms hereof or thereof, nor is the Escrow Agent in default with respect to any order of any court, governmental authority, arbitration board or administrative agency so as to adversely affect its ability to perform its obligations under this Agreement or the Deposit Agreement.

 

SECTION 6.     Representations and Warranties of the Paying Agent.  The Paying Agent represents and warrants to Continental, the Investors, the Escrow Agent and the Pass Through Trustee as follows:

 

(i)           it is a Delaware banking company duly organized and validly existing in good standing under the laws of its jurisdiction of incorporation;

 

(ii)           it has full power, authority and legal right to conduct its business and operations as currently conducted and to enter into and perform its obligations under this Agreement;

 

(iii)           the execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate action on the part of it and does not require any stockholder approval, or approval or consent of any trustee or holder of any indebtedness or obligations of it, and such document has been duly executed and delivered by it and constitutes its legal, valid and binding obligations enforceable against it in accordance with the terms hereof except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws or equitable principles of general application to or affecting the enforcement of creditors’ rights generally (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

(iv)           no authorization, consent or approval of or other action by, and no notice to or filing with, any United States federal or state governmental authority or regulatory body is required for the execution, delivery or performance by it of this Agreement;

 

(v)           neither the execution, delivery or performance by it of this Agreement, nor compliance with the terms and provisions hereof, conflicts or will conflict with or results or will result in a breach or violation of any of the terms, conditions or provisions of, or will require any consent or approval under, any law, governmental rule or regulation or the charter documents, as amended, or bylaws, as amended, of it or any similar instrument binding on it or any order, writ, injunction or decree of any court or governmental authority against it or by which it or any of its properties is bound or any indenture, mortgage or contract or other agreement or instrument to which it is a party or by which it or any of its properties is bound, or constitutes or will constitute a default thereunder or results or will result in the imposition of any lien upon any of its properties; and

 

  

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(vi)           there are no pending or, to its knowledge, threatened actions, suits, investigations or proceedings (whether or not purportedly on behalf of it) against or affecting it or any of its property before or by any court or administrative agency which, if adversely determined, (A) would adversely affect the ability of it to perform its obligations under this Agreement or (B) would call into question or challenge the validity of this Agreement or the enforceability hereof in accordance with the terms hereof, nor is the Paying Agent in default with respect to any order of any court, governmental authority, arbitration board or administrative agency so as to adversely affect its ability to perform its obligations under this Agreement.

 

SECTION 7.     Indemnification.  Except for actions expressly required of the Escrow Agent or the Paying Agent hereunder, each of the Escrow Agent and the Paying Agent shall in all cases be fully justified in failing or refusing to act hereunder unless it shall have been indemnified by the party requesting such action in a manner reasonably satisfactory to it against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  In the event Continental requests any amendment to any Operative Agreement (as defined in the Note Purchase Agreement), the Pass Through Trustee agrees to pay all reasonable fees and expenses (including, without limitation, fees and disbursements of counsel) of the Escrow Agent and the Paying Agent in connection therewith.

 

SECTION 8.    Amendment, Etc.  Upon request of the Pass Through Trustee and approval by an Action of Investors, the Escrow Agent and Paying Agent shall enter into an amendment to this Agreement, so long as such amendment does not adversely affect the rights or obligations of the Escrow Agent or the Paying Agent, provided that upon request of the Pass Through Trustee and without any consent of the Investors, the Escrow Agent and Paying Agent shall enter into an amendment to this Agreement for any of the following purposes:

 

(1)           to correct or supplement any provision in this Agreement which may be defective or inconsistent with any other provision herein or to cure any ambiguity or correct any mistake or to modify any other provision with respect to matters or questions arising under this Agreement, provided that any such action shall not materially adversely affect the interests of the Investors; or

 

(2)           to comply with any requirement of the SEC, applicable law, rules or regulations of any exchange or quotation system on which the Certificates are listed or any regulatory body; or

 

(3)           to evidence and provide for the acceptance of appointment under this Agreement of a successor Escrow Agent, successor Paying Agent or successor Pass Through Trustee.

 

SECTION 9.    Notices.  Unless otherwise expressly provided herein, any notice or other communication under this Agreement shall be in writing (including by facsimile) and shall be deemed to be given and effective upon receipt thereof.  All notices shall be sent to (a) in the case of the Investors, as their respective addresses shall appear in the Register, (b) in the case of the Escrow Agent, Wells Fargo Bank Northwest, National Association, 299 South Main Street, 12th Floor, Salt Lake City, UT 84111, Attention: Corporate Trust Services (Telecopier:  (801) 246-5053), (c) in the case of the Pass Through Trustee, Wilmington Trust Company, 1100 North

 

  

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Market Street, Wilmington, DE 19890-1605, Attention:  Corporate Trust Administration (Telecopier: (302) 636-4140) or (d) in the case of the Paying Agent, Wilmington Trust Company, 1100 North Market Street, Wilmington, DE 19890-1605, Attention:  Corporate Trust Administration (Telecopier: (302) 636-4140), in each case with a copy to Continental, Continental Airlines, Inc., 1600 Smith Street, Dept. HQS-FN, Houston, TX 77002, Attention: Treasurer (Telecopier:  (713) 324-2447) (or at such other address as any such party may specify from time to time in a written notice to the other parties).  On or prior to the execution of this Agreement, the Pass Through Trustee has delivered to the Escrow Agent a certificate containing specimen signatures of the representatives of the Pass Through Trustee who are authorized to give notices and instructions with respect to this Agreement.  The Escrow Agent may conclusively rely on such certificate until the Escrow Agent receives written notice from the Pass Through Trustee to the contrary.

 

The Escrow Agent shall notify the Receiptholders in the event of a default in the payment of interest on the Deposits when due in accordance with the Deposit Agreement or a default in the payment of any Final Withdrawal in accordance with the terms of the Deposit Agreement and this Agreement and shall promptly forward to Receiptholders upon receipt copies of all written communications relating to any payments due to the Receiptholders in respect of the Deposits.

 

SECTION 10.   Transfer.  No party hereto shall be entitled to assign or otherwise transfer this Agreement (or any interest herein) other than (in the case of the Escrow Agent) to a successor escrow agent under Section 1.07 hereof or (in the case of the Paying Agent) to a successor paying agent under Section 2.05 hereof, and any purported assignment in violation thereof shall be void.  This Agreement shall be binding upon the parties hereto and their respective successors and (in the case of the Escrow Agent and the Paying Agent) their respective permitted assigns.  Upon the occurrence of the Transfer (as defined below) contemplated by the Assignment and Assumption Agreement (as defined below), the Pass Through Trustee shall (without further act) be deemed to have transferred all of its right, title and interest in and to this Agreement to the trustee of the Successor Trust (as defined below) and, thereafter, the trustee of the Successor Trust shall be deemed to be the “Pass Through Trustee” hereunder with the rights and obligations of the “Pass Through Trustee” hereunder and each reference herein to “Continental Airlines Pass Through Trust 2010-1B-O” shall be deemed to be a reference to “Continental Airlines Pass Through Trust 2010-1B-S”.  The parties hereto hereby acknowledge and consent to the Transfer contemplated by the Assignment and Assumption Agreement.  As used herein, “Transfer” means the transfers of the assets to the Successor Trust contemplated by the Assignment and Assumption Agreement; “Assignment and Assumption Agreement” means the Assignment and Assumption Agreement to be entered into between the Pass Through Trustee and the trustee of the Successor Trust, substantially in the form of Exhibit C to the Trust Supplement; “Successor Trust” means the Continental Airlines Pass Through Trust 2010-1B-S.

 

SECTION 11.   Entire Agreement.  This Agreement sets forth all of the promises, covenants, agreements, conditions and understandings among the Escrow Agent, the Paying Agent, the Underwriters and the Pass Through Trustee with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and undertakings, inducements or conditions, express or implied, oral or written.

 

  

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SECTION 12.   Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

SECTION 13.   Waiver of Jury Trial Right.  EACH OF THE ESCROW AGENT, THE PAYING AGENT, THE INVESTORS AND THE PASS THROUGH TRUSTEE ACKNOWLEDGES AND ACCEPTS THAT IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT SUCH PARTY IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY JURY.

 

SECTION 14.   Counterparts.  This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one instrument.

 

SECTION 15.   Rights of Holders.  Each Receiptholder shall have the right (individually and without the need for any other action of any Person, including the Escrow Agent or any other Receiptholder), upon any default in the payment of interest on the Deposits when due by the Depositary in accordance with the Deposit Agreement, or upon any default in the payment of the Final Withdrawal when due by the Depositary in accordance with the terms of the Deposit Agreement and this Agreement, (i) to proceed directly against the Depositary by making a demand to the Depositary for the portion of such payment that would have been distributed to such Receiptholder pursuant to this Agreement or by bringing suit to enforce  payment of such portion and (ii) to enforce any other rights that the Escrow Agent may have in respect of amounts due from the Depositary under the Deposit Agreement and this Agreement that would have been distributed to such Receiptholder pursuant to this Agreement.  Any recovery on such enforcement action shall belong solely to the Receiptholder who brought such action, and not to the Escrow Agent or any other Receiptholder individually or to Receiptholders as a group.

 

  

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IN WITNESS WHEREOF, the Escrow Agent, the Paying Agent, the Underwriters and the Pass Through Trustee have caused this Escrow and Paying Agent Agreement (Class B) to be duly executed as of the day and year first above written.

 

	  	
WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,

as Escrow Agent

	  	  
	  	
By

	 /s/ Scott Rosevear 
	  	  	
Name:

	 Scott Rosevear 
	  	  	
Title:

	 Vice President 

	  	
MORGAN STANLEY & CO. INCORPORATED,

as an Underwriter

	  	  
	  	
By

	 /s/ Thomas F. Cahill 
	  	  	
Name:

	 Thomas F. Cahill 
	  	  	
Title:

	 Managing Director 

	  	
CREDIT SUISSE SECURITIES (USA) LLC,

as an Underwriter

	  	  
	  	
By

	 /s/ Thomas L. Smith
	  	  	
Name:

	 Thomas L. Smith
	  	  	
Title:

	 Managing Director 

	  	
GOLDMAN, SACHS & CO.,

as an Underwriter

	  	  
	  	
By

	 /s/ Goldman, Sachs & Co. 
	  	  	
 (Goldman, Sachs & Co.)

	  	  	
 

	  

	  	
DEUTSCHE BANK SECURITIES INC.,

as an Underwriter

	  	  
	  	
By

	 /s/ Patrick Käufer
	  	  	
Name:

	 Patrick Käufer 
	  	  	
Title:

	 Managing Director 

	  	
By

	 /s/ Thomas Turner
	  	  	
Name:

	 Thomas Turner
	  	  	
Title:

	 Director 

 

 

 

 

  

Escrow and Paying Agent Agreement (Class B)

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J.P. MORGAN SECURITIES LLC,

as an Underwriter

	  	  
	  	
By

	 /s/ Johan Visser 
	  	  	
Name:

	 Johan Visser 
	  	  	
Title:

	 Executive Director 

	  	
WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Pass Through Trustee for and on behalf of Continental Airlines Pass Through Trust 2010-1B-O

	  	  
	  	  
	  	
By

	 /s/ Jacqueline Solone 
	  	  	
Name:

	 Jacqueline Solone 
	  	  	
Title:

	 Financial Services Officer 

	  	
WILMINGTON TRUST COMPANY,

     as Paying Agent

	  	  
	  	  
	  	
By

	 /s/ Jacqueline Solone 
	  	  	
Name:

	 Jacqueline Solone 
	  	  	
Title:

	 Financial Services Officer 

 

 

 

  

Escrow and Paying Agent Agreement (Class B)

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 EXHIBIT A

 

CONTINENTAL AIRLINES 2010-1B ESCROW RECEIPT

 

No. __

 

This Escrow Receipt evidences a fractional undivided interest in amounts (“Account Amounts”) from time to time deposited on behalf of the holder hereof into a certain paying agent account (the “Paying Agent Account”) described in the Escrow and Paying Agent Agreement (Class B) dated as of December 2, 2010 (as amended, modified or supplemented from time to time, the “Escrow and Paying Agent Agreement”) among Wells Fargo Bank Northwest, National Association, as Escrow Agent (in such capacity, together with its successors in such capacity, the “Escrow Agent”), Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, as Underwriters, Wilmington Trust Company, as Pass Through Trustee (in such capacity, together with its successors in such capacity, the “Pass Through Trustee”) and Wilmington Trust Company, as paying agent (in such capacity, together with its successors in such capacity, the “Paying Agent”).  Capitalized terms not defined herein shall have the meanings assigned to them in the Escrow and Paying Agent Agreement.

 

This Escrow Receipt is issued under and is subject to the terms, provisions and conditions of the Escrow and Paying Agent Agreement.  By virtue of its acceptance hereof the holder of this Escrow Receipt assents and agrees to be bound by the provisions of the Escrow and Paying Agent Agreement and this Escrow Receipt.

 

This Escrow Receipt represents a fractional undivided interest in amounts deposited from time to time in the Paying Agent Account, and grants or represents no rights, benefits or interests of any kind in respect of any assets or property other than such amounts.  This Escrow Receipt evidences the same percentage interest in the Account Amounts as the Fractional Undivided Interest in the Pass Through Trust evidenced by the Certificate to which this Escrow Receipt is affixed.

 

All payments and distributions made to Receiptholders in respect of the Escrow Receipt shall be made only from Account Amounts deposited in the Paying Agent Account.  The holder of this Escrow Receipt, by its acceptance of this Escrow Receipt, agrees that it will look solely to the Account Amounts for any payment or distribution due to it pursuant to this Escrow Receipt (or, in case the Depositary shall default in its obligation to make a payment under the Deposit Agreement that would be an Account Amount, to the Depositary) and that it will not have any recourse to Continental, the Pass Through Trustee, the Paying Agent or the Escrow Agent, except as expressly provided herein or in the Pass Through Trust Agreement.  No Receiptholder of this Escrow Receipt shall have any right to vote or in any manner otherwise control the operation and management of the Paying Agent Account, nor shall anything set forth herein, or contained in the terms of this Escrow Receipt, be construed so as to constitute the Receiptholders from time to time as partners or members of an association.

 

This Escrow Receipt may not be assigned or transferred except in connection with the assignment or transfer of the Certificate to which this Escrow Receipt is affixed.  After payment to the holder hereof of its Escrow Interest in the Final Distribution, upon the request of

 

  

  

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the Pass Through Trustee, the holder hereof will return this Escrow Receipt to the Pass Through Trustee.

 

The Paying Agent may treat the person in whose name the Certificate to which this Escrow Receipt is attached as the owner hereof for all purposes, and the Paying Agent shall not be affected by any notice to the contrary.

 

THIS ESCROW RECEIPT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

  

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IN WITNESS WHEREOF, the Escrow Agent has caused this Escrow Receipt to be duly executed.

 

Dated:  [__________], 2010

 

	  	
WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,

     as Escrow Agent

	  	  
	  	
By

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

  

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 EXHIBIT B

 

WITHDRAWAL CERTIFICATE

(Class B)

 

Wells Fargo Bank Northwest, National Association

as Escrow Agent

 

Dear Sirs:

 

Reference is made to the Escrow and Paying Agent Agreement, dated as of December 2, 2010 (the “Agreement”).  [We hereby certify to you that the conditions to the obligations of the undersigned to execute a Participation Agreement pursuant to the Note Purchase Agreement have been satisfied]  [We hereby notify you that the Depositary is being replaced in accordance with Section 4(a)(vii) of the Note Purchase Agreement].  Pursuant to Section [1.02(c)][1.02(d)] of the Agreement, please execute the attached [Notice of Purchase Withdrawal][Notice of Replacement Withdrawal] and immediately transmit by facsimile to the Depositary, at [__________], Attention:  [__________].

 

 

	  	
Very truly yours,

 

WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Pass Through Trustee

	  	  
	  	  
	  	
By

	  
	  	  	
Name:

	  
	  	  	
Title:

	  

 

 

Dated:  ____________, 200_e61238368ex4_12.htm

Exhibit 4.12

________________________________________________________________

NOTE PURCHASE AGREEMENT

Dated as of December 2, 2010

Among

CONTINENTAL AIRLINES, INC.,

WILMINGTON TRUST COMPANY,

as Pass Through Trustee under each of the

Pass Through Trust Agreements

WILMINGTON TRUST COMPANY,

as Subordination Agent

WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,

as Escrow Agent

and

WILMINGTON TRUST COMPANY,

as Paying Agent

________________________________________________________________

Note Purchase Agreement 10-1

  

  

INDEX TO NOTE PURCHASE AGREEMENT

 

	  	  	
Page

	
SECTION 1.

	
Financing of Aircraft

	
3

	
SECTION 2.

	
Conditions Precedent

	
7

	
SECTION 3.

	
Representations and Warranties

	
7

	
SECTION 4.

	
Covenants

	
12

	
SECTION 5.

	
Notices

	
16

	
SECTION 6.

	
Expenses

	
16

	
SECTION 7.

	
Further Assurances

	
17

	
SECTION 8.

	
Miscellaneous

	
17

	
SECTION 9.

	
Governing Law

	
19

 

Schedules

 

	
Schedule I

	
Aircraft

	  
	
Schedule II

	
Trust Supplements

	  
	
Schedule III

	
Required Terms

	  

 

Annex

 

	
Annex A

	
Definitions

	  

 

Exhibits

 

	
Exhibit A

	
Form of Closing Notice

	  
	
Exhibit B

	
Form of Participation Agreement

	  
	
Exhibit C

	
Form of Indenture

	  

 

Note Purchase Agreement 10-1

  

  

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NOTE PURCHASE AGREEMENT

 

This NOTE PURCHASE AGREEMENT, dated as of December 2, 2010, among (i)CONTINENTAL AIRLINES, INC., a Delaware corporation (the "Company"), (ii)WILMINGTON TRUST COMPANY ("WTC"), a Delaware banking corporation, not in its individual capacity except as otherwise expressly provided herein, but solely as trustee (in such capacity together with its successors in such capacity, the "Pass Through Trustee") under each of the two separate Pass Through Trust Agreements (as defined below), (iii) WILMINGTON TRUST COMPANY, a Delaware banking corporation, as subordination agent and trustee (in such capacity together with its successors in such capacity, the "Subordination Agent") under the Intercreditor Agreement (as defined below), (iv) WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking association, as Escrow Agent (in such capacity together with its successors in such capacity, the "Escrow Agent"), under each of the Escrow and Paying Agent Agreements (as defined below) and (v) WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Paying Agent (in such capacity together with its successors in such capacity, the "Paying Agent") under each of the Escrow and Paying Agent Agreements.

 

W I T N E S S E T H:

 

WHEREAS, capitalized terms used but not defined herein shall have the meanings ascribed to such terms in Annex A hereto;

 

WHEREAS, the Company (i) is currently the owner of five Boeing 767-424ER aircraft, four Boeing 737-924 aircraft and three Boeing 737-824 aircraft listed in Part A of Schedule I hereto (the "Owned Aircraft"), certain of which are subject to an existing security interest, and (ii) has obtained commitments from the Manufacturer pursuant to the Aircraft Purchase Agreement for the delivery of the three Boeing 737-924ER aircraft and three Boeing 737-824 aircraft listed in Part B of Schedule I hereto (together with any aircraft substituted therefor in accordance with the Aircraft Purchase Agreement prior to the delivery thereof, the "New Aircraft" and, together with the Owned Aircraft, the “Aircraft”);

 

WHEREAS, pursuant to this Agreement the Company wishes to finance (i) each Owned Aircraft after any existing security interest on such Owned Aircraft has been discharged and (ii) a portion of the purchase price of each New Aircraft;

Note Purchase Agreement 10-1

  

  

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WHEREAS, pursuant to the Basic Pass Through Trust Agreement and each of the Trust Supplements set forth in Schedule II hereto, and concurrently with the execution and delivery of this Agreement, separate grantor trusts (collectively, the "Pass Through Trusts" and, individually, a "Pass Through Trust") have been created to facilitate certain of the transactions contemplated hereby, including, without limitation, the issuance and sale of pass through certificates pursuant thereto (collectively, the "Certificates") to provide for a portion of the financing of the Aircraft contemplated hereby;

 

WHEREAS, the Company has entered into the Underwriting Agreement, dated as of November 17, 2010 (the "Underwriting Agreement") with the Underwriters named therein (the "Underwriters"), which provides that the Company will cause the Pass Through Trustee under the Class A Pass Through Trust (the "Class A Pass Through Trustee") and the Pass Through Trustee under the Class B Pass Through Trust (the "Class B Pass Through Trustee") to issue and sell the Class A Certificates and the Class B Certificates, respectively, to the Underwriters on the Issuance Date;

 

WHEREAS, concurrently with the execution and delivery of this Agreement, (i) the Escrow Agent and the Depositary have entered into two Deposit Agreements, dated as of the Issuance Date, one each relating to the Class A and Class B Pass Through Trust (together, the "Deposit Agreements") whereby the Escrow Agent agreed to direct the Underwriters to make certain deposits referred to therein on the Issuance Date (the "Initial Deposits") and to permit the applicable Pass Through Trustees to make additional deposits from time to time thereafter (the Initial Deposits together with such additional deposits are collectively referred to as the "Deposits") and (ii) the applicable Pass Through Trustees, Underwriters, Paying Agents and Escrow Agents have entered into two Escrow and Paying Agent Agreements, dated as of the Issuance Date, one each relating to the Class A and Class B Pass Through Trust (together, the "Escrow and Paying Agent Agreements"), whereby, among other things, (a) the Underwriters agreed to deliver an amount equal to the amount of the Initial Deposits to the Depositary on behalf of the applicable Escrow Agent and (b) the applicable Escrow Agent, upon the Depositary receiving such amount, agreed to deliver escrow receipts to be affixed to each Certificate;

 

WHEREAS, upon receipt of a Closing Notice with respect to an Aircraft, subject to the terms and conditions of this

Note Purchase Agreement 10-1

  

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Agreement, the applicable Pass Through Trustees will enter into the applicable Financing Agreements relating to such Aircraft;

 

WHEREAS, upon the financing of each Aircraft, the Class A and Class B Pass Through Trustees each will fund its purchase of Equipment Notes with the proceeds of one or more Deposits withdrawn by the applicable Escrow Agent under the related Deposit Agreement bearing the same interest rate as the Certificates issued by the applicable Pass Through Trust (or, if financed on the Issuance Date, with a portion of the proceeds from the offering of the Certificates); and

 

WHEREAS, concurrently with the execution and delivery of this Agreement, (i) Landesbank Hessen-Thüringen Girozentrale (the "Liquidity Provider"), has entered into two revolving credit agreements, one each for the benefit of the Certificateholders of the Class A and Class B Pass Through Trusts, in each case, with the Subordination Agent, as agent for the Pass Through Trustee on behalf of each such Pass Through Trust (each such revolving credit agreement with the Liquidity Provider, a "Liquidity Facility") and (ii) the Pass Through Trustees, the Liquidity Provider and the Subordination Agent have entered into the Intercreditor Agreement, dated as of the date hereof (the "Intercreditor Agreement").

 

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

 

SECTION 1.  Financing of Aircraft.  (a)  The Company confirms that (i) it currently owns the Owned Aircraft and (ii) it has entered into the Aircraft Purchase Agreement with the Manufacturer pursuant to which the Company has agreed to purchase, and the Manufacturer has agreed to deliver, the New Aircraft in the months specified in Schedule I hereto, all on and subject to terms and conditions specified in the Aircraft Purchase Agreement.  The Company agrees to finance the Aircraft in the manner provided herein, all on and subject to the terms and conditions hereof and of the relevant Financing Agreements.

 

(b)           In furtherance of the foregoing, the Company agrees to give the parties hereto, the Depositary and each of the Rating Agencies not less than two Business Days' prior notice substantially in the form of Exhibit A hereto (a "Closing Notice") of the scheduled closing date (the "Scheduled Closing Date") (or, in the case of a substitute Closing Notice under

Note Purchase Agreement 10-1

  

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Section 1(e) or (f) hereof, one Business Day's prior notice) in respect of the financing of each Aircraft under this Agreement, which notice shall:

 

(i)  specify the Scheduled Closing Date of such Aircraft (which shall be a Business Day before the Cut-off Date and, except as provided in Section 1(f) hereof, the date (the "Funding Date") on which the financing therefor in the manner provided herein shall be consummated);

 

(ii)  instruct each Pass Through Trustee being requested to purchase Equipment Notes pursuant to such Closing Notice (the "Applicable Pass Through Trustees")to enter into the Participation Agreement included in the Financing Agreements with respect to such Aircraft in such form and at such a time on or before the Funding Date specified in such Closing Notice and to perform its obligations thereunder;

 

(iii) instruct each of the Class A and Class B Pass Through Trustees to instruct the relevant Escrow Agent to provide a Notice of Purchase Withdrawal to the Depositary with respect to the Equipment Notes to be issued to such Pass Through Trustee in connection with the financing of such Aircraft (except in the case of any such financing on the Issuance Date); and

 

(iv)  specify the aggregate principal amount of each series of Equipment Notes, if any, to be issued, and purchased by the Applicable Pass Through Trustees, in connection with the financing of such Aircraft scheduled on such Funding Date (which shall in all respects comply with the Required Terms).

 

Notwithstanding the foregoing, in the case of any Aircraft to be financed hereunder on the Issuance Date, the Closing Notice therefor may be delivered to the parties hereto on the Issuance Date.

 

(c)           Upon receipt of a Closing Notice, the Applicable Pass Through Trustees shall, and shall cause the Subordination Agent to, enter into and perform their respective obligations under the Participation Agreement specified in such Closing Notice, provided that such Participation Agreement and the Indenture to be entered into pursuant to such Participation Agreement shall be in the forms thereof annexed hereto in all material respects and, if modified in any material respect, as to which Rating Agency Confirmation shall have been obtained from each Rating Agency by the Company (to be delivered by the Company to the Applicable Pass Through Trustees on or before the

Note Purchase Agreement 10-1

  

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relevant Funding Date, it being understood that if Rating Agency Confirmation shall have been received with respect to any Financing Agreements and such Financing Agreements are utilized for subsequent Aircraft (or Substitute Aircraft) without material modifications, no additional Rating Agency Confirmation shall be required); provided, however, that the relevant Financing Agreements as executed and delivered shall not vary the Required Terms.  Notwithstanding the foregoing, an Indenture may be modified to the extent required for the issuance of Equipment Notes pursuant to Section 4(a)(vi) of this Agreement, subject to the terms of such Section and Section 9.1(c) or 9.1(d) of the Intercreditor Agreement, whichever may be applicable.  The Company shall pay the reasonable costs and expenses of the Rating Agencies in connection with obtaining any such Rating Agency Confirmation.  With respect to each Aircraft, the Company shall cause WTC (or such other person that meets the eligibility requirements to act as loan trustee under the Indenture) to execute as Loan Trustee the Financing Agreements relating to such Aircraft to which such Loan Trustee is intended to be a party, and shall concurrently therewith execute such Financing Agreements to which the Company is intended to be a party and perform its respective obligations thereunder.  Upon the request of either Rating Agency, the Company shall deliver or cause to be delivered to such Rating Agency a true and complete copy of each Financing Agreement relating to the financing of each Aircraft together with a true and complete set of the closing documentation (including legal opinions) delivered to the related Loan Trustee, Subordination Agent and Pass Through Trustee under the related Participation Agreement.

 

(d)           The Company agrees that all Equipment Notes issued pursuant to any Indenture shall initially be registered in the name of the Subordination Agent on behalf of the Applicable Pass Through Trustee (or, in the case of any Additional Series Equipment Notes, on behalf of the Additional Pass Through Trustee with respect to the corresponding Additional Certificates).

 

(e)           If after giving any Closing Notice, there shall be a delay in the delivery of the New Aircraft referred to therein, or if on the Scheduled Closing Date of the New Aircraft or Owned Aircraft referred to therein the financing thereof in the manner contemplated hereby shall not be consummated for whatever reason, the Company shall give the parties hereto and the Depositary prompt notice thereof.  Concurrently with the giving of such notice of postponement or subsequently, the Company shall give the parties hereto and the Depositary a

Note Purchase Agreement 10-1

  

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substitute Closing Notice specifying the date to which the financing of such New Aircraft (or of another New Aircraft of the same model in lieu thereof) or such Owned Aircraft shall have been re-scheduled (which shall be a Business Day before the Cut-off Date on which the Escrow Agents shall be entitled to withdraw one or more Deposits under each of the applicable Deposit Agreements to enable each of the Class A and Class B Pass Through Trustees to fund its purchase of the related Equipment Notes).  Upon receipt of any such notice of postponement, each Applicable Pass Through Trustee shall comply with its obligations under Section 5.01 of each of the Trust Supplements and thereafter the financing of such New Aircraft or such Owned Aircraft, as specified in such substitute Closing Notice, shall take place on the re-scheduled Closing Date therefor (all on and subject to the terms and conditions of the relevant Financing Agreements) unless further postponed as provided herein.

 

(f)           Anything in this Section 1 to the contrary notwithstanding, the Company shall have the right to accept delivery of a New Aircraft under the Aircraft Purchase Agreement on the Delivery Date thereof by utilization of bridge financing of such New Aircraft and promptly thereafter give the parties hereto and the Depositary a Closing Notice specifying a Funding Date not later than 90 days after the Delivery Date of such New Aircraft and no later than the Cut-off Date and otherwise complying with the provisions of Section 1(b) hereof.  All other terms and conditions of this Note Purchase Agreement shall apply to the financing of any such New Aircraft on the re-scheduled Funding Date therefor except the related Financing Agreements shall be amended to reflect the original delivery of such New Aircraft to the Company.

 

(g)           If the scheduled delivery date from the Manufacturer for any New Aircraft is delayed more than 30 days beyond the last day of the month set forth opposite such New Aircraft under the heading "Scheduled Delivery Months" in Part B of Schedule I hereto, the Company may identify for delivery a substitute aircraft therefor meeting the following conditions (a "Substitute Aircraft"):  (i) a Substitute Aircraft must be of the same model as the New Aircraft being replaced and (ii) the Company shall be obligated to obtain Rating Agency Confirmation in respect of the replacement of any New Aircraft by Substitute Aircraft.  Upon the satisfaction of the conditions set forth above with respect to a Substitute Aircraft, the New Aircraft to be replaced shall cease to be subject to this Agreement and all rights and obligations of the parties hereto concerning such New

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Aircraft shall cease, and such Substitute Aircraft shall become and thereafter be subject to the terms and conditions of this Agreement to the same extent as such New Aircraft.

 

(h)           The Company shall have no liability for the failure of the Pass Through Trustees to purchase Equipment Notes with respect to any Aircraft or Substitute Aircraft.

 

(i)           Anything herein to the contrary notwithstanding, the Company shall not have the right, and shall not be entitled, at any time to request the issuance of Equipment Notes of any series to the Class A or Class B Pass Through Trustee in an aggregate principal amount in excess of the amount of the Deposits then available for withdrawal by the Escrow Agent under and in accordance with the provisions of the related Deposit Agreement.

 

SECTION 2.  Conditions Precedent.  The obligation of the Applicable Pass Through Trustees to enter into, and to cause the Subordination Agent to enter into, any Participation Agreement as directed pursuant to a Closing Notice and to perform its obligations thereunder is subject to satisfaction of the following conditions:

 

(a)           no Triggering Event shall have occurred; and

 

(b)           the Company shall have delivered a certificate to each such Pass Through Trustee and the Liquidity Provider stating (i) that such Participation Agreement and the other Financing Agreements to be entered into pursuant to such Participation Agreement do not vary the Required Terms and (ii) that any substantive modification of such Financing Agreements from the forms of Financing Agreements attached to this Agreement do not materially and adversely affect the Certificateholders or the Liquidity Provider, and such certification shall be true and correct.

 

Anything herein to the contrary notwithstanding, the obligation of each Pass Through Trustee to purchase Equipment Notes shall terminate on the Cut-off Date.

 

SECTION 3.  Representations and Warranties.  (a)  The Company represents and warrants that:

 

(i)  the Company is duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is a "citizen of the United States" as defined in Section 40102(a)(15) of the Act,

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and has the full corporate power, authority and legal right under the laws of the State of Delaware to execute and deliver this Agreement and each Financing Agreement to which it will be a party and to carry out the obligations of the Company under this Agreement and each Financing Agreement to which it will be a party;

 

(ii)  the execution and delivery by the Company of this Agreement and the performance by the Company of its obligations under this Agreement have been duly authorized by the Company and will not violate its Certificate of Incorporation or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  this Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

(b)           WTC represents and warrants that:

 

(i)  WTC is duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is a "citizen of the United States" as defined in Section 40102(a)(15) of the Act, and has the full corporate power, authority and legal right under the laws of the State of Delaware and the United States pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each Financing Agreement to which it will be a party and to carry out the obligations of WTC, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, under this Agreement and each Financing Agreement to which it will be a party;

 

(ii)  the execution and delivery by WTC, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, of this Agreement and the performance by WTC, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, of its obligations under

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this Agreement have been duly authorized by WTC, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, and will not violate its articles of association or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  this Agreement constitutes the legal, valid and binding obligations of WTC, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

(c)           The Pass Through Trustee hereby confirms to each of the other parties hereto that its representations and warranties set forth in Section 7.15 of the Basic Pass Through Trust Agreement and Section 5.04 of each Trust Supplement are true and correct as of the date hereof.

 

(d)           The Subordination Agent represents and warrants that:

 

(i)  the Subordination Agent is duly incorporated, validly existing and in good standing under the laws of the State of Delaware, and has the full corporate power, authority and legal right under the laws of the State of Delaware and the United States pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each Financing Agreement to which it is or will be a party and to perform its obligations under this Agreement and each Financing Agreement to which it is or will be a party;

 

(ii)  this Agreement has been duly authorized, executed and delivered by the Subordination Agent; this Agreement constitutes the legal, valid and binding obligations of the Subordination Agent enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors

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generally and by general principles of equity, whether considered in a proceeding at law or in equity;

 

(iii)  none of the execution, delivery and performance by the Subordination Agent of this Agreement contravenes any law, rule or regulation of the State of Delaware or any United States governmental authority or agency regulating the Subordination Agent's banking, trust or fiduciary powers or any judgment or order applicable to or binding on the Subordination Agent and do not contravene the Subordination Agent's articles of association or by-laws or result in any breach of, or constitute a default under, any agreement or instrument to which the Subordination Agent is a party or by which it or any of its properties may be bound;

 

(iv)  neither the execution and delivery by the Subordination Agent of this Agreement nor the consummation by the Subordination Agent of any of the transactions contemplated hereby requires the consent or approval of, the giving of notice to, the registration with, or the taking of any other action with respect to, any Delaware governmental authority or agency or any federal governmental authority or agency regulating the Subordination Agent's banking, trust or fiduciary powers;

 

(v)  there are no Taxes payable by the Subordination Agent imposed by the State of Delaware or any political subdivision or taxing authority thereof in connection with the execution, delivery and performance by the Subordination Agent of this Agreement (other than franchise or other taxes based on or measured by any fees or compensation received by the Subordination Agent for services rendered in connection with the transactions contemplated by the Intercreditor Agreement or any of the Liquidity Facilities), and there are no Taxes payable by the Subordination Agent imposed by the State of Delaware or any political subdivision thereof in connection with the acquisition, possession or ownership by the Subordination Agent of any of the Equipment Notes (other than franchise or other taxes based on or measured by any fees or compensation received by the Subordination Agent for services rendered in connection with the transactions contemplated by the

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Intercreditor Agreement or any of the Liquidity Facilities); and

 

(vi)  there are no pending or threatened actions or proceedings against the Subordination Agent before any court or administrative agency which individually or in the aggregate, if determined adversely to it, would materially adversely affect the ability of the Subordination Agent to perform its obligations under this Agreement.

 

(e)           The Escrow Agent represents and warrants that:

 

(i)  the Escrow Agent is a national banking association duly incorporated, validly existing and in good standing under the laws of the United States and has the full corporate power, authority and legal right under the laws of the United States pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement, each Deposit Agreement and each Escrow and Paying Agent Agreement (collectively, the "Escrow Agent Agreements") and to carry out the obligations of the Escrow Agent under each of the Escrow Agent Agreements;

 

(ii)  the execution and delivery by the Escrow Agent of each of the Escrow Agent Agreements and the performance by the Escrow Agent of its obligations hereunder and thereunder have been duly authorized by the Escrow Agent and will not violate its articles of association or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  each of the Escrow Agent Agreements constitutes the legal, valid and binding obligations of the Escrow Agent enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

(f)           The Paying Agent represents and warrants that:

 

(i)  the Paying Agent is duly incorporated, validly existing and in good standing under the laws

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of the State of Delaware and has the full corporate power, authority and legal right under the laws of the State of Delaware and the United States pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each Escrow and Paying Agent Agreement (collectively, the "Paying Agent Agreements") and to carry out the obligations of the Paying Agent under each of the Paying Agent Agreements;

 

(ii)  the execution and delivery by the Paying Agent of each of the Paying Agent Agreements and the performance by the Paying Agent of its obligations hereunder and thereunder have been duly authorized by the Paying Agent and will not violate its articles of association or by-laws or the provisions of any indenture, mortgage, contract or other agreement to which it is a party or by which it is bound; and

 

(iii)  each of the Paying Agent Agreements constitutes the legal, valid and binding obligations of the Paying Agent enforceable against it in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity, whether considered in a proceeding at law or in equity.

 

SECTION 4.  Covenants.  (a)  The Company covenants with each of the other parties hereto that:

 

(i)  [Intentionally Omitted];

 

(ii)  subject to Section 4(a)(iv) of this Agreement, the Company shall at all times maintain its corporate existence and shall not wind up, liquidate or dissolve or take any action, or fail to take any action, that would have the effect of any of the foregoing;

 

(iii)  the Company shall at all times remain a U.S. Air Carrier (as defined in the Financing Agreements) and shall at all times be otherwise certificated and registered to the extent necessary to entitle the Loan Trustee to the rights afforded to secured parties of aircraft equipment under Section 1110;

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(iv)  Section 4.07 of each Indenture is hereby incorporated by reference herein;

 

(v)  the Company agrees to provide written notice to each of the parties hereto of the occurrence of the Cut-off Date no later than one Business Day after the date thereof, such notice to refer specifically to the Pass Through Trustee's obligation to assign, transfer and deliver all of its right, title and interest to the Trust Property (as defined in each Pass Through Trust Agreement) to the trustee of the Related Trust (as defined in each Pass Through Trust Agreement) in accordance with Section 7.01 of each of the Trust Supplements;

 

(vi)  the Company shall not redeem and re-issue any Series B Equipment Notes or issue any Additional Series Equipment Notes pursuant to any Indenture, unless it shall have obtained written confirmation from each Rating Agency that the reissuance or issuance of such Equipment Notes, as the case may be, will not result in (1) a reduction of the rating for any Class of Certificates then rated by any Rating Agency that will remain outstanding below the then current rating for such Class of Certificates or (2) a withdrawal or suspension of the rating of any Class of Certificates then rated by any Rating Agency that will remain outstanding.  Any reissuance of the Series B Equipment Notes and issuance of Additional Series Equipment Notes shall be subject to the terms of Section 9.1(c) and 9.1(d), respectively, of the Intercreditor Agreement; and

 

(vii)  If (x) the Depositary’s short-term unsecured debt rating or short-term issuer credit rating, as the case may be, shall at any time fall below A-1+ from Standard & Poor’s Ratings Services or P-1 from Moody’s Investors Service, Inc. (such minimum ratings, the "Depositary Threshold Ratings") or (y) the Company or the Depositary, in its sole discretion, gives written notice to the other of its election that the Depositary be replaced, the Company shall, within 30 days after such event occurring, cause the Depositary to be replaced with a depositary bank (a "Replacement Depositary") on the following terms and preconditions:

 

(A)           the Replacement Depositary must meet the Depositary Threshold Ratings and the Company shall have obtained written confirmation from each Rating Agency that such replacement will not cause a reduction of any rating then in effect for any Class of Certificates by such Rating Agency (without regard to any downgrading of any rating of the Depositary being replaced);

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(B)           the Company shall pay all fees, expenses and other amounts then owing to the replaced Depositary and, except as expressly provided in clause (C) below, the Company shall pay any up-front fee of the Replacement Depositary and (without limitation of the foregoing) all out-of-pocket expenses (including reasonable fees and expenses of legal counsel) of the parties hereto (including without limitation all amounts payable to the Rating Agencies) incurred in connection with such replacement;

 

(C)           solely in the case of the Depositary making an election in its discretion that it be replaced (and without limitation of clause (A) above), (x) the notice given by the Depositary to the Company shall nominate a Replacement Depositary, which shall satisfy all of terms and preconditions of this Section 4(a)(vii) (and the Company shall have the right to utilize such nominee as the Replacement Depositary or to select another Replacement Depositary), (y) the fees, expenses, indemnities and other amounts payable to the Replacement Depositary upon its execution of the Replacement Deposit Agreement or thereafter shall not to any extent exceed those which would have been payable to the Depositary had such replacement not occurred (it being specifically understood and agreed that any up-front fee of the Replacement Depositary shall be paid by the replaced Depositary, provided that, if the Company selects a Replacement Depositary other than the nominee of the replaced Depositary and the upfront fee of such selection exceeds that of such nominee, the Company shall pay such excess), and (without limitation of the foregoing) the Depositary shall pay all out-of-pocket expenses (including reasonable fees and expenses of legal counsel) of the parties hereto (including without limitation all amounts payable to the Rating Agencies) incurred in connection with such replacement, and (z) the Replacement Depositary shall be willing to enter into a Replacement Deposit Agreement for each of the Class A and Class B Certificates with the Escrow Agent having the same terms and conditions (including without limitation as to the interest to be paid on the Deposits) as the Deposit Agreements to which the Depositary is a party; and

 

(D)           the Company or, in the case of the Depositary making an election that it be replaced (unless the Company shall have selected such Replacement Depositary), the Depositary, shall cause the Replacement Depositary to enter into a Replacement Deposit Agreement for each of the Class A and Class B Certificates with the Escrow Agent (and, upon request of the Company the Escrow Agent agrees to enter into any such

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Replacement Deposit Agreement) and shall cause the Replacement Depositary to deliver to the Company and each Rating Agency legal opinions and other closing documentation substantially similar in scope and substance as those that were delivered by the Depositary being replaced in connection with the execution and delivery of the Deposit Agreement being replaced.

 

Upon satisfaction of the foregoing conditions, the Company shall instruct the Class A Pass Through Trustee and the Class B Pass Through Trustee, and each such Pass Through Trustee agrees, to execute and deliver to the Escrow Agent a duly completed Withdrawal Certificate (as defined in the Escrow and Paying Agent Agreements) together with a Notice of Replacement Withdrawal (as defined in the Escrow and Paying Agent Agreements).

 

Each of the parties hereto agrees, at the Company’s request, to enter into any amendments to this Agreement, the Escrow and Paying Agent Agreements and any other Operative Agreements as may be necessary or desirable to give effect to the replacement of the Depositary with the Replacement Depositary and the replacement of the Deposit Agreements with the Replacement Deposit Agreements.

 

Upon the execution and delivery of the Replacement Deposit Agreements, the Replacement Depositary shall be deemed to be the Depositary with all of the rights and obligations of the Depositary hereunder and under the other Operative Agreements and the Replacement Deposit Agreements shall be deemed to be the Deposit Agreements hereunder and under the other Operative Agreements, except that the obligations of the replaced Depositary under its Deposit Agreements resulting from the delivery of any Withdrawal Notice delivered thereunder shall remain in full force and effect notwithstanding the execution and delivery of the Replacement Deposit Agreements.

 

(viii)                      Promptly after the occurrence of a Triggering Event or an Indenture Default resulting from the failure of the Company to make payments on any Equipment Note and on every Regular Distribution Date while the Triggering Event or such Indenture Default shall be continuing, the Company will, at the Subordination Agent’s request from time to time but in any event no more frequently than once every three months, provide to the Subordination Agent a statement setting forth the following information with respect to each Aircraft then subject to the lien of an Indenture:  (A) whether the Aircraft are currently in service or parked in storage, (B) the maintenance status of the Aircraft and (C) the location of the Engines (as

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defined in the respective Indentures to which such Aircraft are subject).  As used in this sentence, the terms "Triggering Event", "Indenture Default", "Regular Distribution Date" shall have the respective meanings set forth in the Intercreditor Agreement as originally executed.

 

(b)           WTC, in its individual capacity, covenants with each of the other parties to this Agreement that it will, immediately upon obtaining knowledge of any facts that would cast doubt upon its continuing status as a "citizen of the United States" as defined in Section 40102(a)(15) of the Act and promptly upon public disclosure of negotiations in respect of any transaction which would or might adversely affect such status, notify in writing all parties hereto of all relevant matters in connection therewith.  Upon WTC giving any such notice, WTC shall, subject to Section 9.01 of any Indenture then entered into, resign as Loan Trustee in respect of such Indenture.

 

SECTION 5.  Notices.  Unless otherwise specifically provided herein, all notices required or permitted by the terms of this Agreement shall be in English and in writing, and any such notice shall become effective upon being delivered personally or, if promptly confirmed by mail, when dispatched by facsimile or other written telecommunication, addressed to such party hereto at its address or facsimile number set forth below the signature of such party at the foot of this Agreement or to such other address or facsimile number as such party may hereafter specify by notice to the other parties.

 

SECTION 6.  Expenses.  (a)  The Company agrees to pay to the Subordination Agent when due an amount or amounts equal to the fees payable to the Liquidity Provider under Section 2.03 of each Liquidity Facility and the related Fee Letter (as defined in the Intercreditor Agreement) multiplied by a fraction the numerator of which shall be the then outstanding aggregate amount of the Deposits under the Deposit Agreements pertaining to the Class A and Class B Pass Through Trusts and the denominator of which shall be the sum of (x) the then outstanding aggregate principal amount of the Series A Equipment Notes and Series B Equipment Notes issued under all of the Indentures and (y) the then outstanding aggregate amount of the Deposits under the Deposit Agreements pertaining to the Class A and Class B Pass Through Trusts.

 

(b)           So long as no Equipment Notes have been issued in respect of any Aircraft, the Company agrees to pay (i) to the Subordination Agent when due (A) the amount equal to interest on

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any Downgrade Advance (other than any Applied Downgrade Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings while such Downgrade Advance shall be outstanding, (B) the amount equal to interest on any Non-Extension Advance (other than any Applied Non-Extension Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings while such Non-Extension Advance shall be outstanding, (C) the amount equal to interest on any Special Termination Advance (other than any Applied Special Termination Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings from such Special Termination Advance while such Special Termination Advance shall be outstanding, and (D) any other amounts owed to the Liquidity Provider by the Subordination Agent as borrower under each Liquidity Facility (other than amounts due as repayment of advances thereunder or as interest on such advances, except to the extent payable pursuant to clause (A), (B) or (C)), (ii) all compensation and reimbursement of expenses, disbursements and advances payable by the Company under the Pass Through Trust Agreements, (iii) all compensation and reimbursement of expenses and disbursements payable to the Subordination Agent under the Intercreditor Agreement except with respect to any income or franchise taxes incurred by the Subordination Agent in connection with the transactions contemplated by the Intercreditor Agreement and (iv) in the event the Company requests any amendment to any Operative Agreement, all reasonable fees and expenses (including, without limitation, fees and disbursements of counsel) of the Escrow Agent and/or the Paying Agent in connection therewith.  For purposes of this Section 6(b), the terms "Applied Downgrade Advance", "Applied Non-Extension Advance", "Applied Special Termination Advance", "Downgrade Advance", "Investment Earnings", "Non-Extension Advance" and "Special Termination Advance" shall have the meanings specified in each Liquidity Facility.

 

SECTION 7.  Further Assurances.  Each party hereto shall duly execute, acknowledge and deliver, or shall cause to be executed, acknowledged and delivered, all such further agreements, instruments, certificates or documents, and shall do and cause to be done such further acts and things, in any case, as any other party hereto shall reasonably request in connection with its administration of, or to carry out more effectually the purposes of, or to better assure and confirm unto it the rights and benefits to be provided under, this Agreement.

 

SECTION 8.  Miscellaneous.  (a)  Provided that the transactions contemplated hereby have been consummated, in whole

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or in part, and except as otherwise provided for herein, the representations, warranties and agreements herein of the Company, the Subordination Agent, the Escrow Agent, the Paying Agent and the Pass Through Trustee, and the Company's, the Subordination Agent's, the Escrow Agent's, the Paying Agent's and the Pass Through Trustee's obligations under any and all thereof, shall survive the expiration or other termination of this Agreement and the other agreements referred to herein.

 

(b)           This Agreement may be executed in any number of counterparts (and each of the parties hereto shall not be required to execute the same counterpart).  Each counterpart of this Agreement, including a signature page executed by each of the parties hereto, shall be an original counterpart of this Agreement, but all of such counterparts together shall constitute one instrument.  Neither this Agreement nor any of the terms hereof may be terminated, amended, supplemented, waived or modified orally, but only by an instrument in writing signed by the party against which the enforcement of the termination, amendment, supplement, waiver or modification is sought.  The index preceding this Agreement and the headings of the various Sections of this Agreement are for convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions hereof.  The terms of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and permitted assigns, the Pass Through Trustee and its successors as Pass Through Trustee (and any additional trustee appointed) under any of the Pass Through Trust Agreements, the Escrow Agent and its successors as Escrow Agent under the Escrow and Paying Agent Agreements, the Paying Agent and its successors as Paying Agent under the Escrow and Paying Agent Agreement and the Subordination Agent and its successors as Subordination Agent under the Intercreditor Agreement.

 

(c)           This Agreement is not intended to, and shall not, provide any person not a party hereto (other than the Underwriters, each of the beneficiaries of Section 6 hereof and the Depositary as a beneficiary of Section 4(a)(vii)) with any rights of any nature whatsoever against any of the parties hereto, and no person not a party hereto (other than the Underwriters, each of the beneficiaries of Section 6 hereof and the Depositary as a beneficiary of Section 4(a)(vii)) shall have any right, power or privilege in respect of, or have any benefit or interest arising out of, this Agreement.  To the extent that this Agreement expressly confers upon, gives or grants any right, power, privilege, benefit, interest, remedy or claim to

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any of the beneficiaries of Section 6 hereof (including, but not limited to rights, powers, privileges, benefits, interests, remedies and claims under Section 6) or to the Depositary with respect to Section 4(a)(vii), each such party is hereby recognized as a third party beneficiary hereunder and may enforce any such right, power, privilege, benefit, interest, remedy or claim.

 

SECTION 9.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.

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

 

	 	 	 	 	 	
CONTINENTAL AIRLINES, INC.

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
/s/ Gerald Laderman

	 
	 	 	
 

	 	 	Name: 	
Gerald Laderman

	 
	 	 	
 

	 	 	
Title:

	
Senior Vice Presisdent

Finance and Treasurer

	 

 

	 	 	
 

	 	 	Address: 	

1600 Smith Street

Dept. HQS-FN

Houston, TX  77002

Attention:  Treasurer

Facsimile:  (713) 324-2447

	 

 

	 	 	 	 	 	
WILMINGTON TRUST COMPANY,

not in its individual capacity,

except as otherwise provided

herein, but solely as Pass Through

Trustee

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
/s/ Chad May

	 
	 	 	
 

	 	 	Name: 	
Chad May

	 
	 	 	
 

	 	 	
Title:

	
Financial Services Officer

	 

 

	 	 	
 

	 	 	Address: 	

1100 North Market Street

Wilmington, Delaware

19890-1605

Attention: Corporate Trust

Administration

Facsimile:  (302) 636-4140

	 
	 	 	 	 	 	 	
 

	 

 

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WILMINGTON TRUST COMPANY,

not in its individual capacity,

except as otherwise provided

herein, but solely as

Subordination Agent

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
/s/ Chad May

	 
	 	 	
 

	 	 	Name: 	
Chad May

	 
	 	 	
 

	 	 	
Title:

	
Financial Services Officer

	 

 

	 	 	
 

	 	 	Address: 	

1100 North Market Street

Wilmington, Delaware 19890-1605

Attention: Corporate Trust

Administration

Facsimile:  (302) 636-4140

	 

 

	 	 	 	 	 	
WELLS FARGO BANK NORTHWEST,

NATIONAL ASSOCIATION,

as Escrow Agent

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
/s/ Scott Rosevear

	 
	 	 	
 

	 	 	Name: 	
Scott Rosevear

	 
	 	 	
 

	 	 	
Title:

	
Vice President

	 

 

	 	 	
 

	 	 	Address: 	

299 South Main Street

Salt Lake City, 12th Floor

Utah 84111

Attention: Corporate Trust

Department

Facsimile:  (801) 246-5053

	 

 

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WILMINGTON TRUST COMPANY,

as Paying Agent

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
/s/ Chad May

	 
	 	 	
 

	 	 	Name: 	
Chad May

	 
	 	 	
 

	 	 	
Title:

	
Financial Services Officer

	 

 

	 	 	
 

	 	 	Address: 	

1100 North Market Street

Wilmington, Delaware 19890-1605

Attention: Corporate Trust

Administration

Facsimile:  (302) 636-4140

	 

 

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SCHEDULE I to

Note Purchase Agreement

AIRCRAFT

Part A - OWNED AIRCRAFT

	

Aircraft Type

	

Registration

Number

	

Manufacturer’s

Serial Number

	
Boeing 767-424ER

	
N66057

	
29452

	
Boeing 767-424ER

	
N67058

	
29453

	
Boeing 767-424ER

	
N69059

	
29454

	
Boeing 767-424ER

	
N78060

	
29455

	
Boeing 767-424ER

	
N68061

	
29456

	  	  	  
	
Boeing 737-924

	
N79402

	
30119

	
Boeing 737-924

	
N38403

	
30120

	
Boeing 737-924

	
N72405

	
30122

	
Boeing 737-924

	
N73406

	
30123

	  	  	  
	
Boeing 737-824

	
N27246

	
28956

	
Boeing 737-824

	
N14249

	
28809

	
Boeing 737-824

	
N33264

	
31584

Part B - NEW AIRCRAFT AND SCHEDULED DELIVERY MONTHS

	

Aircraft Type

	

Expected

Registration

Number

	

Expected Manufacturer’s

Serial Number

	

Scheduled Delivery

Month

	
Boeing 737-924ER

	
N38443

	
31655

	
December 2010

	
Boeing 737-924ER

	
N36444

	
31643

	
December 2010

	
Boeing 737-924ER

	
N73445

	
40000

	
April 2011

	  	  	  	  
	
Boeing 737-824

	
N76529

	
31652

	
December 2010

	
Boeing 737-824

	
N77530

	
39998

	
March 2011

	
Boeing 737-824

	
N87531

	
39999

	
March 2011

Note Purchase Agreement 10-1

  

  

BACK

SCHEDULE II to

Note Purchase Agreement

 

TRUST SUPPLEMENTS

 

Trust Supplement dated as of the Issuance Date between the Company and the Pass Through Trustee in respect of Continental Airlines Pass Through Trust, Series 2010-1A-O.

Trust Supplement dated as of the Issuance Date between the Company and the Pass Through Trustee in respect of Continental Airlines Pass Through Trust, Series 2010-1B-O.

Note Purchase Agreement 10-1

  

  

BACK

 

SCHEDULE III TO

Note Purchase Agreement

 

REQUIRED TERMS

 

Equipment Notes

 

Obligor:   Continental

 

Maximum Principal Amount:

 

The initial principal amount and amortization schedule of the Series A and B Equipment Notes issued with respect to an Aircraft shall be as set forth in the following table for that Aircraft:

 

Boeing 737-824

	  	  
	  	

N27246

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$13,044,000.00

	
$2,547,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
13,044,000.00

	
2,547,000.00

	
0.00

	
0.00

	
January 12, 2012

	
12,509,802.70

	
2,382,765.19

	
534,197.30

	
164,234.81

	
July 12, 2012

	
12,161,996.49

	
2,219,628.43

	
347,806.21

	
163,136.76

	
January 12, 2013

	
11,756,904.06

	
2,055,864.49

	
405,092.43

	
163,763.94

	
July 12, 2013

	
11,352,683.93

	
1,893,584.32

	
404,220.13

	
162,280.17

	
January 12, 2014

	
10,942,702.74

	
1,730,089.93

	
409,981.19

	
163,494.39

	
July 12, 2014

	
10,543,357.61

	
1,569,028.21

	
399,345.13

	
161,061.72

	
January 12, 2015

	
10,147,027.73

	
1,407,741.92

	
396,329.88

	
161,286.29

	
July 12, 2015

	
9,657,279.11

	
1,235,161.65

	
489,748.62

	
172,580.27

	
January 12, 2016

	
9,147,909.89

	
1,064,160.44

	
509,369.22

	
171,001.21

	
July 12, 2016

	
8,630,436.21

	
897,922.28

	
517,473.68

	
166,238.16

	
January 12, 2017

	
8,124,707.65

	
738,490.28

	
505,728.56

	
159,432.00

	
July 12, 2017

	
7,637,150.11

	
586,356.99

	
487,557.54

	
152,133.29

	
January 12, 2018

	
7,239,273.71

	
439,719.14

	
397,876.40

	
146,637.85

	
July 12, 2018

	
6,779,708.30

	
297,056.88

	
459,565.41

	
142,662.26

	
January 12, 2019

	
6,432,507.44

	
0.00

	
347,200.86

	
297,056.88

	
July 12, 2019

	
6,049,559.57

	
0.00

	
382,947.87

	
0.00

	
January 12, 2020

	
5,670,744.39

	
0.00

	
378,815.18

	
0.00

	
July 12, 2020

	
5,211,924.88

	
0.00

	
458,819.51

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
5,211,924.88

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

2

 

	  	

N14249

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$13,501,000.00

	
$2,637,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
13,501,000.00

	
2,637,000.00

	
0.00

	
0.00

	
January 12, 2012

	
12,948,205.91

	
2,466,268.65

	
552,794.09

	
170,731.35

	
July 12, 2012

	
12,588,210.90

	
2,297,414.81

	
359,995.01

	
168,853.84

	
January 12, 2013

	
12,168,922.10

	
2,127,911.79

	
419,288.80

	
169,503.02

	
July 12, 2013

	
11,750,536.17

	
1,959,944.55

	
418,385.93

	
167,967.24

	
January 12, 2014

	
11,326,187.28

	
1,790,720.54

	
424,348.89

	
169,224.01

	
July 12, 2014

	
10,912,847.19

	
1,624,014.44

	
413,340.09

	
166,706.10

	
January 12, 2015

	
10,502,628.02

	
1,457,075.91

	
410,219.17

	
166,938.53

	
July 12, 2015

	
9,995,716.27

	
1,278,447.61

	
506,911.75

	
178,628.30

	
January 12, 2016

	
9,468,496.33

	
1,101,453.71

	
527,219.94

	
176,993.90

	
July 12, 2016

	
8,932,887.89

	
929,389.76

	
535,608.44

	
172,063.95

	
January 12, 2017

	
8,409,436.19

	
764,370.50

	
523,451.70

	
165,019.26

	
July 12, 2017

	
7,904,792.31

	
606,905.74

	
504,643.88

	
157,464.76

	
January 12, 2018

	
7,492,972.42

	
455,129.00

	
411,819.89

	
151,776.74

	
July 12, 2018

	
7,017,301.64

	
307,467.17

	
475,670.78

	
147,661.83

	
January 12, 2019

	
6,657,933.20

	
0.00

	
359,368.44

	
307,467.17

	
July 12, 2019

	
6,261,565.01

	
0.00

	
396,368.19

	
0.00

	
January 12, 2020

	
5,869,474.34

	
0.00

	
392,090.67

	
0.00

	
July 12, 2020

	
5,394,575.60

	
0.00

	
474,898.74

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
5,394,575.60

	
0.00

	  	

N33264

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$15,906,000.00

	
$3,107,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
15,906,000.00

	
3,107,000.00

	
0.00

	
0.00

	
January 12, 2012

	
15,299,906.91

	
2,914,201.48

	
606,093.09

	
192,798.52

	
July 12, 2012

	
14,897,980.09

	
2,718,959.85

	
401,926.82

	
195,241.63

	
January 12, 2013

	
14,425,543.01

	
2,522,514.55

	
472,437.08

	
196,445.30

	
July 12, 2013

	
13,953,696.92

	
2,327,423.35

	
471,846.09

	
195,091.20

	
January 12, 2014

	
13,474,242.41

	
2,130,337.61

	
479,454.51

	
197,085.74

	
July 12, 2014

	
13,007,326.90

	
1,935,708.10

	
466,915.51

	
194,629.51

	
January 12, 2015

	
12,543,561.22

	
1,740,223.58

	
463,765.68

	
195,484.52

	
July 12, 2015

	
12,076,320.71

	
1,544,555.98

	
467,240.51

	
195,667.60

	
January 12, 2016

	
11,580,515.19

	
1,347,141.19

	
495,805.52

	
197,414.79

	
July 12, 2016

	
11,069,476.61

	
1,151,683.35

	
511,038.58

	
195,457.84

	
January 12, 2017

	
10,469,199.72

	
951,591.44

	
600,276.89

	
200,091.91

	
July 12, 2017

	
9,890,465.22

	
759,359.62

	
578,734.50

	
192,231.82

	
January 12, 2018

	
9,426,497.40

	
572,572.81

	
463,967.82

	
186,786.81

	
July 12, 2018

	
8,880,813.31

	
389,118.02

	
545,684.09

	
183,454.79

	
January 12, 2019

	
8,481,173.24

	
0.00

	
399,640.07

	
389,118.02

	
July 12, 2019

	
8,033,748.27

	
0.00

	
447,424.97

	
0.00

	
January 12, 2020

	
7,590,731.23

	
0.00

	
443,017.04

	
0.00

	
July 12, 2020

	
7,146,725.87

	
0.00

	
444,005.36

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
7,146,725.87

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

3

	  	

N76529

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$26,562,000.00

	
$5,187,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
26,562,000.00

	
5,187,000.00

	
0.00

	
0.00

	
January 12, 2012

	
25,867,836.95

	
4,927,094.60

	
694,163.05

	
259,905.40

	
July 12, 2012

	
25,353,978.75

	
4,627,234.69

	
513,858.20

	
299,859.91

	
January 12, 2013

	
24,717,747.24

	
4,322,255.12

	
636,231.51

	
304,979.57

	
July 12, 2013

	
24,079,153.10

	
4,016,310.77

	
638,594.14

	
305,944.35

	
January 12, 2014

	
23,423,721.44

	
3,703,394.46

	
655,431.66

	
312,916.31

	
July 12, 2014

	
22,786,174.49

	
3,390,964.42

	
637,546.95

	
312,430.04

	
January 12, 2015

	
22,150,152.67

	
3,072,988.38

	
636,021.82

	
317,976.04

	
July 12, 2015

	
21,503,686.28

	
2,750,311.79

	
646,466.39

	
322,676.59

	
January 12, 2016

	
20,801,206.34

	
2,419,768.15

	
702,479.94

	
330,543.64

	
July 12, 2016

	
20,065,086.51

	
2,087,598.79

	
736,119.83

	
332,169.36

	
January 12, 2017

	
19,339,339.23

	
1,757,837.28

	
725,747.28

	
329,761.51

	
July 12, 2017

	
18,639,428.30

	
1,431,078.21

	
699,910.93

	
326,759.07

	
January 12, 2018

	
18,145,608.10

	
1,102,178.41

	
493,820.20

	
328,899.80

	
July 12, 2018

	
17,484,239.57

	
766,082.17

	
661,368.53

	
336,096.24

	
January 12, 2019

	
17,102,010.80

	
0.00

	
382,228.77

	
766,082.17

	
July 12, 2019

	
16,618,667.55

	
0.00

	
483,343.25

	
0.00

	
January 12, 2020

	
16,136,627.79

	
0.00

	
482,039.76

	
0.00

	
July 12, 2020

	
15,643,672.75

	
0.00

	
492,955.04

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
15,643,672.75

	
0.00

	  	

N77530

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$26,728,000.00

	
$5,220,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
26,728,000.00

	
5,220,000.00

	
0.00

	
0.00

	
January 12, 2012

	
26,432,029.14

	
5,034,557.33

	
295,970.86

	
185,442.67

	
July 12, 2012

	
25,913,160.09

	
4,729,288.23

	
518,869.05

	
305,269.10

	
January 12, 2013

	
25,269,130.50

	
4,418,672.44

	
644,029.59

	
310,615.79

	
July 12, 2013

	
24,622,561.01

	
4,106,949.13

	
646,569.49

	
311,723.31

	
January 12, 2014

	
23,958,638.16

	
3,787,967.17

	
663,922.85

	
318,981.96

	
July 12, 2014

	
23,312,866.10

	
3,469,344.95

	
645,772.06

	
318,622.22

	
January 12, 2015

	
22,668,510.29

	
3,144,902.42

	
644,355.81

	
324,442.53

	
July 12, 2015

	
22,013,311.21

	
2,815,492.59

	
655,199.08

	
329,409.83

	
January 12, 2016

	
21,300,588.24

	
2,477,860.38

	
712,722.97

	
337,632.21

	
July 12, 2016

	
20,553,196.77

	
2,138,382.45

	
747,391.47

	
339,477.93

	
January 12, 2017

	
19,816,189.55

	
1,801,180.30

	
737,007.22

	
337,202.15

	
July 12, 2017

	
19,105,414.01

	
1,466,855.17

	
710,775.54

	
334,325.13

	
January 12, 2018

	
18,605,708.37

	
1,130,125.26

	
499,705.64

	
336,729.91

	
July 12, 2018

	
17,934,035.73

	
785,790.25

	
671,672.64

	
344,335.01

	
January 12, 2019

	
17,548,547.68

	
0.00

	
385,488.05

	
785,790.25

	
July 12, 2019

	
17,059,229.55

	
0.00

	
489,318.13

	
0.00

	
January 12, 2020

	
16,571,128.59

	
0.00

	
488,100.96

	
0.00

	
July 12, 2020

	
16,071,685.82

	
0.00

	
499,442.77

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
16,071,685.82

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

4

 

	  	

N87531

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$26,728,000.00

	
$5,220,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
26,728,000.00

	
5,220,000.00

	
0.00

	
0.00

	
January 12, 2012

	
26,432,029.14

	
5,034,557.33

	
295,970.86

	
185,442.67

	
July 12, 2012

	
25,913,160.09

	
4,729,288.23

	
518,869.05

	
305,269.10

	
January 12, 2013

	
25,269,130.50

	
4,418,672.44

	
644,029.59

	
310,615.79

	
July 12, 2013

	
24,622,561.01

	
4,106,949.13

	
646,569.49

	
311,723.31

	
January 12, 2014

	
23,958,638.16

	
3,787,967.17

	
663,922.85

	
318,981.96

	
July 12, 2014

	
23,312,866.10

	
3,469,344.95

	
645,772.06

	
318,622.22

	
January 12, 2015

	
22,668,510.29

	
3,144,902.42

	
644,355.81

	
324,442.53

	
July 12, 2015

	
22,013,311.21

	
2,815,492.59

	
655,199.08

	
329,409.83

	
January 12, 2016

	
21,300,588.24

	
2,477,860.38

	
712,722.97

	
337,632.21

	
July 12, 2016

	
20,553,196.77

	
2,138,382.45

	
747,391.47

	
339,477.93

	
January 12, 2017

	
19,816,189.55

	
1,801,180.30

	
737,007.22

	
337,202.15

	
July 12, 2017

	
19,105,414.01

	
1,466,855.17

	
710,775.54

	
334,325.13

	
January 12, 2018

	
18,605,708.37

	
1,130,125.26

	
499,705.64

	
336,729.91

	
July 12, 2018

	
17,934,035.73

	
785,790.25

	
671,672.64

	
344,335.01

	
January 12, 2019

	
17,548,547.68

	
0.00

	
385,488.05

	
785,790.25

	
July 12, 2019

	
17,059,229.55

	
0.00

	
489,318.13

	
0.00

	
January 12, 2020

	
16,571,128.59

	
0.00

	
488,100.96

	
0.00

	
July 12, 2020

	
16,071,685.82

	
0.00

	
499,442.77

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
16,071,685.82

	
0.00

 

Boeing 737-924

	  	  
	  	

N79402

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$15,140,000.00

	
$2,957,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
15,140,000.00

	
2,957,000.00

	
0.00

	
0.00

	
January 12, 2012

	
14,563,132.93

	
2,773,866.78

	
576,867.07

	
183,133.22

	
July 12, 2012

	
14,180,561.08

	
2,588,027.10

	
382,571.85

	
185,839.68

	
January 12, 2013

	
13,730,874.41

	
2,401,041.71

	
449,686.67

	
186,985.39

	
July 12, 2013

	
13,281,750.29

	
2,215,345.22

	
449,124.12

	
185,696.49

	
January 12, 2014

	
12,825,384.13

	
2,027,750.23

	
456,366.16

	
187,594.99

	
July 12, 2014

	
12,380,953.15

	
1,842,493.20

	
444,430.98

	
185,257.03

	
January 12, 2015

	
11,939,520.32

	
1,656,422.32

	
441,432.83

	
186,070.88

	
July 12, 2015

	
11,494,779.98

	
1,470,177.19

	
444,740.34

	
186,245.13

	
January 12, 2016

	
11,022,850.21

	
1,282,268.99

	
471,929.77

	
187,908.20

	
July 12, 2016

	
10,536,420.92

	
1,096,223.51

	
486,429.29

	
186,045.48

	
January 12, 2017

	
9,965,050.64

	
905,767.12

	
571,370.28

	
190,456.39

	
July 12, 2017

	
9,414,185.36

	
722,792.32

	
550,865.28

	
182,974.80

	
January 12, 2018

	
8,972,560.13

	
545,000.31

	
441,625.23

	
177,792.01

	
July 12, 2018

	
8,453,153.70

	
370,379.86

	
519,406.43

	
174,620.45

	
January 12, 2019

	
8,072,758.48

	
0.00

	
380,395.22

	
370,379.86

	
July 12, 2019

	
7,646,879.46

	
0.00

	
425,879.02

	
0.00

	
January 12, 2020

	
7,225,196.11

	
0.00

	
421,683.35

	
0.00

	
July 12, 2020

	
6,802,572.03

	
0.00

	
422,624.08

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
6,802,572.03

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

5

	  	

N38403

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$14,828,000.00

	
$2,896,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
14,828,000.00

	
2,896,000.00

	
0.00

	
0.00

	
January 12, 2012

	
14,263,051.39

	
2,716,709.70

	
564,948.61

	
179,290.30

	
July 12, 2012

	
13,888,362.64

	
2,534,699.35

	
374,688.75

	
182,010.35

	
January 12, 2013

	
13,447,942.02

	
2,351,566.90

	
440,420.62

	
183,132.45

	
July 12, 2013

	
13,008,072.36

	
2,169,696.79

	
439,869.66

	
181,870.11

	
January 12, 2014

	
12,561,109.88

	
1,985,967.29

	
446,962.48

	
183,729.50

	
July 12, 2014

	
12,125,836.65

	
1,804,527.59

	
435,273.23

	
181,439.70

	
January 12, 2015

	
11,693,499.79

	
1,622,290.81

	
432,336.86

	
182,236.78

	
July 12, 2015

	
11,257,923.58

	
1,439,883.36

	
435,576.21

	
182,407.45

	
January 12, 2016

	
10,795,718.18

	
1,255,847.12

	
462,205.40

	
184,036.24

	
July 12, 2016

	
10,319,312.04

	
1,073,635.21

	
476,406.14

	
182,211.91

	
January 12, 2017

	
9,759,715.17

	
887,103.28

	
559,596.87

	
186,531.93

	
July 12, 2017

	
9,220,200.78

	
707,898.77

	
539,514.39

	
179,204.51

	
January 12, 2018

	
8,787,675.48

	
533,770.27

	
432,525.30

	
174,128.50

	
July 12, 2018

	
8,278,971.71

	
362,747.98

	
508,703.77

	
171,022.29

	
January 12, 2019

	
7,906,414.75

	
0.00

	
372,556.96

	
362,747.98

	
July 12, 2019

	
7,489,311.21

	
0.00

	
417,103.54

	
0.00

	
January 12, 2020

	
7,076,316.89

	
0.00

	
412,994.32

	
0.00

	
July 12, 2020

	
6,662,401.21

	
0.00

	
413,915.68

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
6,662,401.21

	
0.00

	  	

N72405

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$14,864,000.00

	
$2,903,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
14,864,000.00

	
2,903,000.00

	
0.00

	
0.00

	
January 12, 2012

	
14,297,670.02

	
2,723,303.57

	
566,329.98

	
179,696.43

	
July 12, 2012

	
13,922,071.85

	
2,540,851.46

	
375,598.17

	
182,452.11

	
January 12, 2013

	
13,480,582.27

	
2,357,274.52

	
441,489.58

	
183,576.94

	
July 12, 2013

	
13,039,644.97

	
2,174,962.98

	
440,937.30

	
182,311.54

	
January 12, 2014

	
12,591,597.64

	
1,990,787.55

	
448,047.33

	
184,175.43

	
July 12, 2014

	
12,155,267.93

	
1,808,907.46

	
436,329.71

	
181,880.09

	
January 12, 2015

	
11,721,881.73

	
1,626,228.36

	
433,386.20

	
182,679.10

	
July 12, 2015

	
11,285,248.30

	
1,443,378.18

	
436,633.43

	
182,850.18

	
January 12, 2016

	
10,821,921.06

	
1,258,895.25

	
463,327.24

	
184,482.93

	
July 12, 2016

	
10,344,358.61

	
1,076,241.09

	
477,562.45

	
182,654.16

	
January 12, 2017

	
9,783,403.51

	
889,256.41

	
560,955.10

	
186,984.68

	
July 12, 2017

	
9,242,579.63

	
709,616.95

	
540,823.88

	
179,639.46

	
January 12, 2018

	
8,809,004.53

	
535,065.82

	
433,575.10

	
174,551.13

	
July 12, 2018

	
8,299,066.06

	
363,628.43

	
509,938.47

	
171,437.39

	
January 12, 2019

	
7,925,604.85

	
0.00

	
373,461.21

	
363,628.43

	
July 12, 2019

	
7,507,488.93

	
0.00

	
418,115.92

	
0.00

	
January 12, 2020

	
7,093,492.20

	
0.00

	
413,996.73

	
0.00

	
July 12, 2020

	
6,678,571.89

	
0.00

	
414,920.31

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
6,678,571.89

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

6

	  	

N73406

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$14,659,000.00

	
$2,863,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
14,659,000.00

	
2,863,000.00

	
0.00

	
0.00

	
January 12, 2012

	
14,112,908.04

	
2,688,111.62

	
546,091.96

	
174,888.38

	
July 12, 2012

	
13,748,756.27

	
2,509,220.45

	
364,151.77

	
178,891.17

	
January 12, 2013

	
13,319,438.81

	
2,329,096.26

	
429,317.46

	
180,124.19

	
July 12, 2013

	
12,890,532.74

	
2,150,091.63

	
428,906.07

	
179,004.63

	
January 12, 2014

	
12,454,450.40

	
1,969,103.96

	
436,082.34

	
180,987.67

	
July 12, 2014

	
12,029,802.35

	
1,790,236.08

	
424,648.05

	
178,867.88

	
January 12, 2015

	
11,607,908.55

	
1,610,416.36

	
421,893.80

	
179,819.72

	
July 12, 2015

	
11,182,627.66

	
1,430,253.04

	
425,280.89

	
180,163.32

	
January 12, 2016

	
10,730,690.80

	
1,248,282.59

	
451,936.86

	
181,970.45

	
July 12, 2016

	
10,264,388.93

	
1,067,920.94

	
466,301.87

	
180,361.65

	
January 12, 2017

	
9,806,647.38

	
891,369.15

	
457,741.55

	
176,551.79

	
July 12, 2017

	
9,277,750.05

	
712,317.23

	
528,897.33

	
179,051.92

	
January 12, 2018

	
8,856,144.68

	
537,929.14

	
421,605.37

	
174,388.09

	
July 12, 2018

	
8,357,400.55

	
366,184.38

	
498,744.13

	
171,744.76

	
January 12, 2019

	
7,995,792.83

	
0.00

	
361,607.72

	
366,184.38

	
July 12, 2019

	
7,588,964.69

	
0.00

	
406,828.14

	
0.00

	
January 12, 2020

	
7,186,020.77

	
0.00

	
402,943.92

	
0.00

	
July 12, 2020

	
6,781,825.77

	
0.00

	
404,195.00

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
6,781,825.77

	
0.00

 

Boeing 737-924ER

	  	  
	  	

N38443

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$27,668,000.00

	
$5,404,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
27,668,000.00

	
5,404,000.00

	
0.00

	
0.00

	
January 12, 2012

	
26,945,663.49

	
5,132,390.21

	
722,336.51

	
271,609.79

	
July 12, 2012

	
26,410,394.54

	
4,820,036.14

	
535,268.95

	
312,354.07

	
January 12, 2013

	
25,747,653.38

	
4,502,349.08

	
662,741.16

	
317,687.06

	
July 12, 2013

	
25,082,451.15

	
4,183,657.05

	
665,202.23

	
318,692.03

	
January 12, 2014

	
24,399,709.84

	
3,857,702.56

	
682,741.31

	
325,954.49

	
July 12, 2014

	
23,735,598.43

	
3,532,254.60

	
664,111.41

	
325,447.96

	
January 12, 2015

	
23,073,075.70

	
3,201,029.57

	
662,522.73

	
331,225.03

	
July 12, 2015

	
22,399,673.20

	
2,864,908.12

	
673,402.50

	
336,121.45

	
January 12, 2016

	
21,667,923.27

	
2,520,591.82

	
731,749.93

	
344,316.30

	
July 12, 2016

	
20,901,131.78

	
2,174,582.08

	
766,791.49

	
346,009.74

	
January 12, 2017

	
20,145,145.03

	
1,831,080.50

	
755,986.75

	
343,501.58

	
July 12, 2017

	
19,416,071.15

	
1,490,706.47

	
729,073.88

	
340,374.03

	
January 12, 2018

	
18,901,675.10

	
1,148,102.51

	
514,396.05

	
342,603.96

	
July 12, 2018

	
18,212,749.55

	
798,002.26

	
688,925.55

	
350,100.25

	
January 12, 2019

	
17,814,594.58

	
0.00

	
398,154.97

	
798,002.26

	
July 12, 2019

	
17,311,112.04

	
0.00

	
503,482.54

	
0.00

	
January 12, 2020

	
16,808,987.28

	
0.00

	
502,124.76

	
0.00

	
July 12, 2020

	
16,295,492.45

	
0.00

	
513,494.83

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
16,295,492.45

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

7

	  	

N36444

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$27,668,000.00

	
$5,404,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
27,668,000.00

	
5,404,000.00

	
0.00

	
0.00

	
January 12, 2012

	
26,945,663.49

	
5,132,390.21

	
722,336.51

	
271,609.79

	
July 12, 2012

	
26,410,394.54

	
4,820,036.14

	
535,268.95

	
312,354.07

	
January 12, 2013

	
25,747,653.38

	
4,502,349.08

	
662,741.16

	
317,687.06

	
July 12, 2013

	
25,082,451.15

	
4,183,657.05

	
665,202.23

	
318,692.03

	
January 12, 2014

	
24,399,709.84

	
3,857,702.56

	
682,741.31

	
325,954.49

	
July 12, 2014

	
23,735,598.43

	
3,532,254.60

	
664,111.41

	
325,447.96

	
January 12, 2015

	
23,073,075.70

	
3,201,029.57

	
662,522.73

	
331,225.03

	
July 12, 2015

	
22,399,673.20

	
2,864,908.12

	
673,402.50

	
336,121.45

	
January 12, 2016

	
21,667,923.27

	
2,520,591.82

	
731,749.93

	
344,316.30

	
July 12, 2016

	
20,901,131.78

	
2,174,582.08

	
766,791.49

	
346,009.74

	
January 12, 2017

	
20,145,145.03

	
1,831,080.50

	
755,986.75

	
343,501.58

	
July 12, 2017

	
19,416,071.15

	
1,490,706.47

	
729,073.88

	
340,374.03

	
January 12, 2018

	
18,901,675.10

	
1,148,102.51

	
514,396.05

	
342,603.96

	
July 12, 2018

	
18,212,749.55

	
798,002.26

	
688,925.55

	
350,100.25

	
January 12, 2019

	
17,814,594.58

	
0.00

	
398,154.97

	
798,002.26

	
July 12, 2019

	
17,311,112.04

	
0.00

	
503,482.54

	
0.00

	
January 12, 2020

	
16,808,987.28

	
0.00

	
502,124.76

	
0.00

	
July 12, 2020

	
16,295,492.45

	
0.00

	
513,494.83

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
16,295,492.45

	
0.00

	  	

N73445

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$27,779,000.00

	
5,425,000.00

	
0.00

	
0.00

	
July 12, 2011

	
27,779,000.00

	
5,425,000.00

	
0.00

	
0.00

	
January 12, 2012

	
27,471,798.41

	
5,232,604.10

	
307,201.59

	
192,395.90

	
July 12, 2012

	
26,932,518.36

	
4,915,326.48

	
539,280.05

	
317,277.62

	
January 12, 2013

	
26,263,154.27

	
4,592,491.86

	
669,364.09

	
322,834.62

	
July 12, 2013

	
25,591,150.37

	
4,268,506.14

	
672,003.90

	
323,985.72

	
January 12, 2014

	
24,901,110.47

	
3,936,976.23

	
690,039.90

	
331,529.91

	
July 12, 2014

	
24,229,935.36

	
3,605,820.21

	
671,175.11

	
331,156.02

	
January 12, 2015

	
23,560,232.23

	
3,268,614.94

	
669,703.13

	
337,205.27

	
July 12, 2015

	
22,879,259.27

	
2,926,246.96

	
680,972.96

	
342,367.98

	
January 12, 2016

	
22,138,499.58

	
2,575,333.14

	
740,759.69

	
350,913.82

	
July 12, 2016

	
21,361,707.61

	
2,222,501.01

	
776,791.97

	
352,832.13

	
January 12, 2017

	
20,595,708.40

	
1,872,034.18

	
765,999.21

	
350,466.83

	
July 12, 2017

	
19,856,972.74

	
1,524,557.54

	
738,735.66

	
347,476.64

	
January 12, 2018

	
19,337,609.94

	
1,174,581.53

	
519,362.80

	
349,976.01

	
July 12, 2018

	
18,639,515.40

	
816,701.25

	
698,094.54

	
357,880.28

	
January 12, 2019

	
18,238,863.22

	
0.00

	
400,652.18

	
816,701.25

	
July 12, 2019

	
17,730,296.55

	
0.00

	
508,566.67

	
0.00

	
January 12, 2020

	
17,222,994.94

	
0.00

	
507,301.61

	
0.00

	
July 12, 2020

	
16,703,905.35

	
0.00

	
519,089.59

	
0.00

	
January 12, 2021

	
0.00

	
0.00

	
16,703,905.35

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

8

 

Boeing 767-424ER

	  	  
	  	

N66057

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$19,950,000.00

	
$2,599,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
19,950,000.00

	
2,599,000.00

	
0.00

	
0.00

	
January 12, 2012

	
19,950,000.00

	
2,599,000.00

	
0.00

	
0.00

	
July 12, 2012

	
19,168,013.35

	
2,289,858.98

	
781,986.65

	
309,141.02

	
January 12, 2013

	
18,280,362.80

	
1,983,723.81

	
887,650.55

	
306,135.17

	
July 12, 2013

	
17,399,195.06

	
1,685,097.28

	
881,167.74

	
298,626.53

	
January 12, 2014

	
16,512,628.20

	
1,389,285.01

	
886,566.86

	
295,812.27

	
July 12, 2014

	
15,651,254.15

	
1,103,396.08

	
861,374.05

	
285,888.93

	
January 12, 2015

	
14,801,110.53

	
822,940.85

	
850,143.62

	
280,455.23

	
July 12, 2015

	
13,953,051.54

	
822,940.85

	
848,058.99

	
0.00

	
January 12, 2016

	
13,072,828.52

	
549,456.38

	
880,223.02

	
273,484.47

	
July 12, 2016

	
11,556,534.65

	
549,456.38

	
1,516,293.87

	
0.00

	
January 12, 2017

	
10,081,259.23

	
314,564.91

	
1,475,275.42

	
234,891.47

	
July 12, 2017

	
8,754,162.97

	
314,564.91

	
1,327,096.26

	
0.00

	
January 12, 2018

	
7,452,180.32

	
0.00

	
1,301,982.65

	
314,564.91

	
July 12, 2018

	
6,178,386.42

	
0.00

	
1,273,793.90

	
0.00

	
January 12, 2019

	
0.00

	
0.00

	
6,178,386.42

	
0.00

	  	

N67058

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$19,285,000.00

	
$2,515,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
19,285,000.00

	
2,515,000.00

	
0.00

	
0.00

	
January 12, 2012

	
19,285,000.00

	
2,515,000.00

	
0.00

	
0.00

	
July 12, 2012

	
18,528,663.50

	
2,215,001.07

	
756,336.50

	
299,998.93

	
January 12, 2013

	
17,670,474.70

	
1,918,873.79

	
858,188.80

	
296,127.28

	
July 12, 2013

	
16,818,556.64

	
1,630,009.67

	
851,918.06

	
288,864.12

	
January 12, 2014

	
15,961,415.84

	
1,343,867.81

	
857,140.80

	
286,141.86

	
July 12, 2014

	
15,128,644.11

	
1,067,324.88

	
832,771.73

	
276,542.93

	
January 12, 2015

	
14,306,735.55

	
796,038.04

	
821,908.56

	
271,286.84

	
July 12, 2015

	
13,486,843.27

	
796,038.04

	
819,892.28

	
0.00

	
January 12, 2016

	
12,635,838.28

	
531,494.07

	
851,004.99

	
264,543.97

	
July 12, 2016

	
11,224,993.45

	
531,494.07

	
1,410,844.83

	
0.00

	
January 12, 2017

	
9,851,487.49

	
304,281.45

	
1,373,505.96

	
227,212.62

	
July 12, 2017

	
8,620,153.12

	
304,281.45

	
1,231,334.37

	
0.00

	
January 12, 2018

	
7,411,335.27

	
0.00

	
1,208,817.85

	
304,281.45

	
July 12, 2018

	
6,227,791.09

	
0.00

	
1,183,544.18

	
0.00

	
January 12, 2019

	
0.00

	
0.00

	
6,227,791.09

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

9

	  	

N69059

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$19,377,000.00

	
$2,527,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
19,377,000.00

	
2,527,000.00

	
0.00

	
0.00

	
January 12, 2012

	
19,377,000.00

	
2,527,000.00

	
0.00

	
0.00

	
July 12, 2012

	
18,617,579.70

	
2,225,411.77

	
759,420.30

	
301,588.23

	
January 12, 2013

	
17,755,293.58

	
1,927,892.67

	
862,286.12

	
297,519.10

	
July 12, 2013

	
16,899,307.69

	
1,637,670.86

	
855,985.89

	
290,221.81

	
January 12, 2014

	
16,038,074.51

	
1,350,184.11

	
861,233.18

	
287,486.75

	
July 12, 2014

	
15,201,324.99

	
1,072,341.42

	
836,749.52

	
277,842.69

	
January 12, 2015

	
14,375,489.68

	
799,779.48

	
825,835.31

	
272,561.94

	
July 12, 2015

	
13,551,680.19

	
799,779.48

	
823,809.49

	
0.00

	
January 12, 2016

	
12,696,611.75

	
533,992.13

	
855,068.44

	
265,787.35

	
July 12, 2016

	
11,271,101.83

	
533,992.13

	
1,425,509.92

	
0.00

	
January 12, 2017

	
9,883,442.50

	
305,711.60

	
1,387,659.33

	
228,280.53

	
July 12, 2017

	
8,638,790.24

	
305,711.60

	
1,244,652.26

	
0.00

	
January 12, 2018

	
7,417,015.70

	
0.00

	
1,221,774.54

	
305,711.60

	
July 12, 2018

	
6,220,920.23

	
0.00

	
1,196,095.47

	
0.00

	
January 12, 2019

	
0.00

	
0.00

	
6,220,920.23

	
0.00

	  	

N78060

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$19,448,000.00

	
$2,535,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
19,448,000.00

	
2,535,000.00

	
0.00

	
0.00

	
January 12, 2012

	
19,448,000.00

	
2,535,000.00

	
0.00

	
0.00

	
July 12, 2012

	
18,685,325.39

	
2,233,343.73

	
762,674.61

	
301,656.27

	
January 12, 2013

	
17,819,917.48

	
1,934,764.20

	
865,407.91

	
298,579.53

	
July 12, 2013

	
16,960,832.29

	
1,643,507.96

	
859,085.19

	
291,256.24

	
January 12, 2014

	
16,096,481.12

	
1,354,996.53

	
864,351.17

	
288,511.43

	
July 12, 2014

	
15,256,700.88

	
1,076,163.53

	
839,780.24

	
278,833.00

	
January 12, 2015

	
14,427,873.79

	
802,630.11

	
828,827.09

	
273,533.42

	
July 12, 2015

	
13,601,079.74

	
802,630.11

	
826,794.05

	
0.00

	
January 12, 2016

	
12,742,915.35

	
535,895.43

	
858,164.39

	
266,734.68

	
July 12, 2016

	
11,306,232.02

	
535,895.43

	
1,436,683.33

	
0.00

	
January 12, 2017

	
9,907,789.17

	
306,801.24

	
1,398,442.85

	
229,094.19

	
July 12, 2017

	
8,652,989.96

	
306,801.24

	
1,254,799.21

	
0.00

	
January 12, 2018

	
7,421,343.66

	
0.00

	
1,231,646.30

	
306,801.24

	
July 12, 2018

	
6,215,685.30

	
0.00

	
1,205,658.36

	
0.00

	
January 12, 2019

	
0.00

	
0.00

	
6,215,685.30

	
0.00

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

10

	  	

N68061

	  	

Equipment Note Ending Balance

	

Scheduled Payments of Principal

	
Date

	

Series A

Equipment Note

	

Series B

Equipment Note

	

Series A

Equipment Note

	

Series B

Equipment Note

	
At Issuance

	
$19,524,000.00

	
$2,546,000.00

	
$0.00

	
$0.00

	
July 12, 2011

	
19,524,000.00

	
2,546,000.00

	
0.00

	
0.00

	
January 12, 2012

	
19,524,000.00

	
2,546,000.00

	
0.00

	
0.00

	
July 12, 2012

	
18,780,313.46

	
2,247,009.10

	
743,686.54

	
298,990.90

	
January 12, 2013

	
17,932,806.67

	
1,950,252.35

	
847,506.79

	
296,756.75

	
July 12, 2013

	
17,091,130.61

	
1,660,351.52

	
841,676.06

	
289,900.83

	
January 12, 2014

	
16,243,559.12

	
1,372,658.13

	
847,571.49

	
287,693.39

	
July 12, 2014

	
15,420,142.38

	
1,094,122.00

	
823,416.74

	
278,536.13

	
January 12, 2015

	
14,607,136.65

	
820,281.60

	
813,005.73

	
273,840.40

	
July 12, 2015

	
13,795,470.55

	
820,281.60

	
811,666.10

	
0.00

	
January 12, 2016

	
12,951,134.16

	
552,597.58

	
844,336.39

	
267,684.02

	
July 12, 2016

	
11,495,934.43

	
552,597.58

	
1,455,199.73

	
0.00

	
January 12, 2017

	
10,077,859.41

	
321,230.35

	
1,418,075.02

	
231,367.23

	
July 12, 2017

	
8,698,402.83

	
321,230.35

	
1,379,456.58

	
0.00

	
January 12, 2018

	
7,452,144.18

	
0.00

	
1,246,258.65

	
321,230.35

	
July 12, 2018

	
6,230,652.72

	
0.00

	
1,221,491.46

	
0.00

	
January 12, 2019

	
0.00

	
0.00

	
6,230,652.72

	
0.00

 

Indenture

 

Debt Rate (as such term is defined in clause (i) of the form of Indenture marked as Exhibit C of the Note Purchase Agreement (the "Indenture Form") for Series A (computed on the basis of a 360-day year consisting of twelve 30-day months, payable semi-annually in arrears):  4.750%

 

Debt Rate (as such term is defined in clause (i) of the Indenture Form) for Series B (computed on the basis of a 360-day year consisting of twelve 30 day months, payable semi-annually in arrears):  6.000%

 

	
Payment Due Rate:

	
Debt Rate plus 2% per annum

 

	
Payment Dates:

	
January 12 and July 12 (after January 12, 2011)

 

	
Make-Whole Premiums:

	
As provided in Article II of the Indenture Form

 

	
Redemption:

	
As provided in Article II of the Indenture Form

 

	
All-risk hull insurance:

	
Not less than the unpaid principal amount of the Equipment Notes relating to an Aircraft, together with six months of interest accrued thereon, subject to Continental’s right to self-insure on terms no more favorable to Continental in any material respect than those set forth in Section G of Annex B to the Indenture Form.

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

11

 

Participation Agreement

 

Mortgagee, Subordination Agent, Liquidity Providers, Pass Through Trustees, Escrow Agents and Note Holders indemnified against Expenses and Taxes to the extent set forth in Section 8 of the form of the Participation Agreement marked as Exhibit B to the Note Purchase Agreement.

 

Prohibited Modifications

 

	
1.

	
May not modify in any material adverse respect the Granting Clause of the Indenture so as to deprive the Note Holders or the Related Note Holders (as defined in the Indenture) of a first priority security interest in and mortgage lien on the Aircraft or, to the extent assigned thereunder, Continental’s rights under the Purchase Agreement (as defined in the Indenture) or to eliminate any of the obligations intended to be secured thereby or otherwise modify in any material adverse respect as regards the interests of the Note Holders, the Related Note Holder of a Related Series A Equipment Note, the Related Note Holder of a Related Series B Equipment Note, the Subordination Agent, the Liquidity Providers or the Mortgagee the provisions of Article II or III or Section 4.05(c), 5.01, 5.02, 6.02, 10.01(a), 10.01(b)(vii), 11.01, 11.04, 11.11, 11.12 or 11.13 of the Indenture or the definition of “Make-Whole Amount” in Annex A to the Indenture.

 

	
2.  

	
May not modify in any material adverse respect as regards the interests of the Note Holders, the Subordination Agent, the Liquidity Providers or the Mortgagee the provisions of Section 4.1.3, 4.1.8, 4.1.9, 4.1.10, 4.1.11, 6.1.3(b), 6.3, 10, 12.8(a) or 12.9 of the Participation Agreement, of the provisions of Section 4.1.2(x) of the Participation Agreement so as to eliminate the requirement to deliver to the Loan Participant or the Mortgagee, as the case may be, the legal opinions to be provided to such Persons thereunder (recognizing that the lawyers rendering such opinions may be changed) or of the provisions of Section 6.4.5(a)(ii) of the Participation Agreement as regards the rights of the Mortgagee thereunder or otherwise modify the terms of the Participation Agreement to deprive the Trustees, the Subordination Agent, the Liquidity Providers or the Mortgagee of any indemnity or right of reimbursement in its favor for Expenses or Taxes.

 

Notwithstanding the foregoing, any form of Financing Agreement may be modified to correct or supplement any such provision which may be defective or to cure any ambiguity or correct any mistake, provided that any such action shall not materially adversely affect the interests of the Note Holders, the Related Note Holder of a Related Series A Equipment Note, the Related Note Holder of a Related Series B Equipment Note, the

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

 

12

 

Subordination Agent, the Liquidity Providers, the Mortgagee or the Certificateholders.

 

Schedule III: Required Terms [NPA 2010-1 EETC]

  

  

BACK

ANNEX A to

Note Purchase Agreement

DEFINITIONS

 

"Act" means 49 U.S.C. §§ 40101-46507.

 

"Additional Series Equipment Notes" means Equipment Notes of a single series issued under an Indenture and designated other than as "Series A" or "Series B" issued thereunder, if any.

 

"Additional Series Pass Through Certificates" means the pass through certificates issued pursuant to any Additional Series Pass Through Trust Agreement.

 

"Additional Series Pass Through Trust" means a grantor trust created to facilitate the issuance and sale of pass through certificates in connection with the issuance of any Additional Series Equipment Notes.

 

"Additional Series Pass Through Trust Agreement" means a Trust Supplement entered into in connection with the creation of an Additional Series Pass Through Trust, together with the Basic Pass Through Trust Agreement.

 

"Additional Series Pass Through Trustee" means WTC, in its capacity as trustee under an Additional Series Pass Through Trust Agreement.

 

"Aircraft" has the meaning set forth in the second recital to the Note Purchase Agreement.

 

"Aircraft Purchase Agreement" means the Purchase Agreement No. 1951, dated as of July 23, 1996, as amended, between the Company and the Manufacturer (including all exhibits thereto, together with all letter agreements entered into that by their terms constitute part of such Purchase Agreement).

 

"Applicable Pass Through Trustee" has the meaning provided in Section 1(b)(ii) of the Note Purchase Agreement.

 

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

 

"Basic Pass Through Trust Agreement" means the Pass Through Trust Agreement, dated September 25, 1997, between the Company and Pass Through Trustee, as such agreement may be supplemented, amended or modified, but does not include any Trust Supplement.

Annex A (NPA 10-1)

  

  

BACK

 

2

 

 

"Business Day" means any day, other than a Saturday, Sunday or other day on which commercial banks are authorized or required by law to close in New York, New York, Houston, Texas, Wilmington, Delaware or Salt Lake City, Utah.

 

"Certificates" has the meaning set forth in the fourth recital to the Note Purchase Agreement.

 

"Certificateholder" means the Person in whose name a Certificate is registered in the Register.

 

"Class" means the class of Certificates issued by each Pass Through Trust.

 

"Class A Certificates" means Certificates issued by the Class A Pass Through Trust.

 

"Class B Certificates" means Certificates issued by the Class B Pass Through Trust.

 

"Class A Pass Through Trustee" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"Class B Pass Through Trustee" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"Closing Notice" has the meaning set forth in Section 1(b) of the Note Purchase Agreement.

 

"Company" means Continental Airlines, Inc., a Delaware corporation.

 

"Cut-off Date" means the earlier of (a) the day after the Delivery Period Termination Date and (b) the date on which a Triggering Event occurs.

 

"Delivery Period Termination Date" means the earlier of (a) July 31, 2011, and (b) the date on which Equipment Notes issued with respect to all of the Aircraft (including any Substitute Aircraft in lieu of any New Aircraft) have been purchased by the Pass Through Trustees in accordance with the Note Purchase Agreement.

 

"Delivery Date" means the Business Day on which a New Aircraft is delivered to and accepted by the Company.

 

"Deposits" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

Annex A (NPA 10-1)

  

  

BACK

 

3

 

"Deposit Agreements" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

 

"Depositary" means JPMorgan Chase Bank, N.A.

 

"Depositary Threshold Ratings" has the meaning set forth in Section 4(a)(vii) of the Note Purchase Agreement.

 

"Equipment Notes" means and includes any equipment notes issued under any Indenture in the form specified in Section 2.01 thereof (as such form may be varied pursuant to the terms of such Indenture) and any Equipment Note issued under any Indenture in exchange for or replacement of any other Equipment Note.

 

"Escrow Agent" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Escrow Agent Agreements" has the meaning set forth in Section 3(e)(i) of the Note Purchase Agreement.

 

"Escrow and Paying Agent Agreements" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

 

"FAA" means the Federal Aviation Administration of the United States.

 

"Financing Agreements" means, collectively, the Participation Agreement, the Indenture and the Equipment Notes issued thereunder.

 

"Funding Date" has the meaning set forth in Section 1(b)(i) of the Note Purchase Agreement.

 

"Government Entity" means (a) any federal, state, provincial or similar government, and any body, board, department, commission, court, tribunal, authority, agency or other instrumentality of any such government or otherwise exercising any executive, legislative, judicial, administrative or regulatory functions of such government or (b) any other government entity having jurisdiction over any matter contemplated by the Operative Agreements or relating to the observance or performance of the obligations of any of the parties to the Operative Agreements.

 

"Indenture" means the Trust Indenture and Mortgage substantially in the form of Exhibit C to the Note Purchase Agreement.

 

"Initial Deposits" has the meaning set forth in the sixth recital to the Note Purchase Agreement.

Annex A (NPA 10-1)

  

  

BACK

 

4

 

"Intercreditor Agreement" has the meaning set forth in the ninth recital to the Note Purchase Agreement.

 

"Issuance Date" means the date of the original issuance of the Certificates.

 

"Law" means (a) any constitution, treaty, statute, law, decree, regulation, order, rule or directive of any Government Entity, and (b) any judicial or administrative interpretation or application of, or decision under, any of the foregoing.

 

"Liquidity Facility" has the meaning set forth in the ninth recital to the Note Purchase Agreement.

 

"Liquidity Provider" has the meaning set forth in the ninth recital to the Note Purchase Agreement.

 

"Loan Trustee" means the "Mortgagee" as defined in the Financing Agreements.

 

"Manufacturer" means The Boeing Company, a Delaware corporation, solely in its capacity as manufacturer or seller of New Aircraft.

 

"New Aircraft" has the meaning set forth in the second recital to the Note Purchase Agreement.

 

"Note Purchase Agreement" means the Note Purchase Agreement to which this Annex A is attached.

 

"Notice of Purchase Withdrawal" with respect to each Deposit Agreement, has the meaning set forth in Section 2.3 thereof.

 

"Operative Agreements" means, collectively, the Pass Through Trust Agreements, the Escrow and Paying Agent Agreements, the Deposit Agreements, the Liquidity Facilities, the Intercreditor Agreement, the Equipment Notes, the Certificates and the Financing Agreements.

 

"Owned Aircraft" has the meaning set forth in the second recital to the Note Purchase Agreement.

 

"Participation Agreement" means, the Participation Agreement substantially in the form of Exhibit B to the Note Purchase Agreement.

 

"Paying Agent Agreements" has the meaning set forth in Section 3(f)(i) of the Note Purchase Agreement.

Annex A (NPA 10-1)

  

  

BACK

 

5

 

"Pass Through Trust" has the meaning set forth in the fourth recital to the Note Purchase Agreement.

 

"Pass Through Trust Agreement" means each of the two separate Trust Supplements referred to in the fourth recital to the Note Purchase Agreement, together in each case with the Basic Pass Through Trust Agreement, each dated as of the Issuance Date, by and between the Company and Pass Through Trustee.

 

"Pass Through Trustee" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Paying Agent" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Person" means any individual, firm, partnership, joint venture, trust, trustee, Government Entity, organization, association, corporation, limited liability company, government agency, committee, department, authority and other body, corporate or incorporate, whether having distinct legal status or not, or any member of any of the same.

 

"Rating Agencies" means, collectively, at any time, each nationally recognized rating agency which shall have been requested to rate the Certificates and which shall then be rating the Certificates.  The initial Rating Agencies will be Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business.

 

"Rating Agency Confirmation" means, with respect to (1) any Financing Agreement that has been modified in any material respect from the forms thereof attached to the Note Purchase Agreement or (2) a Substitute Aircraft, a written confirmation from each of the Rating Agencies that (1) the use of such Financing Agreement with such modifications or (2) the substituting of such Substitute Aircraft for a New Aircraft, whichever of the foregoing shall in a particular case require Rating Agency Confirmation, would not result in (i) a reduction of the rating for any Class of Certificates then rated by the Rating Agencies below the then current rating for such Class of Certificates or (ii) a withdrawal or suspension of the rating of any Class of Certificates then rated by the Rating Agencies.

 

"Register" means the register maintained pursuant to Sections 3.04 and 7.12 of the Basic Pass Through Trust Agreement with respect to each Pass Through Trust.

Annex A (NPA 10-1)

  

  

BACK

 

6

 

"Replacement Deposit Agreement" means, for each Class of Certificates, a deposit agreement substantially in the form of the replaced Deposit Agreement for such Class of Certificates as shall permit the Rating Agencies to confirm in writing their respective ratings then in effect for such Class of Certificates (before the downgrading of such ratings, if any, as a result of the downgrading of the Depositary, if applicable).

"Replacement Depositary" has the meaning set forth in Section 4(a)(vii) of the Note Purchase Agreement.

 

"Required Terms" means the terms set forth on Schedule III to the Note Purchase Agreement.

 

"Scheduled Closing Date" has the meaning set forth in Section 1(b) of the Note Purchase Agreement.

 

"Section 1110" means 11 U.S.C. § 1110 of the Bankruptcy Code or any successor or analogous Section of the federal bankruptcy Law in effect from time to time.

 

"Series A Equipment Notes" means the "Series A Equipment Notes" as defined in each Indenture entered into pursuant to the Note Purchase Agreement.

 

"Series B Equipment Notes" means the "Series B Equipment Notes" as defined in each Indenture entered into pursuant to the Note Purchase Agreement.

 

"Subordination Agent" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

 

"Substitute Aircraft" has the meaning set forth in Section 1(g) of the Note Purchase Agreement.

 

"Taxes" means all license, recording, documentary, registration and other similar fees and all taxes, levies, imposts, duties, charges, assessments or withholdings of any nature whatsoever imposed by any Taxing Authority, together with any penalties, additions to tax, fines or interest thereon or additions thereto.

 

"Taxing Authority" means any federal, state or local government or other taxing authority in the United States, any foreign government or any political subdivision or taxing authority thereof, any international taxing authority or any territory or possession of the United States or any taxing authority thereof.

Annex A (NPA 10-1)

  

  

BACK

 

7

 

"Triggering Event" has the meaning assigned to such term in the Intercreditor Agreement.

 

"Trust Supplement" means an agreement supplemental to the Basic Pass Through Trust Agreement pursuant to which (i) a separate trust is created for the benefit of the holders of the pass through certificates of a class, (ii) the issuance of the pass through certificates of such class representing fractional undivided interests in such trust is authorized and (iii) the terms of the pass through certificates of such class are established.

 

"Underwriters" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"Underwriting Agreement" has the meaning set forth in the fifth recital to the Note Purchase Agreement.

 

"WTC" has the meaning set forth in the first paragraph of the Note Purchase Agreement.

Annex A (NPA 10-1)

  

  

BACK

 

EXHIBIT A

TO

NOTE PURCHASE AGREEMENT

 

CLOSING NOTICE

 

 

Dated as of [_________]

 

To each of the addressees listed

in Schedule A hereto

 

	
  

	
Re:

	
Closing Notice in accordance with Note Purchase Agreement referred to below

 

Ladies and Gentlemen:

 

Reference is made to the Note Purchase Agreement, dated as of December 2, 2010, among Continental Airlines, Inc. (the “Company”), Wilmington Trust Company, as Pass Through Trustee under each of the  Pass Through Trust Agreements (as defined therein) (the “Pass Through Trustee”), Wilmington Trust Company, as Subordination Agent (the “Subordination Agent”), Wells Fargo Bank Northwest, National Association, as Escrow Agent (the “Escrow Agent”), and Wilmington Trust Company, as Paying Agent (the “Paying Agent”) (as in effect from time to time, the “Note Purchase Agreement”).  Unless otherwise defined herein, capitalized terms used herein shall have the meanings set forth in the Note Purchase Agreement or, to the extent not defined therein, the Intercreditor Agreement.

 

Pursuant to Section 1(b) of the Note Purchase Agreement, the undersigned hereby notifies you, in respect of the Boeing Model [_______] aircraft with manufacturer’s serial number [______] (the “Aircraft”), of the following:

 

	
(1)

	
The Scheduled Closing Date of the Aircraft is [_________];

 

	
(2)

	
The Funding Date for the Aircraft shall be [__________]; and

 

	
(3)

	
The aggregate amount of each series of Equipment Notes to be issued, and purchased by the respective Pass Through Trustees referred to below (each, an “Applicable Pass Through Trustee”), on the Funding Date, in connection with the financing of such Aircraft is as follows:

 

	
  

	
(a)

	
the Class A Pass Through Trustee shall purchase Series A Equipment Notes in the amount of $[__________]; and

	
  

	
(b)

	
the Class B Pass Through Trustee shall purchase Series B Equipment Notes in the amount of $[__________].

Closing Notice 10-1

  

  

BACK

-2-

 

 

The Company hereby instructs the Class A Pass Through Trustee to (i) execute a Withdrawal Certificate in the form of Annex A hereto dated as of [__________] and attach thereto a Notice of Purchase Withdrawal dated such date completed as set forth on Exhibit A hereto and (ii) deliver such Withdrawal Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

 

 

The Company hereby instructs the Class B Pass Through Trustee to (i) execute a Withdrawal Certificate in the form of Annex A hereto dated as of [__________] and attach thereto a Notice of Purchase Withdrawal dated such date completed as set forth on Exhibit B hereto and (ii) deliver such Withdrawal Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

 

The Company hereby instructs each Applicable Pass Through Trustee to (i) purchase Equipment Notes of a series and in an amount set forth opposite such Pass Through Trustee in clause (3) above with a portion of the proceeds of the withdrawals of Deposits referred to in the applicable Notice of Purchase Withdrawal referred to above and (ii) re-deposit with the Depositary the excess, if any, of the amount so withdrawn over the purchase price of such Equipment Notes.

 

The Company hereby instructs each Applicable Pass Through Trustee to (a) enter into the Participation Agreement [____] dated as of [___________] among the Company, as Owner, and Wilmington Trust Company, as Mortgagee and Loan Participant, (b) perform its obligations thereunder and (c) deliver such certificates, documents and legal opinions relating to such Pass Through Trustee as required thereby.

 

 

	 Yours faithfully, 

 

Continental Airlines, Inc.

	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 By:	 	 	 	 	 	 	 
	 	 Name:	
 

	 	 	 	
 

	 
	 	 Title:	
 

	 	 	 	
 

	 
	 	 	
 

	 	 	
 

	
 

	 

 

 

 

 

 

Closing Notice 10-1

  

  

BACK

SCHEDULE A

 

Wilmington Trust Company, as

   Pass Through Trustee, Subordination

   Agent and Paying Agent

1100 North Market Street

Wilmington, Delaware  19890-1605

Attention:  Corporate Trust Administration

Facsimile:  (302) 636-4140

 

Wells Fargo Bank Northwest, National Association,

   as Escrow Agent

MAC: U1228-120

299 South Main Street, 12th Floor

Salt Lake City, Utah  84111

Attention:  Corporate Trust Department

Facsimile:  (801) 246-5053

JPMorgan Chase Bank, N.A.,

   as Depositary

4 New York Plaza, 21st Floor

New York, New York 10004

Attention: Michael Kuzmicz/Andrew Jacknick

Reference: Continental Airlines 2010-1

Facsimile: (212) 623-6168

 

Standard & Poor’s Ratings Services

55 Water Street, 39th Floor

New York, New York  10041-0003

Attention:  Philip A. Baggaley, CFA

Facsimile:  (212) 438-7820

 

Moody’s Investors Service, Inc.

7 World Trade Center at 250 Greenwich Street

New York, New York  10007

Attention:  Michael Mulvaney

Facsimile:  212-553-4661

Closing Notice 10-1

  

  

BACK

Annex A

 

WITHDRAWAL CERTIFICATE

(Class ___)

 

Wells Fargo Bank Northwest, National Association,

as Escrow Agent

 

Ladies and Gentlemen:

 

Reference is made to the Escrow and Paying Agent Agreement, dated as of December 2, 2010 (the “Agreement”).  We hereby certify to you that the conditions to the obligations of the undersigned to execute a Participation Agreement pursuant to the Note Purchase Agreement have been satisfied.  Pursuant to Section 1.02(c) of the Agreement, please execute the attached Notice of Purchase Withdrawal and immediately transmit by facsimile to the Depositary, at (212) 623-6168 (Attention:  Michael Kuzmicz/Andrew Jacknick).

 

 

Capitalized terms used herein but not defined herein shall have the meanings set forth in the Agreement.

 

 

	 	 	 	 	 	 Very truly yours,	 
	 	 	 	 	 	 	 
	 	 	 	 	 	
WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Pass Through Trustee

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By: 	
 

	 
	 	 	
 

	 	 	 	
Name:

	 
	 	 	
 

	 	 	
 

	
Title:

	 

 

 

 

 

Dated: As of [____________]

 

 

Closing Notice 10-1

  

  

BACK

Exhibit A

 

NOTICE OF PURCHASE WITHDRAWAL

JPMorgan Chase Bank, N.A.,

   as Depositary

4 New York Plaza, 21st Floor

New York, New York 10004

Attention: Michael Kuzmicz/Andrew Jacknick

Reference: Continental Airlines 2010-1

Telecopier: (212) 623-6168

 

Ladies and Gentlemen:

 

Reference is made to the Deposit Agreement (Class A) dated as of December 2, 2010 (the “Deposit Agreement”) between Wells Fargo Bank Northwest, National Association, as Escrow Agent, and JPMorgan Chase Bank, N.A., as Depositary (the “Depositary”).

 

In accordance with Section 2.3(a) of the Deposit Agreement, the undersigned hereby requests the withdrawal of the entire amount of the Deposit, $[_______], Account No. [____].

 

The undersigned hereby directs the Depositary to pay the entire amount of the Deposit to [___________________], Account No. [____], Reference: [_________] on [__________].

 

 

	 	 	 	 	 	
WELLS FARGO BANK NORTHWEST, 

   NATIONAL ASSOCIATION, 

   as Escrow Agent

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
 

	 
	 	 	
 

	 	 	 	
Name:

	 
	 	 	
 

	 	 	
 

	
Title:

	 

 

 

Dated: As of [____________]

Closing Notice 10-1

  

  

BACK

Exhibit B

 

NOTICE OF PURCHASE WITHDRAWAL

JPMorgan Chase Bank, N.A.,

   as Depositary

4 New York Plaza, 21st Floor

New York, New York 10004

Attention: Michael Kuzmicz/Andrew Jacknick

Reference: Continental Airlines 2010-1

Telecopier: (212) 623-6168

 

Ladies and Gentlemen:

 

Reference is made to the Deposit Agreement (Class B) dated as of December 2, 2010 (the “Deposit Agreement”) between Wells Fargo Bank Northwest, National Association, as Escrow Agent, and JPMorgan Chase Bank, N.A., as Depositary (the “Depositary”).

 

In accordance with Section 2.3(a) of the Deposit Agreement, the undersigned hereby requests the withdrawal of the entire amount of the Deposit, $[_______], Account No. [____].

 

The undersigned hereby directs the Depositary to pay the entire amount of the Deposit to [___________________], Account No. [____], Reference: [__________] on [__________].

 

 

	 	 	 	 	 	
WELLS FARGO BANK NORTHWEST, 

   NATIONAL ASSOCIATION, 

   as Escrow Agent

	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	
 

	 	 	By 	
 

	 
	 	 	
 

	 	 	 	
Name:

	 
	 	 	
 

	 	 	
 

	
Title:

	 

 

 

Dated: As of [____________]

Closing Notice 10-1

  

  

BACK

 

EXHIBIT B to

Note Purchase Agreement

 

FORM OF PARTICIPATION AGREEMENT

See Exhibit 4.13

 

 

Note Purchase Agreement 10-1

  

  

BACK

EXHIBIT C to

Note Purchase Agreement

 

FORM OF INDENTURE

 

See Exhibit 4.14

 

 

 

 

Note Purchase Agreement 10-1

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