Document:

Participation Agreement

 EXHIBIT 10.14 
  
 EXECUTION VERSION 
  

 
 PARTICIPATION AGREEMENT 
  
 Dated as of August 16, 2001 
  
 Among 
  
 ABX AIR, INC., 
 Lessee, 
  
 MITSUI & CO., LTD. 
 Finance Lessor, 
  
 TOMAIR, LLC, 
 Owner Participant, 
  
 and 
  
 WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, 
 not in its individual capacity except as expressly 
 stated herein but solely as Owner
Trustee, 
 Owner Trustee. 
  

  
 Lease of 
  
 Three Boeing 767-200 Aircraft 
  
 U.S. Registration Numbers N784AX, N785AX and N786AX 
  

 TABLE OF CONTENTS 
  

	 	 	 	 	 	 	  	Page

	 Section 1.
	 	Definitions	  	1
	 Section 2.
	 	Participation in Purchase of the Aircraft	  	1
	 	 	(a	)	 	Date of Purchase	  	1
	 	 	(b	)	 	Transfer of Funds	  	2
	 	 	(c	)	 	Failure to Make Commitment Available	  	2
	 Section 3.
	 	Delivery Date	  	2
	 	 	(a	)	 	Notice	  	2
	 	 	(b	)	 	Delivery and Sale of Aircraft	  	2
	 Section 4.
	 	Instructions to the Owner Trustee	  	3
	 Section 5.
	 	Conditions to the Obligations of the Participants	  	4
	 	 	(a	)	 	Notice; Commitments of Other Participants; Delivery of Aircraft	  	4
	 	 	(b	)	 	Legality	  	4
	 	 	(c	)	 	No Material Adverse Change	  	4
	 	 	(d	)	 	Authorizations; Execution and Delivery of Documents	  	4
	 	 	(e	)	 	Financing Statements	  	6
	 	 	(f	)	 	Consents, Approvals, Etc.	  	6
	 	 	(g	)	 	Ownership, Etc.	  	6
	 	 	(h	)	 	Additional Officer’s Certificates	  	6
	 	 	(i	)	 	Resolutions, Certificates, Etc.	  	7
	 	 	(j	)	 	Event of Loss	  	8
	 	 	(k	)	 	Appraisal	  	8
	 	 	(l	)	 	Opinion of Counsel for the Lessee	  	8
	 	 	(m	)	 	[reserved]	  	8
	 	 	(n	)	 	Opinion of Counsel for the Owner Trustee	  	8
	 	 	(o	)	 	[reserved]	  	8
	 	 	(p	)	 	Opinion of FAA Counsel	  	8
	 	 	(q	)	 	Opinion of Counsel for the Finance Lessor	  	8
	 	 	(r	)	 	[reserved]	  	8
	 	 	(s	)	 	[reserved]	  	8
	 	 	(t	)	 	Payment of Taxes, Etc.	  	8
	 	 	(u	)	 	Insurance Report and Certificate	  	8
	 	 	(v	)	 	[reserved]	  	9
	 	 	(w	)	 	Accuracy of Representations and Warranties	  	9
	 	 	(x	)	 	No Action or Proceeding	  	9
	 	 	(y	)	 	No Event of Default or Default	  	9
	 	 	(z	)	 	Letter of Credit	  	9
	 	 	(aa	)	 	Transaction Fee and Costs	  	9
	 	 	(bb	)	 	Other Conditions	  	9
	 Section 6.
	 	Conditions Precedent to Obligations of the Lessee	  	9
	 	 	(a	)	 	Illegality	  	9
	 	 	(b	)	 	Other Documents	  	10
	 Section 7.
	 	Return of Funds	  	10

  

 i 

	 Section 8.
	  	Representations and Warranties of the Lessee	  	10
	 	  	(a	)	 	Organization	  	10
	 	  	(b	)	 	No Consent Required	  	11
	 	  	(c	)	 	Financing Statements, Etc.	  	11
	 	  	(d	)	 	No Conflicts, Etc.	  	11
	 	  	(e	)	 	Due Authorization	  	12
	 	  	(f	)	 	No Approvals Required	  	12
	 	  	(g	)	 	No Public Offering	  	12
	 	  	(h	)	 	No Material Litigation	  	12
	 	  	(i	)	 	[Reserved]	  	12
	 	  	(j	)	 	Tax Returns	  	12
	 	  	(k	)	 	ERISA	  	12
	 	  	(l	)	 	Financial Statements.	  	13
	 	  	(m	)	 	No Misstatements or Omissions	  	13
	 	  	(n	)	 	Defaults	  	13
	 	  	(o	)	 	Sales and Use Tax	  	13
	 	  	(p	)	 	Insurance	  	13
	 	  	(q	)	 	Maintenance Reserves	  	13
	 	  	(r	)	 	Pari Passu	  	13
	 Section 9.
	  	Representations and Warranties of Participants	  	14
	 	  	(a	)	 	Owner Participant’s Representations and Warranties	  	14
	 	  	(b	)	 	Finance Lessors’ Representations, Warranties and Covenants	  	15
	 Section 10.
	  	Representations and Warranties of the Trust Company	  	15
	 	  	(a	)	 	Corporate Organization	  	15
	 	  	(b	)	 	Authorization	  	15
	 	  	(c	)	 	No Conflicts, Etc.	  	16
	 	  	(d	)	 	No Consent Required	  	16
	 	  	(e	)	 	Chief Place of Business; State of Location	  	16
	 	  	(f	)	 	Title	  	16
	 Section 11.
	  	[reserved]	  	17
	 Section 12.
	  	Representations and Warranties of the Owner Trustee	  	17
	 	  	(a	)	 	Enforceability	  	17
	 	  	(b	)	 	No Approvals Required	  	17
	 	  	(c	)	 	Compliance	  	17
	 Section 13.
	  	Lessee Covenants	  	17
	 	  	(a	)	 	Further Assurances, Etc.	  	17
	 	  	(b	)	 	Lessee to Defend Title	  	17
	 	  	(c	)	 	Merger, Consolidation, Etc., of Lessee	  	17
	 	  	(d	)	 	Registration	  	18
	 	  	(e	)	 	Opinion of Counsel	  	18
	 	  	(f	)	 	[reserved]	  	18
	 	  	(g	)	 	Financial Reports	  	18
	 	  	(h	)	 	Use of Proceeds	  	19
	 	  	(i	)	 	Security Deposit	  	20
	 	  	(j	)	 	Maintenance Reserves	  	20
	 Section 14.
	  	General Indemnities	  	20

  

 ii 

	 	  	(a	)	 	General Indemnity	  	20
	 	  	(b	)	 	General Tax Indemnity	  	23
	 	  	(c	)	 	Exclusions	  	24
	 	  	(d	)	 	Calculation of Payments	  	26
	 	  	(e	)	 	Payment	  	27
	 	  	(f	)	 	Contest	  	27
	 	  	(g	)	 	Refund	  	29
	 	  	(h	)	 	Reports	  	30
	 	  	(i	)	 	Forms, Etc.	  	30
	 	  	(j	)	 	Records	  	31
	 	  	(k	)	 	Non-Parties	  	31
	 	  	(l	)	 	Affiliates Group	  	31
	 	  	(m	)	 	Verification	  	31
	 	  	(n	)	 	Withholding on Lease Payments	  	32
	 	  	(o	)	 	Withholding Taxes on Finance Lease Payments	  	32
	 	  	(p	)	 	Finance Lease Withholding Tax Indemnity for Owner Participant	  	34
	 	  	(q	)	 	Transfer Covenant/VAT Expenses	  	34
	 Section 15.
	  	Purchase Options	  	34
	 	  	(a	)	 	End of Basic Term Purchase Option	  	34
	 	  	(b	)	 	End of Renewal Term Purchase Option	  	35
	 	  	(c	)	 	Exercise of Purchase Option	  	35
	 	  	(d	)	 	Determination of Appraised Value	  	35
	 	  	(e	)	 	Title	  	35
	 Section 16.
	  	Other Covenants	  	36
	 	  	(a	)	 	No Lessor Liens	  	36
	 	  	(b	)	 	Trust Agreement	  	36
	 	  	(c	)	 	Successor Owner Trustee; Change of Office	  	37
	 	  	(d	)	 	No Termination	  	37
	 	  	(e	)	 	Section 1111(b)	  	37
	 	  	(f	)	 	Transfer of Finance Lessor’s Interest	  	37
	 	  	(g	)	 	Citizenship	  	38
	 Section 17.
	  	Expenses	  	38
	 	  	(a	)	 	Transaction Costs	  	38
	 	  	(b	)	 	Amendments, Waivers, Etc.	  	38
	 	  	(c	)	 	Fees of Trustees	  	38
	 Section 18.
	  	Transfer of Owner Participant’s Interest	  	38
	 Section 19.
	  	Miscellaneous	  	39
	 	  	(a	)	 	Notices	  	39
	 	  	(b	)	 	Survival	  	41
	 	  	(c	)	 	Binding Effect	  	42
	 	  	(d	)	 	Counterparts	  	42
	 	  	(e	)	 	Governing Law	  	42
	 	  	(f	)	 	Amendments, Modifications, Etc.	  	42
	 	  	(g	)	 	Headings and Table of Contents	  	42
	 	  	(h	)	 	Currency	  	42
	 	  	(i	)	 	Severability	  	42

  

 iii 

	 	 	(j)	  	Entire Agreement	  	43
	 	 	 (k)
	  	Reserved	  	43
	 	 	 (l)
	  	Benefits of Certain Obligations	  	43
	 	 	 (m)
	  	Liabilities of Participants	  	43
	 	 	 (n)
	  	Confidentiality	  	43
	 	 	 (o)
	  	Consent of Jurisdiction; Waiver of Jury Trial	  	44
	 	 	 (p)
	  	Construction	  	44
	 	 	 (q)
	  	Lease; Interest on Finance Lease	  	45

  
 SCHEDULE 1 COMMITMENTS 
  

	EXHIBIT A	 	 Forms of Opinions of Counsel

		
	EXHIBIT B	 	 Form of Assignment of Warranties

  

 iv 

 THIS PARTICIPATION AGREEMENT dated as of August 16, 2001 (this “Agreement” or this
“Participation Agreement”) among ABX AIR. INC., a Delaware corporation, as Lessee, MITSUI & CO., LTD., a Japanese corporation, as Finance Lessor, TOMAIR, LLC, a Delaware limited liability company, as Owner Participant, and WELLS FARGO
BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking association, not in its individual capacity (except as expressly stated herein) but solely as Owner Trustee under the Trust Agreement. 
  
 WITNESSETH: 
  
 WHEREAS, the Lessee owns the three Boeing 767-200 aircraft which are the subject of this Agreement. 
  
 WHEREAS, pursuant to this Agreement, the Lessee has agreed to sell, and the
Owner Trustee has agreed to purchase, each of the Aircraft on the terms and conditions set forth herein. 
  
 WHEREAS, immediately prior to the execution and delivery of this Agreement, the Owner Participant entered into the Trust Agreement with the Trust Company,
pursuant to which the Owner Trustee has agreed, among other things, to hold the Trust Estate for the use and benefit of the Owner Participant (subject to the Lien of the Finance Lease and the Assignment Agreement). 
  
 WHEREAS, concurrently with the execution and delivery of this Agreement (a)
the Owner Trustee and the Lessee are entering into the Lease, providing for the lease of the Aircraft by the Owner Trustee to the Lessee, (b) the Owner Trustee is entering into the Finance Lease, pursuant to which the Owner Trustee has agreed, among
other things, to sell to and leaseback from the Finance Lessor, each of the Aircraft and to grant the Finance Lessor a first priority security interest in each of the Aircraft and the other Collateral described therein and (c) the Owner Trustee is
entering into the Assignment Agreement, pursuant to which the Owner Trustee has agreed, among other things, to grant the Finance Lessor a first priority security interest in all of the Owner Trustee’s right, title and interest in, to and under
the Lease, all Rent and other sums payable hereunder, the Security Deposit and the Guaranty. 
  
 NOW, THEREFORE, in consideration of the mutual agreements contained herein, the parties hereto hereby agree as follows: 
  
 Section 1. Definitions. For purposes hereof, capitalized terms used herein and not otherwise defined herein shall have the respective meanings
assigned thereto in Appendix A to the Lease Agreement dated as of the date hereof, between the Owner Trustee and the Lessee and the other interpretative provisions of said Appendix A shall be applied hereto. 
  
 Section 2. Participation in Purchase of the Aircraft. (a) Date of
Purchase. Subject to the terms and conditions of this Agreement, on the Delivery Date, but not later than August 31, 2001, the Owner Trustee shall purchase the Aircraft from the Lessee in accordance with the terms and conditions hereof. Subject
to the terms and conditions of this Agreement, on the Delivery Date (i) the Finance Lessor shall assist in financing the Owner Trustee’s acquisition of each Aircraft by contemporaneously purchasing each Aircraft from the Owner Trustee pursuant
to the Finance Lease for the Purchase Price in an amount equal to the Finance Lessor’s Commitment for each Aircraft as set forth on Schedule I hereto, and (ii) the Owner Participant 
  

 1 

 shall make an investment in the beneficial ownership in each Aircraft by funding the trust established
under the Trust Agreement in an amount equal to its Commitment for each Aircraft as set forth in Schedule I hereto. 
  
 (b) Transfer of Funds. The Finance Lessor’s Commitment and the Owner Participant’s Commitment shall be transferred by the Finance Lessor
and the Owner Participant to the account of the Trust Company, in each case in immediately available funds in Dollars at Wells Fargo Bank Northwest, National Association, ABA: 121000248, for credit to Account No.: 051-09221-15, Attention: Corporate
Trust Services, Reference: 37668/N784AX N785 AX N786AX, not later than 11:00 a.m., New York City time, on the scheduled Delivery Date for the Aircraft. Such amounts shall be held by the Trust Company, not as part of the Trust Estate, until (i)
released by (x) the Finance Lessor against delivery of the Finance Lease and Finance Lease Supplement with respect to each Aircraft and (y) the Owner Participant against delivery of each Aircraft, or (ii) returned to the Finance Lessor and the Owner
Participant, as the case may be, pursuant to Section 7 hereof. 
  
 (c) Failure to Make Commitment Available. If a Participant shall default in its obligation to make its Commitment available to the Owner Trustee pursuant to this Section 2, the other Participant shall have no obligation to make any
portion of its Commitment available or to increase the amount of its Commitment and the obligations of the other Participant shall remain subject to the terms and conditions set forth in this Agreement. 
  
 Section 3. Delivery Date. (a) Notice. The Lessee agrees to give
the Owner Participant, the Finance Lessor, and the Owner Trustee written notice of the scheduled Delivery Date for the Aircraft not later than 3:00 p.m., New York City time, on the third Business Day preceding such scheduled Delivery Date, which
written notice may be transmitted by facsimile with an original written notice delivered promptly thereafter. 
  
 (b) Delivery and Sale of Aircraft. (i) On the scheduled Delivery Date for the Aircraft, and subject to the terms and conditions of this Agreement,
contemporaneously with making of the payment provided in the next sentence in the manner provided therein, (i) the Lessee shall transfer title to and deliver each Aircraft to the Owner Trustee and the Owner Trustee shall purchase and take title to
and accept delivery of each Aircraft and (ii) in accordance with and subject to the terms and conditions of the Finance Lease, the Owner Trustee shall sell, and the Finance Lessor shall purchase, and the Finance Lessor shall lease to the Owner
Trustee, and the Owner Trustee will lease from the Finance Lessor, each Aircraft. The payment to be made by the Owner Trustee shall be made by FedWire transfer of the Lessor’s Cost for such Aircraft to Wachovia Bank, N.A., ABA No. 053100494,
for credit to Lessee’s account (Account No. 8739005381). 
  
 (ii) Acceptance; Risk of Loss. In furtherance of the foregoing, the Owner Trustee and the Finance Lessor agrees that the Lessee’s acceptance of an Aircraft under and in accordance with the provisions of Section 2 of the Lease
shall constitute the Owner Trustee’s acceptance of such Aircraft and the Lessee’s acceptance of such Aircraft under the Lease for all purposes thereof and of the other Operative Agreements. Upon the Owner Trustee’s acceptance of an
Aircraft as aforesaid, (i) risk of loss thereof shall pass to the Lessee under the Lease and (ii) none of the Finance Lessor, the Owner Trustee or the Owner Participant shall, except as 
  

 2 

 otherwise expressly provided in any Operative Agreement, have any responsibility or obligation whatsoever, either express
or implied, with respect to the use, possession, operation, maintenance, airworthiness or condition of such Aircraft. 
  
 (iii) Assignment of Warranties. In connection with the transfer of title of an Aircraft by the Lessee to the Owner Trustee pursuant to this
Agreement, Lessee shall transfer and assign to the Owner Trustee any manufacturer’s and vendor’s representations, warranties and indemnities, pursuant to an Assignment of Warranties in the form of Exhibit B, that have been made in favor of
or assigned to (or otherwise accrued to the benefit of) the Lessee with respect to the Aircraft, including any representations, warranties and indemnities relating to the freight conversion of such Aircraft, provided the same are transferable or
assignable, and, to the extent not transferable or assignable, Lessee shall, at Lessee’s expense, use its best efforts to convey to the Owner Trustee the benefit of such manufacturer’s and vendor’s representations, warranties and
indemnities with respect to such Aircraft. Lessee, at Lessee’s expense, shall notify and obtain the acknowledgment of the Manufacturer, the Engine Manufacturer, and any other relevant manufacturers or vendors of such assignment or take other
necessary steps for validating and perfecting such assignment. 
  
 (iv) Delivery Location. Each Aircraft shall be delivered by Lessee, as seller, to the Owner Trustee, as buyer, on the Delivery Date therefor at such location in the U.S. as is mutually acceptable to the Owner Trustee, the Lessee and
the Participants (the “Delivery Location”), subject to Lessee’s operational needs. The parties will cooperate in ensuring that the Delivery Location for each Aircraft shall be in a jurisdiction in which the imposition upon Lessee
and/or the Owner Trustee of any Sales Tax arising out of the sale of the Aircraft pursuant to this Agreement and the Finance Lease is minimized. 
  
 (v) Sales Tax. Notwithstanding anything to the contrary contained herein or in any other Operative Agreement, the Lessee agrees to pay promptly
when due, assume responsibility for and indemnify and hold harmless the Owner Trustee, and each Participant on an after-tax basis from all taxes, duties and fees, including without limitation, value added, franchise, transfer, sales, gross receipts,
use, business, occupation, excise, personal property, real property, stamp or other tax, and any assessments, penalties, fines, additions to tax or interest thereon, that may be imposed upon the sale or delivery of the Aircraft hereunder and under
the Finance Lease (“Sales Tax”). 
  
 Section 4.
Instructions to the Owner Trustee. The Owner Participant agrees that the satisfaction or waiver of the conditions contained in Section 5 hereof (any such satisfaction or waiver to be communicated to the Owner Trustee by the Owner Participant
or its special counsel) shall constitute, without further act, authorization and direction by the Owner Participant to the Owner Trustee: 
  
 (i) to accept from the Lessee the Bill of Sale and the FAA Bill of Sale for each Aircraft; 
  
 (ii) to execute and deliver the OT Bill of Sale in favor of the Finance Lessor for each Aircraft; 
  

 3 

 (iii) against receipts therefor to direct payment of the Lessor’s Cost as provided in Section 3(b)
hereof; 
  
 (iv) to execute and cause to be filed (a) the FAA
aircraft registration application contemplated by Section 5(d)(ix) hereof, (b) a Lease with one or more Lease Supplements covering the Aircraft and (c) a Finance Lease with one or more Finance Lease Supplements covering the Aircraft; and 

 
 (v) to execute and deliver all such other instruments, documents or
certificates and take all such other actions as are required to be executed or delivered or taken by the Owner Trustee on or prior to each Delivery Date pursuant to any Operative Agreement. 
  
 Section 5. Conditions to the Obligations of the Participants. The
obligations of the Finance Lessor to fund its Commitment, and of the Owner Participant to fund its Commitment and cause the Owner Trustee to purchase the Aircraft, sell to and lease back from, the Finance Lessor the Aircraft pursuant to the Finance
Lease and lease the Aircraft to the Lessee pursuant to the Lease, are subject to the fulfillment, to the satisfaction of the Finance Lessor and the Owner Participant, on or prior to the Delivery Date for the Aircraft, of the following conditions
precedent (except that (i) the obligation of any party shall not be subject to such party’s own performance or compliance and (ii) conditions specified below as being for the benefit of a specified party or patties only, need be fulfilled only
to the satisfaction of, or waived by, such party or parties): 
  
 (a) Notice; Commitments of Other Participants; Delivery of Aircraft. Such Participant shall have received the notice required by Section 3(a) hereof. The other Participant shall have made available the full amount of its Commitment
then required to be made available by it pursuant to Section 2 hereof. All three Aircraft shall be available for delivery on the Delivery Date specified in the above notice; provided that if any Aircraft is not available for delivery on such
Delivery Date for any reason, the Delivery Date for all of the Aircraft shall be postponed in accordance with Section 7 and/or the Lessee may deliver a Substitute Aircraft in lieu of the Aircraft that is not available for delivery. 
  
 (b) Legality. No fact, event or condition shall exist under Applicable
Laws that, in the opinion of such Participant or its special counsel, would make it illegal for such Participant to participate in any of the transactions contemplated by the Operative Agreements. 
  
 (c) No Material Adverse Change. No material adverse change shall have
occurred after March 31, 2001 in the consolidated financial condition of any Lessee Party and its consolidated subsidiaries taken as a whole. 
  
 (d) Authorizations; Execution and Delivery of Documents. The following documents shall have been duly authorized, executed and delivered by the
respective parties thereto, shall be in full force and effect on the Delivery Date without any event or condition having occurred or existing that constitutes, or with the giving of notice or lapse of time or both would constitute, a default
thereunder or breach thereof or would give any party thereto the right to terminate any thereof, shall be in form and substance satisfactory to each Participant and an executed counterpart of each thereof shall have been delivered to the Lessee, the
Owner Trustee, 
  

 4 

 the Owner Participant, and the Finance Lessor and each such party’s respective counsel (except as
provided in the last sentence of this paragraph (d)): 
  
 (i) the Trust Agreement; 
  
 (ii) this
Participation Agreement; 
  
 (iii) the Assignment
Agreement; 
  
 (iv) the Lease; 
  
 (v) the Finance Lease; 
  
 (vi) each FAA Bill of Sale, executed by the Lessee in favor
of the Owner Trustee; 
  
 (vii) each Bill of Sale
executed by the Lessee in favor of the Owner Trustee; 
  
 (viii) each OT Bill of Sale executed by the Owner Trustee in favor of the Finance Lessor; 
  
 (ix) the application to the FAA for the registration of the Aircraft in the name of the Owner Trustee, executed by the Owner Trustee and
accompanied by an affidavit affirming the U.S. citizenship of the Owner Trustee; 
  
 (x) the Guaranty; 
  
 (xi) each Lease Supplement to be delivered on the Delivery Date; 
  
 (xii) each Finance Lease Supplement to be delivered on the Delivery Date; 
  
 (xiii) the Limited Liability Company Agreement of the Owner
Participant; 
  
 (xiv) the Management Agreement;

  
 (xv) each Assignment of Warranties and any
related consents; and 
  
 (xvi) such other
documents as the Owner Trustee and the Participants may reasonably request. 
  
 Notwithstanding the foregoing, (A) the “chattel paper original” counterparts of (1) the Lease and the Lease Supplement referred to in clauses (iv) and (xi) above and (2) the Finance Lease and Finance Lease
Supplement referred to in clauses (v) and (xii) above, shall be delivered to the Finance Lessor, (B) the FAA Bill of Sale referred to in clause (vi) above and the application for registration and affidavit referred to in clause (ix) above shall be
filed for 
  

 5 

 recordation with the FAA, and (C) the Bill of Sale referred to in clause (vii) above and the OT Bill of Sale referred to
in clause (viii) above shall be delivered to the Finance Lessor. 
  
 (e) Financing Statements. Uniform Commercial Code financing statements covering all the security interests created by or pursuant to the Finance Lease and the Assignment Agreement and any deemed security interest of the Owner Trustee
in and to the Aircraft created by the Lease shall have been executed and delivered by the Owner Trustee and the Lessee, as the case may be, and such financing statements or other statements or documents to the same purpose shall have been duly filed
in all places necessary or desirable to perfect such security interests (and other interests) and in all other places that each Participant shall have reasonably requested and there shall have been taken all other action reasonably requested by each
Participant to perfect such security interests (and other interests). 
  
 (f) Consents, Approvals, Etc. All appropriate action required to have been taken prior to the Delivery Date in connection with the transactions contemplated by this Agreement shall have been taken by the FAA and all orders, permits,
waivers, authorizations and approvals required to be in effect on the Delivery Date in connection with the transactions contemplated by this Agreement shall have been issued, and all such orders, permits, waivers, authorizations and approvals shall
be in full force and effect on the Delivery Date. 
  
 (g)
Ownership, Etc. On the Delivery Date the following statements shall be true, and each Participant shall have received evidence satisfactory to it to the effect that: 
  
 (i) the Owner Trustee has good and marketable title (subject to filing and recording with the FAA of each
FAA Bill of Sale referred to in paragraph (d) above) to the Airframes and the Engines, free and clear of Liens other than Permitted Liens described in clauses (a) and (c) of the definition thereof; 
  
 (ii) the Aircraft has been duly certificated by the FAA as
to type and airworthiness and has a current certificate of airworthiness; 
  
 (iii) the Trust Agreement, the Assignment Agreement, each FAA Bill of Sale and each OT Bill of Sale referred to in paragraph (d) above, the Lease, the applicable Lease Supplements delivered pursuant to Section 2 of
the Lease, the Finance Lease and applicable Finance Lease Supplements delivered pursuant to Section 2 of the Finance Lease to be delivered on the Delivery Date have been duly filed for recordation with the FAA pursuant to the Federal Aviation Act;
and 
  
 (iv) application for registration of the
Aircraft in the name of the Owner Trustee has been duly made with the FAA. 
  
 (h) Additional Officer’s Certificates. On the Delivery Date, the statements set forth below shall be true and correct and each Participant and the Owner Trustee shall have received: 
  
 (i) an Officer’s Certificate of each Lessee Party,
dated the Delivery Date, stating that (A) the representations and warranties of such Lessee Party contained in Section 8 hereof and in each of the other Operative Agreements are true and accurate on 
  

 6 

 and as of the Delivery Date as though made on and as of the Delivery Date except to the extent that such
representations and warranties relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date); (B) no event or condition has occurred and is continuing, or would
result from the consummation of any transaction contemplated by the Operative Agreements to which it is a party, that constitutes a Default or would render such Lessee Party unable to meet any of its obligations under the Operative Agreements; and
(C) all covenants and conditions required to be performed or fulfilled by such Lessee Party prior to or on the Delivery Date have been performed and fulfilled; 
  

(ii) an Officer’s Certificate of the Owner Participant, dated the Delivery Date, stating that the representations and warranties
of the Owner Participant contained in Section 9(a) hereof and in each of the other Operative Agreements are true and accurate on and as of the Delivery Date as though made on and as of the Delivery Date except to the extent that such representations
and warranties relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date); and 
  
 (iii) an Officer’s Certificate of each of the Trust Company and the Owner Trustee, dated the Delivery
Date, stating that (A) the representations and warranties of the Trust Company or the Owner Trustee, as the case may be, contained in Section 10 or 12 hereof and in each of the other Operative Agreements are true and accurate on and as of the
Delivery Date as though made on and as of such date except to the extent that such representations and warranties relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such
earlier date); and (B) all covenants and conditions required to be performed or fulfilled by the Trust Company or the Owner Trustee, as the case may be, prior to or on the Delivery Date have been performed and fulfilled. 
  
 (i) Resolutions, Certificates, Etc. Such Participant and the Owner
Trustee shall have received the following items, in each case in form and substance satisfactory to it: 
  
 (i) a copy of resolutions of the respective Boards of Directors (or committees thereof having power with respect to the matters covered by
such resolutions) of each Lessee Party, the Trust Company and the Owner Participant, certified as of the Delivery Date by the Secretary, an Assistant Secretary or an equivalent officer thereof, duly authorizing the Overall Transaction; 

 
 (ii) a certified true and complete copy of each Lessee
Party’s, the Trust Company’s, the Owner Participant’s, charter documents and by-laws and a certificate as to the incumbency and specimen signatures of the officers of such parties executing the Operative Agreements; 
  
 (iii) such other documents and evidence with respect to each
Lessee Party, the Owner Participant and the Trust Company, as such Participant may reasonably request in order to consummate the Overall Transaction, and to evidence the taking of all 
  

 7 

 proceedings in connection therewith and compliance with the conditions herein or therein set forth; and

  
 (iv) a good standing certificate from the
secretary of state (or comparable Governmental Authority) of the respective jurisdiction of organization of the Owner Participant and each of the Lessee Parties. 
  
 (j) Event of Loss. No Event of Loss and no event which, with the passage of time, would constitute an Event of Loss
shall have occurred with respect to the Aircraft unless the Lessee has elected to replace such Aircraft with a Substitute Aircraft in accordance with Section 5(a). 
  
 (k) Appraisal. The Participants shall have received a report with respect to the Aircraft in form and substance
satisfactory to such Participant from an appraiser satisfactory to each Participant. 
  
 (l) Opinion of Counsel for the Lessee. Each Participant and the Owner Trustee shall have received an opinion, dated the Delivery Date and in the form of Exhibit A-1 hereto from Riddell Williams P.S., special
counsel for the Lessee Parties. 
  
 (m) [reserved].

  
 (n) Opinion of Counsel for the Owner Trustee. Each
Participant and the Owner Trustee shall have received an opinion, dated the Delivery Date and in the form of Exhibit A-2 hereto from Ray, Quinney & Nebeker, special counsel for the Owner Trustee. 
  
 (o) [reserved]. 
  
 (p) Opinion of FAA Counsel. Each Participant and the Owner Trustee
shall have received an opinion, dated the Delivery Date and in the form of Exhibit A-3 hereto from Crowe & Dunlevy, P.C., special FAA counsel. 
  
 (q) Opinion of Counsel for the Finance Lessor. In the case of the Finance Lessor, the Finance Lessor shall have received an opinion, dated the
Delivery Date, from Pillsbury Winthrop LLP, special counsel for the Finance Lessor, as to such matters incident to the Overall Transaction as it may reasonably request. 
  
 (r) [reserved]. 
  
 (s) [reserved]. 
  
 (t) Payment of Taxes, Etc. All taxes, fees and other charges payable in connection with the execution and delivery of all documents and instruments
referred to in this Agreement, the purchase of the Aircraft contemplated hereby and by the Finance Lease shall have been paid in full. 
  
 (u) Insurance Report and Certificate. Each Participant and the Owner Trustee shall have received an insurance report and insurance certificate of
an independent insurance 
  

 8 

 broker acceptable to the Participants, in form and substance satisfactory to the Participants and the Owner Trustee, as
to the due compliance with the terms of Section 11 of the Lease relating to insurance with respect to the Aircraft, including confirmation of insurance of the type referred to in Section 11 (a) of the Lease in an amount satisfactory to the
Participants. 
  
 (v) [reserved]. 
  
 (w) Accuracy of Representations and Warranties. The representations
and warranties of each Lessee Party, the Owner Trustee, and each Participant made by such party in this Agreement and in any other Operative Agreement shall be true and correct on the Delivery Date, except for representations and warranties that
relate solely to an earlier date, in which case such representations and warranties shall have been true and correct as of such earlier date. 
  
 (x) No Action or Proceeding. No action or proceeding shall have been instituted, no governmental action shall have been threatened and no order,
judgment or decree shall have been issued by any court or government agency to set aside, restrain, enjoin or prevent the consummation of this Agreement or the Overall Transaction. 
  
 (y) No Event of Default or Default. No Event of Default or Default shall have occurred and be continuing. 

 
 (z) Letter of Credit. The Finance Lessor shall have received the
Letter of Credit as provided in Section 20 of the Lease and Section 20 of the Finance Lease. 
  
 (aa) Transaction Fee and Costs. The Finance Lessor shall have received a nonrefundable up-front transaction fee in the amount of 5200,000 for each Aircraft from the Owner Participant on Delivery Date for such
Aircraft. All of the Transaction Costs for which invoices have been delivered to the Lessee on or prior to such Delivery Date shall have been paid in full or arrangements satisfactory to each of the Participants shall have been made to cause them to
be paid in full on such Delivery Date. 
  
 (bb) Other
Conditions. All opinions, certificates and other instruments to be delivered to each Participant hereunder and all proceedings in connection with the transactions contemplated by this Agreement shall be satisfactory in form and substance to each
Participant. Each Participant shall have received copies of all instruments and other evidence as it may reasonably request, in form and substance satisfactory to it, with respect to such transactions and the taking of all corporate proceedings in
connection therewith. 
  
 Section 6. Conditions Precedent to
Obligations of the Lessee. The obligations of the Lessee to sell the Aircraft to the Owner Trustee pursuant to this Agreement and to lease the Aircraft from the Owner Trustee pursuant to the Lease shall be subject to the performance by each of
the other parties hereto of their respective obligations hereunder and under the other Operative Agreements required to be performed on or prior to the Delivery Date and the fulfillment to the satisfaction of, or waiver by, the Lessee on or prior to
the Delivery Date, of the following additional conditions precedent: 
  
 (a) Illegality. No change shall have occurred after the Business Day immediately prior to the date of execution of this Agreement in Applicable Laws that, in the 
  

 9 

 opinion of the Lessee or its counsel, would make it illegal for the Lessee to participate in the Overall Transaction.

  
 (b) Other Documents. The conditions contained in
paragraphs (d) (other than clause (xvi) thereof), (f), (h) (other than clause (i) thereof), (i) (other than as to any Lessee Party), (j), (n) and (p) (in the case of (n) and (p), such opinions shall be addressed to the Lessee), (w) (other than as to
any Lessee Party) and (x) of Section 5 hereof shall have been satisfied. 
  
 Section 7. Return of Funds. If the delivery, purchase and leasing of all three Aircraft for any reason do not occur on the scheduled Delivery Date, then the Delivery Date shall be postponed and any funds made
available by the Finance Lessor or the Owner Participant as its Commitment pursuant to Section 2(a) hereof and transferred to the Trust Company pursuant to Section 2(b) hereof shall be retained by the Trust Company on behalf of the Finance Lessor
and the Owner Participant, as the case may be, until the earlier of (a) such time as the parties are able to effect the delivery, purchase and leasing of all three Aircraft (or any Substitute Aircraft) in accordance with the terms and conditions of
this Agreement and the other Operative Agreements, at which time such funds shall be disbursed in accordance with Section 3(b)(i) and (b) August 24, 2001, at which time, such funds shall be returned by the Trust Company to the Participant which
transferred such funds to an account designated in writing by such Participant for that purpose. Funds retained by the Trust Company under this Section 7 shall be invested by the Trust Company in overnight Federal Funds with an entity described in
clause (ii) of the definition of Permitted Investments (or such other Permitted Investments with a final maturity mutually agreed among the Lessee and the Participants). The Lessee shall reimburse each Participant for the loss of use of the funds
made available by it as its Commitment pursuant to Section 2(a) hereof by promptly paying interest calculated at the Floating Rate, in each case for the actual number of days from and including the scheduled Delivery Date to but excluding the
earlier of the actual Delivery Date and the date on which the funds are returned to such Participant. In addition, if funds are returned to the Finance Lessor pursuant to this Section 7, Lessee shall also pay to the Finance Lessor the LIBOR Break
Funding Amount, calculated as if the delivery had occurred on the scheduled Delivery Date and the Stipulated Loss Values under the Finance Lease had been prepaid on the date the Finance Lessor’s funds are returned to it. Funds returned after
11:00 a.m., New York City time, on any Business Day shall be deemed to be returned on the next succeeding Business Day. Any investment earnings realized by the Trust Company on account of such Commitments shall be reinvested by the Trust Company
until the funds are disbursed on the actual Delivery Date or returned to the Participants as provided in this Section 7, at which time any such investment earnings shall be paid to the Lessee, but only to the extent that the Lessee has paid the all
of the interest payable by it to the Participants under this Section 7. To the extent that any funds retained under this Section 7 are disbursed in accordance with clause (a) above, the Delivery Date shall be deemed to be the scheduled Delivery Date
for all purposes under the Operative Agreements and any interest paid by the Lessee to the Finance Lessor under this Section 7 shall be deemed to constitute a payment by the Lessee of that portion of the Basic Rent under the Lease attributable to
Variable Rent under the Finance Lease for the period from the scheduled Delivery Date to the date the funds were disbursed in accordance with clause (a) above. 
  

Section 8. Representations and Warranties of the Lessee. The Lessee makes the following representations and warranties to each of the other
parties hereto: 
  

 10 

 (a) Organization. The Lessee is a corporation duly incorporated and validly existing in good
standing under the laws of the State of Delaware and is duly qualified to do business and in good standing in each other jurisdiction in which the failure so to qualify would materially adversely affect its business or financial condition or would
impair its ability to perform its obligations under the Operative Agreements. The Lessee is an “air carrier” within the meaning of the Federal Aviation Act operating under a certificate issued under Chapter 447 thereof and of the type
referred to in Section 1110 and holds an air carrier operating certificate pursuant to Section 49 U.S.C. § 44705. The Lessee has all requisite corporate power and authority to own, hold under lease and operate its properties, to carry on its
business as presently conducted and to enter into and perform its obligations under the Operative Agreements to which it is or is to be a party. 
  
 (b) No Consent Required. Neither the execution and delivery by the Lessee of this Agreement or the other Operative Agreements to which it is or is
to be a party nor the performance by the Lessee of its obligations hereunder or thereunder requires the consent or approval of, the giving of notice to, or the registration with, or the taking of any other action in respect of, any Governmental
Authority, except for (i) the actions contemplated in paragraph (c) below, (ii) the orders, permits, waivers, exemptions, authorizations and approvals of the Governmental Authorities having jurisdiction over the operation of the Aircraft from time
to time, all of which orders, permits, waivers, exemptions, authorizations and approvals, to the extent presently required for such execution, delivery and performance, have been duly obtained and are in full force and effect and (iii) any normal
periodic and other reporting requirements under the applicable rules and regulations of the Governmental Authorities having jurisdiction over the operation of the Aircraft from time to time, to the extent required to be given or obtained only after
the Delivery Date. 
  
 (c) Financing Statements, Etc.
Except for (i) the registration of the Aircraft pursuant to the Federal Aviation Act, (ii) the filing for recording pursuant to the Federal Aviation Act of the Trust Agreement, the Finance Lease, each Finance Lease Supplement to be delivered on the
Delivery Date, the Lease, each Lease Supplement to be delivered on the Delivery Date, the Assignment Agreement and each FAA Bill of Sale and each OT Bill of Sale referred to in Section 5(d) hereof to be delivered on the Delivery Date, (iii) the
filing (which has been duly effected) of financing statements (and continuation statements at periodic intervals) with respect to the security interests created by such documents under the Uniform Commercial Code, (iv) the taking of possession by
the Finance Lessor of the original counterpart of each of the Lease, the Lease Supplements, the Finance Lease and the Finance Lease Supplements and (v) the placing on the Aircraft and the Engines of plates containing the legend referred to in
Section 7(d) of the Lease, no further action, including any filing or recording of any document (including any financing statement in respect thereof under Article 9 of the Uniform Commercial Code of any applicable jurisdiction), is necessary or
advisable in order to establish and perfect the Owner Trustee’s title to the Aircraft and the Finance Lessor’s security interest in the Collateral as against the Lessee and any third parties in any applicable jurisdictions in the United
States. 
  
 (d) No Conflicts, Etc. Neither the execution
and delivery of the Operative Agreements to which the Lessee is or is to be a party, the performance of its obligations thereunder, nor the consummation of the transactions contemplated thereby will conflict with or result in any breach of, or
constitute a default under, or result in the creation or imposition of any 
  

 11 

 Lien (other than Permitted Liens) upon the Aircraft or any Lien (other than Permitted Liens) upon any of its other
property or assets under, any Applicable Laws, the Lessee’s certificate of incorporation or by-laws or any indenture, mortgage, deed of trust or other instrument or agreement to which it is a party or by, which it may be bound or to which any
of its property or assets may be subject. 
  
 (e) Due
Authorization. The execution and delivery of the Operative Agreements to which the Lessee is or is to be a party have been duly authorized by all necessary corporate action of the Lessee and the performance by the Lessee of its obligations under
such Operative Agreements has been duly authorized by all necessary corporate action of the Lessee. Each of such Operative Agreements at the time of delivery thereof will constitute the legal, valid and binding obligation of the Lessee enforceable
against the Lessee in accordance with its terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally. 
  
 (f) No Approvals Required. The execution and delivery by the Lessee of
each Operative Agreement to which the Lessee is or is to be a party and the performance by the Lessee of its obligations under such Operative Agreements do not require any approval or consent of any shareholder, trustee or holder of any indebtedness
or other obligation of the Lessee. The transfers pursuant to the bills of sale described in Section 5(d)(vi), (vii) and (viii) hereof are not voidable at the instance of, and do not constitute transfers that are fraudulent to, the creditors of the
Lessee or Persons claiming through or under the Lessee. 
  
 (g)
No Public Offering. Neither the Lessee nor any Person acting on its behalf has directly or indirectly offered or sold any interest in the Finance Lease or the equity interest in the Aircraft or the Lease, or any securities similar thereto, or
has otherwise approached or negotiated with any Person with respect thereto, so as to bring any of the transactions contemplated hereby within Section 5 of the Securities Act of 1933, as amended. 
  
 (h) No Material Litigation. There are no pending or, to the knowledge
of the Lessee, threatened investigations, suits or proceedings against any Lessee Party or any subsidiaries of any Lessee Party or affecting any Lessee Party or its properties that relate to the Overall Transaction or that, if determined adversely,
individually or in the aggregate might materially adversely affect the consolidated financial condition, business or operations of such Lessee Party and its consolidated subsidiaries, taken as a whole, or such Lessee Party’s ability to perform
its obligations under the Operative Agreements to which it is a party. 
  
 (i) [Reserved]. 
  
 (j) Tax Returns. Each
Lessee Party and its subsidiaries have filed or caused to be filed all Federal, state, local and foreign tax returns that are required to be filed and have paid or caused to be paid all taxes shown to be due or payable on such returns or (except to
the extent being contested in good faith with due diligence by appropriate proceedings and for the payment of which reserves have been provided to the extent required under generally accepted accounting principles) on any assessment received by such
Lessee Party, to the extent that such taxes have become due and payable. 
  

 12 

 (k) ERISA. No Lessee Party has engaged in any transaction in connection with which any Lessee
Party could be subjected to either a civil penalty assessed pursuant to Section 5.02 (i) of ERISA, or a tax imposed by Section 4975 of the Code. Neither the execution and delivery by any Lessee Party of any Operative Agreements to which it is or is
to become a party nor any of the Overall Transaction will involve any prohibited transaction within the meaning of Section 406 of ERISA or Section 4975 of the Code. The representation by the Lessee in the preceding sentence is made in reliance upon
and subject to the accuracy of the representations of the Participants in Sections 9(a)(viii) and 9(b)(ii). 
  
 (l) Financial Statements. The Lessee has furnished to each of the Participants the annual report of Airborne, Inc. (“Airborne”) on Form
10-K for the year ended December 31, 2000 and all quarterly reports on Form 10-Q filed with the SEC after that date. Such reports and statements fairly present the financial condition of Airborne as of the dates thereof and the results of operations
of Airborne for the periods covered thereby. Since March 31, 2001, there has been no material adverse change in the business or financial condition of Airborne or the Lessee. 
  
 (m) No Misstatements or Omissions. Neither the financial statements referred to in Section 8(1) nor any other
documents furnished by the Lessee or any other Lessee Party to the Owner Trustee, or any Participant in connection with the transactions contemplated by this Agreement contain any untrue statement of a material fact or omit any material fact
necessary to make the statements contained therein, as of the date such statements were made, not misleading. 
  
 (n) Defaults. No Default exists and neither the Lessee nor any other Lessee Party is in default (i) in the payment of principal of, or interest on,
any indebtedness for borrowed money, (ii) in the payment of rent under any aircraft lease, (iii) under any agreement with the Finance Lessor or the Owner Participant (or any Affiliate of either thereof) or (iv) under any other agreement that is
binding on it or any of its property, which default would have a material adverse effect upon the operations, properties, prospects or financial condition of such Person or its ability to perform any of its obligations under the Operative
Agreements. 
  
 (o) Sales and Use Tax. On the Delivery
Date, all Sales Tax then due and payable in respect of the Aircraft shall have been paid by Lessee. 
  
 (p) Insurance. On the Delivery Date, all premiums on the insurance required by Section 11 of the Lease, to the extent due and payable, have been
paid. 
  
 (q) Maintenance Reserves. The Lessee is not
required to establish, fund or maintain any deposit or reserves for the purpose of funding the maintenance (whether or not regularly scheduled) or repair of (i) any Boeing 767-200 Series aircraft (or any component or part thereof) leased or
sub-leased by the Lessee or (ii) any jet aircraft (or any component or part thereof) leased or sub-leased by the Lessee upon original delivery by the manufacturer thereof (or within a year thereafter) pursuant to a finance lease (any such deposit or
reserves shall hereinafter be referred to as “Maintenance Reserves”). 
  
 (r) Pari Passu. The obligations of each Lessee Party under the Operative Agreements constitute direct, general and unconditional obligations of it and rank, and will rank, 
  

 13 

 in right of payment at least pan passu with all of its unsecured and unsubordinated indebtedness, whether now or
hereafter outstanding. 
  
 Section 9. Representations and
Warranties of Participants. (a) Owner Participant’s Representations and Warranties. The Owner Participant represents and warrants to each of the other parties hereto that: 
  
 (i) Organization. The Owner Participant is a limited
liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. 
  
 (ii) Enforceability. The Owner Participant has the company power and authority to execute, deliver and perform each of the
Operative Agreements to which it is or is to be a party and each of such Operative Agreements has been duly authorized and at the time of delivery thereof will have been duly executed and delivered by it and will constitute its legal, valid and
binding obligation, enforceable against the Owner Participant in accordance with its terms, except as the enforceability thereof maybe limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally. 
  
 (iii)
Investment Representation. The Owner Participant is acquiring the equity investment in the Aircraft and the Lease for its own account for investment and not with a view to, or for sale in connection with, any distribution. Neither the Owner
Participant nor anyone acting on its behalf has offered any interest in the Aircraft, the Lease, the Finance Lease to anyone other than the Finance Lessor and not more than five other Persons. 
  
 (iv) Lessor Liens. The Aircraft, as of the Delivery
Date, will be free of Lessor Liens attributable to it. 
  
 (v) No Conflicts, Etc. Neither the execution and delivery by the Owner Participant of this Agreement or any other Operative Agreement to which it is or is to be a party, nor the consummation by it of the transactions contemplated
hereby or thereby nor the compliance by it with any of the terms and provisions hereof or thereof will contravene any Applicable Laws (it being understood that no representation or warranty is made with respect to Applicable Laws relating to
aviation or to the nature of the equipment to be owned by the Owner Trustee, other than such Applicable Laws as relate to aircraft lease transactions generally), or any judgment or order applicable to or binding on it, or contravene, result in any
breach of or constitute any default under, its certificate of formation or limited liability company agreement or any agreement or instrument to which it is a party or by which any of its properties may be bound. 
  
 (vi) No Consent Required. Neither the execution and
delivery by it of this Agreement of any other Operative Agreement to which it is or is to be a party, nor the consummation by it of any of the transactions contemplated hereby or thereby, requires the consent or approval of, the giving of notice to,
the registration with, the recording or filing of any document with, or the taking of any other action in respect of, 
  

 14 

 any Governmental Authority other than as contemplated hereby (it being understood that no representation
or warranty is made with respect to Applicable Laws relating to aviation or to the nature of the equipment to be owned by the Owner Trustee, other than such Applicable Laws as relate to aircraft lease transactions generally). 
  
 (vii) No Material Litigation. There are no
proceedings pending or, to its knowledge, threatened, against or affecting the Owner Participant in any court or before any Governmental Authority or arbitration board or tribunal that relate to the Overall Transaction or that, if adversely
determined, individually or in the aggregate would materially and adversely affect the Trust Estate or would question the right, power and authority of the Owner Participant to enter into or perform the Operative Agreements to which it is or is to
be a party. 
  
 (viii) ERISA. No part of
the Owner Participant’s interest in the Trust Estate is being acquired through the investment of the assets of any Plan. 
  
 (b) Finance Lessors’ Representations, Warranties and Covenants. The Finance Lessor represents, warrants and covenants to each of the other
parties hereto that: 
  
 (i) Acquisition of
Interest in Finance Lease. The Finance Lessor is acquiring its interest in the Finance Lease for its own account, for investment, and not with a view to the distribution or resale thereof, provided that the disposition of its property shall at
all times be and remain within its control. Neither the Finance Lessor nor any Person acting on its behalf has offered its interest in the Finance Lease for sale to, or solicited any offer to acquire the same from, any Person. If the Finance Lessor
shall decide to dispose of all or any portion of such interest, it is understood and agreed that such disposition may be made only in accordance with applicable securities laws. By making its investment in accordance with Section 2(b) of this
Agreement, the Finance Lessor will be deemed to have confirmed on the Delivery Date all of the representations, warranties and covenants contained in this paragraph. 
  
 (ii) ERISA. No part of the Commitment contributed by the Finance Lessor for the purchase of the
Aircraft shall have been provided through the investment of the assets of any Plan. 
  
 Section 10. Representations and Warranties of the Trust Company. The Trust Company represents and warrants to each of the other parties hereto that: 
  
 (a) Corporate Organization. The Trust Company is a national banking association duly organized and validly existing
in good standing under the laws of the United States of America and is a “citizen of the United States” within the meaning of 49 U.S.C. § 40102(a)(15). It has all requisite corporate power and authority to execute, deliver and
perform its obligations under the Trust Agreement and (assuming due authorization, execution and delivery of the Trust Agreement by the Owner Participant) has all requisite corporate power and authority as Owner Trustee to execute and deliver the
other Operative Agreements to which it is or is to be a party. 
  

 15 

 (b) Authorization. The Trust Company, either in its individual capacity or (assuming due
authorization, execution and delivery of the Trust Agreement by the Owner Participant) as Owner Trustee, as the case may be, has taken all corporate action necessary to authorize the execution and delivery by it of the Operative Agreements to which
it is or is to be a party, and (assuming due authorization, execution and delivery of the Trust Agreement by the Owner Participant) each such Operative Agreement has been or on the Delivery Date will be executed and delivered by one of its officers
who is duly authorized to execute and deliver such Operative Agreement on its behalf. The Trust Agreement and (assuming that the Trust Agreement is the legal, valid and binding obligation of the Owner Participant) each of the other Operative
Agreements to which the Owner Trustee is a patty have been duly executed and delivered by the Owner Trustee. The Trust Agreement and this Agreement are the legal, valid and binding obligations of the Trust Company, enforceable against the Trust
Company in accordance with their respective terms except as limited by bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally. 
  
 (c) No Conflicts, Etc. Neither the execution and delivery by the Trust Company, either in its individual capacity or
(assuming due authorization, execution and delivery of the Trust Agreement by the Owner Participant) as Owner Trustee, as the case may be, of any of the Operative Agreements to which it is or is to be a party, nor the consummation by it of the
Overall Transaction nor compliance by it with any of the terms or provisions thereof will contravene any Applicable Laws of the United States governing the banking or trust powers of the Trust Company or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound. 
  
 (d) No Consent Required. Neither the execution and delivery by the
Trust Company, either in its individual capacity or (assuming due authorization, execution and delivery of the Trust Agreement by the Owner Participant) as Owner Trustee, as the case may be, of each of the Operative Agreements to which it is or is
to be a party, requires the consent or approval of or the giving of notice to, the registration with, or the taking of any other action in respect of, any Federal Governmental Authority governing its banking or trust powers. 
  
 (e) Chief Place of Business; State of Location. The “chief place
of business”, “chief executive office” and the state designated as the “state of location” (as such terms are used in Article 9 of the Uniform Commercial Code of the State of Utah) of the Owner Trustee, and the place where
the administration of the Trust Estate will occur and where all its interests in, to and under all documents relating to the Trust Estate to which it is a party are kept, is located in Salt Lake City, Utah and the Owner Trustee agrees to give the
Lessee, and the Participants written notice of any relocation of said chief executive office or the place where said records are kept from their present location or any designation of another state as its “state of location” for purposes
of said Article 9. 
  
 (f) Title. On the Delivery Date, the
Owner Trustee will have whatever title to the Aircraft and the remainder of the Trust Estate as was granted or conveyed to it on the Delivery Date, free and clear of any Lessor Liens attributable to it or to the Trust Company. 
  

 16 

 (g) The Trust Company has not taken, and the Trust Company will not take, any action to (i) qualify the
trust created by the Trust Agreement as a “business trust” under the Delaware Business Trust Act (or any similar state law) or (ii) commence a voluntary case under the United States Bankruptcy code (as now or hereafter in effect) with
respect to the trust created by the Trust Agreement or to file a petition or take advantage of any other laws relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts with respect thereto. 
  
 Section 11. [reserved]. 
  
 Section 12. Representations and Warranties of the Owner Trustee. The
Owner Trustee represents and warrants to the other parties hereto as Owner Trustee that: 
  
 (a) Enforceability. The Operative Agreements to which it is a party as Owner Trustee constitute the legal, valid and binding obligations of the Owner Trustee, enforceable against the Owner Trustee in accordance
with their respective terns except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar lawns affecting creditors’ rights generally. 
  
 (b) No Approvals Required. The execution, delivery and performance by
the Owner Trustee of the Operative Agreements to which it is or is to be a party do not require a consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority in respect of or under Applicable Law
on the part of the Owner Trustee. 
  
 (c) Compliance. The
execution and delivery of this Agreement and the other Operative Agreements to which the Owner Trustee is a party and compliance by the Owner Trustee with all of the provisions hereof and thereof do not and will not contravene any Applicable Laws.

  
 Section 13. Lessee Covenants. (a) Further
Assurances, Etc. The Lessee will cause to be promptly and duly taken, executed, acknowledged or delivered all such further acts, conveyances, documents and assurances as the Owner Trustee, the Trust Company or any Participant may from time to
time reasonably request in order more effectively to carry out the intent and purposes of any of the Operative Agreements and the Overall Transaction. 
  
 (b) Lessee to Defend Title. The Lessee covenants to the Owner Trustee that it will, at all times, at its own cost and expense, warrant and defend
the title of the Owner Trustee and the Finance Lessor to the Aircraft against any Liens (other than Permitted Liens), claims and demands of or against the Lessee and all other Persons claiming under or through the Lessee. 
  
 (c) Merger, Consolidation, Etc., of Lessee. The Lessee shall not
consolidate or merge with or into another corporation or liquidate into or sell all or substantially all of its assets to another Person without the prior written consent of the Owner Trustee and the Finance Lessor unless (i) such Person shall be a
corporation (hereinafter the “successor corporation”) and shall be a Certificated Air Carrier, (ii) such successor corporation shall be authorized under all Applicable Laws to perform its obligations under the Operative Agreements, (iii)
such successor corporation shall not have a Consolidated Tangible Net Worth which is less than the Consolidated Tangible Net Worth of the Lessee immediately prior to such consolidation, merger, 
  

 17 

 liquidation or sale, (iv) such successor corporation shall deliver to the Owner Trustee, the Trust Company, and each
Participant an agreement in form and substance reasonably satisfactory to each of the Owner Trustee, the Trust Company, and each Participant, containing an assumption by such successor corporation of the due and punctual performance of each covenant
and condition of the Operative Agreements to be performed or observed by the Lessee, (v) such successor corporation shall deliver to the Owner Trustee, the Trust Company, and each Participant an opinion of counsel reasonably satisfactory in form and
substance to each recipient to the effect that the agreement referred to in clause (iv) has been duly authorized, executed and delivered by such successor corporation and constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and (vi) immediately after giving effect to such
transaction no Default shall have occurred and be continuing. Upon any such consolidation, merger, liquidation or sale in accordance with this paragraph (c), the successor corporation thereby formed shall succeed to, and be substituted for, and may
exercise every right and power of, the Lessee under the Operative Agreements to which it is a party with the same effect as if such successor corporation had been named as the Lessee therein. No such sale of assets of the Lessee shall have the
effect of releasing the Lessee or any successor corporation from its liability under the Operative Agreements to which it is a party. If at the time of any transfer pursuant to this paragraph (c) any of the Collateral shall be subject to the Lien of
the Finance Lease or the Assignment Agreement, the Lessee shall do all things reasonably requested by the Finance Lessor to preserve and protect the security interest of the Finance Lessor in such Collateral. 
  
 (d) Registration. The Lessee, forthwith upon delivery of an Aircraft
under the Lease, shall cause such Aircraft to be duly registered, and at all times thereafter to remain duly registered, in the name of the Owner Trustee, under the Federal Aviation Act, and shall furnish to the Owner Trustee such information as may
be required to enable the Owner Trustee to make application for and maintain such registration. 
  
 (e) Opinion of Counsel. Promptly upon the registration of the Aircraft and the recordation with the FAA of the documents referred to in Section
5(g)(iii) hereof, the Lessee will cause Crowe & Dunlevy, P.C., special FAA counsel, to deliver to each Participant and the Owner Trustee a favorable opinion with respect to such recordation addressed to each of them. 
  
 (f) [reserved]. 
  
 (g) Financial Reports. The Lessee shall cause Airborne to furnish to
each Participant and the Owner Trustee during the Lease Term: 
  
 (i) within 60 days after the end of each of the first three fiscal quarters in each fiscal year of Airborne, unaudited consolidated balance sheets of Airborne and its consolidated subsidiaries as of the end of such
quarter and related consolidated statements of income, and cash flows of Airborne and its consolidated subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, all in reasonable detail
and certified by a financial officer of Airborne that they fairly present the consolidated financial condition of Airborne and its consolidated subsidiaries as of the dates indicated and the results of their operations and cash flow for 

 

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 the periods indicated in conformity with generally accepted accounting principles applied to quarterly
financial statements on a basis consistent with prior quarters (except as otherwise stated therein), subject to normal year-end adjustments; provided that so long as Airborne is subject to the reporting provisions of the Securities Exchange Act of
1934, as amended, delivery to such Persons within such time period of Airborne’s Quarterly Report on Form 10-Q as filed with the SEC shall satisfy the requirements of this paragraph (i); 
  
 (ii) within 120 days after the end of each fiscal year of
Airborne, a copy of the annual report for such year for Airborne or the affiliated group of which the Lessee is a member (on a consolidated basis) and a consolidated balance sheet of Airborne and its consolidated subsidiaries as of the end of such
fiscal year and related statements of income, shareholder’s equity and cash flows of the Airborne and its subsidiaries for such fiscal year, in comparative form with the preceding fiscal year all in reasonable detail and accompanied by a report
thereon of independent certified public accountants of recognized national standing selected by Airborne which shall state that such consolidated financial statements present fairly the consolidated financial position of Airborne and its
subsidiaries as of the dates indicated and the results of their operations and cash flow for the periods indicated in conformity with generally accepted accounting principles on a basis consistent with prior years (except as otherwise stated
therein) and that the examination of such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards; provided, that so long as Airborne is subject to the reporting
provisions of the Securities Exchange Act of 1934, as amended, delivery to such Persons within such time period of Airborne Annual Report on Form 10-K as filed with the SEC shall satisfy the requirements of this paragraph (ii); 
  
 (iii) if not provided pursuant to paragraphs (i) or (ii)
above, promptly after filing with the SEC, copies of any quarterly reports on Form 10-Q, annual reports on Form 10-K and Annual Reports to Shareholders of Airborne which may be so filed; 
  
 (iv) within 120 days after the end of each fiscal year of the Lessee, an Officer’s Certificate of
Airborne relating to the Lessee and its consolidated subsidiaries, to the effect that the signer is familiar with or has reviewed the relevant terms of the Operative Agreements and has made, or caused to be made under his supervision, a review of
the transactions and conditions of the Lessee and its consolidated subsidiaries during the preceding fiscal year and that such review has not disclosed the existence during such period, nor does the signer have knowledge of the existence as of the
date of such certificate, of any condition or event which constituted or constitutes a Lease Default or Lease Event of Default, or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what
action the Lessee has taken or is taking or proposes to take with respect thereto; and 
  
 (v) from time to time, such other financial information relating to the Lessee and non-confidential data or information relating to the
transactions hereby contemplated as any such Person may reasonably request (any such information provided to any such Person to be provided to each such Person). 
  

 19 

 (h) Use of Proceeds. The Lessee shall use the proceeds from the sale of the Aircraft to repay
inter-company advances from Airborne Express, Inc. The Lessee will not use the proceeds from the sale of the Aircraft in any way that would result in a violation of Section 7 of the Securities Exchange Act of 1934, as amended, or any regulation
issued pursuant thereto, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Chapter II. 
  
 (i) Security Deposit. The Lessee shall provide to the Finance Lessor on or prior to the first Delivery Date, and at all times thereafter as
required under the Lease, shall maintain in effect in favor of the Finance Lessor (or, after the release of the Lease from the Lien of the Assignment Agreement, in favor of the Owner Trustee) the Security Deposit required under Section 20 of the
Lease and Section 20 of the Finance Lease. 
  
 (j) Maintenance
Reserves. In the event that the Lessee at any time or from time to time hereafter becomes obligated to establish, fund or maintain Maintenance Reserves in respect of any aircraft (or any component or part thereof) as referred to in Section 8(q)
hereof, the Lessee shall thereupon (x) give notice of such event to the Owner Trustee, the Owner Participant, and the Finance Lessor, and (y) enter into an amendment to the Lease (in form and substance satisfactory to such Persons) providing that
the Lessee shall establish, fund and maintain Maintenance Reserves (or, as the case may be, modify any provisions relating to Maintenance Reserves previously agreed to pursuant to this Section 13(j) in respect of the Aircraft pursuant to terms and
conditions comparable to, and no less favorable than, those relating to any such aircraft. 
  
 Section 14. General Indemnities. (a) General Indemnity. The Lessee does hereby assume liability for, and does hereby agree (whether or not any of the transactions contemplated hereby shall be consummated
and whether or not also indemnified by any manufacturer or subcontractor or any other Person, and without necessity of recourse thereto prior to recourse against the Lessee) to indemnify, protect, defend, save and hold harmless and keep whole each
Indemnified Person from and against any and all liabilities (including but not limited to liabilities arising out of the doctrine of strict or absolute liability with or without fault in tort or otherwise or arising out of violation of Applicable
Law of any kind), obligations, losses, damages, penalties, claims, actions, suits, judgments, costs, expenses and disbursements (including, without limitation, legal fees and expenses and costs of investigation), whether any of the foregoing be
founded or unfounded, of whatsoever kind and nature (provided that this Section 14(a) shall not apply to indemnification for any Taxes other than as provided in clause (iii) below and in the last paragraph of this Section 14(a)) that may be imposed
on, incurred by or asserted against any Indemnified Person, and in any way relating to or arising out of (i) the Aircraft, or any part thereof or the Operative Agreements (including, without limitation, the performance of all obligations of the
Lessee under the Operative Agreements and payments made pursuant thereto or any other transactions contemplated thereby), (ii) any Lease Default, Lease Event of Default, Event of Loss, redemption, refunding, refinancing, prepayment or transfer of
any interest in the Finance Lease made in accordance with the Operative Agreements (including any LIBOR Break Funding Amount payable under the Finance Lease or any other Operative Document in connection therewith), (iii) any amounts payable by the
Owner Trustee under Section 3(h)(ii) of the Finance Lease or (iv) the design, manufacture, testing, financing, construction, purchase, acceptance, non-acceptance, possession, rejection, control, ownership, registration, delivery, nondelivery, use,
operation, leasing, subleasing, storage, modification, 
  

 20 

 replacement, substitution, pooling, interchange, condition, maintenance, repair, overhaul, sale, return, abandonment,
redelivery or other disposition of, or the imposition of any Lien (or incurrence of any liability to refund or pay over any amount as a result of any Lien) on, the Aircraft or any interest therein, including, without limitation, any claim or penalty
arising out of violations of Applicable Laws, or in tort (strict or otherwise), latent or other defects, whether or not discoverable by any Indemnified Person or any other Person, loss of or damage to any property or the environment, death of or
injury to any person, and any claim for patent, trademark or copyright infringement (collectively, “Expenses”): provided, however, that the foregoing indemnity shall not extend to any Expense of any Indemnified Person to the extent
resulting from or arising out of one or more of the following: 
  
 (A) the incorrectness of any representation or warranty made by such Indemnified Person in the Operative Agreements; 
  
 (B) the failure by such Indemnified Person to perform or observe any material agreement, covenant or condition in any of the Operative
Agreements (unless resulting solely from a failure by any Lessee Party to perform its obligations under the Operative Agreements); 
  
 (C) the willful misconduct or gross negligence of such Indemnified Person, other than willful misconduct or gross negligence imputed to
such Indemnified Person solely by reason of its interest in any Airframe, any Engine, the Trust Estate, the Collateral or the Operative Agreements and other than willful misconduct or gross negligence that shall have been on the part of the Lessee
in acting on behalf of such Indemnified Person; 
  
 (D) if such Indemnified Person shall be the Owner Trustee, a disposition (voluntary or involuntary) by the Owner Trustee of all or any part of its interest in any Airframe or any Engine or the Trust Estate (other than as expressly
contemplated by the Lease or the Finance Lease, this Participation Agreement or the other Operative Agreements, including any such disposition arising from the exercise of remedies, but excluding any such disposition arising from the exercise of
remedies under the Finance Lease solely as a result of an Event of Default not attributable to any Lease Event of Default) or, if such Indemnified Person shall be the Owner Participant, a disposition (voluntary or involuntary) by the Owner
Participant of all or part of its interest in the Trust Estate (other than as expressly contemplated by Section 18 hereof), or, if such Indemnified Person shall be the Finance Lessor, any such disposition by the Finance Lessor of all or any part of
its interest in any Airframe or any Engine, the Trust Estate, the Collateral or the Operative Agreements (other than as expressly contemplated by the Lease or the Finance Lease, this Participation Agreement or the other Operative Agreements
including any such disposition arising from the exercise of remedies, but excluding any such disposition arising from the exercise of remedies under the Finance Lease solely as a result of an Event of Default not attributable to any Lease Event of
Default). 
  
 (E) acts or events that occur with
respect to any Airframe, any Engine or any Part after the earliest of: (I) the return of possession of such Airframe, Engine or 
  

 21 

 Part to the Lessor in accordance with the provisions of the Lease (including, without limitation, upon
the commencement of any period of storage pursuant to Section 5(d) of the Lease), except if a Lease Event of Default is continuing, (II) the termination of the Lease Term as provided in Section 10(a) of the Lease and (III) the expiration of the
Lease Term and the satisfaction by the Lessee of all of its obligations under the Operative Agreements; provided, however, that nothing in this clause (E) shall be deemed to exclude or limit any claim that any Indemnified Person may
have under Applicable Laws, by reason of a Lease Event of Default or for damages from the Lessee for breach of the Lessee’s covenants contained in the Operative Agreements; 
  
 (F) if such Indemnified Person shall be the Finance Lessor, any failure on the part of the Finance Lessor to
distribute funds in accordance with the provisions of Appendix AF of the Finance Lease, or, if such Indemnified Person shall be the Owner Participant, any failure by the Owner Trustee or the Trust Company to distribute funds in accordance with the
Trust Agreement; 
  
 (G) the Finance
Lessor’s incurring any Expense (other than applicable LIBOR Break Funding Amount) by reason of any loss of anticipated cash-flow or earnings on any its interest in the Finance Lease resulting from any redemption or prepayment of such interest
permitted in the Operative Agreements or by reason of translation of Dollars into any other currency or any other currency into Dollars; or 
  
 (H) the settlement of any claim, action, suit or proceeding, criminal or civil, effected without the prior written consent of the Lessee
(except that such consent shall not be required in the circumstances described in clauses (x) and (y) of the next succeeding paragraph). 
  
 The indemnities set forth in this Section 14(a) shall not constitute a guaranty, representation or warranty to any Indemnified Person of or as to the
value or useful life of the Aircraft or a guaranty, representation or warranty that any obligation incurred by the Owner Trustee to finance Lessor’s Cost of the Aircraft will be paid. Upon payment in full of any indemnity pursuant to this
Section 14(a), the Lessee shall, to the extent of such payment and so long as no Specified Default and no Lease Event of Default shall have occurred and be continuing, be subrogated to any rights of the Indemnified Person in respect of the matter
against which such indemnity was given (other than any rights under Section 8.01 of the Trust Agreement or Section 9 of the Finance Lease and other than claims under insurance policies separately maintained by such Indemnified Person). 

 
 The Lessee (and, at the Lessee’s option, its insurers) shall
investigate and defend (including negotiation of any compromise or settlement advisable in the Lessee’s judgment and not adverse to the interests of any Indemnified Person) any matter for which indemnification is sought under this Section 14(a)
and shall employ for such purpose the counsel of its choosing (which counsel shall, however, be reasonably acceptable to the Indemnified Person) and each Indemnified Person shall, at the Lessee’s expense, cooperate fully with the Lessee (or
such insurers) with respect thereto; provided, however, that the Lessee (and, unless required by a policy which insures the indemnified matter, such insurers) shall not be entitled to defend any such matter if (x) a Specified Default
or a Lease Event of Default has occurred and is continuing 
  

 22 

 or (y) there is, in the reasonable judgment of the Indemnified Person, an actual risk of a finding of criminal liability
or a material danger of the sale, forfeiture, loss of, or the creation of a Lien on or with respect to, any Aircraft or any Engine or the Trust Estate or (z) such matter concerns claims indemnified under this Section 14(a) and claims not so
indemnified and the Lessee has been unable to obtain a severance of such unindemnified claims. In any instance in which the Lessee shall be controlling the defense of any action, the Indemnified Person shall have the right to employ separate counsel
and to participate therein, provided that the fees and expenses of such counsel shall be paid by the Indemnified Person, unless the Lessee has specifically authorized such counsel or the named parties to such action (including impleaded parties)
include both, on the one hand, the Owner Participant, the Owner Trustee, or the Finance Lessor and, on the other hand, the Lessee, and representation of both sets of parties, in the reasonable opinion of the Indemnified Person, would be
inappropriate due to actual or potential conflicting interests between them, in which case the Lessee shall be responsible for the fees and expenses of such counsel. 
  
 The Lessee will pay interest at the Overdue Rate to the relevant Indemnified Person for any indemnities not paid when due.
The rights of the Owner Participant under this Section 14(a) shall not be affected by any insurance maintained by or for the benefit of the Owner Participant and which the Owner Participant, or any of its Affiliates obtained for their own account.

  
 The Lessee’s indemnity obligation to an Indemnified
Person under this Section 14(a) shall include any amount necessary to hold such Indemnified Person harmless, after taking into account any tax benefits realized by such Indemnified Person, from the net amount of all Taxes actually required to be
paid by such Indemnified Person by reason of the receipt or accrual of such indemnity (without regard to any exceptions applicable in Section 14(b) hereof) (the foregoing being referred to as paying on an “After-Tax Basis”); provided,
however, that such Indemnified Person shall provide such certifications, information and documentation as shall be reasonably requested by the Lessee to minimize any payment pursuant to this paragraph and; provided, further, that it is not the
intention of the parties that an Indemnified Person be placed in a better economic position than such Indemnified Person would have been in had the events giving rise to the receipt or accrual of such indemnity not occurred. 
  
 (b) General Tax Indemnity. Except as provided in Section 14(c) hereof,
the Lessee agrees to indemnify, defend and hold harmless on an After-Tax Basis each Indemnified Person against any and all Taxes, imposed against or payable by any Indemnified Person, or imposed on or against or with respect to the purchase price
for any Aircraft, Rent or any other payment made pursuant to the Operative Agreements, all or any part of, or interest in, any Aircraft, any Airframe, any Engine or any Part, any Indemnified Person, the Lessee or any Affiliate thereof, the Trust
Estate or the Collateral or any other interest arising under any Operative Agreement (or any interest in any of the foregoing) by any Federal, state or local government, political subdivision, or taxing authority in the United States, by any
government or taxing authority of or in a foreign country or of or in a territory or possession of the United States of America, or by any international authority, upon or with respect to or in connection with, based upon or measured by, in whole or
in part: 
  
 (i) any Aircraft, any Airframe, any
Engine or any Part or any interest in any of the foregoing; 
  

 23 

 (ii) the manufacture, purchase, mortgaging, financing, refinancing, ownership, delivery,
redelivery, transport, location, leasing, subleasing, possession, use, operation, condition, maintenance, repair, return, abandonment, preparation, storage, transfer of title, sale, acceptance, importation, exportation, rejection or other
disposition of or action or event with respect to any Aircraft, any Airframe, any Engine or any Part or any interest in any of the foregoing; 
  
 (iii) the rentals, receipts, income or earnings arising from the purchase, financing, ownership, delivery, redelivery, leasing,
subleasing, possession, use, operation, return, storage, transfer of title, sale or other disposition of any Aircraft, any Airframe, any Engine or any Part or any interest in any of the foregoing; 
  
 (iv) the Operative Agreements or amendments or supplements
thereto, their execution or the transactions contemplated thereby or any proceeds or payments under any thereof; or 
  
 (v) otherwise with respect to or in connection with the transactions contemplated or effected by the Operative Agreements. 
  
 (c) Exclusions. The indemnity provided for in Section 14(b) above
shall not apply to any of the following: 
  
 (i)
in the case of an Indemnified Person, Taxes (other than sales, use, value-added, excise, property or rental Taxes or Taxes in the nature thereof) on, based on, or measured by or with respect to the gross or net income, gross or net receipts, minimum
or alternative minimum taxable income (collectively, “Income Taxes”) of such Indemnified Person imposed by the United States of America or any state or local government or other domestic taxing authority within the United States of America
(each, a “U.S. Taxing Authority”); provided that there shall not be excluded under this paragraph (i): (A) any Income Taxes imposed by any state or local taxing authority in the United States of America to the extent such Taxes would not
have been imposed but for the operation, registration or presence of any Aircraft, any Airframe, any Engine or any Part in, the conduct of any activities by the Lessee or any of its Affiliates (or the situs of organization of any such Person) in, or
the Lessee’s making payments under the Operative Agreements from, the jurisdiction imposing such Taxes and (B) any Income Taxes imposed by withholding (unless, in the case of this clause (B), such Income Taxes would not have been imposed but
for a transfer by the Owner Participant of its interest in any Aircraft to a Person that is not a United States person within the meaning of Section 7701(a)(30) of the Code and are imposed under Applicable Laws in effect on the date of such
transfer); 
  
 (ii) Taxes imposed on or against
or payable by a transferee of an Indemnified Person to the extent of the excess of such Taxes (under Applicable Law as in effect on the date of transfer) over the amount of such Taxes which would have been imposed and indemnified hereunder had there
not been a transfer by the original Indemnified Person from which such transferee derives its interest of any interest in any Aircraft, any Airframe, any Engine or any Part, the Finance Lease, the Trust Estate, any 
  

 24 

 Indemnified Person or the Operative Agreements, provided that this exclusion (ii) shall not apply with
respect to any transfer occurring after the occurrence and during the continuation of a Specified Default or a Lease Event of Default; 
  
 (iii) Taxes imposed with respect to any period commencing after the earliest of (x) the expiration of, or earlier termination of, the Term
or (y) the earlier discharge in full of the Lessees obligation to pay Stipulated Loss Value and all amounts due under the Operative Agreements, or (z) in the case of property taxes attributable to any Aircraft, return of possession of such Aircraft
to the Lessee in accordance with the Lease; except that Taxes incurred in connection with the exercise of any remedies pursuant to the Lease or the exercise of any remedies under the Finance Lease following the occurrence of a Specified Default or a
Lease Event of Default shall not be excluded from the indemnity provided for in Section 14(b) hereof by this exclusion (iii) and that Taxes related to events occurring or matters arising prior to or simultaneously with the earliest of the times set
forth in clauses (x)-(z) shall not be excluded from the indemnity provided for in Section 14(b) hereof by this exclusion (iii); 
  
 (iv) Taxes imposed on or against an Indemnified Person that would not have been imposed but for (x) the gross negligence or willful
misconduct of such Indemnified Person, (y) the inaccuracy or breach of a representation, warranty or covenant of such Indemnified Person in any Operative Agreement, but only if and to the extent such inaccuracy or breach is not due to an act or
omission of, or the inaccuracy or breach of any representation by the Lessee or any other sublessee or user of any Aircraft, any Airframe, any Engine or any Part; 
  
 (v) Taxes imposed on or against an Indemnified Person that result from (x) a voluntary transfer or other
voluntary disposition by such Indemnified Person of all or any portion of an interest in any Aircraft, any Airframe, any Engine or any Part, the Trust Estate, the Finance Lease or the Operative Agreements (other than (I) transfers occurring while a
Lease Event of Default or Specified Default shall have occurred and be continuing, (II) transfers resulting from any modification, alteration, substitution, replacement or improvement with respect to any Aircraft, any Airframe, any Engine or any
Part, (III) any transfers that occur or are deemed to occur as a result of the exercise of any right or the performance of any obligation by the Lessee under the Operative Agreements, and (IV) any transfers occurring on or about the Delivery Date in
connection with the closing of the transactions contemplated by the Operative Agreements (including, without limitation, the transfer effected by the purchase and lease of the Aircraft pursuant to this Participation Agreement, the Finance Lease and
the Lease) (each an “Excluded Transfer”)) or (y) an involuntary transfer (other than any Excluded Transfer) by such Indemnified Person of all or any part of an interest in any Aircraft, the Trust Estate, the Finance Lease or the Operative
Agreements in connection with any bankruptcy or other proceeding for the relief of debtors in which such Indemnified Person or any of its Affiliates is the debtor or any foreclosure by a creditor of such Indemnified Person or any of its Affiliates
that is unrelated to the transactions contemplated by the Operative Agreements; 
  
 (vi) [reserved]; 
  

 25 

 (vii) Taxes imposed on an Indemnified Person by reason of the failure of such Indemnified
Person or any of its Affiliates to take such action as is required of it by Section 14(f), (h) or (i) unless such failure is due to the failure of the Lessee to provide such information or take such action in respect of such Taxes as is required of
it under any Operative Agreement and in the case of any failure to take any action required by Section 14(f), only if such failure precludes the contest of such Taxes; 
  
 (viii) in the case of an Indemnified Person, Income Taxes imposed on such Indemnified Person by any taxing
authority of or in a country other than the United States; provided that there shall not be excluded under this exclusion (viii) any such Income Taxes which are imposed as a result of (u) any payments under the Operative Agreements that are
made or deemed made from the jurisdiction imposing the Tax, (v) the execution or delivery of the Operative Agreements in such jurisdiction, (w) the operation or use by any Person of any Aircraft, any Airframe, any Engine, any Part or the situs of
organization of the Lessee, any holder of an interest in the Finance Lease or any of their respective agents or Affiliates (or any such Person conducting activities) in such jurisdiction, (x) the location or presence of any Aircraft, any Airframe,
any Engine or any Part in such jurisdiction, (y) the activities of the Lessee or any other Person acquiring use of any Aircraft, any Airframe, any Engine or any Part through the Lessee (or their agents or Affiliates) in such jurisdiction and/or (z)
any combination of the foregoing; 
  
 (ix) any
Taxes, while such Taxes are being contested in accordance with the contest provisions of Section 14(f) hereof; provided, however, that the foregoing shall not limit the Lessee’s obligations under Section 14(f) (including the
Lessee’s obligation to advance to such Indemnified Person amounts with respect to Taxes that are being contested in accordance with Section 14(f) or any expenses incurred by such Indemnified Person in connection with such contest); 

 
 (x) any Finance Lease Withholding Taxes (it being
acknowledged and agreed that any liability of Lessee for Finance Lease Withholding Taxes will be governed solely by Section 14(o) hereof): or 
  
 (xi) Taxes which have been included in Lessor’s Cost; 
  
 provided, that none of the foregoing exclusions i-xi shall be interpreted to exclude any sales or use tax payable in respect of Rent
or the sale of the Aircraft by the Lessee to the Owner Trustee, or by the Owner Trustee to the Finance Lessor, on the Delivery Date, or the sale of the Aircraft by the Owner Trustee to the Lessee pursuant to Section 15. 
  
 (d) Calculation of Payments. Any payment which the Lessee shall be
required to make to or for the account of any Indemnified Person with respect to any Tax (including any amounts payable under Section 14(o)) or Finance Lease Withholding Tax which is subject to indemnification under this Section 14 shall be paid on
an After-Tax basis. If an Indemnified Person or any Affiliate of such Indemnified Person who files any tax return on a combined, consolidated, unitary or similar basis with such Indemnified Person shall actually realize any saving of any Tax (other
than any such saving attributable to the utilization of a foreign tax credit for United States federal income tax purposes) not indemnified by the Lessee pursuant to the Operative Agreements by reason of any amount with respect to which the Lessee

  

 26 

 has indemnified such Indemnified Person pursuant to Section 14(b) or Section 14(n) or Section 14(o) or
Section 14(p), and such Tax saving was not taken into account in determining the amount payable by the Lessee on account of such indemnification, such Indemnified Person shall pay to the Lessee, so long as no Specified Default or Lease Event of
Default shall have occurred and be continuing, within 30 days after such Indemnified Person shall have actually realized such Tax saving, the amount of such saving, together with the amount of any Tax savings resulting from any payment pursuant to
this sentence reduced by any withholding Taxes imposed on such payment; provided that the Lessee shall not be entitled to receive an amount in excess of all amounts previously paid by the Lessee pursuant to Section 14(b) or Section 14(n) or
Section 14(o) or Section 14(p) to such Indemnified Person or to the relevant taxing authority on behalf of such Indemnified Person (less the aggregate amount of all prior payments by such Indemnified Person to the Lessee under this Section 14(d)),
and provided, further, that any amount otherwise due to the Lessee pursuant to this sentence shall be withheld to the extent of any payment or indemnity then due from the Lessee to or on behalf of such Indemnified Person pursuant to
the Operative Agreements and not made (and any amount so withheld shall not be payable before such time and to such extent as the Lessee shall have made such payments or indemnities). If it is later determined that the Indemnified Person was not
entitled to such tax savings, the portion of such tax savings that is repaid, recaptured or disallowed will be treated as Taxes for which the Lessee must indemnify the Indemnified Person pursuant to the provisions of Section 14(b) hereof but without
regard to the provisions of Section 14(c) with respect to that type of tax. 
  
 (e) Payment. The Lessee shall pay any Tax for which it is liable pursuant to this Section 14 (other than Section 14(o) hereof) directly to the appropriate taxing authority or upon demand of an Indemnified
Person to such Indemnified Person in immediately available funds, within 30 days of a written demand, but in no event prior to the date such Tax is due (including all extensions), or, in the case of Taxes which are being contested, the time provided
for in section 14(f) hereof. Any such demand shall specify in reasonable detail the calculation of the payment and the facts upon which the right to payment is based. Each Indemnified Person shall promptly forward to the Lessee any notice, bill or
advice received by it from the relevant taxing authority concerning any Tax or Withholding Tax which the Lessee may be required to indemnify against hereunder. The Lessee upon the reasonable written request of an Indemnified Person shall furnish
such Indemnified Person with the original or a certified copy of a receipt (if any is available to the Lessee) for the Lessee’s payment of any Tax that is subject to indemnification pursuant to this Section 14, or such other evidence of payment
of such Tax as is acceptable to such Indemnified Person (and available to the Lessee), similarly, an Indemnified Person upon reasonable written request of the Lessee shall furnish the Lessee with the original or a certified copy of a receipt (if any
is available to such Indemnified Person) for such Indemnified Person’s payment of any Tax that is subject to indemnification pursuant to this Section 14, or such other evidence of payment or such Tax as is acceptable to the Lessee (and
available to such Indemnified Person). 
  
 (f) Contest. If
a written claim is made against an Indemnified Person for any Taxes (it being understood and agreed that “Taxes” includes Finance Lease Withholding Taxes for all purposes of this Section 14) with respect to which the Lessee is liable for
payment or indemnity hereunder, such Indemnified Person shall give the Lessee notice in writing of such claim within 30 days after its receipt, but the failure to give such notice shall not diminish the Lessee’s obligation hereunder except to
the extent such failure precludes the Lessee from 
  

 27 

 contesting such claim. The Indemnified Person shall in good faith, and at the Lessee’s expense, if timely requested
in writing by the Lessee within 30 days of receipt of notice from such Indemnified Person (or such earlier time as may be required by law or regulation for the Indemnified Person to commence such contest), contest in the name of the Indemnified
Person, or provided no unrelated issues are or might be involved and if permissible as a matter of law, at the request of the Lessee, permit the Lessee to contest in the name of the Lessee or the Indemnified Person (unless the Indemnified Person in
good faith shall determine that such contest by the Lessee could have an adverse impact on the business or operations of such Indemnified Person or any Affiliate thereof, in which case the Indemnified Person may retain or reassert control of the
contest) (any contest being contested by the Lessee in the name of the Lessee or by the Lessee in the name of the Indemnified Person being referred to herein as a “Lessee-Controlled Contest”) the validity, applicability or amount of such
Taxes by: 
  
 (i) resisting payment thereof if
practical; 
  
 (ii) not paying the same except
under protest if protest is necessary and proper; 
  
 (iii) if the payment shall be made, using reasonable efforts to obtain a refund thereof in appropriate administrative and judicial proceedings; or 
  
 (iv) taking such other action as is reasonably requested by the Lessee from time to time. 
  
 Notwithstanding the foregoing provisions of this Section 14(f), such
Indemnified Person shall not be required to take any administrative or judicial action and the Lessee shall not be able to contest such unless (A) the Lessee shall have agreed to pay, and shall pay, such Indemnified Person on demand and on an
After-Tax Basis all reasonable out-of-pocket costs, losses and expenses which such Indemnified Person may incur in connection with contesting such Taxes, including, without limitation, all reasonable legal, accounting and investigatory fees and
disbursements, (B) the amount of the potential indemnity (together with the amount of all similar or logically related claims that have been or could be raised in any audit involving such Indemnified Person for which the Lessee may be liable to pay
an indemnity under this Section 14) exceeds $30,000 in connection with the transactions contemplated by the Operative Agreements, (C) if a Specified Default or Lease Event of Default shall have occurred and be continuing, the Lessee shall have
provided security for its obligations hereunder reasonably satisfactory to such Indemnified Person, (D) the action to be taken will not result in any material danger of sale, forfeiture or loss of any Aircraft, any Airframe, any Engine or any Part
or any interest therein, and (E) the Lessee shall, at its option, either (x) pay or reimburse the Indemnified Person for such Taxes (plus any additional amounts calculated in accordance with Section 14(d) hereof) or (y) provide to the Indemnified
Person an interest-free advance in an amount equal to the Tax which the Indemnified Person is required to pay (and shall indemnify such Indemnified Person, in a manner in form and substance satisfactory to such Indemnified Person, against any
adverse tax consequences arising from such advance), (F) in the case of a Lessee-Controlled Contest, the Lessee shall have delivered to the Indemnified Person a written acknowledgment of its liability under this Section 14 for such Taxes to the
extent such contest is not successful (provided, however, that the Lessee will not be bound by its acknowledgment of 
  

 28 

 liability if the contest is resolved with a written decision of the adjudicator on a basis that indicates that the Lessee
has no liability under this Section 14 with respect to such Tax) and (G) in the case of any contest that is not being contested in the name of the Lessee, the Lessee has provided to such Indemnified Person an opinion of independent tax counsel
selected by such Indemnified Person, as the case may be, and reasonably satisfactory to the Lessee that there is a Reasonable Basis in law that the contest will be successful (and an opinion reaffirming such opinion in the case of an appeal of any
adverse judicial determination). In no event shall an appeal to the United States Supreme Court be required. The parties further agree that an Indemnified Person may at any time decline to take further action with respect to the contest of any claim
for a Tax, provided, however, that if the Lessee has properly requested such contest pursuant to this Section 14(f) and performed all of its obligations hereunder, such Indemnified Person shall waive its rights to any indemnity payment
by the Lessee which would otherwise be payable by the Lessee pursuant to this Section 14 in respect of such claim. 
  
 Notwithstanding anything to the contrary contained in this Section 14(f), an Indemnified Person shall not be required to contest (and the Lessee shall
have no contest rights hereunder in respect of) any proposed claim for Taxes if the subject matter thereof shall be of a continuing nature and shall have been previously decided by a court of competent jurisdiction pursuant to the contest provisions
of this Section 14(f), unless there shall have been a change in law after the date with respect to which such previous contest shall have been decided, and the Indemnified Person shall have received, at the Lessee’s expense, an opinion of
independent tax counsel selected by such Indemnified Person and reasonably acceptable to the Lessee that as a result of the change in law, there is a substantial likelihood (although not necessarily more likely than not) that the Indemnified Person
will prevail in such contest. 
  
 If an Indemnified Person shall
fail to perform its obligations under this Section 14(f) in respect of a claim for Taxes, such failure shall not discharge, diminish or relieve the Lessee of any liability for indemnification that it may have to such Indemnified Person hereunder,
unless the contest of such claim is precluded as a result of such failure. 
  
 (g) Refund. Upon receipt by an Indemnified Person of a refund of all or part of any Taxes which the Lessee shall have paid an indemnity to such Indemnified Person or for which the Lessee shall have advanced
funds to such Indemnified Person, such Indemnified Person shall, so long as no Specified Default or Lease Event of Default shall have occurred and be continuing, pay or repay to the Lessee an amount which, after the adjustment of the amount of any
further net tax savings realized by such Indemnified Person as a result of the payment under this paragraph, and the adjustment of any net tax detriment realized by such Indemnified Person as a result of the receipt or accrual of such refund and any
interest received or accrued by such Indemnified Person on such refund, is equal to the amount of such refund and any interest received by such Indemnified Person that is fairly attributable to such refund, provided, however, that such
amount shall be reduced by the amount of any payment or indemnity then due from the Lessee to or on behalf of such Indemnified Person pursuant to the Operative Agreements and not made (and any amount so withheld shall not be payable before such time
and to such extent as the Lessee shall have made such payments or indemnities). If it is later determined that the Indemnified Person was not entitled to such refund, the portion of such refund that is repaid, recaptured or disallowed will be
treated as Taxes for which the Lessee must indemnify the 
  
  

 29 

 Indemnified Person pursuant to this Section 14 pursuant to the provisions of Section 14(b) hereof but without regard to
the provisions of Section 14(c). 
  
 (h) Reports. The
Lessee shall provide such information as may be available to it and reasonably requested in writing by an Indemnified Person or required to enable an Indemnified Person to fulfill its tax filing requirements or to contest Taxes with respect to the
transactions contemplated hereby, similarly, an Indemnified Person shall provide such information as may be available to it and reasonably requested in writing by the Lessee or required to enable the Lessee to fulfill its tax filing requirements or
to contest Taxes with respect to the transactions contemplated hereby (except that such Indemnified Person shall not be required to provide its tax returns or any other confidential information). In the event that any return, statement or report is
required to be made or filed with respect to any Tax on or indemnified against by the Lessee under this Section 14 or imposed on or with respect to an Indemnified Person in connection with the Overall Transaction, the Lessee shall notify the Owner
Participant and such Indemnified Person (if other than the Owner Participant) of such requirement and (i) to the extent permitted by law (unless otherwise requested by the Indemnified Person) or required by law, make and file in its own name such
return, statement or report in such manner as will show the ownership of the Aircraft in the name of the Lessor and furnish the Owner Participant with a copy of such return, statement or report (ii) where such return, statement or report is required
to be in the name of or filed by such Indemnified Person or the Indemnified Person otherwise requests that such return, statement or report be filed in its name, prepare and furnish such return, statement or report for filing by such Indemnified
Person, in such manner as shall be satisfactory to such Indemnified Person and send the same to the Indemnified Person for filing no later than thirty (30) days prior to the due date (it being understood and agreed that the sole consequence of the
Lessee’s failure to send such return, statement or report 30 days prior to the due date shall be that the Lessee shall indemnify the relevant Indemnified Person and will hold such Person harmless against, on an After-Tax Basis, any and all
Taxes in respect of which such return, statement or report relies together with interest and penalties imposed as a result of such Indemnified Person’s failure to timely file such report and without regard to the provisions of Section 14(c)
hereof) or (iii) where such return, statement or report is required to reflect items in addition to Taxes imposed on or indemnified against under this Section 14 as determined by such Indemnified Person, provide such Indemnified Person with
information within a reasonable time, sufficient to permit such return, statement or report to be properly made and timely filed with respect thereto. If an Indemnified Person fails to file a return that it is legally entitled to file after it has
been properly prepared by the Lessee in accordance with this Section 14(h) and received by such Indemnified Person at least 30 days prior to the due date of such return, the Lessee or shall not be liable for Taxes imposed as a result of the failure
to file such return unless such Indemnified Person has determined in good faith that filing such return could have an adverse impact on the business or operations of such Indemnified Person or any Affiliate thereof. 
  
 (i) Forms, Etc. Each Indemnified Person agrees to furnish to the
Lessee from time to time, at the Lessee’s request and expense, such duly executed and properly completed forms as it may be legally entitled to furnish as may be necessary or appropriate in order to claim any reduction of or exemption from any
withholding or other Tax imposed by any taxing authority in respect of any payments otherwise required to be made by the Lessee pursuant to the Operative Agreements, which reduction or exemption maybe available to such Indemnified 
  

 30 

 Person, unless such Indemnified Person has determined in good faith that furnishing such form could have an adverse
impact on the business or operations of, or would result in an adverse consequence to such Indemnified Person or any Affiliate thereof. 
  
 (j) Records. The Lessee shall make available for inspection and copying by an Indemnified Person (at the Indemnified Person’s expense) such
records that are regularly maintained by the Lessee in the ordinary course of the Lessee’s business as may be reasonably necessary to enable such Indemnified Person to fulfill its tax return filing obligations or to contest Taxes, but subject
to reasonable confidentiality requirements of the Lessee. 
  
 (k)
Non-Parties. If an Indemnified Person is not a party to this Participation Agreement, the Lessee may require the Indemnified Person to agree in writing, in a form reasonably acceptable to the Lessee, to the terms of this Section 14 prior to
making any payment to such Indemnified Person under this Section 14. 
  
 (l) Affiliated Group. For purposes of this Section 14, the term “Owner Participant” shall be deemed to include every member of an affiliated group of which the Owner Participant is or becomes a member if consolidated,
unitary or combined reports are or shall be filed for such affiliated group for Federal, State or local tax purposes. 
  
 (m) Verification. The results of all computations required under this Section 14 with respect to an indemnity provided for in Section 14(b),
together with a statement describing in reasonable detail the manner in which such computations were made, shall be delivered to the Lessee in writing. If the Lessee so requests within 30 days after receipt of such computations, any determination
shall be reviewed by a nationally recognized independent United States accounting firm mutually acceptable to the relevant Indemnified Person and the Lessee who shall be asked to verify, after consulting with the Lessee and the relevant Indemnified
Person, whether the relevant Indemnified Person’s computations are correct, and to report its conclusions to both the Lessee and the relevant Indemnified Person. Subject to satisfactory confidentiality agreements, the relevant Indemnified
Person, and the Lessee hereby agree to provide such accountants with all information and materials as shall be reasonably necessary or desirable in connection herewith, provided, however, that no Indemnified Person shall be required to
disclose its tax returns or any documents related thereto that such Indemnified Person determines in its sole discretion to be confidential in connection with such verification, and the parties hereto agree that each Indemnified Person shall have
sole control over the positions taken with respect to its tax returns and filings. The fees of the accountants in verifying an adjustment pursuant to this Section 14 shall be paid by the Lessee, unless such verification discloses an error adverse to
the Lessee of 10% or more of the amount determined by such accounting firm, in which case such fees shall be paid by the relevant Indemnified Person. Any information provided to such accountants by any Person shall be and remain the exclusive
property of such Person and shall be deemed by the parties to be (and the accountants will confirm in writing that they will treat such information as) the private, proprietary and confidential property of such Person, and no Person other than such
Person and the accountants shall be entitled thereto, and all such materials shall be returned to such Person. Such accounting firm shall be requested to make its determination within 30 days. In the event such accounting firm shall determine that
such computations are incorrect, then such firm shall determine what it believes to be the correct computations. The computations of the accounting firm shall be final, 
  

 31 

 binding and conclusive upon the Lessee and the relevant Indemnified Person and the Lessee shall have no right to inspect
the books, records, tax returns or other documents of or relating to the relevant Indemnified Person to verify such computations or for any other purpose. The parties hereby agree that the accounting firm’s sole responsibility shall be to
verify the computation of any amounts payable under this Section 14 and that matters of interpretation of this Participation Agreement are not within the scope of such accounting firm’s responsibilities. 
  
 (n) Withholding on Lease Payments. The Lessee agrees that all payments
of Rent (including Stipulated Loss Value) shall be free of any deduction or withholding of any nature whatsoever, and in the event any withholding is required, the Lessee shall pay at the same time that any payment of Rent is due and payable under
the Lease an additional amount, on an After-Tax Basis, such that the net amount actually received by the person entitled thereto, free of deduction and withholding, will equal the amount then due absent such deduction and withholding. If, for any
reason, the Lessee is required to make any payment to a taxing authority with respect to, or as a result of, any withholding tax imposed with respect to any payment of Rent which withholding tax is not the responsibility of the Lessee under this
Section 14 (other than this subsection (n)), then the Indemnified Person which received the payment in respect of which such tax was withheld shall pay to the Lessee an amount which equals such additional amount paid by the Lessee with respect to,
or as a result of, such withholding tax. 
  
 (o) Withholding
Taxes on Finance Lease Payments. (i) Except as otherwise provided herein, the Lessee will indemnify the Finance Lessor and each other Holder from time to time of an interest in the Finance Lease and their respective Affiliates, agents,
successors, permitted assigns, directors, officers and servants (for purposes of this Section 14 a “Finance Lease Indemnified Person”) for any present or future withholding taxes imposed during the Basic Term (on or with respect to any
payments made pursuant to the Finance Lease) by any government or any political subdivision or taxing authority thereof or therein and all interest, penalties, additions to tax or similar liabilities with respect thereto (individually, a
“Finance Lease Withholding Tax” and collectively, “Finance Lease Withholding Taxes”), provided that the Lessee shall have no obligation or liability under this Section 14(o) in respect of (A) any Finance Lease Withholding
Taxes imposed under Applicable Law in the case of any payment to or for the account of the Finance Lessor as of the date hereof (the “Original Finance Lessor”) until the Original Finance Lessor delivers to the Lessee evidence reasonably
satisfactory to the Lessee that Finance Lease payments to the Original Finance Lessor are not subject to withholding based on Applicable Law as of the date such evidence is delivered, (B) any Finance Lease Withholding Taxes to the extent that such
Finance Lease Withholding Taxes could have been avoided or reduced if the affected Holder had complied with, or been eligible to comply with, Section 14(o)(ii), (C) any Finance Lease Withholding Taxes imposed on a Holder or on any payments to or for
the account of any Holder under Applicable Law on the date of the transfer to such Holder of an interest in the Finance Lease to the extent that in the absence of this Section 14(o)(i)(C), the Finance Lease Withholding Taxes that would be
indemnifiable hereunder in respect of the transferred interest are in excess of the Finance Lease Withholding Taxes that would be indemnifiable hereunder in respect of the transferred interest if such interest had not been so transferred
provided that this clause (C) shall not serve to reduce any indemnity for Finance Lease Withholding Taxes for any Holder that is a transferee of an interest in the Finance Lease from either the Original Finance Lessor or any entity described
in clause (B) above, and provided further that this clause (C) shall not apply to any transfer that occurs after 
  

 32 

 the occurrence and during the continuation of a Specified Default or a Lease Event of Default and (D) any Finance Lease
Withholding Taxes imposed with respect to a payment to any Holder following a transfer to such Holder that does not satisfy the requirements of Section 16(g) hereof, If any Finance Lease Withholding Taxes are so levied or imposed and not excluded
from indemnification pursuant to the proviso contained in the first sentence of this Section 14(o) or pursuant to the preceding sentence, the Lessee agrees to pay directly to such Holder on an After-Tax basis the full amount of such Finance Lease
Withholding Taxes and such additional amounts as may be necessary so that after withholding or deduction for or on account of such Finance Lease Withholding Taxes, the amount received by such Holder will not be less than the amount such Holder would
have received in the absence of such Finance Lease Withholding Tax. The Lessee will cause the Owner Trustee to furnish to the affected Holder within forty-five (45) days after the date on which the payment of any Finance Lease Withholding Tax is due
pursuant to Applicable Law certified copies of tax receipts evidencing such payment by the Owner Trustee, if reasonably available to the Owner Trustee or Lessee and if not provided by the Holder. If the Lessee fails to cause the Owner Trustee to
fully and timely pay all Finance Lease Withholding Taxes to the relevant taxing authority and pay all additional amounts to any affected Holder in accordance with this Section 14(o)(i), then the Lessee will indemnify the applicable Holder for and
hold such Holder harmless against, and reimburse such Holder upon its written request for, on an After-Tax basis, the amount of such Finance Lease Withholding Taxes levied or imposed and paid by such Holder. 
  
 (i) The Original Finance Lessor (unless the Finance Lessor is a United States
Person within the meaning of Section 7701(a)(30) of the Code) covenants and agrees that it will deliver to the Lessee and the Owner Trustee two complete original signed copies of Internal Revenue Service Form W-8ECI or W-8BEN, as applicable,
evidencing its qualification for a reduction in the rate of withholding based on Applicable Law as of the Delivery Date, and that, promptly upon becoming eligible for a complete withholding exemption, it will deliver to the Lessee and the Owner
Trustee two complete original signed copies of Internal Revenue Service Form W-8ECI or W-8BEN, as applicable, evidencing its qualification for a complete exemption from United States federal Finance Lease Withholding Tax on all payments made under
the Finance Lease. On or prior to the date on which all or any portion of an interest in the Finance Lease is transferred to a subsequent Holder (other than a subsequent Holder that is a United States Person within the meaning of Section 7701(a)(30)
of the Code), such subsequent Holder shall deliver to the Lessee two complete original signed copies of Internal Revenue Service Form W-8ECI or W-8BEN, as applicable, evidencing its qualification for a complete exemption from United States federal
withholding tax on all payments made to such Holder under the Finance Lease. From time to time as necessary to evidence the Original Finance Lessor’s or any such Holder’s qualification for an exemption from (or reduction of) United States
federal withholding tax on all payments made to the Original Finance Lessor or such Holder under the Finance Lease, the Original Finance Lessor or such Holder each agrees to deliver to the Lessee additional complete signed copies of Internal Revenue
Service Form W-8ECI, Form W-8BEN or such other forms or documents (unless the Original Finance Lessor or such Holder does not so qualify), as applicable, evidencing such qualification. In the case of Finance Lease Withholding Taxes other than United
States federal withholding taxes, the Original Finance Lessor and each Holder shall, to the extent reasonably possible, file such other forms or documents as it shall be legally entitled to provide and as shall be necessary in order to claim
complete or partial exemption from such Finance Lease Withholding Taxes, provided that the last sentence of this Section 14(o)(ii) shall 
  

 33 

 not apply with respect to such Finance Lease Withholding Taxes where the Original Finance Lessor or such Holder is in
good faith unaware of the need to file such other forms and documents, or concludes in good faith that such filing could have a material adverse impact on the business or operations of the Original Finance Lessor or such Holder. In the event that
the Original Finance Lessor or any Holder becomes aware that the information set forth in any form or document delivered by the Original Finance Lessor or such Holder pursuant to this Section 14(o)(ii) is no longer correct, the Original Finance
Lessor or such Holder shall promptly notify the Lessee of such incorrectness. If and for any period during which the provisions of this Section 14(o)(ii) are not satisfied by or with respect to the Original Finance Lessor or such Holder, Section
14(o)(i) shall not apply with respect to the Original Finance Lessor or such Holder and the Lessee shall have no indemnity obligation for or liability under this Section 14(o) for any Finance Lease Withholding Taxes in respect of the Original
Finance Lessor or such Holder. 
  
 (p) Finance Lease
Withholding Tax Indemnity for Owner Participant. In the event the Owner Trustee fails to withhold any Finance Lease Withholding Taxes, then the Lessee will indemnify and hold harmless on an After Tax basis the Owner Participant, the Trust
Estate, the Owner Trustee and the Finance Lessor (and any Affiliate of any such Person) in respect of such Finance Lease Withholding Taxes; provided, however, that the Lessee will be subrogated to the rights and defenses of any such
Person which it is indemnifying or holding harmless in respect of such Finance Lease Withholding Taxes. The Lessee further agrees to indemnify and hold the Owner Participant harmless against, on an After-Tax Basis, any additional amounts paid in
respect of any Holder for Finance Lease Withholding Taxes. 
  
 (q)
Transfer Covenant/VAT Expenses. If the Owner Participant provides at least 10 days’ advance written notice to the Lessee of its intent to transfer its interest in any Aircraft on a date specified in such notice, the Lessee shall locate
such Aircraft at a location on the Lessee’s regular Boeing 767 route schedule in a jurisdiction selected by the Owner Participant (or another location in the continental United States reasonably requested by the Owner Participant) and
identified in such notice on the date of transfer specified in the notice (provided that the Lessee shall be entitled to relocate such Aircraft upon its receipt of written notice from the Owner Participant that such transfer has been completed);
provided that the Lessee shall be entitled to locate such Aircraft in a jurisdiction selected by the Lessee if such jurisdiction is acceptable to the Owner Participant. The Owner Participant and the Lessee shall each cooperate as reasonably
practicable with a view to accomplishing the Owner Participant’s objectives regarding such transfer and limiting interference with the Lessee’s operations. The Lessee shall indemnify and hold the Owner Participant harmless against, on an
After-Tax Basis, (i) any sales or other transfer Taxes imposed as a result of its failure to perform its obligations under this Section 14(q) and (ii) costs and expenses incurred by the Owner Participant in complying with any value-added Tax that
are attributable to the transactions contemplated by the Operative Agreements. 
  
 Section 15. Purchase Options. So long as no Specified Default or Lease Event of Default has occurred and is continuing, subject to the terms and conditions of this Section 15, Lessee shall have the following
options to purchase the Aircraft: 
  

 34 

 (a) End of Basic Term Purchase Option. 
  
 An option, upon not less than 365 days’ prior written notice to purchase
any Aircraft on the last Business Day of the Basic Term for such Aircraft, for a purchase price equal to the lesser of (i) $6,500,000 and (ii) the Appraised Value for such Aircraft computed as of such date. 
  
 (b) Renewal Term Termination Date Purchase Option. 
  
 An option, upon written notice given not more than 30 days after the date the
Lessee has received notice from the Lessor that it has elected to terminate the Lease pursuant to Section 9 of the Lease, to purchase each of the Aircraft on the Renewal Term Termination Date for the Fair Market Sales Value for each such Aircraft
computed as of the Renewal Term Termination Date. 
  
 (c) End
of Renewal Term Purchase Option. 
  
 An option, upon not less
than 365 days’ prior written notice, to purchase an Aircraft on the last Business Day of the Renewal Term for such Aircraft for a purchase price equal to the Fair Market Sales Value for such Aircraft computed as of such date. 
  
 (d) Exercise of Purchase Option. 
  
 Lessee may exercise its option to purchase an Aircraft pursuant to Sections
15(a) or (b) above, by delivery of a written notice (a “Purchase Notice”) to Lessor and each Participant within the time period specified in such Sections; provided that, notwithstanding anything to the contrary in this Agreement, the
Lease or any other Operative Agreement: 
  
 (i)
Any Purchase Notice in respect of an Aircraft shall be revocable until fifteen (15) Business Days after the determination of the Appraised Value for such Aircraft in accordance with Section 15(d) and unless revoked by written notice by Lessee to
Lessor and each Participant shall thereafter become irrevocable and shall constitute an unconditional obligation of Lessee to purchase such Aircraft under this Section 15; and 
  
 (ii) Lessee shall not be entitled to give any Purchase Notice with respect to an Aircraft pursuant to
Section 15(a) if it has delivered a Renewal Notice for a Renewal Term for such Aircraft that would commence immediately following the date of such proposed purchase. 
  
 (e) Determination of Appraised Value. 
  
 The Appraised Value of an Aircraft shall be determined not more than 365 days and not less than 180 days prior to the
applicable date of purchase by an appraisal in accordance with the Appraisal Procedure. 
  
 (f) Title. Upon full and final payment by Lessee of (i) the applicable purchase price of an Aircraft, (ii) all unpaid Rent for such Aircraft due and payable through and including the date of purchase and (iii)
all other amounts due and payable by Lessee under this 
  

 35 

 Agreement, the Lease and the other Operative Agreements, Lessor will transfer all the Lessor’s right, title and
interest, in and to such Aircraft to Lessee on an “AS-IS, WHERE-IS” basis and without recourse or warranty (except as to the absence of Lessor Liens). 
  

(g) Indemnification. Lessee shall indemnify any Indemnified Person for any sales Taxes (or other related Taxes) arising from the exercise of the
Purchase Options. 
  
 Section 16. Other Covenants. (a)
No Lessor Liens. Each of the Owner Participant, the Owner Trustee and the Trust Company severally agrees that it shall not directly or indirectly permit to exist any Lessor Lien attributable to it with respect to any part of the Trust Estate
or the Collateral; provided that each such party shall have thirty days after having received notice thereof in which to contest any Lessor Lien in good faith by appropriate proceedings so long as in the reasonable opinion of the Finance Lessor
there is no material danger of impairment of the interest of the Finance Lessor in the any of the Collateral and in the reasonable opinion of the Lessee there is no material danger of breach of its quiet enjoyment rights. Each of the Owner
Participant, the Owner Trustee and the Trust Company severally agrees that it will, at its own cost and expense, promptly take such action as may be necessary duly to discharge any Lessor Lien attributable to it with respect to any part of the Trust
Estate or the Collateral, and will make restitution and hold harmless the Lessee and each other Indemnified Person from and against any costs or expenses (including reasonable legal fees and expenses) and any reduction in the amount payable out of
the Collateral to each present or future Holder of an interest in the Finance Lease in respect of any such interest, incurred, in each case, as a result of the imposition or enforcement of any such Lessor Lien attributable to it. 
  
 (b) Trust Agreement. Without prejudice to any right under the Trust
Agreement of the Trust Company to resign, or the Owner Participant’s right under the Trust Agreement to remove the Trust Company, as Owner Trustee, each of the Owner Participant and the Owner Trustee hereby (i) agrees with the Lessee, and
Finance Lessor not to terminate or revoke the trust created by the Trust Agreement except as permitted by Article IX of the Trust Agreement and (ii) agrees with the Lessee and, the Finance Lessor not to amend, supplement, terminate or revoke or
otherwise modify any provision of the Trust Agreement in such a manner as to affect adversely the rights of any such party without the prior written consent of such party. Notwithstanding the first sentence of this Section 16(b), the Owner
Participant may at any time terminate or revoke the Trust Agreement to the extent permitted under the Trust Agreement, provided that the Owner Participant concurrently enters into a trust agreement, creating a new trust, with a new trustee (the
“New Trustee”), the corpus of which new trust is subject to the first priority, perfected Lien of the Finance Lease and the Assignment Agreement (having in good faith consulted with the Lessee and, so long as the Liens of the Finance Lease
and Assignment Agreement are in effect, the Finance Lessor, prior to entering into any such trust agreement); and provided, further, that, if such trust agreement creates a substitute trust on terms not equivalent in all material respects to those
of the Trust Agreement, the Owner Participant shall have received the prior written consent (not to be unreasonably withheld) of the Lessee and, so long as the Lien of the Finance Lease is in effect, the Finance Lessor. Prior to or concurrently with
entering into any substitute trust arrangement, the Owner Participant shall have executed and delivered, and shall have caused the New Trustee to have executed and delivered, such agreements, certificates and other documentation (together with legal
opinions and other related closing documentation) as shall reasonably be requested by the Lessee and the Finance Lessor. Upon the transfer of the 
  

 36 

 Trust Estate to such substitute trust, such substitute trust agreement shall, for all purposes hereof, be deemed to be
the Trust Agreement. 
  
 (c) Successor Owner Trustee; Change of
Office. The Owner Trustee or any successor may resign or be removed by the Owner Participant, a successor Owner Trustee may be appointed, and a corporation may become the Owner Trustee under the Trust Agreement, only in accordance with the
provisions of Article X and Section 12.14 of the Trust Agreement. The Owner Participant agrees to appoint promptly a successor Owner Trustee if the Owner Participant shall have Actual Knowledge that the Owner Trustee is not in compliance with its
covenant in paragraph (h) below. The Trust Company agrees to promptly notify the Finance Lessor of any change in the chief executive office, chief place of business or the designation of the state of location of the Trust Company from that set forth
in Section 10(e) hereof. 
  
 (d) No Termination. The Owner
Participant will not instruct the Owner Trustee to take any action in violation of the terms of any Operative Agreement. 
  
 (e) Section 1111 (b). If (i) all or any part of the Trust Estate becomes the property of a debtor subject to the reorganization provisions of the
Federal bankruptcy laws, as amended from time to time, (ii) pursuant to such reorganization provisions the Owner Participant is required, by reason of its being held to have recourse liability to the Finance Lessor or the trustee of any thereof,
directly or indirectly, to make payment on account of any amount payable as “Basic Rent” or “Stipulated Loss Value” under the Finance Lease, and (iii) the Finance Lessor actually receives any Excess Amount, as defined below,
which reflects any payment by the Owner Participant on account of clause (ii) above, then the Finance Lessor shall promptly refund to the Owner Participant such Excess Amount. For purposes of this paragraph (e), “Excess Amount” means the
amount by which such payment exceeds the amount which would have been received by the Finance Lessor if the Owner Participant had not become subject to the recourse liability referred to in clause (ii) above. Nothing contained in this paragraph (e)
shall prevent the Finance Lessor from enforcing any personal recourse obligation (and retaining the proceeds thereof) of the Owner Participant under this Agreement (other than referred to in clause (ii) above) or the Trust Agreement (and any
exhibits or annexes thereto). 
  
 (f) [reserved].

  
 (g) Transfer of Finance Lessor’s Interests.
Finance Lessor will not sell, assign, convey, participate or otherwise transfer all or any portion of its right, title or interest in and to the Collateral or the Operative Agreements if the transfer would result in violation of the Securities Act
of 1933, as amended. In addition, (i) no interest in the Finance Lease shall be transferred unless the transferee, at least five Business Days in advance of the date of the proposed transfer, makes written representations to the transferor for the
benefit of the transferor, Lessee, Owner Participant and Owner Trustee to the effect of the representations set forth in Section 9(b) hereof, and the transferee assumes the obligations of the Finance Lessor under the Operative Agreements and (ii) so
long as no Default has occurred and is continuing, any transfer of a partial interest in the Finance Lease shall be in a minimum amount of $5,000,000 unless the transferee is a Holder. 
  

 37 

 (h) Citizenship. The Trust Company agrees that if at any time it shall obtain actual knowledge
that it has ceased, or will cease, to be a “citizen of the United States” within the meaning of 49 U.S.C. § 40102(a)(15), it will promptly resign as Owner Trustee (if and so long as such citizenship is necessary under the Federal
Aviation Act), effective upon the appointment of a successor Owner Trustee in accordance with Section 10.01 of the Trust Agreement. 
  
 Section 17. Expenses. (a) Transaction Costs. Whether or not the transactions contemplated hereby shall be consummated, the Lessee shall pay,
on the Delivery Date, all Transaction Costs that have accumulated through the Delivery Date. In addition, Lessee will pay the fees of counsel for the Lessee. Each of the Owner Trustee, the Finance Lessor and the Owner Participant shall promptly
submit to the Lessee copies of invoices for which such party seeks payment as they are received (but no later than the 75th day following the Delivery Date). 
  
 (b) Amendments, Waivers, Etc. The Lessee will pay all costs and expenses incurred in connection with the entering into or the giving or withholding
of any future amendments, supplements, waivers or consents with respect to the Operative Agreements, including with respect to any voluntary termination of the Lease, whether or not the same shall become effective. 
  
 (c) Fees of Trustees. The Lessee will pay all continuing fees and
expenses of the Owner Trustee (and any fees and expenses of a successor Owner Trustee selected in consultation with the Lessee or without such consultation if a Lease Event of Default then exists,) and its counsel (including any fees and expenses
incurred in connection with the preparation of any filing of any Owner Trustee tax returns) and the Finance Lessor and its counsel in connection with the transactions contemplated by the Operative Agreements, including all expenses and disbursements
arising out of, or in anyway related to (x) the preservation and/or enforcement of any rights or remedies under the Operative Agreements (including all expenses and disbursements in connection with the repossession, maintenance, refurbishment,
preparation for sale or other disposition of all or any portion of the Collateral in connection with a Lease Event of Default) and (y) the filing or recording of any Operative Agreement required by the terms hereof or thereof. 
  
 Section 18. Transfer of Owner Participant’s Interest. (a) The
Owner Participant shall not assign, convey or otherwise transfer all or any part of its right, title and interest in and to the Trust Estate without the prior written consent of the Finance Lessor. 
  
 (b) Upon any assignment, conveyance or transfer (including any subsequent
assignment, conveyance or transfer) permitted under Section 18(a), the transferee shall be deemed the “Owner Participant” for all purposes hereof, and shall be deemed to have made all payments in respect of the right, title and interest so
transferred, and each reference in any Operative Agreement to or encompassing the “Owner Participant” shall thereafter be deemed to refer to such transferee. No transfer shall release the then-current or any previous Owner Participant from
its obligations hereunder and under the other Operative Agreements, except to the extent expressly assumed by any transferee; provided, however, that in no event shall any such transfer or the consent thereto by any party release the
transferor from any liability on 
  

 38 

 account of any breach by it of any representation, warranty, covenant or obligation set forth in any Operative Agreement
or for any fraud or willful misconduct engaged in by the transferor. 
  
 (c) If the Owner Participant (or any successor) intends to transfer its interest in the Trust Estate, it shall give at least 15 days’ prior written notice thereof to the Finance Lessor, the Trust Company, and the Lessee, specifying the
name and address of the proposed transferee and specifying the facts necessary to determine whether or not the requirements for transfer in this Section 18 are satisfied. 
  
 (d) If, as a result of any such transfer, a single “Owner Participant” is not to continue to receive all payments
to be made by the Lessee to the “Owner Participant”, the Owner Participant or Owner Participants shall from time to time, by notice to the Lessee and the Owner Trustee and the Finance Lessor, designate the manner in which any such payments
to such “Owner Participant” are to be allocated, and the Lessee and the Owner Trustee shall be entitled to rely on such notice for all purposes. 
  
 (e) Notwithstanding the foregoing provisions of this Section 18, the Owner Participant may, prior to the end of the Lease Term, agree to sell or otherwise
dispose of its beneficial interest in the Aircraft at or after the scheduled end of the Lease Term, subject to the Operative Agreements. 
  
 Section 19. Miscellaneous. (a) Notices. Except as otherwise provided herein or therein, all communications, notices, waivers and consents
provided for in this Agreement and each of the other Operative Agreements shall be in writing and shall be given in person or by courier or by means of telecopy, facsimile or other wire transmission or mailed by registered first-class mail (return
receipt requested), postage prepaid, and shall be deemed given when received by (or when proffered to, if receipt is not accepted) the party to whom it is addressed. A copy of any notice given by telecopy, facsimile or other wire transmission or
mailed by registered first-class mail shall be sent to the addressee by first class mail as soon as practicable after such transmission. All notices shall be delivered to the addressees at the addresses set forth below: 
  
 (i) if to the Lessee or any other Lessee Party, to it at

  
 ABX Air, Inc. 
 145 Hunter Drive 
 Wilmington, Ohio 45177 
  
 Attention:
Joe Payne 
 Tel: 937-382-5591 Ext. 2686 
 Fax: 937-382-4252 
  
 With a copy to: 
 Airborne, Inc. 
 3101 Western Ave. 
 Seattle, Washington 98121 
  

 39 

 Attention: Dave Anderson, Corporate Secretary 
 Tel: 206-281-1005 
 Fax: 206-281-1444 
  
 With a copy to:

 Airborne Express, Inc. 
 3101 Western Ave. 
 Seattle, Washington 98121 
  
 Attention: Dave Anderson, Corporate Secretary 
 Tel: 206-281-1005 
 Fax: 206-281-1444 
  
 (ii) if to the
Finance Lessor, to it at 
  
 Mitsui & Co.
Ltd. 
 2-1, Ohtemachi 1-chome, Chiyoda-ku 
 Tokyo 100-0004, Japan 
  
 Attention: TKMPE 
 Tel: 81-3-3285-4560 
 Fax: 81-3-3285-9927 
  
 and 
  
 Tombo Aviation Inc. 
 3780 Kilroy Airport Way, Suite 700 
 Long Beach, CA 90806 
 Attention: President 
 Tel: (562) 997-3246 
 Fax: (562) 988-2694 
  
 (iii) if to the Owner Participant, to it at 
  
 TOMAIR, LLC 
 c/o Tombo Aviation Inc. 
 3780 Kilroy Airport Way, Suite 700 
 Long Beach, CA 90806 
 Attention: President 
 Tel: (562) 997-3246 
 Fax: (562) 988-2694 
  
 With a copy to: 
 Wilmington Air Park, Inc. 
 c/o ABX Air, Inc. 
 145 Hunter Dr. 
 Wilmington, Ohio 45177 
 Attention: Joe Payne 
  

 40 

 Tel: 937-382-5591 (ex. 2686) 
 Fax: 937-725-0471 
  
 and 
  
 Airborne, Inc. 
 3101 Western Ave. 
 Seattle, Washington 98121 
 Attention: Dave Anderson, Corporate Secretary 
 Tel: 206-281-1005 
 Fax: 206-281-1444 
  
 (iv) if to the
Trust Company or the Owner Trustee, to it at 
 Wells Fargo Bank Northwest, National Association 
 79 South Main Street 
 Salt Lake City, UT 84111 
 Attention: Corporate Trust Administration 
 Tel: (801) 246-5819 
 Fax: (801) 246-5053 
  
 or at such other address as any of the foregoing
Persons or any other Person who is to receive any notice shall from time to time designate by notice duly given in writing to the other parties to this Agreement or to any other Operative Agreement in accordance with the provisions of this Section
19(a). 
  
 (b) Survival. All agreements, representations,
warranties and indemnities contained in this Agreement and in any agreement, document or certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall survive and continue in effect following the execution and
delivery of this Agreement, and all such representations, warranties and indemnities and the agreements referred to in this Agreement (in accordance with their terms) shall survive forever, notwithstanding termination of the Lease. 
  
 (c) Binding Effect. All agreements, representations, warranties and
indemnities in this Agreement and in any agreement, document or certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall bind the Person making the same and its successors and assigns and shall inure to the
benefit of each Person for whom made and its successors and permitted assigns. 
  
 (d) Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which, when so executed and delivered, shall be an original,
but all such counterparts shall together constitute but one and the same instrument. 
  
 (e) Governing Law. This Agreement has been negotiated and delivered in the State of New York and shall be governed by, and be construed in accordance with, the laws of the State of New York. 
  

 41 

 (f) Amendments, Modifications, Etc. Except as otherwise provided in this Section 19(f): (i)
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; and (ii) no termination, amendment, supplement, waiver or modification of this Agreement shall be effective to increase the obligations or liabilities, or decrease the rights, of any party hereto which is not a
party to this Agreement without the written consent of such party. Notwithstanding the foregoing, so long as the Finance Lease has not been discharged, no termination, amendment, supplement, waiver or other modification of this Agreement, any
Operative Agreement or any term hereof or thereof shall be effective without the prior written consent of the Finance Lessor. 
  
 (g) Headings and Table of Contents. The headings of the Sections, subsections and paragraphs and the table of contents of this Agreement have been
inserted for convenience of reference only and shall in no way expand, restrict, define or otherwise modify any of the terms or provisions hereof. 
  
 (h) Currency. All amounts and moneys referred to in this Agreement shall be construed to mean money which at the time of payment is lawful money of
the United States. 
  
 (i) Severability. If any term or
provision hereof or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or such provision shall be ineffective as to such jurisdiction to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable any remaining terms and provisions hereof or the application of such term or provision to circumstances other than those as to which it is held invalid or unenforceable. To the extent
permitted by Applicable Law, the parties hereto hereby waive any provision thereof that renders any term or provision hereof invalid or unenforceable in any respect. 
  
 (j) Entire Agreement. This Agreement (including any and all appendices, schedules and exhibits hereto) and the other
Operative Agreements supersede all prior agreements, written or oral, between or among any of the parties hereto relating to the transactions contemplated hereby and thereby and each of the parties hereto represents and warrants to the others that
this Agreement and the other Operative Agreements constitute the entire agreement among the parties relating to the transactions contemplated hereby and thereby. 
  
 (k) Reserved. 
  
 (1) Benefits of Certain Obligations. Sections 3(d), 3(f) and 22 of the Lease (as the same may be amended from time to time in accordance with the
applicable provisions of the Lease and the Finance Lease) are hereby incorporated herein by reference for the express benefit of the Finance Lessor. 
  
 (m) Liabilities of Participants. Anything contained in any of the Operative Agreements to the contrary notwithstanding, no Participant shall have
any obligation or duty of any kind to any other party hereto or to any Holder with respect to the transactions contemplated hereby except those obligations or duties expressly set forth in the Operative Agreements. 
  

 42 

 Without limiting the generality of the foregoing, under no circumstances whatsoever shall any Participant
as such be liable to the Lessee, nor shall any Participant be liable to any other Participant, for any action or inaction on the part of the Owner Trustee or the Finance Lessor in connection with any of the Operative Agreements, the holding of any
interest in, or the use of, the Aircraft or the administration of the Trust Estate or the Collateral, whether or not such action or inaction is caused by the willful misconduct or gross negligence of the Owner Trustee or the Finance Lessor, unless
such action or inaction is pursuant to instructions of a Participant, in which case such Participant shall be liable therefor. 
  
 The Lessee and the Participants each acknowledge and agree that the Trust Company is (except as otherwise expressly provided herein or therein) entering
into this Agreement and the other Operative Agreements to which it is a party (other than the Trust Agreement) in its capacity as trustee under the Trust Agreement and that the Trust Company shall not be liable or accountable under any circumstances
whatsoever in its individual capacity, except as otherwise expressly provided herein and in the other Operative Agreements and except for its gross negligence and willful misconduct. 
  
 (n) Confidentiality. Each of the Participants, the Owner Trustee, the Trust Company, the Finance Lessor, and the
Lessee shall keep this Agreement and the other Operative Agreements confidential except to extent such Operative Agreement is to or has been filed with the FAA as contemplated herein or in any other Operation Agreement and all such Persons (other
than the Lessee) shall keep confidential all Lessee Confidential Information, and shall not disclose, or cause to be disclosed, the same to any Person, except (A) to prospective transferees of such Person’s interest in the Operative Agreements
or their respective counsel or special counsel, independent insurance brokers, accountants, auditors or other agents who agree, or whose custom it is, to hold such information confidential, (B) to such Person’s or its Affiliates’ counsel
or special counsel, independent insurance brokers, accountants, auditors or other agents who agree, or whose custom it is, to hold such information confidential, (C) as may be required by any statute, court or administrative order or decree or
governmental ruling or regulation of any applicable jurisdiction, or as may be requested by any applicable taxing authority, (D) to the extent such information is publicly available or otherwise known to another Person with which a Person subject to
the provisions of this paragraph (n) is dealing or (E) to such other Persons as are reasonably deemed necessary by such Person in order to protect the interests of such Person or for the purposes of enforcing any of the Operative Agreements by such
Person. As used herein, “Lessee Confidential Information” means information that is confidential and proprietary to the Lessee, including, without limitation, information on the current or projected financial condition, prospects,
technology, methodology and marketing strategies of the Lessee provided by the Lessee to any other party hereto pursuant to or in connection with the Operative Agreements. The provisions of this paragraph (n) shall survive the termination of this
Agreement and be binding upon the successors and assigns of the parties hereto. 
  
 (o) Consent to Jurisdiction; Waiver of Jury Trial. (i) Consent to Jurisdiction. Any suit, action or other proceeding arising out of this Agreement, the Lease, or any other Operative Agreement, the
subject matter of any thereof or any of the Overall Transaction brought by any party or parties thereto, or their successors or assigns may be brought in the United States District Court for the Southern District of New York or in the Supreme Court
of the State of New York located in New York County, and each of the Lessee, the Owner Trustee 
  

 43 

 and the Participants (A) hereby irrevocably submits itself to the non-exclusive jurisdiction of the United States
District Court for the Southern District of New York and the Supreme Court of the State of New York located in New York County and (B) to the extent permitted by Applicable Law, hereby waives, and agrees not to assert, by way of motion, as a
defense, or otherwise, in any such suit, action or proceeding, to the extent permitted by Applicable Law, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper, or that
this Agreement, the Lease, or any other Operative Agreement or the subject matter of any thereof or any of the Overall Transaction may not be enforced in or by such courts. 
  
 (i) WAIVER OF JURY TRIAL. FOR THE PURPOSES OF THIS AGREEMENT AND EACH OTHER OPERATIVE AGREEMENTS TO WHICH IT IS OR
WILL BECOME A PARTY, EACH OF LESSEE, THE OWNER TRUSTEE, AND EACH PARTICIPANT HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR THEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY OTHER OPERATIVE AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OR OMISSIONS OF THE LESSEE, EACH PARTICIPANT, THE OWNER TRUSTEE, THE
FINANCE LESSOR OR ANY OTHER PERSON, RELATING TO THE OPERATIVE DOCUMENTS. 
  
 (p) Construction. Each of the parties hereto acknowledges that it was represented by counsel in connection with the Operative Agreements and the Overall Transaction, that it and its counsel reviewed and revised
the Operative Agreements and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Operative Agreements. 
  
 (q) Lease; Interest on Finance Lease. The Lessor, the Lessee and the
Owner Participant agree that for United States federal, state and local income and franchise tax purposes, it is intended that the Lessor will be treated as the owner and lessor of the Aircraft to be delivered under the Lease. The Finance Lessor
acknowledge such intended tax treatment and agree to treat income received from payments under the Finance Lease as interest for United States federal, state and local income tax purposes. 
  
 [signature pages follow] 
  
  

 44 

 IN WITNESS WHEREOF, each of the parties have each caused this Participation Agreement to be duly executed
as of the day and year first above written. 
  

	ABX AIR, INC., as Lessee
		
	 By:
	 	

	 	 	Name: Joe Hete
	 	 	Title: President
	
	MITSUI & CO., LTD., as Finance Lessor
		
	 By:
	 	

	 	 	Name:
	 	 	Title:
	
	TOMAIR, LLC, as Owner Participant
		
	 By:
	 	

	 	 	Name:
	 	 	Title:
	
	 WELLS FARGO BANK NORTHWEST,
 NATIONAL ASSOCIATION,
 not in its individual capacity (except as
 expressly stated herein) but solely as Owner
 Trustee

		
	 By:
	 	

	 	 	Name:
	 	 	Title:

  
  
  

 IN WITNESS WHEREOF, each of the parties have each caused this Participation Agreement to be duly executed
as of the day and year first above written. 
  

	ABX AIR, INC., as Lessee
		
	 By:
	 	

	 	 	Name: Joe Hete
	 	 	Title: President
	
	MITSUI & CO., LTD., as Finance Lessor
		
	 By:
	 	

	 	 	Name: M. Yamagami
	 	 	Title: Attorney-in-Fact
	
	TOMAIR, LLC, as Owner Participant
		
	 By:
	 	

	 	 	Name:
	 	 	Title:
	
	 WELLS FARGO BANK NORTHWEST,
 NATIONAL ASSOCIATION,
 not in its individual capacity (except as
 expressly stated herein) but solely as Owner
 Trustee

		
	 By:
	 	

	 	 	Name:
	 	 	Title:

  
  
  

 IN WITNESS WHEREOF, each of the parties have each caused this Participation Agreement to be duly executed
as of the day and year first above written. 
  

	ABX AIR, INC., as Lessee
		
	 By:
	 	

	 	 	Name: Joe Hete
	 	 	Title: President
	
	MITSUI & CO., LTD., as Finance Lessor
		
	 By:
	 	

	 	 	Name:
	 	 	Title:
	
	TOMAIR, LLC, as Owner Participant
		
	 By:
	 	

	 	 	Name: N. Kitamori
	 	 	Title:
	
	 WELLS FARGO BANK NORTHWEST,
 NATIONAL ASSOCIATION,
 not in its individual capacity (except as
 expressly stated herein) but solely as Owner
 Trustee

		
	 By:
	 	

	 	 	Name:
	 	 	Title:

  
  
  

 IN WITNESS WHEREOF, each of the parties have each caused this Participation Agreement to be duly executed
as of the day and year first above written. 
  

	ABX AIR, INC., as Lessee
		
	 By:
	 	

	 	 	Name: Joe Hete
	 	 	Title: President
	
	MITSUI & CO., LTD., as Finance Lessor
		
	 By:
	 	

	 	 	Name:
	 	 	Title:
	
	TOMAIR, LLC, as Owner Participant
		
	 By:
	 	

	 	 	Name:
	 	 	Title:
	
	 WELLS FARGO BANK NORTHWEST,
 NATIONAL ASSOCIATION,
 not in its individual capacity (except as
 expressly stated herein) but solely as Owner
 Trustee

		
	 By:
	 	

	 	 	Name: C. Scott Nielsen
	 	 	Title: Vice President

  
  
  

 Schedule 1 to 
 Participation Agreement 
  
 COMMITMENTS 
  

	 Participant

	  	Aircraft
N784AX

	  	Aircraft
N785AX

	  	Aircraft
N786AX

	 Mitsui & Co., Ltd., as Finance Lessor
	  	$	20,000,000	  	$	20,000,000	  	$	20,000,000
	 TOMAIR, LLC, as Owner Participant
	  	$	3,500,000	  	$	3,500,000	  	$	3,500,000
	 	  	
	
	  	
	
	  	
	

	 Total:
	  	$	23,500,000	  	$	23,500,000	  	$	23,500,000Lease Agreement

 EXHIBIT 10.15 
  
 EXECUTION COPY 
  

  
 LEASE AGREEMENT 
  
 Dated as of August 21, 2001 
  
 between 
  
 WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, 
 not in its individual capacity (except as 
 expressly stated herein) but solely as Owner
Trustee 
  
 Lessor 
  
 and 
  
 ABX AIR, INC. 
  
 Lessee 
  

  
 Three Boeing Model 767-200 Aircraft 
  
 U.S. Registration Numbers N784AX, N785AX and N786AX 
  

  
 All right, title and interest of Wells Fargo Bank Northwest, National Association, as Owner Trustee under the Trust Agreement dated as of August 21, 2001,
in and to this Lease and the Aircraft covered hereby has been assigned to, and is subject to the security interest created in such right, title and interest in favor of Mitsui & Co., Ltd. under the Finance Lease and the Assignment Agreement
referred to in such Trust Agreement. This Lease may be executed in several counterparts. To the extent, if any, that this Lease constitutes chattel paper (as such term is defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction) no security interest in this Lease may be created through the transfer of possession of any counterpart other than the original counterpart, which shall be identified (for such purposes only) as the counterpart containing the receipt
therefor executed by Mitsui & Co., Ltd. on the signature page thereof. 

 TABLE OF CONTENTS 
  

Page 
  

			
	Section 1.	  	 Interpretation
	  	1
			
	Section 2.	  	 Acceptance
	  	1
			
	Section 3.	  	 Term; Rent
	  	1
			
	Section 4.	  	 Disclaimer of Warranties: Certain Agreements of the Lessee
	  	3
			
	Section 5.	  	 Return of Aircraft .
	  	4
			
	Section 6.	  	 Liens
	  	14
			
	Section 7.	  	 Registration, Maintenance and Operation; Possession; Insignia
	  	14
			
	Section 8.	  	 Replacement of Parts; Pooling of Parts; Alterations; Modifications and Additions
	  	20
			
	Section 9.	  	 [Reserved]
	  	22
			
	Section 10.	  	 Loss, Destruction, Requisition, etc.
	  	22
			
	Section 11.	  	 Insurance
	  	25
			
	Section 12.	  	 Inspection
	  	30
			
	Section 13.	  	 ASSIGNMENT.
	  	30
			
	Section 14.	  	 Lease Events of Default
	  	31
			
	Section 15.	  	 Remedies
	  	33
			
	Section 16.	  	 Lessor’s Right To Perform for the Lessee
	  	36
			
	Section 17.	  	 Further Assurances
	  	36
			
	Section 18.	  	 Notices
	  	37
			
	Section 19.	  	 Net Lease, etc.
	  	37
			
	Section 20.	  	 Security Deposit
	  	38
			
	Section 21.	  	 Successor Owner Trustee
	  	39
			
	Section 22.	  	 Security for Lessor’s Obligations under Finance Lease
	  	39
			
	Section 23.	  	 Liability of Lessor Limited
	  	40
			
	Section 24.	  	 Miscellaneous
	  	40
			
	Section 25.	  	 Bankruptcy; True Lease
	  	42
			
	Appendix A	  	 Definitions
	  	 
			
	Exhibit A	  	 Form Of Lease Supplement
	  	 
			
	Exhibit B	  	 Form of Letter of Credit
	  	 
			
	Exhibit C	  	 Aircraft Documentation
	  	 
			
	Exhibit D	  	 Basic Rent Schedule
	  	 
			
	Exhibit E	  	 Lessor’s Cost and Basic Term
	  	 

  

 i 

 LEASE AGREEMENT dated as of August 21, 2001, between WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a
national banking association, not in its individual capacity (except as expressly stated herein) but solely as Owner Trustee under the Trust Agreement, as the Lessor, and ABX AIR, INC., a Delaware corporation, as the Lessee. 
  
 Section 1. Interpretation. For the purposes hereof, capitalized terms
used herein shall have the respective meanings assigned thereto in Appendix A and the other interpretative provisions of Appendix A shall be applicable hereto. 
  

Section 2. Acceptance. Acceptance under Lease. The Lessor hereby agrees (subject to satisfaction of the conditions set forth in Sections
2 and 5 of the Participation Agreement) to accept delivery of, and simultaneously to lease to the Lessee hereunder, and the Lessee hereby agrees to lease from the Lessor hereunder, each of the Aircraft. By execution and delivery of a Lease
Supplement in respect of an Aircraft, the Lessee confirms to the Lessor that such Aircraft has been duly marked in accordance with the terms of Section 7(d) hereof and that the Lessee has accepted such Aircraft on its own behalf for all purposes
hereof and on behalf of the Lessor for all purposes of the Operative Agreements. From and after the Delivery Date and throughout the Term until an Aircraft is redelivered to Lessor in accordance herewith, Lessee shall bear all risk of loss, damage,
theft or destruction of, or any other Event of Loss with respect to, such Aircraft or to such Airframe, any Engine or any Part. 
  
 Section 3. Term; Rent. (a) Term. (i) Subject to acceptance of the Aircraft as aforesaid, the Lessee hereby leases each of the
Aircraft for the Term. 
  
 (ii) The Lessee shall have the option
to renew this Lease with respect to all of the Aircraft upon the same terms and conditions set forth herein for a single Renewal Term, commencing upon the expiration of the Basic Term, provided that no Lease Default shall be continuing and no
Lease Event of Default shall have occurred either at the time that the Renewal Notice (as defined below) is received by the Lessor or on the date that such Renewal Term would otherwise commence. The Lessee may exercise its renewal option hereunder
only by delivering written notice of its election to exercise such option (a “Renewal Notice”) not less than three hundred and sixty-five (365) days before the end of the Basic Term. If the Lessee fails timely to provide notice of its
election to exercise its right to the Renewal Term, then the Lessee shall conclusively be deemed to have waived such right to renew and this Lease shall terminate on August 20, 2011. 
  
 (b) Basic Rent. The Lessee shall pay Basic Rent for each Aircraft for the Term in installments on each Rent Payment
Date occurring during the Term as indicated on Exhibit D hereto. 
  
 (c) Payments on Business Days. In any case where the scheduled due date for the payment of Rent shall not be a Business Day, such amount shall be payable on the next succeeding Business Day with the same force and effect as if paid
on the scheduled date of payment; provided that in the case of Basic Rent (or Stipulated Loss Value that is payable on a Rent Payment Date), if such succeeding Business Day would fall in the succeeding calendar month, such payment shall be made on
the next preceding Business Day. 

 (d) Reserved. 
  
 (e) Supplemental Rent. (i) The Lessee shall pay to the Lessor, or to whomsoever shall be entitled thereto as expressly provided herein or in any
other Operative Agreement, any and all Supplemental Rent promptly as the same shall become due and payable. The Lessee further agrees to pay to the Lessor, as Supplemental Rent, an amount equal to any LIBOR Break Funding Amount payable under the
Finance Lease as and whenever due thereunder (except as a result of an Event of Default which is not a Lease Event of Default). 
  
 (ii) If any Rent shall not be paid by the Lessee when due, the Lessee shall pay to the Lessor, or whomsoever shall be entitled thereto, on
demand, as Supplemental Rent, interest (to the extent permitted by Applicable Laws) on such overdue amount, from the due date thereof (without regard to any applicable grace period) to the date of payment thereof, at the Overdue Rate. 
  
 (f) Manner of Payment. All Rent, including Basic Rent and Supplemental
Rent, and all Stipulated Loss Value payments, and all other amounts payable by the Lessee hereunder (other than Excepted Payments) shall be paid in Dollars to the Lessor by payment to the Finance Lessor at Wells Fargo Bank, ABA: 121000248, for
credit to Account No.: 051-09221-15, Attention: Corporate Trust Services, Reference: 37668/N784AX N785AX N786AX or to such other account or at such other bank as the Finance Lessor may from time to time specify by notice to the Lessee, for
distribution as provided under the Finance Lease or, if the Finance Lessor shall have advised the Lessee that the Aircraft are no longer subject to the Lien of the Finance Lease and that this Lease is no longer subject to the Assignment Agreement,
shall be paid (and all Excepted Payments due to the Lessor shall in all circumstances be paid) to the Lessor at Wells Fargo Bank, ABA: 121000248, for credit to Account No.: 051-09221-15, Attention: Corporate Trust Services, Reference: 37668/N784AX
N785AX N786AX (or such other office or account of the Lessor as it shall designate in writing to the Lessee from time to time) and all Excepted Payments due to any Person other than the Lessor shall be paid to such Person at its address specified in
the Participation Agreement or such other address as may be specified pursuant to the Participation Agreement, in each such case in immediately available funds not later than 1:00 p.m., New York City time, on the date due. 
  
 Section 4. Disclaimer of Warranties: Certain Agreements of the Lessee.
(a) Disclaimer of Warranties. THE LESSEE ACKNOWLEDGES THAT IT HAS HAD OPERATIONAL RESPONSIBILITY OF EACH OF THE AIRCRAFT PRIOR TO THE TERM WITHOUT INTERFERENCE BY THE LESSOR OR THE FINANCE LESSOR AND POSSESSION AND CONTROL OF THE AIRCRAFT
DOCUMENTATION AND HAS CONDUCTED SUCH INSPECTIONS OF THE PHYSICAL CONDITION OF THE AIRCRAFT AS IT DEEMED APPROPRIATE AND HAS SATISFIED ITSELF CONCERNING THOSE MATTERS AND WITH THE AIRCRAFT DOCUMENTATION. AS SUCH, THE LESSEE AGREES THAT AS BETWEEN THE
LESSOR AND THE LESSEE, THE LESSOR LEASES AND THE LESSEE ACCEPTS EACH OF THE AIRCRAFT AND EACH PART THEREOF “AS-IS” AND “WHERE-IS” AND NONE OF THE LESSOR, IN ITS INDIVIDUAL CAPACITY OR AS OWNER TRUSTEE, THE FINANCE LESSOR OR ANY
OWNER PARTICIPANT SHALL BE DEEMED TO HAVE MADE ANY 
  

 2 

 REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE TITLE, AIRWORTHINESS, VALUE, CONDITION, DESIGN, OPERATION,
DURABILITY, PURPOSE, COMPLIANCE WITH SPECIFICATIONS, CONSTRUCTION, DESCRIPTION, PERFORMANCE, MERCHANTABILITY OR FITNESS OR ELIGIBILITY OR SUITABILITY FOR USE OR PURPOSE OF ANY AIRCRAFT OR ANY PART THEREOF, AS TO THE ABSENCE OF LATENT OR OTHER
DEFECTS, WHETHER OR NOT DISCOVERABLE, AS TO THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT, TRADEMARK OR COPYRIGHT, AS TO ANY OBLIGATION BASED ON STRICT LIABILITY IN TORT, OR AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP OF ANY AIRCRAFT OR ANY
PART THEREOF OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO SUCH AIRCRAFT OR ANY PART THEREOF, AND ANY RISKS WITH RESPECT THERETO SHALL BE ASSUMED BY LESSEE, except that the Trust Company, in its individual
capacity, makes the representations, warranties and covenants set forth in the Participation Agreement. 
  
 (b) Claims Against Manufacturer and Suppliers. The Lessor hereby has authorizes the Lessee under certain circumstances to exercise certain rights
of the Lessor under Section 3(b)(iii) of the Participation Agreement and to cooperate with the Lessee with respect thereto. The Lessor agrees that, as and when any right of action shall arise against any Supplier of any Part of the Aircraft in
relation to the terms of purchase, airworthiness, value, durability, merchantability, fitness for use, suitability, capacity, age, quality, description, state, condition, design, construction, use, operation or performance of, or any patent
infringement or alleged patent infringement in relation to, any Aircraft or any Part thereof, the Lessee shall be entitled, unless and until a Specified Default or a Lease Event of Default shall have occurred and be continuing, at its own expense to
exercise all rights of the Lessor against such Supplier. If as a result of any such action any moneys shall be received from any Supplier as aforesaid, the same shall be promptly paid to, and retained by, the Lessee unless a Lease Event of Default
shall have occurred and be continuing, in which case such moneys shall be paid to the Lessor as security for and applied to the obligations of the Lessee under the Operative Agreements in such order as the Lessor shall elect, with the balance, if
any, to be invested as provided in Section 1.07 of Appendix AF of the Finance Lease and, at such time as no Lease Event of Default shall be continuing, to the extent not so applied, paid to the Lessee. 
  
 (c) Certain Agreements. All obligations of the Lessee in this Lease
shall be done, performed or complied with at the Lessee’s cost and expense, unless otherwise expressly stated. The Lessee agrees with the Lessor for the benefit of the Lessor and each Participant that it shall perform the agreements, covenants
and indemnities set forth in the Participation Agreement as originally executed or as amended from time to time, to the extent the same shall inure to the benefit of the Lessor and such Participant, which agreements, covenants and indemnities are
hereby incorporated herein by reference as fully and to the same extent and with the same force and effect as if set forth in full in this paragraph (c), although any termination of this Lease shall not terminate any such agreements, covenants and
indemnities. 
  
 (d) Quiet Enjoyment. The Lessor covenants
that during the Term for any Aircraft, as long as no Lease Event of Default has occurred and is continuing, the Lessee’s 
  

 3 

 possession, use and quiet enjoyment of such Aircraft leased hereunder shall not be interrupted by the Lessor or any
Person claiming by, through or under the Lessor. 
  
 Section 5.
Return of Aircraft. (a) Return. Except as otherwise provided herein or in Section 15 of the Participation Agreement, at the expiration of the Term for any Aircraft or upon the earlier termination of this Lease, Lessee, at its own
expense, shall return such Aircraft to Lessor by delivering the same to Lessor at a location in the continental United States as designated by Lessor and cleared through all appropriate customs if so required, it being understood that Lessee shall
be responsible for the payment of all customs and export duties, air navigation fees and for obtaining all necessary flight and navigation permits. Each Aircraft, at the time of return to Lessor, shall be in an FAA approved cargo configuration fully
equipped with two Engines or other same model engines owned by Lessee properly installed thereon and other equipment, parts and accessories (including all modifications and improvements made during the Term unless removed in accordance with Section
8(c)), and loose equipment as delivered with such Aircraft and as would remain installed in such Aircraft, and fully certified for operation by the FAA. Each of the Aircraft shall be in good and airworthy condition with all software, systems and
components functioning in accordance with their intended use within the Manufacturer’s prescribed limits and with no placards restricting operational use of such Aircraft and with all remaining warranties and guarantees, to the extent
transferable, made available to the Lessor. Each of the Aircraft and records shall be in sufficient condition to allow the Lessor to operate such Aircraft immediately following its return for a minimum of 12 months before a scheduled “C”
check. 
  
 (b) Engines. In the event any engine not owned
by Lessor shall be returned with an Airframe in lieu of an Engine: (i) if the reason therefor is other than that an Event of Loss has occurred to such Engine, such engine shall be satisfactory to Lessor, in its reasonable discretion, free and clear
of Liens, suitable for use on such Airframe and shall have a value and utility at least equal to, be in as good operating condition, and meet the return conditions provided herein (including the incorporation of all airworthiness directives and
alert service bulletins which Lessee is required to effect under this Lease, and equivalent modification status, service bulletins status, and overall condition, and no greater number of accumulated flight hours, cycles, and time since last complete
engine refurbishment, as the Engine that should have been returned, assuming such Engine which should have been returned was in the condition and repair as required by the terms hereof immediately prior to such required return); and (ii) if the
reason therefor is that an Event of Loss has occurred to such Engine, such engine shall be free and clear of Liens, suitable for use on such Airframe and shall have a value and utility at least equal to, be in as good operating condition, and meet
the return conditions provided herein (including the incorporation of all airworthiness directives and alert service bulletins which Lessee is required to effect under this Lease, and equivalent modification status, service bulletins status, and
overall condition, and no greater number of accumulated flight hours, cycles, and time since last complete engine refurbishment, as the Engine that should have been returned, assuming such Engine which should have been returned was in the condition
and repair as required by terms hereof immediately prior to such required return); and, in either case, Lessee shall, at its own expense and concurrently with such delivery, furnish Lessor with a bill of sale, in form and substance reasonably
satisfactory to Lessor, for each such engine and with evidence of Lessee’s title to such engine (including, if requested, an opinion of Lessee’s counsel) and take such other action as Lessor may reasonably request in order that title to
such engine shall be duly 
  

 4 

 and properly vested in Lessor. Upon full compliance with this Section 5 and passage of title to such engine to Lessor,
such engine shall be an Engine for all purposes of this Lease and Lessor shall transfer, or cause to be transferred, to Lessee all Lessor’s right, title and interest in an Engine constituting part of the Aircraft so returned but not installed
on such Aircraft at the time of such return, without any representation, warranty or recourse of any kind whatsoever, express or implied, except a warranty that such Engine is free and clear of Liens which result from the Lessor’s own acts or
omissions or from claims against the Lessor not to be paid or indemnified against by the Lessee hereunder or not related to the transaction contemplated by this Lease. 
  
 (c) Return of Manuals and Data. Upon the return of any Aircraft, Lessee shall deliver to Lessor all updated and
current logs, manuals, certificates and data, records of inspection, airworthiness directives status and method of compliance, modifications, overhaul and repair records, and supplemental type certificates amended to the latest amendment revision
available in the English language and in a format acceptable to the FAA, and all other Aircraft Documentation pertaining to the Airframe, Engines or engines, components, assemblies and appliances, which are required to be maintained with respect
thereto under applicable rules and regulations of the FAA and as described herein current through the expiration of the Lease or earlier return of such Aircraft. These shall include but not be limited to the Aircraft Documentation described in
Exhibit C. Lessee shall deliver to Lessor the current and, to the extent necessary to understand the maintenance records, the complete maintenance program for the Airframe, Engines, Parts, etc., including all items necessary to bridge Lessee’s
maintenance program to another airline’s maintenance program. Said maintenance program shall be kept confidential to the full extent practicable by Lessor and shall be used solely for reference in bridging the Aircraft to the next operator upon
termination or expiration of the Lease. 
  
 (d) Delayed Return
of Aircraft. If the return of any Aircraft to Lessor in compliance with the terms of this Lease shall be delayed beyond the scheduled end of the Term for such Aircraft for any reason, this Lease shall not terminate with respect to such Aircraft
but shall continue in full force and effect until such return, provided that Lessee shall pay on demand, as rent for each day such delay and this Lease shall continue, an amount equal to the applicable daily rent for such Aircraft set forth on
Exhibit E, and in the meantime Lessee shall not operate such Aircraft (other than for maintenance, repair or return purposes). To the extent that the return of an Aircraft is delayed as a result of the Aircraft not being in the condition specified
under this Section 5, so long as the Lessee (i) is diligently and in good faith undertaking to cause such Aircraft to be in such specified condition, (ii) is paying the daily rent for such Aircraft payable hereunder and otherwise complying with the
requirements of this Section 5(d) and (iii) returns the Aircraft to the Lessor in such specified condition and otherwise in compliance with the terms of this Lease within 30 days of the scheduled end of the Term for such Aircraft, no Lease Event of
Default under Section 14(e) shall be deemed to have occurred as a result of such delay. Notwithstanding the preceding sentences, the Lessee does not have the right to retain any Aircraft after the end of the Term for such Aircraft. 
  
 (e) Special Markings. Lessee shall, at Lessee’s cost, remove from
the interior and the exterior of each Aircraft all insignias and other distinctive (not including the basic color scheme of such Aircraft) markings of Lessee or any sublessee and repaint and/or repair in a professional and workmanlike manner to
match the surrounding area. 
  

 5 

 (f) Modification Kits. Lessor may request and Lessee shall provide any modification kits or other
such items that are on order for any Aircraft and Lessor shall reimburse Lessee for the cost of such kits if such modification kits or other such items are not part of the return condition required pursuant to this Section 5. Lessee shall be
responsible for ordering all no charge kits, and if not incorporated, shall return them to Lessor with the Aircraft at no charge to Lessor. 
  
 (g) Maintenance Condition Generally. Upon return of any Aircraft to Lessor hereunder, and at Lessee’s expense: 
  
 (i) Certification. The Aircraft shall have a valid
and effective Certificate of Airworthiness issued by the FAA, and shall be returned in compliance with Lessee’s approved maintenance programs for Airframe, engines, components, and assemblies, and shall be in full compliance with the provisions
of Part 121 of US Federal Aviation Regulations and US regulations applicable to the Aircraft’s operations for noise, emissions, environment, and be eligible for continued registration and operation in the United States under the provisions of
such Part 121, with no restrictions or waivers. The Aircraft and records will also be in condition to meet the export requirements of the FAA. 
  
 (ii) Overhaul and Repair. All Parts (including the Engines, and landing gear) according to Lessee’s FAA approved maintenance
program, shall be documented with work orders, etc., to have been repaired or overhauled using approved data by certified repair stations approved by the FAA. All overhaul and repair procedures shall have met all FAA requirements under the
Lessee’s FAA approved maintenance program. 
  
 (iii) Repairs. All repairs as defined in the structural repair manual that were performed since the aircraft delivery and that then exist on the Aircraft shall be permanent and conform to Manufacturer’s structure repair manual
and the Engine Manufacturer’s maintenance manual and shall have FAA approval if required. All repairs not covered by the Manufacturer’s structural repair manual or Engine Manufacturer’s maintenance manual shall be made permanent with
complete, approved data and documentation to verify and substantiate their certification and methods of compliance and shall have FAA approval. Lessee shall keep and maintain a complete summary listing of all approved repairs performed including an
airframe map showing the location of each repair in accordance with FAA requirements. Notwithstanding the above, to the extent that the fair market value of the Aircraft has been reduced by the requirement to make repairs (regardless of whether or
not such repairs are approved), then Lessee shall pay to Lessor the amount of such reduction. 
  
 (iv) Modifications. All modifications to the Aircraft shall be in accordance with FAA-approved data (or be removed (with
appropriate repairs to the Aircraft to be made by Lessee), if requested by Lessor). All such modifications shall be provided with complete data and documentation to substantiate their certification, approval, and methods of compliance. Lessee shall
keep and maintain a complete summary listing of all modifications performed. 
  

 6 

 (v) Airworthiness Directives and Mandatory Regulations. All FAA airworthiness
directives, US Federal Aviation Regulations and manufacturer’s alert and mandatory service bulletins applicable to the Aircraft (including its systems and components) requiring compliance or terminating compliance on or prior to the expiration
of the Term shall be fully accomplished in compliance with the issuing company or agency’s specific instructions without regard to any waiver or operator exemptions delaying compliance with such FAA airworthiness directives or US Federal
Aviation Regulations or manufacturer’s alert service bulletins. In addition, all FAA airworthiness directives, US Federal Aviation Regulations and manufacturer’s alert service bulletins which require terminating compliance to be completed
within 12 months (or 3,000 hours) following lease termination shall be accomplished without regard to any waiver or operator exemptions delaying compliance with such FAA air-worthiness directives or US Federal Aviation Regulations or
manufacturer’s alert service bulletins. The Lessee shall provide a current and accurate status report and all hard copy records evidencing when accomplished, times in cycles, and method of accomplishment with the appropriate signatures or
stamps. 
  
 (vi) Records. (1) All records
as required under this Section 5 and all those necessary and required by the FAA under FAR Part 121 (or FAR’s as amended) and Exhibit C—Aircraft Documentation, shall be delivered with the Aircraft to the delivery point as contemplated
herein. Lessee shall retain all required hard copy records in an organized fashion. In no event will Lessee destroy or dispose of any hard copy records which are pertinent to the Aircraft at time of return. These required records shall be for the
Aircraft, Airframe, Engines, Parts, and at a minimum shall include the last completed maintenance checks, maintenance review board significant structural inspections sampling program (if applicable), aging aircraft and corrosion control status,
repairs, scheduled inspections and functional tests, and overhauls performed to Lessee’s approved maintenance program. If Lessee determines that any hard copy records are no longer required by Lessee, Lessee will send such records to Lessor.
Lessee will not allow any third party or maintenance supplier to hold records on behalf of the Lessee. 
  
 (2) All Parts identified with safe-life, hard time limits shall be provided with part number, serial number, their service histories,
accumulated cycles and flight hours, safe-life, hard time limits and remaining service lives on a separate listing, and shall have hard copy documentation providing full traceability (e.g., log entries, work cards, shop history records) to verify
their service histories. Computerized records may be provided if such computer records have been approved by the FAA and such approval maintains compliance with the export requirements of the FAA. 
  
 (3) All components and assemblies which are identified on
the maintenance records by part numbers and/or serial numbers other than the Manufacturer’s shall be provided with two way cross-reference listing. 
  
 (4) All documentation, flight records, and maintenance records as specified by this contract and as specified by Federal Aviation
Regulations Section 121, (or FAR’s as amended), and Exhibit C—Aircraft Documentation, and which normally accompany the transfer of an aircraft or engine shall be delivered to Lessor with 
  

 7 

 the Aircraft. In the event of missing or incomplete records, Lessee shall accomplish the tasks necessary
to produce such complete records in accordance with its FAA-approved maintenance programs prior to return of the Aircraft. 
  
 (5) All documentation and records shall be in English and shall be made available to Lessor for review, in a mutually agreed upon
location, at least 30 Business Days before the date that the Aircraft is required to be returned to Lessor. All documentation and records shall be signed by the head of Lessee’s quality control/quality assurance department certifying that the
data and information contained therein is true, correct and complete. 
  
 (6) Lessee shall provide documentation data, drawings, records and manuals described in clauses (a) through (d) above, regardless whether Lessee considers such information proprietary. Said information shall be kept
confidential to the full extent practicable by Lessor and shall be used solely for reference for bridging the Aircraft to the next operator upon termination or expiration of the Lease. 
  
 (7) Lessee shall provide Lessor with a revised equipment list which identifies the changes and revisions to
the systems and installations of the Aircraft since delivery to Lessee. 
  
 (vii) Return Status. At the expiration of the Term for such Aircraft, such Aircraft shall be in the same operating order, repair and condition as originally delivered to Lessee, ordinary wear and tear excepted,
and shall have been maintained in a non-discriminatory manner with all other Boeing 767-200 aircraft in Lessee’s fleet and shall be in a sufficient condition to clear the Aircraft for 12 months of operation before a scheduled “C”
check. Any exemptions granted by the FAA to the Aircraft or records with respect to the FAR’s shall be corrected to be in compliance with the full intent of the appropriate FAR’s. 
  
 (1) The Aircraft shall be returned in compliance with
Lessee’s FAA approved maintenance program, and shall have had its next scheduled phase “C” check which zeros out any “A” check or “B” check tasks as applicable, inclusive of any “out of phase” items
requiring action and due before the next “C” check performed within 30 days prior to return and shall have at least 25 percent of the Manufacturer’s recommended or Lessee’s FAA approved maintenance program (based on hours,
cycles, or calendar time as applicable) remaining to the next scheduled “D” check, heavy maintenance visit or other designations as may be applicable under Lessee’s FAA approved maintenance program. 
  
 (2) At the expiration of the applicable Term each Engine
shall have not more than 4,000 engine flight hours since the last refurbishment. The life limited parts within each Engine shall have no less than 2,500 cycles remaining until the replacement. Further, each Engine shall pass a complete video
borescope inspection based on the Boeing maintenance manual limits without imposed reduced inspection interval (performed by a mutually acceptable independent qualified inspector). Each Engine shall successfully complete an on-wing power assurance
run in accordance with 
  

 8 

 the Boeing maintenance manual limits (ref. 71-00-00 as amended from time to time). Each Engine shall also
have Engine Condition Monitoring (ECM) data for the last ninety (90) engine operational days (or since last restoration) that meets the General Electric engine condition monitoring program for the CF6-80A engines. Engine vibration levels must be
within the Boeing maintenance manual limits. Oil consumption on each Engine must be within the Boeing maintenance manual limits and there shall be no external oil leaks. Magnetic chip detectors condition shall be within Boeing maintenance manual
limits without imposing reduced inspection interval. No Engine shall have a condition which, per the Boeing maintenance manual, shall impose a reduced inspection interval. The inspections, runs and checks required by this Section 5(g)(vii)(2) shall
be conducted during the Lessor’s inspection under Section 5(g)(x) below and performed in accordance with the Manufacturer’s maintenance program, except to the extent otherwise provided in this Section 5. 
  
 In the event an Engine fails to meet the foregoing delivery
conditions, at the Lessee’s option, the Lessee may convey to the Lessor, as a replacement for such Engine, title to a Replacement Engine. Each such Replacement Engine shall be free of all Liens and, in respect of an installed Replacement
Engine, shall meet the delivery conditions and build standard for installed engines set forth above and, in respect of an off-wing Replacement Engine, shall meet the Lessee’s build standard for installed engines set forth above and complete a
reasonably acceptable performance test cell run immediately before delivery. 
  
 The auxiliary power unit (“APU”) shall be in serviceable condition with the lower life limited parts not having less than 2,500 cycles remaining to the next scheduled removal in accordance with the
Manufacturer’s time limitation manual. The APU shall also have successfully completed an on-wing health check per the Manufacturer’s maintenance program and a complete video borescope inspection without reduced inspection intervals.

  
 (3) All other components, equipment, landing
gear, APU, tires, brakes, appliances, appurtenances and other devices or units which are time, cycle, calendar or wear limit controlled normally in service during the operation of the Aircraft shall have 25 percent of the hours/cycles/calendar time
(whichever is most limiting) remaining until the next anticipated overhaul or inspection requiring removal based upon Lessee’s FAA approved maintenance program for such items. Items of the Aircraft, which, despite the use of progressive or
“on condition” maintenance programs, are maintained under time, cycle or calendar related standards, shall be returned at the end of the Term for such Aircraft in a “quarter-time” or better condition. 
  
 (4) The return condition of (1), (2) and (3) above is to be
documented by Lessor and Lessee by completing and executing on the date of return a redelivery receipt in a form acceptable to Lessor. 
  
 (5) Should any items in (1) or (2) above fall below the return condition requirements for hours/cycles/calendar requirements, Lessee
shall cause such conditions to be met (either by replacing such part with a part that meets the requirements 
  

 9 

 for return or by overhauling such part) or provided such items have at least 12 months, or if such item
has a “quarter-life” less than 12 months then such quarter-life, remaining to that non-conforming item’s next schedule removal or inspection, pay Lessor 100 percent of the full cost to return such items to the required conditions as
determined in paragraph (h) of this Section 5. 
  
 (6) Should any items in (3) above fall below the return condition therein required, Lessee shall cause such conditions to be met (either by replacing such part with a part that meets the requirements for return or by overhauling such part),
pay the full cost to return such items to the required conditions as determined in paragraph (h) of this Section 5. 
  
 (viii) Deferred Maintenance. There shall be no deferred maintenance items, scheduled or unscheduled, or watch items, or carryovers
or items requiring repetitive inspections against the Aircraft, including those identified in pre-delivery inspections or test flights that are outside of maintenance manual limits. 
  
 (ix) Corrosion, Aging Aircraft, SSI and SID. Lessee shall provide complete details of its corrosion
control, aging aircraft, SSI and SID programs as well as a summary of specific corrosion correction, aging aircraft, SSI and SID inspections of the Aircraft in accordance with Lessee’s approved maintenance program. This summary shall include
Lessee’s incorporation status relative to all recommended corrective and preventative actions. Lessee shall provide a cross reference for each task of the corrosion control, SSI, SID and aging aircraft programs to the Manufacturer’s
documents if Lessee utilizes different identifiers. To Lessee’s knowledge, but subject to Lessor’s rights of inspection, there shall be no untreated or uncorrected corrosion remaining on the Aircraft, including within the fuel tanks.

  
 (x) Pre-Return Inspections. At such
time as the pre-return “C” check required pursuant to Section 5(g)(vii)(1) is performed prior to the redelivery of the Aircraft, Lessee shall make the Aircraft and personnel available to Lessor for a detailed inspection of the Aircraft and
records in order to verify that the condition of the Aircraft and records comply with all requirements of the Lease. Lessee shall provide the Lessor and, so long as the Aircraft are subject to the Lien of the Finance Lease, the Finance Lessor 30
days’ prior notice of the scheduled date of any such pre-return “C” check. During the “C” check immediately prior to the redelivery of the Aircraft, Lessee shall make the Aircraft and personnel available to Lessor to
participate in an inspection which shall include access to all compartments, bays, removal of any panels normally opened during such scheduled maintenance event, ground functional checks of all systems, inspections and operational test flight(s) of
the Aircraft, conducted by Lessee using the Manufacturer’s used aircraft recommended test flight procedures. Lessor shall be permitted to have two representatives conduct the final inspection and to be direct observers of the test flight. The
cost of the final inspection, including the operational test flight, shall be paid by Lessee. In the event the operational test flight reveals any items or conditions that would prevent the Aircraft from meeting its return conditions, Lessor shall
not be deemed to have taken delivery of the Aircraft until such time as all identified items or conditions 
  

 10 

 have been rectified. All discrepancies discovered during such inspection shall be permanently repaired by
the Lessee and at the Lessee’s cost. 
  
 (xi) Correction of Discrepancies. Discrepancies which exist per the terms of this Section 5 and are noted during the pre-delivery inspections and acceptance flight shall be permanently repaired at Lessee’s expense. If Lessor
determines that repairs, modifications or other work items are required to cause the Aircraft to comply with the return requirements provided herein, including, without limitation, any maintenance required so that the Engines or other engines to be
returned will meet all engine parameters and trends specified by the Manufacturer, then Lessee shall cause such repairs and other work items to be commenced and completed without waiving any rights or remedies Lessor may have. 
  
 (xii) General Appearance. The Aircraft shall be
clean, cosmetically acceptable and complete, shall function and perform in accordance with Lessee’s FAA-approved maintenance program, and shall be in suitable condition to be placed immediately into scheduled revenue airline operations. This
shall include but not be limited to the following: 
  
 (1) Fuselage, Windows, and Doors. The fuselage shall be free of major dents and abrasions which are out of manual limits, scab patches which are temporary or out of manual limits, and loose or pulled rivets (normal wear and tear
excepted); windows shall be free of contamination, blemishes, distortion, delaminations and crazing and shall be properly sealed (normal wear and tear expected); and doors shall be free moving, correctly rigged, and fitted with serviceable seals;
and all placards, decals or marking shall be installed and legible. 
  
 (2) Wings and Empennage. All leading edges shall be free from damage out of manual limits; all control surfaces leading edges shall be smooth and free of erosion, to the same standard as on Lessee’s other
aircraft; unpainted cowlings and fairing shall be smooth and free of erosion to the same standard as on Lessee’s other aircraft; all wings internal fuel tanks, and fuel plumbing shall be free of fuel leaks; all flight controls shall be properly
balanced, and all external placards and markings shall be installed and legible. In addition, all items in this subparagraph (2) shall at all times be within maintenance manual limits. 
  
 (3) [reserved]. 
  
 (4) Cockpit. All placards, decals and markings shall be clean, secure, and legible, all fairing
panels shall be substantially free of stains and cracks, and shall be clean, secure, and repainted as necessary; all floor coverings shall be clean and effectively sealed and secured; all seat covers shall be in good condition and clean and shall
conform to FAA fire resistance burn requirements and crash worthiness regulations and be properly marked; and all seats shall be fully serviceable and in good condition. 
  
 (5) Cargo Compartments. All panels shall be in good condition; all nets shall be in good condition;
all compartments shall meet current FAA 
  

 11 

 fire regulations and SRM; all doors shall be rigged and function properly; and the compartments shall be
clean. 
  
 (6) Landing Gear and Wheel
Wells. The landing gear and all wheel wells shall be clean, free of leaks, and repaired as necessary; and all placards, decals and markings shall be clean, secure, and legible. 
  
 (7) Fuel. The Aircraft will be returned with same fuel quantity initially delivered on the Delivery
Date. 
  
 (h) Equivalency Charges—Maintenance of Engines,
Landing Gear and Components. If any Engine, landing gear, component, part, or assembly time/cycle/life requirement set forth in paragraph (vii) of Section 5(g) hereof is not met, then Lessee shall pay to Lessor on an After-Tax Basis with respect
to the Airframe and each Engine, landing gear, component, part, or assembly for which such requirement is not met the Dollar amount equal to the product of (1) the fraction equal to (x) the time (or cycles or calendar time) accumulated on such item,
minus (y) the time (or cycles or calendar time) allowable under such paragraph (vii) divided by (z) the total time (or cycles or calendar time) on such item and (2) the then-current rates charged by an FAA-approved repair contractor for such
maintenance, repair, modification, overhaul or replacement. 
  

	 EXAMPLE:
	  	 	  	 
	 Part = computer
	  	 	  	 
	 X (Total time used)
	  	=	  	8,500 hours
	 Y (Allowable usage)
	  	=	  	7,500 hours
	 Z (Part’s full limit)
	  	=	  	10,000 hours
	 $Z (Part’s overhaul cost)
	  	=	  	$5,000.00
	 P (Amount owed by Lessee)
	  	=	  	$500.00
	 = [ ((X—Y)/ Z) * $Z ] = P

	 = [ ((8,500—7,500)/10,000) * $5,000.00] = $ 500.00

  
 (i) Lessor
Obligation. Lessee shall not be entitled to any adjustment or to be reimbursed or in any way compensated if any Airframe, any Engine or any Part is returned to Lessor in a better condition than as required under this Section 5. 
  
 (j) Rights Accruing to Lessor Upon Termination. Any and all noise
credits, base level rights or any other types of rights which accrue with respect to any Aircraft shall be deemed to be transferred to and to have accrued to the benefit of Lessor upon the expiration of this Lease for any reason. 
  
 (k) Storage. Upon any expiration or termination of this Lease for an
Aircraft, at the written request of the Lessor, received by the Lessee 10 days in advance of the date for redelivery to Lessor hereunder, the Lessee will arrange, or will cause to be arranged, secured ramp storage facilities and storage maintenance
in accordance with the Manufacturer’s program or approved Lessee’s program for such Aircraft beyond the Term at an appropriate storage area for such Aircraft for a period not exceeding 90 days at Lessee’s risk and expense. 

 

 12 

 Notwithstanding other provisions of this Section 5, in the event of a Lease Event of Default all storage, maintenance,
insurance costs and risk of loss for the items of equipment shall be for the account of Lessee. 
  
 (l) Maintenance at Lessor’s Request. Upon receipt of written notice from the Lessor not less than 30 days prior to any expiration or
termination of this Lease as to an Aircraft, the Lessee agrees to perform maintenance to applicable Airframe and/or the Engines. Such maintenance shall be done in the same manner and with the same care as used by the Lessee with similar airframes
and engines of its own and shall be completed as promptly as possible after any such termination of this Lease as to such Airframe or Engines, and the Lessor shall reimburse the Lessee in an amount equal to the Lessee’s standard contract rates,
if any, therefore, or if such maintenance is performed by someone other than the Lessee, the actual amount paid therefore by the Lessee. 
  
 (m) Aid in Disposition. Lessee agrees that during the last 365 days of the Term for an Aircraft (and during the storage period set forth in herein)
it will cooperate in all reasonable respects with the efforts of Lessor and the remarketing agent under the Management Agreement to lease or sell the Aircraft, including, without limitation, permitting potential lessees or purchasers to inspect the
Aircraft and the records relating thereto (i) at any time during scheduled maintenance and during the pre-return “C” check required under Section 5(g)(vii)(1), and (ii) at any other reasonable times and upon reasonable notice,
provided that in the case of any inspection pursuant to clause (ii) above, Lessee shall not be required for such purpose to interfere with the use of such Aircraft or incur out-of-pocket expenses for which it is not reimbursed. 
  
 Section 6. Liens. The Lessee will not directly or indirectly create,
incur, assume or suffer to exist any Lien on or with respect to any Airframe or any Engine or any Part, title thereto or any interest therein or in this Lease, except Permitted Liens. The Lessee will promptly, at its own expense, take such action as
may be necessary to discharge any Lien that is not a Permitted Lien if the same shall exist at any time. 
  
 Section 7. Registration, Maintenance and Operation; Possession; Insignia. (a) Registration and Maintenance. The Lessee, at its own cost and
expense, shall: 
  
 (i) forthwith upon delivery
cause each Aircraft to be duly registered and at all times thereafter to remain duly registered, in the name of the Lessor as the owner thereof under the Federal Aviation Act and shall not take any action or fail to take any actions which would
cause such registration not to remain effective during the Term for such Aircraft; 
  
 (ii) service, repair, maintain, overhaul and test each Airframe and each Engine (and each engine which is not an Engine but is installed
on an Airframe) or cause the same to be done in accordance with Lessee’s maintenance program approved by the FAA (and in compliance with all airworthiness directives thereof, except to the extent compliance would not be required on return of an
Aircraft at the expiration of the Term for such Aircraft), and shall keep or cause to be kept each Airframe and each Engine (and each such other engine) (i) in as good operating condition and repair and appearance as 
  

 13 

 then delivered to the Lessee by the Lessor hereunder, ordinary wear and tear excepted, (ii) in such
operating condition as may be necessary to enable the airworthiness certification of the Aircraft to be maintained in good standing at all times under the applicable rules and regulations of the FAA and the FAA-approved maintenance program of the
Lessee and (iii) in good operating condition in accordance with all mandatory service bulletins and airworthiness directives of the United States Government and in substantially the same manner as the Lessee services, repairs, maintains, overhauls
and tests similar aircraft operated by the Lessee in similar circumstances and in accordance with the Lessee’s maintenance program approved by the FAA and without discriminating against the Aircraft with respect to its maintenance, repair,
condition or overhaul status based upon the existence of this Lease or the Finance Lease; provided that if all Boeing 767-200 aircraft (powered by engines of the same type as those with which the Airframes shall be equipped at the time of
grounding) have been grounded by the FAA, the Lessee shall not be required to maintain such certification of airworthiness; provided, further, that if the airworthiness certificate of any Aircraft shall be withdrawn, then, subject to
Section 10, so long as the Lessee is taking or causing to be taken all necessary action to correct promptly the condition which caused such withdrawal, no Lease Event of Default shall arise from such withdrawal; provided, further, that
nothing herein shall be deemed to prevent the Lessee from taking an Aircraft out of service for maintenance or modifications permitted hereunder or storage in accordance with applicable FAA requirements, as appropriate and sound practice for such
storage; 
  
 (iii) maintain or cause to be
maintained all records, logs and other materials required to be maintained in respect of the Aircraft by the FAA; and 
  
 (iv) promptly furnish or cause to be furnished to the Lessor such information as may be required to enable the Lessor to file any reports
required to be filed by the Lessor with any Governmental Authority because of the Lessor’s ownership of the Aircraft. 
  
 (b) Operation. 
  
 The Lessee agrees not to (or permit any permitted sublessee to) (i) operate any Airframe or any Engine or permit any Airframe or any Engine to be operated
during the Term except in commercial or other operations on the Lessee’s (or such sublessee’s) regularly scheduled or charter routes for which Lessee (or sublessee) is duly authorized by the FAA; (ii) use or suffer or permit any Airframe
or any Engine to be used for a purpose for which it is not designed or reasonably suitable or use any Aircraft other than primarily in freight transportation or (iii) operate, use or locate any Airframe or any Engine, or suffer any Airframe or any
Engine to be operated, used or located (A) in any area excluded from coverage by any insurance required by the terms of Section 11, except in the case of a requisition by the United States of America with an indemnity against substantially the same
risks and for at least the amounts of the insurance required by Section 11 covering such area, or (B) in any recognized or, in the Lessee’s reasonable judgment, threatened area of hostilities unless, notwithstanding the provisions of Section
11(b), covered by war risk and allied perils insurance in an amount at least equal to 110% of the highest Stipulated Loss Value then or thereafter scheduled, or in either case unless such Airframe or such Engine is operated or used under contract
with the government of 
  

 14 

 the United States or any agency or instrumentality thereof (backed by the full faith and credit of the United States
Government) under which contract such government assumes liability for substantially the same risks in at least the same amounts as would be covered by such insurance. The Lessee shall not permit any Airframe or any Engine to be used, operated,
maintained, serviced, overhauled or repaired (x) in violation of any Applicable Law or in violation of any airworthiness certificate, license or registration relating to such Aircraft or such Engines issued by any competent Governmental Authority,
except to the extent the validity thereof is being contested in good faith (except for mandatory grounding orders, the good faith contest of which does not permit the Lessee to operate such Aircraft during such contest) and by appropriate
proceedings which do not involve a material danger of the sale, forfeiture or loss of such Airframe or such Engine or a material danger of the loss of the Finance Lessor’s Lien on such Airframe or such Engine, or (y) in any manner whatsoever
which may knowingly render it liable to condemnation, destruction, seizure, or confiscation by any authority or which gives rise to any material risk of criminal liability on the Lessor, the Finance Lessor or any Owner Participant. 
  
 (c) Possession. The Lessee shall not, unless each of the Lessor and
the Finance Lessor, each in its absolute discretion, shall have given its prior written consent thereto, in any manner deliver, transfer or relinquish possession of any Airframe or any Engine, pursuant to a sublease or otherwise, or install any
Engine, or permit any Engine to be installed, on any airframe other than an Airframe; provided, however, that, so long as no Specified Default or Lease Event of Default shall have occurred and be continuing, the Lessee shall be in
compliance with Section 11 and all FAA approvals required for such purposes have been obtained and are in full force and effect, the Lessee may without the prior written consent of the Lessor or the Finance Lessor: 
  
 (i) deliver possession of any Airframe or any Engine or any
Part to the manufacturer thereof or to any qualified organization for testing, service, repair, maintenance, overhaul work or other similar purposes or for alterations or modifications or additions required or permitted by the terms of this Lease;

  
 (ii) subject any Engine to normal interchange
or pooling agreements or arrangements which are applicable to other similar property owned by or leased to the Lessee, are customary in the airline industry and are entered into by the Lessee in the ordinary course of its airline business with a
Certificated Air Carrier which is not then subject to any bankruptcy, reorganization or similar proceeding and which recognizes and gives effect to the rights and interests of Lessor and the Finance Lessor in and with respect to such Engine;
provided that (A) no such agreement or arrangement shall under any circumstances result in, contemplate or require the transfer of title to or change of registration of any Aircraft or any Airframe and (B) if the Lessor’s title to any
Engine shall be divested under any such agreement or arrangement, such divestiture shall be deemed to be an Event of Loss with respect to such Engine and the Lessee shall comply with Section 10(b) in respect thereof; 
  
 (iii) install an Engine on another airframe owned by the
Lessee free and clear of all Liens except (A) Permitted Liens referred to in clauses (d), (e), (f) and (g) of the definition thereof, (B) those which apply only to the engines (other than the Engines), appliances, parts, instruments, appurtenances,
accessories, furnishings and other 
  

 15 

 equipment (other than Parts) installed on such airframe, and (C) the rights of other air carriers under
interchange or pooling agreements or other arrangements customary in the airline industry which do not contemplate, permit or require the transfer of title to such airframe or engines installed thereon; 
  
 (iv) install an Engine on an airframe leased to the Lessee
or purchased by the Lessee subject to a conditional sale or other security agreement if such Engine shall not thereby become subject to the lien of such lease, conditional sale or other security agreement, provided that (x) the Lessee shall have
received from the lessor, conditional vendor or secured party in respect of such airframe an effective and enforceable written agreement whereby such Person agrees that such Person will not acquire (or the lease, conditional sale agreement or other
security agreement expressly provides that such Person will not acquire) any right, title or interest in such Engine notwithstanding the installation thereof, and (y) such airframe shall be free and clear of all Liens except the rights of the
lessor, conditional vendor or secured party in respect of such airframe and Liens of the type permitted by subparagraph (iii) above; 
  
 (v) install an Engine on an airframe owned by the Lessee, leased by the Lessee or purchased by the Lessee subject to a conditional sale or
other security agreement under circumstances where neither clause (iii) nor clause (iv) above is applicable, provided that in the event of any such installation such Engine shall be deemed to have suffered an Event of Loss and the Lessee
shall comply with Section 10(b); 
  
 (vi)
transfer possession of any Airframe or any Engine to the United States of America or any instrumentality thereof pursuant to the Civil Reserve Air Fleet Program for any period that does not extent beyond the expiry of the Term so long as the Lessee
shall promptly notify the Lessor upon subjecting any Airframe or any Engine to such program and upon transferring possession of any Airframe or any Engine pursuant to such program; 
  
 (vii) transfer possession of any Airframe or any Engine to the United States of America, or to a foreign
government, when required by Applicable Law in the circumstances referred to in clause (f) of the definition of an Event of Loss (it being understood that nothing in this clause (vii) shall relieve the Lessee from its obligations under Section 10(a)
or (b), as the case may be, if such transfer becomes an Event of Loss); and 
  
 (viii) so long as no Lease Default shall have occurred and be continuing, sublease any Airframe, any Engine, or any Airframe and Engines or engines then installed on such Airframe (A) to any Approved Air Carrier, so
long as it is a Certificated Air Carrier, or (B) with the prior written consent of the Lessor, the Owner Participant and the Finance Lessor, to any other Person, provided that in either case, the Lessor, the Finance Lessor and the Owner
Participant receives at the time of such sublease an opinion of counsel to Lessee (such counsel to be satisfactory to the Lessor, the Finance Lessor and the Owner Participant) in form and substance satisfactory to the Lessor, the Finance Lessor and
the Owner Participant) that such sublease does not and will not 
  

 16 

 adversely affect such Person’s ownership interest or security interest in such Airframe and/or such
Engine and otherwise complies with the requirements set forth in this Section 7(c), including the matters provided below. 
  
 The following requirements shall be applicable to any sublease permitted under clause (viii) of the next preceding paragraph: 
  
 (i) prior to the commencement thereof notify the Lessor, the
Owner Participant and the Finance Lessor of the identity of the lessee and the term of such lease and shall provide a copy of such lease agreement to the Lessor, the Finance Lessor or any Owner Participant, upon request therefrom; 
  
 (ii) such sublease shall not be for a term (including
renewal options thereunder) that extends beyond the end of the Term for such Airframe and/or such Engine; 
  
 (iii) such sublease shall contain provisions that (A) such sublease is expressly subject and subordinate to all the terms of this Lease
and the Finance Lease, including the rights of the Lessor and the Finance Lessor to avoid such sublease in the exercise of their rights to repossession hereunder and thereunder, (B) expressly prevent the sublessee from entering into any further
sublease of any Airframe and/or any Engine the subject thereof, (C) require that such Airframe and/or such Engine be maintained and operated in accordance with the requirements of Section 7(a) and (b) hereof, (D) require the sublessee to comply with
the terms of Section 11 hereof, (E) permit the Lessee, the Lessor and the Finance Lessor to require the sublessee to report to the Lessee, the Lessor and the Finance Lessor the location of the subleased Airframe and/or Engine from time to time, and
(F) expressly prohibit any modification in the configuration of such Airframe and/or such Engine without the prior written consent of the Lessor, and, so long as this Lease is subject to the Lien of the Assignment Agreement, the Finance Lessor; and

  
 (iv) all the Lessee’s right, title and
interest in and to such sublease, including all rents and other payments of any kind made thereunder, and including the rights of the Lessee to make any election or to exercise any option or give any notice, consent, vote, or approval under or in
respect thereof or to accept any surrender of the Aircraft or any part thereof as well as any right powers or remedies on the part of the Lessee thereunder arising out any default thereunder, shall be assigned to, (i) so long as this Lease is
subject to the Lien of the Assignment Agreement, the Finance Lessor or (ii) otherwise, to the Lessor. 
  
 The Lessee shall pay all costs and expenses incurred in connection with any sublease or proposed sublease pursuant to this Section 7(c) (whether or not
such proposed sublease is actually entered into or consented to by the Lessor, the Finance Lessor or the Owner Participant) including, without limitation, (i) the fees and disbursements of counsel for the Owner Participant, the Lessor and the
Finance Lessor and (ii) all costs and expenses incurred in connection with any filings necessary in connection with such sublease to continue the security interest in the Airframe and/or Engine and Lease in favor of the Finance Lessor. 

 

 17 

 No pooling agreement, sublease or other relinquishment of possession of any Airframe or any Engine shall
affect in any way the registration of any Aircraft, discharge or diminish any of the Lessee’s obligations to the Lessor hereunder or constitute a waiver of the Lessor’s rights or remedies hereunder; provided, however, that
performance of any obligation of the Lessee hereunder by a permitted sublessee shall be deemed to be performance of such obligation by the Lessee hereunder, to the extent, but only to the extent, of such performance by such permitted sublessee.

  
 The rights of any transferee who receives possession by reason
of a transfer permitted by this Section 7(c) (other than by a transfer of an Engine which is deemed an Event of Loss and in respect of which Section 10(b) shall have been complied with) shall be subject and subordinate to all the terms of this Lease
and of the Finance Lease, and the Lessee shall remain primarily liable hereunder for the performance of all the terms of this Lease, and all the terms and conditions of this Lease and the other Operative Agreements shall remain in effect. No
transfer of possession otherwise in compliance with this Section 7(c) shall (x) result in any registration or re-registration of any Aircraft, any Airframe or any Engine or result in any change in the maintenance, operation or use thereof or (y)
permit any action not permitted to the Lessee hereunder. 
  
 The
Lessor agrees, for the benefit of the Lessee and for the benefit of any mortgagee or other holder of a security interest in any engine (other than an Engine) owned by the Lessee, any lessor of any engine (other than an Engine) leased to the Lessee
and any conditional vendor of any engine (other than an Engine) purchased by the Lessee subject to a conditional sale agreement or any other security agreement, that no interest shall be created hereunder in any engine so owned, leased or purchased
and that neither the Lessor nor its successors or assigns will acquire or claim, as against the Lessee or any such mortgagee, lessor or conditional vendor or other holder of a security interest or any successor or assignee of any thereof, any right,
title or interest in such engine as the result of such engine’s being installed on any Airframe; provided, however, that such agreement of the Lessor shall not be for the benefit of any lessor or secured party of any airframe
(other than an Airframe) leased to the Lessee or purchased by the Lessee subject to a conditional sale or other security agreement or for the benefit of any mortgagee of or any other holder of a security interest in an airframe owned by the Lessee,
unless such lessor, conditional vendor, other secured party or mortgagee has expressly agreed (which agreement may be contained in such lease, conditional sale or other security agreement or mortgage) that neither it nor its successors or assigns
will acquire, as against the Lessor, any right, title or interest in an Engine as a result of such Engine’s being installed on such airframe. 
  
 (d) Insignia. The Lessee agrees to affix and maintain in the cockpit of each Airframe adjacent to the airworthiness certificate therein and on each
Engine a metal nameplate bearing the inscription: “Wells Fargo Bank Northwest, National Association, as Owner Trustee, Owner and Lessor” and, so long as the Aircraft shall be subject to the Lien of the Finance Lease, the following
additional inscription: “subject to a security interest in favor of Mitsui & Co., Ltd. as Mortgagee” and to replace such nameplate to reflect any successor Lessor or successor to the Finance Lessor under the Finance Lease. 

 
 The Lessee will not allow the name of any Person other than the Lessor and
the Finance Lessor, or their respective successors or assigns, to be placed on any Airframe or any Engine as a 
  

 18 

 designation that might be interpreted as a claim of ownership or of any security interest therein, except that the Lessee
or any permitted sublessee may operate the Airframes and Engines in its livery, including its name and logo. 
  
 Section 8. Replacement of Parts; Pooling of Parts; Alterations; Modifications and Additions. (a) Replacement of Parts. The Lessee, at its
own cost and expense, will promptly replace all Parts that may from time to time be incorporated or installed in or attached to any Airframe or any Engine and that may from time to time become worn out, lost, stolen, destroyed, seized, confiscated,
damaged beyond repair or permanently rendered unfit for use for any reason whatsoever, except as otherwise provided in paragraph (c) below and except (without limiting the Lessee’s obligations under Section 10) as to Parts of an Airframe or an
Engine which has suffered an Event of Loss. In addition, the Lessee may, at its own cost and expense, remove in the ordinary course of maintenance, service, repair, overhaul or testing, any Parts, whether or not worn out, lost, stolen, destroyed,
seized, confiscated, damaged beyond repair or permanently rendered unfit for use; provided, however, that the Lessee, except as otherwise provided in paragraph (c) below, will, at its own cost and expense, replace such Parts as
promptly as practicable. All Replacement Parts shall be free and clear of all Liens (except for Permitted Liens), be in as good operating condition as, have a value, utility and remaining useful life at least equal to, and have the time since the
previous shop visit no greater than, the Parts replaced, assuming such replaced Parts were in the condition and repair required to be maintained by the terms hereof. All Parts at any time removed from any Airframe or any Engine shall remain the
property of the Lessor, no matter where located, until such time as such Parts shall be replaced by Parts that have been incorporated or installed in or attached to such Airframe or such Engine and that meet the requirements for replacement Parts
specified above. Immediately upon any Replacement Part’s becoming incorporated or installed in or attached to any Airframe or any Engine as above provided, without further act (subject only to Permitted Liens), (i) title to the replaced Part
shall thereupon vest in the Lessee, free and clear of all rights of the Lessor, and shall no loner be deemed a Part hereunder, (ii) title to such Replacement Part shall thereupon vest in the Lessor (subject only to Permitted Liens), and (iii) such
Replacement Part shall become subject to this Lease and be deemed part of such Airframe or such Engine for all purposes hereof to the same extent as the Parts originally incorporated or installed in or attached to such Airframe or such Engine.

  
 (b) Pooling of Parts. Any Part removed from an Airframe
or an Engine as provided in paragraph (a) above may be subjected by the Lessee to normal pooling arrangements customary in the airline industry with Persons described in clause (ii) of the first paragraph of Section 7(c) hereof and entered into in
the ordinary course of business; provided, however, that the Part replacing such removed Part shall be incorporated or installed in or attached to such Airframe or such Engine in accordance with such paragraph (a) promptly after the
removal of such removed Part. In addition, any Replacement Part when incorporated or installed in or attached to any Airframe or any Engine in accordance with such paragraph (a) may be owned by any third party subject to such a normal pooling
arrangement; provided, however, that the Lessee, at its expense, promptly thereafter, shall either (i) cause title to such Replacement Part to vest in the Lessor in accordance with such paragraph (a) by the Lessee’s acquiring
title thereto for the benefit of, and transferring such title to, the Lessor, free and clear of all Liens other than Permitted Liens, or (ii) replace such Replacement Part by incorporating or installing in or attaching to such Airframe or Engine a
further Replacement Part owned by the Lessee, free and 
  

 19 

 clear of all Liens other than Permitted Liens, and by causing title to such further Replacement Part to vest in the
Lessor in accordance with such paragraph (a). 
  
 (c)
Alterations, Modifications and Additions. The Lessee, at its own expense, shall make (or cause to be made) such alterations and modifications in and additions to the Airframes and the Engines as may be required from time to time by Applicable
Laws and the applicable rules, regulations and standards, and to maintain the Certificate of Airworthiness in the standard category for the Aircraft, regardless of upon whom such requirements are by their terms, nominally imposed, unless (x) the
failure to make such alteration, modification or addition shall not relate to safety features, shall not result in a decline in the value, utility or remaining useful life of the Aircraft and shall not subject the Lessor, the Finance Lessor or the
Owner Participant to criminal liability and (y) the Lessee shall be contesting, in good faith and by appropriate proceedings, the validity or application of such Applicable Law, rule, regulation or standard requiring such alteration, modification or
addition in any reasonable manner that does not involve any danger of the sale, forfeiture or loss of any Aircraft, or any interest therein, or adversely affect the Lessor, the Finance Lessor or the Owner Participant or subject the Lessor, the
Finance Lessor or the Owner Participant to any risk of civil or criminal penalty. In addition, the Lessee, at its own expense, may from time to time make such alterations and modifications of and additions to any Airframe and any Engine as the
Lessee may deem desirable in the proper conduct of its business; provided, however, that no such alteration, modification or addition shall diminish the overall value, utility or remaining useful life of such Airframe or such Engine
below the value, utility, condition, airworthiness or remaining useful life thereof immediately prior to such alteration, modification or addition, assuming such Airframe or such Engine were then of the value and utility and in the condition
required to be maintained by the terms of this Lease. So long as no Specified Default and no Lease Event of Default shall have occurred and be continuing, the Lessee may, at any time during the Lease Term, remove or suffer to be removed any Part
(for purposes of this paragraph (c), called a “Removable Part”) (i) that is in addition to, and not in replacement of or substitution for, any Part originally incorporated or installed or attached to an Airframe or an Engine at the time of
delivery thereof hereunder or any Part in replacement of or substitution for any such Part, (ii) which is not required to be incorporated or installed in or attached or added to such Airframe or such Engine pursuant to the terms of Section 7(a)
hereof or this Section 8 and (iii) that can be removed from such Airframe or such Engine without causing material damage to such Airframe or such Engine (provided that any damage caused by such removal must be promptly repaired by the Lessee) or
diminishing or impairing the value, utility, condition, airworthiness or remaining useful life that such Airframe or such Engine would have had at such time, had such alteration, modification or addition not occurred. Without limiting Lessee’s
right to remove Parts pursuant to the preceding sentence, no alteration, modification or addition under this paragraph (c) shall cause the Aircraft to be “limited use property” within the meaning of Section 5.02 of Rev. Proc. 2001-28,
2001-19 I.R.B. 1156. Title to all Parts incorporated or installed in or attached or added to any Airframe or any Engine as the result of alterations, modifications or additions under this paragraph (c) shall without further act vest in the Lessor
free and clear of any Liens except Permitted Liens and become subject to this Lease. Upon removal by the Lessee of any Removable Part as provided above, title thereto shall, without further act, vest in the Lessee, in “AS-IS, WHERE-IS”
condition and without warranty or recourse, free and clear of all rights of Lessor and Lessor Liens. Any Removable Part not removed by the Lessee as above provided prior to the return of an Airframe or an Engine to the Lessor hereunder shall remain
the property of the Lessor. 
  

 20 

 Section 9. Right of Voluntary Termination. Termination of Lease by Lessor. The Lessor, upon
not less than 180 days’ prior written notice to the Lessee, shall have the right at its option to terminate this Lease on the Renewal Term Termination Date. Except as provided in Section 15(b) of the Participation Agreement, the Lessee, at its
own expense, shall return each Aircraft on the Renewal Term Termination Date to the Lessor in accordance with the terms and conditions of Section 5 hereof. 
  
 Section 10. Loss, Destruction, Requisition, etc. (a) Event of Loss with Respect to an Aircraft. Upon the occurrence of an Event of Loss with
respect to any Airframe or any Airframe and the Engines and/or engines then installed thereon, the Lessee shall forthwith (and, in any event, within 10 days after such occurrence) give the Lessor written notice of such Event of Loss and shall, on
the Event of Loss Payment Date, pay to the Lessor an amount equal to the sum of (i) the Stipulated Loss Value determined as of the Event of Loss Payment Date, (ii) interest on the amount payable pursuant to clause (i) at the Floating Rate from and
including the Stipulated Loss Value Date as of which such amount was established to but excluding the Event of Loss Payment Date, (iii) the LIBOR Break Funding Amount, if any, and (iv) all other Rent then due and payable. 
  
 For purposes hereof. the term “Event of Loss Payment Date” shall
mean the earlier of (i) 10 days following the receipt by the Finance Lessor (so long as the Lease shall be subject to the Lien of the Assignment Agreement) or the Lessor of insurance proceeds in respect of such Event of Loss, and (ii) 90 days
following the occurrence of such Event of Loss. 
  
 In the event
of full compliance with the terms of the first paragraph of this Section 10(a), (1) the obligation of the Lessee to pay Basic Rent for such Aircraft payable on any Rent Payment Date after the Event of Loss Payment Date shall cease, (2) the Lease
Term for such Aircraft shall end and (3) the Lessor shall transfer to the Lessee, “AS-IS, WHERE-IS” and without recourse or warranty (except as to the absence of Lessor Liens), all the Lessor’s right, title and interest, if any, in
and to such Aircraft, all claims for damage to such Aircraft, if any, against third parties arising from the Event of Loss, and all rights to any insurance claims under all insurance maintained by the Lessee hereunder, except liability insurance.
Such transfer to the Lessee will not affect or limit in any way any obligations of the Lessee hereunder or under the any other Operative Agreement not specifically discharged by such compliance. 
  
 Nothing in this Section 10(a) shall be deemed to relieve Lessee of its
obligation to pay Rent prior to the date on which the Stipulated Loss Value and all other amounts due hereunder and other the other Operative Agreements have been paid in full. 
  
 (b) Event of Loss with Respect to an Engine. Upon the occurrence of an Event of Loss with respect to an Engine under
circumstances in which there shall not have occurred an Event of Loss with respect to an Airframe, the Lessee shall forthwith (and in any event within 10 days of such occurrence) give the Lessor written notice thereof and shall, within 60 days of
the occurrence of such Event of Loss, duly convey to the Lessor, as replacement for the Engine with respect to which such Event of Loss shall have occurred, title to another General Electric model CF6-80A engine (or engine of the same manufacturer
of the same or an improved model and suitable for installation and use on such Airframe (provided, that such engine shall also be of the same make and model as the other Engine and, if different, the other engine then 
  

 21 

 installed on such Airframe) (a “Replacement Engine”)) owned by the Lessee free and clear of all Liens other
than Permitted Liens and having a value, utility and remaining useful life at least equal to, and being in as good an operating condition and state of maintenance as, the Engine with respect to which such Event of Loss shall have occurred, but, in
any event, of no worse value, utility and remaining useful life and in no worse condition and repair as required by the terns hereof immediately prior to the occurrence of such Event of Loss. Prior to or at the time of any such conveyance, the
Lessee, at its own expense, will (i) furnish the Lessor with a full warranty bill of sale, in form and substance reasonably satisfactory to the Lessor, with respect to such Replacement Engine, (ii) cause a supplement hereto, in form and substance
satisfactory to the Lessor, to be duly executed by the Lessee and recorded pursuant to the Federal Aviation Act, (iii) furnish the Lessor with such evidence of compliance with the insurance provisions of Section 11 hereof with respect to such
Replacement Engine as the Lessor may reasonably request, (iv) furnish the Lessor with an Opinion of Counsel (and such other evidence of title as the Lessor may reasonably request) to the effect that, upon such conveyance, the Lessor will acquire
good title to such Replacement Engine and that it will be leased hereunder to the same extent as the Engine replaced thereby, (v) furnish to the Lessor a certificate from the Lessee satisfactory to the Owner Participant and the Finance Lessor
confirming that each of the conditions specified herein as to the value, utility, remaining useful life, operating condition and state of maintenance has been satisfied, and (vi) (whether or not the Finance Lease shall have been discharged and
whether or not this Lease shall remain subject to the Lien of the Assignment Agreement) furnish the Lessor with the documents and instruments referred to in clauses (2), (3) and (4) of Section 10(c) of the Finance Lease. Upon full compliance by the
Lessee with the terms of this paragraph (b), the Lessor will comply with the provisions of Sections 10(b), (c) and (d) of the Finance Lease and transfer to the Lessee, “AS-IS, WHERE-IS” and without recourse or warranty (except as to the
absence of Lessor Liens), all the Lessor’s right, title and interest, if any, in and to the Engine with respect to which such Event of Loss shall have occurred, all claims for damage to such Engine, if any, against third parties to any
insurance claims under all insurance maintained by the Lessee hereunder, as to such Engine except liability insurance. For all purposes hereof, each such Replacement Engine shall, after such conveyance, be deemed part of the property leased
hereunder, shall be deemed an “Engine” as defined herein and shall be deemed part of the same Aircraft as was the Engine replaced thereby. No Event of Loss with respect to an Engine under the circumstances contemplated by the terns of this
paragraph (b) shall result in any reduction of Basic Rent. 
  
 (c)
Application of Payments from Governmental Authorities for Requisition Constituting an Event of Loss. Any payments (other than insurance proceeds the application of which is provided for in Section 11 hereof) received at any time by the Lessor
or the Lessee from any Governmental Authority or other Person with respect to an Event of Loss shall be paid over to, or retained by, the Finance Lessor or, if the Finance Lease shall have been discharged, the Lessor, as security for the
Lessee’s obligations hereunder, and applied as follows: 
  
 (i) in the case of such payments received with respect to an Airframe (and any Engine or engines then installed thereon), after reimbursement of the Lessor and the Finance Lessor for costs and expenses incurred in
connection with such Event of Loss and all other Rent then due, so much of such payments remaining, as shall not exceed the Stipulated Loss Value required to be paid by the Lessee pursuant to paragraph (a) of this Section 10, shall be applied in
reduction of the Lessee’s obligation to pay such Stipulated 
  

 22 

 Loss Value, if not already paid by the Lessee, or, if already paid by the Lessee, shall be applied to
reimburse the Lessee for its payment of such Stipulated Loss Value, and the balance shall be paid to or retained by Lessee to the extent it can demonstrate, to the satisfaction of the Lessor, that it is attributable to the interest of the Lessee in
such Aircraft under the Lease and the balance, if any, of such payments remaining thereafter will be paid over to, or retained by, the Lessor subject to the applicable provisions of the Finance Lease; and 
  
 (ii) if such payments shall be received with respect to an
Engine under circumstances contemplated by Section 10(b) hereof, so much of such payments remaining after reimbursement of the Lessor and the Finance Lessor for costs and expenses incurred in connection with such Event of Loss and all other Rent
then due, shall be paid over to, or retained by, the Lessee; provided, however, that the Lessee shall have fully performed, or concurrently therewith shall fully perform, the terms of Section 10(b) with respect to the Event of Loss for
which such payments are made. 
  
 (d) Requisition for Use.
In the event of a requisition for use by any government, so long as it does not constitute an Event of Loss, of an Airframe (with or without the Engines or engines installed on such Airframe) during the Lease Term, the Lessee shall promptly notify
the Lessor of such requisition and all of the Lessee’s obligations under this Lease shall continue to the same extent as if such requisition had not occurred except to the extent that the performance or observance of any obligation by the
Lessee shall have been prevented or delayed by such requisition; provided, however, that the Lessee’s obligations for the payment of money and under Section 11 hereof (except while an indemnity by the government of the United
States of the scope referred to in Section 11 (b) shall be in effect) shall not be reduced or delayed by such requisition. Any payments received by the Lessor or the Lessee from such government with respect to such requisition of use shall after
reimbursement of the Lessor and the Finance Lessor for costs and expenses incurred in connection with such requisition and all other Rent then due, shall be paid over to, or retained by, the Lessee. In the event of an Event of Loss of an Engine
resulting from the requisition for use by a government of such Engine (but not an Airframe), the Lessee shall replace such Engine hereunder by complying with the terms of Section 10(b) and after such replacement any payments received by the Lessor
or the Lessee from such government with respect to such requisition shall be paid over to, or retained by, the Lessee. 
  
 (e) Application of Payments During Existence of Lease Event of Default. Any amount referred to in paragraph (c) or (d) of this Section 10 that is
payable to the Lessee shall not be paid to the Lessee if at the time of such payment a Specified Default or a Lease Event of Default shall have occurred and be continuing, but shall be held by the Finance Lessor subject to the Finance Lease or, if
the Finance Lease shall have been discharged, by the Lessor as security for the obligations of the Lessee under this Lease and the other Operative Agreements and at such time as there shall not be continuing any such Specified Default or Lease Event
of Default such amount shall, to the extent not applied to satisfy the obligations of the Lessee, be paid to the Lessee. 
  
 Section 11. Insurance. (a) Public Liability and Property Damage Insurance. The Lessee will carry or cause to be carried at its own expense
with one or more insurers of 
  

 23 

 recognized reputation and responsibility reasonably satisfactory to Lessor, comprehensive general aircraft public
liability (including, without limitation, contractual liability and passenger legal liability) insurance and property damage insurance (exclusive of manufacturer’s product liability insurance), in an amount not less, per occurrence combined
single limit, than the greater of (i) the maximum amount carried by the Lessee from time to time after the Delivery Date on similar or smaller aircraft in its fleet, (ii) the amount evidenced by the certificates of insurance issued by the
Lessee’s independent insurance broker delivered to the Lessor on the Delivery Date or (iii) $950,000,000. Such insurance shall be of the type and in amounts carried by the Lessee with respect to aircraft owned by it or leased to it under
long-term leases and of the type usually carried in accordance with prudent industry practice for United States commercial air carriers similarly situated with the Lessee and owning or operating similar aircraft and engines and that covers risks of
the kind customarily insured against by such carriers. Any policies of insurance carried in accordance with this paragraph (a) and any policies taken out in substitution or replacement for any of such policies (A) shall be amended to name the
Additional Insureds, and their employees, officers and directors as additional insureds, (B) shall provide that in respect of the respective interests of the Additional Insureds in such policies the insurance shall not be invalidated by any action
or inaction of the Lessee, any Person having possession of the Aircraft with permission of the Lessee or any other Additional Insured (other than the Additional Insured claiming coverage) and shall insure the Additional Insureds’ interests, as
they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Lessee, any such Person having possession or any other Additional Insured (other than the Additional Insured claiming
coverage), (C) shall provide that there shall be no recourse against any Additional Insured for the payment of premiums, commissions, club calls, assessments or advances and (D) shall provide that, if such insurance is canceled for any reason
whatsoever, if any material change shall be made in such insurance that adversely affects the interest of any Additional Insured or if such insurance shall be allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not
be effective as to any Additional Insured until 30 days, or not less than 10 days solely with respect to non-payment of premium in the case of all-risk property engine spare coverage (or such shorter period in the case of war risk and allied perils
coverage as shall be customary for insurance policies of major United States air carriers) after receipt by such Additional Insured of written notice by such insurers of such cancellation, change or lapse. Each liability policy (1) shall be primary
without right of contribution from any other insurance that is carried by any Additional Insured or any other Person to the extent that such other insurance provides it with continent and/or excess liability insurance with respect to its interest as
such in the Aircraft, (2) shall expressly provide that all the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured and Additional Insured, (3) shall waive any
right of the insurers to any setoff, counterclaim or other deduction, whether by attachment or otherwise, in respect of any liability of any Additional Insured to the extent of any moneys due such Person and (4) shall waive any rights of the
insurers to subrogation against any Additional Insured. The Lessee shall arrange for appropriate certification as to the satisfaction of the requirements set forth above in this Section 11 (a) to be made to the Additional Insureds as soon as
practicable (and in any case by the Delivery Date) by each insurer with respect thereto. 
  
 (b) Insurance Against Loss or Damage to the Aircraft. The Lessee shall maintain or cause to be maintained in effect, at its own expense, with one or more insurers of recognized reputation and responsibility
reasonably satisfactory to the Lessor, all-risk aircraft 
  

 24 

 ground and flight hull insurance covering each Aircraft, and all-risk insurance with respect to any Engines or Parts
while removed from such Aircraft that (x) shall (consistent with the other express requirements of this Section 11(b)) be of the type and in the form usually carried by the Lessee with respect to similar aircraft and engines, and covering the risks
normally insured against by the Lessee, and (y) shall be payable in Dollars in the United States, (which may except as provided below exclude war risk and allied perils but shall include coverage against perils of strikes, riots, civil commotions,
labor disturbances, any malicious act or act of sabotage or unlawful seizure, or wrongful exercise of control (or any attempt at such seizure or exercise of control)) and (z) shall be in substantially the amount usually carried by similarly situated
airlines, in accordance with prudent United States commercial airline industry practice; provided, however, that such insurance shall at all times while such Aircraft is subject to this Lease be for an amount (subject to deductibles to
the extent permitted by Section 11(d)) not less than 110% of the highest Stipulated Loss Value of such Aircraft then or thereafter scheduled. Such insurance shall not provide the insurers with the right to replace any Airframe or any Engine with
another airframe or engine. To the extent any Aircraft shall be used in an area in which major United States air carriers, in accordance with prudent industry practice, customarily carry or in which the Lessee (or, if a permitted foreign sublease
shall then be in effect, such sublessee or other major international air carriers) customarily carries such coverage, the Lessee shall additionally maintain or cause to be maintained in effect, at its own expense, with insurers of recognized
reputation and responsibility in the aviation industry, war risk insurance, including allied perils (including hijacking, terrorism and confiscation (other than by the Government of Registry)), that shall be in full force and effect throughout any
geographical areas then traversed by such Aircraft in an amount not less than 110% of the highest Stipulated Loss Value of such Aircraft then or thereafter scheduled; provided that if such war risk and allied perils coverage is in effect, a
“50-50 provisional claims settlement clause” shall be contained in such policy and in each all-risk hull policy. Any policies carried in accordance with this paragraph (b) covering the Aircraft and any policies taken out in substitution or
replacement for any such policies (i) shall be amended to name the Additional Insureds as loss payees and additional insureds, (ii) shall be made payable to the Finance Lessor as sole loss payee (for the account of all interests) as long as this
Lease shall be subject to the Lien of the Assignment Agreement and thereafter to the Lessor, in the event of any loss in excess of $1,000,000 or of any loss while a Specified Default or a Lease Event of Default shall have occurred and be continuing
(as notified to the insurer by the Finance Lessor or, if the Finance Lessor shall have given notice to the insurer of release of this Lease from the Lien of the Assignment Agreement, the Lessor), (iii) shall provide that, if the insurance shall be
cancelled or materially altered in a manner adverse to the Additional Insureds for any reason whatever, the same shall be allowed to lapse for nonpayment of premium or such insurance coverage shall be reduced, such cancellation, alteration, lapse or
reduction shall not be effective as to any Additional Insured for 30 days, or not less than 10 days solely with respect to non-payment of premium in the case of all-risk property engine spare coverage, (and with respect to war risk insurance, such
shorter period as shall be customary for insurance policies of major United States air carriers) after receipt by such Additional Insured of written notice by such insurers of such cancellation or lapse or of any material change in policy terms and
conditions, (iv) shall provide that in respect of the interests of any Additional Insured in such policies the insurance shall not be invalidated by any action or inaction of the Lessee or any other Person (other than the Additional Insured claiming
coverage) and shall insure the Additional Insureds’ interests, as they appear, regardless of any breach or violation of any 
  

 25 

 warranties, declarations or conditions contained in such policies by the Lessee or any such Person, (v) shall provide
that there shall be no recourse against any Additional Insured for the payment of premiums, commissions, club calls, assessments or advances and (vi) shall waive any right of the insurers to any setoff, counterclaim or other deduction, whether by
attachment or otherwise, in respect of any liability of any Additional Insured to the extent of any moneys due such Person. The Lessee shall arrange for appropriate certification as to each Aircraft as to the satisfaction of the requirements set
forth above in this Section 11(b) to be made promptly (and in any case by the Delivery Date) to the Additional Insureds by each insurer with respect thereto. In the case of a lease or contract with the United States of America (but not any agency or
instrumentality thereof, unless its obligations carry the full faith and credit of the United States of America) in respect of any Aircraft, a valid agreement (which shall be in form and substance satisfactory to the Additional Insureds) by the
United States of America (but not any agency or instrumentality thereof, unless its obligations carry the full faith and credit of the United States of America) to indemnify the Lessee and the Additional Insureds against the same risks that the
Lessee is required hereunder to insure against, on similar terms and conditions as provided herein, in an amount at least equal at any time during the term of such lease or contract to the Stipulated Loss Value that would be payable if an Event of
Loss with respect to such Aircraft occurred at such time, shall be considered adequate insurance with respect to such Aircraft under this Section 11(b) to the extent of the risks and in the amounts that are the subject of any such agreement to
indemnify. Each policy required under this Section 11(b) shall satisfy the requirements set forth in clauses (1), (3) and (4) of the penultimate sentence of Section 11(a). 
  
 As between the Lessor and the Lessee, all insurance payments received under policies that the Lessee is required to maintain
hereunder as the result of the occurrence of an Event of Loss with respect to any Airframe or any Engine shall be paid to, or retained by, the Finance Lessor or, if the Aircraft shall no loner be subject to the Lien of the Finance Lease, the Lessor,
as security for the Lessee’s obligations hereunder and shall be applied as follows: 
  
 (x) so much of such payments remaining after reimbursement of the Lessor and the Finance Lessor for costs and expenses (including the fees
and expenses of counsel to the Lessor and the Finance Lessor and the Owner Participant ) incurred in connection with such Event of Loss shall be applied against the Stipulated Loss Value required to be paid by the Lessee pursuant to Section 10(a)
hereof (plus any other amounts of Rent then due and payable), if not already paid by the Lessee, or, if already paid by the Lessee, shall be applied to reimburse the Lessee for its payment of such Stipulated Loss Value (plus any such other amounts
of Rent), and the balance, if any, of such payment remaining thereafter shall be paid over to, or retained by, the Lessee; and 
  
 (y) if such payments shall be received with respect to an Engine under circumstances contemplated by Section 10(b) hereof, so much of such
payments remaining after reimbursement of the Lessor and the Finance Lessor for costs and expenses incurred in connection with such Event of Loss and any other Rent then due shall be paid over to, or retained by, the Lessee; provided,
however, that the Lessee shall have fully performed the terms of Section 10(b) with respect to the Event of Loss for which such payments are made. 
  

 26 

 As between the Lessor and the Lessee, the insurance payments for any property damage loss to any Airframe
or any Engine not constituting an Event of Loss with respect thereto shall be applied in payment for repairs or for replacement property in accordance with the terms of Sections 7 and 8 hereof, if not already paid for by the Lessee (or to reimburse
the Lessee for such repairs or replacements already paid for by the Lessee), and any balance remaining after compliance with such Sections with respect to such loss shall be paid to the Lessee. Any amount referred to in the preceding sentence or in
clause (x) or (y) of the preceding paragraph that is payable to the Lessee shall not be paid to the Lessee if at the time of such payment a Specified Default or a Lease Event of Default shall have occurred and be continuing, but shall be held by the
Finance Lessor subject to the Finance Lease or, if the Aircraft shall no longer be subject to the Lien of the Finance Lease, by the Lessor as security for the obligations of the Lessee under this Lease and the other Operative Agreements and, at such
time as there shall not be continuing any Specified Default or any Lease Event of Default, such amount shall, to the extent not applied to satisfy the obligations of the Lessee, be paid to the Lessee. 
  
 (c) [Reserved]. 
  
 (d) Deductibles. With respect to insurance carried pursuant to Section
11(b), Lessee may agree to a deductible per occurrence (other than an Event of Loss to any Airframe or any Aircraft) that is not in excess of $1,000,000 or whatever is the then standard market deductible in Lloyd’s of London for aircraft of
this type. 
  
 (e) Additional Insurance. The Lessee may at
its own expense carry insurance with respect to its interest in the Aircraft in amounts in excess of those required by this Section 11, and each of the Lessor, and any Participant may at its sole cost and expense carry insurance with respect to its
interest in the Aircraft; provided, however, that such insurance does not prevent the Lessee from carrying, or otherwise adversely affect the coverage of, the insurance required by this Section 11 and all salvage rights to the
Airframes or the Engines shall remain with the Lessee’s insureds at all times; provided further that in the event the Lessee and a Additional Insured both desire to insure any Aircraft for amounts in excess of that required by Section
11(b) and such overlapping insurance is not available in part or in whole, such Additional Insured’s right to carry such additional insurance shall prevail. 
  
 (f) Certificates, etc. On or before the Delivery Date of the Aircraft, and concurrently with the renewal of each
insurance policy (but in no event less frequently than once each calendar year), the Lessee shall furnish to the Additional Insureds a certificate of an authorized representative of the insurers describing in reasonable detail the insurance policies
then carried and maintained on each Aircraft and a report signed by an independent firm of aircraft insurance brokers reasonably satisfactory to the Lessor certifying that such insurance complies with the terms hereof and, on request in the event of
a dispute over coverage in respect of a failure of an insurer to pay a claim, shall send to each Additional Insured a copy of such policies. The Lessee will advise the Lessor and the Finance Lessor in writing promptly of an% early termination of any
insurance required by this Section 11 and of any default in the payment of any premium and of any other act or omission on the part of the Lessee that might invalidate or render unenforceable, in whole or in part, any insurance on any Aircraft
required by this Section 11. 
  

 27 

 (g) Lessor’s Right to Maintain Insurance. If the Lessee shall fail to maintain insurance as
herein provided, the Lessor may at its sole option provide such insurance and, in such event, the Lessee shall, upon demand, reimburse the Lessor, as Supplemental Rent, for the cost thereof, without waiver of or prejudice to any other rights the
Lessor may have. 
  
 Section 12. Inspection. At all
reasonable times, the Lessor, the Finance Lessor, the Owner Participant and their respective authorized representatives may at their own expense (unless a Lease Default shall have occurred and be continuing, or unless such inspection discloses any
material failure by the Lessee to comply with the provisions of this Lease in which case, at the Lessee’s expense) and risk conduct a visual walk-around inspection of any Aircraft and any Engine (which may include going on board such Aircraft
and looking inside any panels and bays that are open) (including, without limitation, a visual walk-around inspection of such Aircraft during any “C” check or other heavy maintenance) and may inspect the books, logs and records of the
Lessee (and make copies of such books, logs and records) relating to the operation and maintenance thereof, provided that (a) any such inspection shall be subject to the safety, security and workplace rules applicable at the location where such
inspection is conducted and any applicable governmental rules or regulations and (b) in the case of an inspection during a maintenance visit, such inspection shall not interfere with the normal conduct of such maintenance visit or extend the time
required for such maintenance visit or, in any event, at any time unreasonably interfere with the use or operation of any Airframe or any Engine or with the normal conduct of the Lessee’s business. No such Person shall have any duty to make any
such inspection or incur any liability or obligation by reason of not making any such inspection. No inspection under this Section 12 shall relieve the Lessee of any of its obligations under this Lease or any other Operative Agreement. 

 
 If requested by any of the Lessor, the Finance Lessor or the Owner
Participant, the Lessee shall give reasonable prior written notice to such Person of the date on which any Aircraft, any Airframe or any Engine undergoes its next scheduled maintenance visit and next major check, and with respect to any Engine the
next off-the-wing maintenance, and shall advise such Person of the name and location of the relevant maintenance provider and shall, at least five days prior to commencement of such major check or maintenance, make available for inspection by such
Person all relevant records, logs and documents relating to such Aircraft which may then be requested. 
  
 Section 13. ASSIGNMENT. EXCEPT AS OTHERWISE PERMITTED BY SECTION 13(c) OF THE PARTICIPATION AGREEMENT, THE LESSEE WILL NOT, WITHOUT THE PRIOR
WRITTEN CONSENT OF THE LESSOR AND THE FINANCE LESSOR, ASSIGN ANY OF ITS RIGHTS HEREUNDER. THE LESSOR AGREES THAT IT WILL NOT ASSIGN OR CONVEY ITS RIGHT, TITLE AND INTEREST IN AND TO THIS LEASE AND THE AIRCRAFT EXCEPT AS CONTEMPLATED BY OR PROVIDED
IN THE TRUST AGREEMENT, THE FINANCE LEASE OR THE PARTICIPATION AGREEMENT. 
  
 No
such assignment shall limit the effect of Section 4(d). The Lessee acknowledges and consents to the assignment of this Lease by the Lessor to the Finance Lessor pursuant to the Assignment Agreement as provided in Section 22. The terms and provisions
of this Lease shall be binding upon and inure to the benefit of the Lessor and the Lessee and their respective successors and assigns. 
  

 28 

 Section 14. Lease Events of Default. Any one or more of the following events shall constitute a
Lease Event of Default (whether any such event shall be voluntary or involuntary or come about or be effected by operation of law or pursuant to or in compliance with any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body): 
  
 (a) the Lessee shall
fail to make a payment of Basic Rent, Stipulated Loss Value or the Purchase Option Price within three (3) Business Days after the due date therefor; 
  
 (b) the Lessee shall fail to make a payment of Supplemental Rent (other than any amounts specified in clause (a) above) within 10 (ten) Business Days
after the same shall have become due; or 
  
 (c) the Lessee shall
fail to carry and maintain on or with respect to any Aircraft (or cause to be carried and maintained) insurance required to be maintained in accordance with the provisions of Section 11 hereof, or such insurance shall lapse, or the Lessee shall
operate such Aircraft after receiving notice that such insurance has lapsed or outside of the scope of such insurance coverage; or 
  
 (d) the Lessee shall make, permit or suffer to exist, any unauthorized assignment or transfer of this Lease, or any interest therein, or of the right to
possession of or operational control over any Aircraft, any Airframe, any Engine or any Part; or 
  
 (e) the Lessee shall fail to perform or observe (or cause to be performed or observed) its obligation under Section 5 to return each Aircraft in the
condition specified therein when required to do so hereunder; or 
  
 (f) any Lessee Party shall fail to perform or observe (or cause to be performed or observed) any other covenant or agreement to be performed or observed by it hereunder or under any other Operative Agreement, and such failure shall continue
unremedied for a period of 30 days; or 
  
 (g) any representation
or warranty made by a Lessee Party in any Operative Agreement or any document or certificate furnished by such Lessee Party in connection therewith or pursuant thereto, shall prove to have been incorrect or misleading in any material respect at the
time made; or 
  
 (h) any Lessee Party shall consent to the
appointment of or taking possession by a receiver, assignee, custodian, sequestrator, trustee or liquidator (or other similar official) of itself or of a substantial part of its property or any Lessee Party shall admit in writing its inability to
pay its debts generally as they come due, or shall make a general assignment for the benefit of its creditors, or any Lessee Party shall file a voluntary petition in bankruptcy or a voluntary petition or answer seeking liquidation, reorganization or
other relief with respect to itself or its debts under the federal bankruptcy laws, as now or hereafter constituted or any other applicable federal or state bankruptcy, insolvency or other similar law, or shall consent to the entry or order for
relief in an involuntary case under any such law or any Lessee Party shall file an answer admitting the material allegations of a petition filed against it in any such proceeding, or shall otherwise seek relief under the provisions of any now
existing or future federal or state 
  

 29 

 bankruptcy, insolvency or other similar law providing for the reorganization or winding-up of corporations, or providing
for an agreement, arrangement, composition, extension or adjustment with its creditors; or 
  
 (i) an order, judgment or decree shall be entered in any proceedings by any court of competent jurisdiction appointing, with or without the consent of any Lessee Party, a receiver, trustee or liquidator of such Lessee
Party or of any substantial part of its property, or any substantial part of the property of any Lessee Party shall be sequestered, and any such order, judgment, decree, appointment or sequestration shall remain in force undismissed, unstayed or
unvacated for a period of 60 days after the date of entry thereof and is not being disputed in good faith with a reasonable chance of success; or 
  
 (j) a petition against any Lessee Party in a proceeding under the federal bankruptcy laws or other insolvency laws, as now or hereafter in effect, shall
be filed and shall not be withdrawn or dismissed within 60 days thereafter and is not being disputed in good faith with a reasonable chance of success, or under the provisions of any law providing for reorganization or winding up of corporations
which may apply to any Lessee Party, any court of competent jurisdiction shall assume jurisdiction, custody or control of such Lessee Party or of any substantial part of its property and such jurisdiction, custody or control shall remain in force
unrelinquished, unstayed or unterminated for a period of 60 days and is not being disputed in good faith with a reasonable chance of success; or 
  
 (k) final non-appealable judgment for the payment of money in excess of S10,000,000 (or its equivalent) shall be rendered against any Lessee Party and the
same shall remain unpaid, unstayed or undischarged for a period of 30 days; or 
  
 (l) the Lessee shall voluntarily or involuntarily suspend all or any substantial portion of its commercial airline operations or the franchises, concessions, permits, certificates, licenses (including, without
limitation, its air carrier operator’s certificate or certificate of public convenience and necessity), rights or privileges required for the conduct of the Lessee’s business operations are revoked, canceled, not renewed or otherwise
terminated or the Lessee shall cease to be a certified air carrier to the extent required to fall within the purview of Section 1110; or 
  
 (m) any Lessee Party shall default in the observance or performance of any agreement or condition relating to any Indebtedness (as hereinafter defined) or
contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition being that any outstanding Indebtedness in excess of
$10,000,000 (or the equivalent in any foreign currency) shall become payable whether by acceleration or otherwise, prior to its stated maturity or due date or the holders of such Indebtedness are entitled by reason of such default to cause such
Indebtedness to become so payable; it being understood and agreed for purposes of this Section 14(m) that “Indebtedness” means a Lessee Party’s obligations (A) for borrowed money. (B) under any lease, (C) in respect of Taxes imposed
upon such Lessee Party’s income or profits or upon any property belonging to such Lessee Party, it being acknowledged that for purposes of this clause, any such Indebtedness shall be deemed to be “payable prior to its stated maturity or
due date” at such time as nonpayment of the same results in the imposition of a Lien on any 
  

 30 

 property of such Lessee Party or (D) under any agreement whereby such Lessee Party guarantees the obligation of any other
Person for borrowed money or under a lease by such Person; or 
  
 (n) there shall have occurred and be continuing a default, event of default or breach under any commercial contracts (other than those relating to Indebtedness) of any Lessee Party having an obligation greater than $10,000,000 (or the
equivalent in any foreign currency) if such default, event of default or breach relates to the payment of money or causes, or permits the holder of such obligation to cause, such obligation to become due prior to its stated maturity; or 

 
 (o) the Letter of Credit shall be dishonored or declared or deemed invalid
or the issuer thereof shall in any manner deny its liability thereunder or, by the date that is thirty (30) days prior to the expiry of any Letter of Credit then in effect, such Letter of Credit shall have not be renewed for a period of at least 364
days or replaced by a cash deposit such that the aggregate amount of cash held by the Lessor is equal to the full amount of the Security Deposit specified in Exhibit E; or 
  
 (p) (i) this Lease or any other of the Operative Agreements ceases to be in full force and effect or to be a legal, valid
and binding obligation of Lessee, in whole or in part, enforceable against the Lessee in accordance with its terms or (ii) any Operative Agreement to which a Lessee Patty is a party ceases to be in full force and effect or to be a legal, valid and
binding obligation of such Lessee Patty, in whole or in part, enforceable against such Lessee Party in accordance with its terms; or 
  
 (q) (i) Lessee repudiates its obligations under this Lease, or any other of the Operative Agreements or (ii) any other Lessee Patty repudiates its
obligations under any Operative Agreement; or 
  
 (r) Lessee shall
cease at any time to be a Section 1110 Person if at such time Section 1110 is in effect; or 
  
 (s) Section 1110 shall cease to be in full force and effect and no statute shall have been enacted providing substantially similar relief to aircraft lessors; or 
  
 (t) (i) any concession, permit, license, consent or approval from any
Governmental Authority necessary for the operation, maintenance, use, insurance or return of any Aircraft or for the payment by Lessee in the manner specified herein of Rent in Dollars, as specified herein, shall be suspended, terminated or
canceled, and any such concession, permit, license, consent or approval shall not be reinstated or replaced within 30 days after such suspension, termination or cancellation, or (ii) Lessee shall fail to obtain any such concession, permit, license,
consent or approval hereafter required for such operation, maintenance, use, insurance, return or payment, and such failure shall continue unremedied for a period of 30 days. 
  
 Section 15. Remedies. Upon the occurrence of any Lease Event of Default not described in Section 14(h), (i) or (j)
and at any time thereafter so long as the same shall be continuing, the Lessor may, at its option, declare this Lease to be in default and upon the occurrence of any Lease Event of Default described in Section 14(h), (i) or (j), this Lease shall
without further act, automatically and immediately be deemed to be in default; and at any time after this Lease shall be declared to be in default or be deemed to be in default pursuant to this 
  

 31 

 sentence, so long as the Lessee shall not have remedied all outstanding Events of Default, the Lessor may exercise one or
more of the following remedies with respect to all or any part of any Airframe or any Engine as the Lessor in its sole discretion shall elect, to the extent permitted by, and subject to compliance with any mandatory requirements of, Applicable Laws
then in effect: 
  
 (a) cause the Lessee, upon the written demand
of the Lessor and at the Lessee’s expense, to return promptly, and the Lessee shall return promptly, all or such part of any Airframe or any Engine, as the Lessor may so demand, to the Lessor or its order in the manner and condition required
by, and otherwise in accordance with all the provisions of, Section 5 hereof as if such Airframe or Engine were being returned at the end of the Lease Term, or the Lessor, at its option, may enter upon the premises where all or any part of any
Airframe or any Engine is located and take immediate possession of and remove the same by summary proceedings or otherwise, all without liability accruing to the Lessor for or by reason of such entry or taking of possession or removing whether for
the restoration of damage to property caused by such action or otherwise, and the Lessor may institute proceedings to foreclose upon or repossess any or all of the Aircraft in any jurisdiction where such Aircraft may be located; 
  
 (b) sell all or any part of any Airframe or any Engine at public or private
sale, as the Lessor may determine, or otherwise dispose of, hold, use, operate, lease to others or keep idle all or any part of such Airframe or such Engine as the Lessor, in its sole discretion, may determine, all free and clear of any rights of
the Lessee except as hereinafter set forth in this Section 15 and without any duty to account to the Lessee with respect to such action or inaction or for any proceeds with respect thereto, except to the extent required by paragraph (d) below in the
event the Lessor elects to exercise its rights under said paragraph in lieu of its rights under paragraph (c) below; 
  
 (c) whether or not the Lessor shall have exercised, or shall thereafter at any time exercise, any of its rights under paragraph (a) or paragraph (b) above
with respect to all or any part of any Airframe or any Engine, the Lessor, by written notice to the Lessee specifying a payment date not earlier than ten days after such notice, may cause the Lessee to pay to the Lessor, and the Lessee shall pay to
the Lessor, on the payment date specified in such notice, as liquidated damages for loss of a bargain and not as a penalty (in lieu of the Basic Rent for an Aircraft due after the date specified for payment in such notice), any unpaid Basic Rent due
on or before such payment date, plus whichever of the following amounts the Lessor, in its sole discretion, shall specify in such notice: (i) an amount equal to the excess, if any, of the Stipulated Loss Value as of such payment date for such
Aircraft, over the aggregate Fair Market Rental Value of such Aircraft for the remainder of the Lease Term, after discounting such aggregate fair market rental value to present value as of the payment date specified in such notice at the Prime Rate;
or (ii) an amount equal to the excess, if any, of such Stipulated Loss Value for such Aircraft over the Fair Market Sales Value of such Aircraft as of such payment date, in either case plus (x) interest on such Stipulated Loss Value from the
Stipulated Loss Value Date as of which it was calculated to such payment date at the Floating Rate plus (y) all other Rent then due; 
  
 (d) if the Lessor, pursuant to paragraph (b) above, shall have sold all or any part of any Airframe or any Engine, the Lessor, in lieu of exercising its
rights under paragraph (c) above with respect to such Aircraft, may, if it shall so elect, cause the Lessee to pay the Lessor, and the Lessee shall pay to the Lessor, on the date of such sale, as liquidated damages for 
  

 32 

 loss of a bargain and not as a penalty (in lieu of the Basic Rent for such Aircraft due after the date such sale occurs),
any unpaid Basic Rent due on or before such sale date plus the amount of any deficiency between the net proceeds of such sale and the sum of the Stipulated Loss Value for such Aircraft as of the date of such sale plus interest thereon from the
Stipulated Loss Value Date as of which it was calculated through such date of sale at the Floating Rate, together with all other Rent then due; 
  
 (e) by notice to the Lessee, the Lessor may require the Lessee to pay on demand to the Lessor and the Lessee hereby agrees that it will so pay to the
Lessor, as liquidated damages for loss of a bargain and not as a penalty (in lieu of Basic Rent for an Aircraft after the date of such notice) any unpaid Basic Rent for such Aircraft due on or before the date of such notice, plus an amount equal to
the Stipulated Loss Value for such Aircraft computed as of date of such notice plus interest thereon from the Stipulated Loss Value Date as of which it was calculated through such payment date at the Floating Rate; and upon such payment of
liquidated damages and the payment of all other Rent then due hereunder, the Lessor shall proceed to exercise its reasonable efforts promptly to sell such Airframe and Engines and shall pay over to the Lessee the net proceeds of such sale (after
deducting from such proceeds all costs and expenses whatsoever incurred by the Lessor in connection therewith and all other amounts that may become payable to the Lessor or any Participant) up to the amount of Stipulated Loss Value actually paid;

  
 (f) the Lessor may rescind this Lease as to any or all of the
Airframes and any or all of the Engines, or may exercise any other right or remedy that may be available to it under Applicable Laws or proceed by appropriate court action to enforce the terms hereof or to recover damages for the breach hereof;
and/or 
  
 (g) Lessor shall have the right to draw the entire
amount of the Letter of Credit and apply the proceeds thereof to amounts due from Lessee hereunder or under any other Operative Agreement. 
  
 In addition, the Lessee shall be liable, except as otherwise provided above, for any and all unpaid Rent due hereunder before, after or during the
exercise of any of the foregoing remedies and for all reasonable legal fees and other costs and expenses incurred by reason of the occurrence of any Lease Event of Default or the exercise of the Lessor’s remedies with respect thereto, including
all costs and expenses incurred in connection with the return of any Airframe or any Engine in accordance with the terms of Section 5 hereof or in placing such Airframe or Engine in the condition required by such Section. At any sale of an Airframe
or Engine or part thereof pursuant to this Section 15 the Lessor (or any Participant) may bid for and purchase such property. The Lessor agrees to give the Lessee at least 10 days written notice of the date fixed for any public sale of any Airframe
or any Engine or of the date on or after which will occur the execution of any contract providing for any private sale thereof, and any such public sale shall be conducted in general so as to afford the Lessee a reasonable opportunity to bid. Except
as otherwise expressly provided above, no remedy referred to in this Section 15 is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available to the Lessor at law or in equity;
and the exercise or beginning of exercise by the Lessor of any one or more of such remedies shall not preclude the simultaneous or later exercise by the Lessor of any or all such other Remedies. No express or implied waiver by the 
  

 33 

 Lessor of any Lease Event of Default shall in any way be, or be construed to be, a waiver of any future or subsequent
Lease Event of Default. To the extent permitted by Applicable Laws, the Lessee hereby waives any rights now or hereafter conferred by statute or otherwise that may require the Lessor to sell, lease or otherwise use an Aircraft or an Engine in
mitigation of the Lessor’s damages as set forth in this Section 15 or that may otherwise limit or modify any of the Lessor’s rights or remedies hereunder. 
  
 Section 16. Lessor’s Right To Perform for the Lessee. If the Lessee shall fail to make any payment of
Supplemental Rent required to be made by it hereunder, or shall fail to perform or comply with any of its agreements contained herein, the Lessor may itself make such payment or perform or comply with such agreement, and the amount of such payment
and the amount of the expenses of the Lessor incurred in connection with such payment or the performance of or compliance with such agreement, as the case may be, together with interest thereon at the Overdue Rate, shall be deemed Supplemental Rent,
payable by the Lessee upon demand. No such payment or performance shall be deemed to waive any Lease Default or relieve the Lessee of its obligations hereunder. 
  

Section 17. Further Assurances. Forthwith upon the execution and delivery of each Lease Supplement or Finance Lease Supplement, the Lessee will
cause such Lease Supplement or Finance Lease Supplement (and, in the case of the initial Lease Supplement and Finance Lease Supplement, this Lease, the Assignment Agreement, the Finance Lease, each FAA Bill of Sale and the Trust Agreement as well)
to be duly filed and recorded in accordance with the Federal Aviation Act and other Applicable Laws relating to the conveyance of an interest in the Aircraft and the perfection of an interest in the Aircraft. In addition, the Lessee will promptly
and duly execute and deliver to the Lessor such further documents and assurances and take such further action as the Lessor may from time to time reasonably request in order to carry out more effectively the intent and purpose of this Lease and to
establish and protect the rights and remedies created or intended to be created in favor of the Lessor hereunder, including, without limitation, the execution and delivery of supplements or amendments hereto, in recordable form, subjecting to this
Lease any Replacement Engine and the recording or filing of counterparts hereof, in accordance with the laws of such jurisdictions as the Lessor may from time to time deem advisable. The Lessee, at its own expense and without need of any prior
request from the Lessor or the Finance Lessor, shall take such action as may be necessary (including any action specified in the preceding sentence), or (if the Lessor or the Finance Lessor shall so request) as so requested, in order to maintain the
perfection and priority of all security interests provided for hereunder, under the Trust Agreement, the Finance Lease, the Assignment Agreement or the Participation Agreement, including, without limitation, all financing statements and continuation
statements, and all similar notices required by Applicable Laws at all times to be kept recorded and filed in such manner and such places as the Lessor and the Finance Lessor may request. 
  
 Section 18. Notices. All notices required under the terms and provisions hereof shall be in writing and shall become
effective as provided in Section 19(a) of the Participation Agreement. The Lessee shall furnish the Lessor a sufficient number of copies for transmission to the Participants of all reports, notices, requests, demands, certificates, financial
statements and other instruments furnished hereunder. 
  

 34 

 Section 19. Net Lease, etc. THIS LEASE IS A NET LEASE AND LESSOR SHALL HAVE NO RESPONSIBILITY
(OPERATIONALLY OR FINANCIALLY) IN RESPECT OF THE USE, POSSESSION, CONTROL OR OPERATION OF THE AIRCRAFT. THE LESSEE ACKNOWLEDGES AND AGREES THAT ITS OBLIGATIONS TO PAY ALL RENT DUE AND OWING UNDER THE TERMS HEREOF AND TO PERFORM ITS OTHER OBLIGATIONS
HEREUNDER SHALL BE ABSOLUTE AND UNCONDITIONAL AND SHALL NOT BE AFFECTED OR REDUCED BY ANY CIRCUMSTANCE WHATSOEVER, INCLUDING WITHOUT LIMITATION (A) ANY SETOFF, COUNTERCLAIM, RECOUPMENT, DEFENSE OR OTHER RIGHT THAT THE LESSEE MAY HAVE AGAINST THE
LESSOR, THE OWNER PARTICIPANT, THE FINANCE LESSOR, OR ANY OTHER PERSON FOR ANY REASON WHATSOEVER, (B) ANY DEFECT IN THE TITLE, AIRWORTHINESS, ELIGIBILITY FOR REGISTRATION, OR ANY CONDITION, DESIGN, OPERATION OR FITNESS FOR USE OF, OR ANY DAMAGE TO
OR LOSS OR DESTRUCTION OF, ANY AIRCRAFT, OR ANY THEFT, INTERFERENCE, INTERRUPTION OR CESSATION IN OR PROHIBITION OF THE USE OR POSSESSION THEREOF BY THE LESSEE FOR ANY REASON WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ANY SUCH INTERFERENCE,
INTERRUPTION, CESSATION OR PROHIBITION RESULTING FROM THE ACT OF ANY GOVERNMENTAL AUTHORITY OR OTHERWISE, (C) ANY LIENS WITH RESPECT TO ANY AIRCRAFT OR ANY BREACH BY ANY PARTY OF ANY OPERATIVE AGREEMENT OR ANY OTHER DOCUMENT, (D) THE INVALIDITY OR
UNENFORCEABILITY OR LACK OF DUE AUTHORIZATION OR OTHER INFIRMITY OF THIS LEASE OR ANY OTHER OPERATIVE AGREEMENT OR ANY LACK OF RIGHT, POWER OR AUTHORITY OF THE LESSOR OR THE LESSEE TO ENTER INTO THIS LEASE OR ANY OTHER OPERATIVE AGREEMENT, (E) ANY
INSOLVENCY, BANKRUPTCY, REORGANIZATION OR SIMILAR PROCEEDINGS BY OR AGAINST THE LESSEE, THE LESSOR, THE OWNER PARTICIPANT OR ANY OTHER PERSON, OR (F) ANY OTHER CAUSE WHETHER SIMILAR OR DISSIMILAR TO THE FOREGOING, ANY PRESENT OR FUTURE APPLICABLE
LAWS NOTWITHSTANDING, IT BEING THE EXPRESS INTENTION OF THE PARTIES HERETO THAT ALL RENT BEING PAYABLE BY THE LESSEE HEREUNDER SHALL CONTINUE TO BE PAYABLE IN ALL EVENTS IN THE MANNER AND AT THE TIMES PROVIDED HEREIN. TO THE EXTENT PERMITTED BY
APPLICABLE LAWS, THE LESSEE HEREBY WAIVES, AND HEREBY AGREES TO WAIVE AT ANY FUTURE TIME AT THE REQUEST OF LESSOR, ANY RIGHTS THAT IT MAY NOW HAVE OR THAT MAY BE CONFERRED UPON IT, BY STATUTE OR OTHERWISE, TO TERMINATE, CANCEL, QUIT OR SURRENDER
THIS LEASE EXCEPT IN ACCORDANCE WITH THE TERMS HEREOF. EACH PAYMENT OF RENT MADE BY LESSEE TO LESSOR SHALL BE FINAL AND LESSEE WILL NOT SEEK TO RECOVER ALL OR ANY PART OF ANY SUCH PAYMENT OF RENT FROM LESSOR FOR ANY REASON WHATSOEVER. NOTHING IN
THIS SECTION 19 SHALL BE CONSTRUED TO PROHIBIT LESSEE FROM SEPARATELY PURSUING ANY CLAIM IT MAY HAVE FROM TIME TO TIME AGAINST LESSOR OR ANY OTHER PERSON WITH RESPECT TO ANY MATTER (OTHER THAN THE ABSOLUTE AND UNCONDITIONAL NATURE OF LESSEE’S
OBLIGATIONS HEREUNDER TO PAY RENT DUE HEREUNDER AND TO PERFORM ALL THE TERMS HEREOF.) 
  

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 Section 20. Security Deposit. (a) Security Deposit. On or prior to the Delivery Date,
Lessee shall deliver to Lessor the Letter of Credit, duly executed by the issuer thereof and such Letter of Credit shall constitute the Security Deposit. The Lessor shall hold the Security Deposit as and for collateral security for the timely
payment and performance by Lessee of its obligations hereunder and under each other Operative Agreement and shall be entitled to apply the same as provided in Sections 15 and 20(b). The proceeds of any drawing by Lessor on the Letter of Credit shall
also constitute the Security Deposit and the Lessee shall have no claim against the Lessor for any specific monies. The Letter of Credit, and each extension or renewal thereof, shall have at all times an available amount equal to the amount
specified in the definition of Security Deposit and shall not expire prior to the 364th day following issuance thereof. Lessee shall cause each Letter of Credit to be renewed or extended not later than the date that is 30 days prior to the expiry
thereof, with written confirmation of such extension or renewal being delivered to Lessor not later than such 30th day prior to expiry. The Letter of Credit shall remain in full force and effect until the 90th day following the expiration of the
Term. The Letter of Credit shall be drawable at any time after issuance except that a renewal or replacement Letter of Credit shall not be drawable at any time during which any previously issued Letter of Credit remains in effect. In the event that
any Letter of Credit is not extended, renewed or replaced and delivered to Lessor in the form and amount required hereby, Lessor shall be entitled to draw the full amount available to be drawn under the Letter of Credit then in effect at any time
prior to the then applicable expiry date. In such event, the amount so drawn shall be held and applied in accordance with the terms of this Lease and the other Operative Agreements. 
  
 (b) Grant of Security Interest; Application Following Default. The Security Deposit shall not at any time during the
Term be less than the amount set forth in Exhibit E. Lessee hereby assigns, transfers and pledges to Lessor, and hereby grants to Lessor, a first-priority security interest in, the Letter of Credit and all proceeds thereof with power to assign,
transfer, pledge or otherwise dispose of any right, title or interest therein. Any interest earned on any cash constituting the Security Deposit shall be for Lessor’s sole account. If a Lease Event of Default shall occur, then in addition to
any other rights Lessor may have under applicable Law as a secured party or otherwise, or under this Lease or any other Operative Agreement, Lessor may, but shall be under no obligation to, draw upon the Letter of Credit and set off against,
use, apply or retain all or any portion of the proceeds thereof in full or partial payment of amounts payable by Lessee under this Lease or any other Operative Agreement or to compensate Lessor for any amount it may in its reasonable discretion
advance as a result of the occurrence of any Lease Default, or to apply toward expenses arising as a result of the occurrence of any Lease Default or otherwise. If Lessor uses or applies all or a portion of the Security Deposit, including the
proceeds of any draft upon the Letter of Credit, such application shall not be deemed a cure by Lessee, or waiver by Lessor, of any Lease Default, and Lessee shall, within five (5) Business Days after Lessor’s demand therefor, cause the stated
amount of the Letter of Credit to be restored to its original amount or may pay to Lessor cash such that the total amount held by Lessor shall equal the required amount of the Security Deposit. Provided that no Lease Default exists. upon payment and
performance in full of all of Lessee’s obligations in respect of each of the Aircraft under the Operative Documents to be performed at or prior to the expiration of the Basic Term. Lessor shall return the Letter of Credit and any cash
constituting the Security Deposit to Lessee promptly after the expiration of the Basic Term. 
  

 36 

 (c) Assignment to the Finance Lessor. Lessee hereby acknowledges the assignment of the Security
Deposit by Lessor to the Finance Lessor pursuant to the Assignment Agreement as provided in the Participation Agreement. Lessee agrees that so long as any Aircraft remains subject to the Lien of the Finance Lease, the Letter of Credit shall be
issued to the Finance Lessor as beneficiary thereof and the Finance Lessor shall enjoy all of the rights of the Lessor, and may take any or all of the actions that the Lessor may take, in respect of the Letter of Credit and the Security Deposit
hereunder; provided that, upon an assignment of the Finance Lessor’s interest in the Finance Lease, at the request of the Finance Lessor, the Lessee shall cause a new Letter of Credit to be issued to the transferee of such interest as
beneficiary thereof. 
  
 Section 21. Successor Owner
Trustee. The Lessee agrees that, in the case of the appointment of any successor owner trustee pursuant to the terms of the Trust Agreement, such successor owner trustee shall, upon written notice by such successor owner trustee to the Lessee,
succeed to all the rights, powers and title of the Lessor hereunder and shall be deemed to be the Lessor and the owner of the Aircraft for all purposes hereof without the necessity of any consent or approval by the Lessee and without in any way
altering the terms of this Lease or the Lessee’s rights and obligations hereunder. Such appointment and designation of a successor owner trustee shall not exhaust the right to appoint and designate further successor owner trustees pursuant to
the Trust Agreement, but such right may be exercised repeatedly as long as this Lease shall be in effect. 
  
 Section 22. Security for Lessor’s Obligations under Finance Lease. In order to secure the Lessor’s obligations owing to the Finance
Lessor under the Finance Lease and the other Operative Documents, the Lessor has created, by the Finance Lease, a first priority security interest in the Aircraft and, by the Assignment Agreement, a first security interest in this Lease, all Rent
and other sums payable hereunder and the Security Deposit. The Finance Lease provides, among other things, for the creation of a first priority perfected security interest in the Aircraft in favor of the Finance Lessor and the Assignment Agreement
provides, among other things, for the assignment by the Lessor to the Finance Lessor of Lessor’s right, title and interest in, to and under this Lease. The Lessee hereby consents to such assignment, to the creation of such security interests
and acknowledges receipt of copies of the Trust Agreement, the Finance Lease and the Assignment Agreement, it being understood that such consent shall not affect any requirement or the absence of any requirement for any consent under any other
circumstances. The Lessee shall furnish to the Finance Lessor counterparts of all writings of any kind required to be delivered hereunder by the Lessee to the Lessor. Until the Lease is no longer subject to the Assignment Agreement and the Aircraft
are no longer subject to the Lien of the Finance Lease, (a) the Lessee shall make all payments of Rent and Stipulated Loss Value and all other amounts payable hereunder (other than Excepted Payments) to the Finance Lessor as provided in Section 3(f)
hereof, and the right of the Finance Lessor to receive such payments shall not be subject to any defense, counterclaim, setoff or other right or claim of any kind that the Lessee may be able to assert against the Lessor (in its individual or trust
capacity), any Participant or any other Person in an action brought by any thereof on this Lease and (b) except as otherwise provided in the Finance Lease, all rights of the Lessor with respect to the Lease, the Security Deposit and the Letter of
Credit, any Aircraft, any Airframe or any Engine (or any Part thereof) shall be exercisable by the Finance Lessor. 
  

 37 

 TO THE EXTENT, IF ANY, THAT THIS LEASE CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN THE UNIFORM
COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE JURISDICTION), NO SECURITY INTEREST IN THIS LEASE MAY BE CREATED THROUGH THE TRANSFER OF POSSESSION OF ANY COUNTERPART OTHER THAN THE ORIGINAL COUNTERPART, WHICH SHALL BE IDENTIFIED AS THE COUNTERPART
CONTAINING THE RECEIPT THEREFOR EXECUTED BY THE FINANCE LESSOR ON OR IMMEDIATELY FOLLOWING THE SIGNATURE PAGE THEREOF. 
  
 The provisions of this Lease that require or permit action by, the payment of moneys to, the consent or approval of, the furnishing of any instrument or
information to, or the performance of any other obligation to, the Finance Lessor shall not be effective, and the Sections hereof containing such provisions shall be read as though there were no such requirements or provisions and all moneys
otherwise payable to the Finance Lessor hereunder shall be paid to the Lessor, after this Lease is no loner subject to Assignment Agreement and the Aircraft are no longer subject to the Lien of the Finance Lease. 
  
 Section 23. Liability of Lessor Limited. It is expressly agreed and
understood that all representations, warranties and undertakings of Lessor hereunder shall be binding upon Lessor only in its capacity as trustee under the Trust Agreement, and the institution acting as Lessor shall not be liable hereunder in its
individual capacity for any breach thereof, except for its gross negligence or willful misconduct or for breach of its covenants, representations and warranties contained herein, to the extent expressly covenanted or made in its individual capacity.

  
 Section 24. Miscellaneous. (a) Survival. All
agreements, representations, warranties and indemnities contained in this Lease and in any agreement, document or certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall survive and continue in effect following
the execution and delivery of this Lease. 
  
 (b) Binding
Effect. All agreements, representations, warranties and indemnities in this Lease and in any agreement, document or certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall bind the Person making the same and
its successors and assigns and shall inure to the benefit of each Person for whom made and its successors and permitted assigns. 
  
 (c) Counterparts. This Lease may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of
which, when so executed and delivered, shall, subject to the second paragraph of Section 22, be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 (d) Governing Law. This Lease has been negotiated and delivered in the
State of New York and shall be governed by, and be construed in accordance with, the laws of the State of New York. 
  
 (e) Amendments, Modifications etc. Except as otherwise provided in this Section 24(e): (i) neither this Lease 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 
  

 38 

 party against which the enforcement of the termination, amendment, supplement, waiver or modification is sought; and (ii)
no termination, amendment, supplement, waiver or modification of this Lease shall be effective to increase the obligations or liabilities, or decrease the rights, of any party hereto without the written consent of such party. Notwithstanding the
foregoing, so long as this Lease is subject to the Assignment Agreement or any Aircraft is subject to the Lien of the Finance Lease, no termination, amendment, supplement, waiver or other modification of this Lease or any term hereof shall be
effective without the prior written consent of the Finance Lessor. 
  
 (f) Headings and Table of Contents. The headings of the Sections, subsections and paragraphs and the table of contents of this Lease have been inserted for convenience of reference only and shall in no way expand, restrict, define or
otherwise modify any of the terns or provisions hereof. 
  
 (g)
Currency. All amounts and moneys referred to in this Lease shall be construed to mean money which at the time of payment is lawful money of the United States. 
  
 (h) Severability. If any term or provision hereof or the application thereof to any circumstance shall, in any
jurisdiction and to any extent, be invalid or unenforceable, such term or such provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable any remaining
terms and provisions hereof or the application of such term or provision to circumstances other than those as to which it is held invalid or unenforceable. To the extent permitted by applicable law, the parties hereto hereby waive any provision
thereof that renders any term or provision hereof invalid or unenforceable in any respect. 
  
 (i) Entire Agreement. This Lease (including any and all appendices, schedules and exhibits hereto) and the other Operative Agreements supersede all prior agreements, written or oral, between or among any of the
parties hereto relating to the transactions contemplated hereby and thereby and each of the parties hereto represents and warrants to the others that this Lease and the other Operative Agreements constitute the entire agreement among the patties
relating to the transactions contemplated hereby and thereby. 
  
 (j) Title. This Lease shall constitute an agreement of lease, and nothing herein shall be construed as conveying to the Lessee any right, title or interest in the Aircraft except as a lessee only. 
  
 Section 25. Bankruptcy; True Lease. It is the intention of the parties
that the Lessor and the Finance Lessor shall be entitled to the benefits of Section 1110 with respect to the right to repossess the Airframes, Engines and Parts as provided herein, and in any circumstances where more than one construction of the
terms and conditions of this Lease is possible, a construction which would preserve such benefits shall control over any construction which would not preserve such benefits or would render them doubtful. To the extent consistent with the provisions
of Section 1110, it is hereby expressly agreed and provided that, notwithstanding any other provisions of the Federal bankruptcy laws, as amended from time to time, any right of the Lessor and the Finance Lessor to take possession of the Aircraft in
compliance with the provisions of this Lease shall not be affected by the provisions of 11 U.S.C. § 362 or § 363, as 
  

 39 

 amended from time to time, or any analogous provisions of any superseding statute or any power of the bankruptcy court to
enjoin such taking of possession. 
  
 Without limiting the
foregoing, the parties intend that this agreement shall be treated as a lease for federal income tax purposes. 
  

 40 

 IN WITNESS WHEREOF, the Lessor and the Lessee have each caused this Lease to be duly executed as of the
day and year first above written. 
  

	 WELLS FARGO BANK NORTHWEST,
 NATIONAL ASSOCIATION,

	 not in its individual capacity (except as expressly
 stated herein) but solely as Owner Trustee, as Lessor

		
	 By:
	 	  

	 	 	 Name:
 Title:

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete
 Title:   President

 1Receipt of this original counterpart of the foregoing Lease is hereby acknowledged on this          day of
                            , 2001. 
  

	 MITSUI & CO., LTD.

		
	 By:
	 	  

	 	 	 Name:
 Title:

  

	1	 	This receipt and signature contained in the original counterpart only.

 APPENDIX A 
  
 LEASE OF THREE BOEING MODEL 767-200 AIRCRAFT 
  
 DEFINITIONS RELATING 
  
 TO 
  
 OPERATIVE AGREEMENTS 
  
 DATED AS OF AUGUST 21, 2001

  
 In each Operative Agreement, unless the context otherwise
requires: 
  
 (a) any term defined below by reference to another
instrument or document shall continue to have the meaning ascribed thereto whether or not such other instrument or document remains in effect; 
  
 (b) words importing the singular include the plural and vice versa; 
  
 (c) words importing a gender include any gender; 
  
 (d) a reference to a part, clause, party, section, article, exhibit or schedule is a reference to a part and clause of, and
a party, section, article, exhibit and schedule to, such Operative Agreement; 
  
 (e) a reference to any statute, regulation, proclamation, ordinance or law includes all statutes, regulations, proclamations, ordinances or laws varying, consolidating or replacing them, and a reference to a statute
includes all regulations, proclamations and ordinances issued or otherwise applicable under the statute; 
  
 (f) a reference to a document defined or referred to herein shall be deemed references to such document as the terms thereof may have been or may be
amended, supplemented, waived or otherwise modified from time to time in accordance with their respective terms and as permitted in accordance with the provisions of the Participation Agreement; 
  
 (g) a reference to a party to a document includes that party’s
permitted successors and permitted assigns; 
  
 (h) the phrase
“without limitation” shall always be deemed to follow “include” or “including”; 
  
 (i) references to sub-sections or sub-clauses are to be construed as references to a sub-section or sub-clause of the section or clause in which such
reference appears; 
  
 (j) section and clause headings and the
table of contents in each Operative Agreement are inserted for convenience of reference only and shall be ignored in the interpretation of said Operative Agreement; and 

 (k) except as otherwise provided in the Operative Agreements, all references to the Lessee, Owner
Trustee, or the Finance Lessor shall be deemed to refer to such Person however designated in the Operative Agreements, so that (X) a reference to the rights or duties of the Owner Trustee under the Operative Agreements shall be deemed to include the
rights or duties of such Person as the Lessor under the Lease, as the Guaranteed Party under the Guaranty, as Assignor under the Assignment Agreement, and as Finance Lessee under the Finance Lease and (Y) a reference to the rights or duties of the
Finance Lessor under the Operative Documents shall be deemed to include the rights or duties of such Person as the Assignee under the Assignment Agreement. 
  
 “Actual Knowledge” means, as it applies to any party to the Operative Agreements, actual knowledge of, including any written notices
received by, a Responsible Officer of such party. 
  
 “Additional Insureds” means the Lessor as owner of the Aircraft, the Participants and when used in Section 11(a) of the Lease, it also includes the Trust Company in its individual capacity. 
  
 “Affiliate” of any Person means any other Person directly or
indirectly controlling, directly or indirectly controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, the term “control” (including the correlative meanings of the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
policies of such Person, whether through the ownership of voting securities or by contract or otherwise, provided (but without limiting the foregoing) that no pledge of voting securities of any Person without the current right to exercise
voting rights with respect thereto shall by itself be deemed to constitute control over such Person. 
  
 “After-Tax Basis” shall mean, in the case of any amount payable to or on behalf of any Indemnified Person, that such amount shall be
increased so that net of all Taxes (after giving effect to any current deductions, allowances or reliefs arising therefrom or from the expense or liability for which the underlying payment is made) actually (except as provided below) required to be
paid by such Indemnified Person with respect to the receipt or accrual by it of such increased amount, the remaining amount shall be equal to the amount otherwise payable. For purposes of computing the net amount of Taxes actually required to be
paid by the Owner Participant or any Affiliate thereof, such Person shall be presumed to be subject to United States Federal income tax as the minimum marginal statutory rate of United States Federal income tax generally applicable to corporations
from time to time. 
  
 “Aircraft” means each of
the Airframes, together with the two Engines initially installed on each such Airframe when delivered and leased under the Lease (or any Replacement Engine), whether or not any of such initial or substituted Engines may from time to time be
installed on such Airframe or on any other airframe. 
  
 “Aircraft Documentation” means with respect to any Aircraft, Engine or Part, (a) all books, logs, manuals and data, and inspection, maintenance, modification and overhaul records (including all job cards) and any
certificates or documents as are required to be maintained with 
  

 2 

 respect to such Aircraft, Engine or Part under applicable rules and regulations of the FAA or by applicable guarantees or
warranties of any manufacturer or supplier of any Aircraft, Engine or Part or by any applicable requirements of any insurer to be kept or maintained with regard to such Aircraft, Engine or Part and (b) all such records as shall be necessary to
constitute complete, accurate and current records (i) in accordance with good aeronautical practice of flights made by such Aircraft, Engine or Part, (ii) of all maintenance modifications and repairs carried out and all incidents and damage
occurring to such Aircraft, Engine or Part and (iii) to show the location of such Aircraft, Engine or Part. 
  
 “Airframe” means (a) as the context may require, any or all of the Boeing 767-200 airframes (excluding Engines or engines from time to
time installed thereon), to be acquired by the Owner Trustee under the Participation Agreement and to be leased by the Owner Trustee to the Lessee under the Lease and a Lease Supplement (such airframe to have the United States Federal Aviation
Administration Registration Number and Manufacturer’s serial number specified in such Lease Supplement) as more particularly described in the Lease Supplement covering such Airframe, and (b) any and all Parts, so long as the same shall be
incorporated or installed in or attached to such Airframe or so long as title thereto shall remain vested in the Lessor in accordance with the terms of Section 8(a) of the Lease after the removal from such Airframe. 
  
 “Applicable Laws” means all applicable laws, ordinances,
judgments, decrees, injunctions, writs and orders of any court, arbitrator or Governmental Authority and rules, regulations, orders, interpretations, licenses and permits of any Governmental Authority. 
  
 “Applicable Tax Laws” has the meaning set forth in Section
15(a) of the Participation Agreement. 
  
 “Appraisal
Procedure” means the procedure specified in the succeeding sentences for determining an amount, value or period as the case may be. If either party to the Lease shall have given written notice to the other party requesting determination of
such amount, value or period by the Appraisal Procedure, the Owner Trustee shall appoint a qualified independent appraiser within 15 days after notice is given. If the Lessee concurs with the amount, value or period determined by the appraiser, such
appraiser’s determination shall be final; if the Lessee does not so concur, the Lessee shall so notify the Owner Trustee and within 15 days after receipt of the appraisal of the Owner Trustee’s appraiser, the Lessee may appoint its own
qualified independent appraiser. If the amount, value or period determined by the Lessee’s appraiser differs from the amount, value or period determined by the Owner Trustee’s appraiser, then the two appraisers shall jointly appoint a
third independent appraiser within 30 days after the Owner Trustee has received the appraisal of the Lessee’s appraiser. If no such third appraiser is appointed within 30 days after receipt of such appraisal, either party may apply to the
American Arbitration Association to make such appointment, and both parties shall be bound by any such appointment. Any appraiser appointed pursuant to the foregoing procedure shall be instructed to determine the amount, value or period within 30
days after his appointment. If three appraisers shall be appointed, the determination of the appraiser that shall differ most from the average of the other two shall be excluded, the remaining two determinations shall be averaged and such average
shall constitute the determination of the appraisers; provided, however, that if the determinations of two appraisers shall diverge equally from such average, all three 
  

 3 

 determinations shall be averaged and such average shall constitute the determination of the appraisers. The fees and
expenses of appraisers shall be paid (i) in the case of Section 15 of the Lease or Section 15 of the Participation Agreement, by the Lessee and (ii) in all other cases, equally by the Lessee and the Lessor. 
  
 “Approved Air Carrier” means United Parcel Service, Inc. and
FedEx Corporation. 
  
 “Assignment Agreement”
means the Assignment Agreement dated August 21, 2001, between the Owner Trustee, as assignor and the Finance Lessor, as assignee. 
  
 “Airframe Warranty Assignment” means (i) with respect to each Aircraft, the Maintenance Warranty Assignment dated as of August 21, 2001
between Lessee, as assignor, and Owner Trustee, as assignee, and acknowledged by Triad International Maintenance Corporation and (ii) with respect to the Aircraft bearing Manufacturer Serial Numbers 23018 and 23019 respectively, the Modification
Warranty Assignment dated as of August 21, 2001 between Lessee, as assignor, and Owner Trustee, as assignee, and acknowledged by Israel Aircraft Industries Ltd., in each case, in the form attached to the Participation Agreement as Exhibit B.

  
 “Bankruptcy Code” means the Bankruptcy Code
of 1978, as amended, or any comparable successor law. 
  
 “Basic Rent” means (a) for purposes of the Lease, the rent payable pursuant to Section 3(b) of the Lease, (b) for purposes of the Finance Lease, the rent payable pursuant to Section 3(b) of the Finance Lease, and (c) for
purposes of the other Operative Agreements, as the context may require, the either or both of the meanings set forth in (a) and (b) above. 
  
 “Basic Term” means the period specified for such term in Exhibit E to the Lease, or such shorter period as may result from earlier
termination of the Lease as provided therein. 
  
 “Basic
Term Commencement Date” means the Delivery Date. 
  
 “Bill of Sale” means a full warranty bill of sale covering an Aircraft executed by the Lessee in favor of the Owner Trustee. 
  
 “Business Day” means any day of the year other than a Saturday, Sunday or a holiday on which banks are required or authorized by law to
close in New York, New York and if the applicable day relates to the fixing of the LIBO Rate or a notice with respect to the LIBO Rate, a day on which dealings in U.S. deposits are also carried on in the London interbank Eurodollar market and banks
are open for business in London. 
  
 “Certificated Air
Carrier” means a United States domestic air carrier engaged in regularly scheduled air transportation of passengers or property within the United States that is a citizen of the United States (as defined in Section 40102(a)(15) of the
Federal Aviation Act) holding an air carrier operating certificate issued by the Secretary of Transportation pursuant to Chapter 447 of the Federal Aviation Act for aircraft capable of carrying ten or more individuals or 6,000 pounds or more of
cargo. 
  

 4 

 “Change in Law” means, in each case after the Delivery Date, any implementation,
introduction, abolition, withdrawal or variation of any Applicable Law, regulation, published practice or concession or official directive, ruling, request, notice, guideline. statement of policy or practice statement by any Governmental Authority
(whether or not having the force of law but in respect of which compliance by banks or other financial institutions in the relevant jurisdiction is generally, customary) or any change in any interpretation, or the introduction or making of any new
or further interpretation, or any new or different interpretation by any court, tribunal, governmental, revenue, international, national, fiscal or other competent authority or compliance with any new or different request or direction (in either
case whether or not having the force of law but in respect of which compliance by banks or other financial institutions in the relevant jurisdiction is generally customary) from any Governmental Authority. 
  
 “Civil Reserve Air Fleet Program” means the Civil Reserve
Air Fleet Program administered by the United States Government pursuant to Executive Order 11490, as amended, as superseded by Executive Order 12656, or any substantially similar program of the United States Government. 
  
 “Code” means the Internal Revenue Code of 1986, as amended,
and any reference to a provision or provisions of the Code shall also mean and refer to any successor provision or provisions, however designated or distributed. 
  
 “Collateral” has the meanings specified in the Finance Lease and the Assignment Agreement. 
  
 “Collateral Agreements” means any of the Operative
Agreements included in the Collateral specified in this Finance Lease or in the Assignment Agreement. 
  
 “Commitment”, as to any Participant, means the amount specified as its Commitment opposite its name in Schedule I to the Participation
Agreement. 
  
 “Consolidated Tangible Net Worth”
means, with respect to any Person, the total of all assets of such Person and its subsidiaries, less the sum (without duplication) of: (1) the amount, if any, at which intangible assets (including goodwill, trade names, trademarks, patents, and
organization expense) and unamortized debt discount and expense appear on such balance sheet, (2) any write-up of fixed assets after the Delivery Date and (3) all liabilities. 
  
 “Default” means an Event of Default or an event or condition that, with the giving of notice or the lapse
of time or both, would become an Event of Default. 
  
 “Delivery Date” means, with respect to the Aircraft, such date (not later than August 23, 2001), as shall be designated by the Lessee in accordance with Section 3(a) of the Participation Agreement, on which the Aircraft are
sold to the Owner Trustee and leased by the Owner Trustee to the Lessee. 
  
 “Delivery Notice” means the notice to be issued and delivered by the Lessee in respect of the scheduled Delivery Date for an Aircraft pursuant to Section 3(a) of the Participation Agreement.

  

 5 

 “Dollars” and “$” means lawful currency of the United States of
America. 
  
 “Engine” means (a) each of the
General Electric model CF6-80A engines listed by manufacturer’s serial number in a Lease Supplement, and originally installed on the Airframe covered by such Lease Supplement, whether or not from time to time thereafter installed on an Airframe
or any other airframe, (b) any Replacement Engine, whether or not from time to time thereafter installed on an Airframe or any other airframe and (c) any and all Parts, so long as the same shall be incorporated or installed in or attached to an
Engine or so long as title thereto shall remain vested in the Lessor in accordance with the terms of Section 8 of the Lease after the removal from such Engine. The term “Engines” means, as of any date of determination, all Engines then
leased under the Lease. 
  
 “Engine Manufacturer”
means General Electric Company, a New York corporation. 
  
 “Engine Warranty Assignment” means, with respect to each Aircraft, the Engine Warranty Assignment dated as of August 21, 2001, between Lessee, as assignor, and Owner Trustee, as assignee, and acknowledged by Delta Airlines,
Inc., in the form attached to the Participation Agreement as Exhibit B. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any comparable successor law. 
  
 “Event of Default” has the meaning specified in Section 14 of the Finance Lease. 
  
 “Event of Loss”, with respect to any Aircraft, any Airframe
or any Engine means any of the following event: (a) the destruction of such property, (b) damage to such property that renders repair uneconomic or that renders such property permanently unfit for normal use, (c) any damage to such property that
results in an insurance settlement with respect to such property on the basis of a total loss or a constructive or compromised total loss, (d) the confiscation or condemnation of, or requisition of or taking of title to, such property by any
Governmental Authority or purported governmental authority, (e) the theft, hijacking or disappearance of such property for a period in excess of the lesser of 30 consecutive days and the balance of the relevant Lease Term, (f) the seizure of, or
requisition of use of, such property by any Governmental Authority or purported governmental authority, provided that in the case of any Aircraft or any Airframe such seizure or requisition shall have resulted in the loss of possession of such
property by the Lessee (or, if any sublease is then in effect, any sublessee) for a period in excess of the lesser of (i) the balance of the relevant Lease Term, (ii) (A) in the case of a seizure or requisition by a United States Governmental
Authority, 180 consecutive days or (B) in the case of a seizure or requisition by any other Governmental Authority, 30 consecutive days, and (iii) the date of receipt of insurance or condemnation proceeds with respect thereto, (g) as a result of any
rule, regulation, order or other action by the FAA or other governmental body of the Government of Registry of the Aircraft having jurisdiction, the use of such property for the transportation of cargo in the normal course of the business of air
transportation shall have been prohibited for a period of three consecutive months or unless the Lessee (or, if a sublease is then in effect, the sublessee), prior to the expiration of such three-month period, shall have undertaken and shall be
diligently carrying forward all steps that are necessary or desirable to permit the normal use of such property by the Lessee (or, if a sublease is then in effect, the sublessee) or, in 
  

 6 

 any event, if such use shall have been prohibited for a period of six consecutive months or shall have been prohibited
beyond the end of the relevant Lease Term, (h) any divestiture of title to an Engine treated as an Event of Loss pursuant to clause (ii) or (v) of the first paragraph of Section 7(c) of the Lease or (i) with respect to an Engine, the failure of such
Engine to remain attached to an Airframe for thirty five (35) consecutive days; provided that, this clause (i) shall not apply during any period when such Engine is undergoing maintenance in accordance with Section 7(a)(ii) of the
Lease or is installed on another airframe in accordance with Section 7(c) of the Lease. An Event of Loss with respect to any Aircraft shall be deemed to have occurred if an Event of Loss shall have occurred with respect to the Airframe that is part
of such Aircraft. 
  
 “Event of Loss Payment
Date” has the meaning set forth in Section 10(a) of the Lease. 
  
 “Excepted Payments” means (a) proceeds of public liability insurance in respect of any Aircraft payable as a result of insurance claims made, or losses suffered, by the Trust Company in its individual capacity or by the
Owner Participant, (b) proceeds of insurance maintained with respect to any Aircraft by or for the benefit of the Owner Participant (whether directly or through the Owner Trustee) pursuant to Section 11(e) of the Lease, (c) payments of Supplemental
Rent by the Lessee due under Section 14 of the Participation Agreement (or under Section 3(e) of the Lease in respect thereof), (d) Transaction Costs paid or payable by the Lessee to the Trust Company, the Owner Trustee or the Owner Participant,
pursuant to Section 17 of the Participation Agreement and (e) any right to enforce the payment of any amount described in clauses (a) through (d) above and the proceeds thereof. For the purposes of this definition, the terms Trust Company, Owner
Trustee and Owner Participant shall include all Indemnified Persons related thereto. 
  
 “Expense” has the meaning set forth in Section 14(a) of the Participation Agreement. 
  
 “FAA” means the United States Federal Aviation Administration and any successor agency or agencies thereto. 
  
 “FAA Bill of Sale” means an AC Form 8050-2 Bill of Sale
covering an Aircraft, executed by the Lessee, as seller in favor of the Owner Trustee, as purchaser, and dated the Delivery Date. 
  
 “Fair Market Rental Value”, as to any Aircraft, means the fair market rental value that would be obtained in an arm’s-length
transaction between an informed and willing lessee and an informed and willing lessor, in either case under no compulsion, respectively, to lease, for the lease of such property, assuming that Sections 5 and 7 of the Lease shall have been complied
with in all respects (except for purposes of Section 15 of the Lease, in which case such Aircraft shall be valued on an “as-is, where-is” basis), which fair market rental value has been either agreed upon by the Lessor and the Lessee or,
in the absence of such agreement, determined by the Appraisal Procedure. 
  
 “Fair Market Sales Value”, as to any Aircraft, means the fair market sales value of the Aircraft that would be obtained in an arm’s-length transaction between an informed and willing buyer (other
than a scrap dealer or a dealer in used equipment) and an informed and willing seller, under no compulsion, respectively, to buy or sell, assuming that Sections 5 and 7 of the 
  

 7 

 Lease shall have been complied with in all respects (except for purposes of Section 15 of the Lease, in which case such
Aircraft shall be valued on an “as-is, where-is” basis), which fair market sales value has been either agreed upon by the Lessor and the Lessee or, in the absence of such agreement, determined by the Appraisal Procedure. 
  
 “Federal Aviation Act” means Title 49 of the United States
Code, as amended from time to time, or any replacement thereof. 
  
 “FedWire” means the funds transfer system used to transfer reserve balances for immediate available credit among the member banks of the United States Federal Reserve System. 
  
 “Finance Lease” or “Finance Lease
Agreement” means the Finance Lease Agreement dated as of August 21, 2001, between the Finance Lessor and the Owner Trustee. 
  
 “Finance Lease Supplement” means each Finance Lease Supplement, (a) substantially in the form of Exhibit A to the Finance Lease, with
respect to any Finance Lease Supplement delivered pursuant to Section 2 of the Finance Lease and describing the Aircraft covered by such Finance Lease Supplement, or (b) in such form, with appropriate modification, with respect to a Finance Lease
Supplement delivered pursuant to any other provision of the Finance Lease. 
  
 “Finance Lessee” means the Owner Trustee as lessee under the Finance Lease. 
  
 “Finance Lessor” means Mitsui & Co., Ltd, a Japanese corporation. 
  
 “Fixed Rent” has the meaning set forth in Exhibit D to the Finance Lease. 
  
 “Floating Rate” has the meaning set forth in Exhibit D to
the Finance Lease. 
  
 “Government of Registry”
means the United States of America and any agency or instrumentality thereof. 
  
 “Governmental Authority” means any U.S. federal, state, county, municipal or other governmental or regulatory authority, agency, board, body, commission, instrumentality, court or quasi-governmental
authority or similar non-U.S. authority. 
  
 “Guaranty” means the Guaranty dated as of August 21, 2001 made by each of the Guarantors in favor of the Owner Trustee. 
  
 “Guarantors” means, as the context may require, either or both of (a) Airborne, Inc., a Delaware corporation, and (b) Airborne Express,
Inc., a Delaware corporation. 
  
 “Holder” means
any holder of an interest in the Finance Lease. 
  
 “Indemnified Persons” means the Owner Participant, the Finance Lessor, the Remarketing Agent, the Owner Trustee (both in its individual capacity and as Owner Trustee), the Trust Estate, and the respective successors and
assigns thereof, and the officers, directors, servants, agents and Affiliates of any thereof. 
  

 8 

 “Lease” or “Lease Agreement” means the Lease Agreement dated as of
August 21, 2001, between the Owner Trustee and the Lessee. 
  
 “Lease Default” means a Lease Event of Default under the Lease or an event or a condition that, with the giving of notice or lapse of time or both, would become a Lease Event of Default. 
  
 “Lease Event of Default” means any event or condition
defined as a “Lease Event of Default” in Section 14 of the Lease. 
  
 “Lease Supplement” means each Lease Supplement, (a) substantially in the form of Exhibit A to the Lease, with respect to any Lease Supplement delivered pursuant to Section 2 of the Lease and
describing the Aircraft covered by such Lease Supplement, or (b) in such form, with appropriate modification, with respect to a Lease Supplement delivered pursuant to any other provision of the Lease. 
  
 “Lease Term” means the Term. 
  
 “Lessee” means ABX Air, Inc., a Delaware corporation.

  
 “Lessee Party” means, as the context may
required, any or all of the Lessee and the Guarantors. 
  
 “Lessor” means the Owner Trustee as lessor under the Lease. 
  
 “Lessor Liens” means any Lien on the Trust Estate arising as a result of (a) claims against the Lessor, the Trust Company, in its individual capacity, or the Owner Participant, that are not related to
the transactions contemplated by the Operative Agreements, (b) any act or omission of the Owner Participant, the Lessor or the Trust Company, in its individual capacity, that is not related to the transactions contemplated by the Operative
Agreements or is in violation of any of the terms of the Operative Agreements, (c) claims against the Owner Participant, the Lessor, the Trust Company (in its individual capacity), the Trust Estate, or the trust created by the Trust Agreement, with
respect to Expenses (as such term is defined in Section 14 of the Participation Agreement) or Taxes against which the Lessee is not required to indemnify the Owner Participant, the Lessor, the Trust Company (in its individual capacity), the Trust
Estate, or the trust created by the Trust Agreement, pursuant to Section 14 of the Participation Agreement or (d) claims against the Lessor or the Owner Participant arising out of any voluntary transfer by the Lessor or the Owner Participant of all
or any portion of the respective interests of the Lessor or the Owner Participant in any Aircraft, the Trust Estate or the Operative Agreements other than a transfer of an Aircraft pursuant to Section 10 of the Lease, a transfer pursuant to the
exercise of the remedies set forth in Section 15 of the Lease, or any other transfer following a Lease Event of Default; provided, however, that any Lien which is attributable solely to the Trust Company or the Owner Participant and
would otherwise constitute a Lessor Lien hereunder shall not constitute a Lessor Lien hereunder (but without limiting the ultimate responsibility of such Person with respect to such Lien) so long as (a) the existence of such Lien poses no material
risk of the sale, forfeiture or loss of any Airframe or any Engine or any interest therein, (b) the existence of such Lien does not interfere in any way with the use or operation of any Aircraft by 
  

 9 

 the Lessee and (c) the Trust Company or the Owner Participant, as the case may be, is diligently contesting such Lien by
appropriate proceedings. 
  
 “Lessor’s Cost”
means the amount set forth in Exhibit E to the Lease. 
  
 “Letter of Credit” means an irrevocable standby letter of credit in substantially the form of Exhibit B to the Lease issued by Wachovia Bank N.A. or another financial institution chartered in the United States
reasonably acceptable to Lessor and the Finance Lessor. 
  
 “LIBO Rate” means, in relation to any Rent Period for any Aircraft and any unpaid sum and any period for which the same is to be established, the rate per annum determined by the Finance Lessor to be the arithmetic mean
(rounded upwards, if not already such a multiple, to the nearest whole multiple of one-sixteenth of one percent (1/16%) of the offered rates (if any) appearing on Telerate page 3750 of the British Bankers’ Association LIBOR screen (or any
replacement page) for deposits in Dollars equal, or as close as practicable, to the period for which such rate is to be determined at 11:00 a.m. (London time) on second Business Day in London prior to the first day of such Rent Period or other
period; provided that, if at 11:00 a.m. (London time) on the relevant date for determination no such rate is appearing on Telerate page 3750 of the British Bankers’ Association LIBOR screen, then the “LIBO Rate” means the rate
per annum determined by the Finance Lessor to be the rate at which the Finance Lessor obtains its LIBOR funding of the Outstanding Purchase Price for such Aircraft for such Rent Period or other period (or as close as practicable to such periods) on
the determination date for such Rent Period or other period. 
  
 “LIBOR Break Funding Amount” means the amount, if any, required to compensate Finance Lessor for any losses, costs or expenses which it may incur as the result of the prepayment or payment, or the failure to make any such
prepayment or payment on the date irrevocably scheduled therefor, of any Basic Rent or Stipulated Loss Value under the Finance Lease on a date other than the last day of the then current Rent Period therefor for any reason whatsoever, whether as a
result of a voluntary or mandatory prepayment or an Event of Default or otherwise, which amount shall equal the excess, if any, of (i) the amount of interest which otherwise would have accrued on the amount so prepaid or paid to the last day of such
Rent Period (the “Break Period”) at the LIBO Rate therefor over (ii) the interest component of the amount Finance Lessor would have bid in the London interbank market for Dollar deposits of leading banks in amounts comparable to such
principal amount and with maturities comparable to the Break Period (as determined by the Finance Lessor). In connection with any demand by the Finance Lessor for the payment of any LIBOR Break Funding Amounts, the Finance Lessor shall furnish the
Finance Lessee and the Lessee a certificate setting forth in reasonable detail the computation of such amount. 
  
 “Lien” means any lien, mortgage, encumbrance, pledge, charge, lease, easement, servitude, disposition of title, right of others, security
interest or claim of any kind, including any thereof arising under any conditional sale or other title retention agreement. 
  
 “Maintenance Reserves” has the meaning set forth in Section 8(q) of the Participation Agreement. 
  

 10 

 “Management Agreement” means the Management Agreement dated as of August 15, 2001
between the Owner Participant and Tombo Aviation Inc., as the manager. 
  
 “Manufacturer” means The Boeing Company, a Delaware corporation. 
  
 “Non-U.S. Person” means any financial institution or corporation not organized under the laws of the United States of America or any state thereof. 
  
 “New Trustee” has the meaning set forth in Section 16(b) of
the Participation Agreement. 
  
 “Officer’s
Certificate” means, as to any corporation, a certificate of such corporation signed in its name and on its behalf by the President, any Vice President, any Assistant Vice President, the Secretary, the Treasurer or any Assistant Treasurer of
such corporation and, as to any other entity, a certificate of any such entity signed in its name and on its behalf by any individual generally authorized to execute and deliver contracts, or generally or specifically authorized to execute and
deliver certificates under the Operative Agreements, on behalf of such entity. 
  
 “Operative Agreements” means the Participation Agreement, the Trust Agreement, the Lease (including any Lease Supplements), the Guaranty, the Assignment Agreement, the Finance Lease (including any
Finance Lease Supplements), each FAA Bill of Sale, each Bill of Sale, each OT Bill of Sale, the Management Agreement, the Airframe Warranty Assignment and the Engine Warranty Assignment. 
  
 “Opinion of Counsel” means an opinion of counsel selected by the Lessee and expert in the laws of the
jurisdiction to which such opinion relates, such counsel, and the form and scope of such opinion, to be satisfactory to the Lessor and each Participant. 
  
 “OT Bill of Sale” means a full warranty bill of sale covering an Aircraft executed by the Owner Trustee in favor of the Finance Lessor.

  
 “Outstanding Purchase Price” means, with
respect to an Aircraft on any day, the Stipulated Loss Value for such Aircraft under the Finance Lease on the last Rent Payment Date immediately preceding such day. 
  
 “Overall Transaction” means all the transactions and activities referred to in, effected by, or
contemplated by the Operative Agreements. 
  
 “Overdue
Rate” means a per annum interest rate equal to the greater of the Prime Rate or the Floating Rate, plus in either case 2% per annum, computed on the basis of the actual number of days elapsed over a year of 360 days. 
  
 “Owner Participant” means the Person executing the
Participation Agreement as the Owner Participant, and its successors and permitted assigns, and shall also include any Person to which such Person (or any successor) shall transfer its right, title and interest in and to the Trust Estate in
accordance with Section 18 of the Participation Agreement. 
  

 11 

 “Owner Trustee” means Wells Fargo Bank Northwest, National Association, a national
banking association, not in its individual capacity (except as expressly provided in the Participation Agreement and the Finance Lease) but solely as trustee under the Trust Agreement, and its successors as trustee thereunder. 
  
 “Participant” means, as the context may require, either or
both of the Owner Participant and the Finance Lessor. 
  
 “Participation Agreement” means the Participation Agreement dated as of August 16, 2001, among the Lessee, the Finance Lessor, the Owner Participant and the Owner Trustee. 
  
 “Parts” means all appliances, parts, accessories,
furnishings and instruments, appurtenances, other equipment (including all buyer-furnished and buyer-designated equipment) of whatever nature (other than complete Engines or engines) which may from time to time be incorporated or installed in or
attached to an Airframe or any Engine and (b) any Replacement Part which may from time to time be substituted for a Part leased under the Lease; all such appliances, parts, instruments, appurtenances, accessories, furnishings and other equipment
removed from an Airframe or any Engine so long as title thereto shall remain vested in Lessor in accordance with the terms of Section 8 of the Lease or the same shall be subject to the Lien of the Finance Lease. 
  
 “Permitted Investments” means (i) direct obligations of the
United States of America and agencies guaranteed by the United States government having a final maturity of 90 days or less from date of purchase thereof; (ii) certificates of deposit issued by, bankers’ acceptances of, or time deposits with,
any bank, trust company or national banking association incorporated or doing business under the laws of the United States of America or one of the states thereof having combined capital and surplus and retained earnings as of its last report of
condition of at least $500,000,000 and having a long-term debt rating of AA or better by Standard & Poor’s, a division of McGraw-Hill Inc. (“S&P”), and Aa2 or better by Moody’s Investors Service, Inc.
(“Moody’s”) and having a final maturity of 90 days or less from date of purchase thereof; (iii) commercial paper of any holding company of a bank, trust company or national banking association described in clause (ii) and commercial
paper of any corporation or finance company incorporated or doing business under the laws of the United States of America or any state thereof having a rating assigned to such commercial paper of A1 by S&P and P1 by Moody’s (or, if neither
such organization shall rate such commercial paper at any time, a rating equal to the highest ratings assigned by any two nationally recognized rating organizations in the United States of America) and having a final maturity of 90 days or less from
the date of purchase thereof; or (iv) repurchase agreements with any financial institution having combined capital and surplus and retained earnings as of its last report of condition of at least $100,000,000 when subject to an executed master
repurchase agreement and which are fully collateralized by obligations described in clause (i) above where delivery must be taken, and having a final maturity of 90 days or less from the date of purchase thereof; provided that except for
investments described in clauses (i) and (iv) above, no more than the greater of $10,000,000 or 50% of the principal amount invested may be invested as “Permitted Investments” in any one corporation, bank holding company, bank,
trust company or national banking association at any given time. If none of the above investments are available, the entire amount to be invested may be used to purchase Federal Funds overnight from an entity described in clause (ii) above.

  

 12 

 Whenever a Lease Event of Default exists, “Permitted Investments” means only those investments described
in clause (i) above or in the preceding sentence. 
  
 “Permitted Liens” means (a) the respective rights of the Lessor and the Lessee as provided in the Lease and the rights of the Participants under the Trust Agreement, the Finance Lease and the Participation Agreement, (b)
the rights of others under agreements and arrangements to the extent permitted by the terms of Sections 7(c) and 8(b) of the Lease, (c) Lessor Liens, (d) Liens for taxes payable by the Lessee either not yet due or being contested in good faith (and
for the payment of which adequate reserves have been provided) by appropriate proceedings so long as such proceedings do not involve any material danger of the sale, forfeiture or loss of any Airframe, any Engine, any other part of the Collateral or
interest therein and do not interfere with the use of any Airframe or any Engine or any payment due under the Operative Agreements, (e) materialmen’s, mechanics’, workers’, repairers’, employees’, suppliers’, airport
operators’, air traffic control authorities’ or other like Liens arising in the ordinary course of business by operation of law, for amounts the payment of which is either not yet delinquent or is being contested in good faith (and for the
payment of which adequate reserves have been provided) by appropriate proceedings so long as such proceedings do not involve any material danger of the sale, forfeiture or loss of any Airframe, any Engine, any other part of the Collateral or
interest therein and do not interfere with the use of any Airframe or any Engine or any payment due under the Operative Agreements, (f) Liens arising out of judgments or awards against the Lessee with respect to which at the time an appeal or
proceeding for review is being prosecuted in good faith by appropriate proceedings so long as such proceedings do not involve any material danger of the sale, forfeiture or loss of any Airframe, any Engine, any other part of the Collateral or
interest therein and with respect to which there shall have been secured a stay of execution pending such appeal or proceeding for review, and (g) any other Lien with respect to which the Lessee shall have provided a bond or other security
satisfactory to the Lessor and the Finance Lessor; provided, that no Lien referred to in clauses (d), (e), (f) or (g) shall be a “Permitted Lien” if it involves a material risk of criminal liability to the Lessor, the Owner
Participant, or the Finance Lessor. 
  
 “Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Plan” means any “employee benefit plan” as
defined in Section 3(3) of ERISA. 
  
 “Prime
Rate” means the rate of interest publicly announced by Citibank, N.A. at its principal offices in New York, New York from time to time as its prime rate of interest. 
  
 “Purchase Price” shall have the meaning set forth in Exhibit E to the Finance Lease. 
  
 “Reasonable Basis” means the support required by American
Bar Association Formal Opinion 85-352 for a position which a lawyer may properly advise a client to take on a tax return in accordance with that opinion. 
  
 “Remarketing Agent” means the Person appointed by the Finance Lessor to act as the remarketing agent for the Aircraft and which may be an
Affiliate of the Finance Lessor. 
  

 13 

 “Renewal Term” means the period specified for such term in Exhibit E to the Lease, or
such shorter period as may result from earlier termination of the Lease as provided therein. 
  
 “Renewal Term Termination Date” means the date set forth in Exhibit E to the Lease. 
  
 “Rent” means Basic Rent and Supplemental Rent, collectively. 
  
 “Rent Payment Date” means, in relation to any Aircraft, each date specified as such in the Lease Supplement
and the Finance Lease Supplement relating to such Aircraft occurring during the Term for such Aircraft; provided that if a Rent Payment Date would otherwise be a day that is not a Business Day, then such Rent Payment Date shall be the next
succeeding Business Day unless the next succeeding Business Day would fall in the next succeeding calendar month, in which case such Rent Payment Date shall be the immediately preceding Business Day. 
  
 “Rent Period” means, with reference to any Aircraft, the
period commencing on and including the Delivery Date for such Aircraft and ending on, but not including, the first Rent Payment Date for such Aircraft thereafter, and thereafter, each successive period commencing on and including the last day of the
immediately preceding Rent Period for such Aircraft and ending on, but not including, the next succeeding Rent Payment Date for such Aircraft. 
  
 “Replacement Engine” means any engine substituted for an Engine pursuant to Section 10(b) of the Lease. 
  
 “Replacement Part” means any appliance, part, accessory,
furnishing, instrument, appurtenance, other item of equipment of whatever nature (other than complete Engines or engines) which in each case shall be in compliance with the requirements of the Lease and shall have been leased under the Lease and
subjected to the Lien of the Finance Lease. 
  
 “Responsible Office” means, in the case of any corporation, the President, the Treasurer, the Secretary, any Vice President thereof or any officer of such corporation with responsibility for the transactions contemplated by
the Operative Agreements and, as to any other entity, any individual generally authorized to execute and deliver contracts on behalf of such entity and, in the case of the Owner Trustee, any vice president or trust officer in Corporate Trust
Administration of the Owner Trustee, or other officer who in the normal performance of his or her operational responsibility would have knowledge of such matters and the requirements with respect thereto. 
  
 “SEC” means the United States Securities and Exchange
Commission and any successor agencies thereto. 
  
 “Section 1110” means 11 U.S.C. § 1110, or any successor provision of United States bankruptcy law analogous in purpose and effect. 
  
 “Section 1110 Person” is a “citizen of the United States,” as such term is used in 49 U.S.C.
§40102(a)(15), and is an air carrier holding a valid air carrier operating certificate issued pursuant to 49 U.S.C. Chapter 447 for aircraft capable of carrying 10 or more individuals or 6000 pounds or more of cargo. 
  

 14 

 “Secured Obligations” has the meanings specified in the Finance Lease and the Assignment
Agreement. 
  
 “Security Deposit” has the meaning
set forth in Exhibit E to the Lease. 
  
 “Specified
Default” means a Lease Default under Section 14(a), (b), (c), (d), (e), (h), (i), or (j) of the Lease. 
  
 “Stipulated Loss Value”, for any Aircraft as of any particular date of computation, means (a) for purposes of the Lease, an amount equal
to the amount set forth in Schedule II of the Lease Supplement for such Aircraft opposite the Stipulated Loss Value Date coinciding with such date (or, if not coincident, opposite the Stipulated Loss Value Date next preceding such date), (b) for
purposes of the Finance Lease, the sum of (i) the amount set forth under the heading “Stipulated Loss Value” opposite such date in Column B of Schedule II to the Finance Lease Supplement for such Aircraft (or, if such date is not a Rent
Payment Date, opposite the immediately preceding Rent Payment Date (or, in the case of any date prior to the first Rent Payment Date, opposite the Delivery Date therefor)) plus (ii) (if such date is not a Rent Payment Date) interest thereon,
calculated at the relevant Floating Rate for the Rent Period during which the Stipulated Loss Value is to be paid, for the number of days from (and including) such immediately preceding Rent Payment Date (or the Delivery Date, as the case may be) to
but excluding the date on which such Stipulated Loss Value becomes payable and calculated on the basis of a 360 day year and actual number of days elapsed, and (c) for purposes of the other Operative Agreements, as the context may require, either or
both of the meanings set forth in clauses (a) and (b) above. 
  
 “Stipulated Loss Value Date” for any Aircraft shall mean each date on Schedule II of the Lease Supplement for such Aircraft. 
  
 “Substitute Aircraft” shall mean an aircraft owned by the Lessee consisting of a Boeing 767-200 airframe together with two General
Electric Model CF6-80A engines installed thereon, and which aircraft is in substantially similar condition and appraised value as the Aircraft available for delivery on the Delivery Date, satisfies each of the conditions precedent set forth in
Section 5 of the Participation Agreement, and is otherwise reasonably acceptable to the Finance Lessor. If the replacement of any Aircraft with a Substitute Aircraft and the delivery of such Substituted Aircraft in accordance with the terms and
conditions of the Participation Agreement and the other Operative Agreements, such Substitute Aircraft shall be deemed to be an Aircraft for all purposes under the Operative Agreements. 
  
 “Supplemental Rent” means any and all amounts, liabilities and obligations, other than Basic Rent, that the
Lessee, or the Finance Lessee, as the context may require, assumes or agrees to pay under any Operative Agreement. 
  
 “Supplier” means the Manufacturer and any other manufacturer, supplier, contractor or subcontractor (other than the Lessee) of an
Aircraft or any component thereof, including the Engines. 
  
 “Tax” or “Taxes” shall mean any and all governmental license, documentation, registration, re-registration, landing or similar fees, and any and all taxes (including, without limitation, gross or net
income, gross or net receipts, sales, use, value-added, ad valorem, 
  

 15 

 franchise, business transfer, capital, property (tangible and intangible), excise, minimum or alternative minimum taxable
income, tax preferences, excess profits, accumulated earnings, capital gains, doing business, net worth and stamp taxes), levies, imposts, duties, charges or withholdings, together with any penalties, fines or interest thereof or additions thereto
imposed by any Federal, state or local government or other taxing authority within the United States or by any foreign or international government or taxing authority. 
  
 “Term” means (a) for purposes of the Lease, the period of the leasing of an Aircraft to the Lessee pursuant
to the Lease, including the Basic Term and, if applicable, the Renewal Term, (b) for purposes of the Finance Lease means the period of the leasing of an Aircraft to the Finance Lessee pursuant to the Finance Lease as specified in Exhibit E to the
Finance Lease, or such shorter period as may result from earlier termination of the Finance Lease as provided therein, and (c) for purposes of the other Operative Agreements, as the context may require, either or both of the meanings set forth in
clauses (a) and (b) above. 
  
 “Transaction
Costs” means the following fees, expenses, disbursements and costs, to the extent incurred in connection with the preparation, negotiation, execution and delivery of the Operative Agreements and the purchase and lease of the Aircraft on the
Delivery Date: 
  

	 	1.	 	the fees, expenses and disbursements of counsel referred to in paragraphs (n), (p) and (q) of Section 5 of the Participation Agreement, and any other counsel or special counsel for
any of the parties thereto for services rendered in connection with any such transactions by any of such counsel, other than any counsel for the Lessee; 

  

	 	2.	 	the fees, expenses and disbursements of the Owner Trustee incurred on or prior to the Delivery Date in connection with such transactions; 

  

	 	3.	 	the fee and out-of-pocket disbursements of the Finance Lessor or any of its Affiliates in connection with such transactions; 

  

	 	4.	 	the fees, expenses and disbursements of the appraiser referred to in Section 5(k) of the Participation Agreement; 

  

	 	5.	 	all fees, taxes and other charges payable in connection with the recording or filing of instruments and financing statements described in the Participation Agreement or required
pursuant to the provisions of the Finance Lease. 

  
 “Trust Agreement” means the Trust Agreement dated as of August 21, 2001, between the Owner Participant and the Trust Company. 
  
 “Trust Company” means Wells Fargo Bank Northwest, National Association, a national banking association, in its individual capacity and
not as Owner Trustee, and its successors under the Trust Agreement, in their respective individual capacities and not as Owner Trustee. 
  
 “Trust Estate” means all estate, right, title and interest of the Owner Trustee in, to and under each Aircraft, the Trust Agreement, the
Lease, each FAA Bill of Sale, each Bill of Sale, the Participation Agreement and the Finance Lease and all other Collateral referred to in the 
  

 16 

 Finance Lease or the Assignment Agreement including, without limitation, (i) all amounts of Basic Rent, Supplemental
Rent, Stipulated Loss Value and other payments of any kind for or with respect to the Aircraft or payable under any of the foregoing and (ii) any or all payments or proceeds received by the Owner Trustee after the termination of the Lease with
respect to the Aircraft as the result of the sale, lease or other disposition thereof. 
  
 “Uniform Commercial Code” means the Uniform Commercial Code as in effect from time to time in the State of New York. 
  
 “Variable Rent” has the meaning set forth in Exhibit D of the Finance Lease. 
  

 17 

 EXHIBIT A to 
 Lease Agreement 
  
 LEASE
SUPPLEMENT NO. [    ] 
  
 LEASE
SUPPLEMENT NO. [    ], dated
                                        ,
between WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee under a Trust Agreement dated as of August 21, 2001 (such Owner Trustee, in its capacity as such Owner Trustee, being herein called
“Lessor’), and ABX AIR, INC. (“Lessee”). 
  
 The Lessor and the Lessee have heretofore entered into that certain Lease Agreement dated as of August 21, 2001, relating to three Boeing 767-200 aircraft (herein called the “Lease Agreement” and the defined terms therein being
hereinafter used with the same meanings). The Lease Agreement provides for the execution and delivery of Lease Supplements for the purpose of leasing the Aircraft under the Lease Agreement as and when delivered by the Lessor to the Lessee in
accordance with the terms thereof. 
  
 The Lease Agreement relates
to the aircraft and engines described in Schedule I hereto, and a counterpart of this Lease Supplement is attached thereto and made a part thereof and the Lease, together with this attachment, is being filed for recordation on the date hereof with
the Federal Aviation Administration as one document. 
  
 NOW,
THEREFORE, in consideration of the premises and other good and sufficient consideration, Lessor and Lessee hereby agree as follows: 
  
 1. The Lessor hereby delivers and leases to the Lessee under the Lease Agreement, and the Lessee hereby accepts and leases from the Lessor under the Lease
Agreement, the aircraft described in Schedule I hereto (the “Delivered Aircraft”). 
  
 2. The Delivery Date of the Delivered Aircraft is the date of this Lease Supplement set forth in the opening paragraph hereof. 
  

3. The Basic Term for the Delivered Aircraft shall commence on the Delivery Date and continue through the date specified in Exhibit E to the Lease
unless terminated earlier as provided in the Lease. 
  
 4.
“Rent Payment Date” means, with respect to the Delivered Aircraft, [            ], 2001, and each
[            ], [            ], [            ]
and [            ] thereafter occurring during the Basic Term, and if applicable, the Renewal Term for such Aircraft. 
  
 5. The Lessee hereby confirms its agreement to pay to the Lessor Basic Rent for the Aircraft in accordance with the Lease
Agreement, as supplemented by this Lease Supplement. 
  
 6. The
Lessee hereby confirms to the Lessor that the Lessee has accepted the Delivered Aircraft for all purposes hereof and of the Lease Agreement as being airworthy, in accordance with specifications, in good working order and repair and without defect or
inherent vice in title, condition, design, operation or fitness for use, and free and clear of all Liens except 

 Lessor Liens; provided, however, that nothing contained herein or in the Lease Agreement shall in any way
diminish or otherwise affect any right the Lessee or the Lessor may have with respect to the Aircraft against the Manufacturer, or any other Supplier or any subcontractor or supplier of the Manufacturer, or any other Supplier under any purchase
agreement or otherwise. 
  
 7. All of the terms and provisions of
the Lease Agreement are hereby incorporated by reference in this Lease Supplement to the same extent as if fully set forth herein. 
  
 8. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall, subject to the
immediately succeeding sentence, be an original, but all such counterparts shall together constitute but one and the same instrument. To the extent, if any, that this Lease Supplement constitutes Chattel Paper (as the term is defined in the Uniform
Commercial Code as in effect in any applicable jurisdiction), no security interest in this Lease Supplement may be created through the transfer or possession of any counterpart other than the original counterpart containing the receipt therefor
executed by the Finance Lessor on the signature page thereof. 
  
 9. THIS LEASE SUPPLEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 
  

 2 

 IN WITNESS WHEREOF, the Lessor and the Lessee have each caused this Lease to be duly executed as of the
day and year first above written. 
  
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity (except as expressly stated herein) but
solely as Owner Trustee, as
Lessor
		
	 By:
	 	  

	 	 	 Name: C. Scott Nielsen

	 	 	 Title: Vice President

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 IN WITNESS WHEREOF, the Lessor and the Lessee have each caused this Lease to be duly executed as of the
day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity (except as expressly stated herein) but
solely as Owner Trustee, as
Lessor
		
	 By:
	 	  

	 	 	 Name: C. Scott Nielsen

	 	 	 Title: Vice President

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 2Receipt of this original counterpart of the foregoing Lease Supplement No.             , is hereby acknowledged on this
             day of
                                ,
            . 
  

	MITSUI & CO., LTD.
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

 2 This receipt and signature contained in the original counterpart only. 

 SCHEDULE I 
 TO LEASE SUPPLEMENT NO. [        ] 
  
 DESCRIPTION OF AIRFRAME AND ENGINES 
  
 AIRFRAME 
  

	 Manufacturer

	 	 FAA Registration No.

	 	 Manufacturer’s Model

	 	 Manufacturer Serial No.

	 The Boeing Company
	 	 	 	767-200	 	 

  
 ENGINES 
  

	 Manufacturer

	 	 Manufacturer’s Model

	 	 Manufacturer Serial No.

	 General Electric Company
	 	CF6-80A	 	 
	 General Electric Company
	 	CF6-80A	 	 

  
 Each Engine is of 750
or more “rated take-off horsepower” or the equivalent of such horsepower. 

 SCHEDULE II 
 TO LEASE SUPPLEMENT NO. [        ] 
  
 Stipulated Loss Value Schedule3 
  

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

  

 3 Stipulated Loss Values are due in addition to any advance or arrears rent due on
the same date. 

 EXHIBIT B 
 to Lease Agreement 
  
 [FORM OF
LETTER OF CREDIT] 

 EXHIBIT C 
 to Lease Agreement 
  
 AIRCRAFT
DOCUMENTATION 
  
 The following documentation shall be delivered
with each Aircraft. The documentation shall be current and include all up to date revisions. 
  
 With respect to each Aircraft: 
  

	 	1.	 	Certificate of airworthiness (on aircraft) 

  

	 	2.	 	Certificate of registration (copy) 

  

	 	3.	 	Certificate of Sanitation (copy) 

  

	 	4.	 	Operator Specification for 767-200 

  

	 	5.	 	Certified summary of Airworthiness Directives for Airframe, Engines, APU and components (including, list of repetitive A.D.s), indicating applicability, method of compliance and
date (including next due). Dirty fingerprint records providing traceability back to birth. AMOC will be provided as applicable. 

  

	 	6.	 	Current Status 

  

	 	(a)	 	Status of time controlled components including landing gear showing intervals since last overhaul and time remaining in hours/cycles and/or days whichever is the limiting, factor.
Last shop report showing work done and release tags. 

  

	 	(b)	 	Certified status sheet with Airframe, Engine, APU and Landing Gear times at delivery including hour/cycle. 

  

	 	(c)	 	Listing for all major inspections done with dates and hours performed. 

  

	 	7.	 	All aircraft records, including but not limited to, those required to be kept in accordance with FAA regulation. 

  

	 	8.	 	List of all Modifications (including service bulletin reference) accomplished on each specific Aircraft, Engines, APU and Components. Copies of applicable STC certificates will be
provided. Copies of individual modification orders, with the exception of passenger cabin related modification orders, will be provided by operator on an item by item basis as requested within twenty-four (24) hours of such request and the
processing of any request will be expedited on special request. 

  

	 	9.	 	List of service bulletins incorporated in the Aircraft by each specific Aircraft. 

	 	10.	 	Copy of major repairs showing method of compliance and approvals with dates including FAA Form 8110-3. 

  

	 	11.	 	List of installed components, airframe, engines, landing gear. 

  

	 	12.	 	Landing gear life-limited parts must have continuous time in service traceable history to air carriers with FAA-approved or recognized (ICAO signatory) recordkeeping systems. Seller
will provide traceable operating history (documentation) for all landing gear life-limited parts installed at current overhaul back to manufacture installation. The documentation must be from a FAA-approved or ICAO-approved aircarrier.

  

	 	13.	 	Boeing original Readiness log, as available. 

  

	 	14.	 	Pilots reports/technical log books for last 6 months. 

  

	 	15.	 	Status as applicable showing compliance with SID Aging aircraft and CPC’s and actions due and indicating where aircraft has been in a fleet sampling program. Applicable
engineering, reports showing incorporation of maintenance planning document requirement for corrosion prevention and control program and SSI tasks into Operator’s Maintenance Program. 

  

	 	16.	 	All dirty fingerprint paperwork from last accomplishment of each maintenance event within the maintenance program. 

  

	 	17.	 	Last weighing report 

  

	 	18.	 	Certification of compliance with Burn certification. 

  

	 	19.	 	Listing of all oils and fluids. 

  

	 	20.	 	Powerplant and APU. The following shall be provided for each engine/APU. 

  

	 	(a)	 	Powerplant records at time of delivery including A.D. summary and Service Bulletin index and modification order listing showing method of compliance, dates, time and cycles of
inspection and dates, time and cycles of next inspection if necessary. AMOC will be provided as applicable. 

  

	 	(b)	 	Certified list of LLPs with back to birth records on the date of delivery with a trail providing a record of continuous time in service and time remaining on each LLP in hour/cycles
or time. 

  

	 	(c)	 	Copy of all shop visits including last test cell report. 

  

	 	(d)	 	List of all installed components and disk sheets. 

  

	 	(e)	 	Accident/Incident statement 

  

 2 

	 	(f)	 	ECM reports as available with not less than the last 6 months. 

  

	 	(g)	 	ETOPS compliance report if applicable or certified letter. 

  

	 	(h)	 	Certified statement as to use of OEM parts only. 

  

	 	(i)	 	Engine manual showing variation from the manufacturers overhaul procedures (green sheets / Production Permits/or equivalent). 

  

	 	(j)	 	Return to service document or tag for each engine. 

  

	 	(k)	 	List of all LRUs installed on each Engine by part number and serial number. 

  

	 	21.	 	FAA approved flight manual - 1 copy with the aircraft. 

  

	 	22.	 	Crew and Flight Operations manual - 1 copy with the aircraft. 

  

	 	23.	 	QRH-1 copy with the aircraft. 

  

	 	24.	 	Wiring diagram manual - 1 copy with the aircraft 

  

	 	25.	 	Wiring hookup charts and equipment list - 1 copy with the aircraft 

  

	 	26.	 	Boeing Weight and balance control and loading manual - 1 copy with the aircraft 

  

	 	27.	 	Aircraft maintenance manual with supplements - 1 copy with the aircraft 

  

	 	28.	 	IPC for aircraft, engines and APU - 1 copy with the aircraft. 

  

	 	29.	 	Structural repair manual - 1 copy per aircraft. 

  

	 	30.	 	Engine maintenance and build up manual - 1 copy with the aircraft. 

  

	 	31.	 	Cross reference document showing part numbers and manufacturer’s part number. 

  

	 	32.	 	Operator letter showing date of last flight data recorder readout and any discrepancies having been corrected in accordance with Maintenance Program. 

  

	 	33.	 	Electrical load analysis report. 

  

	 	34.	 	Emergency equipment inventory. 

  

	 	35.	 	Letter stating if aircraft was ever involved in an accident or incident. 

  

	 	36.	 	LOPA. 

  

	 	37.	 	Fault isolation manuals. 

  

 3 

	 	38.	 	Deferred items/engineering releases and maintenance carryovers, if any. 

  

	 	39.	 	Maintenance program JOB cards for “C” and “SC” checks, with tally card list for each check. 

  

	 	40.	 	Operator shall provide data reasonably necessary to bridge the Maintenance Program to the new Operator’s Maintenance Program. 

  

 4 

 EXHIBIT D 
 to Lease Agreement 
  
 BASIC RENT
SCHEDULE 
  
 (a) Basic Rent during the Basic Term. The
Basic Rent for each Aircraft with respect to the Basic Term shall be payable in arrears as follows: 
  
 (i) on the first Rent Payment Date, in an amount equal to the Variable Rent applicable to such Aircraft under the Finance Lease that has accrued from the
Delivery Date to such Rent Payment Date, and (ii) thereafter, in forty (40) consecutive quarterly installments on each subsequent Rent Payment Date throughout the Basic Term applicable to such Aircraft, each such installment to be in an amount equal
to the sum of: (A) $120,000 for such Aircraft for such Rent Payment Date plus (B) an amount equal to the rent payable for such Aircraft for such Rent Payment Date under the Finance Lease. 
  
 (b) Basic Rent during the Renewal Term. The Basic Rent for each Aircraft with respect to the Renewal Term, if any,
shall be payable in arrears, in twenty-four (24) consecutive quarterly installments on each applicable Rent Payment Date throughout the Renewal Term applicable to such Aircraft, each such installment to be in an amount equal to the greater of (i)
$156,000 and (ii) the Fair Market Rental Value for such Aircraft. 

 EXHIBIT E 
 to Lease Agreement 
  
 LESSOR’S COST, TERM, SECURITY DEPOSIT, DAILY RENT 
  
 Lessor’s Cost: $23,500,000 per Aircraft. 
  
 Basic
Term: The period from August 21, 2001 through August 20, 2011. 
  
 Renewal Term: The period from August 21, 2011 through August 20, 2017. 
  
 Renewal Term Termination Date: August 20, 2014 
  
 Security Deposit: means the Letter of Credit having a stated amount of not less than three million Dollars ($3,000,000) or any cash deposited in lieu thereof or held by Lessor as the result of any drawing on the
Letter of Credit. 
  
 Daily Rent: The daily rent payable by the
Lessee for an Aircraft pursuant to Section 5(d) shall be $1,710 per day. 

 LEASE SUPPLEMENT NO. 1 
  
 LEASE SUPPLEMENT NO. 1, dated August 21, 2001, between WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its
individual capacity but solely as Owner Trustee under a Trust Agreement dated as of August 21, 2001 (such Owner Trustee, in its capacity as such Owner Trustee, being herein called “Lessor”), and ABX AIR, INC. (“Lessee”).

  
 The Lessor and the Lessee have heretofore entered into that
certain Lease Agreement dated as of August 21, 2001, relating to three Boeing 767-200 aircraft (herein called the “Lease Agreement” and the defined terns therein being hereinafter used with the same meanings). The Lease Agreement provides
for the execution and delivery of Lease Supplements for the purpose of leasing the Aircraft under the Lease Agreement as and when delivered by the Lessor to the Lessee in accordance with the terms thereof. 
  
 The Lease Agreement relates to the aircraft and engines described in Schedule
I hereto, and a counterpart of this Lease Supplement is attached thereto and made a part thereof and the Lease, together with this attachment, is being filed for recordation on the date hereof with the Federal Aviation Administration as one
document. 
  
 NOW, THEREFORE, in consideration of the premises and
other good and sufficient consideration, Lessor and Lessee hereby agree as follows: 
  
 1. The Lessor hereby delivers and leases to the Lessee under the Lease Agreement, and the Lessee hereby accepts and leases from the Lessor under the Lease Agreement, the aircraft described in Schedule I hereto (the
“Delivered Aircraft”). 
  
 2. The Delivery Date of the
Delivered Aircraft is the date of this Lease Supplement set forth in the opening paragraph hereof. 
  
 3. The Basic Term for the Delivered Aircraft shall commence on the Delivery Date and continue through the date specified in Exhibit E to the Lease unless
terminated earlier as provided in the Lease. 
  
 4. “Rent
Payment Date” means, with respect to the Delivered Aircraft, November 21, 2001, and each February 21, May 21, August 21, and November 21 thereafter occurring during the Basic Term, and if applicable, the Renewal Term for such Aircraft.

  
 5. The Lessee hereby confirms its agreement to pay to the
Lessor Basic Rent for the Aircraft in accordance with the Lease Agreement, as supplemented by this Lease Supplement. 
  
 6. The Lessee hereby confirms to the Lessor that the Lessee has accepted the Delivered Aircraft for all purposes hereof and of the Lease Agreement as
being airworthy, in accordance with specifications, in good working order and repair and without defect or inherent vice in title, condition, design, operation or fitness for use, and free and clear of all Liens except Lessor Liens; provided,
however, that nothing contained herein or in the Lease Agreement shall in any way diminish or otherwise affect any tight the Lessee or the Lessor may have with respect 

 to the Aircraft against the Manufacturer, or any other Supplier or any subcontractor or supplier of the Manufacturer, or
any other Supplier under any purchase agreement or otherwise. 
  
 7. All of the terms and provisions of the Lease Agreement are hereby incorporated by reference in this Lease Supplement to the same extent as if fully set forth herein. 
  
 8. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and
delivered shall, subject to the immediately succeeding sentence, be an original, but all such counterparts shall together constitute but one and the same instrument. To the extent, if any, that this Lease Supplement constitutes Chattel Paper (as the
term is defined in the Uniform Commercial Code as in effect in any applicable jurisdiction), no security interest in this Lease Supplement may be created through the transfer or possession of any counterpart other than the original counterpart
containing the receipt therefor executed by the Finance Lessor on the signature page thereof. 
  
 9. THIS LEASE SUPPLEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

 IN WITNESS WHEREOF, the Lessor and the Lessee have caused this Lease Supplement to be duly executed as of
the day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity but solely as Owner Trustee, as Lessor
		
	 By:
	 	  

	 	 	 Name: C. Scott Nielsen

	 	 	 Title: Vice President

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 IN WITNESS WHEREOF, the Lessor and the Lessee have caused this Lease Supplement to be duly executed as of
the day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity but solely as Owner Trustee, as Lessor
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 Receipt of this original counterpart of the foregoing Lease Supplement No. 1 is hereby acknowledged on
this              day of             ,
            . 
  

	MITSUI & CO., LTD.
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 SCHEDULE I 
 TO LEASE SUPPLEMENT NO. 1 
  
 DESCRIPTION OF AIRFRAME AND ENGINES 
  
 AIRFRAME

  

	 Manufacturer

	 	 FAA Registration No.

	 	 Manufacturer’s Model

	 	 Manufacturer Serial No.

	 The Boeing Company
	 	N784AX	 	767-200	 	23017

  
 ENGINES 
  

	 Manufacturer

	 	 Manufacturer’s Model

	 	 Manufacturer Serial No.

	 General Electric Company
	 	CF6-80A	 	580338

  
 Each Engine is of 750
or more “rated take-off horsepower” or the equivalent of such horsepower. 

 SCHEDULE II 
 TO LEASE SUPPLEMENT NO. 1 
  
 Stipulated Loss Value Schedule4 
  

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

	 11-21-2001
	  	$23,467,917.31
	 02-21-2002
	  	$23,425,766.30
	 02-21-2002
	  	$23,373,343.76
	 08-21-2002
	  	$23,310,442.45
	 11-21-2002
	  	$23,559,653.11
	 02-21-2003
	  	$23,797,957.89
	 05-21-2003
	  	$24,025,136.82
	 08-21-2003
	  	$24,240,965.50
	 11-21-2003
	  	$24,223,864.94
	 02-21-2004
	  	$24,194,951.77
	 05-21-2004
	  	$24,153,987.83
	 08-21-2004
	  	$24,100,730.19
	 11-21-2004
	  	$23,876,823.95
	 02-21-2005
	  	$23,640,123.47
	 05-21-2005
	  	$23,390,370.91
	 08-21-2005
	  	$23,127,303.30
	 11-21-2005
	  	$22,737,718.55
	 02-21-2006
	  	$22,334,276.85
	 05-21-2006
	  	$21,916,699.09
	 08-21-2006
	  	$21,484,700.57
	 11-21-2006
	  	$21,037,990.87
	 02-21-2007
	  	$20,576,273.78
	 05-21-2007
	  	$20,099,247.12
	 08-21-2007
	  	$19,606,602.69
	 11-21-2007
	  	$19,098,026.11
	 02-21-2008
	  	$18,573,196.68
	 05-21-2008
	  	$18,031,787.30
	 08-21-2008
	  	$17,473,464.31
	 11-21-2008
	  	$16,756,720.25
	 02-21-2009
	  	$16,022,375.09
	 05-21-2009
	  	$15,270,074.70
	 08-21-2009
	  	$14,499.457.89
	 11-21-2009
	  	$13,568,989.10
	 02-21-2010
	  	$12,619,459.64
	 05-21-2010
	  	$11,650,486.15
	 08-21-2010
	  	$10,661,667.62

 4 Stipulated Loss Values are due in addition to any advance or arrears rent due on the same date. 

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

	 11-21-2010
	  	$9,652,635.20
	 02-21-2011
	  	$8,622,952.05
	 05-21-2011
	  	$7,572,213.20
	 08-21-2011
	  	$6,499,995.33

  

 4 

 LEASE SUPPLEMENT NO. 2 
  
 LEASE SUPPLEMENT NO. 2, dated August 21, 2001, between WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its
individual capacity but solely as Owner Trustee under a Trust Agreement dated as of August 21, 2001 (such Owner Trustee, in its capacity as such Owner Trustee, being herein called “Lessor”), and ABX AIR, INC. (“Lessee”).

  
 The Lessor and the Lessee have heretofore entered into that
certain Lease Agreement dated as of August 21, 2001, relating to three Boeing 767-200 aircraft (herein called the “Lease Agreement” and the defined terms therein being hereinafter used with the same meanings). The Lease Agreement provides
for the execution and delivery of Lease Supplements for the purpose of leasing the Aircraft under the Lease Agreement as and when delivered by the Lessor to the Lessee in accordance with the terms thereof. 
  
 The Lease Agreement relates to the aircraft and engines described in Schedule
I hereto, and a counterpart of this Lease Supplement is attached thereto and made a part thereof and the Lease, together with this attachment, is being filed for recordation on the date hereof with the Federal Aviation Administration as one
document. 
  
 NOW, THEREFORE, in consideration of the premises and
other good and sufficient consideration, Lessor and Lessee hereby agree as follows: 
  
 1. The Lessor hereby delivers and leases to the Lessee under the Lease Agreement, and the Lessee hereby accepts and leases from the Lessor under the Lease Agreement, the aircraft described in Schedule I hereto (the
“Delivered Aircraft”). 
  
 2. The Delivery Date of the
Delivered Aircraft is the date of this Lease Supplement set forth in the opening paragraph hereof. 
  
 3. The Basic Term for the Delivered Aircraft shall commence on the Delivery Date and continue through the date specified in Exhibit E to the Lease unless
terminated earlier as provided in the Lease. 
  
 4. “Rent
Payment Date” means, with respect to the Delivered Aircraft, November 21, 2001, and each February 21, May 21, August 21, and November 21 thereafter occurring during the Basic Term, and if applicable, the Renewal Term for such Aircraft.

  
 5. The Lessee hereby confirms its agreement to pay to the
Lessor Basic Rent for the Aircraft in accordance with the Lease Agreement, as supplemented by this Lease Supplement. 
  
 6. The Lessee hereby confirms to the Lessor that the Lessee has accepted the Delivered Aircraft for all purposes hereof and of the Lease Agreement as
being airworthy, in accordance with specifications, in good working order and repair and without defect or inherent vice in title, condition, design, operation or fitness for use, and free and clear of all Liens except Lessor Liens; provided,
however, that nothing contained herein or in the Lease Agreement shall in any way diminish or otherwise affect any right the Lessee or the Lessor may have with respect 

 to the Aircraft against the Manufacturer, or any other Supplier or any subcontractor or supplier of the Manufacturer, or
any other Supplier under any purchase agreement or otherwise. 
  
 7. All of the terms and provisions of the Lease Agreement are hereby incorporated by reference in this Lease Supplement to the same extent as if fully set forth herein. 
  
 8. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and
delivered shall, subject to the immediately succeeding sentence, be an original, but all such counterparts shall together constitute but one and the same instrument. To the extent, if any, that this Lease Supplement constitutes Chattel Paper (as the
term is defined in the Uniform Commercial Code as in effect in any applicable jurisdiction), no security interest in this Lease Supplement may be created through the transfer or possession of any counterpart other than the original counterpart
containing the receipt therefor executed by the Finance Lessor on the signature page thereof. 
  
 9. THIS LEASE SUPPLEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

 IN WITNESS WHEREOF, the Lessor and the Lessee have caused this Lease Supplement to be duly executed as of
the day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity but solely as Owner Trustee, as Lessor
		
	 By:
	 	  

	 	 	 Name: C. Scott Nielsen

	 	 	 Title: Vice President

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 IN WITNESS WHEREOF, the Lessor and the Lessee have caused this Lease Supplement to be duly executed as of
the day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity but solely as Owner Trustee, as Lessor
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 Receipt of this original counterpart of the foregoing Lease Supplement No. 2 is hereby acknowledged on
this              day of
                            ,
            . 
  

	MITSUI & CO., LTD.
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 SCHEDULE I 
 TO LEASE SUPPLEMENT NO. 2 
  
 DESCRIPTION OF AIRFRAME AND ENGINES 
  
 AIRFRAME

  

	 Manufacturer

	 	 FAA
 Registration No.

	 	 Manufacturer’s Model

	 	 Manufacturer
 Serial No.

	 The Boeing Company
	 	N785AX	 	767-200	 	23018

  
 ENGINES 
  

	 Manufacturer

	 	 Manufacturer’s Model

	 	 Manufacturer Serial No.

	 General Electric Company
	 	CF6-80A	 	580239
	 General Electric Company
	 	CF6-80A	 	580153

  
 Each Engine is of 750
or more “rated take-off horsepower” or the equivalent of such horsepower. 

 SCHEDULE II 
 TO LEASE SUPPLEMENT NO. 2 
  
 Stipulated Loss Value Schedule5 
  

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

	 11-21-2001
	  	$23,467,917.31
	 02-21-2002
	  	$23,425,766.30
	 02-21-2002
	  	$23,373,343.76
	 08-21-2002
	  	$23,310,442.45
	 11-21-2002
	  	$23,559,653.11
	 02-21-2003
	  	$23,797,957.89
	 05-21-2003
	  	$24,025,136.82
	 08-21-2003
	  	$24,240,965.50
	 11-21-2003
	  	$24,223,864.94
	 02-21-2004
	  	$24,194,951.77
	 05-21-2004
	  	$24,153,987.83
	 08-21-2004
	  	$24,100,730.19
	 11-21-2004
	  	$23,876,823.95
	 02-21-2005
	  	$23,640,123.47
	 05-21-2005
	  	$23,390,370.91
	 08-21-2005
	  	$23,127,303.30
	 11-21-2005
	  	$22,737,718.55
	 02-21-2006
	  	$22.334,276.85
	 05-21-2006
	  	$21,916,699.09
	 08-21-2006
	  	$21,484,700.57
	 11-21-2006
	  	$21,037,990.87
	 02-21-2007
	  	$20,576,273.78
	 05-21-2007
	  	$20,099,247.12
	 08-21-2007
	  	$19,606,602.69
	 11-21-2007
	  	$19,098,026.11
	 02-21-2008
	  	$18,573,196.68
	 05-21-2008
	  	$18,031,787.30
	 08-21-2008
	  	$17,473,464.31
	 11-21-2008
	  	$16,756,720.25
	 02-21-2009
	  	$16,022,375.09
	 05-21-2009
	  	$15,270,074.70
	 08-21-2009
	  	$14,499,457.89
	 11-21-2009
	  	$13,568,989.10
	 02-21-2010
	  	$12,619,459.64

 5 Stipulated Loss Values are due in addition to any advance or arrears rent due on the same date. 

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

	 05-21-2010
	  	$11,650,486.15
	 08-21-2010
	  	$10,661,667.62
	 11-21-2010
	  	$9,652,635.20
	 02-21-2011
	  	$8,622,952.05
	 05-21-2011
	  	$7,572,213.20
	 08-21-2011
	  	$6,499,995.33

 LEASE SUPPLEMENT NO. 3 
  
 LEASE SUPPLEMENT NO. 3, dated August 21, 2001, between WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its
individual capacity but solely as Owner Trustee under a Trust Agreement dated as of August 21, 2001 (such Owner Trustee, in its capacity as such Owner Trustee, being herein called “Lessor”), and ABX AIR, INC. (“Lessee”).

  
 The Lessor and the Lessee have heretofore entered into that
certain Lease Agreement dated as of August 21, 2001, relating to three Boeing 767-200 aircraft (herein called the “Lease Agreement” and the defined terns therein being hereinafter used with the same meanings). The Lease Agreement provides
for the execution and delivery of Lease Supplements for the purpose of leasing the Aircraft under the Lease Agreement as and when delivered by the Lessor to the Lessee in accordance with the terns thereof. 
  
 The Lease Agreement relates to the aircraft and engines described in Schedule
I hereto, and a counterpart of this Lease Supplement is attached thereto and made a part thereof and the Lease, together with this attachment, is being filed for recordation on the date hereof with the Federal Aviation Administration as one
document. 
  
 NOW, THEREFORE, in consideration of the premises and
other good and sufficient consideration, Lessor and Lessee hereby agree as follows: 
  
 1. The Lessor hereby delivers and leases to the Lessee under the Lease Agreement, and the Lessee hereby accepts and leases from the Lessor under the Lease Agreement, the aircraft described in Schedule I hereto (the
“Delivered Aircraft”). 
  
 2. The Delivery Date of the
Delivered Aircraft is the date of this Lease Supplement set forth in the opening paragraph hereof. 
  
 3. The Basic Term for the Delivered Aircraft shall commence on the Delivery Date and continue through the date specified in Exhibit E to the Lease unless
terminated earlier as provided in the Lease. 
  
 4. “Rent
Payment Date” means. with respect to the Delivered Aircraft, November 21, 2001, and each February 21, May 21, August 21, and November 21 thereafter occurring during the Basic Term, and if applicable, the Renewal Term for such Aircraft.

  
 5. The Lessee hereby confirms its agreement to pay to the
Lessor Basic Rent for the Aircraft in accordance with the Lease Agreement, as supplemented by this Lease Supplement. 
  
 6. The Lessee hereby confirms to the Lessor that the Lessee has accepted the Delivered Aircraft for all purposes hereof and of the Lease Agreement as
being airworthy, in accordance with specifications, in good working order and repair and without defect or inherent vice in title, condition, design, operation or fitness for use, and free and clear of all Liens except Lessor Liens; provided,
however, that nothing contained herein or in the Lease Agreement shall in any way diminish or otherwise affect any right the Lessee or the Lessor may have with respect 

 to the Aircraft against the Manufacturer, or any other Supplier or any subcontractor or supplier of the Manufacturer, or
any other Supplier under any purchase agreement or otherwise. 
  
 7. All of the terms and provisions of the Lease Agreement are hereby incorporated by reference in this Lease Supplement to the same extent as if fully set forth herein. 
  
 8. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and
delivered shall, subject to the immediately succeeding sentence, be an original, but all such counterparts shall together constitute but one and the same instrument. To the extent, if any, that this Lease Supplement constitutes Chattel Paper (as the
term is defined in the Uniform Commercial Code as in effect in any applicable jurisdiction), no security interest in this Lease Supplement may be created through the transfer or possession of any counterpart other than the original counterpart
containing the receipt therefor executed by the Finance Lessor on the signature page thereof. 
  
 9. THIS LEASE SUPPLEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

 IN WITNESS WHEREOF, the Lessor and the Lessee have caused this Lease Supplement to be duly executed as of
the day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity but solely as Owner Trustee, as Lessor
		
	 By:
	 	  

	 	 	 Name: C. Scott Nielsen

	 	 	 Title: Vice President

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 IN WITNESS WHEREOF, the Lessor and the Lessee have caused this Lease Supplement to be duly executed as of
the day and year first above written. 
  

	WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual
capacity but solely as Owner Trustee, as Lessor
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 ABX AIR, INC., as Lessee

		
	 By:
	 	  

	 	 	 Name: Joe Hete

	 	 	 Title: President

 Receipt of this original counterpart of the foregoing Lease Supplement No. 3 is hereby acknowledged on
this              day of
                            ,
            . 
  

	MITSUI & CO., LTD.
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 SCHEDULE I 
 TO LEASE SUPPLEMENT NO. 3 
  
 DESCRIPTION OF AIRFRAME AND ENGINES 
  
 AIRFRAME

  

	 Manufacturer

	 	 FAA
 Registration No.

	 	 Manufacturer’s Model

	 	 Manufacturer
 Serial No.

	 The Boeing Company
	 	N786AX	 	767-200	 	23019

  
 ENGINES 
  

	 Manufacturer

	 	 Manufacturer’s Model

	 	 Manufacturer Serial No.

	 General Electric Company
	 	CF6-80A	 	580166
	 General Electric Company
	 	CF6-80A	 	580168

  
 Each Engine is of 750
or more “rated take-off horsepower” or the equivalent of such horsepower. 

 SCHEDULE II 
 TO LEASE SUPPLEMENT NO. 3 
  
 Stipulated Loss Value Schedule6 
  

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

	 11-21-2001
	  	$23,467,917.31
	 02-21-2002
	  	$23,425,766.30
	 02-21-2002
	  	$23,373,343.76
	 08-21-2002
	  	$23,310,442.45
	 11-21-2002
	  	$23,559,653.11
	 02-21-2003
	  	$23,797,957.89
	 05-21-2003
	  	$24,025,136.82
	 08-21-2003
	  	$24,240,965.50
	 11-21-2003
	  	$24,223,864.94
	 02-21-2004
	  	$24,194,951.77
	 05-21-2004
	  	$24,153,987.83
	 08-21-2004
	  	$24,100,730.19
	 11-21-2004
	  	$23,876,823.95
	 02-21-2005
	  	$23,640,123.47
	 05-21-2005
	  	$23,390,370.91
	 08-21-2005
	  	$23,127,303.30
	 11-21-2005
	  	$22,737,718.55
	 02-21-2006
	  	$22,334,276.85
	 05-21-2006
	  	$21,916,699.09
	 08-21-2006
	  	$21,484,700.57
	 11-21-2006
	  	$21,037,990.87
	 02-21-2007
	  	$20,576,273.78
	 05-21-2007
	  	$20,099,247.12
	 08-21-2007
	  	$19,606,602.69
	 11-21-2007
	  	$19,098,026.11
	 02-21-2008
	  	$18,573,196.68
	 05-21-2008
	  	$18,031,787.30
	 08-21-2008
	  	$17,473,464.31
	 11-21-2008
	  	$16,756,720.25
	 02-21-2009
	  	$16,022,375.09
	 05-21-2009
	  	$15,270,074.70
	 08-21-2009
	  	$14,499.457.89
	 11-21-2009
	  	$13,568,989.10
	 02-21-2010
	  	$12,619,459.64
	 05-21-2010
	  	$11,650,486.15

 6 Stipulated Loss Values are due in addition to any advance or arrears rent due on the same date. 

	 Stipulated Loss
 Value Date

	  	 Stipulated
 Loss Value

	 08-21-2010
	  	$10,661,667.62
	 11-21-2010
	  	$9,652,635.20
	 02-21-2011
	  	$8,622,952.05
	 05-21-2011
	  	$7,572,213.20
	 08-21-2011
	  	$6,499,995.33

  

 4

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